Governor Newsom, legislative leaders announce major deal to save money on electric bills, stabilize gas market, cut pollution

“In the face of devastating attacks from Donald Trump, escalating threats from wildfire and national economic turmoil, California is standing strong to grow jobs and our economy, make life more affordable and protect our leading climate policies,” said Senate President pro Tempore Mike McGuire. “This bold legislative package will deliver for every corner of the Golden State on energy affordability and wildfire prevention, expand clean drinking water to tens of thousands and it also cements historic agreements on California’s signature climate policies. I’m grateful to Governor Newsom, Speaker Rivas and the dozens of Senators and Assemblymembers who kept their noses down all year to bring home real and lasting change that will help every one of us live the California dream,” 

“We’re building a new foundation that delivers lower energy costs and more money for California families,” said Assembly Speaker Robert Rivas. “And we took the time to get it right because real change, lowering costs and protecting homeowners is essential. This historic agreement puts California on a pathway with Western states to provide cleaner, cheaper, more reliable energy. It’s a landmark affordability agreement that will amount to billions of dollars in savings for Californians.”

Saving money on electric bills. 

• AB 1207 (Irwin) and SB 840 (Limon) significantly increases the state’s Climate Credit that shows up on utility bills – saving Californians hundreds of dollars every year.

• AB 825 (Petrie-Norris/Becker) lowers customer energy costs, improves electric grid reliability and cuts climate pollution by enabling California to expand regional power markets to share clean energy throughout the West.

• SB 254 (Becker/Petrie-Norris) lowers customer energy costs and improves utility wildfire safety. It enables more affordable electric grid investments by improving utility wildfire oversight, creating an expanded Wildfire Fund and enhancing oversight of utility business practices. 

Stabilizing the gasoline market.

• SB 237 (Grayson/Wilson) mitigates against future gasoline price spikes by stabilizing the production of in-state petroleum and refinery supply and diversifying the state’s transportation fuel supply, while protecting communities near petroleum wells and increasing safety requirements on idle petroleum pipelines. 

Cutting pollution and growing the economy. 

• AB 1207 (Irwin) and SB 840 (Limon) extends the state’s preeminent climate program, Cap-and-Invest, formerly known as Cap-and-Trade. It bolsters California’s ambitious leadership in cutting climate pollution in the state while growing the state’s economy and improving the quality of life for millions of Californians. Cap-and-Invest stimulates both direct and indirect investment of tens of billions of dollars into the state’s economy with investments in clean energy, natural and working lands, local transit and rail projects, affordable and sustainable housing, clean water, healthy forests and wildfire prevention and response and more. 

• AB 352 (Reyes) expands local air pollution reduction efforts and oversight in California’s most polluted communities by extending air pollution monitoring periods and ensuring the state and local air quality improvement agencies are redoubling their efforts to deploy effective air pollution reduction strategies.