SBC weighs in on California’s policies and funding mechanisms that may impact how climate and natural resources programs are allocated to and within the Sierra. This week, we commented on the recently proposed changes from the California Air Resources Board (CARB) to the Cap and Invest program, California’s landmark climate policy that requires certain large companies to buy permits to emit greenhouse gases. 

The total number of permits allowed by Cap and Invest is supposed to go down over time, thereby reducing emissions. However, CARB’s proposal would release a large number of pollution permits (118 million tons worth) back into the market instead of eliminating them. Instead of reducing climate pollution, this would make it easier for companies to keep polluting longer to try to prevent refinery closures and avoid spikes in gas prices. 

Along with partners across the state, Sierra Business Council is concerned about this proposal not only because it weakens the significant progress made in climate action in California, but also because Cap and Invest generates billions of dollars for regional priorities like affordable housing, wildfire resilience, home weatherization, and sustainable transportation. The proposed changes could cut about $2 billion from that funding, meaning there would be dramatically less money for the very programs that are supposed to help our communities adapt to climate challenges and save money long-term.

The upshot? These proposed changes would undermine our region’s climate resilience by extending our reliance on fossil fuels and reducing funding for the solutions our communities need. 

Sierra Business Council is urging the state to stay on track toward a greener, more resilient economy, rather than backing off to chase uncertain short-term cost relief. On May 4, 2026, we submitted this letter to the California Air Resources Board to express our concerns with these proposed changes.

Questions? Email us at policy@sierrabusiness.org.