2025 in review: Devastating fires, federal pushback and contentious climate compromises

Days after 2025 began, two fires scorched through Los Angeles neighborhoods, the most destructive in California’s history. The Eaton and Pacific Palisades fires also renewed attention to issues such as utility oversight, insurance coverage, and the broader challenges of wildfire planning in a changing climate. And their harms rippled outward, leaving thousands of low-income workers and immigrants without jobs. 

But California found pushing its climate agenda forward to be an uphill battle this year: Ambitious climate goals faced a hostile federal government economic pressures.

Anticipating opposition from President Donald Trump, state leaders chose to abandon important clean-air rules before he even took office, including plans to phase out diesel trucks and transition to cleaner trains. Nearing mid-year, Trump and his allies in Congress blocked the state’s clean-car mandate, a blow to emissions reduction plans.

Nevertheless, as part of budget negotiations, Gov. Gavin Newsom sought to reauthorize California’s landmark cap-and-trade program, launching a debate that would resolve in the final hours of the legislative session.

Blaming climate and environmental regulation, Phillips 66 and Valero followed through on plans to shutter oil refineries, raising concerns about gas prices and the future of the state’s oil industry. In Wilmington, Phillips 66 is now closed. A high-profile explosion at Chevron’s El Segundo refinery nearby underscored persistent safety and environmental risks tied to remaining facilities.

By the end of the legislative session, these issues converged, as legislators passed a six-bill deal that included a plan to boost oil drilling, relief for ratepayers who fund wildfire mitigation, and an extension of the now rebranded “cap-and-invest” program.

As lawmakers passed sweeping reforms to California’s landmark environmental review law, critics warned exemptions may make it easier for potentially high-polluting advanced manufacturing facilities to take root in already vulnerable areas.

Longstanding conflicts over water continued to simmer this year. The governor continued pressing to fast-track a $20 billion tunnel around the Sacramento-San Joaquin Delta to send more water south — to the outrage of Delta lawmakers. And dry conditions led to dire projections for the Colorado River, a vital water supply for Southern California. They ramped up the tensions — and the urgency — as negotiators from states that rely on the river tried, and failed, to reach a deal portioning out water supplies.

2026 Outlook

Affordability, the cost of climate adaptation, and pollution harms, in the skies and in the waste stream, continue to be key issues for California. As Gov. Gavin Newsom’s balancing act continues, the state will navigate tensions with environmental justice advocates unhappy with compromises. Emerging risks include the cost – in energy and water – of data centers, and the environmental consequences of the battery economy.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.