The final days of the California legislative session saw a flurry of late-breaking negotiations and high-profile deals as lawmakers raced to wrap up major policy debates. Now, with the Legislature adjourned, Governor Newsom has until October 12 to sign or veto bills, and SVLG is closely tracking the latest developments in Sacramento to ensure the voice of the innovation sector is heard.
Promoting Modern Energy Infrastructure for California — Assembly Bill 825
Leading the way – AB 825, recently passed by the Legislature and signed into law by Governor Newsom. The measure establishes “pathways” for regional energy resilience planning across California and promotes a forward-thinking approach to grid reliability. Most importantly, AB 825 represents a major step toward building the modern energy infrastructure California needs to maintain its leadership as a global center of innovation, while helping to lower costs and accelerate progress on state climate goals.
SVLG CEO Ahmad Thomas joined Governor Newsom at the bill signing, underscoring SVLG’s longstanding commitment to promoting a cleaner and more reliable energy future for California. We’re thankful for the efforts of Governor Gavin Newsom and the Legislature to enact this bill into law.
Supporting Sustainable Policy Solutions
Additionally, California lawmakers advanced a significant package of bills, aimed at reducing greenhouse gas emissions and expanding the regional electricity market. SVLG specifically advocated for the clean tech research funding component which was ultimately folded into the broader cap‑and‑trade reauthorization package.
SVLG, together with our academic and industry partners, has long advocated for smart investments in climate initiatives that promote clean technologies, enhance energy reliability, and keep California at the forefront of innovation. By helping to secure dedicated clean tech research funding within this package, SVLG helped maintain the state’s continued leadership on clean energy development and sustainable growth.
Advancing Key Housing Legislation
California’s competitiveness also depends on addressing another challenge: the housing crisis. For decades, SVLG has advocated for pragmatic solutions to build more housing, with a particular focus on high‑density, mixed‑use development near major transit corridors.
That’s why we’re proud to celebrate a key legislative victory: the passage of SB 79. Approved with bipartisan support and now on its way to Governor Newsom’s desk, SB 79 will make it easier to build housing around transit, helping unlock growth in multi‑family housing units. Once enacted, the bill will lower transportation and housing costs for California families while advancing sustainability and fueling economic opportunity.
SVLG applauds Senator Wiener for his leadership on this critical issue – one that impacts both businesses and workers across Silicon Valley and the Bay Area region.
Tax legislation to advance California competitiveness
Waiting for the Governor’s signature are two bills supported by SVLG that will improve California’s tax competitiveness. SB 711 will update California’s Revenue and Taxation Code to conform to most of the federal Internal Revenue Code changes between 2015 and 2025. This conformity bill will simplify tax compliance and administration for California taxpayers. In addition, SB 302 will specifically conform California tax law to provisions of the federal Inflation Reduction Act of 2022 that created new rules to allow for clean energy tax credits to be transferred among taxpayers to expand investment in the clean energy sector.
Opposing legislation that would stifle innovation
As part of SVLG’s continued advocacy for the Bay Area’s innovation economy and business competitiveness, we have also opposed legislation that risks harming the continued growth of our economy.
The most notable – AB 222, which would have required developers of large AI systems, including data centers, to comply with onerous reporting requirements. By singling out data centers, the bill risked driving AI leaders out of California. SVLG played a key role in helping defeat this bill.
SVLG also helped defeat AB 1018, a measure that would have imposed steep compliance costs on developers of Automated Decision Systems (ADS) like AI. Together, these efforts underscore SVLG’s key role in protecting innovation in the state.
We continue to closely track one bill of particular concern, AB 1064: An AI safety proposal requiring providers to shoulder heavy compliance burdens while disclosing sensitive proprietary information. And although SB 53 was signed into law, we will continue to work with the Governor and leaders in the Legislature to ensure that new laws and regulations don’t impose undue burdens on the most innovative companies in the world.
SVLG remains committed to advocating for policies that seek to responsibly scale this transformative technology at this pivotal juncture and to unleash a new wave of innovation and growth. More than ever, it’s vital that we strengthen California’s role as the global leader in AI and the epicenter of innovation.
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