Our Legislative Advocacy in 2025

BILLS WE SUPPORTED, SIGNED INTO LAW BY GOVERNOR NEWSOM

AB 368 (Ward) Building Energy Standards — Passive House
Climate Action California sponsored this bill. It directs the state Energy Commission (CEC) to perform a comparison study between Passive House standard and California’s current building code. Passive House is an energy efficiency standard, adopted in many other juriscictions, which reduces buildings’ ecological footprint as they require little energy for space heating or cooling and are resilient to overheating.  The bill was serially weakened in the Appropriations committees of both houses, at the request of the CEC. Read our AB 368 support letter here and read a Passive House FAQ here.

Cap and Invest (formerly known as Cap and Trade):
SB 840 (Limón) Greenhouse gases: Greenhouse Gas Reduction Fund: studies
AB 1207 (Irwin) Climate change: market-based compliance mechanism: extension
Both incoming President pro Tempore Monique Limón's SB 840, and Asm Jacqui Irwin's AB 1207 were amended to make substantive changes to the program formerly known as Cap and Trade. The Assembly bill authorizes the program through 2045, puts a stronger focus on emissions reductions, and adds limits to the offsets crediting program. The Senate bill apportions allocations from the Greenhouse Gas Reduction Fund (proceeds from the auctions), and requires the Air Resources Board (CARB) to evaluate and report on the offsets protocols to "reflect the best available science."

Notably, the Assembly bill requires CARB to

design the regulations, including distribution of emissions allowances where appropriate, in a manner that transitions support from gas [utilities] to electrical distribution utilities...to minimize ratepayer impacts and...achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions...[and] ensure that activities undertaken to comply with the regulations do not disproportionately impact low-income communities.

AB 825 (Becker, Petrie-Norris) Independent System Operator: independent regional organization
Allows the California Independent System Operator (CAISO) to join a West-wide regional market for “day-ahead” electricity purchases, resulting in improved grid reliability, cost savings of potentially $1billion per year, and emission reductions. Bill initially started as SB 540. RO to governance with other partner states. Failure to pass would result in loss of access to the current real-time spot market (Western Energy Imbalance Market, or WEIM) and Extended Day-Ahead Market (EDAM) partner states. This would result in some “islanding” of California. This bill had been years in the making and had some strong opposition, but got almost unanimous support in the final vote (only 1 “no” vote, and 108 “yes” votes).  Sign into law. CAC supported - read our support letter here(SB 540 version).

SB 254 (Becker, Petrie-Norris) Energy — Grid & wildfire prevention cost reductions, public ownership of new transmission
Omnibus bill that authorizes public financing and ownership of new transmission, more cost-effective wildfire (WF) mitigation, $6billion WF securitization (reduces rate base), permit streamlining (clean infrastructure), WF fund financing with shareholder chip-in, and return-on-equity transparency. Ratepayer savings of several billion dollars per year. Sign into law. CAC supported - read our support letter here.

SB 237 (Grayson)  Oil spill prevention: gasoline specifications: suspension: California Environmental Quality Act: exemptions: County of Kern: transportation fuels assessment: coastal resources
Directs CEC to study replacing CARBOB (CA’s unique gas blend) with fuel used in other states, to avoid gasoline shortages and price spikes. Ends nine years of litigation after Kern County deemed CEQA compliance regarding oil drilling; allows the county to permit up to 2000 wells per year subject to 3200-ft. setback requirement from sensitive sites. Tightens regulation of offshore oil facilities, and pipelines statewide. Includes  other provisions supporting gas supply as well as more financial disclosure and safety concerns. Read our letter of support here.

AB 663 (McKinnor) Hydrofluorocarbon gases: sale and distribution prohibition: exemptions
This bill closed a significant loophole in reclamation of HFC refrigerants by applying the statutory definition of certified reclaimed refrigerants to all of these products. The loophole would have allowed labeling of virgin HFCs as reclaimed, getting around prohibition of the new HFCs.

AB 1280 (Garcia) Energy
We strongly supported this bill along with the California Clean Manufacturing Coalition Authorizes the California Infrastructure and Economic Development Bank (I-bank) to provide financial assistance for “climate catalyst projects” that enable the decarbonization of industrial facilities’ use of heat and power, reduce criteria pollutants, and provide community benefits. Repurposes a program under the CEC, the new Industrial Decarbonization and Improvement of Grid Operations Program(INDIGO), to provide financial incentives for projects that decarbonize industrial facilities’ use of heat and power, store clean energy, reduce emissions of greenhouse gases and health-harming pollutants, and provide community benefits.

AB 1417 (Stefani): Voluntary Offshore Wind and Coastal Resources Protection Program: community capacity funding activities and grants. Authorizes the California Energy Commission to allocate funds to a local community, a local government, a California tribe, a nonprofit organization selected by California tribes to represent their interests, or a coalition of these entities to participate in offshore-wind proceedings.

AB 1167 (Berman, Addis, McNerney) Electrical corporations and gas corporations: rate recovery: political activities and promotional advertising
Forbids utilities(IOUs) from charging ratepayers for lobbying, political influence, & promotional costs. Read coalition letter here.

SB 57 (Padilla) Electrical corporations: data centers: report
As amended (and severely weakened), authorizes the Public Utilities Commission to assess the impact of data centers’ electricity use on other ratepayers, and report findings to the legislature..

SB 279 (McNerney) Solid waste: compostable materials
Allows municipalities, farms, vineyards, and orchards to operate small composting operations with fewer permit requirements. This bill will encourage composting statewide, keeping organic materials—which release methane when they decompose—out of landfills.

AB 1104 (Pellerin) Net energy metering: construction of renewable electrical generation facilities: public works project requirements
Supports small solar businesses by reducing administrative burdens. Exempts owners of commercial solar projects under 1 MW from registering as an awarding body with the Department of Industrial Relations, while maintaining all current prevailing wage and apprenticeship requirements.

SB 30 (Cortese) Diesel-powered on-track equipment: decommissioning: resale and transfer restrictions
Prohibits transfer by public agencies (such as CalTrain) of the oldest, most polluting diesel locomotives to other jurisdictions. Affected locomotives emit around 20 times the level of NOx and black carbon particulates as modern locomotives. The bill was motivated by Caltrain’s sale last year of >40-year-old locomotives to Lima, Peru after electrification of the San Francisco-San José line. Read our support letter here.

SB 63 (Wiener) San Francisco Bay Area: local revenue measure: public transit funding
Puts a sales tax measure supporting local transit agencies on the November 2026 ballot in San Francisco, Contra Costa, Alameda, San Mateo and Santa Clara counties. Local agencies—Muni, BART, AC Transit, SAMTrans, and CalTrain—face a “fiscal cliff” due to loss of ridership, still not recovered from the pandemic. Without the additional revenue, transit agencies will be forced to make major service cuts that will significantly increase vehicle miles traveled in the Bay Area, increasing both congestion and emissions. Read our SB 63 support letter here.

BILLS WE OPPOSED, SIGNED BY THE GOVERNOR

SB 131 (budget trailer bill, incorporated in the 2025 budget) Public resources   
Modified the California Environmental Quality Act (CEQA) in several significant ways, including exempting a broad, loosely defined category of projects (“Advanced Manufacturing”) from environmental review. Also omitted protections for endangered and threatened species habitat, And, exempted projects are not subject to tribal consultation.

CAC is part of a large coalition working to roll back these changes, via a new bill for 2026:  AB 1083 (Connolly) California Environmental Quality Act: exemptions: housing development projects: natural and protected lands: record of proceedings.

AB 697 (Wilson) Protected species: authorized take: State Route 37 project   
Authorizes “taking” of threatened and endangered species to allow widening of State Route 37, along the north shore of San Francisco Bay, planned as a “stopgap” until an elevated causeway can be built. Sea level rise the route is expected to flood regularly by the end of its expected lifetime. CAC opposed the bill, which passed both houses of the legislature without any “no” votes. Read the opposition letter we signed.

BILLS WE OPPOSED, VETOED BY THE GOVERNOR

SB 419 (Caballero) Hydrogen fuel    
Provides a state sales and use tax exemption for the sale, storage, and use of hydrogen fuel after July 1, 2026 until July 1, 2030. By July 1 2027, the bill requires the California Tax and Fee Administration to begin reporting annually on the amount of hydrogen fuel sold, and the gross receipts from sales. CAC strongly opposes all supports for hydrogen-fueled light duty vehicles because they are half as efficient as battery electric vehicles; furthermore there are very few of these vehicles on the road and just a handful of fueling stations. We expect the reports required by this bill will bear out our contention…but this bill is a waste of resources. Read the Governor's veto message here.

SB 34 (Richardson) Air pollution: South Coast Air Quality Management District: mobile sources: Ports of Long Beach and Los Angeles   
By prohibiting municipalities from regulating "any mobile source that is already subject to regulation by" CARB and associated with a seaport, this bill limits SCAQMD’s ability to require timely emissions reductions from the ports of Los Angeles and Long Beach, and to impose caps on cargo or cruise ship passengers; and from setting any shorter timeline for zero-emission technology or drayage trucks than what is in the Ports’ 2017 Clean Air Action Plans. This bill was opposed by both the South Coast Air Quality Management District and the Bay Area Air District.

BILLS WE SUPPORTED, VETOED BY THE GOVERNOR

SB 541 (Becker, Stern) Electricity: Load shifting
Directs CEC to analyze load shifting programs to reduce peak grid loads, and propose targets for all individual state LSE's. Potential grid cost savings of several percent/yr, if implemented. Somewhat weakened from original; final version dropped strategy to implement. As of 9/22/25 still pending governor's signature. CAC supported — read our support letter here. Read Governor Newsom's veto message here.

AB 740 (Harabedian) Virtual power plants: load shifting: integrated energy policy report — VPPs
Directs CEC to develop virtual power plant (VPP) deployment plans by 1/1/2027. (VPPs include coordinated remote control of (many) thermostats, EV chargers, home batteries, etc., for residential AND C&I).  Implementation is contingent on funding.  Read our support letter here. Read Gpvermpr Newsom's veto message here.

SB 24 (McNerney) Public utilities: review of accounts: electrical and gas corporations: rates: political influence activities
Companion to AB 1167. Prohibits a utility from recovering from ratepayers expenses for opposing the municipalization of electrical or gas service; requires the Public Utilities Commission (CPUC) to monitor and investigate compliance with the prohibition. Read Governor Newsom's veto message.

SB 682 (Allen) Environmental health: product safety: perfluoroalkyl and polyfluoroalkyl substances
This bill eliminates PFAS (“forever chemicals”) when “intentionally added to products including baby bedding and carseats, dental floss, ski wax, food packaging, and non-stick cookware. As originally written it also eliminated PFAS in refrigerants, which would have affected an important category of short-lived climate pollutants. Unfortunately the refrigerant provisions were removed in Senate Appropriations. While CAC’s Plastics/Toxics team continued to support the bill, our Refrigerants team went to neutral post-amendments. Read our Refrigerants team's letter of support here.

Note: Refrigerants are hundreds to thousands of times more warming than CO2, so their elimination is critical. Hydrofluorocarbon (HFC) refrigerants cause 5% of California’s greenhouse gas emissions considered on a hundred-year basis, and 10% on a 20-year basis. Moreover, HFC and hydrofluoroolefin (HFO) refrigerants make up 63% of  all PFAS chemicals, so eliminating these refrigerants takes very long-lasting toxic chemicals out of our air and water. We hope to see another refrigerants/PFAS bill introduced in 2026.

BILLS WE SUPPORTED OR OPPOSED THAT FAILED IN THE LEGISLATURE

SB 445 (Wiener) High-speed rail: third-party agreements, permits, and approvals: regulations -SUPPORT
CAC supported this bill, which would have provided the California High-Speed Rail Authority greater leverage in negotiations with third parties, including utilities and local government agencies. The bill failed to make it out of the Assembly Appropriations Committee. High-speed rail will provide a low-emission electrified alternative to automobile and air travel, and will ultimately serve as the backbone for a robust rail network in California. Read CAC’s SB 445 support letter here.

SB 545 (Cortese) High-speed rail: economic opportunities - SUPPORT
In addition to its climate benefits, high-speed rail is expected to provide a wide range of economic benefits along its route. The economic activity stimulated by the construction and operation of high-speed rail is expected to significantly exceed the cost of construction. A study of these benefits would help to make the case for completion of the California High-Speed Rail project at the earliest possible date. Read CAC’s SB 545 support letter here.

AB 526 (Papan) Energy: in-state geothermal energy generation  - SUPPORT
Would have required the Energy Commission (CEC0 to quantify the maximum capacity of in-state next-generation geothermal energy to achieve reliability, ratepayer, employment, and decarbonization benefits; set planning goals for 2035 and 2045 and, with other relevant agencies, develop and submit to the Legislature a strategic plan; identify suitable locations on state and federal lands; develop a permitting process; and, consulting with the CPUC and CAISO, assess and plan for the necessary transmission investments and upgrade. The bill passed the Assembly Natural Resources and Utilities and Energy committees with unanimous votes, but died in Assembly Appropriations due to expected high costs of administration.

AB 942 (Calderon) Electricity: climate credits - OPPOSE   
As introduced, would have made three changes to Net Energy Metering (NEM) customer-generator arrangements: 1) sunsetting legacy NEM contracts after 10 years; 2) requiring new property owners inheriting solar systems to take service under the current, not the inherited, NEM tariff, eliminating the promised financial benefit to future purchasers of homes with previously installed rooftop solar arrays; and 3) ending Climate Credit allocations to NEM customers starting on January 1, 2026. The bill passed the Assembly and was amended into insignificance in Senate Energy, Utilities, and Communications Committee. After that it never made it to the Senate floor.