It was announced today that the much anticipated energy-sharing bill AB 538 has been put on hold.

Assemblymember Chris Holden (D-Pasadena) will not call for a vote as the bill stands now, but plans to work with stakeholders to resolve opponents’ concerns. If successful, he will put forward an updated version for legislative action as early as January for next year’s session.

Hours after the announcement, Governor Gavin Newsom expressed support for the ideas included in the bill – the first time the governor made any public statement about the bill.

Holden’s bill was the latest legislative attempt to move California toward participating in a western regional transmission organization (RTO). An RTO would expand energy-sharing among Western states – a more efficient way of using and expanding renewable resources to meet climate/carbon reduction goals.

Opposition came from California labor representatives, advocates for electricity customers and some environmental groups: concerns center around losing state control over its energy markets and how and RTO would impact the number of energy projects in CA.

The California Independent System Operator (CAISO) will continue to expand into other Western energy market models that don’t require a change in CA law.