Keep an Eye on These 5 Deals as California Lawmakers Close Out the Legislative Session

August 13, 2026

California lawmakers face a packed August agenda as they work to finalize several major deals before adjourning on August 31st. The most pressing issue involves allocating the state's Greenhouse Gas Reduction Fund, which has become contentious after projected revenues dropped from $4 billion to potentially $2 billion annually due to new climate regulations. Other critical negotiations include potential environmental exemptions for a tech billionaire-backed development project in Solano County, wildfire liability legislation that consumer advocates claim would shield utilities and burden ratepayers, and the controversial COMPETE Act enabling private antitrust lawsuits against monopolistic businesses.

Who is affected

Governor Gavin Newsom and legislative Democrats (Senate Democrats, Assembly Budget Committee Chair Jesse Gabriel)
Companies that pollute under the carbon market system
High-speed rail project, safe drinking water programs, affordable housing programs, and transit projects at risk of losing funding
California Forever (tech billionaire-backed development group) and labor union allies
Saronics Technologies Inc. (Texas-based shipbuilder)
Solano County supervisors, farmland, and residents
Assemblymember Lori Wilson and Senator Christopher Cabaldon (representing the Solano region)
Consumer advocates, wildfire survivors, and insurers
Utility companies
Insurance policyholders
Wildfire Survivors First (utilities-funded coalition)
Senate President Pro Tem Monique Limón and Assembly Speaker Robert Rivas
Large companies subject to antitrust lawsuits
California Chamber of Commerce and business community members
Assembly Majority Leader Cecilia Aguiar-Curry (bill author)
Labor unions (California Federation of Labor Unions, SEIU California, United Food and Commercial Workers)
Los Angeles County and other counties
School districts
6,800 people who claimed abuse in Los Angeles County juvenile detention facilities
Public employee unions
Child abuse survivors
Senator John Laird

What action is being taken

Lawmakers are negotiating the climate budget allocation from the Greenhouse Gas Reduction Fund
Legislative leaders agreed to use $115 million for electric vehicle incentives and $1.25 billion to backfill the state fire department's budget
California Forever is lobbying state lawmakers and the governor's office ($455,000 spent since last year)
The governor's office called a meeting Thursday to discuss the Solano County project with supervisors, California Forever representatives, and regional lawmakers
Newsom is proposing legislation to address wildfire risks
Wildfire Survivors First is lobbying state leaders to adopt proposals from the California Earthquake Authority study
The business community and California Chamber of Commerce are opposing Assembly Bill 1776 (COMPETE Act)
Los Angeles County is leading a behind-the-scenes effort to limit child abuse lawsuits
Public employee unions are pushing for reprieve on the child abuse lawsuit law
Negotiations are taking place at the Democratic leadership level between Limón and Rivas

Why it matters

The climate fund allocation matters because significantly reduced revenues (potentially half of the $4 billion estimate) threaten funding for major legislative priorities including high-speed rail, safe drinking water, affordable housing, and transit programs. The Solano County development matters because it represents California's ability to attract major industrial investment and manufacturing jobs, though it raises concerns about bypassing local resistance and environmental regulations. The wildfire liability legislation matters because it could fundamentally change how utilities are held accountable for causing fires and shift recovery costs from utilities to insurance customers, potentially making it harder for fire victims to obtain compensation. The COMPETE Act matters because it would dramatically expand antitrust enforcement by allowing private lawsuits against monopolistic companies, which business groups claim would expose all California businesses to massive legal liability. The child abuse lawsuit limitations matter because counties and school districts face billions in settlement costs from expanded filing timeframes, potentially affecting public budgets and employee compensation.

What's next

Lawmakers have less than a month (until August 31st) to settle climate budget differences
Top leaders put off negotiations over Proposition 4 (the $10 billion climate bond)
Assembly Bill 1776 (COMPETE Act) is scheduled to be heard in the Senate appropriations committee on August 10
Negotiations on child abuse lawsuit limitations will likely take place at the Democratic leadership level between Limón and Rivas
California Forever stated "California and Solano County must not miss the next opportunity" for future development deals

Read full article from source: The San Diego Voice & Viewpoint