California lawmakers closed out its legislative session with the passage of a landmark deal, signing six major bills into law to address pollution, reduce electric bill costs, stabilize the gas market and bolster utility affordability.
The bills constitute one of the most sweeping overhauls of the state’s energy and climate policies in decades, positioning California as a trendsetter for ongoing national legislation on gas prices, electricity bills and climate programs. California has faced some of the toughest climate-related disasters in recent years, combatting devastating wildfires amid soaring costs for critical utilities and infrastructure.
The governor’s approval of the six-bill package sets the stage for historic changes to how California approaches long-standing environmental issues while easing burdens on taxpayers. Notably, the state will extend its cap-and-trade system – a preeminent climate program that has spearheaded California’s efforts to reduce greenhouse gas emissions – through 2045.
The divisive program – rebranded as Cap-and-Invest – was revitalized through AB 1207 and SB 840. Its passage places a strict cap on emission and limits the supply of permits that companies can sell to other pollution-heavy businesses based on their efforts to reduce their own emissions rate. The program will stimulate tens of billions of dollars in direct and indirect investments through numerous sectors, including but not limited to:
- Clean energy.
- Natural and working lands.
- Local transit and rail projects.
- Affordable and sustainable housing.
- Clean water.
- Healthy forests.
- Wildfire prevention and response.
The governor also authorized SB 352, a bill expanding an air quality monitoring plan to develop advanced air monitoring technologies and systems to study toxic air contaminant and criteria air pollutants. The plan will empower agencies to redouble their air pollution reduction strategy efforts and increase oversight over the state’s most polluted and disadvantaged communities.
The bill package includes several measures dedicated to building a foundation for lowering energy costs for constituents while enhancing grid reliability and resilience. Notably, SB 254 establishes the California Transmission Infrastructure Accelerator to coordinate transmissions planning, promote public financing and lower project costs. The program will create a public-private partnership (P3) plan to create a revolving fund to support eligible projects while streamlining transmission planning and development initiatives. The state anticipates these efforts will save taxpayers up to $3 billion per year and accelerate critical power line and energy infrastructure construction timelines.
The same bill enforces updated wildfire mitigation measures to increase overall grid resilience. The state will require electrical entities to submit an annual wildfire mitigation plan once every four years. Additional measures will revise provisions that promote efforts to underground electrical transmission lines.
AB 1207 and SB 840 will save state residents hundreds of dollars each year by increasing the Climate Credit that shows up on utility bills. In addition, AB 825 enables the state to expand regional power markets to share clean energy across the West, lowering customer energy costs, improving electric grid reliability and reducing greenhouse gas emissions as a direct result.
The final bill – SB 237 – enforces efforts to stabilize the gas market, working to stabilize the production of in-state petroleum and refinery supply while diversifying the state’s transportation fuel supply. The bill will operate as a mitigation measure against future gasoline price spikes while simultaneously protecting communities in proximity to petroleum wells. The oil spill response administrator will be directed to implement a series of preventative measures to mitigate oil spills. These efforts include implementing emergency drills and preparedness efforts, containing and cleaning up spills and representing the state when collaborating with federal agencies on oil spill response.
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