Last Updated on September 13, 2025 by The HD Post Staff

CALIFORNIA – The California Legislature has approved AB 1207, a measure that extends the state’s Cap-and-Invest climate program through 2045 while providing greater relief on household utility bills. 

The bill now heads to Governor Gavin Newsom for his signature. If signed, the changes would take effect immediately.

California’s Cap-and-Invest program requires companies that pollute to buy “allowances” while gradually cutting the total allowed emissions each year.

Revenue raised from these allowances funds climate projects and provides bill credits to consumers.

Under AB 1207, electricity customers can receive the climate credit in up to four of the highest-billed months each year, or during extraordinary rate spikes. 

Lawmakers say this ensures credits are more visible and impactful, giving Californians relief when energy costs peak.

Bill co-author assemblymember Robert Rivas said Cap and Invest is estimated to return $3 billion in climate credits every year to Californians on their utility bills, with higher rebates expected each year.

Legislature passes package to address climate, energy, and utility priorities

AB 1207 was part of a six-bill package passed to address California’s climate, energy, and utility priorities.

Beginning in 2026, SB 840 allocates $1 billion annually for high-speed rail, $1 billion for lawmakers to direct through the budget, and maintains funding for housing, transit, clean-air programs, wildfire prevention, and safe drinking water.

AB 825 updates energy rules for California’s transition to a Western power market, ensuring reliability while maintaining renewable-energy standards.

SB 254 establishes low-interest financing for new transmission lines, and bars utilities from profiting on the next $6 billion spent on wildfire-safety upgrades.

It also adds $18 billion to the state’s wildfire fund to ensure victims of utility-caused fires are paid promptly, with costs split between shareholders and ratepayers of the three major investor-owned utilities.

SB 237 allows continued Kern County oil production with stricter pipeline safety measures, and SB 352 expands real-time air monitoring networks around refineries, pipelines, and major polluters to protect public health.

Rivas said these measures are estimated to create 287,000 jobs through 2045. 

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