California lawmakers have passed a game-changing bill that could potentially save California residents up to $10 billion on energy costs over the next decade.
As reported by Canary Media, AB 825 was signed into law by California Governor Gavin Newsom on September 18. The bill was just one part of a legislative package that is geared up to save California energy customers money on their electric bills while also stabilizing the state's gas market and cutting pollution.
The legislation is set to provide cost-effective and reliable electricity while also aligning with the state's long-term climate goals. AB 825 establishes a framework for the California Independent System Operator to collaborate with outside electricity markets in other states.
By improving coordination, the bill aims to enhance the reliability of the Western bulk electric system, ensuring a stable supply of power for consumers.
Brian Turner, policy director at Advanced Energy United, applauded the signing of the bill. "We've shot the starting gun," Turner said, per Canary Media.
Just days before AB 825 was passed, California State Senator Josh Becker emphasized the importance of the bill and all that it could achieve in the long run. "As we move toward achieving California's 100% clean energy goals, we must look at every opportunity to reduce costs, improve reliability, and cut emissions," Becker said in a statement.
In 2022, California introduced a goal to achieve net-zero carbon emissions by 2045. This includes cutting air pollution by 71% by that target date. A key safeguard included in AB 825 ensures that governance of the new collaborative Western market respects "state procurement, environmental, reliability, and other public policies."
By trading with neighboring states, California can reduce its reliance on fossil fuel-reliant energy plants, especially during peak demand. This has the potential to dramatically lower overall gas emissions and air pollution in the state.
"AB 825 strikes that balance by unlocking the benefits of a regional energy market while safeguarding California's public policy priorities," added Becker. "This is a win-win for California families, our economy, and our climate future."
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