Another California Fraud Slush Fund: New Solar Fee Will Raise Electric Bills

With so much fraud uncovered in California, it’s hard to imagine there could be more. But we know there is more to uncover – more hospice Medi-Cal fraud, more homeless spending fraud, more Palisades fire victims fraud, more LAUSD fraud, more cash-for-ballots election fraud, more welfare fraud, more daycare fraud, more COVID-era relief fraud, more State Library fraud… where does it end?

The Globe has learned that there is more fraud in the planning stages – not existing fraud –  under the guise of yet another climate change clean-energy scheme. Specifically, another solar scheme… on the heels of CalDOGE uncovering a $1 Billion solar program funding a Democrat voter mobilization machine.

This is on my radar because of the home solar system I was mandated by state law to install on a home my husband and I built in 2022.

It turns out the solar works well – so well, we are not charged for electricity. After learning about the solar mandate, and while building the home, we made the decision to purchase the storage battery backup, which for us has enough solar energy stored up for several months of electricity. That is, if it is not taken from us by our electricity provider— as I understand could happen.

California has implemented new regulations that will allow energy producers to utilize stored solar energy from homeowners’ backup storage batteries. This initiative is supposedly designed to “enhance grid stability” and “reduce costs associated with energy management,” according to industry sources who say the California Energy Commission is behind this.

California’s Solar Scheme

First, in 2022, the California Public Utilities Commission overhauled the state’s rooftop solar regulations, reducing payments to homeowners for excess power, which is why I’ve never received such a payment for my stored excess power.

Then, in March 2024, the CPUC approved new “interconnection” rules to raise costs on solar consumers to fund a solar energy promotion program.

Why do solar consumers, who have already paid for their mandated rooftop solar, have to fund a solar energy promotion program? The short answer is that we don’t. But if electricity providers and the California Energy Commission can impose regulations and taxes, that is exactly what they will do.

If this feels like a money grab for close friends of the Newsom administration to enrich themselves, while pushing failed leftist ideology, you are correct.

A proposed “clean energy” program would establish a fee on all solar panels and batteries installed, to fund green energy propaganda. While developers would pay the new charge upfront, industry sources say the costs will actually be passed on to consumers and ratepayers through higher electricity bills. Once again.

Revenue generated from newly proposed “clean energy” California legislation would create the “The California Energy Security and Affordability Fund,” which, according to the bill, would “promote the adoption, deployment, and understanding of solar energy and battery storage technologies.”

So the state needs to tax you more to help you understand the need for home solar systems?

The legislation would also create the “California Energy Security and Affordability Fund Advisory Council,” all six members to be appointed by the Governor.

And it creates a 501(c)(6) organization, a type of nonprofit that focuses on promoting the business interests of its members. It is a trade association that not only promotes solar, but can also lobby and contribute funds to political PACs.

The PR flaks pushing this scheme compare this campaign to the “Got Milk,” “California Raisins” and Pork Producers campaigns that are programs funded through an added fee on products to get more Americans to buy milk, raisins or pork – products you choose to buy, or not.

This will directly raise energy prices on everyone, with the result of more Green New Deal propaganda, despite “climate change” coming in last on the list of consumer concerns. 

The Trump Administration has also not only de-prioritized climate schemes, they de-platformed the Green New Deal, and withdrew from UN climate programs and schemes, and well as withdrawing from the Paris Climate Treaty.

This scheme was created by Tom Matzzie currently of CleanChoice Energy and Vote Solar, a former MoveOn.orgorganizer. MoveOn.org is a progressive public policy advocacy group and political action committee, which gained popularity and attention during the Bush and Obama administrations. 

Matzzie started CleanChoice Energy in 2011, as the Obama Administration was handing out clean energy grants through the  U.S. Department of Energy loan guarantee program. The other scheme creator is Jigar Shah, former director of the Biden Department of Energy, who ran the clean energy program that handed out a “gusher of money” ahead of the 2024 election.

We are hearing that this absurd scheme may be gaining traction in blue states across the country. It’s a perfect slush fund for governors and Democrats.

The California bill language mimics a similar proposal in Virginia, and is being pushed by the same set of deep-pocketed ideologues in Illinois, and Maryland – coincidentally in states with potential presidential candidates – Gov. J.B. Pritzker in Illinois, and Gov. Wes Moore in Maryland. And California Governor Gavin Newsom.

This isn’t something new to California Democrats. 

The Globe exposed in 2025, that they buried a new Vehicle-Miles Traveled (VMT) housing tax in in Assembly Bill 130, the budget housing bill package which Newsom signed in June 2025, claiming he was reforming the California Environmental Quality Act. The tax could reach $324,000 per home or apartment, amounting to $1,350 per month for 20 years on every new single family home. This is slush fund material.

First proposed in Virginia, the Daily Signal reported on the latest solar scheme in February:

Virginia Democrats this week shelved legislation that would have raised costs on consumers to fund a solar energy promotion program.

The decision to table HB 935 means that Virginians won’t be hit with an added fee on their electricity bills—at least for now.

The “clean energy” legislation would have imposed a fee of 2 cents per watt on solar energy and battery storage projects statewide.

Who’s pushing this?

Lobbying on this bill is by Deploy Action, a green advocacy group, with a hefty assist from lobbying firm Broad Street Group. Deploy Action was founded by Jigar Shah, Former Department of Energy Advisor, Arnab Pal, Former California Democrat, Assemblyman Phil Ting, a team of Department of Energy veterans, industry leaders, former elected officials and Green Tech Industry Executives… “to Lead the State in Decarbonization.”

Yet, California has the cleanest air in the country.

“Deploy Action, a network of clean technology industry leaders, political influencers and former high-level State and Federal government officials, is leveraging the progress achieved over the last four years to take clean energy infrastructure and access to new heights,” Deploy Action says about itself. “The organization will remove barriers to clean energy adoption, ensuring a more sustainable, reliable and affordable energy system for all.”

There are no “barriers” to clean energy adoption – this is gross rent seeking at some of the highest levels – rent seekers look to increase their wealth by manipulating public policy or economic conditions without creating any new wealth. They are takers, not makers.

Sounds like another Solyndra-level scheme.

The Proposed Legislation

This is the language and scheme laid out for everyone to see, from the actual proposed bill:

“Nationwide, fossil fuel trade associations outspend clean energy advocacy 20 to 1, distorting public understanding and undermining public trust and legislative support.”

Perhaps that is because oil and gas actually fuels the nation, and every industry within. And, oil and gas pay for their own promotion and PR.

(c) To correct for this market inequity, California should lead in launching a state-based checkoff campaign to support public education, workforce development, and consumer confidence in low-cost, energy independent, resilient, clean energy technologies.

Market inequity? Obviously solar can’t compete in free markets, and fair market conditions.

(d) A technology-specific, fee-based mechanism is necessary to ensure all industry participants contribute equitably and to avoid free rider problems.

A “fee-based mechanism” means a new tax by government. There is nothing “fair” about taxpayers funding an other clean energy scheme.

(e) California has a unique opportunity to model a rapid, tailored, and transparent approach to promoting clean energy, supporting its climate goals, and supporting its energy affordability and environmental justice commitments.

Will this transparent approach be as transparent as the Newsom administration? Or the California Legislature?

In the bill they lay out the taxes and fees:

Each manufacturer or retail seller shall pay an assessment to the commission on the following technologies:

A two cent ($0.02) per watt assessment on all solar photovoltaic modules sold for installation in California. This assessment shall apply to both of the following:

(A) Wholesale and retail transactions in California, including online sales shipped to California addresses.

(B) Purchases made for solar photovoltaic modules by individuals, businesses, governmental agencies, and electrical corporations within California.

A twenty dollar ($20) per kilowatt of storage capacity assessment on all energy storage systems sold in California. The assessment shall apply to both of the following:

(A) Wholesale and retail transactions in California, including online sales shipped to California addresses.

(B) Purchases made for solar photovoltaic modules by individuals, businesses, governmental agencies, and electrical corporations within California.

A two hundred ($200) per vehicle assessment for new zero-emission vehicles sold in California.

Industry sources told the Globe that recently introduced Senate Bill 1158 by Sen. Henry Stern (D-Los Angeles), an environmental lawyer, is a placeholder bill for the proposed solar tax language. It could be a gut-and-amend bill, or could end up being wrapped into the budget. Either way, there would be no public hearings on this massive taxation slush fund.

After years of the drumbeat of renewable energy as the only alternative, California Democrats and Governor Newsom are merely increasing the cost astronomically of electricity through another proposed tax, at a time when California already pay the highest energy rates in the nation.

The industry source said of the tax funds raised, a chunk of it will go to targeting clean energy and solar systems in red states, while the remainder will be a Democrat slush fund.

The funds can go to the California Energy Commission who then gets to decide what to do with it:

“Which stakeholders should have a seat on the new Board?” they ask, and recommend the California Energy Commission choose board members:

This is just one more deceitful Democrat-created fraudulent slush fund scheme, to be paid for by California taxpayers, on top of the more than $400 BILLION – nearly one-half a trillion dollars – of fraud currently being uncovered and exposed.

Here is the Power Point presentation on this scheme: