State leaders severely cut clean energy and transportation programs
SACRAMENTO, CA – Today, the California legislature passed a package of bills reflecting a final budget deal reached with Governor Newsom. This agreement makes cuts of over $1 billion to critical clean energy and clean transportation programs that make our grid more resilient, improve air quality, and support good paying in-state jobs. The budget cuts can be found in Assembly Bill 107 and in this legislative report.
United is especially concerned about cuts to the Demand Side Grid Support (DSGS) and Distributed Energy Backup Assets (DEBA) programs. These programs, along with the Self-Generation Incentive Program (SGIP) support grid resiliency during times of emergency. DSGS and DEBA were established as a result of the historic grid shortages in 2022, and DSGS has already effectively supported the grid during the summers of 2022 and 2023. Cuts to these programs will increase the risk of blackouts and put more communities in danger.
Edson Perez, California Lead at national business association Advanced Energy United (United), expressed concern about these cuts saying, “The clean energy and clean air budget cuts passed today show a lack of foresight by California’s leaders. Resiliency programs like DSGS and DEBA are critical for supporting the grid and keeping our lights on during emergencies, like the heat waves and wildfires we are already seeing this summer.”
In addition, United is deeply disappointed in the significant cuts made to clean transportation programs, such as those that support electric vehicle charging infrastructure and zero-emission medium- and heavy-duty vehicles. “Clean transportation programs are essential to protect the most vulnerable communities from air pollution,” Perez emphasized. “These programs are critical to ensuring California meets its ambitious transportation electrification goals in statute and in the Advanced Clean Fleets and Advanced Clean Trucks rules.”
“We anticipate continued conversations with the legislature and Governor on alternative solutions to backfill these programs with Greenhouse Gas Reduction Fund proceeds or climate bond funds,” Perez added. “Doing so will be necessary if we want to prevent blackouts, avoid skyrocketing utility bills, clean up our air, and build a successful clean energy economy.”
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