California lawmakers push forward on energy affordability legislation

SACRAMENTO, Calif. (CN) — A high-profile bill package targeting energy affordability in California took center stage Saturday morning in the state Capitol.

Six bills on oil production, new gasoline blends and extending California’s cap-and-trade program had to wait until Saturday for a vote because of a legislative deadline. Lawmakers wrapped up Friday’s session in the early morning and returned hours later to pass the package.

All the bills passed the Legislature within hours and now await Governor Gavin Newsom’s signature.

“Today, the Legislature delivered on a promise and sent a groundbreaking affordability, energy and climate package to the governor’s desk,” Senate President pro Tempore Mike McGuire said in a statement. “While the Trump administration wages attacks on our economy and nation-leading climate progress, California is charting the future — cutting costs, building a stronger economy, protecting our climate progress, and proving our progress can’t be stopped.”

A centerpiece of the package was Senate Bill 237, allowing Kern County to approve up to 2,000 new well-drilling permits a year. State Senator Shannon Grove, a Bakersfield Republican, praised the legislation, noting the state approved only 84 permits last year.

Assemblymember Lori Wilson, a Suisun City Democrat, said the state needs a comprehensive strategy to move away from fossil fuels. The bill helps by ending decade-old litigation over the California Environmental Quality Act while letting Governor Gavin Newsom suspend the costlier summer gas blend.

“This is about matching our supply to our demand,” Wilson said.

The bill passed the Assembly 59 to 4, proceeding to the state Senate for a final vote.

Supporters said the legislation was needed to move California away from fossil fuels. Assemblymember Gregg Hart, a Santa Barbara Democrat, said the state’s energy future depends on a responsible shift from fossil fuels that includes better testing of aging pipelines and streamlining Kern County’s permitting process.

“Kern County remains the backbone of California’s oil production,” Hart added.

Other Assembly members raised concerns. Assemblymember Al Muratsuchi, a Torrance Democrat, said he would support the bill reluctantly, noting all refineries will eventually close and arguing oil companies, not taxpayers, should cover cleanup costs.

A handful of members opposed the bill.

“SB 237 is a huge step backward,” said Assemblymember Tasha Boerner, an Encinitas Democrat. She added that lawmakers shouldn’t have to choose between jobs and families.

Also in opposition, Assemblymember Alex Lee, a San Jose Democrat, said the clean air industry is thriving, even in red states. California should focus on the future of energy, not prop up its past.

“It is a regulatory giveaway to big oil,” Lee added.

The Assembly also passed Senate Bill 840, which will allocate $1 billion in the 2026-27 fiscal year from the Greenhouse Gas Reduction Fund to the controversial high-speed rail project. It will also allocate another $1 billion to items like the University of California Climate Research Center.

The bill will also provide $3 million to create a new climate bureau.

Assemblymember Carl DeMaio, a San Diego Republican, slammed the bill, calling cap-and-trade window dressing for the environment while politicians fill their pockets.

“Cap-and-trade is a scam, it’s a fraud,” DeMaio said. “It has failed.”

Senate Bill 840 passed the Assembly 54 to 15, moving to the Senate for a final vote.

As the Assembly focused on the bills before it, state senators addressed the companion legislation in its chamber.

One of those bills was Assembly Bill 1207, which passed 29 to 6 and was sent to the Assembly for a final vote. The bill will reauthorize the state’s cap-and-trade program through 2045.

State Senator Monique Limón, a Santa Barbara Democrat, said the bill would help balance the state’s economic viability with its climate goals.

“What is going to be before us today is a promise kept,” McGuire said of the bill package.

The other bills included Assembly Bill 825, which seeks to create a Western power market; Senate Bill 254, which will set up a public financing system for new transmission lines; and Senate Bill 352, which heightens realtime air-monitoring networks around refineries and pipelines that will provide data to identify violations.

Assembly Speaker Robert Rivas praised the passage of the bill package.

“We passed measures that will deliver real relief for families on electricity bills,” Rivas said in a statement. “We took action to stabilize gas supplies while keeping strong health and environmental protections in place. We extended California’s cap-and-invest program, the cornerstone of our climate strategy, balancing ambition with affordability.”

The package was denounced by Assemblymember and Minority Leader James Gallagher, a Yuba City Republican.

“Democrats have ended the year right where they began: with the highest cost-of-living in the nation,” Gallagher said in a statement. “They claim success, but the everyday Californian doesn’t feel it or see it. What have they actually done? What results have they achieved? All they’ve done is talk and hold feel-good press conferences. We’re still paying $5 a gallon at the pump, mortgage and rent costs keep climbing, and working families are falling further behind.”