California modified its cap-and-invest program to provide over $3 billion in free pollution allowances to companies. This adjustment lowers expenses for in-state refineries and offers incentives for cleaner technology projects.
The cap-and-invest program requires companies to purchase permits for greenhouse gas emissions while the total permit quantity decreases over time. California Governor Gavin Newsom previously extended the state's cap-and-invest program.
Bahram Fazeli, Policy Director at Communities for a Better Environment, said "There is no reason to think that giving them more free allowances will actually help motivate them to lower gas prices more." Elizabeth Yeampierre, Executive Director of UpRose, said "In a community like ours, where we are looking for green re-industrialization that generates good-paying jobs, these changes will not help with affordability." She added "We have an alternative to fossil fuels that is not just aspirational, but it is operational and it is going to make it possible for us to be able to address climate change while also incentivizing the local economy."
Energy prices increased nationally during a period of trade disruptions related to international conflict. Anna Johnson, Senior Policy Manager at the American Council for an Energy-Efficient Economy, estimated the policy changes could increase household electricity costs by $592 million. She stated "Even though you might see bill savings initially, that is going to come at the cost of locked-in, higher energy costs in the future, as the grid has to procure more energy that would otherwise be saved."
A December Yale University and George Mason University report indicates that 65% of registered voters believe climate change is increasing the cost of living. An April Gallup poll found that 44% of U.S. adults report worrying "a great deal" about global warming. Energy Information Administration data shows that eight of the ten states with the highest utility-scale renewable growth through March voted for Donald Trump in 2024. Indiana recorded the highest utility-scale renewable capacity growth in that period, followed by Kentucky and Utah. Texas exceeded California in utility-scale solar capacity in March and leads the U.S. in wind energy generation.