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California budget cuts could decimate key virtual power plant programs

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California budget cuts could decimate key virtual power plant programs


This has made the DSGS program a key target for VPP developers in California, with $295 million budgeted for participants in 2022 and 2023. About 1,300 participants in DSGS-funded programs were able to reduce peak load by about 315 megawatts and provide more than 3,100 megawatt-hours of emergency response during hot summer weather in the summer of 2022, according to the companies that signed on to the protest letter to state lawmakers. Those companies have planned to provide much more emergency capacity in the summer of 2024.”

This newly expanded and re-designed program was finally launching for a full summer in 2024,” Perez of Advanced Energy United told Canary Media in an email. But the proposed budget cuts would eliminate $186.5 million in DSGS funding through this year and next, leaving only $75 million deferred to 2025 and 2026, according to industry groups tracking the latest budget figures. That would severely impact” participating companies’ efforts, since they need to have predictability to invest in market development, customer onboarding, and program setup,” the letter stated.

If the proposed reductions go through, I don’t know how that will affect new and current participants,” said Cisco DeVries, executive vice president of Renew Home, the company formed by the merger of Google Nest’s smart thermostat energy-shifting service Nest Renew and California-based residential demand response aggregator Ohmconnect. Renew Home works with hundreds of thousands of households in California and participated in the DSGS program in 2022 and 2023.

The potential for VPPs in California is particularly strong, given the state’s preponderance of homes equipped with rooftop solar, backup batteries, smart thermostats, and electric vehicle chargers. In an April report, consultancy Brattle Group projected that VPPs could enable $550 million per year in consumer savings in California and provide in excess of 15 percent of the state’s peak grid demand by 2035.

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Jigar Shah, head of the U.S. Department of Energy’s Loan Programs Office, which has issued billions of dollars in loan guarantees to support VPP deployments, highlighted that report in an April social media post, citing it as evidence that VPPs are the lowest cost way” for utilities and regulators to handle load growth and lower rates for everyone.”

But with the future of the DSGS program now very much in doubt, it’s unclear how California utility regulators and policymakers will enable that potential, DeVries said. A big part of how we were going to figure out the next phase of demand response and virtual power plants in the state of California was the CEC programs, both DSGS and others,” he said. So now we’re back to the drawing board. We don’t have the answers to what’s going to happen next.”

That’s a problem for a state that’s simultaneously trying to control electric utility rates that are among the highest and the fastest-rising in the country, keep the lights on during stressful grid events, and retire a bunch of dirty old fossil fuel plants,” he said.

The missing money for alternatives to fossil fuels

To date, the lion’s share of California’s emergency-grid-support funds has gone toward extending the lifespan of its fossil fuel plants. The state has already spent about $426 million from those emergency programs to build or procure emergency and temporary” power generators that burn fossil gas or diesel fuel, according to a May report from the state Department of Water Resources, which administers that program.

Another $1.3 billion in funding has been promised to companies that own and operate aging fossil-gas-fired peaker” power plants in Southern California that were slated to be closed in 2020 under environmental regulations. Those plants are a particularly egregious target for state funding, environmental advocates said, given that they burden surrounding communities with harmful air pollution, and have been unprofitable to operate absent state subsidies.

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What’s more, these power plants take days to ramp up in advance of predicted grid emergencies and are much more expensive than the capacity that can be enlisted through the DSGS program, which consists of customers that can almost instantaneously reduce power use or commit battery power to helping the grid, Perez said.

The proposed cuts to DSGS and DEBA aren’t the only state funds for cleaner alternatives that might fail to materialize. Part of the emergency plan laid out in 2022 called for directing $900 million to incentives to fund battery installations in lower-income and disadvantaged communities. But only $280 million of that has been set aside in the state budget.

To maintain commitments to fossil fuel resources and cut back on deployment of new resources — clean resources that could be used for emergencies — is short-term thinking and just seems kind of backwards,” said Ed Smeloff, managing director of the regulatory team at nonprofit group Vote Solar. It’s important to have strategic reserves for the future, because we are going to have extreme weather events. That’s a fact of life. But those reserves should be compatible with the state’s clean energy policies.”

It’s possible that state leaders aim to instead rely on the larger amount of utility-scale batteries to solve California’s grid problems, Smeloff said. In April, Newsom announced that California has deployed 10 gigawatts of installed battery capacity, a 13-fold increase from five years ago, and enough to meet about 20 percent of the peak electricity demand for the grid managed by the California Independent System Operator (CAISO).

But it’s not clear that California can continue that breakneck pace of utility-scale battery expansion in the face of its crowded transmission-grid interconnection queues, Smeloff said. Nor is relying on large-scale batteries alone the most cost-effective path for the state. A 2020 report from Lawrence Berkeley National Laboratory found that smarter utilization of demand-side resources could replace the need for billions of dollars’ worth of batteries and other utility-scale resources.

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At the same time, California residents are being encouraged by state clean energy and climate policies to buy electric appliances, heat pumps, and EVs as rising electric rates make them more costly to operate, he said. Finding some way for those customers to earn money for programming those devices to relieve grid peaks is a vital counterbalance to the higher electric bills they’ll face as they electrify.

It’s also likely that state leaders believe that the grid emergencies of 2020 and 2022 aren’t as dire today, Smeloff said. An assessment from CAISO last month indicates that the state has a surplus of resources to meet expected peak grid demands this summer, he noted — a stronger position, at least on paper, than the state has had in years.

But as McMahon of the California Energy Storage Association noted, We had a mild summer last year. But what happens the year after that if we haven’t planned for it?”



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GOP California governor candidates to face off at Clovis forum ahead of primary

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GOP California governor candidates to face off at Clovis forum ahead of primary


With California’s June 2nd primary election nearing, Republican candidates for governor, Steve Hilton and Sheriff Chad Bianco, are set to appear at a forum in Clovis.

The Fresno County & City Republican Women Federated is hosting its “Celebrating 250 Years of America Dinner” and a gubernatorial forum on Friday, May 22nd, at The Regency Event Center, 1600 Willow Ave., in Clovis.

The forum will be moderated by State Senator Shannon Grove.

The discussion is expected to focus on major issues facing Californians, with questions presented via video by a panel of state and local figures, including Fresno County District Attorney Lisa Smittcamp on public safety and crime; former Fresno County Sheriff Margaret Mims on border control and citizenship; William Bourdeau of Bourdeau Farms LLC on water rights and agricultural issues; California state Assemblymember David Tangipa on taxation and fiscal responsibility; Jonathan Keller of the California Family Council on parental rights and education; and Matthew Dildine, CEO of Fresno Mission, on homelessness and mental health.

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Clovis Mayor Pro Tem Diane Pearce and Fresno County Supervisor Nathan Magsig are listed as masters of ceremonies.

Doors are scheduled to open at 4:30 p.m., followed by a social hour at 5 p.m. Dinner and the program are set for 6 p.m.

Attire is listed as cocktail or business formal. Organizers said a portion of the proceeds will benefit the Veterans Home of California – Fresno.

GOP California governor candidates to face off at Clovis forum ahead of primary (Courtesy: Fresno County & City Republican Women Federated)

[RELATED] Top-two primary could pit same-party rivals as crowded Democratic field fractures votes

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“This forum comes at a pivotal moment for our state,” FCCRWF event organizers said. “Bringing the top Republican gubernatorial candidates to Clovis allows Valley families, farmers, and business owners to get real answers on the issues that affect their daily lives, from water infrastructure to public safety and the skyrocketing cost of living.”

Individual tickets are $150, with discounts offered to FCCRWF members.

Table sponsorships are available at the $1,500, $2,500 and $5,000 levels.

Tickets and sponsorships are available online at FresnoRepublicanWomen.org.



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Amazon halts high-speed e-bike sales in California following fatal crashes

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Amazon halts high-speed e-bike sales in California following fatal crashes


Orange County’s top prosecutor said Amazon has agreed to stop California sales of certain e-bikes that can go faster than state speed limits following a series of fatal collisions.

The announcement, first reported by KCRA, comes on the heels of an April consumer alert by California Attorney General Rob Bonta that highlighted a rise in deaths related to e-bike and motorcycle crashes.

“We are seeing a surge of safety incidents on our sidewalks, parks, and streets,” Bonta said in a statement. “To ride a motorcycle or moped, you need to have the appropriate driver’s license and comply with rules of the road.”

Bonta’s alert stated that pedal-assisted e-bikes cannot exceed 28 mph. Throttle-assisted e-bikes are limited to 20 mph.

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Amazon had continued to sell e-bikes with speeds over 40 mph. Amazon did not immediately respond to a request for comment.

Electric bikes and motorcycles have become increasingly popular in the last few years, particularly among teens. But the surge has been shadowed by a spate of deadly crashes.

Orange County Dist. Atty. Todd Spitzer has charged at least three parents with allowing their children to ride electric motorcycles illegally, calling the vehicles a “loaded weapon.”

Spitzer noted in a post on X that Amazon said it removed e-bikes advertised with speeds over 40 miles per hour after KCRA contacted the company.

“The company said it has removed the examples provided and is investigating compliance for similar products,” Spitzer wrote.

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That includes an Orange County mother, who faces an involuntary manslaughter charge after her son allegedly struck an 81-year-old man with an electric motorcycle. The 14-year-old boy had been doing wheelies on an e-motorcycle

A 13-year-old boy on an e-bike in Garden Grove died earlier this week after veering into the center median and hurtling onto the roadway. The boy was traveling at around 35 mph on a black E Ride Pro electric motorcycle, authorities said.

Amazon’s new sales limits come as the Los Angeles City Council pushes to keep electric bikes of off most city recreational trails, arguing they are a threat to hikers. E-bikes would still be allowed on designated bikeways, such as along the L.A. River.



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After exile, California tribes could help run their ancestral redwoods again

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After exile, California tribes could help run their ancestral redwoods again


Daniel Felix, 10, looks out from atop a gargantuan stump of an old-growth redwood on his tribe’s ancestral land. Once, this forest on California’s North Coast was replete with the ancient behemoths that can live beyond 2,000 years.

Only a fraction are left now, depleted by a logging company before the state acquired the forest in the 1940s.

This is unique public land, Jackson Demonstration State Forest, spanning 50,000 acres. Trees are plentiful here, but they might not live a millennium. California’s 14 demonstration forests are required to produce and sell timber to show — or “demonstrate” — sustainable practices. Money from logging — roughly $8.5 million a year — pays for management of the forests by the California Department of Forestry and Fire Protection, or Cal Fire.

Daniel’s tribe, the Coyote Valley Band of Pomo Indians, has pushed to rein in the cutting — spearheaded by his late great-grandmother, Priscilla Hunter. They’re part of a diverse coalition that includes environmental activists, local politicians and other tribes.

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Now they may finally get their wish. Assemblymember Chris Rogers (D-Santa Rosa) has introduced a bill that would nix the forests’ logging mandate, instead prioritizing values such as carbon storage, wildfire resilience and biodiversity.

The bill represents the latest chapter in a region legendary for fierce battles over logging, and it marks an uncommon alliance between tribes and the environmental movement.

Under Assembly Bill 2494, there could still be logging, but it would have to support those new principles, and the forests would be funded differently.

And it proposes another significant change. It would pave the way for giving tribes a say in managing the lands for the first time since they were forcibly evicted more than a century ago, and for integrating Indigenous knowledge — like cultural burning — into the forests.

“It’s what we dreamed of,” said Polly Girvin, Hunter’s former partner and a retired lawyer focused on Native American issues. “And to have it come true? I’m used to movements that sometimes take 30 years in Indian Country to get to the justice you’re seeking.”

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Kids play in the stump of an ancient redwood during a potluck held after the spirit run in Jackson Demonstration State Forest last month.

(Paul Kuroda / For The Times)

Some backers say the bill offers a new economic path forward for communities behind the so-called redwood curtain. With the decline of logging and cannabis, they see tourism driven by ultramarathons, mushroom foraging and other outdoor activities as a financial savior.

“If we had an increase of 10% of visitors coming to our county because of recreational opportunities, that would more than surpass all of the timber tax in our county,” Mendocino County Supervisor Ted Williams said, projecting an increase in money from a lodging tax.

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But the push to reshape forest management is fiercely opposed by loggers and mill owners, who say their work is sustainable and provides blue-collar jobs in a region where they’ve dwindled. Already California imports most of its wood from Oregon, Washington and Canada.

“California has the most rules and regulations of anywhere in the world so all they’re doing is exporting the environmental impact to somewhere else, still using the product,” said Myles Anderson, owner of a logging company in Fort Bragg founded by his grandfather. “It’s pretty disgusting, really.”

Anderson believes the bill will greatly reduce logging, even stop it altogether. In his office, with photos of him and his father at a logging site decades ago, he points out it’s sponsored by the Environmental Protection Information Center. Why else would they and other environmental groups “support it if they didn’t see the same thing that I’m seeing?”

Tribal runners in Jackson Demonstration State Forest.

Last month, activists who have sought to rein in logging at Jackson held their first major gathering in about four years, galvanized by the bill that they see as a significant step in the right direction.

(Paul Kuroda / For The Times)

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A new but old fight

About five years ago, community members caught wind of plans to chop down towering redwoods within Jackson, near the coastal town of Caspar. Priscilla Hunter would come out to the forest “and could hear them crying — it was our ancestors,” said her daughter Melinda Hunter, the tribe’s vice chairwoman. “Then she had to protect [the trees].”

Environmental activists and Native Americans, not historically allies in the region, joined forces to fight it. “Forest defenders” camped out high in the canopy and blocked logging equipment with their bodies. Some were arrested.

The uprising harked back to the 1980s and 1990s, when iconic environmentalist Judi Bari led Earth First! campaigns against logging in the region. Many of the old tree sitters — white-haired and brimming with stories of Bari — have come out of the woodwork for the latest battle.

For them, it was a win. Cal Fire paused new timber sales and, citing public safety, halted some that were underway — including one expected to generate millions of dollars for Myles Anderson’s logging company.

“We were left with nothing,” Anderson said.

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Then, last year, Cal Fire approved the first harvest plan since that hiatus. It riled up the sizable, ecologically minded community.

Jessica Curl, 47, remembers growing up nearby “in a terrain of trunks” as trucks carried out logs. Now the redwoods are regrowing, “gorgeous” and gobbling carbon, she said.

“We’re so lucky to live in an area where we have this amazing climate-change mitigation tool, that if we would just leave it alone would do this amazing work that we’re trying to think of all these cool, inventive things to do.”

Isidro Chavez receives burning sage after a run in Jackson Demonstration State Forest.

Isidro Chavez receives burning sage, or smudging, after a run in Jackson Demonstration State Forest. Smudging is a ritual used to cleanse spaces and individuals of negative energy, promote calm and improve mood.

(Paul Kuroda / For The Times)

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Tears of grief, resolve

A group of “spirit runners” — a Native American tradition of bringing prayer — sprinted through the heart of Jackson forest as rain poured through the canopy. The mid-April event marked activists’ first major gathering since protests wound down in 2022.

Attendees gathered in a circle to wait for them. Misty Cook, of the Sherwood Valley Band of Pomo Indians, read a statement as eyes misted all around:

“All the living things around us, they miss us. They miss the language. They miss our touch, our hands, touching all of the things — the water, the plants. They miss the songs. They miss the beat of our footsteps and our voices, and they miss the children’s laughter and play, which was so important. They want us to gather them, to use them and to share them. Otherwise they will get sick and possibly die.”

Cal Fire launched a tribal advisory council to bring Indigenous perspective into Jackson. But some local tribes say it’s not enough because they lack decision-making power.

When the runners arrived, the circle absorbed them. Then they continued on to the site of a controversial proposed harvest, Camp Eight. They wrapped a bandana that belonged to Priscilla Hunter around a small tree — a quiet, somber act where she took her last stand. Runners took turns embracing the trunk.

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Redwoods at the Capitol

In March, Rogers’ bill cleared a committee and is now in the Assembly Appropriations Committee’s suspense file. A hearing is set for Thursday.

Funding is a major point of contention. Environmentalists say funding these forests with timber operations incentivizes cutting bigger trees. Cal Fire maintains decisions are driven by forest health, not industry demand.

AB 2494 would fund the forests through a tax on lumber and engineered wood products. The shift could create “[o]ngoing state costs and cost pressures of an unknown but potentially significant amount, possibly in the low millions of dollars annually,” according to a legislative analysis.

The California Forestry Assn., a timber industry trade group, says the idea is a nonstarter.

Cal Fire declined to comment on pending legislation but Kevin Conway, the agency’s staff chief for resource protection and improvement, said its nearly 80-year history managing Jackson reflects “care and attention.” Since the state acquired the forest, “we have more trees on the landscape, more habitat and those trees are trending larger,” he said.

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For the tribes who have rallied and prayed, a burning question is whether the land will again reflect their vision, or remain shaped by decisions made by others.

Buffie Campbell, executive director of the InterTribal Sinkyone Wilderness Council — co-founded by Priscilla Hunter and one of the groups supporting the bill — said young people wouldn’t be able to fathom the significance of the legislation passing. Maybe that’s a good thing.

“Maybe they don’t need to know about all the fighting that we have to do before they get to go out and enjoy and be tribal guardians stewarding their land.”



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