THE NET-ZERO BLOG
Climate policy analysis and updates from Sacramento
Big wins, notable losses in turbulent end to California’s legislative session
A nation-leading data center policy, targeted grid reforms, and new biomass innovation parks headline the wins. A collapsed wildfire negotiation resulted in a missed opportunity to establish a multi-billion-dollar mitigation fund, while efforts to manage the state’s transition away from gasoline also fell short. The next Governor will need to confront multiple energy transition challenges to keep the state’s climate goals within reach.
Will the Legislature take action on wildfire mitigation?
With less than two weeks remaining in the legislative session, wildfire reform is one of the biggest unresolved issues in Sacramento.
Wildfire reforms should reduce risk, not just redistribute costs
Catastrophic wildfires are at the heart of California's affordability crisis. Policymakers are considering reforms for how to manage these costs, with much of the debate focused on how they should be distributed. But changing who pays doesn't solve the more fundamental problem: how do we reduce the cost burden altogether?
California moves one step closer to landmark biomass policy
Yesterday, AB 1666 (Rogers) passed out of the Senate Natural Resources and Water Committee, moving California one step closer to establishing its first-ever comprehensive statewide biomass policy framework. The bill passed out unanimously (7-0) with support from a broad coalition of environmental organizations, local and regional economic development groups, air pollution control districts, a Tribal government, and biomass technology developers. As the bill moves to Senate Appropriations, we highlight the opportunity to allocate available Proposition 4 funding to support its implementation.
New poll: 70% of California voters oppose data centers
Across the East Coast and Midwest, there is growing evidence of data center development driving up electric bills and polluting the environment. In a recent article, the chief executive of PJM, the nation's largest grid operator, labeled the situation "not tenable" – with power prices having increased by more than 400% in the region's capacity market. The Chair of the Federal Energy Regulatory Commission has openly considered the possibility of 'breaking up' the region, stating that “now, we face historically unprecedented demand – with potentially historically unprecedented, catastrophic failure".
GGRF investments are a dumpster fire. Does anyone even care?
The cap-and-invest program update has quickly become one of the most contentious environmental policy fights of 2026. The California Air Resources Board’s (CARB's) proposal to establish a Manufacturing Decarbonization Incentive (“MDI”) that would reduce near-term compliance costs for manufacturers, notably refineries, has been strongly opposed by environmental organizations. Industry groups, meanwhile, have argued it doesn’t go far enough in addressing leakage risks. The Legislature has expressed deep frustration over how the MDI could significantly reduce Greenhouse Gas Reduction Fund (GGRF) revenues and therefore undermine the spending commitments agreed under SB 840 (Limon). The budget chairs in both houses have suggested reopening these negotiations.