SUSTAINABILITY COMMITTEE
Meeting Date: March 9, 2026
Subject: RECEIVE REPORT on new State legislation related to Climate Action and Adaptation Plan, and PROVIDE DIRECTION
Submitted For: John Kopchik || Director | DCD
Department: DEPARTMENT OF CONSERVATION & DEVELOPMENT
Presenter: Jody London || Sustainability Coordinator | DCD
Contact: Jody London | (925) 655-2815
Referral History:
The Sustainability Committee oversees implementation of Contra Costa County’s Climate Action and Adaptation Plan (CAAP). The CAAP is the County’s plan for helping California achieve its ambitious goals for reducing pollution and addressing the impacts of our warming planet. As part of its oversight of the CAAP, the Sustainability Committee has requested an update on legislation passed in 2025 that could affect the County’s implementation of the CAAP.
Referral Update:
Staff have compiled the summary below of 2025 state legislation that potentially affects several CAAP strategies:
• Clean and Efficient Built Environment
• Resilient Communities and Natural Infrastructure
• Climate Equity
• Implementation
This summary is based on information maintained by the California Climate and Energy Collaborative and focuses on the most relevant bills.
Overview
In 2025, as in most years, there were a large number of bills that address electric and gas utilities and the built environment. AB 130, the budget trailer bill, included provisions from AB 306 that limit the authority of local government to exceed the State building code until June 1, 2031. This provision was concerning to many local governments that were planning to adopt “reach codes” to achieve compliance with local climate action plans. The bill includes an exemption for local governments that, like Contra Costa County, had adopted these more ambitious codes prior to September 30, 2025.
AB-546, which would have required health insurers to cover one portable high-efficiency particulate air (HEPA) filter for qualified individuals, was vetoed.
Other bills strengthen the clean energy transition by supporting regional electricity transmission coordination (AB-825), creating tax credits and financing tools for transmission and clean-energy projects (SB-254), and extending sales and use tax exclusions for projects reducing greenhouse gas emissions and energy use (SB-86). New requirements also expand state-supported all-electric retrofit programs to industrial applications (AB-1280) and mandate that local general plans include strategies for all-electric transition. Additional passed bills improve accountability and oversight of utility rates to not include lobbying costs (AB-1167 and AB-1017) and require studies on grid reliability and future data center electricity demand (SB-57 and SB-593).
New funding through the East Bay Hills Conservation Program can support wildfire mitigation, restoration efforts, and expanded park access (SB-392).
Lastly, local jurisdictions will be required to make high-density housing development more feasible along established transit corridors (SB-79).
Clean and Efficient Built Environment
• AB-39 (Zbur) - Local Electrification Planning Act
o Requires cities and counties to incorporate electrification planning into long-term land use policy at the General Plan level.
• AB-306 (Schultz)
o Limits authority for local amendments to the state building code.
o Updates energy performance baselines higher than the County’s previous reach codes. Increases standards for energy efficiency, electrification, and low-carbon materials in new construction.
o While not adopted, elements of this bill were included in a budget trailer bill.
• AB-825 (Petrie-Norris)
o Supports California Independent System Operator participation in flexible regional transmission organizations that could improve transmission capacity, integrate more renewable energy, improve grid stability, and reduce electricity costs.
§ Potential negative: regionalization could allow out-of-state fossil fuel resources greater access to California’s energy market.
• AB-1017 (Boerner)
o Authorizes CPUC to fix the rates and charges for public utilities and requires the rates and charges to be just and reasonable. Corporations must provide authorized and actual rate of return and return on equity for the past 10 years.
§ Could help prevent rate structures that penalize electric end-uses (heat pumps, EV charging, etc.)
• AB-1167 (Addis, Berman)
o May reduce utility bills for households and businesses by preventing utilities from over-allocating political/lobbying costs into rates.
• AB-1280 (Garcia)
o Expands state-supported all-electric replacement programs to include industrial facilities, prioritizing investments in under-resourced and high-pollution communities.
• SB-57 (Padilla)
o Requires the CPUC to formally study and report on data centers’ future electricity needs and impacts.
• SB-86 (McNerney) - California Alternative Energy and Advanced Transportation Financing Authority Act
o Extends sales and use tax exclusion (STE) to continue through Jan 1, 2028 for eligible projects that reduce GHG emissions, reduce air/water pollution, support advanced manufacturing, support CA-based clean energy jobs, and reduce energy consumption.
o Adds nuclear fusion electrical generation facilities as eligible STE projects.
• SB-254 (Becker)
o Offers tax credits (20%) for qualified transmission project expenditures.
o Creates a Transmission Infrastructure Accelerator, including a revolving fund and I-Bank authority to fast-track eligible transmission projects.
• SB-283 (Laird)
o Requires applicants for energy storage systems >200 MWh to coordinate with local fire authorities and obtain inspection by said authorities prior to operation.
• SB-593 (Hurtado)
o Requires the CPUC to conduct studies of significant voltage-related incidents on utility systems to inform regulatory actions, reliability standards, and future grid-planning activities.
Resilient Communities and Natural Infrastructure
• AB-306 (Schultz)
o Increases home-hardening standards for wildfire resilience.
• SB-254 (Becker)
o Creates Wildfire Fund continuation mechanisms and bond authorities. Adjusts catastrophic wildfire cost recovery and financing order use.
• SB-392 (Grayson) - East Bay Hills Conservation Program
o Funding could support wetland and shoreline restoration, wildfire fuel reduction, and large-scale tree planting in East Bay parks and adjacent communities.
Climate Equity
• AB-564 (Caloza) - Vetoed, not signed into law
o Would have required a large group of health insurers to cover one portable high-efficiency particulate air (HEPA) filter for qualifying individuals that are pregnant or have asthma living in high pollution areas, with costs not to exceed $500 for the filter.
• AB-1017 (Boerner)
o Intended to improve transparency in electricity/gas rate increases.
• AB-1167 (Addis, Berman)
o May reduce utility bills for households and businesses by preventing utilities from over-allocating political/lobbying costs into rates.
• AB-1280 (Garcia)
o Expands state-supported all-electric replacement programs to include industrial facilities, prioritizing investments in under-resourced and high-pollution communities.
• SB-392 (Grayson) - East Bay Hills Conservation Program
o Authorizes East Bay Regional Park District to establish and administer the East Bay Hills Conservation Program to align funding with work to expand park access and trail connectivity.
Implementation
• AB-39 (Zbur) - Local Electrification Planning Act
o Requires local General Plans to include strategies to expand opportunities to expand zero-emission charging infrastructure and other investments in zero-emission technologies, with a focus on impacted communities, low-income households, and small businesses.
• SB-79 (Wiener) - Housing development: transit-oriented development.
o SB-79 facilitates high-density housing development along established transit corridors, promoting public transit use to reduce vehicle miles travelled and greenhouse gas emissions.
• SB-254 (Becker)
o Creates new financing instruments (I-Bank, Accelerator revolving fund, bond authorities) and tax credits for clean energy projects.
• SB-283 (Laird)
o Requires applicants for industrial-scale energy storage systems greater than 200 MWh to coordinate with local fire authorities and obtain inspection by said authorities prior to operation.
o Permitting workflows will be updated to incorporate fire-authority consultation for qualifying energy storage systems.
Recommendation(s)/Next Step(s):
RECEIVE REPORT on new State legislation related to Climate Action and Adaptation Plan, and PROVIDE DIRECTION.
Fiscal Impact (if any):
There are different fiscal impacts associated with each bill. Because this is an overview report, staff have not analyzed the specific fiscal impacts of each bill.