Senator Alex Padilla, Governor Newsom’s economic development advisor Dee Dee Myers and national clean-energy strategist Karen Skelton, are among the speakers as 450 sustainability leaders meet to explore clean-energy solutions to achieve California’s climate goals

Twenty years after enacting landmark climate legislation, California has built one of the world’s largest clean-energy markets, strengthened resilience by anchoring a regional electricity grid and unveiled a roadmap to power the digital economy while achieving ambitious climate goals, according to business, government and environmental leaders at the Los Angeles Business Council’s 2026 Sustainability Summit.

In its 20^th year, the prestigious Summit shares the milestone anniversary with AB 32, the Global Warming Solutions Act of 2006, which established the nation’s first comprehensive framework for reducing greenhouse gas emissions. Later legislation set a timeline for eliminating emissions, accelerating investment in clean-energy, transportation and climate-resilient infrastructure and helping to drive job growth and California’s ascent to the world’s fourth-largest economy.

The Summit is the first high-level climate conference since Governor Newsom signed seven bills to help California meet soaring electricity demand in the artificial intelligence-led economy yet still attain carbon neutrality by 2045. The laws regulate the development of new data centers, establishing rules for rates, energy and water-use disclosure and environmental review; requiring operators to pay for infrastructure upgrades; and protecting existing consumers from bearing costs associated with the higher loads.

“At the first Summit 20 years ago, we were virtually alone in seeing that sustainability and economic growth could go hand in hand. Today, energy-efficient buildings are standard, renewable sources provide the lion’s share of California’s electricity and we’re investing in power generation in space,” said LABC President Mary Leslie. “California shows that smart climate policies and clear rules can stimulate transformative investment. As we enter the ‘AI era,’ this year’s Summit seeks to build on California’s success by exploring solutions for robust growth supported by clean, reliable and affordable energy over the critical next 20 years.”

In conjunction with the Summit, the LABC is honoring political and business leaders who have shaped California’s climate and clean-energy agenda. Former Governor Arnold Schwarzenegger will receive the LABC Global Climate Legacy Award.

Schwarzenegger enacted AB 32, spawning a statewide market where one in four new vehicles sold today is powered by zero-emission technology and more than half a million people have clean-energy jobs. Renewable and zero-carbon resources supply two-thirds of the state’s retail electricity, and in May, California set a global benchmark by producing over half of its electricity from solar power alone.

"For 20 years, the Los Angeles Business Council has helped prove what’s possible when business, government and communities work together. And our state – and our country – are better off because of it,” said U.S. Senator Alex Padilla. “Today, as the Trump administration works to roll back many of the renewable energy policies and environmental protections, our leadership matters more than ever.”

Sen. Padilla, who recently secured nearly a quarter of a billion dollars in federal funds for transportation infrastructure projects in Los Angeles, added, “We must keep investing in cleaner, more affordable and more reliable transportation – from electric vehicles and charging infrastructure to public transit, ports and the electric grid.”

One of the state’s top priorities is attracting further investment in clean-energy generation, transmission and storage to support the growth of AI, cloud computing and the broader digital economy. The California Energy Commission projects data-center electricity demand will more than quadruple by 2040, rising to 4,500 megawatts, or nearly 10% of the state’s peak demand.

The state’s new data-center legislation creates a development framework that features higher rates to incentivize energy-infrastructure investment as well as regulations that protect consumers and increase transparency about future water and electricity use to secure buy-in from communities. To further address backlash, developers are also committing to invest in local economies as part of their plans.

“AI presents a generational opportunity for the state to meet its economic and clean-energy goals, but to succeed, it’s critical that communities are informed, consulted and able to share in the benefits,” said Karen Skelton, a leading clean-energy policy strategist who supported SB 886, one of two new laws that place guardrails to prevent shifting the costs and risks of expanding this vital sector onto existing ratepayers.

“California is effectively deciding now what role it wants to play in the next wave of the digital economy,” added Skelton, who is moderating a panel discussion with executives from major data-center operators and energy providers, including Amazon Web Services, Prologis, AES and EDF Power Solutions.

The digital economy is opening a new market for clean-energy capacity that California is already building through an 11-state regional grid. In May, the California Independent System Operator (CAISO) and PacifiCorp, launched the Extended Day-Ahead Market (EDAM) to coordinate and optimize interstate energy transmission, enhancing reliability and lowering costs to consumers.

“This innovative market leverages the West’s diverse sources of energy to provide the lowest-cost electricity where it’s needed most in real time,” said Mark Rothleder, CAISO’s Senior Vice President and Chief Operating Officer. CAISO is a 2026 Summit honoree. “That’s particularly important for Los Angeles, and I’m thrilled that the L.A. Department of Water and Power will be joining EDAM next year.”

New clean-energy ventures are also strengthening California’s resilience and adding flexibility to the grid. Thanks to the dramatic growth in storage capacity, including fleets of home batteries that collect power from rooftop solar panels, CAISO successfully managed the state’s second-highest peak demand in September without a flex alert or other emergency action.

The Summit is attended by 450 people, with many more watching the livestream. The daylong conference also features discussions on clean transportation and securing California’s water future.

The depletion of the Colorado River and other water sources due to the increasing severity of climate-change impacts threatens to cut California’s water supply by an estimated 10% by 2040. The State Water Project, which supplies 27 million residents, risks losing nearly a quarter of its capacity by 2045 unless it is adapted. Conservation and recycling have reduced some stress, but recent water-main breaks exposed Los Angeles’s urgent predicament: Nearly one-third of the LADWP’s 7,300-mile distribution mainline is more than 80 years old.

“Water reliability is essential to California’s economic future,” LABC Chairman David Nahai said. “We know the projects that can strengthen our supply, from recycling and groundwater replenishment to modernizing aging infrastructure. The challenge now is accelerating those investments so communities have the water they need to grow and thrive.”

As it pursues both economic growth and carbon neutrality, the state government is supporting clean-energy initiatives like commercial solar-power generation in space. Long Beach-based start-up Vast illustrates how California's broader innovation ecosystem can translate into local investment and job creation. Founded in 2021, the company is developing commercial space stations and infrastructure designed to support the next era of human activity in low-Earth orbit and beyond.

“California has been on the leading edge of both innovation and climate action. Through our California Jobs First Economic Blueprint strategy, we’re committed to helping companies develop new technologies, create quality jobs and protect our communities, while advancing our role as a green energy leader,” said Dee Dee Myers, Director of the Governor’s Office of Business and Economic Development. At the summit, she is joining a discussion on space as the next frontier in renewable energy with Mayor Rex Richardson of Long Beach, an aerospace hub that’s home to the Space Beach initiative.

The LABC has been a longstanding advocate of accelerating investment in clean energy, transportation and environmental remediation, putting Los Angeles and the entire state of California at the forefront of the fight against climate change. Each year, the Council honors fellow climate leaders. In addition to Governor Schwarzenegger and CAISO, this year’s honorees are California Assemblymember Jacqui Irwin and Jason Barrett, Senior Vice President of GAF.

A video of the 20^th Annual LABC Sustainability Summit is available at labusinesscouncil.org.

About the Los Angeles Business Council

The Los Angeles Business Council is one of the most effective and influential advocacy and educational organizations in California. For over 70 years, the LABC has had a major impact on public policy by harnessing the power of business and government to promote environmental and economic sustainability in the Los Angeles region. To learn more, please visit labusinesscouncil.org.

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