Speaker Rivas and Assembly Democrats delivered new laws for 2026 that will provide utility savings when families need it most, and puts the state on a pathway for a more sustainable energy future
- Nick Miller
- Communications Director
- 916-319-2029
- Nick.Miller@asm.ca.gov
SACRAMENTO — As California’s signature package of new energy affordability and climate laws go into effect, the state is positioned for a cleaner, cheaper and more dependable energy future, with workers and families benefiting from one of the most ambitious efforts to lower monthly bills, expand reliable clean power and keep fuel costs in check.
New Laws Deliver Energy Affordability for Californians
Bigger rebates on electricity bills: Extending and strengthening the state’s Cap and Invest program is projected to return roughly $3 billion every year to California ratepayers in the form of Climate Credits on their electricity bills — significant, direct savings for families.
Cleaner, cheaper, more reliable power: California is advancing a pathway to participate in a West-wide electricity market that will pool clean energy resources across multiple states. This coordinated approach is expected to save Californians upward of $1 billion annually, while improving grid reliability and accelerating the transition to cleaner power.
More stable and affordable fuel prices: The new laws also authorize the availability of an additional gasoline blend, E15, providing families more stable prices at the pump as the state continues to evaluate new fuel options.
Major job creation across the state: These laws are projected to generate 287,000 new jobs and $55 billion in economic growth through 2045. Cap and Invest has already created 122,000 jobs, plus nearly 14,000 affordable housing projects, and delivered over $9 billion to benefit neighborhoods hit hardest by pollution.
Climate and infrastructure investments: Billions of dollars from the state’s climate programs will continue flowing to local communities, supporting projects such as:
- Affordable housing near job centers
- Expanded clean transit
- Wildfire prevention and forest resilience
- Safe drinking water systems
- Clean-air initiatives in disadvantaged areas
Overview of New Energy Laws
As these landmark new energy laws go into effect, families across California will see meaningful progress — bigger energy rebates, more reliable electricity, cleaner air, and stronger protection from fuel price shocks. Combined, these new laws create a long-term plan that strengthens California’s energy system while reaffirming the state’s position as a national leader in climate action.
Cap and Invest extension: AB 1207 by Assemblymember Jacqui Irwin 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 by Senator Monique Limón 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 by Assemblymember Cottie Petrie-Norris 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 by Senator Josh Becker 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 by Senator Tim Grayson helps stabilize gasoline supply and prices 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 by Senator Eloise Gómez Reyes 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/