Cap-and-Invest: November 2025 Auction Update and 2026-27 Budget Context

Dec 9, 2025 - This was the first auction since the passage of Chapter  117 of 2025 (AB  1207, Irwin) and Chapter  121 of 2025 (SB  840, Lim ón), which extended and made various changes to the program. According to the information provided by CARB, the state expects to receive $844  million in revenue from the auction, which will be deposited into the Greenhouse Gas Reduction Fund (GGRF).
https://lao.ca.gov/Publications/Report/5096

Overview of New Updates to the Cap-and-Invest Program

Dec 9, 2025 - In September 2025, CARB issued a notice that it plans to begin updating the regulations governing the program to reflect the requirements of AB 1207, as well as make other modifications to the program.
https://lao.ca.gov/Publications/Report/5097

The 2025-26 California Spending Plan: Proposition 4

Oct 16, 2025 - The 2025-26 California Spending Plan: Proposition 4 $3,470 35% a $181 million of this amount was provided through Chapter 2 of 2025 (AB 100, Gabriel) and was available for administering departments to expend beginning in April 2025.
https://lao.ca.gov/Publications/Report/5076

The 2025-26 California Spending Plan: Natural Resources and Environmental Protection

Oct 16, 2025 - To achieve budget savings, the spending plan also reverts $32  million General Fund that was previously appropriated for the acquisition phase of a new CalFire training center, as highlighted earlier in Figure  4.
https://lao.ca.gov/Publications/Report/5080

The 2025-26 California Spending Plan: Other Provisions

Oct 16, 2025 - Chapter 5 of 2025 (AB 102, Gabriel) amended the budget to include Control Section 3.90, which established an expectation that the administration would meet and confer in good faith with all 21 of the state’s bargaining units before July 1, 2025 to achieve budgetary savings.
https://lao.ca.gov/Publications/Report/5081

The 2025-26 Budget: State Mandates—Regional Water Quality Control Boards

May 30, 2025 - This includes 32 pending test claims and 4 additional claims for which CSM has already identified state-reimbursable mandated activities but has not yet developed cost estimates. Each test claim submitted to CSM is different and has to be considered individually.
https://lao.ca.gov/Publications/Report/5054

The 2025-26 Budget: Cap-and-Trade Reauthorization and Greenhouse Gas Reduction Fund Proposals at May Revision

May 19, 2025 - The planned reductions affect multiyear spending plans included in prior budget agreements for activities such as the AB  617 community air protection program, support for local transit agencies, and various zero-emission vehicle programs.
https://lao.ca.gov/Publications/Report/5049

Assessing California’s Climate Policies—Cap-and-Trade Reauthorization

May 7, 2025 - Assembly Bill  32 gave CARB almost complete discretion over how to design the cap ‑and ‑trade program. Since the program ’s establishment, much of the Legislature ’s role has revolved around how to spend GGRF revenues, including establishing ongoing statutory allocations and selecting discretionary allocations on an annual basis.
https://lao.ca.gov/Publications/Report/5042

Assessing California’s Climate Policies—Cap-and-Trade Reauthorization [Publication Details]

May 7, 2025 - This report is intended to help inform legislative decision-making around reauthorization of the cap-and-trade program. It is submitted pursuant to Chapter 135 of 2017 (AB 398, Garcia), which requires our office to report annually on the economic impacts and benefits of the state’s greenhouse gas emissions reduction targets.
https://lao.ca.gov/Publications/Detail/5042

The 2025-26 Budget: State Mandate—Santa Ana Regional Water Quality Control Board

May 5, 2025 - This includes 32 pending test claims and 4 additional claims for which CSM has already identified state-reimbursable mandated activities but has not yet developed cost estimates. (These are in addition to the four mandates —including the Santa Ana regional board mandate —which CSM already identified and assigned cost estimates over the past year.)
https://lao.ca.gov/Publications/Report/5039