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Energy

Overview

The production, transmission and cost of energy continue to be a central issue to California residents, the business community and the state’s economy. The success of California’s economy, and by extension the nation’s, relies on the ability of local, state and federal leaders to find common ground and determine the most efficient and equitable means of upgrading and expanding the state’s energy infrastructure.

Since the energy crisis of 2000–01, California has maintained a delicate balance between supply and demand, largely by relying on imported electricity from the North and Southwest as well as from older, less efficient in-state power plants. With the demand in the North and Southwest growing, future imports are becoming more expensive and less available. Moreover, due to landmark legislation to cut the state’s greenhouse gas emissions (AB 32 and SB 1368 of 2006), as well the renewable portfolio standard (SB1X 2 of 2011), California is limited to what types of power plants may be used to serve the current and increased load. Although conservation, energy efficiency standards and increased energy sources have helped keep supply greater than demand, continued population and economic growth edges the state closer to an imbalance of supply and demand. Energy

Goals

Recommend policies on issues concerning utilities and commerce, including electricity, telecommunications, commercial transactions, corporate governance, economic stimulus and development.

Major Victories

Preventing electricity cost increases by stopping in 2011 an eight-year extension of a tax (public goods charge) on electricity ratepayers in the territories of the investor-owned utilities (AB 724, SBX 1 28).
Aggressive campaigning and advocacy by CalChamber-led coalitions dampened enthusiasm for tax increases and new taxes, including an energy tax that raises the price of gasoline and California-produced crude oil.

Position

It is critical that California’s electricity generation keeps pace with its growing population and increasing demand. The state should focus its attention on the construction of new transmission lines to sustain future economic growth and to ensure renewables are able to come on line in time to keep up with the various programs being implemented across agencies.