POLITICO reports on Governor Gavin Newsom vetoing AB 44, a bill that would have streamlined how utilities use distributed energy resources (DERs) and take advantage of existing VPP programs. The article quotes United's Edson Perez, who said that this was a huge missed opportunity to advance common-sense policy that would have lowered costs, strengthened the grid, and unlocked the full potential of advanced energy.
Gov. Gavin Newsom vetoed a bill Wednesday that would have required California regulators to develop rules for how utilities weigh the value of demand-reducing technologies and strategies when forecasting how much electricity they need to buy.
What happened: Newsom rejected AB 44, a measure authored by Assemblymember Nick Schultz, writing in a veto message that the bill would conflict with the California Public Utilities Commission’s existing rules that make sure the state’s energy grid has enough power to meet demand.
“As a result, the requirements of this bill would not improve electric grid reliability planning and could create uncertainty around energy resource planning and procurement process,” Newsom wrote.
AB 44 cleared the Legislature with bipartisan support and did not draw registered opposition as it moved through the Capitol.
Why it matters: Newsom’s rejection comes as California lawmakers and state energy officials are exploring how to use technologies known as distributed energy resources — like rooftop solar panels, battery storage and smart appliances — and strategies like encouraging residents to reduce energy consumption to reduce demand on the grid and lower costs.
However, an analysis of the bill by the Assembly Utilities and Energy Committee cautioned that demand-reducing technologies vary widely in their design and visibility to state agencies and grid managers, complicating the process of developing methods for how utilities should factor them into their energy-buying strategies.
More details: AB 44 would have required the California Energy Commission to develop and publicize methodologies for how energy providers could reduce or modify their energy demand forecasts based on demand-reducing technologies and tactics aimed at encouraging residents to reduce energy use, such as text message warnings when the grid is stressed.
Advanced Energy United — a national trade group that represents companies in energy storage, solar, smart grid and other clean energy sectors — sponsored the bill, which was also supported by a range of clean energy and environmental groups.
"California has failed to deliver significant cost savings for ratepayers," said Edson Perez, who leads Advanced Energy United's legislative and political engagement in California. "With Assembly Bill 44 being vetoed, the state has missed a huge opportunity to advance common-sense policy that would have lowered costs, strengthened the grid, and unlocked the full potential of advanced energy."
Across the finish line: Newsom signed a pair of bills Wednesday night aimed at bolstering clean energy production and lowering electricity costs.
AB 1017, by Assemblymember Tasha Boerner, requires utilities to submit more financial information to the CPUC as part of their general rate case, potentially enabling advocates to more effectively argue for lower rates. And state Sen. Steve Padilla’s SB 302 prevents the state from taking a cut of the federal tax incentives renewable energy developers receive, in a bid to streamline construction of clean energy projects that the Trump administration is attempting to defund.
Read the full article here.