All Roll Calls
Yes: 259 • No: 2
CaliforniaAB 12802025-2026 Regular SessionHouseWALLET
Energy.
Sponsored By: Robert Garcia (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 4 benefits, 0 costs, 3 mixed.
Financing for clean power lines with labor agreements
The bank can finance clean energy transmission projects that meet strict rules. Projects must tie into a California balancing authority, mainly deliver to the California ISO from constrained resource areas, and support 200 kV or higher lines or upgrades. Preference goes to projects not already approved or recently found unneeded. The bank cannot finance a project unless the builder signs a project labor agreement with prevailing wages, targeted hiring, and strong apprenticeship use.
Lower fees and help for disadvantaged applicants
The bank can cut interest or fees and lower application costs for disadvantaged sponsors and participants. It can also provide technical help and outreach, using service contracts to deliver support. These outreach and service contracts are exempt from some state purchasing rules. This makes it easier and cheaper for under‑resourced groups to apply.
How the state climate fund works
The state bank runs a Climate Catalyst Revolving Fund to finance clean projects. The board must adopt a financing plan for each category, after meeting with the consulting agencies. The plan is posted online at least 30 days before the board vote and all deals must follow the plan’s rules. The bank can partner with other state agencies and must keep separate accounts, including one for clean transmission. Only projects the board approves before December 31, 2031 can get this help.
Use federal green bank funds in California
The bank creates categories to tap federal and state energy financing. One category coordinates with the federal Greenhouse Gas Reduction Fund and related programs. Projects must meet California’s climate and equity goals and will be coordinated by several state agencies. Another category supports emissions‑reducing projects through the State Energy Financing Institution.
Incentives for long-duration energy storage
The Energy Commission runs a Long‑Duration Energy Storage Program with incentives for systems at least 1 MW that discharge 8 hours. Eligible tech includes flow and advanced batteries, thermal storage, and a hydrogen demo; pumped storage and lithium‑ion are excluded. Projects that boost grid reliability, cut pollution, and are online by 2028 get priority. Storage must be connected to the California grid or a California balancing authority. For applications received after January 1, 2027, projects with construction work only qualify if built under a project labor agreement. The law also creates an Industrial Facilities Thermal Energy Storage subprogram.
Industrial decarbonization incentives and safeguards
The Energy Commission offers incentives to industrial facilities for projects that help the grid and cut greenhouse gases and other pollution. Eligible facilities include sectors like chemicals, metals, food, cement, glass, electronics, and pharma; projects include electrifying heat, storage (including thermal), efficiency, and certain carbon‑use tech. The Commission prioritizes grid benefits during net peak, big emission cuts, and benefits in under‑resourced or nonattainment areas, and limits any single recipient to 20% of funds. It may require recipients to surrender free CARB allowances equal to their emission cuts, and it bars projects that help oil or fossil gas production or carbon used for enhanced oil recovery. For applications received after January 1, 2027, projects must use a project labor agreement, go beyond best available control technology where applicable, remediate past air‑permit harms if violated, and include a community benefit fund or agreement. The bank also prioritizes industrial decarbonization projects that cut emissions at specific facilities after January 1, 2027, and some bank‑side industrial rules start only after the Legislature funds them.
Clean energy upgrades for farms and forests
The bank can finance forest and farm projects that cut emissions and support vegetation management. Forestry projects can include clean energy, advanced building materials, and equipment, but not combustion biomass conversion. Farm projects can include on‑farm renewables, efficiency, storage, microgrids, and equipment swaps. Dairy digesters and offsite biogas are excluded unless used on site.
Sponsors & Cosponsors
Sponsor
Robert Garcia
Democratic • House
Cosponsors
Rick Chavez Zbur
Democratic • House
Roll Call Votes
House vote • 9/10/2025
Item 278 — Assembly AFLOOR
Yes: 71 • No: 1
Senate vote • 9/9/2025
Item 364 — Senate SFLOOR
Yes: 37 • No: 0
legislature vote • 8/29/2025
Vote in CS61
Yes: 5 • No: 0
legislature vote • 8/18/2025
Vote in CS61
Yes: 7 • No: 0
legislature vote • 7/15/2025
Vote in CS71
Yes: 13 • No: 0
legislature vote • 7/7/2025
Vote in CS42
Yes: 10 • No: 0
House vote • 6/4/2025
Item 55 — Assembly AFLOOR
Yes: 72 • No: 1
legislature vote • 5/23/2025
Vote in CX25
Yes: 14 • No: 0
legislature vote • 4/28/2025
Vote in CX16
Yes: 13 • No: 0
legislature vote • 4/2/2025
Vote in CX23
Yes: 17 • No: 0
Actions Timeline
Chaptered by Secretary of State - Chapter 395, Statutes of 2025.
10/6/2025SenateApproved by the Governor.
10/6/2025legislatureEnrolled and presented to the Governor at 3 p.m.
9/22/2025legislatureSenate amendments concurred in. To Engrossing and Enrolling. (Ayes 71. Noes 1. Page 3240.).
9/10/2025HouseIn Assembly. Concurrence in Senate amendments pending.
9/9/2025HouseRead third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 2704.).
9/9/2025SenateRead second time. Ordered to third reading.
9/8/2025SenateRead third time and amended. Ordered to second reading.
9/5/2025SenateRead second time. Ordered to third reading.
8/29/2025SenateFrom committee: Do pass. (Ayes 5. Noes 0.) (August 29).
8/29/2025SenateIn committee: Referred to suspense file.
8/18/2025SenateRead second time and amended. Re-referred to Com. on APPR.
7/17/2025SenateFrom committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (July 15).
7/16/2025SenateFrom committee: Do pass and re-refer to Com. on E., U & C. (Ayes 10. Noes 0.) (July 7). Re-referred to Com. on E., U & C.
7/7/2025SenateReferred to Coms. on B. P. & E.D. and E., U & C.
6/18/2025SenateIn Senate. Read first time. To Com. on RLS. for assignment.
6/5/2025SenateRead third time. Passed. Ordered to the Senate. (Ayes 72. Noes 1. Page 2061.)
6/4/2025HouseRead third time and amended. Ordered to third reading. (Page 1953.)
6/2/2025HouseRead second time. Ordered to third reading.
5/27/2025HouseFrom committee: Do pass. (Ayes 14. Noes 0.) (May 23).
5/23/2025HouseIn committee: Set, first hearing. Referred to APPR. suspense file.
5/14/2025HouseFrom committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (April 28). Re-referred to Com. on APPR.
4/29/2025HouseFrom committee: Do pass and re-refer to Com. on NAT. RES. (Ayes 17. Noes 0.) (April 2). Re-referred to Com. on NAT. RES.
4/3/2025HouseCoauthors revised.
4/3/2025HouseRe-referred to Com. on U. & E.
3/26/2025House
Bill Text
Chaptered
10/6/2025
Enrolled
9/12/2025
Amended Senate
9/5/2025
Amended Senate
7/17/2025
Amended Assembly
6/2/2025
Amended Assembly
3/25/2025
Introduced
2/21/2025