CA AB1207

Extends California's cap-and-trade program (renamed "California Cap-and-Invest Program") from January 1, 2031 to December 31, 2045, maintaining market-based declining annual aggregate emissions limits for greenhouse gas sources

Increases offset credit limits from 4% to 6% of a covered entity's compliance obligation from January 1, 2026 through December 31, 2045, with no more than half from projects outside California

Creates the California Climate Mitigation Fund to receive revenues from allowance sales at the price ceiling, with funds available upon legislative appropriation for direct rebates and investments to reduce household energy costs

Requires greenhouse gas allowance credits to residential electric customers be provided in no more than 4 high-billed months per year to maximize bill affordability, and directs 5% of electrical corporation allowance revenues to the California Transmission Accelerator Revolving Fund from July 2026 to July 2031

Mandates the State Air Resources Board transition allowance support from gas corporations to electrical distribution utilities by January 1, 2031, and requires regular reporting to the Legislature on program implementation and economic impacts