"After weeks of tense and messy negotiations, California’s legislative leaders finally released several proposals that range from expanding domestic crude oil production to lowering electricity rates. But the biggest barrier was the reauthorization of the state’s cap and trade program."
"California legislative leaders in the wee hours of Wednesday morning reached an agreement with Gov. Gavin Newsom to extend the state’s greenhouse gas emissions reduction program, known as cap and trade, through 2045 — a contentious expansion that for weeks stewed in backroom discussions, held up other critical legislation and roiled insiders.
Democratic leaders in the Assembly and Senate also struck compromises on bills to increase domestic oil production in California through new drilling permits and rehabilitating a defunct offshore pipeline; establish a state fund to monitor pollution mitigation in disadvantaged communities; re-up the state’s wildfire liability fund by $18 billion; and join neighboring states’ utilities to create a shared electricity market to sell California’s excess clean power.
The mountain of deals comes after a chaotic scramble of last-minute closed-door negotiations among Newsom, Assembly Speaker Robert Rivas and Senate President Pro Tem Mike McGuire, which frustrated lobbyists and angered rank-and-file members, some of whom said they felt iced out of the conversations."
Maya C. Miller, Alejandro Lazo and Jeanne Kuang report for CalMatters September 10, 2025.
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