California Democrats Urge Rethink of Climate Program Amid Gas Price Concerns

SACRAMENTO, Calif. — Fifteen Democratic Assembly members are urging the California Air Resources Board (CARB) to reconsider proposed updates to the state’s cap-and-invest program, citing concerns about potential increases in gas prices and strain on the energy market. The CARB is scheduled to vote on the proposal in May.

Lawmakers Express Concerns

The lawmakers sent a letter on Monday, March 9, 2026, urging the CARB to reconsider parts of the proposed update, specifically those impacting gas and electricity prices. They voiced concerns that the changes could disproportionately affect consumers least able to afford increased costs. The letter stated, “This crisis is not a fallacy nor a thinly veiled threat. It is a reality borne by consumers today, who are historically and empirically least able to afford it.”

The lawmakers further emphasized that California’s climate leadership should not come at the expense of destabilizing energy markets and burdening vulnerable populations. Notably, all 15 Democrats who signed the letter had previously voted in September to reauthorize the cap-and-invest program, directing the CARB to update its rules.

Industry Response and Potential Price Increases

The oil industry has warned that the proposed updates could add billions of dollars in costs and increase gas prices by more than $1 per gallon by 2030. Chevron specifically cited this potential price increase in a statement on Monday.

Nevada Governor Raises Concerns

Concerns extend beyond California’s borders. Nevada Governor Joe Lombardo sent a letter to Governor Gavin Newsom on Monday, highlighting potential impacts on the fuel supply for western states.

Understanding California’s Cap-and-Invest Program

The Cap-and-Invest Program, formerly known as Cap-and-Trade, is a key component of California’s strategy to reduce greenhouse gas emissions. It works by setting a limit, or “cap,” on greenhouse gas emissions and requiring major polluters to purchase allowances for emissions. The program is intended to incentivize emissions reductions and support the state’s climate goals.

The CARB is currently accepting public comments on the proposed regulatory changes until March 9, 2026. Public workshops were held to gather feedback on the proposed amendments.

Looking Ahead

The CARB’s vote in May will be a critical moment for California’s climate policy and energy future. The outcome will likely have significant implications for consumers, businesses, and the broader regional energy market. The debate highlights the challenges of balancing ambitious climate goals with economic realities and affordability concerns.