California First State to Sign Smart Grid Legislation into Law

What a week for smart grid! Not only did President Obama announce the lucky recipients of over $3.4 billion of stimulus funding for electrical grid upgrades, but news began to trickle out of California that the state’s first smart grid legislation (Senate Bill 17) was signed into law by Governor Schwarzenegger.

The policy is the first of its kind to be passed by a state in order to advance the progress of updating our electrical grid. The bill requires the California Public Utilities Commission (CPUC) to outline a specific smart grid deployment plan by July 2010. In addition, all electric utilities with more than 100,000 customers must submit a smart grid strategy plan by July 1, 2011. Wanting to help California meet its aggressive renewable energy targets, State Senator Alex Padilla (D- San Fernando Valley) sponsored the bill with the hopes of implementing an advanced and digitalized electrical grid to deliver cleaner power in a more efficient and reliable way.

With SB 17 in place, a 21st century grid could be realized in California within the next five to ten years, allowing for a fundamental change in the way we think about, and use, electricity. It would also help jump start a new energy economy, creating green technologies and green collar jobs.

Strong renewable energy mandates, clean tech financing from Silicon Valley, and utilities ahead of the game with smart grid initiatives (like SCE) position California as a leader with regard to deploying smart grid technologies. For more information on the bill and what it requires of those operating in California’s electricity sector, you can view a copy here.