USA – CALIFORNIA Trends and Developments Contributed by: Nora Sheriff and Samir Hafez, Buchalter
interconnection approvals, and infrastructure upgrades are slowing the ability to connect new housing developments, electric-vehicle charging stations, and industrial electrification projects. Without accelerated distribution system upgrades, California risks stifling economic growth, delaying decarbonisation goals, and exacerbating grid-reliability concerns. Delays will also postpone the realisation of any potential affordability benefits of increased electrification, preventing consumers from accessing lower rates tied to expanded electric usage. In September 2024, the CPUC announced reforms to address this challenge, including an accelerated timeline of energisation targets to be met by the utilities in order to accelerate the modernisation of the state’s energy grid. Howev - er, the CPUC’s reforms have been met with criti - cism by a wide range of objectors, from utilities to climate activists and trucking manufacturers. Timely energisation reforms will continue to be explored in 2025. Insufficient Clean Generation and Batteries Catching Fire California also faces a shortfall in clean genera - tion to meet forecast reliability needs through at least 2035. While the CPUC has issued pro - curement orders to address mid-term reliability, these efforts have been hindered by delays in building new transmission lines needed to con - nect renewable energy resources to demand centres. Widespread adoption of utility-scale bat - tery storage will be critical to serving peak grid demand, which occurs later in the day as renewable generation declines. California’s bat - tery storage deployment has expanded rapidly over the past several years, growing from 500
megawatts in 2019 to over 13,300 megawatts statewide in 2024. However, further expansion faces challenges due to limited infrastructure, ongoing supply-chain bottlenecks, and high upfront costs. Expanded battery storage is further complicated by the 16 January 2025 fire at a Moss Landing battery energy-storage facility, which heightened safety concerns surrounding energy-storage infrastructure. The CPUC has since indicated that it will address strengthening safety regula - tions and oversight of battery storage facilities in response. These infrastructure and resource challenges, combined with affordability pressures, compli - cate California’s pathway to achieving its ambi - tious decarbonisation targets. Exemptions for Rebuilding Los Angeles May Lead to Broader Reform The California Environmental Quality Act (CEQA) exemptions enacted to expedite Los Angeles wildfire recovery have renewed calls for broad - er CEQA reform, particularly as Los Angeles prepares to host major global sporting events, including the 2026 FIFA World Cup, Super Bowl LXI in February 2027, and the 2028 Summer Olympics. In January 2025, Governor Gavin Newsom issued an Executive Order suspend - ing certain CEQA and Coastal Act requirements to accelerate rebuilding. While aimed at disas - ter recovery, this move has intensified broader debates about CEQA’s role in delaying critical infrastructure, housing, and transportation pro - jects. Upcoming international events will increase pressure to streamline approvals for stadium upgrades, transit expansions, and large-scale development. Lawmakers are already exploring
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