Newsom Ends Legislative Session with Landmark Climate and Energy Reforms

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Gov. Gavin Newsom closed out the legislative year with one of the most sweeping overhauls of California’s energy and climate policies in decades — a package that could give him a presidential debate-stage talking point on rising energy costs as the Democratic Party shifts its focus to affordability.

The six-bill deal — passed Saturday after lawmakers extended their session by an extra day because of last-minute dealmaking — was sold as a way to ease gas prices and soaring electricity bills while preserving the state’s signature climate programs.

Ratepayers are expected to get some relief through measures to cut the cost of building transmission lines, and an expanded cap-and-trade energy credit aimed at blunting rising energy bills. They will also get some protection from utilities hiking rates based on the cost of wildfire-proofing their infrastructure, such as by putting power lines underground. But they’ll also continue paying $9 billion over the next decade into a fund to compensate wildfire victims.

Key Aspects of the Overhaul

Affordability:

The legislation aims to cut the cost of building transmission lines and provides an expanded cap-and-trade energy credit to ease rising energy bills, CalMatters reports.

Cap-and-Trade Extension:

A key part of the package is the extension of California’s cap-and-trade program through 2045, providing a framework for allocating its revenues.

Grid Regionalization:

The bills pave the way for connecting California’s electricity grid more closely with neighboring states.

Gas Supply Stabilization:

Measures are included to stabilize the state’s gasoline supply and mitigate future price spikes.

Environmental Goals:

The package supports the state’s transition to a clean energy economy and aims to reduce toxic air pollution, according to the Governor’s office.

The package of legislation now heads to the governor’s desk for his signature.