California's Recent Climate and Energy Legislation

California

Sep 14

Main Takeaway: California's new climate and energy laws will extend the state's cap-and-trade program, boost electric bill credits, expand regional electricity markets, and bring new investments and protections to energy consumers across the state—including significant relief for Lodi and San Joaquin County residents facing rising energy costs.

Major Climate and Energy Bills Passed

California lawmakers passed a comprehensive climate and energy package in September 2025 after last-minute negotiations between Governor Newsom and legislative leaders. This package includes several key bills with noteworthy regional impacts:

Bill	Key Provisions
AB 1207/SB 840: Cap-and-Trade Extension	Extends cap-and-trade to 2045, increases utility bill "Climate Credit", funds high-speed rail and affordable housing
AB 825: Regional Electricity Market	Allows California to join a multi-state electricity market, improving efficiency, lowering costs, and grid reliability
SB 237: Oil Production in Central Valley	Speeds up new oil well approvals in Kern County, restricts new offshore oil drilling
SB 254: Wildfire Fund & Grid Investment	Strengthens wildfire prevention and grid reliability projects

Direct Impacts on Lodi and San Joaquin County

Enhanced Climate Credits and Utility Bill Savings

Residents of Lodi will directly benefit from expanded Climate Credit payments—providing greater annual savings on their PG&E and Lodi Electric bills. As utility costs have risen by 47.4% for Lodi Electric and 99% for natural gas since 2020, these credits will offer significant relief.

Regional Electricity Market Benefits

Lower electric bills due to improved west-wide power market efficiency
Better grid reliability during heat and wildfire-prone months
Greater integration of local solar energy resources

San Joaquin Valley Clean Energy Opportunities

The region is poised for continued clean energy growth, leveraging its abundant solar and clean power potential and now, additional state funding.

Oil Production and Petrochemical Market Impacts

SB 237 mainly affects Kern County, but aims to stabilize regional gasoline and diesel supply by authorizing new oil wells, potentially reducing refinery supply shocks throughout Central Valley (including Lodi and Stockton)
May affect fuel prices and related jobs across the region

Timeline for Implementation

Period	Expected Effects
2025-2026	Enhanced Climate Credit on utility bills, first phase of regional market implementation
2026-2030	Full market participation; major energy savings; expanded clean energy funding
2030-2045	Long-term climate funding and deep renewable integration

Regional Climate Collaborative Context

San Joaquin County, including Lodi, is part of a funded regional climate collaborative and well-positioned to leverage new clean energy and resilience investments under the extended cap-and-invest program.

Summary of Key Local Benefits

Significant utility bill relief via larger climate credits
Ratepayer savings from regional electricity market integration
Sustained funding for clean energy and climate adaptation projects
Potentially more stable fuel supply—and transitional impacts—for the Central Valley

References

EnergySan Joaquin CountyLodi

Don Bradford