California‘s Cap-and-Trade Extension Stalls Amidst Intense Lobbying Effort
Negotiations surrounding the reauthorization of California’s cap-and-trade program faced a significant challenge this week as a broad coalition of opponents launched a last-minute lobbying push to delay a deal until 2026. Lawmakers were met with appeals from industry groups, business advocates, and even traditionally Democratic-aligned trade unions as they entered the Capitol on Monday, September 9, 2025.
The opposition argues that a rushed reauthorization would impose undue financial burdens on industries like cement production, oil and gas, and manufacturing, potentially driving businesses out of California and leading to job losses. They contend that increased costs would inevitably be passed on to consumers, raising prices across the board.
The State Building and Construction Trades Council of California circulated a notice to legislators stating, “No deal is better than a bad deal,” and advocating for a pause in negotiations until the Legislature reconvenes in 2026. The union specifically warned of “massive industrial job losses” and ”skyrocketing fuel and retail costs” resulting from the proposed legislation. They expressed disappointment that the legislature hadn’t collaborated with the Building Trades and the energy industry to create an affordable extension of the program.
The California Chamber of Commerce echoed these concerns, with president and CEO Jennifer Barrera stating the shortened timeline was insufficient to produce “robust and responsible” legislation.She noted that promises regarding California’s affordability had not been met.
While environmental groups like the Environmental Defense Fund generally support reauthorizing cap-and-trade, some have expressed frustration with the lack of clarity in the negotiation process. Environmental justice advocates, though, believe the surge in lobbying efforts signals that progress was being made at the negotiating table. Katie Valenzuela, a lobbyist for these groups, suggested the calls for more public process were disingenuous given the opponents’ established access to lawmakers.
despite the opposition, Senator Monique Limón (D-Santa Barbara), the incoming Senate president, remains optimistic. She stated that all parties remain at the table and are continuing to work towards a negotiated proposal, leaving the possibility of a deal alive.
This article is based on reporting originally published by CalMatters on September 9, 2025, and is republished under a Creative Commons Attribution-NonCommercial-NoDerivatives licence.
