Cost Drivers Fail to Move; Cost Cutters Still Alive
Affordability Agenda Update
Strong opposition from the California Chamber of Commerce and allied groups stopped several Cost Driver bills from advancing beyond the house in which they were introduced this year.
Legislation not moving dealt with the authority of the air resources board, employer hiring decisions and the use of technology by utility companies.
Below are brief summaries of the failed Cost Drivers, as well as the few Cost Cutter bills that remain alive.
• AB 1777 (Garcia; D-Rancho Cucamonga) Grants California Air Resources Board (CARB) Sweeping New Authority to Regulate Indirect Sources Statewide. Would have authorized broad, undefined statewide regulation of facilities that attract mobile sources of emissions, driving new compliance costs across key sectors and increasing prices for goods and services. To Assembly Inactive File 5/28/2026.
• AB 2095 (Lee; D-San Jose) Expands Fair Chance Liability and Restricts Employer Hiring Discretion. Would have created problematic changes to the Fair Chance Act, including a presumption that an applicant may not be denied a position if they have completed a sentence or possess a certificate or license for the position, regardless of the facts or circumstances of any prior convictions. To Assembly Inactive File 5/28/2026.
• SB 1011 (McNerney; D-Pleasanton) Limits Use of Technology by Utilities. Would have placed significant burdens on utilities’ use of automated decision systems, which would impact systems already in widespread use to manage distribution systems as well as critical systems used to provide rapid emergency responses. To Senate Inactive File 5/28/2026.
Cost Cutters
Continuing to move through the Legislature are the following Cost Cutters:
• AB 2124 (Pacheco; D-Downey) Improves How the Legislature Evaluates the Cost of Energy Policy Decisions through Independent Ratepayer Impact Review. Supports more cost-effective policymaking by creating a framework for independent evaluation of proposed legislation that imposes costs on utility customers, helping identify unnecessary or duplicative programs and reducing future rate pressure. Passed Assembly; referred to Senate policy committee.
•AB 1693 (Zbur; D-Hollywood) Accelerated Building Plan Approval. Tenant Improvements. Streamlines permitting for tenant improvements at retail locations, while ensuring compliance with all applicable building, health, and safety requirements. Passed Assembly; referred to Senate policy committee.
• SB 84 (Niello; R-Fair Oaks) Right to Cure. Provides businesses with time to cure an alleged Americans with Disabilities Act (ADA) violation to curb frivolous litigation. Two-Year Bill. In Assembly policy committee 6/18/2025.