2024 Legislative Update
for CalChoice
Presented By : Deveau Burr Group LLC
November | 2024
Agenda
1 1. Recap of Legislative Action
2. Climate & Energy Policy
3. Artificial Intelligence Policy
4. The Budget
5. 2025-26 Legislative Session
Recap of Legislative Action
The Statistics
1 2
3 1206 Bills Reached the Governors Desk (55.8% of bills introduced) 1017 Bills Signed
189 Bills Vetoed
15.7% Veto Rate
In 2024 639 Sente Bills and 1520 Assembly bills were introduced (Total = 2159) 2 Average percentage of introduced bills to reach Governor’s Desk = 47% Climate & Energy Policy
Signed Legislation
Energy Related Legislation
• AB 1921 (Papan): By expanding the definition of “renewable electrical generation facility” to include fuel cells and linear generators using specific fuels, CCAs and LSEs may have access to additional resources to meet Renewable Portfolio Standard (RPS) requirements. This could provide more flexibility in sourcing renewable energy but might require reassessment of eligible resources in procurement planning.
• AB 2368 (Petrie-Norris): This bill focuses on resource adequacy and cost mitigation. CCAs and LSEs may benefit from reduced costs to meet resource adequacy requirements if the CPUC implements cost-mitigation measures. However, it may require CCAs to adjust procurement strategies to align with the new reliability standards. • AB 2779 (Petrie-Norris): The requirement for the Independent System Operator (ISO) to report on grid-enhancing technologies could help CCAs and LSEs understand and potentially benefit from cost and efficiency savings in transmission planning. This might improve long-term planning for integrating renewable resources into their portfolios. • AB 3264 (Petrie-Norris): This bill mandates tracking and analyzing total energy costs for residential households, which could spotlight cost disparities between investor-owned utilities (IOUs) and CCAs. It might push CCAs to demonstrate their competitiveness and efficiency to customers in managing residential energy costs. • SB 1006 (Padilla): Requiring utilities to study and implement grid-enhancing technologies could facilitate more renewable energy connections, which CCAs and LSEs can leverage to meet their clean energy goals. However, the associated costs and timelines might influence how quickly CCAs can incorporate these benefits into their operations. 3 Climate & Energy Policy
Signed Legislation
Climate Related Legislation
• SB 219 (Wiener/Stern): This bill focuses on corporate accountability and financial risk related to climate change. By delaying the implementation of regulations until July 2025 and consolidating reporting at the parent company level, CCAs and LSEs may experience less immediate administrative burden. However, preparation will still be needed for eventual compliance with corporate climate accountability measures, which could influence procurement strategies or financial reporting frameworks. • SB 1420 (Caballero): This bill involves hydrogen production facilities and their certification and environmental review processes. For CCAs and LSEs, this could present opportunities to incorporate hydrogen as a clean energy resource into their portfolios. • SB 1193 (Menjivar): This bill addresses the use of leaded aviation gasoline at airports. While its direct relevance to CCAs and LSEs might be limited, the transition away from leaded fuel could align with broader decarbonization goals. It may also encourage investment in zero-emission technologies that CCAs and LSEs could support through renewable energy procurement for electrified aviation or airport operations.
4 Proposition 4 – The Climate Bond
• Approval and Funding Allocation: California voters approved a $10 billion climate bond to fund environmental and energy initiatives, including $3.8 billion for drought, flood, and water supply projects, $1.5 billion for wildfire prevention, and $850 million for energy projects. • Energy Investments: Of the energy funds, $475 million is allocated to offshore wind, $325 million to grid infrastructure, and $50 million to energy storage, supporting California's renewable energy goals.
• Support and Opposition: Backed by the Democratic Party, labor, and environmental groups, while the Republican Party opposed it, citing concerns over California's bond debt and budget deficit. • Repayment Costs: The state will repay the bond over 40 years at an annual cost of $400 million. • Focus on Equity and Resilience: At least 40% of funds will benefit lower-income communities, and investments aim to mitigate climate change impacts, including protecting coastal areas, parks, and communities from extreme heat.
7 Artificial Intelligence (AI) Policy
• AI Transparency and Consumer Protections: Transparency around AI’s impact on society, particularly with regards to data and content generation, were the subject of many of this year’s AI bills. • AI in Elections and Disinformation: Lawmakers tackled emerging threats related to AI-generated misinformation and deepfakes and their potential impact on voters.
• Privacy and Data Protection: As AI systems rely heavily on vast datasets, there will likely be continued efforts to align AI regulation with existing privacy laws, such as the California Consumer Privacy Act (CCPA). • Performer’s Digital Likenesses: Before California became the epicenter of AI technology, the state has been the epicenter of entertainment in film and television. The Legislature considered major bills that considered how actors and performers - alive or dead - protect their digital likeness against unauthorized use as an important labor protection. • Automated Decision-Making Tools: Amongst the areas of concern in the deployment of AI is how the technology is being used to make consequential decisions that have major legal or personal implications. Legislators continue to see a balance on developing a framework for the responsible development and deployment of these tools. • Education: The Legislature considered a number of bills on how AI is being used in public education, and ultimately passed legislation to form working groups to identify potential opportunities and challenges.
What is clear from this session is that California remains at the forefront of both the development of AI technology and policy, and discussions about how to regulate this emerging technology are far from over. 8 2024 State Budget
• The budget addresses a $46.8 billion shortfall through a balanced package of solutions, including spending reductions of $16 billion. • Clean Energy and Other Climate Programs—Shifts $3 billion from current year and budget year General Fund to the Greenhouse Gas Reduction Fund. • It avoids deep program cuts, maintaining service levels for several priority issues including Proposition 98 funding for education and investments in Medi-Cal expansion, encampment resolution grants, nonprofit security grants, summer food assistance, and updated foster care rates.
9 2025-26 Legislative Session
CalChoice Engagement Continues
• December 2, 2024: Swearing-In Day (in Session)
• January 6, 2025: Session Commences
• 31 Freshman Legislators
• New Committee Assignments & Leadership Announcements
• Lobby Day Q1/Q2
• Engagement in Select Committee Hearings
• Local District Assembly and Senate Representative Meetings 2025-26 Legislative Session
10 THANK YOU
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