Multibillion-dollar budget investments set to help California deliver on new 2045 carbon-neutrality law, among other clean energy targets
SACRAMENTO, September 1, 2022 — Today, national business group Advanced Energy Economy (AEE) applauded the California Legislature’s passage of a final budget agreement containing billions of dollars for clean energy and transportation investments, as well as legislation to accelerate the state’s climate and clean energy goals.
“As California combats dangerous heat waves and the high energy costs that come with them, the need to modernize our electricity system has never been clearer,” said Emilie Olson, policy principal at AEE. “This year’s budget deal invests in short- and long-term solutions to California's energy challenges, like programs that save households money and quickly reduce stress to the power grid on our hottest days along with the transmission and grid infrastructure dollars needed to make the most of California’s abundant clean power sources for decades to come.”
In particular, AEE is pleased to see the statehouse greenlight the following bills:
- AB 1279: Codifies economy-wide carbon-neutrality goal by 2045
- SB 1020: Requires 90% clean energy by 2035
- AB 209: Expands eligibility for new demand reduction incentives to all ratepayers to ease strain on the power grid; unlocks new transmission project financing; and boosts heat pump deployment
“We are thrilled to see a finalized budget plan that can achieve these goals through investments in clean energy infrastructure, building decarbonization, zero-emission vehicles and charging, and other innovative advanced energy technologies,” continued Olson. “AEE looks forward to working with lawmakers to invest these dollars in strengthening our grid, expanding Californians' access to clean energy, and delivering on these ambitious climate targets. Heading into 2023, it also sets the stage for improving the power grid and protecting households and businesses from the threat of blackouts.”
With these supplemental state budget dollars on the way, California’s clean energy industry will see an added multibillion-dollar boost to recent federal investments. AEE’s economic analysis found that the combined investment from Congress’ Inflation Reduction Act and last year’s Infrastructure Investment and Jobs Act totals $58 billion in direct federal spending for California’s clean energy technologies, leading to nearly $448 billion in total economic benefit for the state and 2.5 million total new jobs created.
- Read AEE’s budget asks with suggestions on how to strengthen affordable, clean energy access for California
- Watch Emilie Olson’s appearance on Fox40 in Sacramento on how the state budget can be used to strengthen grid reliability
- Read AEE’s June statement on the Legislature’s budget trailer bill
- Read our previous statement on the Governor’s May Budget Revise