As climate change continues to threaten California in 2025 — from devastating wildfires, declining kelp forests and struggling salmon runs to shrinking snowpack in the Sierra Nevada — the state has rolled out a range of measures to confront the crisis. These efforts come at a time when the federal government has prioritized fossil fuels and questioned the scientific consensus on climate change.

At the same time, California itself has faced growing scrutiny over policies critics say fall short on climate considerations, particularly those aimed at boosting the tech sector and accelerating development at the expense of environmental protections.

The Sacramento Bee has listed five vital incoming environmental and climate issues to watch for next year, as California seeks to assert its climate leadership.

1. Changes to federal solar tax credits

Congress passed a sweeping budget reconciliation law — known as the “One Big Beautiful Bill” — in July that rolled back and tightened federal clean energy tax credits, including incentives for solar projects. While it did not eliminate solar tax credits outright, it put hard limits on who can still qualify, making July 4, 2026, the deadline for most solar projects to begin construction to receive the full credit.

Gov. Gavin Newsom blasted the law as “a tragedy … a complete moral failure” that prioritizes tax breaks for the wealthy at the expense of everyday families, health care and clean energy progress.

2. New corporate greenhouse gas disclosure requirements

Large companies doing business in California will be required to begin reporting greenhouse gas emissions under the new state law SB 253. Passed in 2023, the law was challenged in court by business groups, but a federal judge declined to block it, allowing the state to move forward with implementation for now.

Starting in 2026, the law requires covered companies to measure and publicly report their greenhouse gas emissions. Initial disclosures, covering Scope 1 and Scope 2 emissions, are expected by Aug. 10, 2026, under proposed regulations. Scope 1 emissions come from sources a company directly controls, while Scope 2 emissions come from the electricity and energy it buys.

A similar climate disclosure law, SB 261, which would require those companies to file biennial reports detailing climate-related financial risks, has had its enforcement temporarily paused by a federal appeals court as litigation continues.

3. Delay in federal wildfire recovery funding

Newsom has repeatedly urged Congress and the White House to approve additional federal funding to help California recover from and respond to devastating wildfires in the Los Angeles area. In February 2025, the governor formally requested nearly $40 billion in federal disaster aid to support rebuilding homes and infrastructure, business recovery and wildfire resilience programs.

Nearly 11 months later, the White House has yet to act on the request.

“We’re prepared to sit down and work on it whenever we get a recommendation,” Rep. Tom Cole, R-Okla, who chairs the powerful House Appropriations Committee, which writes spending bills, told The Bee in November.

The coming year could tell whether that aid finally arrives — or remains stalled.

4. Potential expansion of California’s Marine Protected Areas

California has entered a pivotal phase in the future of its Marine Protected Area network after releasing its first 10-year review in 2023, opening the door for possible expansions or stronger protections for the first time since the network was created. It means that the share of California’s coastal waters under marine protection, currently about 16% with roughly 9% designated as highly protected, could increase.

Environmental groups have submitted petitions seeking stronger measures as part of the state’s adaptive management process, and state officials are expected to release their analysis of the proposals in February, according to Environment California, followed by public meetings in the spring.

If approved, the petitions are expected to add roughly 2% more of California’s coastline to fully or highly protected marine areas.

5. Trump vs California

California has a number of ongoing lawsuits challenging President Donald Trump’s rollback of climate and environmental rules, two of which involve the state’s vehicle emissions standards and water system.

Under the Trump administration, federal officials and congressional allies moved to undo long-standing waivers that allowed California to enforce its own vehicle emissions standards, leading the state to file suit this year arguing the action illegally strips away powers granted under the Clean Air Act.

Meanwhile, California Attorney General Rob Bonta also signaled challenging the administration’s move to change the Central Valley Project’s operating plan that would allow higher water exports from the Sacramento–San Joaquin Delta. Bonta is “looking at all available options to respond,” his office told The Bee earlier this month.

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