Today at the CPUC: Legislative Lifeline for Ratepayers as AB 1999 Amends Utility Tax

by Bradley Bartz

Los Angeles CA (SPX) May 11, 2024

In a rapid response to public outcry and mounting pressure, California lawmakers have taken decisive action to amend Assembly Bill 1999 (AB 1999), aiming to cap the controversial Big Utility Tax. This legislative effort follows closely on the heels of the California Public Utilities Commission’s (CPUC) decision to impose a $24/month Utility Tax starting in 2026, which would affect approximately four million households across the state, including many solar users.

Yesterday, the CPUC approved what will be the second largest Utility Tax in the nation, set to increase household energy bills significantly. This decision has catalyzed urgent legislative efforts to mitigate the financial burden on Californians, particularly renters, seniors, and those using renewable energy sources like solar.

Legislative Response and AB 1999

Thanks to widespread public and industry advocacy, AB 1999 has been swiftly revived and amended by Assembly Speaker Robert Rivas. The amended bill, which now includes a cap on the Utility Tax at $24 and ties any future increases strictly to the rate of inflation, offers a pragmatic approach to a potential financial escalation. Notably, the bill proposes a sunset clause for the tax in 2028, providing a clear end date to the imposed charges.

The revival of AB 1999 is a testament to the effectiveness of collective voice and action. The public’s response, including a significant protest outside the CPUC meeting, has been a critical factor in the rapid legislative developments. Assemblymember Jacqui Irwin, author of AB 1999, has been pivotal in keeping the bill active and pushing for amendments that align more closely with public interest.

The issue has garnered extensive media attention, with major outlets like the LA Times and San Francisco Chronicle highlighting the implications of the new Utility Tax. This coverage has played a crucial role in informing the public and amplifying the call for legislative action.

The legislative journey for AB 1999 is far from over. The bill faces several hurdles before it can be passed by the Legislature and signed into law by the Governor. To support this effort, a Zoom Webinar is scheduled for May 16th, where details of the AB 1999 amendments will be discussed, and strategies to advocate for its passage will be shared.

The CPUC’s decision and the subsequent legislative actions highlight the ongoing debate over energy policy in California, particularly the balance between funding utility infrastructure and promoting renewable energy adoption. As the state progresses towards its clean energy goals, the outcomes of these legislative efforts will significantly influence the economic landscape for millions of Californians.

More at the CPUC: A New Era for Solar with Resolution E-5260

In a significant move aimed at bolstering California’s clean energy goals, the California Public Utilities Commission (CPUC) has approved a series of advice letters from the state’s major utility companies-Pacific Gas and Electric (PG and E), San Diego Gas and Electric (SDG&E), and Southern California Edison (SCE). These advice letters introduce Operational Flexibility Pilot proposals, marking a critical step toward enhancing grid reliability and integration of renewable resources.

This approval, encapsulated in Resolution E-5260, comes at a crucial time when California is pushing aggressively to meet its ambitious renewable energy targets. The approved pilots by PG and E, SDG&E, and SCE are set to test innovative approaches to managing the electric grid, which could significantly impact how solar energy is incorporated into the system.

The Operational Flexibility Pilots are designed to test new methods of energy management that could make the grid more adaptable to the fluctuations inherent in renewable energy sources, like solar and wind. By improving how the grid handles these fluctuations, California can better utilize its substantial solar resources, reduce reliance on fossil fuels, and make strides towards its clean energy future.

This development is especially significant given the context of California’s energy landscape. With the state committed to achieving 100% clean energy by 2045, initiatives like these are critical. They not only support the grid’s operational integrity but also ensure that the integration of renewable energy is both sustainable and efficient.

The CPUC’s decision to approve these pilots followed comprehensive reviews and inputs from various stakeholders, reflecting a collaborative approach to addressing California’s energy challenges. Looking ahead, the outcomes of these pilots will provide valuable insights that could lead to broader reforms in how energy is managed across the state, setting a precedent for other regions to follow.

Today at the CPUC is a dedicated series providing the latest updates from the California Public Utilities Commission. Focused on developments affecting the solar energy sector and broader renewable initiatives, this series aims to keep readers informed about the shifting dynamics of energy policy in California.

Bradley Bartz, founder of ABC Solar Incorporated and a vocal advocate at the CPUC, continues to play a crucial role in navigating and interpreting the implications of utility regulations for the solar industry and its consumers.

For more detailed discussions and updates, follow the series and join upcoming webinars through The Solar Bible GPT by Bradley Bartz.

Related Links

Stop The Utility Tax

All About Solar Energy at SolarDaily.com

US forges new ‘battery belt’ in hopes of electric future

By Beiyi SEOW

Greensboro, United States (AFP) May 9, 2024

Growing up, Devante Cuthbertson assumed he might have to leave his North Carolina hometown to pursue a career, but a new multi-billion-dollar Toyota battery plant is offering him a reason to stay put.

The 28-year-old from Greensboro is among students of an apprenticeship program at Guilford Technical Community College, working three days weekly with the automaker with an eye on future employment.

“At one point, I felt maybe I’d go to a different state or a different country and try different job avenues,” Cuthbertson told AFP.

But when the Toyota tie-in “came along, it was like wow, maybe North Carolina isn’t that bad.”

The United States is seeing an investment surge as President Joe Biden pushes to rebuild “hollowed out” industrial communities and grow domestic supply chains in key sectors like electric vehicles (EVs), batteries and semiconductors.

Besides appealing to blue-collar voters in crucial swing states like North Carolina ahead of November’s presidential election, Biden aims to counter China’s dominance in green tech industries.

A new “battery belt” has taken shape, largely across the southeast including North Carolina and Georgia, as factories for EV batteries and components emerge.

But it is unclear that Biden is being credited for this boom.

– ‘Opportunity’ –

The rise of plants in southern areas with non-union workforces has attracted pressure on Biden to deliver on his promise of “good union jobs.”

Last August, a coalition of Alabama and Georgia labor unions and civic groups sought an “enforceable agreement” with automaker Hyundai to safeguard workers’ rights.

The company’s EV plant and partnership for a Georgia battery facility entails a $7.6 billion investment.

Despite some strains, the employment prospects are energizing communities — including Greensboro and surrounding areas built on industries like textiles, tobacco and furniture.

Cuthbertson was working for a laminated floors manufacturer when he heard of Toyota’s arrival.

“I felt like I had an opportunity,” he said. “You become part of something bigger than just a job. It’s a career.”

People discuss the company, he said, “in grocery stores, at school, work.”

By 2028 the $13.9 billion battery plant will employ 5,100 people, up from some 800 now, said Sean Suggs, president of Toyota Battery Manufacturing, North Carolina.

The facility in Liberty, a half-hour drive from Greensboro, will produce batteries for hybrid, plug-in hybrid and all-electric vehicles.

– Infrastructure concerns –

With EV take-up expected at around 30 percent by 2030, US customers need options, Suggs said.

Infrastructure, including a lack of charging stations, remains a concern, he added.

Enter EV fast-charger manufacturer Kempower, which has started shipping products from a new North Carolina factory serving North America.

CEO Tomi Ristimaki said Kempower entered the US market two years earlier than planned due to government funding in the sector.

Since 2021, companies have announced almost $650 billion in US green energy and manufacturing investments, incentivized by grants.

Biden’s climate action plan, the Inflation Reduction Act, funnels some $370 billion into subsidies for America’s energy transition including tax breaks for US-made EVs and batteries.

Ristimaki also expects government infrastructure funding will support demand, and that American and European carmakers will grow as they try to counter China’s dominance.

Kempower is investing over $40 million in its Durham facility, generating hundreds of jobs.

It also plans to ensure more than half its supplies are from US suppliers, to benefit from a government initiative to create a nationwide EV charger network.

– Not just US –

The Tar Heel State has seen “almost unprecedented levels of activity” with green tech projects, said Christopher Chung, chief executive of the Economic Development Partnership of North Carolina.

“Not only are we seeing more of these projects, but on average these projects are significantly larger when it comes to capital investment and employment impact,” he added.

Other major projects include a $5 billion factory investment by semiconductor company Wolfspeed.

But firms must first power through a demand cooldown with several US automakers recently pumping the brakes on EVs.

They must also contend with insufficient skilled workers in manufacturing.

It is unclear if new investments are bolstering Biden’s political prospects, with some attributing these to market forces.

On the ground, the benefits are clear to Toyota machine operator Evito Perez: “Schools are getting more funding that they didn’t have before, a lot of roads are getting changed up.”

But he did not immediately associate it with politics, viewing the green transition as a broader trend.

“It’s not just the United States,” he said.

Related Links

Powering The World in the 21st Century at Energy-Daily.com

China issues draft guidelines to rein in lithium battery industry

by AFP Staff Writers

Beijing (AFP) May 9, 2024

China has released draft guidelines aimed at reining in the country’s lithium battery industry, which has been in Western crosshairs over fears subsidised overproduction could flood global markets with cut-price exports.

Lithium-ion batteries are a form of rechargeable energy storage used in everything from electric cars to scooters, laptops and motorised wheelchairs.

China is the world’s largest lithium battery market, accounting for some 57 percent of global demand in 2022, according to the Economist Intelligence Unit.

The country’s exports have also risen sharply in recent years, including a 33 percent on-year jump in 2023, according to state media reports.

Guidelines issued by the Ministry of Industry and Information Technology on Wednesday — which will not be legally binding and are instead aimed at “encouraging and guiding” the sector — stressed that lithium battery companies must avoid “projects that purely expand capacity”.

They should instead “strengthen technical innovation, raise product quality and lower production costs”, the document said.

The guidelines also urge firms against building production facilities on protected farmland or ecologically important areas.

Existing factories in protected areas should be shut down or “strictly control their scale and gradually move away”, according to the document.

The ministry also called on companies to obey national workplace safety laws and comply with existing product standards.

Foreign officials have warned that with Chinese government support creating more production capacity than global markets can absorb, a flood of cheap exports in key sectors including renewable energy and lithium batteries could hurt industries elsewhere.

Beijing has hit back at Western fears, with Chinese President Xi Jinping this week telling European leaders the “so-called ‘problem of China’s overcapacity’ does not exist either from the perspective of comparative advantage or in light of global demand.”

Related Links

Powering The World in the 21st Century at Energy-Daily.com