Gavin Newsom, Governor of California | Official website
Governor Gavin Newsom, along with Senate President pro Tempore Mike McGuire and Assembly Speaker Robert Rivas, has announced a legislative agreement aimed at reducing electricity costs for Californians, stabilizing the gasoline market, and advancing efforts to cut air pollution.
“After months of hard work with the Legislature, we have agreed to historic reforms that will save money on your electric bills, stabilize gas supply, and slash toxic air pollution — all while fast-tracking California’s transition to a clean, green job-creating economy,” said Governor Gavin Newsom.
Senate President pro Tempore Mike McGuire commented on the broader context for these measures. “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,” he said. “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.”
Assembly Speaker Robert Rivas emphasized affordability in his remarks. “We’re building a new foundation that delivers lower energy costs and more money for California families,” Rivas said. “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.”
Key elements of the legislation include AB 1207 (Irwin) and SB 840 (Limon), which increase the state’s Climate Credit found on utility bills—an initiative expected to save residents hundreds of dollars each year. Another measure, AB 825 (Petrie-Norris/Becker), seeks to reduce customer energy costs by expanding regional power markets across Western states so clean energy can be shared more efficiently.
SB 254 (Becker/Petrie-Norris) addresses both cost reduction for customers and improved wildfire safety by enhancing oversight over utility business practices and expanding funding dedicated to wildfire prevention.
On stabilizing gasoline prices in California—a state often subject to price spikes—the legislation includes SB 237 (Grayson/Wilson). This bill aims to steady petroleum production within the state while diversifying transportation fuel supplies. It also introduces additional safety requirements for idle petroleum pipelines.
To address pollution reduction alongside economic growth goals, AB 1207 (Irwin) and SB 840 (Limon) extend what is now called Cap-and-Invest—the state’s primary program for reducing greenhouse gas emissions through investment in areas such as clean energy projects, sustainable housing initiatives, public transit improvements, forest management programs, clean water access projects, and wildfire response efforts.
Additionally, SB 352 (Reyes) increases oversight in regions most affected by air pollution by lengthening monitoring periods for local agencies tasked with implementing air quality improvement strategies.
The legislative package reflects ongoing efforts by state leaders to address environmental challenges while seeking economic benefits for residents throughout California.
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