Gavin Newsom could have made electricity more affordable and climate-friendly. Here’s how

Governor Gavin Newsom stood before global leaders in Brazil recently at COP30, the annual United Nations climate conference, and introduced himself to the world as the new face of U.S. climate ambition. 

The scene raised a question back home in California: Why did Newsom recently veto climate solutions that would have made electricity cleaner and more affordable for Californians?

For decades, California has shown the world that states and regions can drive climate and economic progress, even when national governments lag. 

Now the world’s fourth-largest economy, our state has paired consistent cuts in emissions with sustained economic growth and set a standard for clean car rules that is copied worldwide. It also built the nation’s first economy-wide “Cap and Invest” program, the cap-and-trade energy credit program recently reformed and extended under Newsom’s watch.

Yet as the climate crisis escalates, even that legacy faces scrutiny. While Newsom was preparing for COP30, his administration was delaying or diluting key domestic reforms and quietly expanding in-state oil and gas drilling.

In Brazil, Newsom urged fellow Democrats to start framing climate as an affordability issue — of course, it is. This rhetoric earned him praise abroad. 

But Newsom has balked at several recent opportunities to address climate and cost-of-living challenges together. 

Just weeks ago, the governor vetoed three bipartisan bills that would have advanced virtual power plants, which are systems that deliver clean power back to the electrical grid during peak hours by aggregating power from devices many of us already have in our homes — such as smart thermostats, rooftop solar panels, home and electric vehicle batteries and electric heat pumps. 

Managing strain on the grid with virtual power plants helps avoid blackouts, reduces reliance on gas powered plants and saves electricity customers money on their utility bills, including those not participating in a virtual power plant program. 

One recent study predicted virtual power plants could save Californians up to $13.7 billion on electricity over the next five years. That is the kind of climate-forward and affordability-focused policy that California voters and global climate champions want. 

But all three bills were doomed because investor-owned utilities like PG&E continue to work against local-scale electricity solutions like virtual power plants, and they know they can count on Newsom as an ally.

It’s time for Newsom to start treating climate like a winning issue here in California — not just on the international stage in the lead-up to the 2028 presidential race. Investing in solutions like virtual power plants creates jobs, lowers electricity bills and builds resilience to wildfires and floods. 

Californians pay twice the national average for electricity and yet still endure frequent planned blackouts. We want solutions that work, protect our families and save money, and we want our governor to champion them.

Newsom is right to emphasize affordability as a pillar of climate progress, creating further contrast between himself and President Donald Trump. That’s good politics and good policy — but it’s also puzzling when his administration vetoes the most cost-effective clean energy solutions available today.

After his time in Brazil, Newsom needs more than rhetoric to cement his legacy as a true climate champion. In his final months as governor, he should advance policies that combat the climate crisis and provide economic relief to hardworking Californians. Here are two ways he can show the world how to tackle climate change while lowering the cost of living.

First, knock down state barriers to local, clean, affordable energy. Newsom must stop deferring to corporate utilities like PG&E and mobilize the state to support rooftop solar, virtual power plants and other clean, decentralized electricity solutions. 

Second, eliminate fossil fuel subsidies and make corporate polluters pay for climate disasters. California hands billions to the oil and gas industry while communities bear the costs of extreme weather and fossil fuel pollution. Making polluters pay their fair share would help finance the transition to a cleaner economy, improve public health and take the burden off taxpayers. 

These solutions can be replicated around the world. And, thanks to Newsom’s strong showing in Brazil, the world will be watching.