California Lawmakers vote to cut funding for programs that help avoid blackouts
SACRAMENTO, CA — The Senate Budget Subcommittee 2 and the Assembly Budget Committee approved funding cuts to the Demand Side Grid Support (DSGS) and Distributed Electricity Backup Assets (DEBA) proposed in Governor Gavin Newsom’s May Revise.
The DSGS and DEBA programs bring new clean, flexible, and responsive energy resources online in times of emergency. These programs are the only path for California to transition away from its dependence on polluting Peaker plants during these times of emergency. DSGS and DEBA were established as a result of the historic grid shortages in 2022 and have effectively supported the grid during the summers of 2022 and 2023.
Specifically, the DSGS program compensates everyday Californians who provide load reduction and clean backup generation during grid emergencies. This program has already provided over 3,100 MWh of emergency response during hot summer weather. The approved cuts would gut the program by $186.5 million, limiting its effectiveness and ability to scale to provide needed relief to the grid.
The DEBA program incentivizes the construction of new, cleaner, and more efficient distributed energy assets like energy storage and microgrids, which would also support the grid during extreme events and reduce our dependence on fossil-fuel-based emergency resources. The approved cuts would limit its effectiveness and ability to scale to provide needed relief to the grid.
Advanced Energy United’s California policy lead, Edson Perez, issued the following statement:
“This decision is not just disappointing, it’s reckless. At a time when we are already facing forecasts of a hotter-than-average summer, slashing funding for programs that prevent blackouts is beyond short-sighted—it’s a direct threat to our most vulnerable communities. Cutting clean energy programs that support the grid during emergencies endangers lives and leaves us dependent on dirty, polluting power plants.
These two programs are our best shot at creating a resilient, clean energy grid. It would be wise for the Governor and legislative leaders to reverse these cuts before finalizing the budget on June 15. Investing in DSGS and DEBA is investing in a future where our grid can handle increasing energy demand without compromising on either clean energy or reliability.”
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