AB-23
Energy & Environment

The Cost of Living Reduction Act of 2025.

Introduced
CA
2025-2026 Regular Session
0
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Key Takeaways

  • 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.

Summary

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.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Utilities and Energy
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Utilities and Energy
Hearing has not been scheduled yet
Introduced
Assembly Floor
Introduced
Read first time. To print.

Contacts

Profile
Jacqui IrwinD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Ash KalraD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Phillip ChenR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Tasha Boerner HorvathD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Cottie Petrie-NorrisD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 19 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Jacqui IrwinD
Assemblymember
Committee Member
Profile
Ash KalraD
Assemblymember
Committee Member
Profile
Phillip ChenR
Assemblymember
Committee Member
Profile
Tasha Boerner HorvathD
Assemblymember
Committee Member
Profile
Cottie Petrie-NorrisD
Assemblymember
Committee Member
Profile
Lisa CalderonD
Assemblymember
Committee Member
Profile
Gregg HartD
Assemblymember
Committee Member
Profile
Joe PattersonR
Assemblymember
Committee Member
Profile
Diane PapanD
Assemblymember
Committee Member
Profile
Pilar SchiavoD
Assemblymember
Committee Member
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Rick ZburD
Assemblymember
Committee Member
Profile
Greg WallisR
Assemblymember
Committee Member
Profile
Carl DeMaioR
Assemblymember
Bill Author
Profile
Mark GonzalezD
Assemblymember
Committee Member
Profile
John HarabedianD
Assemblymember
Committee Member
Profile
Chris RogersD
Assemblymember
Committee Member
Profile
Nick SchultzD
Assemblymember
Committee Member
Profile
David TangipaR
Assemblymember
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Carl DeMaio
Carl DeMaioR
California State Assembly Member
10% progression
Bill has been formally introduced and read for the first time in its house of origin (12/2/2024)

Key Takeaways

  • 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.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Carl DeMaio
Carl DeMaioR
California State Assembly Member

Summary

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.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (12/2/2024)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Utilities and Energy
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Utilities and Energy
Hearing has not been scheduled yet
Introduced
Assembly Floor
Introduced
Read first time. To print.

Contacts

Profile
Jacqui IrwinD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Ash KalraD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Phillip ChenR
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Tasha Boerner HorvathD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Cottie Petrie-NorrisD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 19 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Jacqui IrwinD
Assemblymember
Committee Member
Profile
Ash KalraD
Assemblymember
Committee Member
Profile
Phillip ChenR
Assemblymember
Committee Member
Profile
Tasha Boerner HorvathD
Assemblymember
Committee Member
Profile
Cottie Petrie-NorrisD
Assemblymember
Committee Member
Profile
Lisa CalderonD
Assemblymember
Committee Member
Profile
Gregg HartD
Assemblymember
Committee Member
Profile
Joe PattersonR
Assemblymember
Committee Member
Profile
Diane PapanD
Assemblymember
Committee Member
Profile
Pilar SchiavoD
Assemblymember
Committee Member
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Rick ZburD
Assemblymember
Committee Member
Profile
Greg WallisR
Assemblymember
Committee Member
Profile
Carl DeMaioR
Assemblymember
Bill Author
Profile
Mark GonzalezD
Assemblymember
Committee Member
Profile
John HarabedianD
Assemblymember
Committee Member
Profile
Chris RogersD
Assemblymember
Committee Member
Profile
Nick SchultzD
Assemblymember
Committee Member
Profile
David TangipaR
Assemblymember
Committee Member