Governor Newsom Signs Climate Action Bills into Law
Bills include reauthorization of cap and invest, western grid integration, and more.
SAN FRANCISCO – Governor Gavin Newsom signed a suite of climate action bills into law today, continuing California’s climate leadership by reauthorizing and updating the cap-and-Invest program through 2045. In addition, he signed a bill to enable a western electricity market marking a major step toward a cleaner, more reliable, and more affordable energy future.
Improvements to the cap-and-invest program per AB 1207 (Irwin) and SB 840 (Limón) include provisions to lower electric bills, adjust free allowances, and improve the integrity of offsets.
The following is a statement from Manish Bapna, president and CEO of NRDC (Natural Resources Defense Council):
“California leads the way again. The state's leadership on climate action is even more crucially important during this period of climate denial at the federal level. Governor Newsom and the legislative body understand the importance of state-level leadership to transition away from fossil fuels, while addressing affordability and jobs. Ambitious climate policies not only bolster California’s own transition to clean energy, but also build the market to make clean energy development more accessible in other states. In the face of a hostile federal government, California’s bold actions maintain progress on curbing climate change and have global significance.”
The bills signed today include:
- AB 825 (Petrie-Norris, Rivas, Becker): Empowers California to join a regional electricity market to more efficiently use our existing electricity infrastructure, which will save costs to ratepayers and enable California to use less polluting fossil fuel plants in the summer.
- SB 254 (Becker, Wahab, Petrie-Norris): Reduces Californians’ electricity bills by forcing utilities to use smarter, cheaper financing tools while building out infrastructure, and extends the investor-owned utility Wildfire Fund to prevent price shocks to electricity customers and ensures 2025 Eaton Fire wildfire victims receive compensation for damages to their homes.
- AB 1207 (Irwin, Rivas, Limón, McGuire): Extends and improves the cap-and-invest program to maintain California’s national leadership with achieving net-zero emissions by 2045.
- SB 840 (Limón, McGuire, Irwin, Rivas): Improves the integrity of offsets used within the cap-and-invest program and provides strategic flexibility for revenues from the program in anticipation of future climate change investment needs, while continuing investments in transit, innovation, and reducing air pollution
NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).