In response to rapidly rising inequity, the affordability crisis, and a large California budget deficit, California unions and community organizations launched a campaign to Unrig California. This campaign targets the most egregious ways that corporate billionaires are fleecing us. A key piece of Unrig California is repealing the “Water’s Edge” tax election – the state’s largest corporate tax loophole which the fossil fuel industry created.

Since the 1980s, California’s “Water’s Edge” tax election has allowed corporations to hide their profits in offshore tax havens. This costs the state an estimated $3-4 billion in tax revenue per year. Oil and gas companies–and their allies in the Reagan administration–fought hard for Water’s Edge in the 1980s. Since then, they have earned billions by fueling climate change and poisoning California communities–and sheltering their profits overseas.

If passed, AB 1790 will help ensure that corporations pay their fair share of California taxes–providing crucial support to our schools, communities, and environmental programs.

California’s state workers are on the front lines of the climate crisis–cleaning up fires and floods; protecting our air, water, and wildlife; and addressing public health crises. AB 1790 will give our state workers the resources they need to build a green and safe California.

FFCV is mobilizing a coalition of 60+ climate and environmental justice organizations, working in partnership with our allies in the labor movement to build the 2/3 electoral majority required to pass AB 1790.

Bill Timeline

• February 2026, Assembly member Damon Connolly introduced AB 1790
• April 2026 – AB 1790 passes Assembly Revenue and Taxation Committee
• May 2026 – AB 1790 held in the Assembly Appropriations Committee (The bill is not subject to normal legislative deadlines and can still be moved when the votes are lined up.)

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