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California Senate Energy, Utilities and Communications Committee Unanimously Passes Pathways Bill

Posted by Caroline Grace on Apr 21, 2025

A big step toward unlocking affordable, reliable energy while accelerating clean energy deployment  

SACRAMENTO, CA— This evening, the Senate Energy, Utilities and Communications committee unanimously passed Senate Bill 540, marking a key step forward in lowering costs for ratepayers, keeping the lights on, and accelerating the state’s transition to clean energy.  

Senate Bill 540 will optimize California’s energy markets, create a framework for energy coordination across the region, and preserve California’s clean energy and climate goals.  

“California has long led the nation on clean energy, and Senate Bill 540 is exactly the kind of policy that will keep us on that path while protecting the progress that has made California a leader, said Edson Perez, Advanced Energy United’s California lead. “SB 540 would open up critical markets for large-scale clean energy as well as distributed energy resources, supporting local economies and providing real cost-savings to ratepayers. Due to its affordability and reliability benefits, the bill has broad support across the clean energy industry.  At a time of uncertainty, SB 540 is a chance for California to deliver savings and continue to build a cleaner, more reliable energy future.” 

The bill authors issued the following statements: 

“As we move toward achieving California’s 100% clean energy goals, we must look at all possible solutions to reduce costs, improve reliability, and cut emissions,” said Senator Josh Becker (D-Menlo Park). “Pathways strikes that balance by unlocking the benefits of a regional energy market while safeguarding California’s critical public policy priorities. It offers a win-win scenario for California—achieving cleaner energy, more reliable power, and real savings for ratepayers.” 

Senator Henry Stern (D-Los Angeles), Vice Chair of the Joint Legislative Committee on Climate Change Policy, believes the future of California’s energy hinges on innovation and collaboration. "This bill will enhance the reliability of our grid during extreme weather while securing cleaner, more affordable energy for Californians. With storm clouds on the horizon, now is not the time to hunker down—we must reach beyond our borders to ensure that clean energy markets aren’t stifled by politics," said Senator Henry Stern. 

The bill will be heard next Tuesday, April 29, in the Judiciary Committee.  

To learn more about SB 540 and how it supports locally produced power in California and the state’s clean energy future, visit https://localpowerpathways.com  

As part of its efforts to eliminate barriers and expand opportunities for advanced energy technologies, Advanced Energy United is advocating for the development of a competitive wholesale energy market for the Western U.S., known as a regional transmission organization (RTO). Click here to learn more.



Topics: Press Releases, Western RTO, California, Edson Perez