As summer ends, California’s Capitol is buzzing with new plans to boost renewable energy and make electric bills more affordable.
Gov. Gavin Newsom is working on a proposal to slightly reduce electricity bills in the short term. This plan is part of a broader legislative effort to streamline clean energy projects, known as “California Made,” which aligns with President Joe Biden’s Inflation Reduction Act.
The proposal is part of California’s push to meet its clean energy goals. Currently, the state gets about 40% of its electricity from fossil fuels, falling short of the 2022 goal of 90% renewable energy by 2035.
To lower electric bills, the plan includes:
- Ending CalSHAPE, a program that funds school HVAC upgrades.
- Reducing costs for utility wildfire mitigation.
- Lowering expenses for grid infrastructure.
The proposal aims to save about $1 billion in the first year, though individual savings might be small. California households are struggling with rising energy costs, which have increased by up to 110% over the past decade. Bills from major utilities like Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric have gone up 20-50% in the past three years.
Newsom’s plan also hopes to reduce costs through securitization, which allows utilities to use cheaper debt for upgrades rather than expensive shareholder funds.
Stanford University’s Michael Wara notes that while the immediate savings might be modest, it’s a practical step given the current system. He commends the focus on making electricity more affordable.
It’s common for significant legislation to be proposed at the end of California’s legislative session, which ends on Aug. 31.
In addition, Senate President Pro Tem Mike McGuire is leading a draft legislative package to reduce environmental permitting requirements for clean energy projects like solar, wind, and battery storage. The draft proposes new tax credits, a streamlined permit process, and a unified environmental impact report for these projects.
McGuire says the package aims to improve grid reliability, meet growing energy demand, create jobs, and support the clean energy economy. He looks forward to sharing more details soon and continuing work on these policies.