🕒 Last updated on September 21, 2025
California has taken another big step in its fight against climate change. A new set of laws has been signed to both protect the environment and reduce costs for families.
A Package Balancing Clean Energy and Affordability
The package is designed to push the state toward a cleaner future while making sure electricity and fuel stay affordable.
The announcement was made in San Francisco, where leaders from labor, business, energy, and environmental groups gathered. Everyone agreed that the package was the result of compromise. The state needed to balance the demand for clean energy with the reality that people still depend on gasoline and affordable power.
California has been leading the way on cutting greenhouse gas pollution. Since the year 2000, emissions have gone down by about 20%. During the same time, the state’s economy has grown by 78%. Officials said this shows that it is possible to grow the economy while protecting the planet.
One of the central parts of the package is the extension of California’s cap-and-trade program, which is now being rebranded as cap-and-invest. This program puts a limit on how much pollution large companies can create. If a company pollutes less than its allowance, it can sell the unused part to another company. The money from these transactions funds state projects. With this new law, the program will continue until 2045.
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Through cap-and-invest, the state expects to raise as much as $60 billion by 2045. This money will be used to lower electricity costs for households and small businesses, especially during times when bills rise sharply. Other parts of the funding will go to big projects like the state’s high-speed rail system and improvements to public transportation.
Controversial Oil Drilling and Gasoline Rules
While many people supported the package, some parts sparked debate. One of the most discussed laws will allow oil and gas companies to drill up to 2,000 new wells per year in Kern County until 2036. Kern County is where most of California’s oil comes from. This law bypasses years of lawsuits that had blocked new drilling in the region.
Environmental groups have long pushed to limit new drilling because of the risks it poses to air, water, and climate. For them, this part of the package felt like a major compromise. Still, supporters argued that the measure was necessary to keep the oil industry stable while the state transitions toward cleaner energy sources.
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Another hot issue was a rule giving the governor the power to suspend California’s summer-blend fuel standards. These standards make gasoline burn cleaner and reduce pollution, but they also raise the cost at the pump. If gas prices spike for more than 30 days, or if officials believe a spike is likely, the governor can now pause those rules.
This change comes at a time when two major refineries are set to close in the Bay Area and Los Angeles County. These refineries account for about 20% of California’s fuel production. Officials explained that the new rule is meant to stabilize prices and avoid shortages when supply drops.
Even with these trade-offs, environmental groups said the package still represents progress. They pointed out that California continues to move forward with clean energy at a time when federal leaders have pulled back from similar efforts.
Expanding Energy Across State Lines
The climate package also includes new steps to make energy sharing easier across Western states. A law known as AB 825 lays the groundwork for California to join a regional electricity market. This would allow California to send extra solar power to neighboring states and bring in wind power from places like Wyoming and New Mexico.
By connecting electricity grids, states can share renewable energy more effectively. For California, this means less waste from extra solar energy and better access to wind energy during times when the sun is not shining. Supporters believe this step will improve reliability and help keep electricity costs lower.
State leaders described the package as a win for many groups. Households could see lower bills. Drivers may get protection from sudden fuel price spikes. Communities will benefit from cleaner air and better access to public transportation. Billions of dollars will also support long-term infrastructure like high-speed rail.
The laws cover a wide range of goals, from protecting the environment to keeping energy costs under control. For California, this package shows how the state is trying to balance its climate goals with the day-to-day needs of its people.