California governor signs energy affordability bills to large fanfare

SAN FRANCISCO (CN) — California Democrats hailed the Friday signing of a legislative bill package they say will maintain the state’s ambitious climate goals while driving down energy costs for Golden State residents.

Governor Gavin Newsom praised lawmakers for making the policy a reality, arguing that many governments have identified the problem, but few have developed solutions.

“We have to effectively transition,” Newsom said of the state’s move away from fossil fuels to cleaner energy sources.

“We set the tone and pace for the rest of the nation,” he added.

The six-bill package, unveiled last week in the final days of the Legislature’s session, extends California’s cap-and-trade program to 2045, allocates $1 billion in the 2026-27 fiscal year from the Greenhouse Gas Reduction Fund to the controversial high-speed rail project, and streamlines permits in Kern County to enable up to 2,000 new wells a year.

Democrats said the measures will provide reliability to energy prices, create jobs in the clean energy industry and cut utility costs. Newsom said ratepayers would see billions in electricity rebates.

“We are cutting bills,” said Assemblymember Cottie Petrie-Norris, an Irvine Democrat and chair of her chamber’s Utilities and Energy Committee. “We’re cutting pollution.”

Petrie-Norris said that lawmakers in prior generations would set ambitious goals with a deadline decades in the future. They’d then congratulate themselves, knowing they’d never have to truly address the problems.

“We can’t do this anymore,” she added. “Getting this done comes on our watch.”

A series of legislators and supporters took turns highlighting the bill package and what they called its successes.

State Senator Monique Limón, a Santa Barbara Democrat and president pro tempore-elect, said California is reaffirming environmental protections as the federal government rolls them back.

Limón argued that over 100,000 jobs would arrive in the wake of “cap-and-invest,” Democrats’ rebranding of cap-and-trade. The bill calls for $800 million for affordable housing, $130 million for clean water, and $200 million for wildfire protection.

“The state must continue to transition to green energy,” she said, adding later: “California is stepping up to the plate like we have done time and time again.”

The bills won’t only affect the fight against climate change, but will have an impact on blue-collar workers as well, said Rudy Gonzalez, with the San Francisco Building and Construction Trades Council.

Gonzalez said his members suffer from the state’s affordability crisis and look to Sacramento for leadership. The bills advance the battle against climate change and send the message that blue-collar workers are foremost in leaders’ minds.

“This package of bills is a shot in the arm to blue-collar workers,” he added.

Assemblymember Jacqui Irwin, a Thousand Oaks Democrat, noted that 17 lawmakers served on a working group for months to hammer out some policies reflected in the legislation. She joked about the difficulty of getting that number of people to agree.

“A week and a half ago, we weren’t really sure it was going to get done,” Irwin quipped.

Some Republicans wish it hadn’t.

However, not all lawmakers are on board. Senator Shannon Grove, a Bakersfield Republican, praised a bill boosting oil drilling in her district, a move backed Friday by Western States Petroleum Association President and CEO Jodie Muller.

“Today, Governor Newsom signed SB 237, increasing crude production in Kern County under the most stringent regulatory framework in the country,” Muller said. “Governor Newsom’s leadership on SB 237 was foundational for the renewed partnership with the oil and gas industry. We look forward to continuing our relationship focused on realistic policies that balance environmental and economic goals to ensure California and the Western States have access to the affordable fuels they need.”

Others have decried the legislation, saying it was crafted in secrecy and revealed at the last moment.

Moments before last Saturday’s vote on a bill, Assemblymember Carl DeMaio, a San Diego Republican, called cap-and-trade a failed scam.

Assemblymember James Gallagher, A Yuba City Republican and minority leader emeritus, mockingly imitated Newsom in a Friday post on X.

“Translation: I, Gavin C. Newsom, am slightly reversing course on my own policies because they suck and would have driven gas and electricity prices even higher,” Gallagher said. “Nonetheless, I am not lowering any of those costs. Good luck to you, California. I’m busy running for President.”