Gov. Newsom signs bills aimed at lowering electricity costs, stabilizing gas supply

Gov. Gavin Newsom on Friday signed a legislation package that aims to boost oil drilling, lower electricity costs for Californians, and extend California’s cap-and-trade greenhouse gas emissions program.

The most significant element of the package extends California’s cap-and-trade program, which has set a cost on carbon pollution since 2013. The system limits the amount of greenhouse gas that industries can release. Revenue generated supports a variety of state climate initiatives.

The program, which has remained largely unchanged, has drawn criticism from environmental advocates who argue that it allows oil and gas operations to continue polluting near low-income neighborhoods, according to CalMatters.

To address those concerns, Newsom also approved a measure establishing a state fund to track pollution-reduction efforts in disadvantaged communities.

California’s power grid is the focus of two other bills. One authorizes the creation of a Western regional energy market, allowing California to trade electricity more easily with neighboring states.

The other bill establishes a public financing system for new transmission lines, aiming to reduce infrastructure costs for customers. It also shields ratepayers from some utility wildfire expenses and injects $18 billion into the state’s wildfire fund, which compensates victims.

The fund will be replenished over the next decade through contributions from both shareholders and ratepayers.

The legislation package, which came together towards the end of the legislative session, aims to address affordability in the Golden State.