The program's revenue comes from polluters paying for and selling emissions credits. It's meant to gradually reduce greenhouse gas emissions in California, and Newsom has expressed an interest in continuing the program through 2045.
Michael Pimentel is the executive director of the California Transit Association. He supports continuing the program.
Pimentel said, "So, for public transportation specifically, it's provided $2 billion dollars since the inception of the program in 2014, and so those investments have been really foundational for our work in improving public transit here in the state.
Some groups say they'll only support the program if it's reformed to eliminate loopholes that are slowing progress to reducing emissions.
Ryan Schleeter is a spokesperson for the environmental nonprofit Climate Center. He wants "free allowances" removed from the program, which he describes as a free pollution credit.
Schleeter said, "The free allowances given to oil and gas corporations total around $1 billion to companies like Exxon, Chevron, Shell, these giant corporations that really don't need a state handout."
Newsom and state lawmakers could make a decision about the program's future before the legislative session ends in September
