California governor nixes bill on demand-side electricity savings

By Alex Nieves | 10/02/2025 06:55 AM EDT

Gov. Gavin Newsom said in his veto message that AB 44 would create uncertainty around energy planning and procurement.

An automobile drives down a road as radiant heat is seen coming off of the pavement.

Gov. Gavin Newsom vetoed a bill aimed at developing methods for demand-side electricity savings. Richard Vogel/AP

Gov. Gavin Newsom vetoed a bill Wednesday that would have required California regulators to develop rules for how utilities weigh the value of demand-reducing technologies and strategies when forecasting how much electricity they need to buy.

What happened: Newsom rejected AB 44, a measure authored by Assemblymember Nick Schultz, writing in a veto message that the bill would conflict with the California Public Utilities Commission’s existing rules that make sure the state’s energy grid has enough power to meet demand.

“As a result, the requirements of this bill would not improve electric grid reliability planning and could create uncertainty around energy resource planning and procurement process,” Newsom wrote.

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AB 44 cleared the Legislature with bipartisan support and did not draw registered opposition as it moved through the Capitol.

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