California regulators have revised the state's carbon market rules, potentially providing up to $4 billion in additional free emissions allowances to oil refiners and other industrial companies.
The California Air Resources Board voted to amend the Cap-and-Invest program to grant extra free allowances, aiming to limit potential increases in fuel and consumer costs.
The move comes amid growing pressure over inflation and elevated gasoline prices. Environmental groups and economists criticized the changes, warning they could weaken incentives to reduce emissions.
CARB officials defended the revisions, stating they improve affordability without undermining climate policies.
