Wildfires, data centers, and climate funding debates take center stage in the final month of session

By Melissa Sparks-Kranz, legislative advocate

A series of high-profile debates on utility-caused wildfires, data center infrastructure, and declining funding for climate action will likely dominate the last four weeks of the Legislative session. Lawmakers must reach a deal on each issue before Aug. 31 or spike it to next year.

Stage set for late-session changes to wildfire liability

One of the biggest outstanding issues is who pays for the damage caused by utility-caused wildfires. Gov. Gavin Newsom is spearheading a closely guarded proposal to revamp the state’s wildfire liability system. Cal Cities and others are urging the Legislature not to shift liability from utilities to victims, local governments, or taxpayers. Lawmakers were briefed on the proposal this week, setting the stage for potential committee hearings in the coming weeks.

Cal Cities is prioritizing several related disaster bills as part of those conversations. SB 1370 (Stern) consolidates the state review of vegetation management projects for wildfire safety. The measure mirrors an executive order from last year to streamline state permitting for vegetation management projects and an unsuccessful attempt by Cal Cities to streamline California Fish and Wildlife Department permits for such projects.

Cal Cities is also supporting AB 2385 (Petrie-Norris). The measure makes it easier to rebuild after a disaster by allowing local governments to create reconstruction agencies. These agencies would be activated after a disaster and could raise funding, sign contracts, and coordinate rebuilding projects.

Legislators mull new data center requirements

Also on Cal Cities’ environmental agenda are two data center bills. AB 2469 (Papan) prevents cities and counties from approving a data center unless the project meets specific water supply requirements. Cal Cities is seeking changes that preserve local land use authority. The other bill, AB 1577 (Bauer-Kahan), requires specific reporting requirements related to water and energy consumption for new data centers. Cal Cities supports AB 1577, as it would help cities better plan for and evaluate potential data centers.  

Climate funding decisions still ongoing

One major sticking point for lawmakers — and Cal Cities — is how to allocate money from the 2024 climate bond and the now pared-back Greenhouse Gas Reduction Fund (GGRF). The Legislature failed to reach an agreement on this year’s $2.1 billion bond allocation before summer recess.

Cal Cities is continuing to advocate for its climate bond priorities — wildfire, water, coastal, and parks — which it conveyed to lawmakers through the budget process earlier this year.

Lawmakers, mostly in the Senate, are continuing to push back on a decision by the California Air Resources Board to slash the GGRF to provide greater incentives to manufacturers. Cal Cities agreed and voiced concerns with the Legislature and the state agency in its rulemaking earlier this year. At stake is roughly $2 billion for affordable housing, wildfire, transit, safe drinking water, and air quality programs.

Other bills to engage on with Cal Cities

Cal Cities is also engaged on over two dozen other environmental measures, including three tribal bills: AB 2218 (Kalra), SB 1326 (Wahab), and AB 1881 (Ramos). Cal Cities is opposed and seeking changes aimed at decreasing the new legal challenges and costs for cities that the bills create. Other priority environmental bills include:

• AB 2739 (Soria) Water: Affordability and system stabilization
  Cal Cities Position: Support
• SB 1218 (Arreguín) Refusal of registration: illegal dumping violation penalties
  Cal Cities Position: Support
• AB 762 (Irwin) Disposable, battery-embedded vapor inhalation device: prohibition and penalties

  Cal Cities Position: Support

• SJR 12 (Laird) Proposed 2026–2031 National Outer Continental Shelf Oil and Gas Leasing Program: opposition
  Cal Cities Position: Support
• AB 2180 (Ward) Local government: Proposition 218: Omnibus Implementation Act: proportional cost of service

  Cal Cities Position: Support

• AB 1761 (Rogers) Electricity: calculation methodology: data disclosure

  Cal Cities Position: Support

• SB 899 (Grove) Fire prevention: Wildfire and Forest Resilience Task Force: wildfire smoke 

  Cal Cities Position: Support

• AB 1642 (Harabedian) Wildfires: contamination standards
  Cal Cities Position: Support

Legislators have until Aug. 31 to send bills to Gov. Gavin Newsom’s desk. To learn how you can make your voice heard on these critical issues, contact your regional public affairs manager.