California Transit Advocates Protest Proposed Giveaway to Oil Companies

Advocates for public transit, clean air, and affordable housing gathered at San Francisco’s Civic Center to protest a proposal by the California Air Resources Board (CARB) that they argue would divert billions of dollars away from crucial public services and towards major oil corporations. The protest targeted Governor Gavin Newsom, urging him to intervene and block the allocation of up to $4 billion in free emission permits to companies like Chevron.

The proposed reallocation comes from the state’s cap-and-trade program, now rebranded as “cap-and-invest.” For years, this program has provided significant funding to transit agencies. The San Francisco Municipal Transportation Agency (SFMTA) alone has received $600 million over the past decade, which has supported essential projects such as light rail vehicle replacements and service improvements through the Muni Forward program, including enhancements to the 38 Rapid Geary bus route.

A significant concern among advocates is that this proposed shift in funding would undermine investments in public transit and affordable housing, directly contradicting the state’s stated climate goals and commitments to equitable development. Organizers argue that instead of supporting the largest polluters, the state should be doubling down on initiatives that benefit communities and promote sustainable transportation.

Rally for Transit Funding

Around 100 advocates, representing various organizations including the Transbay Coalition, Seamless Bay Area, TransForm, and San Francisco Transit Riders, participated in the rally. They voiced their frustration over what they perceive as a move to subsidize fossil fuel companies at the expense of public services that benefit millions of Californians.

Carter Lavin of the Transbay Coalition, a key organizer of the event, expressed dismay at the necessity of such a protest. “It’s terrible that we have to be here today,” Lavin stated. “CARB said: ‘You know who really needs help right now? Chevron and big polluters.’ The state should be doubling down on affordable housing and transit.”

Dylan Fabris from San Francisco Transit Riders echoed these sentiments, highlighting the detrimental impact on transit users. “CARB is proposing something that supports our biggest polluters at the expense of public transit riders,” Fabris said. “I don’t love having to come here every year to tell the governor to stop divesting in public transit.”

The stated justification for offering free pollution credits is to lower gasoline prices. However, advocates contend that the most effective way to reduce gasoline demand is by providing viable and attractive alternatives, such as robust public transit systems. The timing of this proposal is particularly galling for transit advocates, as it follows the successful completion of signature gathering for a regional transit funding measure, leading some to suspect an opportunistic move to redirect funds.

Following speeches, the demonstrators marched from Civic Center Plaza to the state office building, where they collectively called Governor Newsom’s office to demand his intervention. Some reported encountering busy phone lines, suggesting the coordinated effort had an impact. Organizers encouraged participants to continue calling from their homes and offices.

Later, California Highway Patrol officers informed the group that their demonstration permit did not extend to the state building’s stairs, prompting the demonstrators to return to the Civic Center plaza.

Climate and Housing Goals at Risk

Zack Deutsch-Gross, Executive Director at Transform, emphasized the broader implications of CARB’s proposed action. “Without Cap-and-Invest funding for these vital programs, California will not hit our climate goals, we will not build the affordable housing we need, and our transit systems will languish,” Deutsch-Gross warned. He added that CARB’s “decision to push through this last-minute change is not only a major setback for climate and affordability, but undermines the agreement made by the Governor and Legislature to reauthorize Cap and Invest last year.”

Megan Zapanta of the Asian Pacific Environmental Network criticized the move as a betrayal of public trust and environmental justice principles. “The Governor’s Air Resources Board is about to allow California’s refineries to ramp up emissions and pollution in working-class communities,” Zapanta stated. “Forget ‘cap’ or ‘invest’–CARB is forgoing both as they zero out investments in our people. We know what this rule change represents: a massive giveaway to the oil industry, rushed in at the last minute.”

The rally and subsequent calls to the governor’s office are part of an ongoing effort to influence CARB’s decision, which was scheduled for discussion at the board’s regular meeting on Thursday and Friday. Advocates are urging the public to participate by emailing and calling into the hearing to voice their opposition to the proposal.

Key facts
Program: Cap-and-Trade (rebranded Cap-and-Invest)
Proposed action: Allocate up to $4 billion in free emission permits to oil companies
Advocates’ concerns: Diversion of funds from public transit and affordable housing, increased pollution
Key stakeholders: California Air Resources Board (CARB), Governor Gavin Newsom, transit agencies, oil companies, environmental and housing advocates

The potential diversion of funds from the cap-and-trade program could have significant repercussions for the future of public transit in the Bay Area and beyond. It raises questions about the state’s priorities in balancing environmental regulations with the need to fund essential public services and infrastructure. The outcome of CARB’s decision will be closely watched by urban planners, transport professionals, and community groups across California.

Fuente: Streetsblog SF (https://sf.streetsblog.org/2026/05/27/bay-area-advocates-rally-to-stop-state-giveaway-to-oil-companies)

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