Overview

• AB 44, unanimously approved by 119 voting lawmakers, would have directed the California Energy Commission to set technical requirements and load‑modification protocols allowing utilities to adjust demand forecasts using demand‑side resources.
• Gov. Gavin Newsom said the bill conflicts with the CPUC’s Resource Adequacy framework and would not improve reliability planning, warning it could create uncertainty for resource planning and procurement.
• Lawmakers can attempt an override with two‑thirds votes in both chambers, but California has not overturned a gubernatorial veto in 25 years.
• AB 740, which would require the energy commission to coordinate with the CPUC and CAISO on a comprehensive virtual power plant deployment plan, is awaiting the governor’s decision.
• Advocates point to prior CEC goals for 7 GW of load shift by 2030 and studies showing feeder relief and potential savings, while warning that the veto and the recent lapse in reliability program funding could forgo more than $200 million in projected customer savings and extend reliance on peaker plants.