Lawmakers Send Newsom a High-Stakes Energy Overhaul Tied to Wildfires, Utilities and Oil

Source: CalMatters  |  By Alejandro Lazo and Jeanne Kuang

Gov. Gavin Newsom closed out the legislative year with one of the most sweeping overhauls of California’s energy and climate policies in decades — a package that could give him a presidential debate-stage talking point on rising energy costs as the Democratic Party shifts its focus to affordability.  The six-bill deal — passed Saturday after lawmakers extended their session by an extra day because of last-minute dealmaking — was sold as a way to ease gas prices and soaring electricity bills while preserving the state’s signature climate programs. Ratepayers are expected to get some relief through measures to cut the cost of building transmission lines, and an expanded cap-and-trade energy credit aimed at blunting rising energy bills. They also will get some protection from utilities hiking rates based on the cost of wildfire-proofing their infrastructure, such as by putting power lines underground. But they’ll also continue paying $9 billion over the next decade into a fund to compensate wildfire victims.

Consumer advocates, led by The Utility Reform Network, warned the change could weaken California’s control over its clean energy agenda and hand more power to a federal government under Trump that is siding with fossil fuels. Some environmental and consumer groups shared that concern. The shift is important because California has spent decades building one of the cleanest grids in the world and the move to open up that system to other Western states could reshape how both renewable and fossil power move across the region.