Overview

• Negotiators and Governor Gavin Newsom’s office reached a reported late compromise that clears a path to reauthorize the program before the Friday deadline.
• Final bill language was filed after the 72‑hour cutoff, leaving no room for amendments as the Legislature considers identical AB 1207 and SB 840.
• The agreement would extend Cap‑and‑Trade authorization from 2030 to 2045 under the reported terms.
• Allocation rules would shift to fixed continuous appropriations for housing and transportation, with California High‑Speed Rail prioritized if revenues fall short.
• The package includes a new $250 million continuous appropriation for AB 617 and would begin phasing down free allowances to oil and gas starting in 2030.