California advocates warn cap-and-invest changes could cut transit, housing funding

Transit riders, housing advocates and environmental groups rallied at the state Capitol on Monday, warning that changes to California’s Cap-and-Invest program could reduce funding for public transit, affordable housing and clean-water projects by nearly $2 billion a year.

The coalition, joined by several Democratic lawmakers, wants the Legislature and Gov. Gavin Newsom to pass Senate Bill 1216 before the Legislature begins its final recess Aug. 31. The bill would stop the state from issuing a planned incentive for refineries and other manufacturers until several reviews are completed. State agencies would have to find that the incentive is consistent with California’s emissions targets, would lower retail gasoline prices, and would leave enough money for designated public programs.