SB 840, by lead authors Senators Monique Limón and Mike McGuire, addresses the state’s approach to reducing greenhouse gas emissions. This bill sets the groundwork for reforming and extending Cap and Trade, the market-based compliance mechanism that reduces emissions while generating funds to invest in climate solutions. Cap and Trade originally set declining annual aggregate emissions limits for greenhouse gas sources from January 1, 2021, to December 31, 2030.
Currently this is a place holder bill that would extend indefinitely (after 2030) the requirement for the Legislative Analyst’s Office to annually submit to the Legislature the report on the economic impacts and benefits of the state’s greenhouse gas emissions targets. It does not contain any other substantive content regarding program design. This will be worked out in the coming month.
SB 840 signifies California’s ongoing commitment to combating the climate crisis by extending the Cap and Trade program past 2030.
Bill author
