CaliforniaSB 1272025-2026 Regular SessionSenateWALLET

Budget Act of 2025.

Sponsored By: Sponsor information unavailable

Signed by Governor

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

8 provisions identified: 4 benefits, 1 costs, 3 mixed.

Higher certification fees for energy and engines

Applicants for energy facility certification must pay a nonrefundable $750,000 deposit and cover any extra processing costs. Certified facility owners pay $70,000 each year, with both amounts indexed annually; payments go to a new Energy Facility License and Compliance Fund. Petitions to amend a certified project require a $5,000 fee plus any additional processing costs; transfers of ownership or control are excluded. The state board may also charge annual or application/certification fees for on‑road and off‑road engines, equipment, and parts, indexed by the California Consumer Price Index; these fees go to the Certification and Compliance Fund.

Power reliability funding, with limits and waivers

The department can build, buy, operate, or finance resources to keep the grid reliable and run programs like backup assets and demand‑side support. The law provides $200 million for demand‑side grid support, spendable through June 30, 2026 (liquidation through June 30, 2030). Some past contracts and approvals under this division bypass competitive bidding and CEQA; the bidding exemption ends December 1, 2026 and does not cover deals that fail to help grid reliability by October 31, 2027. Department fossil‑fuel plants may run only during extreme events, and new diesel generators of 5 MW or more cannot be operated after July 31, 2023.

More truck vouchers for small fleets

The law sets aside $132.175 million for Hybrid and Zero‑Emission Truck and Bus vouchers for the 2025–26 fiscal year, if Hino settlement funds are available. The money targets medium‑ and heavy‑duty vehicles and aims to help small businesses and disadvantaged communities. Up to 5% may be used for administration. Funds can be spent through June 30, 2027 and liquidated through June 30, 2029.

More flexible energy grants and financing

The commission funds only listed clean‑energy project types, like zero‑emission fuels, vehicles, charging, and workforce training. It can award some funds without competition, with 60‑day notice to the Legislature, and can give follow‑on EPIC grants through January 1, 2028, up to the project’s last competitive award. It sets state intellectual‑property and royalty terms in consultation with the State Treasurer, and recipients must agree. It can partner with the State Treasurer and small‑business lenders and make advance payments to public entities and program administrators.

More Clean Cars help, tighter outreach rules

The law keeps Clean Cars 4 All money flowing to each district and lets the state use several funds to expand the program when lawmakers appropriate money. If a district runs short, the state board must move funds so service continues. The board must use set measures to divide money and publish a yearly report starting January 1, 2023. Outreach spending is capped at 10%. Districts that spend more than 5% on outreach must explain how it helps underserved households and report outcomes.

Raises for certain state board chairs

In years when state employees get a general raise, listed board chairpersons and the Industrial Accidents director get a comparable increase. The Energy Commission chair also gets an extra 5% raise in the 2025–26, 2026–27, and 2027–28 fiscal years. The 5% boost applies only in those three years.

More workforce training coordination

The commission works with state workforce agencies to deliver the program’s training and job services. Partners include the Workforce Development Board, Employment Training Panel, Employment Development Department, and Apprenticeship Standards. This improves coordination but does not provide direct cash benefits.

New reporting and scoring for hydrogen and EV

When federal clean‑hydrogen rules take effect, the commission gives higher scores to projects with lower carbon‑intensity hydrogen. Hydrogen station grantees must report fuel source and carbon intensity using the Low Carbon Fuel Standard method. EV charging grantees must report the electricity source and meter‑level greenhouse gas intensity. All funded stations must track uptime and usage daily and send electronic reports at least quarterly.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 115 • No: 38

House vote 6/27/2025

Item 1000 — Assembly AFLOOR

Yes: 58 • No: 19

Senate vote 6/27/2025

Item 131 — Senate SFLOOR

Yes: 29 • No: 9

Senate vote 3/20/2025

Item 61 — Senate SFLOOR

Yes: 28 • No: 10

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 15, Statutes of 2025.

    6/27/2025Senate
  2. Approved by the Governor.

    6/27/2025legislature
  3. Enrolled and presented to the Governor at 3 p.m.

    6/27/2025legislature
  4. Assembly amendments concurred in. (Ayes 29. Noes 9. Page 1814.) Ordered to engrossing and enrolling.

    6/27/2025Senate
  5. In Senate. Concurrence in Assembly amendments pending.

    6/27/2025Senate
  6. Withdrawn from committee pursuant to Assembly Rule 96.

    6/27/2025House
  7. Ordered to third reading.

    6/27/2025House
  8. Read third time. Passed. (Ayes 58. Noes 19. Page 2322.) Ordered to the Senate.

    6/27/2025House
  9. Assembly Rule 63 suspended. (Ayes 55. Noes 19. Page 2316.)

    6/27/2025House
  10. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

    6/24/2025House
  11. Referred to Com. on BUDGET.

    3/24/2025House
  12. In Assembly. Read first time. Held at Desk.

    3/20/2025House
  13. Read third time. Passed. (Ayes 28. Noes 10. Page 439.) Ordered to the Assembly.

    3/20/2025Senate
  14. Read second time. Ordered to third reading.

    3/18/2025Senate
  15. Ordered to second reading.

    3/17/2025Senate
  16. Withdrawn from committee. (Ayes 27. Noes 10. Page 384.)

    3/17/2025Senate
  17. Referred to Com. on B. & F. R.

    2/5/2025Senate
  18. From printer. May be acted upon on or after February 23.

    1/24/2025Senate
  19. Introduced. Read first time. To Com. on RLS. for assignment. To print.

    1/23/2025Senate

Bill Text

  • Chaptered

    6/27/2025

  • Enrolled

    6/27/2025

  • Amended Assembly

    6/24/2025

  • Introduced

    1/23/2025

Related Bills

Back to State Legislation