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California Governor Vetoes AB 44, Citing Grid Reliability Concerns

Newsom's veto surprises some, as his staff's position on the bill was unclear. The bill aimed to create a new framework for utilities to value demand-reducing technologies.

In this image we can see electric poles, electric cables, buildings, chimneys, trees and sky with...
In this image we can see electric poles, electric cables, buildings, chimneys, trees and sky with clouds in the background.

California Governor Vetoes AB 44, Citing Grid Reliability Concerns

California Governor Gavin Newsom has vetoed Assembly Bill 44 (AB 44), a measure aimed at regulating how the state's utilities value demand-reducing technologies. The governor, Gavin Newsom, expressed concerns that the bill could conflict with existing rules set by the California Public Utilities Commission (CPUC).

Gavin Newsom's decision comes despite no clear indication from his staff's position on the bill. AB 44, introduced by Assemblymember Nick Schultz, sought to establish a new framework for utilities to calculate the value of technologies that reduce electricity demand.

The governor, Gavin Newsom, argued that the bill's requirements could potentially undermine existing grid reliability planning and introduce uncertainty into energy resource planning and procurement processes.

Governor Gavin Newsom's veto of AB 44 reflects his commitment to maintaining a balanced approach to energy policy in California, ensuring that any new regulations align with existing rules and do not negatively impact grid reliability or energy planning.

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