SACRAMENTO — Today, Governor Gavin Newsom unveiled his May budget revision, which outlines his plans to address a historic deficit estimated at $12 billion.
In response, Barry Vesser, Chief Operating Officer for The Climate Center, said:
“California is in a budget crisis. Making Polluters Pay is the solution. The state cannot afford to continue giving Big Oil special treatment while working Californians struggle to make ends meet. If Governor Newsom and state legislators are serious about closing the budget deficit and addressing affordability, they need to get behind the Polluters Pay Climate Superfund Act and Cap and Trade reform.
“Passing the Make Polluters Pay Climate Superfund Act — SB 684 (Menjivar) and AB 1243 (Addis) — would shift the burden of paying for climate disasters like the LA fires from taxpayers to wealthy oil and gas corporations. It will generate hundreds of billions of dollars to address California’s budget woes and create hundreds of thousands of good jobs with labor standards. Creating jobs, saving taxpayers money, and investing in California’s future should be a no-brainer.
“Similarly, this year, California has the opportunity to close billion-dollar loopholes for Big Oil in the state’s Cap and Trade program. In 2024 alone, the free pollution credits given to oil and gas corporations totaled $890 million, robbing the state of funds that could have been invested in climate and affordability solutions.
“The climate crisis is driving the affordability crisis and straining California’s budget to the brink. Climate action is how we address affordability, create jobs, and save taxpayers money — and we must start by Making Polluters Pay.”
In addition to eliminating free allowances for oil and gas corporations, introducing an Emissions Containment Reserve (ECR) in the Cap and Trade program would help generate revenue for the Greenhouse Gas Reduction Fund (GGRF). Recent analysis shows that the lack of an ECR cost California approximately $1.5 billion in 2023-2024 with repercussions for affordability. For further explanation of how Cap and Trade reform can reduce pollution, generate revenue, and address affordability concerns, see The Climate Center’s recent policy brief on Cap and Trade.
To learn more about how the Polluters Pay Climate Superfund Act will help address California’s budget deficit, join a webinar hosted by The Climate Center on May 22. Speakers include Assemblymember Dawn Addis, author of AB 1243, as well as climate and economic experts.
ENDS
Contact:
Ryan Schleeter, Communications Director, The Climate Center: ryan@theclimatecenter.org, (415) 342-2386
About The Climate Center:
The Climate Center is a climate and energy policy nonprofit working to rapidly reduce climate pollution at scale, starting in California. We are a think-tank, do-tank working to turn bold ideas into action for a climate-safe future. Our flagship Climate-Safe California campaign is a unique and comprehensive effort to make California the first state in the nation to reach carbon negative. www.theclimatecenter.org
