Policy Developments
California has long been a leader in innovative energy and climate policies—from the creation of the Los Angeles Air Pollution Control District in 1947 to the passage of the state’s landmark Global Warming Solutions Act (AB 32) in 2006 and the 2018 commitment to transition to 100 percent clean energy sources by 2045 (SB100). The state has led the way as an early adopter of a clean energy future, implementing policies to reduce pollution, improve energy efficiency, and incentivize clean energy and clean technology innovation that have been replicated in both other states and nations. To meet its climate goals in 2030 and beyond, California will need to build upon this foundation with policies that tackle harder-to-reach emissions reductions, including those from the transportation sector and buildings.
Despite a budget deficit in 2023 and 2024, where climate was cut in multiple areas, voters approved Proposition 4, authorizing a $10 billion bond to spend on environmental and climate projects, with the biggest chunk, $1.9 billion, for drinking water improvements. One of the most pressing challenges worldwide is growing electricity and water demand as a result of the rapid deployment of data centers to power AI. Even though new renewable resources are rapidly coming online, the faster growth in energy use by these centers will drive natural gas consumption and threaten our ability to meet our climate goals. This challenge was discussed at COP29, held in Azerbaijan this year, and will continue to be an issue in the coming years. In California, there is still room for policy innovation in the clean energy and climate spaces, but some recent developments hold promise, such as new planned offshore wind generation, clean vehicle infrastructure expansion and investment, and climate resiliency.
The Inflation Reduction Act was historic and dedicated more money to climate action at the national level than ever before. However, as the federal landscape begins to change with the incoming Trump administration, states like California are going to have to maintain forward progress on climate. As we look ahead to prospects of policies that help strengthen our economy while protecting our environment, it is worth highlighting how far the state and nation has come. The policies in the subsequent timeline reflect decades of collaboration and innovation to address climate and pollution concerns while simultaneously developing one of the world’s largest economies.
Highlights
Key
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Air & Environment
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Energy Efficiency
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Clean Transportation
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Renewable Energy
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Climate
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1st in U.S.
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United States Policy
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SEPTEMBER 2024
California passed a collection of bills were passed in both the State Senate and Assembly that expand and extend CEQA exemptions to include; projects that conserve, restore, protect, or enhance, and assist in the recovery of California native fish and wildlife, routine maintenance of public stormwater facilities that are fully concrete, certain transportation-related projects that increase zero-emission trains on passenger rail services, junior accessory dwelling units in single-family residential zones, residential or mixed-use housing projects located in unincorporated areas of a county, services for people experiencing homelessness, and university housing development project carried out by a public university that are LEED Platinum or better and located on a site identified for housing in the most recent long-range development plan. (SB 174, SB 312, SB 1361, AB 3057, AB 3227, AB 2503, AB 2199).
California passed legislation, revising a current law, that effectively outlaws the sale of all plastic carryout bags to customers. Previously law prohibited the sale of single-use plastic carryout bags, which leg to thicker, 'reusable' plastic bags to be sold, leading to an increase in plastic waste.
California passed legislation that requires the State Air Resources Board - the agency responsible for monitoring and regulating sources emitting greenhouse gases under the California Global Warming Solutions Act of 2006 - to include a discussion of industrial sources of emissions of greenhouse gases for which there are zero-emission alternatives currently technologically available and a discussion of industrial sources of emissions of greenhouse gases for which there are no zero-emission alternatives currently technologically available in its next scoping plan.
California passed legislation requiring GO-Biz to develop model permitting checklists, model zoning ordinances, and best practices for permit costs and permit review timelines to help local governments permit curbside charging stations as part of the office’s development of the Electric Vehicle Charging Station Permitting Guidebook or any subsequent updates.
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SEPTEMBER 2024
California passed legislation that would increase the fees for idle oil and gas wells, and additionally impose fees for each idle well that has been idle for less than 3 years in an effort to decrease the amount of idle oil and gas wells across the state.
California passed legialtion that requires each transmission utility to prepare a study of the feasibility of using grid-enhancing technologies to achieve increased capacity for new renewable energy and zero-carbon resources, and a study of which of its transmission lines can be reconductored with advanced conductors to achieve an increased capacity to connect new renewable energy and zero-carbon resources.
California passed legislation that will require Caltrans to consider the needs of people riding bikes, walking, and taking transit on our state roadways, many of which serve as local streets, encouraging what is known as 'complete streets'.
California passed legislation that authorizes the City of Long Beach to procure contracts relating to the offshore wind terminal development project at the Port of Long Beach, known as Pier Wind, and to enter into an alternative project delivery method contract for that purpose
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SEPTEMBER 2024
California passed legislation that authorizes the State Energy Commission, in consultation with the state board and the Public Utilities Commission, to require any weight class of battery electric vehicle to be bidirectional capable, making it possible for electric vehicles to become “batteries on wheels” — capable of using the energy stored in their batteries to back up the power grid, homes, and businesses.
California passed legislation making important changes to California's historic Climate Corporate Data Accountability Act (SB 253) and the Climate‐Related Financial Risk Act (SB 261) enacted last year as part of California's Climate Accountability Package. As originally enacted, SB 253 mandated that CARB adopt implementing regulations on or before January 1, 2025, SB 219 amends the bills to extend the deadline for CARB to adopt implementing regulations to July 1, 2025.
California passed legislation that seeks to streamline the California Department of Forestry and Fire Protection’s (CAL FIRE) contracting and procurement process for beneficial fire in order to cut back potential fire fuels and restore the health of our forests and grasslands.
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OCTOBER 2024
California is launching the first of two federally-funded Inflation Reduction Act (IRA) Residential Energy Rebate Programs - the Home Electrification and Appliance Rebates (HEAR or HEEHRA in California), which will provide $80 million for low- and moderate-income (LMI) households to retrofit their homes with efficient electrification projects.
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NOVEMBER 2024
California Voters passed the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 which authorizes $10 billion in debt to spend on environmental and climate projects, with the biggest chunk, $1.9 billion, for drinking water improvements.