THE NET-ZERO BLOG
Climate policy analysis and updates from Sacramento
California moves one step closer to landmark biomass policy
Yesterday, AB 1666 (Rogers) passed out of the Senate Natural Resources and Water Committee, moving California one step closer to establishing its first-ever comprehensive statewide biomass policy framework. The bill passed out unanimously (7-0) with support from a broad coalition of environmental organizations, local and regional economic development groups, air pollution control districts, a Tribal government, and biomass technology developers. As the bill moves to Senate Appropriations, we highlight the opportunity to allocate available Proposition 4 funding to support its implementation.
New poll: 70% of California voters oppose data centers
Across the East Coast and Midwest, there is growing evidence of data center development driving up electric bills and polluting the environment. In a recent article, the chief executive of PJM, the nation's largest grid operator, labeled the situation "not tenable" – with power prices having increased by more than 400% in the region's capacity market. The Chair of the Federal Energy Regulatory Commission has openly considered the possibility of 'breaking up' the region, stating that “now, we face historically unprecedented demand – with potentially historically unprecedented, catastrophic failure".
GGRF investments are a dumpster fire. Does anyone even care?
The cap-and-invest program update has quickly become one of the most contentious environmental policy fights of 2026. The California Air Resources Board’s (CARB's) proposal to establish a Manufacturing Decarbonization Incentive (“MDI”) that would reduce near-term compliance costs for manufacturers, notably refineries, has been strongly opposed by environmental organizations. Industry groups, meanwhile, have argued it doesn’t go far enough in addressing leakage risks. The Legislature has expressed deep frustration over how the MDI could significantly reduce Greenhouse Gas Reduction Fund (GGRF) revenues and therefore undermine the spending commitments agreed under SB 840 (Limon). The budget chairs in both houses have suggested reopening these negotiations.
Nation-leading data center bills progress through State Legislature
Earlier this week, two data center bills authored by Senator Steve Padilla, SB 886 and SB 887, advanced out of their policy committees.
Together, the bills form a nation-leading clean and affordable data centers framework that: a) establishes baseline protections to ensure residential ratepayers are not paying for the state's data center build-out; while b) creating incentives for high-quality data center projects that meet various clean energy, community, and labor standards.
SB 254 Catastrophe Resiliency study emphasizes need for new wildfire mitigation financing strategies
California’s escalating wildfire crisis poses multiple serious risks to the state. Recognizing the need for new approaches, the Legislature and Governor authorized a Catastrophe Resiliency study to evaluate policy options to reduce damages to life and property, accelerate post-disaster recovery, and improve the allocation of wildfire-related costs in California. In this blog, we summarize the report’s main findings before highlighting near-term opportunities to implement priority recommendations.
California’s data centers should be models of affordable, clean electricity
California’s sky-high electricity rates risk making monthly bills unaffordable for families and the state less economically competitive and less of a global hub for technological innovation. Last year, policymakers made progress on reforms aimed at improving energy affordability. But the expansion of energy-intensive data centers to fuel the current boom in AI is challenging those gains.