This groundbreaking legislative package - led by the Senate Democratic Caucus - is an aggressive three-pilar legislative effort that directly tackles the affordability crisis in our state focusing on the critical areas of Energy, Housing, and Workforce.

Coupled with strategic budget actions, this targeted package includes three pieces of legislation that will help make the Golden State more affordable, livable and competitive. Here’s what the bills do:

  • Accelerate housing supply and increase housing stability for homeowners and renters across California
  • Help protect hard-working Californians from skyrocketing utility bills and costs to save households billions over the next decade
  • Expedite the development of clean energy projects to meet the state’s demands for electricity and help grow our nation-leading economy
  • Connect Californians to high quality career training programs connected to the jobs our economy demands, now, and in the future. The package streamlines the current bureaucracy and expands results-driven career training programs at public high schools and community colleges across the state.

These priorities of the Senate Democratic Caucus will continue to make the Golden State more affordable and accessible for Californians across all ages and in all communities as the cost of rent / mortgage, groceries, utilities, insurance, and gas continue to rise.

Investing In Your California Dream Bill Package Summary

SB 254

Energy

(Senator Becker)

Tackles utility costs and expedites clean energy production, which will save consumers billions of dollars on energy bills in the coming years. It will require utility companies to use the most cost effective ways to save ratepayers money, expedite thousands of megawatts of clean energy projects and creates a program to accelerate large-scale battery energy storage and cut red tape for clean energy projects. SB 254 also forces utilities to use the most cost effective wildfire mitigation plans, as rising wildfire mitigation costs have become some of the largest drivers of utility bill increases. The bill also adds transparency provisions for ratepayers at the Public Utilities Commission.

Energy Bill

How It Helps

  • Will save consumers billions of dollars over the next decade on energy bills by making the current Wildfire Mitigation Plan more efficient, tackling what has caused the majority of recent increases.
  • Hundreds of millions of dollars will be saved for new utility infrastructure by not allowing Investor Owned Utilities (IOUs) to earn a profit on $15 billion of capacity building and wildfire hardening.
  • Increasing twice-a-year climate credits for low income families and making sure increased credits reduce their bills when costs are highest in the summer.
  • Creates Low-Cost Public Financing & Ownership of Transmission, reducing ratepayer costs by at least 50%, adding up to tens of billions in savings, compared to corporate ownership.
  • Cutting tens of millions of dollars in costs caused by permitting delays for clean energy projects, ultimately paid by ratepayers.

The California Energy Modernization and Affordability Act is California’s most ambitious effort yet to rein in rising energy costs and put ratepayers first. This bill—which will save Californians billions—ensures wildfire mitigation dollars are spent where they have the greatest impact and sharpens scrutiny of utility budgets through stronger laws that will help control excessive profits and rate increases. It uses public financing to lower long-term costs and streamlines clean energy permitting so we can build clean projects faster and more affordably.

Senator Josh Becker (D-Menlo Park)

SB 681

Housing

(Senator Wahab)

Helps tackle the housing crisis by making it easier to build housing across California, advances protections and housing stability measures for renters, helps first time homebuyers achieve the American dream, and kickstarts housing production at all levels. It expands the Surplus Lands Act and the Permit Streamlining Act, which expedites the development of housing units in cities and counties. The bill makes it easier to build affordable housing in regions most impacted by housing shortages, increases housing stability for renters by curbing junk fee practices, and significantly increases the renters tax credit. SB 681 defends homeowners from predatory mortgage debt practices.

Housing Bill

How It Helps

  • This bill’s comprehensive approach focuses on boosting housing production at all levels, providing more opportunities for first-time home buyers and increasing housing stability for renters by increasing the tax credit.
  • Reduces the unacceptably high number of middle class Californians that spend over half their income on housing.
  • 64% of low-income California renters are paying over half of their income in rental costs. By more than doubling the renter’s tax credit, Californians will save hundreds of dollars annually.
  • Housing streamlining provisions in this bill will shorten the timelines to build housing by more than six weeks. Delays in building housing increase construction costs. By reforming timelines, California can save as much as $1,200 per unit, per month, resulting in more affordable homes for those who need them most.
  • Hundreds to thousands of dollars will be saved by homeowners and renters who are hit with excessive HOA fines per year.
  • 84% of renters reported paying rental application fees in 2023. Junk fees like these, and other surprise rental fees, can lead to tenants spending hundreds of dollars more per month in excess of what they expected. Curbing junk fees will protect consumers and save renters hundreds on their monthly bills.
  • As many as 2.3 million units of new housing can be created by making school districts follow the same rules as other public agencies when selling surplus land. To date, the existing state Surplus Land Act has resulted in 39,908 new housing units, of which 22,252 are affordable to lower income residents.

It’s time we deliver on our promise to help make California a more affordable place to live, and expand the rights of renters and homeowners. For decades, our housing shortage has forced countless residents to live beyond their means and sacrifice the American Dream of homeownership. SB 681 immediately expands rent relief to millions, makes homeownership more achievable, builds more homes faster in communities big and small, and expedites the development of workforce housing across California.

Senator Dr. Aisha Wahab (D-Silicon Valley)

SB 638

Workforce

(Senator Padilla)

Invests in results-driven programs that build a more vigorous pathway to the middle class. The bill expands and modernizes California’s career training programs and creates a pathway to better paying jobs in traditional and emerging industries. The bill establishes a groundbreaking new collaboration between K-12 school districts, community colleges, and local industries to expand strong workforce opportunities across the state, including apprenticeship programs. Specifically, the program will focus on regional needs, including the demands of emerging industries such as information technology, artificial intelligence, healthcare, and the green economy. The legislation will streamline the state’s career education system to ensure that all relevant stakeholders—in both education and local business—work together to implement a cohesive, successful workforce strategy for all regions of California that includes necessary supports and services individuals need to enter into quality training programs. SB 638 establishes the foundation for the state to improve its chances of achieving the joint goal of meeting workforce needs and providing opportunities for workers.

Workforce Bill

How It Helps

  • Establishes a cohesive workforce development/career pathway system statewide that will consolidate and unify our efforts to give Californians better opportunities to attain higher wage jobs.
  • Prioritizes and promotes workforce apprenticeship programs that studies routinely show can lead to a 50% increase in annual earnings for participants.
  • California employers are desperate for well-trained workers in manufacturing, trades, healthcare, technology, agriculture and many more sectors. Our bill brings together high schools, community colleges, large corporations and local businesses to create specific programs to address this demand, and create greater opportunities for workers.
  • We recognize the significant challenges to working families, and this bill is a shot in the arm for our economy, expanding career pathways in local high schools and community colleges, certificate programs, and continuing education programs. Our focus is to increase the earning potential of working families and expand the workforce for California’s leading industries and businesses.

Too many Californians are economically stranded in low wage jobs and don’t have the means to acquire the skills necessary for high wage opportunities. SB 638 will supercharge programs that connect people with good paying jobs, reimagine our career technical education system, and expand access to those programs to better prepare Californians for the 21st century economy.

Senator Steve Padilla (D-San Diego)

For too long, hardworking families have struggled to afford the basics—skyrocketing housing costs and utility bills are stretching budgets and folks are struggling to achieve a job that pays a family-sustaining wage. That’s why the state Senate is taking bold action to help fix the status quo here in the Golden State. Our plan delivers real, lasting solutions to make our state more affordable—from housing, to utility costs, to expanding career opportunities across California. These three impactful bills should be considered an opening salvo; we know there’s much more work to do. We’re going to continue to deliver results that make a difference for Californians.

Senate President pro Tempore Mike McGuire