--- title: California Budget Update description: California Governor Gavin Newsom proposes a budget focusing on addressing a $38.9 billion shortfall, impacting CESA priorities such as residential solar, long-duration storage, and strategic reliability assets. image: https://storagealliance.org/hubfs/kenny-eliason-AOJGuIJkoBc-unsplash.jpg --- [Skip to content](https://storagealliance.org/news/california-budget-update#main-content) [Member Portal](https://members.storagealliance.org/) [![California Energy Storage Alliance (CESA)](https://storagealliance.org/hs-fs/hubfs/CESA_logo_v1.png?width=350&height=110&name=CESA_logo_v1.png)](https://storagealliance.org) - [Home](https://storagealliance.org/) - [About](https://storagealliance.org/about) Show submenu for About - [Our Mission](https://storagealliance.org/about) - [Board of Directors](https://storagealliance.org/board-of-directors) - [Association Bylaws](https://storagealliance.org/hubfs/FINAL_Bylaws%20-%2010.2024%20.pdf) - [Partners](https://storagealliance.org/our-partners) - [Contact](https://storagealliance.org/contact) - Our Work Show submenu for Our Work - [Policy Work](https://storagealliance.org/policy-work) - [Working Groups](https://storagealliance.org/working-groups) - [Business Development](https://storagealliance.org/business-development-opportunities) - [Political Action Committee](https://storagealliance.org/political-action-committee) - Resources Show submenu for Resources - [Energy Storage 101](https://storagealliance.org/energy-storage-101) - [Safety Resources](https://storagealliance.org/safety-resources) - [Resource Flyers](https://storagealliance.org/resources) - News & Events Show submenu for News & Events - News Show submenu for News - [CESA News](https://storagealliance.org/news) - [CESA in the News](https://storagealliance.org/cesa-in-the-news) - [Events Calendar](https://storagealliance.org/events) - [2026 Spring Social](https://storagealliance.org/springsocial) - [2026 MDF](https://storagealliance.org/cesa-mdf) - Membership Show submenu for Membership - [Our Members](https://storagealliance.org/our-members) - [Member Benefits](https://storagealliance.org/member-benefits) Open main navigation Close main navigation - [Home](https://storagealliance.org/) - [About](https://storagealliance.org/about) Show submenu for About - [Our Mission](https://storagealliance.org/about) - [Board of Directors](https://storagealliance.org/board-of-directors) - [Association Bylaws](https://storagealliance.org/hubfs/FINAL_Bylaws%20-%2010.2024%20.pdf) - [Partners](https://storagealliance.org/our-partners) - [Contact](https://storagealliance.org/contact) - Our Work Show submenu for Our Work - [Policy Work](https://storagealliance.org/policy-work) - [Working Groups](https://storagealliance.org/working-groups) - [Business Development](https://storagealliance.org/business-development-opportunities) - [Political Action Committee](https://storagealliance.org/political-action-committee) - Resources Show submenu for Resources - [Energy Storage 101](https://storagealliance.org/energy-storage-101) - [Safety Resources](https://storagealliance.org/safety-resources) - [Resource Flyers](https://storagealliance.org/resources) - News & Events Show submenu for News & Events - News Show submenu for News - [CESA News](https://storagealliance.org/news) - [CESA in the News](https://storagealliance.org/cesa-in-the-news) - [Events Calendar](https://storagealliance.org/events) - [2026 Spring Social](https://storagealliance.org/springsocial) - [2026 MDF](https://storagealliance.org/cesa-mdf) - Membership Show submenu for Membership - [Our Members](https://storagealliance.org/our-members) - [Member Benefits](https://storagealliance.org/member-benefits) - [Member Portal](https://members.storagealliance.org/) Jun 20, 2024, 3:06:19 PM # California Budget Update [CESA](https://storagealliance.org/news/author/cesa) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://storagealliance.org/news/california-budget-update) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://storagealliance.org/news/california-budget-update) [Twitter icon](https://twitter.com/intent/tweet?url=https://storagealliance.org/news/california-budget-update) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://storagealliance.org/news/california-budget-update) [envelope icon](mailto:?body=https://storagealliance.org/news/california-budget-update) ### January 16, 2024 California Governor Gavin Newsom released his proposed 2024-5 budget, which is the first step of a months-long budget negotiation process with the legislature. The proposed budget focuses on addressing a projected $38.9 billion shortfall which is significantly less than the $68 billion shortfall projected by the Legislative Analyst's Office (LAO). In the Governor's proposed budget, a few CESA priorities are impacted, as summarized below. There will be many updates as the budget process moves forward. **Residential Solar and Storage:** A delay of $200 million General Fund ($75 million in 2024-25 and $125 million in 2025-26) for the Residential Solar and Storage Program. Instead, $100 million in 2026-27 and $100 million in 2027-28 would be available. The Budget maintains the $630 million to the CPUC for this program. **Incentives for Long Duration Storage:** A shift of $56.9 million General Fund to the GGRF in 2024-25 for the Long Duration Storage Program at the CEC. The Budget maintains $330 million for the program with this shift. **Investments in Strategic Reliability Assets:** A delay of $55 million General Fund for the Electricity Supply Reliability Reserve Fund Program from 2024-25 to 2025-26. The Budget maintains the full $2.37 billion General Fund to the DWR. **Oroville Pump Storage:** A delay of $200 million General Fund ($90 million in 2024-25 and $110 million in 2025-26) for the Oroville Pump Storage Project. The delay results in $100 million General Fund in 2026-27 and $100 million in 2027-28. The Budget maintains the full $240 million to the DWR for this project.   [blog](https://storagealliance.org/news/tag/blog) ## Related posts [![](https://storagealliance.org/hs-fs/hubfs/AdobeStock_580204011.jpg?height=200&name=AdobeStock_580204011.jpg)](https://storagealliance.org/news/cpuc-adopts-5-0-decision-authorizing-6-gw-of-resource-procurement) [News](https://storagealliance.org/news/tag/news) ## [CPUC Adopts 5-0 Decision Authorizing 6 GW of Resource Procurement](https://storagealliance.org/news/cpuc-adopts-5-0-decision-authorizing-6-gw-of-resource-procurement) [CESA](https://storagealliance.org/news/author/cesa) Feb 27, 2026, 1:53:20 PM TheCalifornia Public Utilities Commissionjust adopted a 5-0 decision authorizing 6 GW of resource... 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