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20 Years of California Climate Law: Gov. Newsom and Former Gov. Schwarzenegger Lead Milestone Celebration

Gov. Gavin Newsom and former Gov. Arnold Schwarzenegger recently gathered at the California Economic Summit to mark the 20th anniversary of the Global Warming Solutions Act. The bipartisan celebration highlighted how the landmark law established a framework for reducing greenhouse gas emissions through the state’s cap-and-invest program. While the governors credited these policies with fostering clean-energy innovation and driving economic growth, critics continue to raise concerns regarding the impact of environmental regulations on energy affordability for residents. Read more to learn about the state’s climate milestones.

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Gov. Gavin Newsom, Long Beach Mayor Rex Richardson and former California Governor Arnold Schwarzenegger. Photo courtesy of Gov. Newsom’s office.

California Gov. Gavin Newsom and former Gov. Arnold Schwarzenegger celebrated two decades of the state’s landmark climate law on Wednesday, Oct. 14, highlighting California’s efforts to reduce greenhouse gas emissions while growing its economy and expanding clean-energy investment.

The Democratic governor and Republican former governor appeared together at the 15th annual California Economic Summit in Long Beach to mark the 20th anniversary of Assembly Bill 32, the Global Warming Solutions Act, which Schwarzenegger signed in September 2006. The law established a framework for reducing California’s greenhouse gas emissions and helped lay the groundwork for the state’s cap-and-invest program.

“We’ve shown the world what a state can accomplish,” Schwarzenegger said, highlighting California’s climate leadership.

Newsom credited Schwarzenegger’s decision to sign AB 32 with helping create the state’s cap-and-invest program, which requires companies to reduce their emissions, purchase allowances, or fund projects that offset pollution. Revenue from the program supports climate initiatives, affordable housing and transportation projects, as well as electricity bill credits for residents.

Newsom said California has reinvested $16 billion to offset residents’ electricity costs since the program began and expects to receive another $8 billion over the next four years.

He also argued that predictable climate policies encourage businesses to invest in California’s clean-energy economy, pointing to Tesla as an example of the opportunities the state’s regulatory framework created.

“There’s no Elon Musk without what Gov. Schwarzenegger did because there would be no Tesla,” Newsom said.

Schwarzenegger agreed that long-term policy certainty helps attract investment, arguing that California’s climate initiatives demonstrate that environmental protections and economic development can advance together.

The state extended its cap-and-invest program through 2045 last year, giving businesses a longer-term framework for planning investments and meeting emissions requirements.

However, California’s approach continues to face criticism over energy affordability and regulatory costs. Wayne Winegarden, a senior fellow at the Pacific Research Institute, argued that assessments of the state’s climate policies should better account for the high energy costs Californians face. Critics have also questioned how much of the state’s economic growth can be directly attributed to its environmental regulations.

The governors’ joint appearance underscored their shared support for climate action despite their political differences. Schwarzenegger has criticized Newsom’s support for Proposition 50, the 2025 redistricting measure that temporarily allowed California lawmakers to redraw congressional districts.

The anniversary comes as California continues to pursue emissions reductions and clean-energy investment while facing questions about the cost of its climate policies for households and businesses.

Business

Fate of Bay Area Public Transit Hinges on Regional Transit Measure

Voters in five Bay Area counties will decide the fate of a regional sales tax measure on Nov. 3 that could determine the future of local public transportation. If approved, the Regional Transit Measure would implement new sales taxes in Alameda, Contra Costa, San Mateo, Santa Clara, and San Francisco counties starting in 2027. The funding aims to address massive financial deficits facing agencies like BART and Muni, providing nearly $1 billion annually to prevent station closures and service cuts. Read more.

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On Nov. 3, voters in five Bay Area counties will vote on a regional sales tax measure that, if it fails, could prompt local transit agencies to close train stations and cut bus service.

If passed, the Regional Transit Measure, or RTM, will impose a half-cent sales tax in Alameda, Contra Costa, San Mateo, and Santa Clara counties as well as a one-cent sales tax in San Francisco starting April 2027.

The tax would raise an estimated $980 million annually for 14 years to fund the region’s public transit agencies, which are struggling with massive financial deficits. Revenue would go to BART, Muni, Caltrain, Alameda-Contra Costa Transit, the Santa Clara Valley Transportation Authority, the San Francisco Bay Ferry, Golden Gate Transit, and other transportation agencies operating in the five counties.

In California, a regional measure for a new sales tax would normally require a two-thirds majority approval if the state Legislature directly places it on a ballot. Transit advocates, however, chose to collect signatures to make the sales tax a citizen-initiated ballot measure that would lower the threshold to a simple majority of votes cast across the five counties.

The RTM received more than 241,000 signatures, exceeding the 186,000-signature threshold required to qualify for the ballot.

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Economy

Mayor Lee Delivers 2026 State of the City Address: ‘Oakland Continues to Be on the Move’

To create a police force that better serves and protects Oakland, the city is working toward the goal of reaching 700 sworn police officers, she said. These steps include recruiting from Oakland, holding academies, reinstituting a cadet program, and increasing foot patrols.

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Mayor Barbara Lee.

Mayor Barbara Lee, speaking this week to Oakland residents and elected leaders in City Council chambers, delivered the annual mayoral State of the City Address, highlighting the city’s accomplishments as well as the challenges Oakland is facing going forward.

Lee began her remarks praising city workers, who picketed outside City Hall before the meeting, and are currently negotiating with the city for a wage increase and ending understaffing that leaves many departments shorthanded.

“We are working very hard (not) just to get a contract, but to get a fair contract,” she said. “I know that our City Council and myself are working constantly toward that end.”

The mayor also praised Councilmember Carroll Fife for her legislation for a 45-day moratorium on data center construction, which passed unanimously at the council meeting Tuesday following Lee’s presentation.

Speaking bluntly, she said, “Oakland continues to be a city on the move, (but) I want to tell you the truth about the state of our city.”

“We have made real progress, and we still face real challenges.”

She said the city has balanced its budget but has a structural deficit, which is decreasing, and must operate within the context of federal funding cuts.

“Too many Oaklanders are unhoused, too many families are struggling with the cost of living, and too many neighborhoods still need basic services that they deserve, and too many people are living in fear,” Mayor Lee said.

“We’re not sweeping these realities under the rug,” she continued. “We are being intentional and transparent about how we must face these challenges, but we will not ignore our progress.”

Substantial progress includes:

• Bringing crime down;

• Building affordable and deeply affordable housing;

• Cleaning the streets and fixing the roads;

• Helping small businesses.

“We are bringing new investment to Oakland,” she said. “We’re making City Hall work better. There’s more to do, but make no mistake, Oakland is on the move.”

Speaking broadly about the city’s public safety initiatives, she said that crime continues to decline. Burglaries fell by 26%, and violent crime fell by 17%.

In recent years, homicides and shootings have fallen by double digits, and gun violence has dropped by more than 50% in the last 33 months.

“These aren’t just statistics: these are lives. These are families. These are people who never made it home,” Mayor Lee said.

She talked about what to expect now that federal court oversight of the Oakland Police Department ended last week after 23 years. “Ending federal oversight does not mean ending accountability; quite the opposite,” she said. “Accountability and civilian oversight must remain our standard. Community trust must be our standard.”

Mayor Lee also emphasized that Oakland remains a city of refuge.

“We do not work with ICE; we do not cooperate with ICE; our police do not cooperate with ICE; we will not be militarized,” she said.

The mayor also emphasized that investing in youth is a top priority of her administration and should be considered a public safety strategy.

“We advocated for almost $2 million to restore the mayor’s youth summer employment program,” she said. “We connected youth with Oakland businesses to develop skills that will support them for years to come, and that’s a big deal.”

To create a police force that better serves and protects Oakland, the city is working toward the goal of reaching 700 sworn police officers, she said. These steps include recruiting from Oakland, holding academies, reinstituting a cadet program, and increasing foot patrols.

The city also is strengthening other programs, including the Department of Violence Prevention and Ceasefire, she said. “We must have this comprehensive public safety strategy, because we must also prevent violence before it happens.”

Continuing, Lee said public safety is connected to unsanitary conditions in city neighborhoods.

“Illegal dumping is unacceptable, and it’s a moral disgrace,” she said. “No child should have to walk past piles of garbage on their way to school; no senior should have to live next to it; no small business should have to clean it up outside its door.”

She said the city is changing the way it fights illegal dumping, securing a $9.2 million investment to develop a new strategy. “We’re not just cleaning it up; we’re working to stop it before it starts. We have the three E’s – Eradication, enforcement, and education,” she said.

Focusing on the continuing crisis of Oakland’s unhoused residents, she said, “We consider housing a basic human right, and homelessness remains one of Okland’s greatest challenges.”

“There are two things we must do: keep people from becoming unsheltered and help people who are unsheltered get back into housing with services that they need,” Lee said.

Since 2024, homelessness in Oakland has fallen by 20%, she said. In the past year prevention programs helped keep 1,000 families in their homes, and over 1,300 affordable homes opened over the past two years.

Addressing community tensions over encampments, she said, “We should never have to choose between compassion for people experiencing homelessness and the health and safety of our neighborhoods.”

“A strong city has to deliver both,” she said. “That’s the work we’re advancing through Oakland’s new homelessness strategic action plan.”

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Business

Marin County Supes Expand Small Business Options with Home Kitchen Pilot Program

“This will deliver immediate financial relief to entrepreneurs in areas like Marin City, West Marin and the Canal neighborhood, removing barriers right where economic opportunity is needed the most,” said Shannon Bell, consumer protection supervisor with Marin County Environmental Health Services, at the meeting.

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A plate of food is served in an undated photo. The Marin County Board of Supervisors adopted a three-year pilot program allowing cooks and food entrepreneurs to prepare and sell meals from their homes through the Microenterprise Home Kitchen Operation, or MEHKO, program. Mika Ruusunen/Marin County via Bay City News.

The Marin County Board of Supervisors adopted a three-year pilot program that will allow cooks and food entrepreneurs to prepare and sell meals from their homes on Sept. 29

The Microenterprise Home Kitchen Operation program, or MEHKO, will establish a permitting process for small-scale home food businesses. California state law allows licenses if local governments opt in.

“This will deliver immediate financial relief to entrepreneurs in areas like Marin City, West Marin and the Canal neighborhood, removing barriers right where economic opportunity is needed the most,” said Shannon Bell, consumer protection supervisor with Marin County Environmental Health Services, at the meeting.

MEHKO licenses fill the gap between cottage food permits, which only apply to non-potentially hazardous foods like baked goods and jams, and full commercial kitchens.

Microenterprises can serve as commissaries for up to two mobile food operations; they require food to be prepared and served the same day. They are exempt from commercial facility requirements, such as industrial grease traps and commercial stove hoods.

The program allows takeout or on-site dining with strict limits of 30 meals per day, or 90 meals per week, and an annual sales cap of $100,000.

The pilot would begin March 1, 2027, and permits would be capped at 100 per year. Application fees are $725 with an annual renewal fee of $414, but fee waivers for a third of the permits are reserved for low-income communities.

After two years, supervisors will consider making the program permanent.

“By eliminating the need for commercial leases and expensive equipment, entrepreneurs can safely test their businesses and ideas with minimal financial risk,” Bell said. According to statewide data from the Cook Alliance, 85% of MEHKO operators are women, immigrants, and people of color, and over 70% rely on this income to support their families, she said.

Bell also said unpermitted sales are already happening in areas like the Canal.

Local Vendors Seek a Legal Path

Marina Palma advocates for San Rafael’s Canal neighborhood, which is home to a vulnerable community of over 13,000 low-income residents. About 84% are Latino and roughly half of all households spend more than 50% of their income on housing.

Palma told the board that the pandemic caused many Canal residents to lose their jobs, and that’s why the neighborhood has so many vendors selling food in public. Because they have no license, enforcement actions can be harsh.

“They have really high tickets of $600, and their food has been thrown away,” said Palma.

She said MEHKO would help vendors get an official license, but she questions whether vendors will need a Social Security number and be legally in the country.

According to the home-chef’s national nonprofit Cook Alliance, MEHKO applicants need no proof of citizenship nor a Social Security number to obtain a permit.

“I’m from Mexico, and I’m one of the mobile vendors,” said Elsie Vega through a Spanish translator. “I have two jobs. Everything is pricey — house, food, everything. I am here to work hard, to pay taxes. I don’t make enough money to pay the community kitchens.”

MEHKO license holders must pass inspection under the oversight of the Marin County Department of Environmental Health Services and comply with local zoning, parking and noise ordinances.

California authorized MEHKO programs in 2019. Seventeen counties have since adopted them, including Sonoma, San Mateo, Solano, Contra Costa, Alameda and Santa Clara counties.

Other commenters who spoke in favor of the program represented a range of food system and small business organizations. They included the Agricultural Institute of Marin, which operates nine Bay Area farmers markets, the University of California Cooperative Extension, the Cook Alliance, the West Marin Food Systems Group, which coordinates farm-to-school food access, and the Marin Small Business Development Center.

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