SACRAMENTO, CA – Today, Governor Gavin Newsom signed SB 254, California’s most ambitious energy affordability bill in decades, delivering billions in savings for Californians while strengthening grid reliability and accelerating clean energy. The legislation combines the strongest elements of SB 254, AB 825, and new wildfire liability reforms championed by the Governor’s administration.
“This is a once-in-a-generation victory for Californians,” said Senator Josh Becker (D–Menlo Park). “SB 254 takes on the toughest challenges facing California’s energy system: skyrocketing bills, wildfire risk, and utility accountability. With the Governor’s signature, we are delivering billions in savings, stabilizing our utilities, and ensuring the grid can support housing, clean energy, and economic growth. I am thankful to Governor Newsom, Senate President pro Tem Mike McGuire, and Senate President pro Tem-elect Monique Limon, for their leadership and collaboration.”
“A promise made is a promise kept. From day one, the Senate committed to tackling energy affordability in California and this bold bill does exactly that, saving ratepayers billions of dollars over time and holding utilities accountable. This landmark legislation will deliver for every corner of the Golden State on energy affordability, as well as wildfire mitigation and relief, and will help fast-track California’s transition to clean energy. I’m grateful to Senator Becker and Assemblymember Petrie-Norris for never giving up on finding solutions on these urgent issues, and for bringing home real and lasting change that will put more money back into the pockets of Californians,” said Senate President Pro Tempore Mike McGuire (D-North Coast).
Key Provisions of SB 254:
- Wildfire Mitigation Oversight – Strengthens review of utility wildfire mitigation spending, the biggest source of recent bill increases, to ensure cost-effectiveness and improve coordination, while streamlining undergrounding projects through regional “Call Before You Dig” centers.
- Bill Savings Through Low-Cost Financing – Requires utilities to securitize $6 billion in wildfire safety investments, saving ratepayers more than $300 million annually. Expands access to public financing for major transmission projects, reducing costs by up to $3 billion per year.
- Accountability for Utility Profits – Increases transparency into utility earnings, ensuring profits remain “just and reasonable” and not excessive at the expense of customers.
- Faster Clean Energy Projects – Streamlines permitting through new programmatic environmental reviews and reforms to accelerate and lower the cost of California’s clean energy build-out.
- Stronger Wildfire Fund – Establishes a Continuation Account to extend the Wildfire Fund through 2045 with equal contributions from ratepayers and utility shareholders. The new fund will reduce bankruptcy risk and lower the cost of financing grid infrastructure, saving ratepayers money. It also protects against Wall Street hedge fund speculation to inflate claims and profit off these disasters.
- Timely Utility Service – Ensures that utilities are keeping up with rising demand from new housing, EVs, and economic growth, both with independent audits of their current practices and future plans to meet load growth and with an evaluation of penalties or incentives to achieve target timelines for providing new service.
SB 254 reflects months of work by lawmakers, the Governor’s office, consumer advocates, and energy experts. Supporters include The Utility Reform Network (TURN) and Net Zero California.
Senator Becker recently held a press conference to discuss SB 254, which can be viewed here.