What will Becerra and Hilton do on climate?
By Lynn La, CalMatters · Oct 23, 2026
California’s carbon market was supposed to help the state cut pollution and reach its ambitious zero-emissions climate goals. But 20 years after its creation, some environmental advocates argue recent changes to the program will greatly diminish its effectiveness, and the fallout could land at the feet of the next governor.
As Emma Foehringer Merchant explains for CalMatters, the landmark program aims to lower greenhouse gas emissions by enabling companies to buy and sell carbon pollution allowances at a marketplace managed by the state. It also provides billions of dollars in funding for climate projects.
But amid pressure from Gov. Gavin Newsom’s administration to keep oil refineries in California, state regulators in May approved changes to the program, providing major companies with as much as $4 billion in new free emission permits. The changes also halved annual auction revenue, generating about $2 billion less in funding for environmental programs.
Critics said the move was a giveaway to Big Oil, and that it would put California even more out of reach of hitting carbon neutrality by 2045. The candidates running to replace Newsom also have environmentalists doubting whether the state will continue to lead on climate.
Neither Democrat Xavier Becerra nor Republican Steve Hilton centered climate in their campaigns. In their one debate last month, both steered a question about climate change’s impacts toward affordability concerns, offering little detail on the climate policies they favor.
The Becerra campaign also did not respond to CalMatters’ multiple requests for comment. Meanwhile, Hilton called the cap-and-trade program “a disaster” and told CalMatters he would move to suspend the carbon market — something a governor does not have the power to do alone.
The uncertainty is leading experts to warn that California has little time left to act on climate change before its consequences come for us all.
- Danny Cullenward, an economist who focuses on energy policy: “There’s not many more governors left we can kick the can to before that bill comes due.”
We’re bringing our voter guide to life through VotingMatters events across California, in collaboration with on-the-ground partners: Local news organizations, colleges and nonprofits. Our next event is Saturday in San Jose at the Sobrato Center for Nonprofits, and Sunday in Santa Barbara at the Grace Fisher Foundation Inclusive Arts Clubhouse.
Other Stories You Should Know
CA counties leader under investigation
From CalMatters’ Kate Wolffe and Jeanne Kuang:
The CEO of California’s State Association of Counties, Graham Knaus, has been placed on administrative leave while attorneys investigate “various confidential personnel-related issues,” the nonprofit’s president Susan Ellenberg wrote in a letter obtained by CalMatters.
The association is a well-known presence in Sacramento, where it lobbies on behalf of the state’s 58 county governments.
It’s unclear when CSAC placed Knaus on leave but one board member reached for comment said he got the letter last week. Ellenberg, a Santa Clara County supervisor, confirmed the investigation but declined to comment further.
Knaus has been a vocal advocate for counties, occasionally calling out Newsom directly for not providing them enough financial support on state mandates. He declined to comment Thursday afternoon.
Knaus was paid more than $468,000 in the 2024 fiscal year, according to the organization’s latest available tax filing. He has worked at the association since 2015 and became chief executive in 2018.
Saving for a rainy day? ☔
When the economy is booming, should California stow away more money for lean times?
That’s the crux of Proposition 2, which would boost the cap on how much of the state’s general fund tax revenue lawmakers are allowed to save — raising it from the current 10% to 20%, writes CalMatters’ Yue Stella Yu.
Prop. 2 proponents say it’s a commonsense solution, one that has been long recommended by the nonpartisan Legislative Analyst’s Office. Newsom, Democratic lawmakers and a bipartisan coalition of groups including labor unions and chambers of commerce, support it.
But GOP lawmakers and critics argue that expanding the pot of savings would incentivize future governors and lawmakers to dip into the reserves rather than cut spending. Instead, they want excess money to go back to taxpayers.
And lastly: Silent generation vs. millennial for House seat
Congressional races featuring two Democratic candidates don’t affect the calculus of which party controls the U.S. House, but they have the potential to decide the future of the Democratic Party. For the district encompassing parts of Sacramento and Yolo counties, Rep. Doris Matsui and Sacramento councilmember Mai Vang are locked in an intergenerational matchup between a senior incumbent and a young, progressive challenger. Read more from CalMatters’ Maya C. Miller.
California Voices
CalMatters columnist Dan Walters: As affordability becomes the dominant public concern — and despite warnings from environmentalists — popular and political support for the state to reach zero emissions have waned.
CalMatters contributor Jim Newton: Latino voters will be a key voting bloc in the Los Angeles mayoral race, and a CalMatters analysis found that incumbent Mayor Karen Bass outperformed her opponent Nithya Raman in majority Latino precincts during the primary.
Other things worth your time:
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How Zuckerberg pushed Meta to shield him from CA’s proposed wealth tax // The New York Times (gift link)
As companies leave CA, is the state’s $4.25-trillion economy really in trouble? // Los Angeles Times (paywall)
Newsom’s dilemma: Join or spurn new federal school choice program // EdSource (free)
CA just showed how home batteries will radically remake the grid // Grist (free)
Police dispute ICE’s account of Woodland collision: ‘Inconsistent’ with video // The Sacramento Bee (paywall)
Oakland corruption trial: FBI agent describes texts, photos seized from defendants // KQED (free)
CA’s oceans have become shockingly warm. And strange things are happening // San Francisco Chronicle (gift link)
This story was originally published by CalMatters and is republished under its terms.