California Leaders Advocate for Infrastructure Investment Amid Cap-and-Trade Extension Debate

Sacramento, CA – Michael Quigley, Executive Director of the California Alliance for Jobs, recently joined a broad coalition of local government, business, transit, and labor leaders at a press conference to advocate for infrastructure-focused investments. The event highlighted the "ClimateSafe CA" initiative as the California legislature considers extending the state's landmark Cap-and-Trade program. The California Alliance for Jobs announced on social media, > "Today, our executive director Michael Quigley joined a coalition of local gov., business, transit and labor leaders at a press conference to promote @ClimateSafeCA – fighting for infrastructure-focused investments as the legislature extends the state Cap & Trade program."

The California Alliance for Jobs, representing over 2,000 heavy construction companies and 80,000 union construction workers, champions responsible investment in public infrastructure. Michael Quigley has led efforts to secure billions in funding for transportation, transit, water, and goods movement, including a historic $52 billion state transportation funding package in 2017. The organization emphasizes that infrastructure investments support a stronger economy and middle-class jobs.

The Climate Safe Infrastructure Coalition, a key proponent of these investments, urges lawmakers to prioritize physical and natural infrastructure projects that effectively reduce greenhouse gas emissions, enhance climate resilience, and create well-paying jobs. The coalition's priorities include continuous funding for clean transit infrastructure, local green transportation, wildfire resilience, high-density housing, and climate adaptation for sea-level rise.

California's Cap-and-Trade program, a cornerstone of its climate strategy since 2013, sets a statewide limit on greenhouse gas emissions and allows businesses to trade allowances. While currently set to expire in 2030, Governor Gavin Newsom has proposed extending the program through 2045, rebranding it as "Cap-and-Invest" to emphasize its investment benefits. This extension aims to provide regulatory certainty and align with California's goal of achieving net-zero emissions by 2045.

The reauthorization of the program, however, faces a contentious legislative debate, particularly regarding the allocation of its substantial revenues. Cap-and-Trade auctions have generated approximately $31 billion through 2023-24, with proposals to direct significant portions to areas like Cal Fire and the high-speed rail project. Critics, including some lawmakers and environmental justice groups, express concern that such allocations could divert funds from other crucial climate initiatives, such as electric vehicle transition and local pollution reduction in disadvantaged communities. The Legislative Analyst's Office projects that if allowance prices reach their ceiling, the program could add up to 74 cents per gallon to gasoline costs, impacting consumers, especially lower-income households.