Cleaner Transportation: CALSTART Urges California to Reauthorize Cap-and-Trade
On August, 14, 2025, CALSTART’s Darryl Little Jr., Elizabeth Szulc, along with CALSTART member companies, met with lawmakers in Sacramento to urge leaders to extend the Cap-and-Trade program and support robust funding to advance clean transportation.
California stands at a critical juncture: With federal support receding, state action is more important than ever to sustain clean transportation progress. CALSTART, along with our industry partners, is urging state leaders to extend the Cap-and-Trade program and to allocate remaining FY 2025–26 Greenhouse Gas Reduction Fund dollars to programs that accelerate zero-emission vehicle deployment, infrastructure, and mobility solutions.
The letter below reflects this shared commitment and can be used by stakeholders to engage policymakers. By acting now, California can maintain market stability, safeguard jobs, and ensure the benefits of clean transportation reach communities across the state.
August 19, 2025
RE: Request for Cap-and-Trade Reauthorization and Immediate GGRF Allocations
Dear Governor Newsom, President pro Tempore McGuire, Speaker Rivas, Chair Wiener, Chair Gabriel, Chair Richardson, Chair Bennett, Chair Limón, and Chair Irwin:
On behalf of CALSTART, a nonprofit advancing zero-emission transportation solutions across California and the U.S., we are writing to urge your support for two immediate actions to protect California’s transition to zero-emission vehicles:
- Reauthorize the Cap-and-Trade program this year.
- Allocate remaining FY 2025-26 funding from the Greenhouse Gas Reduction Fund (GGRF) to support California’s critically important zero-emission vehicle and infrastructure programs.
As the world’s fourth-largest economy, California must continue to lead by example. Cap-and-Trade is a cornerstone of the state’s climate strategy, and the GGRF directly supports investments that reduce greenhouse gas (GHG) emissions, deliver health and cost benefits, and sustain California’s global leadership in clean energy.
Reauthorization is vital to maintaining market stability and ensuring the continued success of the zero-emission vehicle (ZEV) industry. It is also critical in sustaining the broader ecosystem of clean energy and environmental justice programs that depend on GGRF investments and complement one another. Immediate allocations are especially urgent in the wake of federal actions that undermine California’s authority to regulate the transportation sector.
Funding must continue to support the full range of clean transportation solutions – including light-duty electric vehicles, medium- and heavy-duty trucks and buses, off-road equipment, community-based mobility options, charging and fueling infrastructure, and workforce development. Together, these investments have a proven track record of cutting emissions, creating jobs, improving public health, and ensuring equity by prioritizing disadvantaged communities. California has long set the pace for climate action and clean technology innovation. At a time when federal support is receding, reauthorizing Cap-and-Trade and swiftly allocating GGRF funds are essential to maintaining that leadership. These actions will provide the market certainty needed to attract private investment, accelerate ZEV deployment, and keep California on track to meet its climate goals – while driving economic growth, strengthening energy security, and advancing environmental equity.
We respectfully urge your support and immediate action before the Legislature adjourns.
Sincerely,
Head of Policy
CALSTART, Inc.