Report on California’s Climate and Energy Legislation and Alignment with Sustainable Development Goals

1.0 Executive Summary

• On September 19, 2025, the Governor of California enacted a comprehensive legislative package aimed at advancing the state’s climate policy, reducing energy costs, and enhancing environmental protections.
• This legislation directly supports multiple United Nations Sustainable Development Goals (SDGs), particularly in the areas of affordable energy, climate action, and sustainable communities.
• Key outcomes include significant electricity bill refunds for consumers, stabilization of the petroleum market, and an extension of the state’s Cap-and-Invest program to accelerate the reduction of greenhouse gas emissions.

2.0 Legislative Impacts on Energy, Economy, and Environment

2.1 Advancing SDG 7: Affordable and Clean Energy

• Energy Affordability: The laws are projected to generate up to $60 billion in electricity bill refunds, directly addressing SDG Target 7.1 by ensuring affordable and reliable energy for millions of households.
• Clean Energy Acceleration: The package facilitates the development of clean energy projects, improving grid reliability and increasing the supply of renewable energy, in line with SDG Target 7.2. California’s progress is evident, having been powered by two-thirds clean energy in 2023.
• Infrastructure Modernization: Utilities are mandated to invest in grid modernization and hardening, funded by shareholders, to support a resilient and clean energy infrastructure essential for sustainable development.

2.2 Committing to SDG 13: Climate Action

• Emissions Reduction Framework: The extension of the Cap-and-Invest program to 2045 strengthens California’s primary mechanism for reducing greenhouse gas emissions, a critical action for SDG 13.
• Polluter-Pays Principle: The program reinforces the principle that polluters must pay for their environmental impact, with funds directed towards projects that mitigate climate change and support vulnerable communities.
• Decoupling Growth from Emissions: The state has demonstrated a 20% reduction in greenhouse gas emissions since 2000 alongside a 78% increase in GDP, proving that economic growth can be achieved while taking decisive climate action.

2.3 Fostering SDG 11: Sustainable Cities and Communities

• Sustainable Infrastructure: The legislation provides the first stable funding source for the state’s high-speed rail project, promoting sustainable transport and infrastructure development (SDG Target 11.2).
• Pollution Reduction and Public Health: By targeting air pollution, the laws contribute to improved public health and environmental quality in urban and rural communities, aligning with SDG 3 (Good Health and Well-being) and SDG 11.6.
• Wildfire Resilience: A new generation of the California Wildfire Fund is established to protect communities and ratepayers from the financial and physical impacts of catastrophic wildfires, enhancing community resilience (SDG Target 11.5).

2.4 Supporting Additional Sustainable Development Goals

• SDG 8 (Decent Work and Economic Growth): The Cap-and-Invest program has been linked to the creation of over 30,000 jobs and the construction of 20,000 housing units, fostering sustainable economic growth.
• SDG 10 (Reduced Inequalities): Billions of dollars are designated for investments in communities most affected by toxic pollution, ensuring a just transition and addressing environmental inequalities.
• SDG 12 (Responsible Consumption and Production): Measures to stabilize the state’s gasoline supply aim to manage the transition away from fossil fuels responsibly, preventing market volatility while maintaining the long-term goal of reducing fossil fuel consumption.

3.0 Enacted Legislation

The legislative package comprises several key bills designed to achieve these multifaceted goals:

1. AB 825: Pertains to the Independent System Operator.
2. AB 1207: Extends the market-based compliance mechanism for climate change.
3. SB 237: Addresses oil spill prevention and gasoline specifications.
4. SB 254: General energy-related provisions.
5. SB 352: Focuses on environmental justice and community air monitoring.
6. SB 840: Relates to the Greenhouse Gas Reduction Fund.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article discusses a range of legislative actions in California that connect to several Sustainable Development Goals (SDGs). The primary focus on energy affordability, climate action, pollution reduction, and economic development links directly to the following SDGs:

• SDG 3: Good Health and Well-being: The emphasis on slashing air pollution and cleaning the air in communities impacted by toxic pollution directly contributes to healthier living environments.
• SDG 6: Clean Water and Sanitation: The article explicitly mentions initiatives for “delivering clean drinking water to tens of thousands,” which aligns with the goal of ensuring water and sanitation for all.
• SDG 7: Affordable and Clean Energy: This is a central theme, with new laws aimed at lowering electricity costs, providing refunds, and accelerating the development of clean energy projects.
• SDG 8: Decent Work and Economic Growth: The article highlights that California’s climate policies have spurred innovation and job creation, mentioning that the Cap and Invest program has helped create “more than 30,000 jobs” while growing the state’s GDP.
• SDG 9: Industry, Innovation, and Infrastructure: The commitment to making high-speed rail a reality by providing a stable source of funding is a direct investment in sustainable and resilient infrastructure.
• SDG 11: Sustainable Cities and Communities: The efforts to reduce air pollution, invest in clean transportation options like high-speed rail, and protect communities from wildfires all contribute to making cities and human settlements more inclusive, safe, resilient, and sustainable.
• SDG 13: Climate Action: The core of the legislation is to extend and strengthen California’s climate policies, such as the “Cap-and-Invest” program, to cut greenhouse gas emissions and combat climate change.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the actions and policies described, several specific SDG targets can be identified:

1. Target 3.9: By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.
   • Explanation: The legislation’s goal to “slash air pollution” and invest billions in “cleaning the air in communities most impacted by toxic pollution” directly addresses this target.
2. Target 6.1: By 2030, achieve universal and equitable access to safe and affordable drinking water for all.
   • Explanation: The article mentions the state is “delivering clean drinking water to tens of thousands,” which is a direct action towards this target.
3. Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services.
   • Explanation: The new laws promise to “provide California families up to $60 billion in electricity bill refunds” and “bring down customer electric bills,” directly targeting energy affordability.
4. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • Explanation: The article states that the legislation will “accelerate critical clean energy projects” and notes that California was already “powered by two-thirds clean energy in 2023,” indicating a continued effort to increase this share.
5. Target 8.4: Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation.
   • Explanation: The article provides a clear example of this decoupling by stating that “Greenhouse gas emissions in California are down 20% since 2000 – even as the state’s GDP increased 78% in that same time period.”
6. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being.
   • Explanation: The legislation makes “high-speed rail a reality by providing its first-ever stable source of funding,” which is a significant investment in sustainable transportation infrastructure.
7. Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.
   • Explanation: The focus on slashing air pollution and investing in clean transportation directly contributes to reducing the negative environmental impact of urban areas.
8. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • Explanation: The entire legislative package, particularly the extension of the “Cap-and-Invest” program to 2045, represents the integration of climate change measures into state-level policy and long-term planning.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article contains several quantitative and qualitative indicators that can be used to measure progress:

• Indicator for Energy Affordability (Target 7.1): The total value of electricity bill refunds, stated as “up to $60 billion,” serves as a direct financial indicator of increased affordability for families.
• Indicator for Clean Energy Share (Target 7.2): The statistic that California was “powered by two-thirds clean energy in 2023” and has run on “100% clean electricity for some part of the day almost every day this year” are clear indicators of the share of renewable energy. The increase in battery storage to “over 15,000 megawatts” is another key metric.
• Indicator for Climate Action (Target 13.2): The reduction of greenhouse gas emissions by “20% since 2000” is a historical indicator of the success of California’s climate policies. The extension of the Cap-and-Invest program to 2045 is a policy-based indicator of future commitment.
• Indicator for Decoupling Economic Growth from Environmental Impact (Target 8.4): The comparison of a “78% increase in GDP” against a “20% decrease in greenhouse gas emissions” since 2000 is a powerful indicator of successful decoupling.
• Indicator for Job Creation (SDG 8): The mention that the Cap and Invest program has helped in “creating more than 30,000 jobs” is a specific indicator of the economic benefits of climate action.
• Indicator for Sustainable Infrastructure (Target 9.1): The establishment of the “first-ever stable source of funding” for high-speed rail is a measurable milestone for infrastructure development.
• Indicator for Access to Clean Water (Target 6.1): The number of people receiving clean drinking water, mentioned as “tens of thousands,” can be tracked to measure progress.

4. Table of SDGs, Targets, and Indicators

Source: gov.ca.gov