Advanced Energy Perspectives

In the early morning hours of Saturday, September 16, the California legislature’s 2017 session came to a close. It was a jam-packed year, full of debate, negotiations, and deal making. The legislature took on a number of big ticket issues this year, including cap and trade, transportation, and housing. While the cap and trade extension was secured in early summer, a host of other measures important to AEE on energy storage, advanced transportation, and PACE financing cleared the legislature at the tail end of session. They were sent to Gov. Brown’s desk, with the expectation that all would gain his signature. That leaves us with much to wrap up about what got done this year – and what remains to be done next year.

In January, Gov. Jerry Brown declared he would seek a two-thirds vote to extend California’s cap-and-trade system to 2030. The extension to 2030 would keep in place the market-based mechanism that enables the state to reach its ambitious greenhouse gas reduction goals on a cost-effective basis – and send a market signal in favor of advanced energy technologies and services – while passage by two-thirds would protect the system from legal challenges claiming it is a tax, which by law requires approval by supermajority vote. Supporters and neutral observers alike agreed that was the ideal scenario for locking in cap and trade for the next decade, but there was substantial doubt that the votes were there. The idea of a two-thirds vote became even more challenging after the Governor asked the Legislature to hike the gas tax as part of a transportation package. Could he get a two-thirds vote twice in one year? Yes, he could and he did. Here’s how – and how AEE was engaged all along the way.

Time and time again, California has proven to the nation and the globe that economic and environmental goals can be achieved simultaneously. California’s longstanding record in implementing innovative policies has helped make it a world leader in the use and development of advanced energy technologies. That is why it is imperative for state lawmakers to extend the state’s cap-and-trade program to 2030. They’ll get a chance to do so next week.

In his State of the State speech in January, Gov. Jerry Brown announced his Administration’s determination to extend California’s climate and energy goals to 2030. The Governor called for strengthening the state’s renewable and energy efficiency goals and for steep reductions in the use of petroleum, capturing the goals in a catchy formula: 50-50-50. Senate President Pro Tem Kevin de León took up the challenge and introduced SB 350. The bill, supported actively by AEE, called for raising the RPS to 50%, increasing efficiency in existing buildings by 50%, and reducing petroleum usage by 50%. It came down to literally the 11^th hour of the session, but the groundbreaking bill passed the legislature on September 11 – minus the oil-reduction goal. Still, it was a big step forward for California’s already nation-leading energy and climate policies – and on reducing petroleum use, Gov. Brown vowed to fight another day.

California’s 2014 legislative session has finally come to a close. August was a busy month in Sacramento as the Legislature worked to get bills through both houses in the final stretch, after which Gov. Brown signed them into law during the month of September. In addition to approving several bills and budget items that will improve the business climate for advanced energy companies, the Legislature also faced an attempt to push off a key milestone in the state’s climate plan.