For energy industry observers, the 2017 California state legislative session produced a few significant bills (concerning extension of the cap and trade program and regulation of criteria air pollutants and toxic air contaminants) along with a host of more minor bills. Two of the most closely watched legislative initiatives of the year—SB 100, which would have significantly increased California’s Renewable Portfolio Standard (RPS) from 50% to 100%, and AB 817, which would have further facilitated expansion and regionalization of the California electric grid with neighboring states—ultimately failed to pass at the end of session, although it is expected the 100% RPS bill will resurface in some form in the 2018 session.

While protecting the environment, the legislature also sought environmental justice. A number of bills that passed include provisions related to “disadvantaged communities” and provide for regulatory action and targeted funding to reduce localized pollution: AB 398, (prioritizing offset projects benefiting disadvantaged communities), AB 617 (prioritizing monitoring and assessment of pollutants in disadvantaged communities), AB 523 (funding for energy technology demonstration projects in disadvantaged communities), and SB 338 (prioritizing reduction of pollutants in disadvantaged communities in utility Integrated Resource Plans). In addition, the 2017 legislation, as in past years, facilitated development and deployment of distributed energy resources, including rooftop solar, electric vehicles, and battery storage. There were also a number of bills related to consumer protection for rooftop solar, PACE financing, and retail utility service disconnection.