Energy: usage data.

Added amendment to Section 25402.10 of the Public Resources Code, creating a comprehensive building energy benchmarking framework including definitions, data delivery requirements, public disclosure regulations, enforcement authority, and cost recovery provisions for utilities.

Fiscal note changed: Appropriation went from 'no' to 'yes' (reflecting the new $30M appropriation), and State-mandated local program went from 'yes' to 'no.'

Added appropriation of $30 million (up from $10 million) to the Energy Commission, split into $20 million for Building and Appliances and $10 million for Research and Development, with specific allocations for benchmarking outreach/enforcement ($10M), federal IRA technical assistance and public awareness ($10M), and Equitable Building Decarbonization Program administration ($10M).

The Energy Commission's authority over benchmarking guidelines expanded from 'may adopt' to 'may adopt, amend, or rescind,' with the ability to do so at a commissioner business meeting without Administrative Procedure Act requirements.

Utilities must now maintain energy usage records for at least 12 months, deliver aggregated data within four weeks of request, and may deliver to any alternative system or tool approved by the Energy Commission (not just ENERGY STAR Portfolio Manager). Authorization can be written or secure electronic.

The original Section 399.10 was softened: the commission changed from 'shall' to 'may' evaluate performance metrics, limited to 'an existing public proceeding' (removing 'new or'), and changed from 'shall' to 'may' begin tracking metrics by January 1, 2028.

Buildings under 50,000 square feet or with 16 or fewer residential utility accounts are exempt from public disclosure requirements. Multi-building properties on single or adjacent parcels with five or more active utility accounts in aggregate can be treated as a single covered building.

Bill now takes effect immediately as a budget-related bill. The $10 million for federal IRA technical assistance must be deployed by July 1, 2025; benchmarking outreach funds by January 1, 2026. Funds available for encumbrance until June 30, 2027 and liquidation until June 30, 2031.

Added provision that the bill does not prevent cities or counties from establishing their own benchmarking programs, and added a fund transfer authority allowing money to be transferred to Item 3360-102-0001 with Department of Finance approval.

Removed Section 2, which appropriated $30,000,000 to the California Energy Commission in three parts: $10 million for outreach and enforcement of the Building Energy Benchmarking Program plus developing a strategy for using benchmarking data (building performance standards, energy audits, incentive prioritization), $10 million for a technical assistance program and public awareness campaign to help Californians access federal Inflation Reduction Act credits (HOMES, HEEHRA, Energy Efficient Home Improvement Credit, Residential Clean Energy Credit), and $10 million for administrative costs supporting the Equitable Building Decarbonization Program.

Removed Section 3, which declared the bill to be a budget-related appropriation measure taking effect immediately. Without this provision, the remaining section will take effect on the standard July 1 date rather than immediately upon the governor's signature.

The bill title was shortened from 'An act to amend Section 25402.10 of the Public Resources Code, and to amend Section 68 of Chapter 38 of the Statutes of 2023, relating to energy, and making an appropriation therefor, to take effect immediately, bill related to the budget' to simply 'An act to amend Section 25402.10 of the Public Resources Code, relating to energy.' The legislative counsel's digest was correspondingly reduced to describe only the utility data delivery change.

Entire new Section 399.10 of the Public Utilities Code was removed. This section would have authorized the PUC to evaluate performance metrics and financial performance-based incentives for electrical corporations, prioritize cost-effective solutions over ratebase investments (including time-of-use rates, virtual power plants, grid-enhancing technologies, covered conductors), study incentive mechanisms from other jurisdictions, and begin tracking metrics by January 1, 2028.

The bill title was narrowed from covering both 'electricity' and 'energy' (referencing adding Section 399.10 to the Public Utilities Code) to covering only 'energy' (amending only Section 25402.10 of the Public Resources Code).

The no-reimbursement declaration (former Section 2) was removed because it referenced the creation of a new crime or infraction tied to the PUC performance metrics section. With that section gone, there is no longer a state-mandated local program involving criminal penalties.

The appropriation vote line was corrected from 'no' to 'yes,' and the state-mandated local program designation was changed from 'yes' to 'no,' consistent with the removal of the PUC section.

Minor wording change in Section 25402.10: 'benchmarking of energy use' was changed to 'benchmarking energy use' in two places (subdivision d(2)(A) and (B)).

Added Chapter 765 designation and Governor approval date of October 13, 2025, reflecting the bill's final enactment status.

Removed Senate and Assembly passage pages, including clerk signature lines and receipt-by-Governor language, which are replaced by the standard chaptered bill format.

Section 399.10(a) changed from 'the commission shall evaluate performance metrics' to 'the commission may evaluate performance metrics,' converting a mandatory duty into discretionary authority.

Section 399.10(d) changed from 'the commission shall begin tracking one or more of the performance metrics' by January 1, 2028, to 'the commission may begin tracking,' removing the deadline as a binding obligation while retaining the date as a reference point.

Minor grammatical fix in Section 399.10(a) changing 'in a new or existing public proceeding' to 'in a new or an existing public proceeding.'

All amendments to Section 25233 of the Public Resources Code were removed, which had required expanded content in the quarterly Reliability Planning Assessment (including transmission upgrade status, PUC approvals, project queues, fossil fuel use by Water Resources facilities, and a tracking energy development dashboard).

New Section 25302.8 of the Public Resources Code was removed, which had required the Energy Commission to account for increased weather variability and heat events due to climate change in demand forecasts and wind/solar generation profiles in the integrated energy policy report.

The bill title and legislative counsel's digest were updated to remove references to energy reliability planning assessment and integrated energy policy report, reflecting the narrowed scope.

A new subdivision (c) was added to Section 399.10 requiring the commission to study incentive mechanisms it has already approved as well as those deployed by other jurisdictions, determine their effectiveness, identify unintended consequences, and use findings to inform adoption of new or continuing incentive mechanisms.

The former subdivision (c) regarding tracking performance metrics by January 1, 2028 was relettered as subdivision (d) to accommodate the new subdivision (c).

New Public Utilities Code Section 399.10 requires the PUC to evaluate performance metrics and financial performance-based incentives in new or existing proceedings to better align electrical corporation operations, expenditures, and investments with safe and reliable service while minimizing ratepayer costs.

The bill title and legislative digest are expanded to reflect the new Public Utilities Code provision relating to electrical corporations' performance metrics and incentives, in addition to the existing energy planning provisions.

The PUC must prioritize metrics that reduce utilities' preference for ratebase-adding investments. Specific considerations include: (1) supporting load growth with existing infrastructure via time-of-use rates, virtual power plants, or demand flexibility programs; (2) when expansion is unavoidable, choosing cost-effective options like grid-enhancing technologies and distribution-connected generation/storage; (3) when safety investment is needed, choosing cost-effective risk reduction such as covered conductors and fast-trip technologies as alternatives to undergrounding.

By January 1, 2028, the PUC must begin tracking one or more of the identified performance metrics and subsequently consider whether financial performance-based incentives linked to those metrics would be effective for minimizing ratepayer costs.

New Section 2 provides that no state reimbursement is required under Article XIII B of the California Constitution because any local agency costs arise only from the creation or modification of a crime or infraction.

State-mandated local program designation changed from 'no' to 'yes' (shown as 'no yes'), reflecting that the new criminal penalty provisions trigger state-mandated local program status.

Minor typo corrections in existing text: 'resource resources' corrected to 'resources' and 'Independent Systems System Operator' corrected to 'Independent System Operator.'