California Governor Newsom Signs Comprehensive Energy Legislation Enhancing Affordability and Sustainability

California Governor Gavin Newsom signed a comprehensive energy and climate package aimed at addressing rising electricity and gasoline costs amid refinery closures and wildfire threats. The legislation includes expanding oil drilling in Kern County to increase in-state fuel supply, extending the state's cap-and-trade program — now called Cap-and-Invest — through 2045, and joining a regional power transmission system to improve grid reliability. The package also replenishes an $18 billion wildfire liability fund to help utilities avoid bankruptcy and guarantees $1 billion annually for the state's high-speed rail project. These measures reflect a delicate balancing act to maintain energy affordability while advancing clean energy goals during California's "mid-transition" away from fossil fuels. Governor Newsom emphasized the practical application of these policies to stabilize utility and gas prices, providing significant bill refunds and supporting communities impacted by pollution. The bipartisan-supported package signals California's effort to manage a complex energy transition while preparing for future climate challenges and political dynamics.