California Gov. Newsom Signs Groundbreaking Climate Bills into Law

California Gov. Gavin Newsom signed a number of high-profile climate-related bills over the last several weeks following the end of the state’s legislative session in September.

The governor and Democrat legislators continue to put California at the forefront of climate action on multiple fronts. Newly enacted laws address corporate climate accountability, provide incentives for investing in offshore wind power, strengthen protections against offshore drilling, and codify the state’s goal of preserving 30 percent of California’s land and coastal waters by the end of the decade.

What follows are brief summaries of some of the most ambitious and impactful new laws related to climate change Gov. Newsom signed into law this past month.

Big News on Corporate Climate Accountability: SB 253 & SB 261

The biggest environmental news to come out of California this legislative session is that Gov. Newsom signed two “first-in-the-nation” climate bills. 

Senate Bill 253, the Climate Corporate Data Accountability Act, introduced by state Sen. Scott Wiener (D-San Francisco), requires companies with more than $1 billion in annual revenue that do business in the state to publicly disclose their annual carbon emissions. 

In his bill signing message, Newsom called SB 253 an important policy that “demonstrates California's continued leadership with bold responses to the climate crisis, turning information transparency into climate action.”

Although other states require companies that are “major emitters” to disclose their direct emissions, the new California rules go much further on reporting requirements for direct and indirect emissions. And, while proposed federal rules would require major public companies to report their emissions, California’s law applies to both public and private companies.

Under Wiener’s bill, the California Air Resources Board must adopt regulations by 2025 mandating companies begin disclosing their emissions across three “scopes” in 2026. Scope 3 disclosures covering indirect emissions via company supply chains start the following year. The “scopes” are based on a framework created by the World Resources Institute (WRI) and World Business Council for Sustainable Development with the goal of creating “a universal method for companies to measure and report the emissions associated with their business.”

In addition, Newsom signed Senate Bill 261, the Climate-Related Financial Risk Act, authored by Sen. Henry Stern (D-Sherman Oaks). The new law requires corporations with annual revenue above $500 million that operate in California to disclose their climate-related financial risks, and what measures they are putting in place to mitigate those risks, every two years beginning in 2026.

Climate-related risk includes physical risks from extreme weather such as damage to buildings or supply chain disruptions. It also includes transition risks that may impact the company as the economy shifts to “a lower-carbon energy supply,” and regulatory risks from new climate laws or regulations that affect a company’s operations.

According to the Los Angeles Times, reporting requirements under SB 253 will “apply to an estimated 5,400 companies, including Walmart, Apple, ExxonMobil and Chevron.” SB 261 reporting requirements will apply to over 10,000 companies.

Protecting California’s Coastline

Gov. Newsom signed Senate Bill 704 into law to protect California’s coastline by raising the bar for proposed oil and gas developments to get approved.

The new law will amend the California Coastal Act to remove provisions “favoring approval for oil and gas developments along the coast — regardless of whether those proposed developments meet state resource protection policies.”

That means proposals for new oil and gas developments such as refineries and petrochemical facilities, or plans to expand existing ones, will have to overcome increased oversight before a permit is granted. The bill’s author, state Senator Dave Min (D-Irvine), explained that the bill “ends the outdated 1970s-era exemption from Coastal Act review for new oil and gas development.”

Environmental advocates celebrated the passage of the bill as an important step to protecting the coast from potential oil spills and the climate impacts of fossil fuel production.

Major Incentives for Investing in Wind Power

Assembly Bill 1373 is Gov. Newsom’s legislative package to bolster efforts to build California’s first offshore wind farms by allowing the state to sign long-term contracts to buy electricity.

In a press release announcing a deal the governor reached with legislators, Newsom said the bill was “a critical step” to building more clean energy to achieve the state’s 100 percent clean electricity goal. 

“We’ve set some of the most ambitious clean energy goals in the nation to break the vicious cycle of climate change-caused energy emergencies — we need every tool at our disposal to achieve them,” Newsom said.

The new law aims to provide incentives and assurance to offshore wind developers.

“The challenge for offshore wind developers is that it doesn’t make economic sense to build just a handful of costly floating wind turbines — big projects are the only logical investment,” writes Los Angeles Times climate columnist Sammy Roth. “And there haven’t been any utility companies or local governments able to step forward and sign a large enough contract to give developers the financial certainty they need to start construction.”

AB 1373, introduced by Asm. Eduardo Garcia (D-Coachella), will allow the state to step-in as “a central buyer” and sign the substantial contracts necessary to provide developers incentives to make major investments in wind farm construction.

Zero-Emission Buses & Climate Curriculum for California Schools

Gov. Newsom signed Assembly Bill 579, from Asm. Phil Ting (D-San Francisco), which requires new school buses to be zero-emission starting in 2035. A 2022 report from the state’s Legislative Analyst's Office (LAO) found that two-thirds of school buses owned by school districts are powered by diesel fuel. Diesel bus emissions can increase the risk of respiratory problems, asthma and lung damage for students.

"California has gathered substantial data on the impact of school bus emissions on children and

the environment, with some studies noting that bus commutes account for 33% (or one-third) of

a child's daily exposure to toxic air pollutants,” explains Ting in written comments included in the Assembly Floor Analysis of the bill. “A consistent statewide planning goal to obtain zero-emission buses is critical to improving air quality and student health.”

Newsom also signed Assembly Bill 285, authored by Asm. Luz Rivas (D-San Fernando Valley), which requires science classes in grades 1-12 to include lessons about the “causes and effects of climate change and methods to mitigate and adapt to climate change” beginning next year.

More Fueling Stations for Hydrogen Cars

With Assembly Bill 126, introduced by Asm. Eloise Gómez Reyes (D-San Bernardino), legislators approved a compromise with Gov. Newsom that would designate 15% of funds from the state’s Clean Transportation Program to build fueling stations for hydrogen vehicles. 

The new law reauthorizes the use of fees paid by California drivers to invest in zero-emission infrastructure like charging stations. An estimated $106 million will be allocated to building new hydrogen fueling stations through July 2030.

The debate over the bill had persisted for months with critics arguing that few Californians drive fuel cell vehicles powered by hydrogen. Californians own only about 12,000 hydrogen vehicles, compared to more than 760,000 electric-battery powered vehicles, reports Cal Matters.

Industry representatives say more people will buy hydrogen cars if more fueling stations are built. Proponents also say it’s important to diversify emission-free options for consumers and that hydrogen is better than electric for medium and heavy duty trucks.

Environmental advocates, on the other hand, aren’t fans of hydrogen-powered vehicles because “the electricity to run their motors uses compressed hydrogen gas, which is mostly derived from natural gas, a fossil fuel.” They argue that hydrogen technology is being pushed by oil and gas companies that see it as a way to stay in the market. 

The California Energy Commission has spent more than $200 million on hydrogen fueling stations, but there are just 65 hydrogen fueling states in the state. Surprisingly, according to Cal Matters, only “[o]ne other public hydrogen fueling station exists in the U.S., and it’s in Hawaii,” making it “virtually impossible” to drive a hydrogen car outside of California.

Improving California’s Electricity Infrastructure

If California is going to meet its goal of banning the sale of new gas-powered passenger cars and trucks by 2035, lawmakers know the state needs to improve the state’s electricity infrastructure.To that end, Newsom signed Senate Bill 410, the "Powering Up Californians Act,” to help speed up the regulatory process.

The bill, introduced by Sen. Josh Becker (D-San Mateo), aims to reduce the amount of time it takes for electrical utilities companies, mainly Pacific Gas & Electric, to connect much-needed projects to the electric grid. Becker says the goal is to eliminate “roadblocks in California's path to clean energy.”

According to Becker’s office, customers are delaying taking possession of electric semi-trucks they’ve already purchased because of the number of EV charging stations in California that are not connected to the electric grid or not receiving enough power to charge a semi-truck. SB 410 requires the Public Utilities Commission to set target timelines for PG&E to complete projects or provide a reason why the deadline cannot be met.

Lawn Wars

Assembly Bill 1572, by Asm. Laura Friedman (D-Burbank), will kick off a major change for certain California landscapes. The new law prohibits the use of drinking water to irrigate purely decorative grass at commercial, industrial and city properties. It applies to grass that is mowed but not used, such as “along roads, in medians and outside businesses and in common areas of homeowners associations,” reports the Los Angeles Times.

The ban will be phased in beginning in 2027. The law does not apply to residential lawns and exempts sports fields, parks, cemeteries, recreation areas used for activities, and “community spaces.” It also exempts grass areas irrigated with recycled water. Lawmakers hope environmentally-friendly native and drought-resistant plants will replace decorative grass in many areas.

And, homeowners looking to reduce their water consumption should think twice about switching to artificial turf. Senate Bill 676, from Sen. Ben Allen (D-Santa Monica), is now law, and allows local governments to ban or restrict the installation of artificial turf on residential properties. Environmental advocates say research demonstrates “microplastics from artificial turf end up washing into streams and the ocean, and that harmful PFAS chemicals have also been found in artificial turf.” 

PFAS (per- and polyfluoroalkyl substances) are man-made “forever chemicals” that don’t break down easily in nature or people’s bodies, which can harm the environment and human health.

30 by 30 

Gov. Newsom also signed Senate Bill 337, another bill by Sen. Dave Min (D-Irvine). The new law codifies the governor’s goal of protecting 30 percent of the state’s lands and coastal waters by 2030. 

Newsom signed an executive order in 2020 establishing the “30 by 30” (or “30 x 30”) target, making California the first U.S. state to join other countries in the larger global effort to protect 30 percent of the Earth by the end of the decade. In 2021, the Biden administration announced it would work to protect 30 percent of U.S. land and ocean territory by 2030.

Under Newsom’s order, the Secretary of the Natural Resources Agency must report to the state legislature on or before March 31, 2024, and annually thereafter, on the progress made in the prior calendar year toward achieving the 30 x 30 goal.

Just under 24 percent of land in California is currently conserved, with much of that area protected as “parks, forests and preserves.” Experts say increasing that number is essential to reducing carbon in the atmosphere and providing other protections against climate change.