Senator Valladares & Problem Solvers Caucus Urge CARB to Prioritize Affordability in Cap-and-Invest Program

Bipartisan Letter Warns of Household Cost Burdens, Job Loss, and Regulatory Gaps Threatening California’s Economy

Senator Suzette Martinez Valladares (R-Santa Clarita) joined a bipartisan, bicameral group of California legislators in sending a formal letter to the California Air Resources Board (CARB), urging the agency to uphold its core statutory mandate: reducing greenhouse gas emissions in a way that is cost-effective, affordable, and protective of California ratepayers and workers.

The letter comes as CARB prepares to finalize its Cap-and-Invest rulemaking by May 28th. Senator Valladares and her colleagues make clear: affordability is not a secondary concern, it is a legislative mandate.

“The regulations being considered will directly impact the cost of gas, electricity, and everyday goods,” said Valladares. “Californians already pay the highest energy prices in the nation, and CARB must prioritize family energy costs as it finalizes this plan. We should be doing everything possible to bring prices down, not push them higher.”

Affordability Is the Mandate - Not a Constraint

The letter makes clear that Cap-and-Invest was never designed as a revenue-generation program. AB 32, SB 32, AB 398, and AB 1207 all direct CARB to prioritize cost-effective reductions, minimize leakage, and protect ratepayers, particularly low-income households. Recent commentary framing free allocation as “lost revenue” misreads the Legislature’s intent entirely. Value preserved through free allocation stays in California: in worker wages, lower utility bills, and ratepayer credits.

California Jobs Are Already Leaving

Two refinery closures, more than a dozen food processor exits, and reduced output in cement, glass, and other industries prove that leakage is not a theoretical risk – it is already happening. Overly burdensome regulations are driving out industry before clean alternatives are in place.

“We all want cleaner energy but we cannot decimate an industry before a viable alternative exists,” Sen Valladares continued. “I support California leading on climate, but not with mandates that shift costs onto families while jobs leave the state.”

What the Legislators Are Calling For

Senator Valladares and her colleagues are calling on CARB to finalize a program that fulfills its statutory climate mission without sacrificing affordability or California’s industrial base and to initiate a subsequent rulemaking in 2026 to address unresolved gaps in post-2030 allocation, household bill impacts, and leakage protections.