The Cost of Living Reduction Act of 2025.
Vote required
Two Thirds
Fiscal committee
No
Appropriation
No
Current location
Utilities and Energy
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
The Cost of Living Reduction Act of 2025 aims to lower California’s high cost of living through several measures. It directs the Public Utilities Commission (PUC) and the State Energy Resources Conservation and Development Commission to track and report on energy prices, suspend certain taxes and fees on gasoline and utilities when prices exceed national averages, and establish a fund to provide rebates to households. The Little Hoover Commission is tasked with examining ways to reduce the cost of living across various sectors. Finally, the bill prohibits utilities from implementing new fixed charges.
Key provisions
- Requires the PUC to post monthly dashboards comparing California’s gasoline and electricity prices to national averages.
- Suspends state taxes and fees on gasoline and utilities when prices exceed 10% of the national average.
- Establishes a Cost of Living Reduction Fund to provide rebates to households, with a maximum of $2,500 per household.
- Requires the Energy Commission to develop a rebate methodology for Californians.
- Directs the Little Hoover Commission to study and report on cost-saving measures to reduce the cost of living.
- Prohibits the PUC and local publicly owned electric utilities from adopting new fixed charges.
- Suspends cap-and-trade requirements for oil refineries, electrical corporations, and gas corporations when prices exceed 10% of the national average.
- Requires the State Air Resources Board to suspend cap-and-trade collection when prices exceed 10% of the national average.
Bill text
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Sponsors
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1 on record
Primary sponsor
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