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 (SB 100). 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. However, federal challenges to climate policies this year such as the rollback of the Inflation Reduction Act, the withdrawal from the 2015 Paris Agreement, and attempts to reverse the U.S. Environmental Protection Agency’s “endangerment finding,” makes it increasingly important for California to build upon its foundation as a climate leader by enacting policies that both rapidly reduce emissions and promote affordability across the state.

In November 2024, voters approved Proposition 4, authorizing a $10 billion bond to spend on environmental and climate projects. As part of the 2025-26 state budget, the first $3.5 billion was allocated in October 2025, with $1.2 billion going to safe drinking water, flood, drought, and water resilience and $600 million for wildfire and forest resilience — particularly important to support communities most at risk of climate disasters. The Los Angeles fires in January were some of the most expensive climate-related disasters on record in the U.S. and the most costly wildfire in California’s history — causing over $70 billion in damages and killing 28 people. Given the rapidly growing size and scale of these disasters, the state must take a proactive role in building upon past climate investments to protect communities and limit future climate impacts. Created by AB 32 and initiated in 2012 in an effort to help meet California’s climate goals, the Cap and Trade program became California’s mechanism for reducing emissions while generating billions of dollars for climate programs that support clean energy, wildfire resilience, and community protections. AB 1207 and SB 840 were signed into law in October 2025 to reauthorize the Cap and Trade program through 2045 and allocate $3 billion of the Greenhouse Gas Reduction Fund each year for ongoing climate priorities. While there is still room for policy innovation in the clean energy and climate spaces, this funding will support the state in implementing climate policies that promote renewable energy 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, with the passage of H.R. 1 in May of 2025, much of the funding that was allocated for decarbonization, electric vehicle charging stations, local climate plan implementation, renewable energy and more has been frozen, if not revoked entirely. In light of this, California has the opportunity to be a global climate leader, influencing local, state, and foreign governments to implement innovative climate policies. 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.