The California State Senate on Saturday advanced a pair of measures to reauthorize and reshape the state's cap-and-invest program, backing billions in new investments intended to lower household energy costs and fund projects for transit, housing, wildfire prevention and safe drinking water.

Senators debated AB 1207 — presented on the floor by Senator Limon on behalf of Assemblymember Erwin — and companion measures that the Senate said will extend California’s cap-and-trade framework through 2045 and change how climate credits appear on utility bills.

Supporters said the reauthorization will keep the program as a leading state climate tool while directing roughly $63 billion over the next decade toward reducing household energy costs and statewide investments. “This reauthorization includes $63,000,000,000 over the next decade” to lower utility bills and boost transit, housing and wildfire prevention, Senator Limon said on the floor. Pro tem (floor leader) framed the package as an affordability and climate initiative that will “put more money in the pockets of hardworking Californians” and hold utilities accountable for wildfire safety.

Proponents explained key changes: consolidating some rebate credits so an electric-only household receives its full climate credit on electricity rather than splitting between electric and gas bills; directing GGRF (Greenhouse Gas Reduction Fund) dollars to specified programs, including affordable housing and safe drinking water; and expanding oversight and reporting to the Legislature. Senator Blake Spear, chair of the Senate Environmental Quality Committee, said the proposal also seeks to link California’s market more closely to neighboring jurisdictions to reduce emissions and lower costs.

Lawmakers highlighted program outcomes they attribute to earlier authorizations: investments that supporters say helped create jobs, spur housing construction and accelerate electric vehicle adoption. “Over 11,000,000 households have received electric California climate credits on their utility bills,” Senator Limon said in closing remarks, citing past program distributions.

Alongside endorsements, several senators raised concerns. Senator Grove and others warned that large allocations for projects such as high-speed rail and funding steered by new entities risked cost overruns or reduced legislative control. Senator Searto (identified in the transcript as a dissenting senator) said affordability remains the top priority and argued the package risks raising costs or favoring regulatory approaches that do not directly benefit low-income households. Senator Anilo critiqued cap-and-trade as an artificial market and urged clearer assessment of economic costs. Several senators pressed for stronger protections for rural and agricultural programs that historically received cap-and-invest funding.

Senators also emphasized new oversight provisions. Senator Smallwood Cuevas said the bill’s periodic reporting requirements will allow the Legislature to track impacts on disadvantaged workers and communities and evaluate implementation of labor standards for programs funded by the GGRF.

On the floor, the Senate recorded its vote on the lead bill, and the clerk announced the result: “Ayes 29. No 6. The measure passes.” (Roll-call recorded on the floor during the AB 1207 consideration.)

The legislation as presented will now proceed through the remaining steps required for enactment. Supporters framed the vote as a dual action on climate and affordability; critics said more guardrails and clearer cost assessments are needed to protect consumers and impacted communities.