California is moving forward with plans to link its signature climate program, cap-and-invest, to that of Washington state, a major step officials say will cut more pollution and increase revenue for key state programs.<\/p>\n
Gov. Gavin Newsom announced the move at Climate Week in New York City, where he is meeting with international officials and positioning himself as a climate leader in opposition to President Trump. The governor\u2019s action will allow the California Air Resources Board, the state\u2019s top air agency, which also administers the cap-and-invest program, to begin the public process to link the two state\u2019s markets.<\/p>\n
\u201cBy joining forces with our partner in Washington State, we will build a stronger, more durable carbon market that will drive investment, cut pollution, and power the clean economy of the future,\u201d Newsom said in a statement. <\/p>\n
The changes are estimated to provide $10 billion in direct relief to electricity customers through bill credits and generate an estimated $8 billion for the state\u2019s climate fund, the Greenhouse Gas Reduction Fund, through 2030, according to the governor\u2019s office. <\/p>\n
California\u2019s cap-and-invest program was nation-leading when it launched in 2013. It forces major polluters such as power plants, oil refineries and industrial facilities to pay for each ton of planet-warming carbon they emit, and lets them buy or sell unused pollution credits, or allowances, at quarterly auctions. This allows companies to decide whether they would rather reduce their emissions or pay for allowances to cover them. Each year, fewer allowances are created, lowering the total annual climate pollution in the state.<\/p>\n
The program has generated more than $36 billion in revenue since its inception, and the money goes to support affordable housing, wildfire resilience, clean drinking water, the high-speed rail and other projects. <\/p>\n
Last year, state lawmakers voted to extend the program\u2019s life to 2045<\/a>, although some environmental groups were disappointed<\/a> with new manufacturing incentives introduced into the program that they say could allow for more pollution. <\/p>\n On Monday, Newsom published a set of formal findings<\/a> about Washington\u2019s carbon market, a step required by California law to advance the linkage process. The states aim to launch the first joint auctions in 2027.<\/p>\n The move broadens the existing California-Quebec carbon market, linked in 2014. It means industry can use allowances generated by Washington companies or sell to them, \u201cmaking it even more efficient and economical for entities to meet their obligations, and thus allowing each state to reduce emissions even more effectively,\u201d the governor\u2019s office said. <\/p>\n Some environmental groups applauded the news. The nonprofit Environmental Defense Fund pointed to modeling from the nonpartisan research firm Greenline Insights, which found that linking California and Washington will cut an additional 45 million metric tons<\/a> of climate pollution through 2045, equal to the annual emissions from 12 coal plants. <\/p>\n \u201cCalifornia and Washington are showing how states can join forces to drive investments in affordable clean energy and curb climate pollution,\u201d said EDF President Fred Krupp. \u201cBy scaling up proven and efficient pollution-cutting programs, states can deliver savings for families and businesses, while making a huge impact on our national emissions. More states should follow their lead.\u201d <\/p>\n Jim Stanley, a spokesman for the Western States Petroleum Assn., said the oil and gas trade group \u201csupports well-designed, market-based approaches to reducing emissions\u201d but urged the states to proceed with caution and to prioritize affordability.<\/p>\n \u201cA linkage across jurisdictions with different program designs, allowance inventories and market dynamics will have wide-ranging consequences for consumers and businesses,\u201d Stanley said. \u201cThis proposal must receive a thorough analysis of its impact on jobs, fuel costs and the economies of both states.\u201d<\/p>\n The action comes as California continues to battle environmental rollbacks at the national level, including the Trump administration\u2019s efforts to revoke the state\u2019s long-held authority to set stricter tailpipe emission standards than the federal government. <\/p>\n Last week, the U.S. Environmental Protection Agency said it is rolling back most Biden-era limits on greenhouse gas emissions from power plants<\/a> that burn coal or natural gas, and that it seeks to rescind regulations from the Obama administration and prevent future administrations from implementing new ones. <\/p>\n During a United Nations panel discussion Wednesday, Newsom extolled California\u2019s work to address climate change despite the Trump administration \u201cdoubling down\u201d on the use of fossil fuels.<\/p>\n \u201cThere\u2019s probably nothing more important on this topic that you\u2019ll hear today than the imperative of ending Trump\u2019s presidency as we know it, and that, my friends, will happen this November when the Democratic Party takes back the House of Representatives and we finally reinstill what our Founding Fathers lived and died for, and that\u2019s a system of checks and balances,\u201d Newsom said.<\/p>\n California\u2019s latest greenhouse gas emissions data, released this week<\/a>, show the state continued cutting greenhouse gas emissions in 2024, which were down 3.9% from the year prior.<\/p>\n