California Assembly Passes Community Renewable Energy Legislation

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community solar (Credit: Pexels)

The California State Assembly passed a bill that will significantly expand community renewable energy in the state as well as increase grid reliability.

The bill, AB 2316, establishes a state community renewable energy program making clean energy more accessible, including to businesses regardless of whether they rent or own property. The law also includes energy storage requirements on community solar projects designed to increase grid reliability, which can help the state during power crunches as the result of high demand or natural events.

The legislation requires the California Public Utilities Commission to ensure the creation and financing of viable community renewable energy facilities as well as financial incentives for facilities that have low-income subscribers or for organizations that serve disadvantaged communities. In addition to increasing access to renewable energy projects, such as community solar, it will help builders meet California requirements mandating solar energy be installed in new construction.

Proponents of the bill also say an investment of $1 billion in the state’s budget is needed to support the program. Energy News Network reported that California’s 2022-23 budget included $32 billion to address climate impacts, $970 million of that for rooftop solar and storage, but nothing specifically for community solar.

Community solar initiatives usually consist of small-scale projects, often built on landfills or former industrial sites, and now account for more than 5 gigawatts of energy, according to the Coalition for Community Solar Access. Community solar is also a piece of the Biden Administration’s goal to achieve 100% clean energy by 2035, and the Department of Energy established the National Community Solar Partnership last year.

The bill requires the California Public Utilities Commission to open proceedings to establish a community renewable energy program by March 31, 2023. It also calls for the commission to evaluate existing programs by the end of 2023 to see if they meet the criteria of the legislation in order to modify, retain or get rid of them.

Utility companies Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric have opposed the bill in part because of its overlap of existing programs as well as the possibility that it could require them to provide services in areas they are no longer active.

Environment + Energy Leader