Gas Prices Weigh on California’s Plans for Cap-and-Trade Program

April 23, 2026, 9:00 AM UTC

Concerns about rising fuel prices are driving California regulators to scale back proposed rules for the state’s cap-and-trade greenhouse gas reduction program.

The plan is the latest by Democratic-led states to temper the ambitions of climate change programs at a time when increasing prices at the gas pump and higher electricity bills are fueling voters’ anxiety ahead of midterm elections later this year.

California’s program, renamed cap-and-invest last year, requires large polluters to buy credits for emissions and sets a statewide cap, which is set to decline over time, motivating companies to reduce emissions.

Proposed rules released April 14 by ...

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