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Bill Requiring Cap-and-Trade Participation and Emissions Reporting for Energy Reserves Signed Into Law

For immediate release:

SACRAMENTO— With Governor Gavin Newsom's signature on AB 1061, authored by Speaker Emeritus Anthony Rendon (D-Lakewood), any energy reserves held in the Department of Water Resources' Reliability Reserve Program must now be subject to cap-and-trade, and have their greenhouse gas emissions reported to the Air Resources Board.

"This is an important reserve program for California, but we need to make sure these energy sources are held to the same environmental standards as other sources of power in California," said Speaker Emeritus Rendon. "Now, thanks to Governor Newsom's signature, all of our state's energy reserves will continue to support Californians most in need, while still working toward California's goal of reducing emissions."

The Reliability Reserve Program was created by the legislature in 2022 to help keep power on during heat waves, rolling blackouts, and other disasters. But the law did not state that this reserve program was subject to cap-and-trade and emissions reporting requirements, like other power sources in California.

"California has made important progress in reducing emissions from the power sector. With AB 1061 signed by Governor Newsom, we now can ensure that backup electricity supply purchased by the state follows the same greenhouse gas reporting rules as other electricity resources and is subject to the same compliance with the cap-and-trade program," said Katelyn Roedner Sutter, California State Director of the Environmental Defense Fund. "This means California can continue its success in reducing power sector emissions, all while keeping our lights on and our grid reliable. EDF is appreciative of Speaker Emeritus Rendon for closing this critical gap in California's climate policy."

This law goes into effect on January 1, 2024.

Website of Assembly Speaker Emeritus Anthony Rendon: