Newsom Vetoes AB 44: California's Demand Tech Regulation Bill Blocked
California Governor Gavin Newsom has vetoed Assembly Bill 44 (AB 44), a piece of legislation aimed at regulating how utilities value demand-reducing technologies. The bill, authored by Assemblymember Chris Holden, was passed by the Legislature with bipartisan support but faced rejection due to the governor's concerns.
AB 44 sought to establish rules for evaluating load-reducing technologies and strategies for predicting the amount of electricity utilities must purchase. However, Gov. Newsom expressed that the bill would not enhance electric grid reliability planning and could introduce uncertainty in energy resource planning and procurement.
The bill did not encounter registered opposition during its passage through the Legislature. Despite this, Newsom rejected it due to worries that it might conflict with existing rules set by the California Public Utilities Commission.
Governor Newsom's veto of AB 44 means the bill's provisions will not be implemented. The governor's decision highlights the importance of aligning new regulations with existing rules to ensure a stable and reliable energy market in California.
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