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California Leaders Unveil Late-Session Climate–Energy Deal Extending Cap-and-Trade to 2045

Backers cast the rush package as a tool to cut bills during a turbulent energy transition.

Overview

  • The package includes AB 825, creating a pathway for California to participate in a Western regional electricity market that supporters say could lower costs, while critics warn of reduced state control over grid decisions.
  • SB 237 would allow statutory approval for up to 2,000 new oil wells per year in Kern County through 2036 and tighten offshore oversight by reaffirming Coastal Commission authority and requiring best available technology for petroleum pipelines.
  • SB 254 would bolster the state Wildfire Fund, including provisions allowing the administrator to request up to $3.9 billion in additional payments from participating utilities, drawing pushback from utility executives.
  • Cap-and-trade reauthorization to 2045 comes with funding shifts, including fixed continuous appropriations for housing and transportation, a new $250 million continuous allocation for AB 617 community air programs, and priority for High-Speed Rail if auction revenues fall short.
  • Bills were introduced or amended within the 72-hour print rule for imminent floor votes before the session deadline, with Newsom signaling support and environmental groups and some consumer advocates opposing the oil and market provisions.