On September 19, 2025 Governor Newsom signed SB 840 and AB 1207 which extend the state’s preeminent climate program, Cap-and-Invest, formerly known as Cap-and-Trade.
The Cap-and-Invest reauthorization includes an estimated $60-90 billion in critical investments to lower utility bills, build thousands of additional affordable housing units, expand safe drinking water, move thousands of additional wildfire prevention projects forward, expand transit and high-speed rail, and reduce local air quality impacts in disadvantaged communities. Over the life of the program, at least $60 billion will go toward lowering the utility bills for California households and small businesses. Electric bill rebates will be timed around high-cost months, with additional support for low-income Californians, to help families most in need.
The extension also strengthens oversight of the California Air Resources Board (CARB) and the Greenhouse Gas Reduction Fund (GGRF), with a dedicated unit to oversee climate programs and ensure that investments deliver real benefits to Californians.
Over the last 10 years, California’s global leading Cap-and-Invest program has helped distribute billions to residential households, small businesses, and industries. These investments have gone to support 20,361 new affordable housing units, 420,000 additional clean vehicle rebates, and improved air quality. More than 11 million households have received electric bill rebates, totaling over $600 per household. Revenues have supported 30,000 jobs, including 20,000 new jobs in clean transportation, with a quarter of all revenues supporting disadvantaged communities and resulting in emissions in regulated facilities within those communities falling by 21%.
Electricity Bill Refunds
Since 2014, the state’s Cap-and-Invest program has delivered $14.6 billion in bill refunds back to residential utility customers. This year, California will provide a total of $2.4 billion in residential credits.
How it works
The refunds range from $35 to $259 on electric bills – with most households set to receive between $56 to $81 in October. Californians can check how much their refund will be here.
Californians do not need to do anything to get the refund . The California Climate Credit comes from the State’s Cap-and-Invest Program managed by the California Air Resources Board. The refund on electric bills represents the consumer’s share of payments from the State’s program.
In addition to electric bill refunds, California’s Cap-and-Invest program has funded $33 billion in climate investments creating more than 120,000 jobs and cutting millions of tons of carbon emissions. The investments include a wide range of solutions such as putting affordable housing near job centers, building the nation’s first high-speed rail, and adding zero-emission transportation options in underserved communities.
See the Governor's full press release, here.