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Transit and clean‑energy groups press Legislature to restore demand‑side grid support, SGIP and other clean‑energy funding

3759226 · June 10, 2025
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Summary

Transit agencies and clean‑energy coalitions told the subcommittee that funding reductions threaten transit operations, demand‑side grid support, distributed electricity backup and incentives; some warned that DSGS will run out of funds after the 2025 summer without restoration.

Transit associations, community choice aggregators (CCAs) and clean‑energy industry groups gave testimony calling for preservation or restoration of several clean‑energy and transit programs in the budget package.

Michael Pimentel, representing the California Transit Association, thanked the subcommittee for rejecting proposed cuts and said the agreement "fully fund[s] our grama," while noting continuing exposure tied to continuous appropriations and cap‑and‑trade negotiations.

Energy industry witnesses highlighted the demand‑side grid support (DSGS) and Distributed Electricity Backup Assets (DEBA) programs. Andrew Antwee said the DSGS program "will run out of funds after the 2025 summer if we don't fund it this year," warning that private investment and newly contracted capacity could be wasted without additional appropriation.

Community choice aggregators and CCAs urged clarification that CCAs are eligible for the Self‑Generation Incentive Program (SGIP). Multiple speakers, including San Diego Community Power and Clean Power Alliance representatives, supported trailer bill language clarifying eligibility and urged swift adoption.

Several speakers also urged ongoing funding and implementation support for E15 fuel specification rulemaking at CARB and for continuing incentive funding for heavy‑vehicle programs and clean truck incentives.

Why it matters Speakers said that programs such as DSGS, DEBA, SGIP and transit formula funding provide reliability, reduce reliance on fossil‑fuel peaker plants, and leverage private investment; loss of funding could reduce grid reliability, transit service and local clean‑transportation deployment.

What the record shows - California Transit Association, LA Metro, Metrolink and BART expressed thanks for rejecting transit cuts and urged continued support during cap‑and‑trade negotiations. - Clean‑energy coalitions and equipment manufacturers asked for restoration of DSGS/DEBA and for SGIP eligibility clarifications to ensure continued private sector participation. - Growth Energy and the Renewable Fuels Association asked for ongoing rather than limited‑term funding for CARB staff and rulemaking work on E15 fuel specifications.

Next steps Budget negotiators will consider these funding priorities in broader cap‑and‑trade and budget negotiations; stakeholders asked for multi‑year certainty to sustain ongoing contracts and private investment.