California’s climate activism has hit a wall in the legislature, with The LA Times reporting that both Senate Bill 684 and Assembly Bill 1243 “have been put on hold until next year.” [emphasis, links added]
Touted as the “Polluters Pay Climate Superfund Act,” the bills sought to impose retroactive fees on the largest fossil fuel producers operating in California based on alleged climate liability.
Despite gaining momentum earlier this year, both bills have stalled in Sacramento, with lawmakers quietly shelving them amid rising consumer energy costs and likely legal challenges.
Climate Superfund Bills Lack Support From Within
Introduced in February 2025 after January’s devastating wildfires, SB 684 and AB 1243 quickly lost steam. Both cleared initial committee hearings but never advanced to a floor vote, and ultimately, sponsors Rep. Dawn Addis and Sen. Caroline Menjivar postponed further hearings.
As EID Climate previously noted, Sen. Caroline Menjivar even admitted to pulling the bill once it risked becoming a mere study bill, signaling weak support from the start.
This marks the second year in a row that Menjivar has failed to advance a Climate Superfund bill in the Senate.
The lack of support reflects shifting priorities in the Golden State, where centrist Democrats have softened on strict climate policies, acknowledging that affordability and economic growth, not retroactive climate measures, are now top concerns.
Superfund Model Hits a Legal Wall
California is not alone in considering a Climate Superfund legislation. Vermont became the first state to enact a climate superfund law in 2024, followed by New York in December.
Ten additional states are weighing similar measures.
However, in May 2025, the U.S. Justice Department sued both New York and Vermont to block their Climate Superfund laws, citing constitutional issues, including federal preemption under the Clean Air Act, interference with foreign affairs, and interstate commerce.
Attorney General Pam Bondi called the laws “burdensome and ideologically motivated,” warning they “threaten American energy independence and our country’s economic and national security.”
Rising California Energy Costs
California already faces some of the highest energy prices in the country, with electricity rates rising from roughly 30% higher than the national average in 2015 to over 80% higher in 2024, driven in part by aggressive climate programs.
Earlier this year, the California Chamber of Commerce warned in a letter to lawmakers that the bills would “introduce significant regulatory uncertainty” that would “likely worsen California’s affordability crisis” as costs are passed to consumers and businesses.
An analysis by the California Center for Jobs & the Economy shows that the Climate Superfund bills would act as a “de facto carbon tax,” with significant economic impacts directly stemming from SB 684/AB 1243:
- Gasoline prices up 43%
- Industrial natural gas rates up to 117%, 52% for households
- Electricity rates increase between 8 and 16%
- Household costs to rise by about $3,400 per year
- California’s GDP would shrink by $30.5 billion annually through 2046
Bottom Line: California’s Climate Superfund efforts are stuck in limbo. While other states may push ahead with “polluters pay” bills, Sacramento appears to have made the right choice by prioritizing energy affordability and security for its residents.
Whether California revisits a Climate Superfund bill in the future, against its economic interests, remains to be seen.
Read more at EID Climate
Stupid-Fund can anyone remember the last Superfund Disaster and the Toxic Wate debacle