California Assembly Approves Community Renewable Energy Bill

Published on:
by KnowESG
pexels-los-muertos-crew-8853539

The California State Assembly enacted legislation that will boost community renewable energy and improve grid stability in the state.

The bill, AB 2316, creates a state community renewable energy programme that makes clean energy more accessible to all companies, whether they rent or own property. The law also imposes energy storage restrictions on community solar projects that are intended to improve grid dependability, which can assist the state during power outages caused by excessive demand or natural disasters.

The bill mandates that the California Public Utilities Commission facilitate the development and funding of sustainable community renewable energy facilities and provides financial incentives for facilities that serve low-income customers or groups that help disadvantaged communities. It will assist builders in meeting California rules mandating solar energy be placed in new buildings, besides providing access to renewable energy projects such as community solar.

Supporters of the plan also claim that a $1 billion investment in the state budget is required to fund the programme. According to the Energy News Network, California's budget for 2022–2023 included $32 billion to address climate concerns, including $970 million for rooftop solar and storage but no explicit funding for community solar.

According to the Coalition for Community Solar Access, community solar projects typically consist of small-scale installations, generally built on landfills or old industrial areas, and now account for more than 5 gigawatts of electricity. The Biden Administration's aim of achieving 100 per cent sustainable energy by 2035 includes community solar, and the Department of Energy formed the National Community Solar Partnership last year.

By March 31, 2023, the California Public Utilities Commission is required to begin proceedings to establish a community renewable energy programme. It also mandates that the commission assess existing programmes by the end of 2023 to determine if they fit the legislation's standards and, if so, whether they should be modified, retained, or eliminated.

The bill has been opposed by utility companies like Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric, in part because it overlaps with existing programmes and could force them to offer services in places where they are no longer operational.

Source: Environmental Leader

For more regulatory news

Share:
esg
esg
esg
esg

Regulators Headlines

Closing the Climate Gap: How the SBTi Revision Impacts Corporate Net-Zero Plans

Closing the Climate Gap: How the SBTi Revision Impacts Corporate Net-Zero Plans

Trump Backs 24 States Suing New York and Vermont Over Climate Liability Laws

Trump Backs 24 States Suing New York and Vermont Over Climate Liability Laws

Businesses Call for UK–EU Carbon Market Connection

EU to Expressly Set Out Sustainability Reporting Rules by October

Trump’s Support for Seabed Mining Draws EU Criticism

EU Moots Plans to Ban Carbon Fibre by 2029

PwC: Singapore's Sustainability Legal Services to Triple by 2033

SBTi Releases Revised Corporate Net-Zero Standards for Public Input

Research: European ESG Funds Invested Over €123B in Fossil Fuels

Australian Super Fund Active Super Fined $10.5M Over Greenwashing