A bill to promote virtual power plants goes before the California State Assembly Utilities and Energy Committee next week. Virtual power plants are networks of home energy devices like smart thermostats, stationary home batteries, and electric vehicles that can be used as power sources during peak hours, which lowers the amount of power that electric utilities have to provide.

Assemblymember John Harabedian, D-Pasadena, said virtual power plants would reduce the need to build costly transmission lines and polluting natural gas plants.

"This bill, really in utilizing virtual power plants, is about affordability and reliability and sustainability. It's a cost-saving measure, and it's also an easier way to meet demand throughout the state during peak hours," he explained.

At least 300,000 Californians are already getting paid as part of the Demand Side Grid Support program, agreement that allows the utilities to pull power stored in their smart devices' batteries to power their home.

Harabedian said Assembly Bill 740 would direct the California Energy Commission to make plans to expand the use of virtual power plants, following the success of a pilot program.

"It has prevented blackouts. It has delivered over 500 megawatts of capacity, about the same as three gas peaker plants, and has saved millions of dollars already," he continued. "So, the pilot program has been undeniably successful. We just need to scale it."

A recent study found that virtual power plants could save California residents $750 million per year in traditional power system costs. Some are concerned that utilities may earn less money if the programs expand. So far, there is no registered opposition to the bill.


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Supporters of electric vehicle ownership said there are a number of advantages to owning one.

Studies show EVs can convert 85% to 90% of their energy into forward movement. A majority of the electricity used in an EV vehicle is American-made and an EV can be charged at home, just like a cellphone.

Despite the benefits and their popularity, Rep. Mike Johnson, R-La., the Speaker of the House, has proposed removing a $7,500 tax credit for EV owners as part of President Donald Trump's goal to restructure the country's budget.

John Higham, board member of the Electric Vehicle Association, wondered if it will cause potential EV car buyers to back away.

"Do I think if this $7,500 tax credit suddenly disappeared, it's not going to kill the electric vehicle?," Higham asked. "It might slow the acceleration of the adoption of the electric vehicle but it's certainly not going to reverse the trend."

Trump's budget proposal could pass between the end of May and the end of July. Higham acknowledged the tax credit is a strong motivator for people to buy or lease an electric car. And he expects a 10% to 12% growth rate for purchases. Higham admitted the number could drop to between 8% and 9% if the tax credit disappears.

As of December 2023, the Department of Energy shows slightly more than 26,000 Hoosiers own an electric vehicle.

The Republican controlled House has proposed legislation to extend the tax credit until the end of 2025 and analysts said the largest EV automaker, Tesla, owned by Trump associate Elon Musk, would be affected the most if the tax credit ends. Higham noted the fallout of repealing the tax credit could break down along party lines.

"That economic engine that is in those red districts, where there's new battery manufacturing put in, new automotive manufacturing put in," Higham pointed out. "Those are the voters that are going to feel it the most, are in those red districts. And so there are Republican congressmen who are saying, not quite so fast. It is harder to repeal than I think most people realize."

In 2024, it is estimated the federal government spent about $2 billion in advance point-of-sale EV tax credit payments. Buzz about the tax removal may push consumers to buy EVs sooner than later, to take advantage of the credit before it disappears.

Some Republican lawmakers, including Rep. Nick Begich, R-Alaska, are considering repealing the Inflation Reduction Act's clean energy incentives. Supporters of the measure say cuts would threaten jobs in Alaska. The efforts come as Alaska's liquid natural gas supplies will not be enough to meet demand in the state. That means the state may have to begin importing gas causing prices to rise.

Jennifer Hyde, federal infrastructure coordinator at the Alaska Center, hoped clean energy projects could begin benefitting the state before the crisis takes hold.

"We're hoping that communities can seize on IRA funds in order to actualize on solar projects, on wind projects, on hydro projects, on a number of other alternatives before this crisis happens," she explained.

Begich and other Republicans signed a letter arguing that the clean energy subsidies in the IRA will undermine America's energy dominance - and inflate energy costs. But Sen. Lisa Murkowski, R-Alaska, has supported the clean energy incentives.

Anchorage business owner Ben Kellie is concerned about the impacts of the possible repeal of clean energy incentives on Alaska's economy, and said the incentives can mean major savings for Alaska families.

"This isn't just saving a few cents off of a bill. A lot of these projects are in communities where people are paying over a thousand dollars to heat and light small homes off the road system," Kellie said. "This is real money that not only stays in the community and circulates, but helps families make ends meet through cold winters."

In 2023, about a quarter of all Alaska energy came from renewable sources.

A bill before Indiana legislators that would have prevented city officials from requesting energy information from large commercial buildings failed in this year's legislative session.

One nonprofit believes if Senate Bill 197/House Bill 1389 had become law, Hoosiers would have faced higher utility bills. The Thriving Buildings Program relies on utility usage data gathered between 2021 and 2025 to help lower utility bills.

Paula Brooks, justice director for the nonprofit Hoosier Environmental Council, said conversations between community stakeholders, public officials and residents about building environments are key to the program's success.

"It gave building owners the opportunity to benchmark -- which is, make comparisons of their energy and water usage -- to be able to identify ways to save money on utility costs and most importantly, improve the air quality, reduce carbon emissions," she explained.

A building environment consists of building and construction materials and is a major contributor to global gas emissions. With the program's collected data, it is predicted that public health savings in Indianapolis could reach $77 million by 2030. Indianapolis is responsible for 66% of community-wide greenhouse gas emissions.

Brooks applauds the Thriving Buildings Program because residents feel their voices are being heard as their communities develop. But these voices also oppose President Donald Trump's recent executive orders to build more coal plants to boost electricity generation, and to ensure the EPA is assisting in promoting America's energy security.

Brooks believes there is another alternative to using coal as a power source.

"Renewables is not only the future, but it's happening now. This distribution model that we have now, where the energy companies hold all the power, it's only about 75 years old," she continued.

Renewable energy creates opportunities to look at new energy delivery models or "energy democracy," with solar for microgrids. So, rather than having a huge power plant somewhere, she noted, the electricity could be in a community and owned by the community, while contributing to the electric generation for industrial use.


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