Sacramento, Calif. – The California Manufacturers & Technology Association (CMTA) is warning that a proposed bill could add significant and costly new requirements for advanced manufacturing, further deterring investment in an already high-cost state.
Just last year, California took steps to attract advanced manufacturing, recognizing the industry’s role in strengthening supply chains, driving innovation, and reducing emissions through in-state production.
Now, Senate Bill 954 (Blakespear, 2026) would push that progress in the opposite direction by adding new layers of approvals and costly requirements, narrowing build locations, and creating more uncertainty for companies looking to invest in California.
“California made a clear commitment to attract advanced manufacturing investment, and SB 954 sends the exact opposite message,” said Lance Hastings, President & CEO of CMTA. “Manufacturers need certainty. When the state adds new hurdles and changes the rules in such a short timeframe, companies will look to other states or countries where they can build faster and more affordably.”
Building a facility in California already requires navigating complex environmental, safety, and local approvals that can take years to complete. In industries like clean energy and technology, those delays can determine whether a project is built in California or elsewhere.
SB 954 increases the risk that companies delay, scale back, or move out of state.
Manufacturing makes California stronger. Careers in the industry provide strong wages and long-term opportunities. Beyond jobs, producing goods in California—where environmental, species, and labor standards are among the highest in the world—results in significantly lower impacts than in many other states.
“When advanced manufacturing investment leaves California, it goes to states or countries that are more welcoming,” Hastings added. “That means fewer jobs here and often higher global emissions. If California wants to lead on climate and innovation, we should be making it easier to manufacture here. SB 954 moves us in the wrong direction.”
Today, SB 954 passed out of the Senate Environmental Quality Committee on a 5-2 vote and now heads to the Senate Labor, Public Employment and Retirement Committee for consideration.
CMTA urges policymakers to maintain a stable business environment that supports investment in advanced manufacturing, starting with rejecting SB 954.
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About CMTA
The California Manufacturers & Technology Association (CMTA) has advocated for pro-growth laws and regulations before the California legislature and administrative agencies since 1918. The total output from manufacturing in California is $382 billion per year, roughly 10 percent of the total economic output of the state. Manufacturers employ 1.2 million Californians paying wages more than $2,500 higher than other non-farm employers in the state.