In a recent meeting of Assembly Budget Subcommittee No. 4 on Climate Crisis, Resources, Energy, and Transportation, California lawmakers discussed critical proposals aimed at addressing the state's climate goals and resource management. The meeting, held on May 15, 2025, highlighted the urgency of extending the cap and trade program, which is set to expire in 2030.

The administration's proposal seeks to extend the cap and trade program until 2045, aligning with California's ambitious target of achieving carbon neutrality by reducing greenhouse gas emissions to 85% below 1990 levels by that same year. This extension is seen as vital for providing market certainty during challenging economic times. The program will be rebranded as the "cap and invest" program, emphasizing its dual focus on reducing emissions and encouraging investments in sustainable practices.

Key priorities outlined in the proposal include continued funding for the high-speed rail project, with an annual allocation of at least $1 billion, and a significant shift of $1.5 billion from the general fund to the greenhouse gas reduction fund. This funding is intended to support fire prevention and resource management operations at Cal Fire, with projections increasing to $1.9 billion by 2030.

While the proposal does not include a detailed spending plan for the Greenhouse Gas Reduction Fund, it identifies essential areas for discussion between the administration, the legislature, and stakeholders. The meeting underscored the need for collaboration to ensure that funding aligns with shared priorities, particularly in light of ongoing climate challenges.

In addition to the cap and trade discussions, the meeting addressed incremental adjustments to funding for various climate initiatives, including $10 million earmarked for the Salton Sea project. These adjustments reflect a commitment to accelerating climate action and resource management efforts across the state.

As California continues to navigate its climate crisis, the outcomes of this meeting will play a crucial role in shaping the state's environmental policies and funding strategies, directly impacting residents and communities statewide. The next steps will involve further discussions to refine these proposals and ensure effective implementation of climate initiatives.