Assemblymember Erwin’s AB 1207 would reauthorize and rename California’s cap-and-trade program as “Cap and Invest” through 2045

Assemblymember Christy Erwin introduced AB 1207, a bill to reauthorize and update California’s cap‑and‑trade program through 2045 and to rename it the “Cap and Invest” program.

Erwin said AB 1207 "reauthorizes California's cap and trade program, one of the strongest, most cost‑effective emissions‑reduction programs in the world," and described changes intended to align the program with the state's net‑zero by 2045 goal and to move some climate rebate mechanics from natural‑gas billing toward electric billing.

The bill would: reauthorize the program through 2045; rename it Cap and Invest; redirect value formerly applied as a residential natural‑gas climate credit toward an increased electric climate credit (with a larger distribution during highest‑bill months); require CARB (the California Air Resources Board) to increase transparency and appear before the Legislature during regulatory updates; preserve a 6% limit on offset usage and place offsets under the program’s cap; and establish an annual legislative oversight hearing on how greenhouse‑gas reduction funds are spent.

Nut graf: Supporters—including the Environmental Defense Fund and Coalition for Clean Air—told the committee the bill balances continued emissions reductions, revenue for climate and community programs, and cost containment. Opponents, led by the California Chamber of Commerce and environmental…