The Assembly Budget Subcommittee No. 4 on Climate Crisis, Resources, Energy, and Transportation convened on May 15, 2025, to discuss critical updates regarding California's cap and trade program and funding priorities for climate initiatives.

A key focus of the meeting was the governor's and legislative leaders' announcement to extend the cap and trade program beyond its 2030 expiration date. This extension aims to provide market certainty during challenging economic times. The proposed plan suggests extending the program to 2045, aligning with California's goal of achieving carbon neutrality by reducing greenhouse gas emissions to 85% below 1990 levels by 2045.

The extension includes updated guiding principles and rebrands the program as the "cap and invest" program, emphasizing the investment opportunities it creates through a market-based price on carbon emissions. However, the proposal does not outline a detailed spending plan for the Greenhouse Gas Reduction Fund (GGRF). Instead, it identifies two key priorities for the administration, with further discussions planned between the administration, the legislature, and stakeholders regarding shared priorities.

The meeting also highlighted the administration's commitment to continued funding for the high-speed rail project, proposing at least $1 billion annually. Additionally, there is a plan to shift $1.5 billion from the general fund to the GGRF to support fire prevention and resource management operations at Cal Fire, with funding expected to grow to $1.9 billion by 2030.

The discussions underscored the need for potential changes to continuous appropriations, which may be necessary if the administration's proposals move forward. The subcommittee plans to engage further with the legislature on these matters as they develop.

Overall, the meeting emphasized California's ongoing commitment to climate initiatives and the importance of securing funding to support these critical programs.