California Governor Vetoes AB 44 Over Grid Reliability Concerns
California Governor Gavin Newsom has vetoed Assembly Bill 44 (AB 44), a piece of legislation that sought to regulate how utilities assess demand-reducing technologies and strategies. The bill, authored by Assemblymember Chris Schultz, had previously gained bipartisan support in the Legislature and faced no registered opposition during its time in the Capitol.
AB 44 aimed to enhance the valuation of demand response programs by utilities. However, Governor Newsom expressed concerns that the bill's requirements could potentially conflict with existing rules set by the California Public Utilities Commission (CPUC).
In his veto message, Newsom argued that the bill's provisions would not necessarily improve electric grid reliability planning. Furthermore, he worried that it could introduce uncertainty into the state's energy resource planning and procurement processes.
Despite its initial bipartisan support, AB 44 has been vetoed by Governor Gavin Newsom due to perceived conflicts with existing regulations and potential impacts on energy planning processes. The bill's future remains uncertain, and it is unclear whether lawmakers will attempt to revive or amend it in the future.
