SACRAMENTO, CA — This week the California legislature and Governor Gavin Newsom reached a state budget agreement that reflects California’s challenging fiscal landscape and results in difficult reductions. Advanced Energy United, the national clean energy business association, recognizes the importance of an approach that considers both economic realities and the imperative to accelerate advanced energy across the state. The budget prompts continued conversation on strengthening clean energy infrastructure and protecting crucial programs that advance California’s clean transportation goals.
“While the budget agreement resulted in some reductions and delays in core climate spending in the face of a looming shortfall, the deal strives to protect ongoing clean energy and zero-emission vehicle (ZEV) funding,” said Leah Rubin Shen, Managing Director at Advanced Energy United. “Maintaining consistent long-term funding for these programs is of utmost importance to saving Californians money, creating jobs, and upholding the state’s climate leadership. As California enters the hot summer months, United also appreciates the budget’s addition of $19 million in funding for the Demand Side Grid Support (DSGS) Program, which is one of the pivotal programs important to keeping the lights on even during periods of high demand. As our grid evolves, this program will continue to be key to leveraging all of the resources on our grid and compensating them for their reliability benefits.”
United thanks the Governor’s Office and the Legislature for recognizing the urgency of reducing roadblocks to responsible development of clean energy. This year’s proposals provide a foundation for addressing the barriers impeding the growth of clean energy and transmission infrastructure vital to California’s climate ambitions. United is prepared to continue collaboration with policymakers to build on this progress with other necessary reforms.
“As California doubles down on its climate ambitions, we welcome ongoing conversation with the Legislature to explore diversified approaches to better sustain the state’s clean energy and ZEV priorities, including fully maximizing federal and private investment,” added Rubin Shen. “Currently, these investments face vulnerability each budget cycle from relying only on General Fund and Greenhouse Gas Reduction Fund (GGRF) revenue.”
“United also urges the Legislature to extend three essential ZEV and ZEV infrastructure funding programs – the Clean Transportation Program, Air Quality Improvement Program, and Enhanced Fleet Modernization Program – through 2035. These programs provide significant support for California’s expanding world-class ZEV economy and clean air for communities, and we strongly encourage the passage of Assembly Bill 241/Assembly Bill 126 as soon as possible.”
Click here to learn more about Advanced Energy United’s work in California advocating for clean energy and electrified transportation.