Utilities, S.C. officials debate giving consumers energy credits

California Biofuels vs EV Subsidies examines tradeoffs in decarbonization, greenhouse gas reductions, clean energy deployment, charging infrastructure, energy security, lifecycle emissions, and transportation sector policy to meet climate goals and accelerate sustainable mobility.

Key Points

Policy tradeoffs weighing biofuels and EVs to cut GHGs, boost energy security, and advance clean transportation.

✅ Near-term blending cuts emissions from existing fleets

✅ EVs scale with a cleaner grid and charging buildout

✅ Lifecycle impacts and costs guide optimal subsidy mix

California is at the forefront of the transition to a greener economy, driven by its ambitious goals to reduce greenhouse gas emissions and combat climate change. As part of its strategy, the state is grappling with the question of whether it should subsidize out-of-state biofuels or in-state electric vehicles (EVs) to meet these goals. Both options come with their own sets of benefits and challenges, and the decision carries significant implications for the state’s environmental, economic, and energy landscapes.

The Case for Biofuels

Biofuels have long been promoted as a cleaner alternative to traditional fossil fuels like gasoline and diesel. They are made from organic materials such as agricultural crops, algae, and waste, which means they can potentially reduce carbon emissions in comparison to petroleum-based fuels. In the context of California, biofuels—particularly ethanol and biodiesel—are viewed as a way to decarbonize the transportation sector, which is one of the state’s largest sources of greenhouse gas emissions.

Subsidizing out-of-state biofuels can help California reduce its reliance on imported oil while promoting the development of biofuel industries in other states. This approach may have immediate benefits, as biofuels are widely available and can be blended with conventional fuels to lower carbon emissions right away. It also allows the state to diversify its energy sources, improving energy security by reducing dependency on oil imports.

Moreover, biofuels can be produced in many regions across the United States, including rural areas. By subsidizing out-of-state biofuels, California could foster economic development in these regions, creating jobs and stimulating agricultural innovation. This approach could also support farmers who grow the feedstock for biofuel production, boosting the agricultural economy in the U.S.

However, there are drawbacks. The environmental benefits of biofuels are often debated. Critics argue that the production of biofuels—particularly those made from food crops like corn—can contribute to deforestation, water pollution, and increased food prices. Additionally, biofuels are not a silver bullet in the fight against climate change, as their production and combustion still release greenhouse gases. When considering whether to subsidize biofuels, California must also account for the full lifecycle emissions associated with their production and use.

The Case for Electric Vehicles

In contrast to biofuels, electric vehicles (EVs) offer a more direct pathway to reducing emissions from transportation. EVs are powered by electricity, and when coupled with renewable energy sources like solar or wind power, they can provide a nearly zero-emission solution for personal and commercial transportation. California has already invested heavily in EV infrastructure, including expanding its network of charging stations and exploring how EVs can support grid stability through vehicle-to-grid approaches, and offering incentives for consumers to purchase EVs.

Subsidizing in-state EVs could stimulate job creation and innovation within California's thriving clean-tech industry, with other states such as New Mexico projecting substantial economic gains from transportation electrification, and the state has already become a hub for electric vehicle manufacturers, including Tesla, Rivian, and several battery manufacturers. Supporting the EV industry could further strengthen California’s position as a global leader in green technology, attracting investment and fostering growth in related sectors such as battery manufacturing, renewable energy, and smart grid technology.

Additionally, the environmental benefits of EVs are substantial. As the electric grid becomes cleaner with an increasing share of renewable energy, EVs will become even greener, with lower lifecycle emissions than biofuels. By prioritizing EVs, California could further reduce its carbon footprint while also achieving its long-term climate goals, including reaching carbon neutrality by 2045.

However, there are challenges. EV adoption in California remains a significant undertaking, requiring major investments in infrastructure as they challenge state power grids in the near term, technology, and consumer incentives. The cost of EVs, although decreasing, still remains a barrier for many consumers. Additionally, there are concerns about the environmental impact of lithium mining, which is essential for EV batteries. While renewable energy is expanding, California’s grid is still reliant on fossil fuels to some degree, and in other jurisdictions such as Canada's 2019 electricity mix fossil generation remains significant, meaning that the full emissions benefit of EVs is not realized until the grid is entirely powered by clean energy.

A Balancing Act

The debate between subsidizing out-of-state biofuels and in-state electric vehicles is ultimately a question of how best to allocate California’s resources to meet its climate and economic goals. Biofuels may offer a quicker fix for reducing emissions from existing vehicles, but their long-term benefits are more limited compared to the transformative potential of electric vehicles, even as some analysts warn of policy pitfalls that could complicate the transition.

However, biofuels still have a role to play in decarbonizing hard-to-abate sectors like aviation and heavy-duty transportation, where electrification may not be as feasible in the near future. Thus, a mixed strategy that includes both subsidies for EVs and biofuels may be the most effective approach.

Ultimately, California’s decision will likely depend on a combination of factors, including technological advancements, 2021 electricity lessons, and the pace of renewable energy deployment, and the state’s ability to balance short-term needs with long-term environmental goals. The road ahead is not easy, but California's leadership in clean energy will be crucial in shaping the nation’s response to climate change.

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PG&E Wildfire Blackouts highlight California power shutoffs as high winds and suspected transmission line faults trigger evacuations, CPUC investigations, and grid safety reviews, with utilities weighing risk, compliance, and resilience during Santa Ana conditions.

Key Points

PG&E Wildfire Blackouts are outages during wind-driven fire threats linked to power lines, spurring CPUC investigations.

✅ Wind and line faults suspected amid Lafayette evacuations

✅ CPUC to probe shutoffs, notifications, and compliance

✅ Utilities plan more outages as Santa Ana winds return

Pacific Gas & Electric Co. power lines may have started two wildfires over the weekend in the San Francisco Bay Area, the utility said Monday, even though widespread blackouts were in place to prevent downed lines from starting fires during dangerously windy weather.

The fires described in PG&E reports to state regulators match blazes that destroyed a tennis club and forced evacuations in Lafayette, about 20 miles (32 kilometres) east of San Francisco.

The fires began in a section of town where PG&E had opted to keep the lights on. The sites were not designated as a high fire risk, the company said.

Powerful winds were driving multiple fires across California and forcing power shut-offs intended to prevent blazes, even as electricity prices are soaring across the state as well.

More than 900,000 power customers -- an estimated 2.5 million people -- were in the dark at the height of the latest planned blackout, nearly all of them in PG&E's territory in Northern and central California. By Monday evening a little less than half of those had their service back. But some 1.5 million people in 29 counties will be hit with more shut-offs starting Tuesday because another round of strong winds is expected, a reminder of grid stress during heat waves that test capacity, the utility said.

Southern California Edison had cut off power to 25,000 customers and warned that it was considering disconnecting about 350,000 more as power supply lapses and Santa Ana winds return midweek.

PG&E is under severe financial pressure after its equipment was blamed for a series of destructive wildfires and its 2018 Camp Fire guilty plea compounded liabilities during the past three years. Its stock dropped 24% Monday to close at $3.80 and was down more than 50% since Thursday.

The company reported last week that a transmission tower may have caused a Sonoma County fire that has forced 156,000 people to evacuate.

PG&E told the California Public Utilities Commission that a worker responded to a fire in Lafayette late Sunday afternoon and was told firefighters believed contact between a power line and a communication line may have caused it.

A worker went to another fire about an hour later and saw a fallen pole and transformer. Contra Costa Fire Department personnel on site told the worker they were looking at the transformer as a potential ignition source, a company official wrote.

Separately, the company told regulators that it had failed to notify 23,000 customers, including 500 with medical conditions, before shutting off their power earlier this month during windy weather.

Before a planned blackout, power companies are required to notify customers and take extra care to get in touch with those with medical problems who may not be able to handle extended periods without air conditioning or may need power to run medical devices.

PG&E said some customers had no contact information on file. Others were incorrectly thought to be getting electricity.

After that outage, workers discovered 43 cases of wind-related damage to power lines, transformers and other equipment.

Jennifer Robison, a PG&E spokeswoman, said the company is working with independent living centres to determine how best to serve people with disabilities.

The company faced a growing backlash from regulators and lawmakers, and a judge's order on wildfire risk spending added pressure as well.

U.S. Rep. Josh Harder, a Democrat from Modesto, said he plans to introduce legislation that would raise PG&E's taxes if it pays bonuses to executives while engaging in blackouts.

The Public Utilities Commission plans to open a formal investigation into the blackouts and the broader climate policy debate surrounding reliability within the next month, allowing regulators to gather evidence and question utility officials. If rules are found to be broken, they can impose fines up to $100,000 per violation per day, said Terrie Prosper, a spokeswoman for the commission.

The commission said Monday it also plans to review the rules governing blackouts, will look to prevent utilities from charging customers when the power is off and will convene experts to find grid improvements that might lessen blackouts during next year's fire season, as debates over rate stability in 2025 continue across PG&E's service area.

The state can't continue experiencing such widespread blackouts, "nor should Californians be subject to the poor execution that PG&E in particular has exhibited," Marybel Batjer, president of the California Public Utilities Commission, said in a statement.

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California Renewable Energy Record highlights near-100% clean power as CAISO reports solar, wind, and storage meeting demand, with Interstate 10 arrays and distributed rooftop photovoltaics boosting the grid during Stagecoach, signaling progress toward 100%.

Key Points

CA Renewable Energy Record marks CAISO's peak when renewables nearly met total load, led by utility solar and storage.

✅ CAISO hit 99.87% renewables serving load at 2:50 p.m.

✅ Two-thirds of power came from utility-scale solar along I-10.

✅ Tariff inquiry delays solar-storage projects statewide.

Renewable electricity met just shy of 100% of California's demand for the first time on Saturday, officials said, much of it from large amounts of solar power, part of a California solar boom, produced along Interstate 10, an hour east of the Coachella Valley.

While partygoers celebrated in the blazing sunshine at the Stagecoach music festival,  "at 2:50 (p.m.), we reached 99.87 % of load served by all renewables, which broke the previous record," said Anna Gonzales, spokeswoman for California Independent System Operator, a nonprofit that oversees the state's bulk electric power system and transmission lines. Solar power provided two-thirds of the amount needed.

Environmentalists who've pushed for years for all of California's power to come from renewables and meet clean energy targets were jubilant as they watched the tracker edge to 100% and slightly beyond. 

"California busts past 100% on this historic day for clean energy!" Dan Jacobson, senior adviser to Environment California, tweeted.

"Once it hit 100%, we were very excited," said Laura Deehan, executive director for Environment California. She said the organization and others have worked for 20 years to push the Golden State to complete renewable power via a series of ever tougher mandates, even as solar and wind curtailments increase across the grid. "California solar plants play a really big role."

But Gonzales said CAISO double-checked the data Monday and had to adjust it slightly because of reserves and other resource needs, an example of rising curtailments in the state. 

Environment California pushed for 1 million solar rooftops statewide, which has been achieved, adding what some say is a more environmentally friendly form of solar power, though wildfire smoke can undermine gains, than the solar farms, which eat up large swaths of the Mojave desert and fragile landscapes.

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'Need to act with that same boldness':A record 10% of the world's power was generated by wind, solar methods in 2021

Deehan said in a statement that more needs to be done, especially at the federal level. "Despite incredible progress illustrated by the milestone this weekend, and the fact that U.S. renewable electricity surpassed coal in 2022, a baffling regulatory misstep by the Biden administration has advocates concerned about backsliding on California’s clean energy targets." 

Deehan said a Department of Commerce inquiry into tariffs on imported solar panels is delaying thousands of megawatts of solar-storage projects in California, even as U.S. renewable energy hit a record 28% in April across the grid.

Still, Deehan said, “California has shown that, for one brief and shining moment, we could do it! It's time to move to 100% clean energy, 100% of the time.”

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California Electricity Prices are surging across PG&E, SCE, and SDG&E territories, driven by fixed grid costs, wildfire mitigation, CARE subsidies, and Net Energy Metering, burdening low-income renters and increasing statewide utility debt, CPUC reports show.

Key Points

High rates driven by fixed grid costs and policies, burdening low-income customers across PG&E, SCE, and SDG&E.

✅ Fixed costs: transmission, distribution, wildfire mitigation

✅ Solar NEM shifts grid costs onto remaining ratepayers

✅ CPUC, CARE, LIHEAP aim to relieve rising utility debt

California's electricity prices are among the highest in the country, new research says, and those costs are falling disproportionately on a customer base that's already struggling to pay their bills.

PG&E customers pay about 80 percent more per kilowatt-hour than the national average, according to a study by the energy institute at UC Berkeley's Haas Business School with the nonprofit think tank Next 10. The study analyzed the rates of the state's three largest investor-owned utilities and found that Southern California Edison charged 45 percent more than the national average, while San Diego Gas & Electric charged double. Even low-income residents enrolled in the California Alternate Rates for Energy program paid more than the average American.

"California's retail prices are out of line with utilities across the country," said UC Berkeley assistant professor and study co-author Meredith Fowlie, citing Hawaii and some New England states among the outliers with even higher rates. "And they're increasing, as regulators face calls for action across the state."

So why are prices so high?
One reason is that California's size and geography inflate the "fixed" costs of operating its electric system, even as the state considers revamping electricity rates to clean the grid in parallel, which include maintenance, generation, transmission, and distribution as well as public programs like CARE and wildfire mitigation, according to the study. Those costs don't change based on how much electricity residents consume, yet between 66 and 77 percent of Californians' electricity bills are used to offset the costs of those programs, the study found.

These are legitimate expenses, Fowlie said. However, because lower-income residents use only moderately less electricity than higher income households, they end up with a disproportionate share of the burden, according to the study. And while the bills of older, wealthier Californians continue to decrease as they adopt cost-efficient alternatives like the state's Net Energy Metering solar program and the resulting solar power cost shift dynamic, costs will keep rising for a shrinking customer base composed mostly of low- and middle-income renters who still use electricity as their main energy source.

"When households adopt solar, they're not paying their fair share," Fowlie said. While solar users generate power that decreases their bills, they still rely on the state's electric grid for much of their power consumption - without paying for its fixed costs like others do.

"As this continues it's going to make electricity even more unaffordable," said F. Noel Perry, founder of Next 10, which funds nonpartisan research on the economy and environment.

PG&E this month raised its electricity rates 3.7 percent, amounting to a $5.01 a month increase for the average residential customer, who now pays $138.85 a month for electricity. It was the second increase this year, as regulators consider major changes to electric bills statewide, said Mark Toney, executive director of The Utility Reform Network, who noted that higher rates are particularly difficult for those who have lost their jobs in the pandemic. The California Public Utilities Commission last year approved a PG&E plan for more incremental increases through Dec. 31, 2022.

PG&E spokesperson Kristi Jourdan said in an email statement that the company was committed to keeping prices as low as possible as the state weighs income-based flat-fee utility bills proposals, and that although some programs are meant to be subsidized through rates, "in other cases, given that some customers have greater access to energy alternatives, the remaining customers - often those with limited means - are left paying unintended subsidies."

The costs quickly became overwhelming for Fretea Sylver, who rents a small house in Castro Valley and lost much of her work as the owner of a small woodwork business early in the pandemic. "They're little tiny changes but they accumulate. You turn around and you're like wait a second, why is my bill $20 more?," Sylver said. "And you have to pay it, no matter what."

Many more are unable to pay. Between February and December of last year, Californians accumulated more than $650 million in late payments from their utility providers, according to an analysis by the CPUC. In 2019, utility debt fell $71,646,869 from the prior year.

Sylver, who was on unemployment for 10 months last year, accumulated over $600 in unpaid PG&E bills. "We sort of went into a bit of debt, having to use credit cards and loans to sustain what we had to pay for. We're trying to catch up," Sylver said. The family received some help from the federal Low-Income Home Energy Assistance Program, which provides up to $1,000 to those who are late on their utility bills.

The study identified improvements to make California's power grid more equitable, such as income-based fixed electricity charges for the grid's cost that are based on income. Republican state senators this week called on the state to use federal relief money to forgive the billions Californians owe in utility debt, even as some lawmakers move to overturn income-based utility charges amid ongoing debate. Californians are currently protected by a statewide moratorium on disconnection for nonpayment of electricity bills through June 30. The CPUC this month began taking public input on the issue of how to grant some relief to those who have fallen behind on their utility bills.

This article is part of the California Divide, a collaboration among newsrooms examining income inequality and economic survival in California.

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California Wildfire Power Shut-Offs escalate as PG&E imposes blackouts amid high winds, Getty and Kincade fires, mass evacuations, Sonoma County threats, and a state of emergency, drawing regulatory scrutiny over grid safety and outage scope.

Key Points

Planned utility outages to curb wildfire risk during extreme winds, prompting evacuations and regulatory scrutiny.

✅ PG&E preemptive blackouts under regulator inquiry

✅ Getty and Kincade fires drive mass evacuations

✅ Sonoma County under threat amid high winds

Pacific Gas & Electric (PG&E) already faces an investigation by regulators after cutting supplies to 970,000 homes and businesses amid California blackouts that raised concerns.

It announced that another 650,000 properties would face precautionary shut-offs.

Wildfires fanned by the strong winds are raging in two parts of the state.

Thousands of residents near the wealthy Brentwood neighbourhood of Los Angeles have been told to evacuate because of a wildfire that began early on Monday.

Further north in Sonoma County, a larger fire has forced 180,000 people from their homes.

California's governor has declared a state-wide emergency.

What about the power cuts?

On Monday regulators announced a formal inquiry into whether energy utilities broke rules by pre-emptively cutting power to an estimated 2.5 million people, amid a blackouts policy debate that intensified, as wildfire risks soared.

They did not name any utilities but analysts said PG&E was responsible for the bulk of the "public safety power shut-offs", and later faced a Camp Fire guilty plea that underscored its liabilities.

The company filed for bankruptcy in January after facing hundreds of lawsuits from victims of wildfires in 2017 and 2018.

Of the 970,000 properties hit by the most recent cuts, under half had their services back by Monday, and some sought help through wildfire assistance programs, the Associated Press reported.

Despite criticism that the precautionary blackouts were too widespread and too disruptive, PG&E said more would come on Tuesday and Wednesday because further strong winds were expected.

The company said it had logged more than 20 preliminary reports of damage to its network from the most recent windstorm.

In a video posted to Twitter on Saturday, Governor Gavin Newsom said the power cuts were "infuriating everyone, and rightfully so".

Where are the fires now?

In Los Angeles, the Getty Fire has burned over 600 acres (242 ha) and about 10,000 buildings are in the mandatory evacuation zone.

At least eight homes have been destroyed and five others damaged.

"If you are in an evacuation zone, don't screw around," Mr Schwarzenegger tweeted. "Get out."

LA fire chief Ralph Terrazas said fire crews had been "overwhelmed" by the scale of the fires.

"They had to make some tough decisions on which houses they were able to protect," he said.

"Many times it depends on where the ember lands. I saw homes that were adjacent to homes that were totally destroyed, without any damage."

In northern California, schools remain closed in Sonoma County, where tens of thousands of homes and businesses are under threat.

Sonoma has been ravaged by the Kincade Fire, which started on Wednesday and has burned through 50,000 acres of land, fanned by the winds.

The Kincade Fire began seven minutes after a nearby power line was damaged, and power lines may have started fires according to reports, but PG&E has not yet confirmed if the power glitch started the blaze.

About 180,000 people have been ordered to evacuate, with roads around Santa Rosa north of San Francisco packed with cars as people tried to flee.

There are fears the flames could cross the 101 highway and enter areas that have not seen wildfires since the 1940s.

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eRex Biomass Power Plant will deliver 300 MW in Japan, offering stable baseload renewable energy, coal-cost parity, and feed-in tariff independence through economies of scale, efficient fuel procurement, and utility-scale operations supporting RE100 demand.

Key Points

A 300 MW Japan biomass project targeting coal-cost parity and FIT-free, stable baseload renewable power.

✅ 300 MW capacity; enough for about 700,000 households

✅ Aims to skip feed-in tariff via economies of scale

✅ Targets coal-cost parity with stable, dispatchable output

Power supplier eRex will build its largest biomass power plant to date in Japan, hoping the facility's scale will provide healthy margins, a strategy increasingly seen among renewable developers pursuing diverse energy sources, and a means of skipping the government's feed-in tariff program.

The Tokyo-based electric company is in the process of selecting a location, most likely in eastern Japan. It aims to open the plant around 2024 or 2025 following a feasibility study. The facility will cost an estimated 90 billion yen ($812 million) or so, and have an output of 300 megawatts -- enough to supply about 700,000 households. ERex may work with a regional utility or other partner

The biggest biomass power plant operating in Japan currently has an output of 100 MW. With roughly triple that output, the new facility will rank among the world's largest, reflecting momentum toward 100% renewable energy globally that is shaping investment decisions.

Nearly all biomass power facilities in Japan sell their output through the government-mediated feed-in tariff program, which requires utilities to buy renewable energy at a fixed price. For large biomass plants that burn wood or agricultural waste, the rate is set at 21 yen per kilowatt-hour. But the program costs the Japanese public more than 2 trillion yen a year, and is said to hamper price competition.

ERex aims to forgo the feed-in tariff with its new plant by reaping economies of scale in operation and fuel procurement. The goal is to make the undertaking as economical as coal energy, which costs around 12 yen per kilowatt-hour, even as solar's rise in the U.S. underscores evolving benchmarks for competitive renewables.

Much of the renewable energy available in Japan is solar power, which fluctuates widely according to weather conditions, though power prediction accuracy has improved at Japanese PV projects. Biomass plants, which use such materials as wood chips and palm kernel shells as fuel, offer a more stable alternative.

Demand for reliable sources of renewable energy is on the rise in the business world, as shown by the RE100 initiative, in which 100 of the world's biggest companies, such as Olympus, have announced their commitment to get 100% of their power from renewable sources. ERex's new facility may spur competition.

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