Governor Newsom Vetoes Key Energy Bills, Hindering California's Clean Energy Progress
Governor Gavin Newsom has vetoed two significant energy bills, AB 740 and AB 44, which aimed to advance California's clean energy goals. The bills, which passed unanimously through the state's Assembly and Senate, were vetoed due to potential financial implications.
AB 740, a bipartisan bill, sought to establish a virtual power plant (VPP) deployment plan in California. It would have required collaboration between the California Energy Commission, utilities commission, and CAISO. VPPs, which aggregate distributed energy resources, could have saved Californians $750 million per year in traditional power system costs and provided over 7.5 GW of capacity cost-effectively, according to clean energy organizations. However, Newsom vetoed the bill due to concerns that it could exacerbate the California Energy Commission's ongoing structural deficit.
AB 44, another vetoed bill, aimed to enable electricity providers to reduce demand forecasts using demand-side resources. This could have helped manage California's grid more efficiently. Both bills were supported by a wide range of organizations, though specific details about their backing are not available.
The vetoes follow California's decision not to renew funding for its grid reliability and premier virtual power plant program, putting the program's future at risk. Newsom's actions may hinder the state's progress towards its clean energy goals, potentially leading to increased energy costs and reduced reliability.
