California Air Resources Board

The California Air Resources Board (CARB) will focus this year on implementing major legislation and defending the agency from attacks by the Trump administration that have undermined the agency’s ability to cut harmful air pollution and fight climate change.

That was the message Executive Officer Dr. Steven Cliff delivered during the Feb. 26 board meeting and in a memo sent earlier to board members and Chair Lauren Sanchez on January 28.

In the memo, Cliff stated that “our mission has never been more urgent.”

Why it matters

Last year, multiple federal actions challenged California’s environmental policies and clean air efforts. Illegal and unconstitutional actions taken by the Trump administration directly target CARB’s authority to enforce some of its most significant regulatory programs for protecting public health. CARB’s response to those actions is crucial to maintain progress in its efforts on air pollution and climate change, Cliff said.

While the agency is fighting federal actions in court, it is also developing alternative programs. These efforts form the backbone of the agency’s five priorities for the coming year:

• Driving clean transportation forward
• Implementing major climate legislation
• Defending California’s authority and programs
• Advancing clean air for communities
• Improving organizational operations
• Driving clean transportation forward

With the federal government challenging CARB’s mobile source programs, the Drive Forward Initiative “represents the next phase of California’s clean transportation strategy,” Cliff said. The effort includes incentives, outreach, partnerships, and regulations.

In support of the effort, Governor Gavin Newsom’s proposed 2026-27 budget includes $200 million for a new light-duty passenger zero-emission vehicle incentive program.  Other actions include partnering with state agencies and industry to implement voluntary programs that link businesses with zero-emission vehicles and encourage the use of cleaner off-road vehicles.

Implementing major climate legislation

California’s Cap-and-Invest program plays a central role in the state’s climate strategy. Following passage of Assembly Bill 1207 and Senate Bill 840, which extended the program through 2045, CARB is updating the Cap-and-Invest regulation consistent with legislative direction. Staff will present a rulemaking package to the Board in May, with the proposed changes effective in September.

Cap-and-Invest has generated over $34 billion for the Greenhouse Gas Reduction Fund and returned over $15 billion in bill credits to utility customers.

California’s Cap-and-Invest program has generated more than $34 billion for programs such as the Southeast Connect transit service in San Diego.

Other efforts to implement legislation include a system for corporate greenhouse gas emission disclosures and assessing carbon capture, utilization and storage.

Defending California’s authority and programs

California is facing unprecedented legal challenges to its ability to safeguard public health and the environment, Cliff said in his memo. The attacks target core programs that cut air pollution and fight climate change.

CARB is working with the California Department of Justice to vigorously defend its programs and mandates in court. The goal is to preserve California’s ability to set strong standards, protect public health, and drive climate progress for future generations. 

Advancing clean air for communities

The Community Air Protection Program was developed almost a decade ago in response to legislative direction.  The Legislature has continued to support the program with an annual appropriation. CARB expects to bring Community Emission Reduction Plans for South Sacramento/Florin, East Oakland, and Bay View Hunters Point/Southeast San Francisco to the board in early 2027.

CARB is working with the Department of Conservation to implement SB 1137, which establishes health protection zones near oil and gas production operations. CARB is developing performance standards for systems that can rapidly detect leaks and alert operators before nearby communities are impacted. In 2026, CARB will host public workshops, develop regulatory text, and move towards a formal rulemaking process with the goal of starting in 2028.

Other community air efforts include soliciting new members for the Environmental Justice Advisory Committee in early 2026, updating the 2016 Civil Rights Policy and implementing the Statewide Mobile Monitoring Initiative.

Improving organizational operations

CARB needs to make tough choices to address the state’s budget challenges, which led to a reduction in funding and positions for the agency in the governor’s proposed budget, Cliff said. The agency has launched its first “zero-based budgeting process,” which requires program managers to justify spending from the ground up in line with statutory mandates and strategic priorities.