California energy legislation moves to Governor Newsom

California lawmakers have forwarded several environmental and energy bills to Governor Gavin Newsom, who must decide whether to sign or veto them by September 30. The legislation aims to address climate goals, electricity rates, and grid reliability as the state faces rising demand from electric vehicles and appliances.

One key piece of legislation, Senate Bill 905, seeks to regulate and compensate investor-owned utilities differently to lower electricity prices. Other bills aim to increase solar access for tenants and allow smart devices, such as electric vehicles and thermostats, to support the electrical grid.

Additionally, the Home Energy Choice Act provides households an alternative to expensive gas service line replacements. Under this law, utilities must offer financial incentives for customers to electrify their homes instead of upgrading aging gas infrastructure. While the program is capped at 1% of a utility’s customers and set to expire in 2035, it is designed to help California reach its carbon-neutral goal by 2045. Some utilities, including San Diego Gas and Electric and SoCalGas, have expressed concerns regarding potential cost shifts to remaining gas customers.