What SB 787 does
An act to add Chapter 8.5 (commencing with Section 25730) to Division 15 of the Public Resources Code, relating to energy.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to adopt, on a biennial basis, an integrated energy policy report that contains an overview of major energy trends and issues facing the state, including supply, demand, pricing, reliability, efficiency, and impacts on public health and safety, the economy, resources, and the environment. Existing law requires that the report present policy recommendations based on an in-depth and integrated analysis of the most current and pressing energy issues facing the state.
This bill would require the Energy Commission, on or before March 1, 2027, to designate a person within the Energy Commission or identify and retain an external candidate to serve as the Senior Counselor on Industrial Policy and Clean Energy Development, and would require the senior counselor to, among other things, convene working groups that focus on certain issues, as provided. The bill would require the Energy Commission, the Governor’s Office of Business and Economic Development, the Labor and Workforce Development Agency, the Public Utilities Commission, the Department of General Services, and the office of the Treasurer, on or before March 1, 2027, to enter into a memorandum of understanding on equitable clean energy supply chains and industrial policy in California with specified goals and provisions, as provided. The bill would require the senior counselor to track and coordinate the work under the memorandum of understanding and to prepare an annual report summarizing the key findings and recommendations resulting from that work. The bill would require that the report be presented at a public meeting of the Energy Commission and be published on the Energy Commission’s internet website. The bill would establish in the State Treasury the Equitable Clean Energy Supply Chain and Industrial Policy Fund and would, upon appropriation by the Legislature, authorize the moneys in the fund to be expended for purposes of the bill.
Summary from the Legislative Counsel's Digest of the enrolled text, September 18, 2025. Read the full text on leginfo.
How it got here
Senator McNerney introduced SB 787 on February 21, 2025, with coauthors Assembly Members Petrie-Norris, Ransom, and Zbur. The text was amended 5 times, 3 in the Assembly and 2 in the Senate, and heard in 7 committee hearings before its final floor votes.
- Senate Floor, June 2, 2025: 28 ayes, 10 noes.
- Assembly Floor, September 12, 2025: 64 ayes, 10 noes.
- Senate Floor, September 13, 2025: 29 ayes, 8 noes.
Committee votes along the way:
- Senate Energy, Utilities and Communications, April 21, 2025: Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations], 14-2.
- Senate Appropriations, May 12, 2025: Placed on suspense file, 7-0.
- Senate Appropriations, May 23, 2025: Do pass, 5-1.
- Assembly Utilities and Energy, July 9, 2025: Do pass and be re-referred to the Committee on [Transportation], 15-1.
- Assembly Transportation, July 14, 2025: Do pass and be re-referred to the Committee on [Appropriations], 14-1.
- Assembly Appropriations, August 29, 2025: Do pass as amended., 11-3.
Who supports and opposes SB 787
The Senate Floor Analyses analysis dated October 15, 2025 lists 56 organizations in support and 0 in opposition. When Senate Energy, Utilities and Communications first listed positions on April 18, 2025, the count was 39 in support and 0 opposed. By the Senate Floor Analyses analysis of October 15, 2025 it was 56 to 0.
In support: Workers of America, Region 6 (sponsor); International Union, United Automobile, Aerospace, and Agricultural Implement; 350 Bay Area Action; Active San Gabriel Valley; Advanced Energy United; Alameda County Democratic Party; American Clean Power-California; BlueGreen Alliance; and 48 more.
Read the Senate Floor Analyses analysis.
What happens next
The Governor vetoed it, with the last recorded action on March 2, 2026.
The Governor can sign the bill, veto it, or let it become law without a signature. Until the decision, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect. If signed, most provisions take effect January 1, and implementation moves to the agencies named in the bill.
What it means for data center organizations
A vetoed bill usually returns. The veto message is the clearest statement of what a successor would have to change, and the interval before it is reintroduced is when that language gets negotiated.
The data centers group at Capitol Axis handles that for data center clients.
Questions about SB 787
What does SB 787 do?
This bill would require the Energy Commission, on or before March 1, 2027, to designate a person within the Energy Commission or identify and retain an external candidate to serve as the Senior Counselor on Industrial Policy and Clean Energy Development, and would require the senior counselor to, among other things, convene working groups that focus on certain issues, as provided. The bill would require the Energy Commission, the Governor’s Office of Business and Economic Development, the Labor and Workforce Development Agency, the Public Utilities Commission, the Department of General Service
Has SB 787 passed the California Legislature?
The Governor vetoed it, with the last recorded action on March 2, 2026.
Who supports and opposes SB 787?
The Senate Floor Analyses analysis dated October 15, 2025 lists 56 organizations in support and 0 in opposition. Supporters include Workers of America, Region 6 (sponsor); International Union, United Automobile, Aerospace, and Agricultural Implement; 350 Bay Area Action.
What happens next with SB 787?
A veto can be overridden by a two-thirds vote in both houses, which is rare. The usual path is a successor bill in the next session, and the veto message is the clearest guide to what that bill would have to change.