The slate of six bills seeks to address energy affordability, the stabilization of petroleum markets, and reducing air pollution as part of California's acceleration toward a green job-generating economy. A statement from the Governor's Office said California's action comes as the Trump administration continues "to gut decades-old, bipartisan American clean air protections and derail critical climate progress."
The bills, which Newsom signed at the Morrison Planetarium at the California Academy of Sciences in San Francisco on Friday, were approved with bipartisan support in an extended session of the California legislature last weekend. They represent a balancing act in managing the transition from fossil fuels to green energy amid the challenge of climate change, while keeping energy costs manageable for consumers.
California lawmakers watch as Gov. Gavin Newsom signs a package of bills on energy and climate in San Francisco at the California Academy of Sciences' Morrison Planetarium, Sept. 19, 2025. KPIXNewsom said legislation will bring down electricity costs for Californians by providing up to $60 billion in electricity bill refunds through an expanded California Climate Credit. The legislation also aims to make energy more affordable by accelerating critical clean energy projects and expanding regional energy markets to improve grid reliability.
One bill eases regulations on oil production in Kern County in a change the Governor's Office calls "targeted, locally-led, environmentally responsible" to boost the state's fuel supply while protecting the ongoing transition away from fossil fuels. The signing of SB 237 brought rare praise from the Western States Petroleum Association, which historically has strongly opposed the state's aggressive climate policies.
Another bill extends the state's cap-and-trade program to 2045. The program puts a cap on emissions from large polluters that gets lowered over time. Companies can then sell credits for polluting less to other companies, allowing them to reduce emissions while providing flexibility in how the limits are met. The program is now known as "cap-and-invest" to highlight that the money raised is reinvested back into the state to fund projects on climate, housing, and transportation.
The package also updates California's Wildfire Fund, the $21 billion insurance pool that helps utilities cover wildfire liabilities and avoid bankruptcy. It adds another $18 billion — financed jointly by utility shareholders and ratepayers — while requiring utilities to put in billions more of shareholder money to harden and modernize their equipment.
Asha Sharma, state policy manager with the Leadership Counsel for Justice and Accountability, told KQED that the legislation doesn't address pollution for Californians who live near refineries.
Advocacy group Consumer Watchdog went further, calling the claims made by the Governor's Office "a sham."
"The truth is 90% of the 'solutions' will drive up costs for gasoline and electricity," said Consumer Watchdog president Jamie Court in a video statement. "Labeling this group of bills 'Landmark Clean Energy, Climate and Affordability Solutions,' is like calling a smog alert a breath of fresh air."
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