Climate
California enacts laws limiting utility profits, expanding home-based clean energy
PN Team • 1 month ago
Gov. Gavin Newsom signed a package of energy and environmental bills closing out California's 2026 legislative session, reshaping how the state's power system is run and financed. Senate Bill 913 directs the Public Utilities Commission to create a pathway by June 30, 2027, for aggregating home batteries, solar panels, EV chargers and smart thermostats into "virtual power plants" that can export electricity to relieve grid strain. SB 905 requires the CPUC to consider lowering utility profit margins on lower-risk investments, such as undergrounding lines, and pushes utilities to disclose unused grid capacity. PG&E and Southern California Edison opposed SB 905, warning it could discourage needed infrastructure investment, while remaining neutral on the virtual power plant measure. A related law from Sen. Scott Wiener eases permitting for small "balcony solar" systems aimed at renters.
Newsom also signed measures countering federal fossil-fuel expansion, including new environmental review requirements for coal facilities tied to a planned Oakland export terminal, and a ban on using state waters to support new federal offshore oil leases. He vetoed bills on community solar and industrial siting reforms, and signed a $7.5 billion science and health research bond for the 2028 ballot.
Sources:
Sentiment
- Gavin Newsom Newsom is portrayed as proactively signing consumer- and environment-friendly energy legislation, enhancing his reputation as a climate leader.
- California California is depicted as advancing innovative clean energy and environmental policy, a favorable portrayal.