On May 28th, the California Air Resources Board (CARB) approved a change to the Cap-and-Invest Program, authorizing the Manufacturing Decarbonization Incentive (MDI) in a 10-3 vote. It’s framed as a way to help industry reduce emissions while protecting affordability and preventing companies from leaving California. In reality, it is a $4 billion giveaway to big oil. This blog covers: 1. What Is the MDI? 2. The Problem: Is the Cap Still a Cap? 3. Affordability and Climate Action Are Not Opposite 4. What We Lose: The Greenhouse Gas Reduction Fund (GGRF)
If the state Legislature or Governor Newsom does not act, the MDI will be implemented September 1, 2026.
TAKE ACTION: Call Governor Newsom at 916-445-2841 Tell CARB to reverse its decision creating Manufacturing Decarbonization Incentives (MDI). This will totally undermine the Cap-and-Invest program, and will do little to guarantee reductions in greenhouse gases. This decision will eliminate funding for transit, the Affordable Housing and Sustainable Communities Program, and the Safe and Affordable Drinking Water Fund.
By Rachel Carton, Legislative Team |