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Legislative Action Day Highlights

 
 
Scott-Karolina-Lobby-Day-2025This Tuesday, CESA hosted its Lobby Day at the California Museum in downtown Sacramento, near the state Capitol. In addition to CESA staff (Scott and Karolina), CESA was represented by our lobbyist Gareth Elliott and our Safety and Permitting consultant Cara Martinson. We were joined by representatives from seven CESA board companies REV Renewables, Terra-Gen, AES, Ormat Technologies, Hydrostor, Fluence, and Tesla, as well as a substitute from Hiller Companies filling in for our newest at-large board member. We had 11 impactful meetings with key policymakers and government officials.

Key topics discussed included:

Tax Conformity with the Inflation Reduction Act
We advocated for California to align with federal tax code provisions in the Inflation Reduction Act, particularly those ensuring that direct payment for and transfer of tax credits is excluded from taxable gross income. Our message that California should not forfeit the opportunity to maximize federal incentives for energy storage investments was well-received. A common concern from attendees was the potential impact on the state budget and ratepayers. We were able to address these concerns by clarifying that this alignment will actually result in reduced costs to ratepayers. We anticipate further details on this, including a soon-to-be-released E3 study outlining the trade-offs under various scenarios.

Safety as a Top Priority
Safety continues to be at the forefront of our discussions. We emphasized that any regulatory response must be deliberate and informed by safety experts. Attendees were particularly interested in understanding the current risks associated with existing energy storage projects. The request for more detailed information on this topic was consistent across meetings, and we will continue to work on providing this clarity to both the public and policymakers.

Support for Key State Programs
Our discussions also focused on several important issues affecting energy storage in California:

  • Maintaining access to the CEC’s “Opt-in” permitting process for energy storage projects.
  • Ensuring state agencies adhere to established permitting timelines.
  • Continuing support for the CEC’s Demand Side Grid Support (DSGS) program, which plays a crucial role in advancing grid modernization.

Overall, our messages were well-received. We engaged in thoughtful discussions with several high-ranking officials, including Governor Newsom’s Deputy Legislative Secretary, Grant Mack; CPUC President Alice Reynolds and CPUC Commissioner Karen Douglas; members of the state legislature, such as Sen. Jerry McNerney and Sen. Josh Becker; and lead energy policy consultants to Assembly and Senate committees. We helped educate attendees on topics that were less familiar to them, strengthened our relationships with decision-makers, and reinforced our priorities for the future of energy storage in California.