California's Legislative Actions On Climate

California lawmakers ushered in a robust suite of climate legislation at the end of the term in August, dedicating $54 billion to climate programs over the next five years. The state's demonstrated dedication to climate issues dovetails with the federal government's recent passage of the Inflation Reduction Act, which included several environmental provisions discussed in a recent WilmerHale alert. If signed by Governor Newsom, the new laws will impact oil and gas infrastructure, carbon dioxide emissions, and carbon sequestration capabilities, among other items. For example:

• Clean Energy: Under AB 1279, California codifies the existing goal to achieve carbon neutrality by 2045. The state aims to implement 90% clean electricity by 2035 and 95% by 2040, pursuant to SB 1020. Reaching these targets will require an 85% reduction in emissions across sectors, including transportation, oil and gas production, and agriculture.