SACRAMENTO, CA — Today, legislation to establish a regional grid and bring meaningful savings to ratepayers and expand California’s clean energy goals has been finalized and is pending in the State Legislature with broad support.
AB 825, authored by Assemblymember Cottie Petrie-Norris, Senator Josh Becker, and Speaker Robert Rivas, will enable the Pathways Initiative for a voluntary, west-wide regional electricity market. AB 825 preserves California’s control over critical policy functions — including transmission planning and procurement — while unlocking the benefits of broader regional cooperation: greater grid reliability, reduced blackout risk, more affordable clean power, and lower emissions.
This ambitious policy is supported by a broad and unprecedented coalition — spanning environmental organizations, labor, business, and consumer advocates — underscoring its historic significance.
“As we move toward achieving California’s 100% clean energy goals, we must look at every opportunity to reduce costs, improve reliability, and cut emissions,” said Senator Josh Becker (D–Menlo Park), one of the bill’s authors. “AB 825 strikes that balance by unlocking the benefits of a regional energy market while safeguarding California’s public policy priorities. This is a win-win for California families, our economy, and our climate future.”
The authors expressed profound gratitude to Senate President pro Tempore Mike McGuire, Governor Gavin Newsom, and US Senators Alex Padilla, Adam Schiff, Patty Murray, Maria Cantwell, Ron Wyden, and Jeff Merkley, who all support this policy. Their vision and leadership was crucial in making AB 825 a reality.
Recent amendments to AB 825 include rigorous annual legislative oversight by relevant California legislative policy committees to ensure the new market operates in line with California’s clean energy and reliability goals. The bill also provides strong protections for state authority, including California’s right to withdraw at any time if participation ceases to benefit the state.
By enabling least-cost dispatch across a broader pool of Western resources, the Pathways Initiative is expected to save California ratepayers up to $10 billion over the next decade, according to analysis by the Brattle Group. California will also reduce the costs of maintaining a state-specific strategic reliability reserve by pooling resources with other participating areas.
Key safeguards in AB 825 include:
- Maintaining CAISO’s role in planning for and operating California’s grid.
- Ensuring that governance of the new market respects state procurement, environmental, reliability, and other public policies.
- Providing the CPUC and other stakeholders with access to critical market data.
- Protecting California’s ability to withdraw from the regional market at any time.
The Legislature is expected to vote on Saturday to pass this historic legislation.