California Cap-and-Trade Becomes Cap-and-Invest

United States — California's cap and trade program, initially established by Arnold Schwarzenegger to reduce carbon emissions, has been revised and renamed 'cap-and-invest'. Governor Gavin Newsom sought to extend the program to 2045, but legislators insisted on changes that tightened emission allowances and increased their authority over spending the approximately $5 billion in annual revenues. The United States — California Legislative Analyst s Office noted that these funds are now akin to tax revenues and can be spent for any purpose. A significant portion of the funds, $1 billion annually, is guaranteed to the United States — California High-Speed Rail Authority's bullet train project, despite its minimal projected impact on emissions. Additionally, $1.25 billion is allocated to wildfire suppression at Gavin Newsom's behest, and another $1 billion is set aside for discretionary legislative spending. These diversions mean most of the program's money will have minimal impact on greenhouse gas emissions, while consumers continue to bear the cost through higher Gasoline prices, which include about 30 cents a gallon in cap-and-trade costs.