Senate committee hears debate on bill setting guardrails for California to join regional energy market

Senator Bob Becker opened debate on SB 540, a bill to allow California to participate in a regional organized electricity market only if the market meets a set of statutory guardrails.

The bill’s author said SB 540 builds on California’s voluntary participation in the Western Energy Imbalance Market and would not permit the state to join a regional market before 2028. “The amendments now make it, so we cannot join this before January 2028,” Becker said, adding the delay gives the Legislature and state regulators time to review federal and regional developments.

Supporters — a broad coalition of labor, environmental groups, utilities and large electricity customers — said the bill would reduce emissions, improve reliability during grid stress, and lower costs by letting zero‑marginal‑cost renewables compete across a wider market. Mark Joseph of the Coalition of California Utility Employees said the proposal “would reduce cost for rate payers. It would improve reliability during times of stress on the grid. And it would reduce emissions.” Caitlin Rodner Sutter of the Environmental Defense Fund said…