SACRAMENTO — On Tuesday, State Senator Steve Padilla (D-San Diego) introduced a legislative package aimed at reducing the costs associated with grid infrastructure projects throughout California and reimagining the financing and approval processes for electrical transmission lines in the state.

Senate Bill 330 would empower the Governor to establish pilot projects for the development, financing, and operation of electrical transmission infrastructure, potentially saving Californians billions over the next decade.

Many parts of California's electrical grid are over a century old and were not designed to support the state's modern economy or population size. As climate pressures strain this aging infrastructure, energy costs are rising across the country, leaving families and small businesses struggling with increased energy bills. Contributing to recent rate hikes is the urgent need for upgraded transmission infrastructure. These rate increases place financial pressures on consumers, while lengthy bureaucratic delays hinder the swift development of necessary infrastructure projects, Padilla noted in a statement.

By 2045, California will require significant new transmission infrastructure. The California Independent System Operator estimates this could cost between $45.8 billion and $63.2 billion. To lower energy rates and enhance grid reliability, it is vital to accelerate the planning, siting, permitting, and construction of a modern electrical grid while managing costs effectively. These projects are expected to create well-paying union jobs, providing employment opportunities for many Californians.

Despite the clear need to expand the state's electrical grid, the California Public Utilities Commission takes nearly seven years on average to approve new projects. The current process involves multiple agencies, redundant analyses, and lengthy permitting procedures, resulting in increased costs and significant delays. These setbacks have added tens of millions of dollars in expenses. Unless substantial changes are made to the state's current planning and permitting processes, projects may continue to face costly and time-consuming obstacles. Reducing this timeline would lead to more efficient project completion at a lower cost, ultimately saving ratepayers billions, Padilla continued.

“California is in a race against time to meet the energy demands of the future. We simply do not have a grid that can support our growing economy, and it is costing families every day,” said Senator Padilla. “We must meet take bold action to reform our antiqued grid, which holds us back, undermines our energy reliability, and burdens Californians.”

SB 330 would authorize the Governor to establish pilot projects for the development, financing, and operation of electrical transmission infrastructure. By utilizing low-cost public debt and alternative institutional models, we can modernize our outdated grid while providing cost savings to California ratepayers.

This legislative package is supported by a broad coalition of energy reform advocates, the lawmaker's office said.

“California must expand transmission to meet growing energy demand, but we need to do it affordably. Innovative financing solutions are key to building this infrastructure while tackling the state’s energy affordability crisis,” said Advanced Energy United’s California Policy lead Edson Perez. “We can’t afford to wait. Transmission projects are moving forward, and every delay in deploying innovative financing tools risks missing out on up to $123 billion in potential ratepayer savings. Acting now means delivering more cost-effective, reliable, clean energy for Californians.”

“Californians deserve affordable, reliable, clean electricity,” said Neil Matouka from Net-Zero California. “This legislation ensures that large transmission projects will be built in the most cost-effective way while still ensuring stringent safety requirements. We appreciate Senator Padilla’s leadership in authoring SB 330, which will help reduce the cost of clean energy transmission projects."