THE NET-ZERO BLOG
Climate policy analysis and updates from Sacramento
Public financing of transmission would not damage the financial health of California IOUs, new analysis shows
Energy affordability is a central issue before the Legislature. One strategy in particular - reducing costs to build a modern transmission system by changing how this infrastructure is financed - would reap significant savings. However, a key concern that has consistently been raised by investor-owned utilities is that any attempt to change how the grid is financed, would result in credit downgrades for the utilities, and ultimately higher costs to ratepayers. This blog summarizes a new research note from the Center for Public Enterprise which addresses this knowledge gap.
Press release: Organizations push California leaders to prioritize infrastructure financing reforms
Today, Sunstone Strategies published a press release highlighting a major push by thirteen business, consumer, environmental, and clean power groups urging California lawmakers and Governor Newsom to act on reforms that could save utility customers nearly $4 billion each year.
Assembly releases cap-and-invest proposal that prioritizes affordability, clean energy
Today, the Assembly released a cap-and-invest reauthorization proposal. In this blog, we summarize the key reforms related to the market-based mechanism, including distribution of utility allowances, residential climate credit, and a new Clean Energy Infrastructure Investment Fund. Overall, the Assembly proposal would serve to meet immediate- and long-term energy affordability objectives while driving emissions reductions consistent with the state’s greenhouse gas mitigation goals.
Op-ed: How current programs can inform future cap-and-trade investments
NZC’s Sam Uden published an op-ed in Capitol Weekly which examines the Governor Newsom’s proposal to extend California’s cap-and-trade program to 2045. The piece highlights the cost-ineffectiveness of Greenhouse Gas Reduction Fund spending and misalignment with key state climate strategies. The op-ed introduces an ‘Affordable Net-Zero’ investment framework that would shift these investments to support California’s climate and affordability goals.
Analyzing the Governor’s proposed climate actions in the May Revise budget
Yesterday, Governor Newsom released the May Revision to the 2025-26 State Budget, totaling $322 billion in proposed expenditures and including multiple key climate actions. In this short article, we analyze the degree to which these actions could support the state’s climate and energy affordability goals.
Near-term policy opportunities for carbon removal in California
In this blog, we identify near-term, low-cost and viable policy opportunities that would remove key barriers to carbon capture, removal and storage while not crowding-out other important state priorities, such as energy affordability. These policies include: (i) regulatory reforms, such as establishing a clear permitting framework and removing the moratorium on CO2 pipelines, amongst others; (ii) market signals, including establishing that carbon capture is an eligible emissions reduction action under Cap-and-Trade as well as guidance for biomass pathways under the Low Carbon Fuel Standard; and (iii) direct funding, including allocating a portion of Greenhouse Gas Reduction Fund revenues for direct procurement as well as continuing to pursue potential, albeit uncertain, federal opportunities. We conclude by briefly summarizing a ‘business models’ approach to carbon infrastructure for stakeholder consideration.