This paper recommends policies for California to maintain and enhance its status as a global leader in carbon-free prosperity. It offers policy recommendations in five areas: electricity sector policy, building sector policy, transportation sector policy, policy for fracking and methane emissions, and spurring policy action in other states and regions. The state is well on track to meeting its 2020 emission reduction goal, but additional policy innovation is needed if California is to achieve the longer term goal of reducing greenhouse emissions by 80 percent by 2050.