Cal democrats unveil energy affordability package
Alan Riquelmy
SACRAMENTO, Calif. (CN) — California Democratic leaders on Wednesday revealed a legislative package focused on energy, climate and affordability, which they say will lower utility costs.
The bill package, unveiled in the waning days of the Legislature’s session, was touted as a means to stabilize oil production in the state, offer savings to ratepayers through California’s wildfire fund, explore a regional electricity partnership across the West and advance the Golden State’s climate program.
“After months of hard work with the Legislature, we have agreed to historic reforms that will save money on your electric bills, stabilize gas supply, and slash toxic air pollution — all while fast-tracking California’s transition to a clean, green job-creating economy,” Governor Gavin Newsom said in a statement.
The package comes at the end of a session that began with Democratic leaders saying they would focus on affordability this year. It also happened in the wake of announcements that two refineries in the state would shutter — closures that have been known for months.
Republicans have argued those closures, along with changes to the state’s low carbon fuel standard, would lead to gas price spikes.
On Wednesday, state Senator Shannon Grove, a Bakersfield Republican, praised Senate Bill 237, which is intended to stabilize California’s oil production.
The bill would allow Kern County to approve 2,000 new well-drilling permits a year. In a statement, Grove said California allowed only 84 new well permits last year, with only a few approved this year.
“Kern County has produced the most restrictive, environmentally friendly, and legally sound environmental impact report in existence, a blueprint for California’s energy production,” Grove said. “If California is serious about securing a stable, affordable, domestic energy supply, not only for us, but for Arizona, Nevada and New Mexico as well, it must start in Kern County, where every new well achieves net-zero carbon increase.”
The bill doesn’t make an end-run around the California Environmental Quality Act but instead offers a streamlined method of making oil projects possible, said Lorelei Oviatt, a former Kern County planning director, in a statement.
Other bills in the legislative package are aimed at reducing utility costs through public infrastructure financing and the creation of a regional electricity partnership across the western U.S.
Top Democratic lawmakers praised the work that made the package possible.
Assembly Speaker Robert Rivas in a statement said the bills would form a foundation that lowers energy costs and helps California families keep more of their money.
“And we took the time to get it right because real change, reduced prices and protecting homeowners is essential,” Rivas said. “This historic agreement puts California on a pathway with Western states to provide cleaner, cheaper, more reliable energy. It’s a landmark affordability agreement that will amount to billions of dollars in savings for Californians.”
Senate President pro Tempore Mike McGuire said in a statement California stood ready to face national economic turmoil while simultaneously growing jobs in the state.
“This bold legislative package will deliver for every corner of the Golden State on energy affordability and wildfire prevention, expand clean drinking water to tens of thousands and it also cements historic agreements on California’s signature climate policies,” McGuire said.
Some Republicans pushed back on the Democrats’ narrative.
“What’s bold about cutting secret energy deals in all-night negotiations Californians haven’t seen and can’t weigh in on?” Assemblymember and Minority Leader James Gallagher, a Yuba City Republican, asked in a statement. “After nine months of empty promises on affordability, this ‘historic agreement’ is just a scramble to cover failure. No public plan. No real savings. Just budget gimmicks and insider games while families keep paying the price.”
The Center for Biological Diversity described S.B. 237 as a wrongheaded approach. The legislation concedes that oil drilling causes harm while enhancing it, the nonprofit said in a statement.
“Removing environmental safeguards won’t reverse the terminal decline of California oil production but it will allow the industry to do more damage on its way out the door,” said Nyshie Perkinson, a senior media specialist with the Climate Law Institute at the center. “This bill would mean more air, water and greenhouse gas pollution while having no impact on refinery closures or gas prices.”