California cut coal from its energy supply. Why state might plug back into fossil fuels

California lawmakers are advancing Senate Bill 540, which aims to expand the state's power market to include coal-burning states like Wyoming and Utah. Proponents argue that this move will lower electricity costs and enhance grid reliability, particularly during peak demand times. Critics, however, warn that such a shift could undermine California's climate policies and expose the state to fossil fuel markets. The bill passed the Senate with bipartisan support and is currently being debated in the Assembly, with a deadline for a deal set for mid-September. Governor Gavin Newsom has urged swift action to retain California’s authority over its energy policies and prevent losing trading partners to competing markets.

California is legally required to transition to 100% clean electricity by 2045, which raises the stakes of this decision. Recent data shows that renewable sources have met the state’s energy needs for significant portions of the year, but high electricity rates remain a concern. The Utility Reform Network has taken a neutral stance but is demanding assurances of California's autonomy in energy trading.