Newsom signs major energy, climate package into law

Becker, who chairs the state Senate’s Energy, Utilities and Communications Committee, said getting the legislation enacted was a monumental achievement for the state. 

“To get it over the finish line, to finish it, was a huge sense of accomplishment,” he said. 

Senate Bill 254 aims to address skyrocketing electricity rates, including a 90% increase for Southern California Edison customers in the past 10 years and a 110% increase for Pacific Gas and Electric customers. 

The bill will revamp parts of California’s utility structure — creating public financing opportunities for large-scale projects and potentially saving ratepayers hundreds of millions annually. 

“Overall, it’s a really powerful bill,” Becker said. “[Including a] first ever public funding piece to start the process of public funding infrastructure … estimates saving up to $3 billion a year.” 

The bill, which attempts to address the financial burden of adapting the electricity grid for wildfire risk, strengthens reviews of utility wildfire mitigation spending and, in a last-minute change, establishes an extension of the Wildfire Fund. 

Both utilities and ratepayers will contribute $9 billion to the fund over the next several decades to help mitigate the costs of rebuilding after devastating wildfires, replenishing a funding source that’s been depleted by fires in L.A. this year. 

“It wasn’t on anybody’s radar screen when we started out but it’s a critical piece,” Becker said. “It’s the fire victims that are left holding the bag if that fund gets exhausted.” 

Ratepayers already see a surcharge for contributing to the fund, Becker said, and the legislation ensures that surcharge continues past 2035. 

His other piece of legislation, Assembly Bill 825, backs a long-awaited expansion into a western regional power market and would allow California to participate in a multistate coalition to buy and sell energy under one market. 

The legislation could help California save up to $1 billion annually in electricity costs, Becker said, refuting claims from some environmental advocates that the bill would enable California to participate in energy markets from other states with less-rigorous clean energy source standards. 

“That got debunked a little bit as the process went along, which is why you had pretty much every major environmental group supporting it,” he said. “What’s really important is that we have … excess solar at certain points of the year. We’re going to be able to now seamlessly sell that to other states.” 

California won’t be able to officially enter the western market until 2028, given certain standards are met. 

When the legislative session reconvenes, Becker said energy and affordability work will remain a top priority — but for now, he’s taking a pause to reflect and celebrate the changes that have been made with the new bills. 

“We’ll be back, but not fully thinking about all that yet,” he said. “Still celebrating. It’s a chance to talk about what we’ve done.”