The Cost of Living Reduction Act of 2025.
- Requires state agencies to track and publicly report when California energy prices exceed national averages.
- Suspends state gas and utility fees for 6 months when prices exceed national averages by 10%.
- Provides rebates up to $2,500 to eligible households when energy costs exceed national averages by 10%.
- Prohibits utilities from charging new or increased fixed fees on customer bills starting 2026.
Assembly Member DeMaio's Cost of Living Reduction Act aims to address California's energy costs through price monitoring, automatic fee suspensions, and consumer rebates. The legislation requires the Energy Commission and Public Utilities Commission to maintain public dashboards comparing California's gasoline, electricity, and natural gas prices to national averages, while identifying state-specific factors contributing to price differences.
When California's energy prices exceed national averages by more than 10% in a quarter, the bill triggers automatic six-month suspensions of various fees and taxes. For gasoline, this includes state fuel taxes, sales taxes, and environmental fees. For utilities, it suspends charges on electricity and natural gas bills. The legislation also pauses cap-and-trade program requirements for affected oil refineries and utilities during these periods.
The bill establishes a Cost of Living Reduction Fund to provide rebates to eligible households when energy prices remain elevated. Households earning up to $120,000 (married) or $65,000 (single) may receive up to $2,500 in rebates, funded through transfers from the Greenhouse Gas Reduction Fund. Additionally, the measure prohibits both the Public Utilities Commission and local publicly owned utilities from adopting new fixed charges on utility bills after January 1, 2026.
The Milton Marks "Little Hoover" Commission must evaluate the program's effectiveness by January 2027, examining its potential application to other sectors like insurance, housing, healthcare, and water utilities. The legislation requires no reimbursement to local agencies, as its mandates relate solely to changes in criminal statutes.
This bill was recently introduced. Email the authors to let them know what you think about it.
Introduced By
 Jacqui IrwinD Assembly Member | Committee Member |  Not Contacted | |
 Ash KalraD Assembly Member | Committee Member | Not Contacted | |
 Phillip ChenR Assembly Member | Committee Member | Not Contacted | |
 Tasha Boerner HorvathD Assembly Member | Committee Member | Not Contacted | |
 Cottie Petrie-NorrisD Assembly Member | Committee Member | Not Contacted |
- Requires state agencies to track and publicly report when California energy prices exceed national averages.
- Suspends state gas and utility fees for 6 months when prices exceed national averages by 10%.
- Provides rebates up to $2,500 to eligible households when energy costs exceed national averages by 10%.
- Prohibits utilities from charging new or increased fixed fees on customer bills starting 2026.
This bill was recently introduced. Email the authors to let them know what you think about it.
Introduced By
Assembly Member DeMaio's Cost of Living Reduction Act aims to address California's energy costs through price monitoring, automatic fee suspensions, and consumer rebates. The legislation requires the Energy Commission and Public Utilities Commission to maintain public dashboards comparing California's gasoline, electricity, and natural gas prices to national averages, while identifying state-specific factors contributing to price differences.
When California's energy prices exceed national averages by more than 10% in a quarter, the bill triggers automatic six-month suspensions of various fees and taxes. For gasoline, this includes state fuel taxes, sales taxes, and environmental fees. For utilities, it suspends charges on electricity and natural gas bills. The legislation also pauses cap-and-trade program requirements for affected oil refineries and utilities during these periods.
The bill establishes a Cost of Living Reduction Fund to provide rebates to eligible households when energy prices remain elevated. Households earning up to $120,000 (married) or $65,000 (single) may receive up to $2,500 in rebates, funded through transfers from the Greenhouse Gas Reduction Fund. Additionally, the measure prohibits both the Public Utilities Commission and local publicly owned utilities from adopting new fixed charges on utility bills after January 1, 2026.
The Milton Marks "Little Hoover" Commission must evaluate the program's effectiveness by January 2027, examining its potential application to other sectors like insurance, housing, healthcare, and water utilities. The legislation requires no reimbursement to local agencies, as its mandates relate solely to changes in criminal statutes.
Jacqui IrwinD Assembly Member | Committee Member | Not Contacted | |
Ash KalraD Assembly Member | Committee Member | Not Contacted | |
Phillip ChenR Assembly Member | Committee Member | Not Contacted | |
Tasha Boerner HorvathD Assembly Member | Committee Member | Not Contacted | |
Cottie Petrie-NorrisD Assembly Member | Committee Member | Not Contacted |