Inside the end-of-session energy pileup
With help from Alex Nieves
GET YOUR ENERGY DRINKS: It wouldn't be the end of a legislative session without Gov. Gavin Newsom stepping in with last-minute energy demands. But this year, the stakes are super-charged, with multiple consequential fights converging at once.
With a week to go before lawmakers return to Sacramento and a month to go before the end of session, here's where Newsom's big asks stand:
Cap-and-trade …
The slow grind on reauthorizing California's landmark climate program has fueled speculation it could slip to next year, since the current program doesn't expire for five more. Newsom spokesperson Daniel Villaseñor insisted on Monday they're still on track: 'We continue to work with our legislative partners and leadership to advance the joint effort to reauthorize and extend the state's cap-and-trade program this legislative year.'
The Assembly and the Senate aren't on the same page yet about how much to reform the market-based program, with the Assembly closer to Newsom's straight reauthorization (with some small tweaks) and the Senate pushing broader adjustments to lower greenhouse gas emissions further. 'We're in that stage where everyone's got a basic framework, and it's just finding where those missions are in conflict,' said Assemblymember Isaac Bryan, one of the Assembly working group's members.
Another sticking point: how to split the program's billions in revenue. Lawmakers — who need a two-thirds majority to pass the bill — want more control after Newsom proposed setting aside nearly half for Cal Fire and high-speed rail.
… meet refineries
Newsom's proposal to increase California's crude extraction to keep refineries afloat is gaining traction with lawmakers scared of a spike in gas prices if they don't avoid more refinery closures, with even climate hawk Sen. Henry Stern telling us more drilling in Kern County is necessary. But environmentalists are bristling at Newsom's 'drill one new well, plug two old ones' proposal, which they say could open up drilling statewide.
Lawmakers are watching the California Energy Commission's next move on refineries to determine how far they're willing to go with Newsom's refinery draft legislation; the agency meets Wednesday to officially vote on whether to punt on a profit margin cap and kick off a more formal process reconsidering reporting and minimum inventory requirements.
Electric sparks
Newsom swallowed the bitter political pill himself earlier this month when he officially proposed reupping the state's wildfire liability fund, meant to prevent utilities from going bankrupt when their equipment sparks wildfires, with a $9 billion extension of a surcharge on ratepayer bills (and $9 billion from shareholders).
Sen. Josh Becker, the Senate Energy Committee chair, told POLITICO he wants to get it done, too, because Southern California Edison could drain the fund with its potential liability from the Eaton Fire. But, Becker said, 'we have to make sure that utilities are held accountable.' Among his cards: proposals limiting what infrastructure costs investor-owned utilities can pass along to ratepayers, which the latter are not fond of.
Meanwhile, Newsom has thrown all his eggs into another electric affordability measure: setting up a West-wide electricity grid, which he's called the 'best shot' at affordability this year. He'll still have to figure out a fix with the Senate, which passed a version of the bill backers are now calling untenable.
Permit me
Still alive from the governor's budget wish list: fast-tracking a controversial tunnel to reroute water around the Sacramento-San Joaquin River and speeding up a series of water-conservation and habitat-protection deals to head off tighter Bay-Delta rules.
But the appetite for more permitting changes this year is mixed: Some senators are burned out after Newsom's big overhaul of the California Environmental Quality Act in June, while others see momentum and want to go further, especially on renewable energy projects now facing the imminent loss of federal tax credits. Environmental lawmakers are also not letting up on clean-up language to Newsom's CEQA overhaul, following up just last week in a letter asking leadership to remove or narrow the CEQA exemption for advanced manufacturing, which they said could touch on any project that uses AI.
The big elephant in the room
Looming over the end-of-session pileup is Newsom's bid to redraw congressional maps to give Democrats more seats. Lawmakers seem to be mostly falling in line, but the issue is set to suck all the oxygen away at the beginning of session: When they return Aug. 18, the Legislature will have just a few days before an Aug. 22 deadline to vote to place the redistricting proposal on the Nov. 4 ballot.
Bryan said redistricting 'would take precedence' because of the deadlines but that he's ready to do it all: 'I'm preparing that when we get back, just to hit the ground running on all fronts.' — CvK
Did someone forward you this newsletter? Sign up here!
IT'S AD SEASON: One of California's top environmental groups infused more cash into its multi-million-dollar ad campaign Monday as it tries to counter oil industry lobbying aimed at pressuring state lawmakers to roll back climate policies.
The California Environmental Voters Education Fund launched a seven-figure statewide television and digital ad buy, which includes 30- and 60-second spots that pin rising gasoline and energy prices on fossil fuel companies.
'The oil industry stalls clean energy plans as utility bills soar across the country,' a fictional newscaster says during the ad, alongside images of a woman pumping gas and using her air conditioner in sweltering heat.
It's EnviroVoters' second seven-figure ad buy this year, and comes after the Western States Petroleum Association spent millions more on its ongoing affordability campaign in May. — AN
WESTERN STANDOFF: A coalition of business and environmental groups pushing for a West-wide grid launched a mid-six figures digital ad buy on Monday pushing lawmakers to pass a 'workable' SB 540.
The coalition spans renewable energy trade groups, electrical worker unions, companies including Rivian and environmental groups including Environmental Defense Fund and Sierra Club. They're pushing for a version of Becker's legislation that cedes enough control to an independent grid manager to convince utilities in other states to link up with California.
'The huge coalition of supporters is rallying to pass a workable version of SB 540 because it's the best thing lawmakers can do right now on affordability, and this can't wait,' American Clean Power-California Executive Director Alex Jackson said in a statement. — CvK
FOIA FEE WIN: A federal judge awarded Friends of the River nearly half a million dollars in attorneys' fees Friday after the conservation group won a nine-year Freedom of Information Act dispute with the Army Corps of Engineers over records related to the Yuba River.
The award, $491,676 in attorneys' fees and $2,548 in costs, was nearly twice what the Army Corps of Engineers had proposed paying, as Michael Doyle reports for POLITICO's E&E News.
A judge had already ruled that the federal agency had improperly withheld the records regarding the impact of dam operations on the Yuba River on endangered species like salmon and steelhead.
U.S. Magistrate Judge Zia Faruqui wrote that the case produced a 'public benefit,' shedding light on whether the Corps was meeting its environmental obligations, and that the federal agency had 'frustrated the policy of open government' throughout the legal fight. — MD, CvK
SETTING THE AGENDA: On Wednesday, Aug. 27, POLITICO is hosting its inaugural California policy summit: The California Agenda. Come see the Golden State's most prominent political figures — including Sen. Alex Padilla and gubernatorial candidates Katie Porter and Xavier Becerra — share the stage with influential voices in tech, energy, housing and other areas at the forefront of the state's most critical policy debates. The live event is currently at capacity, but will be streamed. Advance registration is required. Stay tuned for more on speakers and discussion topics, and request an online invite here.
— California Air Resources Board member and former state Sen. Dean Florez calls for more funding and other policy changes to prevent heat illness and death in outdoor workers.
— The Los Angeles Times' Ian James digs deep into Southern California's options to avoid running out of water.
— The Yale Program on Climate Change Communication says media should avoid using 'fun in the sun' images to depict dangerous heat waves.
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Gov. Newsom says he'll back down from redistricting threats if Texas throws out new maps
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Inside the end-of-session energy pileup
Presented by With help from Alex Nieves GET YOUR ENERGY DRINKS: It wouldn't be the end of a legislative session without Gov. Gavin Newsom stepping in with last-minute energy demands. But this year, the stakes are super-charged, with multiple consequential fights converging at once. With a week to go before lawmakers return to Sacramento and a month to go before the end of session, here's where Newsom's big asks stand: Cap-and-trade … The slow grind on reauthorizing California's landmark climate program has fueled speculation it could slip to next year, since the current program doesn't expire for five more. Newsom spokesperson Daniel Villaseñor insisted on Monday they're still on track: 'We continue to work with our legislative partners and leadership to advance the joint effort to reauthorize and extend the state's cap-and-trade program this legislative year.' The Assembly and the Senate aren't on the same page yet about how much to reform the market-based program, with the Assembly closer to Newsom's straight reauthorization (with some small tweaks) and the Senate pushing broader adjustments to lower greenhouse gas emissions further. 'We're in that stage where everyone's got a basic framework, and it's just finding where those missions are in conflict,' said Assemblymember Isaac Bryan, one of the Assembly working group's members. Another sticking point: how to split the program's billions in revenue. Lawmakers — who need a two-thirds majority to pass the bill — want more control after Newsom proposed setting aside nearly half for Cal Fire and high-speed rail. … meet refineries Newsom's proposal to increase California's crude extraction to keep refineries afloat is gaining traction with lawmakers scared of a spike in gas prices if they don't avoid more refinery closures, with even climate hawk Sen. Henry Stern telling us more drilling in Kern County is necessary. But environmentalists are bristling at Newsom's 'drill one new well, plug two old ones' proposal, which they say could open up drilling statewide. Lawmakers are watching the California Energy Commission's next move on refineries to determine how far they're willing to go with Newsom's refinery draft legislation; the agency meets Wednesday to officially vote on whether to punt on a profit margin cap and kick off a more formal process reconsidering reporting and minimum inventory requirements. Electric sparks Newsom swallowed the bitter political pill himself earlier this month when he officially proposed reupping the state's wildfire liability fund, meant to prevent utilities from going bankrupt when their equipment sparks wildfires, with a $9 billion extension of a surcharge on ratepayer bills (and $9 billion from shareholders). Sen. Josh Becker, the Senate Energy Committee chair, told POLITICO he wants to get it done, too, because Southern California Edison could drain the fund with its potential liability from the Eaton Fire. But, Becker said, 'we have to make sure that utilities are held accountable.' Among his cards: proposals limiting what infrastructure costs investor-owned utilities can pass along to ratepayers, which the latter are not fond of. Meanwhile, Newsom has thrown all his eggs into another electric affordability measure: setting up a West-wide electricity grid, which he's called the 'best shot' at affordability this year. He'll still have to figure out a fix with the Senate, which passed a version of the bill backers are now calling untenable. Permit me Still alive from the governor's budget wish list: fast-tracking a controversial tunnel to reroute water around the Sacramento-San Joaquin River and speeding up a series of water-conservation and habitat-protection deals to head off tighter Bay-Delta rules. But the appetite for more permitting changes this year is mixed: Some senators are burned out after Newsom's big overhaul of the California Environmental Quality Act in June, while others see momentum and want to go further, especially on renewable energy projects now facing the imminent loss of federal tax credits. Environmental lawmakers are also not letting up on clean-up language to Newsom's CEQA overhaul, following up just last week in a letter asking leadership to remove or narrow the CEQA exemption for advanced manufacturing, which they said could touch on any project that uses AI. The big elephant in the room Looming over the end-of-session pileup is Newsom's bid to redraw congressional maps to give Democrats more seats. Lawmakers seem to be mostly falling in line, but the issue is set to suck all the oxygen away at the beginning of session: When they return Aug. 18, the Legislature will have just a few days before an Aug. 22 deadline to vote to place the redistricting proposal on the Nov. 4 ballot. Bryan said redistricting 'would take precedence' because of the deadlines but that he's ready to do it all: 'I'm preparing that when we get back, just to hit the ground running on all fronts.' — CvK Did someone forward you this newsletter? Sign up here! IT'S AD SEASON: One of California's top environmental groups infused more cash into its multi-million-dollar ad campaign Monday as it tries to counter oil industry lobbying aimed at pressuring state lawmakers to roll back climate policies. The California Environmental Voters Education Fund launched a seven-figure statewide television and digital ad buy, which includes 30- and 60-second spots that pin rising gasoline and energy prices on fossil fuel companies. 'The oil industry stalls clean energy plans as utility bills soar across the country,' a fictional newscaster says during the ad, alongside images of a woman pumping gas and using her air conditioner in sweltering heat. It's EnviroVoters' second seven-figure ad buy this year, and comes after the Western States Petroleum Association spent millions more on its ongoing affordability campaign in May. — AN WESTERN STANDOFF: A coalition of business and environmental groups pushing for a West-wide grid launched a mid-six figures digital ad buy on Monday pushing lawmakers to pass a 'workable' SB 540. The coalition spans renewable energy trade groups, electrical worker unions, companies including Rivian and environmental groups including Environmental Defense Fund and Sierra Club. They're pushing for a version of Becker's legislation that cedes enough control to an independent grid manager to convince utilities in other states to link up with California. 'The huge coalition of supporters is rallying to pass a workable version of SB 540 because it's the best thing lawmakers can do right now on affordability, and this can't wait,' American Clean Power-California Executive Director Alex Jackson said in a statement. — CvK FOIA FEE WIN: A federal judge awarded Friends of the River nearly half a million dollars in attorneys' fees Friday after the conservation group won a nine-year Freedom of Information Act dispute with the Army Corps of Engineers over records related to the Yuba River. The award, $491,676 in attorneys' fees and $2,548 in costs, was nearly twice what the Army Corps of Engineers had proposed paying, as Michael Doyle reports for POLITICO's E&E News. A judge had already ruled that the federal agency had improperly withheld the records regarding the impact of dam operations on the Yuba River on endangered species like salmon and steelhead. U.S. Magistrate Judge Zia Faruqui wrote that the case produced a 'public benefit,' shedding light on whether the Corps was meeting its environmental obligations, and that the federal agency had 'frustrated the policy of open government' throughout the legal fight. — MD, CvK SETTING THE AGENDA: On Wednesday, Aug. 27, POLITICO is hosting its inaugural California policy summit: The California Agenda. Come see the Golden State's most prominent political figures — including Sen. Alex Padilla and gubernatorial candidates Katie Porter and Xavier Becerra — share the stage with influential voices in tech, energy, housing and other areas at the forefront of the state's most critical policy debates. The live event is currently at capacity, but will be streamed. Advance registration is required. Stay tuned for more on speakers and discussion topics, and request an online invite here. — California Air Resources Board member and former state Sen. Dean Florez calls for more funding and other policy changes to prevent heat illness and death in outdoor workers. — The Los Angeles Times' Ian James digs deep into Southern California's options to avoid running out of water. — The Yale Program on Climate Change Communication says media should avoid using 'fun in the sun' images to depict dangerous heat waves.
