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Bill

SB 787

Energy: equitable clean energy supply chains and industrial policy in California.

2025-2026 Regular Session Introduced by Jerry McNerney and 3 co-sponsors

SB 787 would establish California clean energy supply chain standards requiring equitable domestic manufacturing procurement and environmental justice protections, but was vetoed by the Governor.

In Senate. Consideration of Governor's veto pending.
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Bill Summary · SB 787

Legislative bill overview

SB 787 aimed to establish California's clean energy supply chain and industrial policy by requiring state agencies to prioritize equitable procurement practices, support domestic manufacturing of clean energy components, and ensure environmental justice in supply chain development. The bill would have directed funding and policy coordination toward building California's competitive advantage in renewable energy production while addressing workforce and community equity concerns.

Why is this important

Clean energy supply chains represent a critical economic and environmental frontier—controlling these chains determines job creation, manufacturing competitiveness, and whether communities historically harmed by pollution benefit from the energy transition. California's approach influences national clean energy policy and investment patterns, making supply chain governance a substantive economic development issue beyond environmental concerns.

Potential points of contention

  • State vs. Federal Authority: Questions about whether California can effectively mandate supply chain requirements that may conflict with federal trade policies or interstate commerce principles
  • Cost and Competitiveness: Concerns that domestic-first and equity-focused procurement requirements increase clean energy costs, potentially making California less competitive or raising consumer energy prices
  • Implementation Complexity: Defining and enforcing "equitable" supply chains across complex, global manufacturing networks presents significant administrative and enforcement challenges

Compiled from official sources — confirm details with the bill’s official record.

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