For 50 years, the California Energy Commission has been a driving force in shaping a vision of a clean energy future, setting the standard on efficiency, conservation, and renewable energy. Over the decades, we've made tremendous strides toward that future. Here’s how it all started.
The California Energy Commission (CEC) was established in 1975 by the Warren‐Alquist Act to respond to the energy crisis of the early 1970s. Over the past five decades, the CEC has pioneered energy efficiency advances and diversified the state’s energy portfolio through its research and programs. Today, with a focus on achieving the state’s goal of 100 percent clean energy, the CEC continues to advance innovative and equitable energy solutions.
Read about our evolution through the decades as we explore the CEC’s journey of innovation, resilience, and progress.
History of the CEC
Fifty years ago, as the nation grappled with an oil crisis, California took bold steps to create an energy future that was sustainable and self-sufficient.
It was the early 1970s. California was on the cusp of explosive population and economic growth but stood at a critical crossroads. Energy demand was projected to double every decade, and utility companies were pushing for a massive expansion of nuclear power along the Pacific Coast. Meanwhile, geopolitical tension led Arab states to impose an oil embargo in 1973, which sent prices soaring, created severe fuel shortages and revealed the vulnerabilities of dependence on foreign oil.
The state faced a pivotal question: how could it meet its growing energy demands while protecting the environment and fostering economic prosperity?
State Assemblymember Charles Warren, a member of the Assembly’s Planning and Land Use Committee, had spent several years studying the issue of the state’s growing demand for energy. Alarmed at projections for electricity demand to double every decade and utility companies’ plans to build 100 new power plants across the state, 80 of which would be nuclear-powered, he proposed legislation that would overhaul state energy policy. The bill, which passed the Assembly and Senate, proposed a new state energy agency that would implement electricity conservation measures, pursue alternative energy resources, conduct independent energy forecasts for electricity and develop new power plant siting processes. Governor Ronald Reagan vetoed the bill when it came to him for signing in the fall of 1973 but a few weeks later, the oil crisis shook the nation. In response, Governor Reagan reversed course and threw his support behind the bill. A slightly modified version of the Warren-Alquist State Energy Resources and Conservation Act passed in 1974, and the CEC opened its doors in 1975.
This pivotal shift led to the passage of the Warren-Alquist State Energy Resources and Conservation Act in 1974, setting the stage for the CEC to begin operations in 1975, marking a new era in state energy governance.
The CEC was tasked with pursuing a forward-thinking agenda using key powers granted to it by the new law. The first was centralizing energy planning under the CEC, which imposed oversight on utility companies’ ability to build new power plants and increase profits. Previously, utility companies built new power plants based on internal projections and assumptions. Now, energy demand forecasting was handed to the CEC along with the authority to evaluate and approve new proposed power plants. At the same time, the legislation mandated the CEC to develop the first-ever energy efficiency standards for appliances and buildings and pursue alternative energy options, such as wind and solar, through research and investment in advanced technologies.
Governor Edmund G. Brown Jr. took office in 1975, the same year the CEC officially opened its doors, giving him significant influence over the direction of the commission. Governor Brown prioritized energy efficiency over constructing nuclear plants. An influential conversation with physicist Art Rosenfeld at the University of California, Berkeley – who later served as a CEC commissioner – is said to have helped solidify this vision. Rosenfeld proposed that improving the efficiency of a single appliance – the refrigerator -- could save as much energy as would be produced by a controversial nuclear power plant under consideration in Kern County. Inspired, Governor Brown championed appliance standards, which propelled California to the forefront of energy efficiency for consumer products and buildings.
These early measures laid the groundwork for decades of innovation, saving Californians more than $100 billion in energy costs and reshaping the state's – and to some extent the nation’s - energy landscape. It was innovation and investment in lighting efficiencies in California that led to the recent phase out of the incandescent light bulb.
Simultaneously, California was seeking ways to diversify its energy mix by encouraging renewable energy development. In the late 1970s and early 1980s, state tax incentives, coupled with federal policies like the Public Utility Regulatory Policies Act, spurred the first investments in solar, wind, and other renewable technologies throughout the state. This initial push reduced reliance on traditional energy sources and established California’s future leadership in renewables.
The 1973 oil embargo wasn’t the only crisis that shaped California’s energy future. Following major legislative changes in the 1990s, electricity markets were deregulated. It didn’t take long for problems to emerge. In 2000, a combination of market manipulation and drought that impacted hydroelectric generation led to blackouts and skyrocketing electricity prices. The crisis underscored the need for stable, long-term energy planning, and the importance of state control over energy policy. As it had during the oil embargo, California pivoted to address the challenges by prioritizing reliability, sustainability, and strong regulatory frameworks. The CEC’s role in forecasting energy demand and ensuring system resilience became more central as the state sought to avoid future disruptions.
California also responded by accelerating the transition to renewable energy sources with the passage of the Renewables Portfolio Standard in 2002, marking a significant step in the state’s clean energy journey. This push to again diversify the state’s energy mix by looking to renewables aligned with growing concerns about the impacts of global climate change. In 2001, the Pavley Bill directed the California Air Resources Board to draft state regulations for tailpipe emissions. This was followed in 2006 by the passage of the Global Warming Solutions Act, a landmark bill set for the first time ambitious targets for greenhouse gas reductions statewide.
In 2012, the state continued advancing clean energy innovation through the Electric Program Investment Charge (EPIC) program. By funding research in building decarbonization, long-duration energy storage, resiliency, health, and safety, EPIC has helped drive the technological advancements needed to help meet California’s energy and climate goals. EPIC has also enabled key partners for the CEC, such as the military branches and California Native American tribes to participate more widely.
California took a major step toward an equitable clean energy future in 2015 with the passage of the Clean Energy and Pollution Reduction Act (SB 350). The law set bold targets—raising renewable energy to 50% by 2030, doubling energy efficiency savings in electricity and natural gas, and cutting greenhouse gas emissions to 40% below 1990 levels by 2030 and 80% below 1990 levels by 2050. It also strengthened the state’s commitment to equity and environmental justice by establishing Energy Equity Indicators, the Disadvantaged Communities Advisory Group (DACAG), and advancing research in Direct Air Capture (DAC). With this momentum, in 2015 the CEC adopted a resolution stating its commitment to equity and supplier diversity. In 2019 the CEC expanded its efforts through the Justice, Access, Equity, Diversity, and Inclusion (JAEDI) Initiative and developed the JAEDI framework in 2022. The framework established guiding principles and best practices to achieve a modern and reliable energy system that equitably serves all Californians while fostering diversity and a sense of belonging at the CEC.
California set its most ambitious goal yet in 2018 with Senate Bill 100, requiring the state to generate 100 percent of its electricity from renewable and zero-carbon sources by 2045. Governor Brown’s leadership continued to propel California to the forefront of global climate action. These policies paved the way for California’s decarbonization strategy, built around electrification and clean energy.
In 2022, the California Climate Commitment took this strategy further, setting new interim milestones of 90 percent clean energy by 2035 and 95 percent by 2040 through SB 1020. Additionally, Assembly Bill 1279 made the goal of achieving net-zero emissions by 2045 official, while substantial investments were made to advance the adoption of zero-emission vehicles ($10 billion) and accelerate clean energy infrastructure development ($8 billion).
To achieve these ambitious climate and energy goals, the state must rapidly expand its clean electricity generation, with estimates suggesting a tripling of grid capacity by 2045.
California is already making considerable progress. Today, 61 percent of the state’s electricity is generated from renewable and zero-carbon resources. Since 2019, nearly 12,000 megawatts (MW) of fossil fuel generation have been retired and 22,000 MW of new clean energy resources have been added, including a remarkable expansion of battery storage. Battery storage has grown from 250 MW in 2019 to more than 10,000 MW in 2024.
Looking ahead, the state has policies in place to develop 25,000 MW of offshore wind by 2045, achieve 100 percent zero-emission vehicles sales by 2035, and install 6 million heat pumps in buildings by 2030. Additional plans include making 7 million homes climate-ready by 2035 and deploying 7,000 MW of load flexibility to manage energy demand efficiently.
However, as the state works to accelerate the transition, it faces two significant challenges. First, there is an urgent need to build new clean energy resources while ensuring these resources can connect to the grid quickly. Second, the state must balance electric reliability with affordability, as rising electricity rates can pose significant burdens on Californians. To address these challenges, the state has developed a strategic reserve of energy resources and has increasingly relied on battery storage to bridge gaps during peak demand periods.
Today, the CEC has entered a new era of implementation, working to realize the state’s ambitious climate and energy goals. This monumental effort comes with challenges, including extensive land requirements for solar and wind projects. Fortunately, programs like Opt-In Certification (AB 205) allow the CEC, for the first time, to certify clean energy generation and assembly in a condensed period. However, the impacts of climate change—intensified heatwaves, wildfires, and prolonged drought—are putting significant pressure on California’s energy infrastructure, highlighting new vulnerabilities and threatening the system’s reliability.
Affordability, equity and environmental justice remain priorities. The rotating outages of 2020 underscored the risks of an unstable energy transition, highlighting the need to balance innovation with equitable access to safe, reliable, and affordable energy.
For 50 years, the CEC has played a pioneering role in California’s leadership on energy and climate issues. From addressing the oil embargo of the 1970s to advancing today’s clean energy agenda, the state has demonstrated resilience and innovation in the face of crisis. As California looks toward a clean energy future, the CEC will continue to be a driving force, navigating the complexities of ensuring an energy system that is reliable, affordable, and equitable for all.