Assembly hearing hears concerns about cap-and-invest extension, $1.5 billion GGRF shift to Cal Fire and transit funding cuts

The Assembly Budget Subcommittee heard sharp questions and public opposition on the administration’s May Revision proposal to extend California’s cap-and-trade program (relabelled “cap and invest”) and to shift $1.5 billion in Greenhouse Gas Reduction Fund (GGRF) proceeds to Cal Fire in 2025–26, growing to $1.9 billion by 2029–30.

The proposal to extend cap-and-trade to 2045 and to relabel it “cap and invest” was presented by Andrew Arch with the Department of Finance. Arch told the subcommittee the May Revision “proposes a simple extension of the program to 02/1945 which aligns with California's carbon neutrality” goal. Assembly members and outside groups pressed the administration on how the extension and the proposed transfers would affect already-committed GGRF programs, continuous appropriations, and transit capital projects.

The subcommittee’s chair and several members said they…