Q&A: Celebrating the Win for the Cap-and-Invest Program

Note: On Friday, September 19, 2025, California Governor Gavin Newsom signed the Cap-and-Invest program into law, reauthorizing the program until 2045.  

Earlier this month, CALSTART’s State Policy Director, Darryl Little Jr., led a delegation of clean transportation leaders urging lawmakers to reauthorize California’s Cap-and-Trade (now Cap-and-Invest) program at the state capitol.  

This policy aims to curb greenhouse gas emissions and generates proceeds for clean energy solutions, which fund the Greenhouse Gas Reduction Fund (GGRF). The GGRF provides for the zero-emission vehicle sector and key agency programs to continue sustaining themselves, which makes this timely funding even more critical as California continues to push for these programs despite federal setbacks.   

Darryl’s efforts to get lawmakers to reauthorize the program were a success, and the program was reauthorized as the Cap-and-Invest program. Though this funding was saved and can now continue to help with zero-emission vehicle projects, there is still much work to do to amplify, sustain, and grow the program and its initiatives.   

CALSTART recently caught up with Darryl to learn more about his efforts at the California State Capitol, the Cap-and-Invest program, and the next steps that individuals can take to ensure that this funding is used effectively until the program expires in 2045.    

Q: Why is California’s Cap-and-Trade/Cap-and-Invest program so critical at this moment in time?  

With federal actions removing key California regulations, it is important that we bolster our incentives to maintain our momentum in the transition to zero-emission vehicles. The Cap-and-Trade program serves as the key revenue generator for many of our state’s zero-emission vehicle and incentive programs.  

Q: How did your work at the California State Capitol with fellow leaders in clean transportation lead to the legislature creating and passing their Cap-and-Invest reauthorization bill? 

My work with fellow leaders helped illustrate to legislators the urgency in reauthorizing this year. Reauthorizing this essential program will foster market certainty around the program, bolstering its ability to raise revenue to fund key emission-reducing zero-emission vehicle and infrastructure programs. Without market certainty, this program could face severely low revenue-generating-years, which would hinder the state’s ability to fund crucial zero-emission vehicle and infrastructure programs.  

Q: How can this program help individuals and organizations located in California? 

By creating market certainty, leading to favorable revenue generation, this program can properly fund zero-emission vehicle and infrastructure programs that benefit both individuals and organizations in California. Examples of these programs include: 

Clean Mobility Options (CMO) 

• This program provides funding for clean, shared transportation options. Clean transportation means more than individual car ownership. CMO fills a critical part of the transition by empowering communities to invest in zero-emission carsharing, vanpools, electric and regular bicycle sharing, scooter sharing, and ride-hailing services.  

Clean Truck and Bus Voucher Incentive Project  

• This program helps bring clean trucks, transit buses, and school buses to market by providing point-of-sale vouchers to make these vehicles more affordable. 

Energy Infrastructure Incentives for Zero-Emission  

• This program provides incentives for medium- and heavy-duty zero-emission vehicle infrastructure equipment, which allows for commercial fleets to confidently electrify with the knowledge that they will have access to reliable zero-emission vehicle infrastructure. 

Communities in Charge  

• This program helps install Level 2 charges at apartments, schools, clinics, and small businesses — sites that serve the real-world needs of Californians. 

Clean Off-Road Equipment Voucher Incentive Project  

• This program offsets the cost of zero-emission off-road equipment with a point-of-sale discount. By transitioning this equipment to zero-emission technology, we are able to reduce harm to nearby disadvantaged communities. 

Q: Are there any possible changes to the current legislation that can help us use this funding more efficiently to support zero-emission vehicle and infrastructure programs? 

Yes. Instead of these programs receiving discretionary funding that requires yearly negotiation and fluctuating funding amounts, we should carve out at least $1 billion in ongoing funding to these essential programs.  

Q: What is your reaction to the reauthorization effort – and what lies ahead for your advocacy in 2026? 

I’m pleased to see that we are moving in the right direction, but more work remains to be done. Next year we must continue the restructuring of the GGRF by directing at least $1 billion of the revenue deposited into the fund from Cap-and-Invest to be distributed to clean transportation programs. To achieve that goal, CALSTART and its members plan to engage with state legislative leaders, Governor Newsom, and stakeholders to ensure we are keeping California’s zero-emission transition on track — despite federal actions that threaten to undermine this effort.  

About the Author:  

Darryl Little Jr. joined CALSTART as State Policy Director in May 2025, focusing on state-level policies and related initiatives that will advance the transition to zero-emission vehicles. As State Policy Director, Darryl oversees state government relations and regulatory advocacy in state legislatures, key agencies, and governors’ offices in California, Oregon, and Washington. He is a seasoned advocate with expertise in sustainable transportation and environmental policy.  

Prior to joining CALSTART, Darryl served as the California Legislative Advocate on the government affairs team at the Natural Resources Defense Council, where he helped advance the organization’s priorities in the California legislature in collaboration with program experts and coalition partners.  

He holds a B.A. in government and an MBA from California State University, Sacramento.