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California's May revised budget sets the stage for much needed conversation around grid reliability

Posted by Cayli Baker on May 13, 2022

Governor Newsom’s updated budget proposal presents an opportunity to boost the state’s efforts toward a 100% clean grid, but should focus on clean energy reliability strategies to address short-term and long- term needs.

SACRAMENTO, May 13, 2022 — Today, national business group Advanced Energy Economy (AEE) responded to Governor Newsom’s proposed $8 billion in clean energy and $10 billion in clean transportation investments in his revised budget. 

“California’s budget surplus is a historic opportunity to invest in the technologies and programs we need right now to create the family-supporting jobs of the future and help California meet its clean energy goals,” said Emilie Olson, AEE’s California policy lead. “The Governor and the legislature can, and should, use this opportunity to bolster clean energy technologies that will save California households and businesses money long-term by spurring innovation and economic growth in every part of the state.” 

The updated budget proposal, which remains up for negotiation until June 15, dedicates funding to build new energy storage projects, expand the state’s offshore wind resources, and introduces demand-side grid-support initiatives that will help alleviate strain when California’s energy needs are at their highest. The budget also includes multi-year funding for equity transportation programs and ZEV funding for both passenger and medium- and heavy-duty vehicles, along with charging infrastructure investments needed to support them. 

“As California grapples with wildfires, heat waves, and blackouts, we need to equip communities with localized clean energy solutions like micro-grids and on-site solar plus storage systems, while also fast-tracking the buildout and facilitation of new electricity transmission lines that will support more clean energy resources and make the power grid more reliable,” added Olson. “Investments should be focused on cleaner solutions that will not only help protect residents from hot, dry summers, but also keep California’s energy affordable and aid the state in its transition away from costly, resource-intensive power plants. Focusing additional state resources from this historic budget surplus on clean energy resources and programs that bolster a more resilient grid will be essential for keeping the lights on, improving public health, and maximizing benefit for all residents.” 

“AEE looks forward to working with the legislature and the Governor’s Office in the coming weeks to produce a budget that keeps our grid and our transportation system on track with California's 100% clean energy commitments and reaches communities in all corners of the state,” continued Olson.

At the end of 2020, there were over 500,000 Californians employed by the state’s advanced energy industries. There are more than 40,000 Californians at work in the state’s EV industry, and an estimated 3,900 California companies involved in the electrified transportation supply chain.

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Topics: State Policy, Press Releases