California Overhauls Climate Program, Slashing Wildfire Prevention Funds

California air regulators have approved a major overhaul of the state’s cap-and-invest climate program, a move that will significantly reduce funding for wildfire prevention while sparking debate over emissions policies. The changes, adopted late Friday, include giving billions in free allowances to industries like oil refiners and manufacturers to reduce emissions, a shift environmentalists warn will weaken climate efforts. Meanwhile, the state’s wildfire mitigation budget could drop from over $600 million annually to just $150 million, as two key funding sources dry up. The cap-and-invest program, which forces major polluters to pay for emissions allowances, has been a cornerstone of California’s climate strategy since 2013. The latest revisions aim to balance economic concerns with environmental goals, but critics argue the changes undermine the program’s effectiveness. The California Air Resources Board (CARB) approved the updates in a 10-3 vote after months of debate involving industry groups, environmentalists, and lawmakers. The program now extends through 2045, with adjustments to how emissions allowances are allocated. Industry groups had warned that strict emissions caps could drive up energy costs and push businesses out of state, while environmentalists argued the new rules favor fossil fuel interests. The overhaul also accelerates the spending of a $1.5 billion climate bond approved by voters in 2024, with most of the wildfire prevention funds expected to be allocated within three years. Wildfire resiliency advocates warn the funding cuts will leave California more vulnerable to devastating fires, particularly as climate change intensifies wildfire risks. The changes come as state officials and local fire crews launch efforts to prevent future wildfires, including controversial methods like using animals and machines to create fire breaks in the Santa Monica Mountains.