Newsom Signs Improved Cap-and-Invest Program, New Energy Affordability Initiatives into Law

SACRAMENTO, Calif. (September 18, 2025)-Governor Newsom signed three new bills into law today that will reduce energy costs across California while continuing to invest in the state's clean energy future. The package includes reauthorizing and updating the state's Cap-and-Invest program to directly reduce the price of electricity for consumers, establishing independent governance of Western energy markets to improve regional coordination and creating public financing mechanisms for long range transmission projects.

Below is a statement by Daniel Barad, Western states senior policy manager at the Union of Concerned Scientists (UCS).

"Today, Governor Newsom affirmed California's indelible commitment to improving energy affordability while bolstering the state's clean energy future. These forward-thinking initiatives will anchor lower energy prices now and for decades to come.

"Building long range transmission infrastructure at lower cost is essential to meeting California's rising energy demand affordably. Public financing can boost the state's transmission buildout, allowing for greater clean energy generation and the ability to move electricity efficiently and reliably to where Californians need it. Improving coordination across Western energy markets also creates a cleaner, more efficient, more reliable grid. The more reliable and efficient California's electricity grid is, the cheaper electricity can be.

"Cap-and-Invest is California's flagship climate program and has generated billions of dollars that have been reinvested in California communities and the clean energy transition. Updating how the climate credits are allocated to lower electricity rates and incentivize broader electrification isn't just common sense, it's a lifeline for people struggling with the rising costs of living."

Additional UCS Resources:

• Report on delays California experiences trying to build long range transmission
• Policy brief on Western grid regionalization
• Blog post on bottlenecks California power generators face bringing new projects online
• Blog post on California clean energy permitting
• Blog post on state transmission authorities