Legislative Update, Dec. 2025

• January 1, 2026, Statutes take effect
• January 5, 2026, Legislature reconvenes
• January 10, 2026, the Budget must be submitted by Governor
• January 16, 2026, Last day for policy committees to hear and report to fiscal committees fiscal bills introduced in their house in the odd-numbered year
• January 19, 2026, Martin Luther King, Jr. Day.
• January 23, 2026, Last day for any committee to hear and report to the Floor bills introduced in that house in the odd-numbered year. Last day to submit bill requests to the Office of Legislative Counsel.
• January 31, 2026, Last day for each house to pass bills introduced in that house in the odd-numbered year

Interim Recess, legislature reconvenes January 5, 2026.

Arizona is redefining stormwater management by using artificial groundwater recharge to combat both flooding and long-term water scarcity. This white paper explores how deep-infiltration systems move stormwater off the surface quickly while replenishing critical aquifers at rates far exceeding natural recharge. With extreme weather, drought and infrastructure risk on the rise, Arizona’s model offers engineers a proven, scalable approach to protecting communities while strengthening groundwater resilience. Report

The Little Hoover Commission released, “The High Cost of Electricity in California,” finds “California should redesign its electricity rate structure to increase a newly adopted fixed charge, ease burdens in hotter regions and distribute costs more equitably,” recommendations include: “require a feasibility study and criteria-based framework for shifting some costs to non-ratepayer funding sources;” “mandate timely completion of General Rate Cases before the test year begins;” “task the State Treasurer’s Office with providing independent analysis for Cost of Capital proceedings;” “simplify and accelerate clean energy grant processes;” and “direct the State Auditor to evaluate California Public Utilities Commission staffing levels and expertise.”

Air Resources Board released “the latest edition of the California’s greenhouse gas emissions inventory,” which “shows a three percent drop in statewide emissions – the third largest annual percentage decrease since tracking began in 2000,” states “the drop was primarily driven by reductions from the transportation sector, specifically a dramatic 17 percent decline from heavy-duty trucks due to the increased use of biofuels driven by the state’s Low Carbon Fuel Standard;” also states “the residential and commercial sector had a rise in emissions, largely because of an increase in residential fossil gas use which was likely due to a colder winter in 2023.”

Next 10 released report from UC Riverside, “An Assessment of California Data Centers’ Environmental and Public Health Impacts,” findings include that “between 2019 and 2023, electricity use by California data centers increased by 95%, with projections showing demand could rise as much as 356% above 2019 levels by 2028;” meanwhile “greenhouse gas emissions from data center operations are still climbing, primarily due to the grid’s continued reliance on natural gas plants,” also finds “total evaporated water, including both direct evaporation for cooling and indirect evaporation for electricity generation, used by California data centers increased by more than 96% to 49.9 billion liters, enough to fill 20,000 Olympic-sized swimming pools.”

Public Policy Institute of California released, “Priorities for California’s Water,” identifies “three priority research areas to improve water policy and management in California:” 1. “accounting for water,” says “nimble tools and timely data—namely, robust accounting systems—are needed to meet day-to-day management challenges, implement solutions, and measure success;” 2. “paying for water,” says “thriving under changing conditions will require creative funding vehicles and partnerships to shore up water supplies and build resilient water system services while maintaining affordability;” and 3. “building climate resilience,” says “recent advances in our understanding of how climate and water management systems interact in California need to be translated into tools that support planning, prioritize solutions, and help prepare for natural disasters;” also recommends that the Natural Resources Agency and Environmental Protection Agency “coordinate a review of research and monitoring programs funded by the state, local governments, and water user communities to examine whether these efforts could be expanded to address critical gaps in federal support for services that impact water management and climate resilience.”

Legislative Analyst’s Office released “The 2026-27 Budget: California’s Fiscal Outlook,” finds “an almost $18 billion budget problem in 2026-27,” which is “about $5 billion larger than the budget problem anticipated by the administration in June, despite improvements in revenue;” also says it is “not safe to bet artificial intelligence fueled exuberance is sustainable” and “it now appears time to take seriously the notion that the stock market is overheated.” Contact: information@lao.ca.gov.

California Center for Jobs & the Economy released, “How Much Does the California Budget Depend on High-Income Earners?” says “high earner” contributions vary year by year, but “the high point was reached in tax year 2021 when taxpayers with an adjusted gross income (AGI) of $1 million or more (0.9% of all taxpayers) paid 49.2% of all personal income tax (PIT), equivalent to 27.7% of all general fund revenues,” also finds number of high earner households that left the state in 2022, the most recent data year, was 48,875, a 7.2% increase compared to 2021. Those household took “with them a total AGI of $31.5 billion,” which “was partially offset by a rise in the number of high earners moving into the state, rising to 24,205 with total AGI of $15.5 billion.”

By Governor

Require Senate confirmation.

To the Transportation Commission: Paulette Brown-Hinds, Riverside, no party preference, founder of Voice Media Ventures since 2004. Salary: $100 per diem.

To the South Coast Air Quality Management District Board: Cedric “Jamie” Rutland, Lake Forest, Democrat, medical director at West Coast Lung – Rutland Medical Group since 2019. Salary: $100 per diem.

Do not require Senate confirmation.

As senior policy advisor, Air Resources Board: Jane Sadler, Sacramento, Democrat, senior associate of state policy at Rocky Mountain Institute since 2024. Salary: $140,004.

To the Architects Board: Kasheica McKinney, Oakland, Democrat, director of transit-oriented development at Bay Area Rapid Transit District since 2024.