AB 1260 California Assembly · 2025-2026 Regular Session

Electricity: renewable energy subscription programs.

Summary

Existing law requires the Public Utilities Commission (PUC) to evaluate each customer renewable energy subscription program to determine if the program meets certain goals and determine whether it would be beneficial to ratepayers to establish a new tariff or program or modify an existing tariff or program to establish a community renewable energy program consistent with certain requirements, including a requirement that the program provides bill credits to subscribers based on the avoided costs of the program's facilities, as provided. Pursuant to this requirement, the PUC has adopted a community renewable energy program. This bill would revise and recast the requirements for the customer renewable energy subscription program to, among other things, specify that the avoided costs include certain avoided cost values. The bill would impose additional requirements that the program is required to meet, including requiring facilities participating in the program to have no more than 5 megawatts of generation capacity and no more than 5 megawatts of storage, and capping the total program capacity at 5 gigawatts or ending program subscription after 7 years, when either limit is first reached. The bill would require the PUC, on or before September 1, 2026, to adopt or modify the community renewable energy program to ensure consistency with certain requirements, as provided. The bill would require each community choice aggregator and electric service provider, within 180 days of the adoption or modification of the program, to notify the PUC regarding whether it will participate in the program. The bill would authorize a community choice aggregator or electric service provider to begin participating in, or end its participation in, the program at any time by notifying the PUC. The bill would require the PUC, beginning 2 years from the adoption or modification of the program, to evaluate the program to ensure consistency with the program's requirements and would require the PUC to authorize the termination or modification of the program if the PUC determines that the program does not meet those requirements. The bill would require the State Energy Resources Conservation and Development Commission (Energy Commission) to evaluate community solar and storage projects as a load-modifying resource so that those projects may be counted as a load-modifying resource. The bill would require the Energy Commission to undertake the evaluation and issue a determination on or before September 1, 2026, as provided. Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the PUC is a crime. Because the above provisions would be part of the act and a violation of a PUC action implementing this bill's requirements would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Issues: ✓ Energy ✓ Environment

Bill status failed 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 21, 2025 Last action Feb 2, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

04/28/25 - Amended Assembly → AB1260 · 2 edits

MINOR

This diff reflects a formatting and presentation update to AB 1260 rather than a substantive policy change. The bill text content, including all program requirements, capacity limits, timelines, and definitions, remains identical between the two versions. The changes consist of removing line numbers from the bill text, updating the header layout, and adding web page navigation elements typical of a legislative website publication.

TECHNICAL

Removed line-number formatting from the bill text and replaced the old header style with a clean publication format suitable for web display.

Added website navigation elements (home, accessibility, FAQ, search, bill tracking links) that are part of the legislative website interface rather than the bill itself.

04/10/25 - Amended Assembly → 04/28/25 - Amended Assembly · 8 edits · Apr 28, 2025

MODERATE

The April 28 amendment to AB 1260 adds significant new program limits and oversight mechanisms not present in the April 10 version. Most notably, it caps individual facility size at 5 megawatts of generation and 5 megawatts of storage, sets a total program capacity cap of 4 gigawatts (or a 7-year subscription sunset), requires quarterly public reporting on program operations, and mandates a PUC evaluation two years after program adoption that can trigger termination. The bill also restructures its subdivisions and removes the earlier July 1, 2024 program establishment deadline in favor of a single September 1, 2026 deadline.

REQUIREMENT

New paragraph (14) requires all participating facilities to have no more than 5 megawatts of generation capacity and no more than 5 megawatts of storage.

Paragraph (4) changed 'offer a meaningful compliance pathway' to 'offer a compliance pathway,' removing the word 'meaningful' and making the building code compliance requirement less prescriptive.

SCOPE

New paragraph (15) caps total program capacity at 4 gigawatts or ends program subscriptions after 7 years, whichever limit is reached first. Note: the bill's own summary section references 5 gigawatts, creating an internal discrepancy with the operative text.

ENFORCEMENT

New paragraph (16) requires program administrators to file quarterly reports on operations and outcomes (megawatthours used, projects approved/completed, locations, subscriber info, job training, local hiring, low-income participation percentage), posted publicly on the PUC website. Data collection is required during the first two years of the program.

New subdivision (e) requires the PUC to evaluate the program beginning two years after adoption or modification to ensure it meets all requirements. If the program does not meet requirements, the PUC must authorize termination or modification, and this can occur before the 4 GW or 7-year limits are reached.

TIMELINE

The PUC deadline for adopting or modifying the program was simplified from a two-step process (adopt/modify by March 1, 2026, final decision by September 1, 2026) to a single deadline of September 1, 2026. The earlier July 1, 2024 establishment deadline was removed entirely.

DEFINITION

The avoided cost calculation in paragraph (8)(B)(i) was restructured: 'avoided generation capacity' was removed from the list of values included in the standard avoided cost calculation and is now only included conditionally under item (ii) if the Energy Commission determines the projects are load-modifying resources.

TECHNICAL

The bill's subdivisions were reorganized: old subdivision (c) containing program requirements became subdivision (d), a new subdivision (e) was added for the PUC evaluation, and the Energy Commission load-modifying resource evaluation moved from old subdivision (e) to new subdivision (d).

02/21/25 - Introduced → 04/10/25 - Amended Assembly · 9 edits · Apr 10, 2025

MAJOR

The amended version of AB 1260 broadens eligibility for low-income customers in the community renewable energy subscription program, adds a four-hour minimum storage requirement for solar facilities, extends the PUC's deadline to adopt or modify the program from March 1 to September 1, 2026, and imposes a new deadline on the Energy Commission to determine whether community solar and storage projects qualify as load-modifying resources. The amendment also adds a new avoided cost category tied to resource adequacy obligations and removes a prior restriction limiting financial incentives to legislatively appropriated funds.

ELIGIBILITY

The definition of 'low-income customer' was expanded from 'either of the following' to 'any of the following,' and two new qualifying programs were added: the federal Supplemental Nutrition Assistance Program (SNAP) and the Low-Income Home Energy Assistance Program (LIHEAP). A third new category was added covering occupants or owners of affordable housing units.

DEFINITION

A new definition for 'affordable housing' was added, meaning a residential dwelling unit restricted by deed or other recorded document as affordable housing for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code.

TIMELINE

The deadline for the PUC to adopt or modify the community renewable energy subscription program was extended from March 1, 2026 to September 1, 2026. The final decision deadline remains September 1, 2026.

The Energy Commission is now required to issue a determination on or before September 1, 2026 regarding whether community solar and storage projects may be counted as load-modifying resources, and must demonstrate the impact on load compared to customer generators currently treated as load modifiers.

REQUIREMENT

The energy storage requirement for solar photovoltaic facilities was strengthened from simply requiring combination with 'energy storage systems' to requiring 'energy storage systems that provide at least four hours of storage at the same capacity as the solar generator.'

The Energy Commission's written confirmation regarding the California Building Standards Code compliance pathway must now state that the program 'represents a valid alternative compliance pathway' rather than simply that it 'satisfies this paragraph.'

A new requirement was added for each community choice aggregator and electric service provider to notify the PUC within 180 days of the adoption or modification of a program whether it will participate, with the ability to begin or end participation at any time by notifying the commission.

FISCAL

A new avoided cost category was added: long-run avoided generation capacity values, applicable if the Energy Commission determines that community solar and storage projects are treated as a load-modifying resource that reduces resource adequacy obligations.

The prior restriction stating that 'Qualifying funds for financial incentives shall only be available through an appropriation by the Legislature' was removed, potentially opening the door to non-appropriated funding sources for financial incentives beyond avoided costs.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 2, 2026

Lower · Passed

From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

lower

May 23, 2025

Lower · Passed

In committee: Held under submission.

lower

May 14, 2025

Committee

In committee: Set, first hearing. Referred to APPR. suspense file.

lower

Apr 29, 2025

Committee

Re-referred to Com. on APPR.

lower

Apr 28, 2025

Lower · Passed

Read second time and amended.

lower

Apr 24, 2025

Introduced

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 1.) (April 23).

lower

Apr 21, 2025

Committee

Re-referred to Com. on U. & E.

lower

Apr 10, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.

lower

Apr 2, 2025

Lower · Passed

In committee: Hearing postponed by committee.

lower

Mar 10, 2025

Committee

Referred to Com. on U. & E.

lower

Feb 22, 2025

Lower · Passed

From printer. May be heard in committee March 24.

lower

Feb 21, 2025

Introduced

Introduced. To print.

lower

1 primary · 0 co-sponsors