USA – CALIFORNIA Trends and Developments Contributed by: Nora Sheriff and Samir Hafez, Buchalter
Buchalter 425 Market Street Suite 2900 San Francisco CA 94105 USA
Tel: +1 (415) 227 0900 Fax: +1 (415) 227 0770 Email: nsheriff@buchalter.com Web: www.buchalter.com
As a state that seeks to lead the nation in for - ward-thinking climate and energy reform, Cali - fornia has long struggled to match its aspirational policy goals with the practical realities of every - day life. 2025 will be an especially pivotal year for the state’s efforts to close this gap through its administrative and public law policies and legis - lation. Several self-imposed deadlines loom on the horizon, while Californians face record-high utility rates which may lead to a backlash against the state’s policies, and as a disastrous series of wildfires both compel continued pursuit of those policies and cast a harsh national spotlight on California’s failing infrastructure. Compounding these challenges, the new federal administration stands largely opposed to the state’s ambitious efforts. An Influx Point for California’s Climate and Carbon-Neutrality Plans California legislation requires the state to reduce anthropogenic greenhouse gas (GHG) emissions to 40% below 1990 levels by 2030, 85% below 1990 levels by 2045, and to reach carbon neu - trality by 2045. The Legislature relies on state agencies, including the California Air Resources Board (CARB), the California Energy Commis - sion (CEC), and the California Public Utilities
Commission (CPUC), to translate these goals into actionable programmes and regulations. CARB’s role includes setting emissions targets and designing cap-and-trade programmes, while the CEC advances energy efficiency, inno - vation, and renewable energy development. The CPUC regulates the state’s energy utilities and oversees efforts to facilitate the energy transi - tion while maintaining a safe, reliable, and afford - able service. While the state has made progress toward its self-imposed deadlines, lawmakers and regulators face several critical obstacles to achieving these ambitious goals. The 2025-2026 state legislative session began on 2 December 2024 with more than 30 new members in the two chambers, many of whom have little familiarity with these issues. Among myriad energy- and climate-related bills intro - duced for the two-year session, key legislative priorities include reauthorising the Cap-and- Trade Program, passing legislation intended to optimise energy markets, and addressing the energy affordability crisis. The CARB-administered Cap-and-Trade Pro - gram is a market-based compliance mechanism
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