NOTE: VIDEO AT THE END OF THE ARTICLE:
California Governor Gavin Newsom criticized the GOP’s “one big, beautiful bill” on Sunday, claiming the legislation could drive electricity prices even higher for Californians—who already face some of the nation’s steepest utility bills.
Taking to X, Newsom argued that the bill’s reduction of green energy subsidies might cause electricity costs to spike by as much as 30%. “This is one of the most destructive bills in U.S. history,” he said, highlighting concerns over how the bill could impact energy prices.
However, California residents already pay approximately 140% more for electricity than the average American, according to the California Globe. The state’s ambitious climate policies, including Newsom’s goal to cut greenhouse gas emissions by 85% by 2045, have driven a rapid shift toward renewable sources like solar and wind power.
This aggressive green energy push has led to an oversupply of electricity during peak production times, forcing California to invest heavily in battery storage solutions and even pay neighboring states to absorb excess power. Experts warn that overreliance on intermittent renewables can destabilize the grid, complicating efforts to maintain consistent energy supply.
On June 21, former President Donald Trump criticized the bill’s inclusion of “green tax credits,” calling for the elimination of wind subsidies and dismissing the package as “junk.” The GOP-controlled Senate later amended the bill to accelerate deadlines for wind and solar projects—a move that drew sharp criticism from environmental groups.
California’s energy woes are compounded by recent closures and planned shutdowns of power plants and refineries, driven by stringent regulations. These changes have contributed to skyrocketing electricity prices statewide.
In 2024, officials approved extending the operation of three natural gas power plants through 2026 to bolster grid stability and prevent blackouts. The state’s ongoing reliability issues have led Newsom to urge residents to conserve electricity, especially during extreme heat events like the September 2022 heat wave.
Gasoline prices in California remain among the highest nationally and are expected to increase again soon due to new state gasoline tax amendments. The state also enforces a low-carbon fuel standard, which operates through a credit trading system that can raise costs for consumers as fuel producers buy and sell emissions credits.
As California balances environmental goals with energy affordability and reliability, Newsom’s critique of the “one big, beautiful bill” spotlights the tension between policy ambitions and economic realities for residents.
PLAY:
https://www.youtube.com/watch?v=4wkcUGrYr6g
