Governor Gavin Newsom recently signed AB 1280 and SB 513 into law, two major steps forward to bolster California’s clean energy economy and strengthen worker protections. These laws will draw investments to decarbonize heavy industry, boost the state’s energy resilience, and keep businesses competitive while creating high-road, union jobs.

• Assembly Bill 1280 empowers the California Energy Commission and iBank to expand incentives for manufacturers who adopt clean technologies—like industrial heat pumps and thermal energy storage—that will lead to a reduction in emissions, modernize facilities, and create high-road, in-state manufacturing jobs. (Assemblymember Robert Garcia)

• Senate Bill 513 champions employers who invest in their workforce by increasing workers’ rights, requiring employers to include education and training records—such as skills taught, equipment used, and certifications earned—in employee personnel files, laying the groundwork for a transferable “skills passport” verifying qualifications. (Senator Maria Durazo)

California is a leader in manufacturing with more facilities than any other state. However, the sector is also a significant contributor to health-harming air pollutants that disproportionately impact fenceline communities. The groups called Governor Newsom’s decision to veto Senate Bill 787 a missed opportunity. This bill would have created a formal structure for clean energy industrial planning across state agencies, coordinated supply chains—including in the offshore wind, batteries, and EV component industries—and established a dedicated funding stream.

“Governor Newsom showed he remains committed to keeping California a competitive manufacturing hub that attracts and retains skilled workers while advancing robust climate investments,” said Franki Gracey, Senior State Policy Organizer for California BlueGreen Alliance. “These laws represent real progress, but without SB 787, California misses the chance to lead on clean supply chains and expand middle-class careers in the clean energy transition.”

“It’s encouraging to see the governor back workers by signing legislation that modernizes the future of manufacturing in California and lays the foundation for a first-of-its-kind skills passport to recognize the many talents workers bring to the job,” said Vince Sugrue, State Legislative Director and California BlueGreen Alliance Co-Chair. “This is a clear win for workers, communities, and the environment, reflecting the core of what our coalition stands for: uniting labor and climate advocacy.”

“We commend the governor’s recent steps on incentivizing clean technologies and supporting workers,” said Fatima Iqbal-Zubair, Legislative Affairs Manager for California Environmental Voters and California BlueGreen Alliance Co-Chair. “California is a national leader in innovative policies to decarbonize our energy system, and the way we accomplish big things in this state is by finding common ground between environmental and labor groups to protect the places we call home and keep good jobs in local communities.”