Sacramento, Calif. – September 25, 2026 -- California cut statewide greenhouse gas emissions by 23.3% between 2006 and 2023 while GDP per capita rose 41%, according to a new report from Next 10 marking two decades since Assembly Bill 32 became law.
California's clean-energy sector now employs 552,300 workers, nearly double Texas
The report, "Twenty Years of AB 32: California's Landmark Climate Law and Its Legacy," credits the 2006 law—signed by then-Governor Arnold Schwarzenegger—with establishing the nation's first economy-wide emissions cap and laying the groundwork for the state's Cap-and-Invest program. California led all U.S. states with 552,300 clean-energy jobs in 2024, nearly twice the total in second-ranked Texas.
Cap-and-Invest revenue returned more than $16 billion to residents via bill credits
Of $15.5 billion deployed through California Climate Investments between 2014 and 2025, 76% benefited disadvantaged and low-income communities. California Climate Investments have cut energy and fuel costs by an estimated $38.1 billion to date, including $5.2 billion in 2024 alone, with climate-funded projects projected to generate $44 billion in lifetime savings on energy and transportation expenses.
Solar supplied 51% of California's electricity for a full month in May 2026
California became the first major economy to source more than half its electricity from solar over a full calendar month, the report found. Battery storage capacity reached over 21,000 megawatts by mid-2026, a 2,500% increase since 2019 and 41% of the way toward the state's 2045 storage target. Electricity-sector emissions fell 45.2% between 2006 and 2023, driven by a 70.9% drop in emissions from imported power.
Transportation emissions dropped 26.7% as heavy-duty vehicle pollution fell 45.3%
California met its initial target of returning emissions to 1990 levels four years ahead of schedule. Passenger-vehicle emissions fell 19.7% and heavy-duty vehicle emissions fell 45.3% between 2006 and 2023. Energy-efficiency standards dating to the 1970s have saved consumers more than $200 billion, with the 2025 California Energy Code projected to add $4.8 billion in savings over 30 years.
Affordable housing program cuts renter costs by $10,566 per household annually
The Affordable Housing and Sustainable Communities Program has built 20,361 affordable homes, with residents saving an average of $10,566 per household each year in rent, the report states.
Matt Petersen, president and CEO of the Los Angeles Cleantech Incubator, said the law's early signal helped entrepreneurs attract private investment and build a clean-energy innovation economy. Next 10 founder F. Noel Perry said future policy must be judged on whether it lowers household costs and protects ratepayers, not solely on emissions reductions, calling affordability the critical factor for sustaining the state's clean-energy transition.