New California Laws Deliver Bigger Rebates on Electricity Bills, Plus Cleaner and More Reliable Energy

SACRAMENTO — Californians can expect to see bigger rebates on their electricity bills this year as a result of landmark energy affordability and climate legislation signed into law Friday. 

In addition to delivering more savings for families and households on their bills, these six new laws will also create billions in energy savings for California, strengthen the reliability of the power grid, enhance wildfire protections, and continue California’s leadership in addressing climate change — all while creating hundreds of thousands of jobs statewide.

The legislation, authored and advanced by Speaker Robert Rivas (D-Salinas) in partnership with the Senate and Governor’s office, marks one of the most ambitious energy affordability efforts in the nation. By extending California’s “Cap-and-Invest” program, prioritizing clean power, and putting California on a pathway to partner with Western states to increase access to cheaper, more reliable energy, the new laws will lead to more immediate relief and long-term benefits for Californians.

What Speaker Robert Rivas Says

“These are the strongest energy affordability solutions Californians have seen in years. Bigger refunds on electricity bills, more reliable gas supplies, improved wildfire protections for homeowners, and a smarter power grid that will save families billions. We’re keeping health and environmental protections in place while building a cleaner, more resilient energy future.”

What Assemblymember Jacqui Irwin Says

“California’s Cap-and-Trade program is the strongest, most cost-effective emissions reduction program in the world. With the passage of AB 1207, we reaffirmed our commitment to lead the effort to fight climate change while doing it in a manner that protects Californians’ pocket books.  As the representative of the Pacific Palisades - where over 5000 homes tragically burned 9 months ago – we need to remember that the cost of inaction is immeasurable.”

What Assemblymember Cottie Petrie-Norris Says

“California has set the gold standard for climate action, demonstrating that we can cut emissions while growing the world’s fourth-largest economy. Our constituents tasked us with navigating some profoundly important challenges – lowering sky-high utility bills, increasing reliability to avoid blackouts, and continuing to lead the country in the fight for clean energy. This package, supported by leading climate, business, and labor organizations, does all three.”

What Assemblymember Isaac Bryan Says

“Clean, renewable energy is the best way to increase energy affordability in California. As we move forward with our incredibly ambitious – and achievable – goals to phase out fossil fuels, we must also ensure that communities most impacted by the generational harms of pollution and climate change are prioritized. Solving the complex challenges in our state isn’t easy, but it’s necessary. That is what we have done this legislative session, and what Governor Newsom has now signed into law.”

What Assemblymember Lori Wilson Says

“The Energy Affordability and Climate Legislation package is about making sure California families and communities are not left behind as we move toward a cleaner future. Stabilizing gasoline prices and supply is a critical piece of that work, because families deserve certainty at the pump and businesses need reliable access to fuel as the state manages this transition. I want to thank Speaker Rivas for his leadership and Governor Newsom for signing this bill package into law. Together, we are taking meaningful steps to protect consumers today while preparing for the long-term changes ahead.”

How We Delivered Cheaper, Cleaner, More Reliable Energy

• Lower electricity bills for working families: Extending “Cap and Invest” is estimated to return $3 billion in Climate Credits every year to Californians on their utility bills, with higher rebates to Californians annually.
• Allow partnership between states across the West on cleaner, cheaper, more dependable energy: Integrating California’s grid with western states will save Californians upward of $1 billion every year on energy costs.
• Create new jobs: These solutions are estimated to create 287,000 jobs through 2045. Cap and Invest has already created 122,000 jobs , plus nearly 14,000 affordable housing projects, and over $9 billion to benefit neighborhoods hit hardest by pollution the program has already achieved.
• Make significant investments in affordable housing, cleaner buses, safer drinking water, wildfire prevention and healthier air.
• Protect vulnerable communities: The legislation strengthens environmental protections and ensures regulators can act quickly to crack down on polluters and protect public health. It also dedicates Cap and Invest proceeds to support climate change adaptation and the resiliency of disadvantaged communities.
• Stabilize gasoline prices and supply: These laws secure the safe and affordable supply of transportation fuels to better shield families from sudden increases at the pump.
• Stabilize insurance rates: The legislation adds $18 billion to the Wildfire Fund, ensuring fire victims are compensated quickly and costs are fairly shared. 

Overview of the New Laws

Cap and Invest extension: AB 1207 reauthorizes California’s cap-and-invest program and revises how the Air Resources Board hands out free pollution “allowances” to industries. Keeps the twice-yearly climate credit on utility bills, with changes so families see the break during months when bills are highest.

Cap and Invest spending plan: SB 840 sets a new blueprint for how California will spend cap-and-invest revenues starting in 2026: guarantees $1 billion a year for high-speed rail, gives lawmakers $1 billion a year to direct through the budget, and continues support for housing, transit, clean-air programs, wildfire prevention, and safe drinking water. Requires the Air Resources Board to re-evaluate its offset rules and report back in 2026.

Energy markets: AB 825 protects California’s clean-energy progress as we move toward a Western power market — replacing outdated rules with clear guardrails so any regional grid participation keeps our lights on, and preserves the state’s renewable-energy standards.

Utility Affordability and Wildfire Fund: SB 254 sets up a public financing system to build new transmission lines, allowing low-interest bonds to keep costs down. Bars utilities from earning profit on the next $6 billion spent on wildfire-safety upgrades. Adds $18 billion to the state’s wildfire fund to ensure victims of utility-caused fires are paid quickly, with costs split evenly between shareholders and ratepayers of the three major investor-owned utilities.

Fuel Stability: SB 237 enables continued in-state oil production by deeming Kern County’s EIR sufficient under California’s environmental review law for new Kern County oil wells and freeing up projects stuck in litigation. Additionally, imposes stricter safety tests for restarting old pipelines and adds new layers of environmental assessment for decommissioned pipelines.

Environmental Justice: SB 352 expands real-time air-monitoring networks around refineries, pipelines and other major polluters so regulators and residents have up-to-date data to crack down on violations, improve public health, and hold companies accountable.

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For more information, follow Speaker Robert Rivas at the following social media channels:

Instagram: @caspeakerrivas

Facebook: www.facebook.com/CASpeakerRivas/