Energy

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. This bill would prohibit an electrical corporation from proposing a rate increase above the rate of inflation, as defined, as a systemwide average for any general rate case cycle, except the bill would expressly authorize the commission to approve a rate increase above the rate of inflation if the commission determines that the costs underlying the rate increase are directly related to safety enhancements and modernization or to higher commodity or fuel costs. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the above prohibition would be a part of the act, and because a violation of a commission action implementing the above prohibition 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.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. This bill would require the commission to generate a report outlining recommendations to decrease the kilowatt-per-hour rate for electricity charged to ratepayers by not less than 30% by January 1, 2027. The bill would require the commission, in making those reduction recommendations, to take certain actions, as specified.

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.

Existing law vests the state board with the authority to regulate transportation fuels and requires the state board to adopt standards and regulations providing for specification for vehicular fuel composition to achieve the maximum degree of emission reduction possible from vehicular sources to attain the state air quality standards. This bill would require the state board, on a quarterly basis, to submit to the relevant policy committees of the Legislature a report providing data and describing the impacts of its regulations of transportation fuels on the prices of those fuel to California consumers.

Existing law establishes a state policy that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035, as provided. Existing law requires the Public Utilities Commission (PUC) , State Energy Resources Conservation and Development Commission (Energy Commission) , and State Air Resources Board to issue a joint report to the Legislature by January 1, 2021, and every 4 years thereafter, that includes specified information relating to the implementation of that state policy. Existing law requires the PUC and the Energy Commission to undertake various actions in furtherance of meeting the state's clean energy and pollution reduction objectives. This bill would require the Energy Commission, in coordination with specified agencies, to develop a strategic plan for new in-state geothermal energy in California, as specified. The bill would require the Energy Commission to submit the strategic plan to the Natural Resources Agency and the Legislature on or before June 30, 2027. The bill would require the Energy Commission, in coordination with specified agencies, to work with stakeholders, other relevant federal, state, and local agencies, interested Native American tribes, California load-serving entities, and the geothermal energy industry to identify suitable and recommended locations for the development of new in-state geothermal energy, to establish state lands leasing goals for new in-state geothermal energy development for 2035 and 2045, as specified, and to identify opportunities to work with federal agencies on the timing, scope, and prioritization of geothermal lease sales to support geothermal development on federal lands within California, as specified. The bill would require the Energy Commission, in consultation with the PUC and the Independent System Operator (ISO) , to assess the transmission investments and upgrades necessary to support new in-state geothermal energy. The bill would require the PUC to designate new in-state geothermal energy as a long lead-time resource in its recurring input to the ISO's system need scoring for the interconnection and transmission planning process. The bill would require the Energy Commission, in coordination with specified entities, to develop and produce a permitting roadmap that describes timeframes and milestones for a coordinated, comprehensive, and efficient permitting process for new in-state geothermal energy exploration and field development and associated electricity and transmission infrastructure, as provided. The bill would require the Energy Commission, in coordination with the State Lands Commission, the Department of Conservation, and the Governor's Office of Business and Economic Development, to assess the level at which new and existing geothermal rentals and royalties would best support California's long-term renewable energy and greenhouse gas emissions reduction goals while maintaining competitiveness with rentals and rates on federal lands and in other states, as provided. The bill would require the information described in this paragraph, an assessment of known impacts to Native American and Indigenous peoples and biological resources, and strategies for addressing those impacts, and an assessment, led by the Geologic Energy Management Division, using the best available data, of the in-state geothermal resource potential, to be included in the strategic plan, as specified.

(1) Existing law establishes the State Energy Resources Conservation and Development Commission and prescribes the authorities, duties, and responsibilities of the commission pertaining to energy matters. Existing law requires the commission, on or before January 1, 2019, in consultation with the Contractors State License Board, local building officials, and other stakeholders, to approve a plan that promotes compliance with specified regulations relating to building energy efficiency standards in the installation of central air-conditioning and heat pumps, as specified. Existing law authorizes the commission to adopt regulations to increase compliance with permitting and inspection requirements for central air-conditioning and heat pumps, and associated sales and installations, consistent with the above-described plan. The bill would require a city, county, or city and county to adopt and offer asynchronous inspections for installations of residential heat pump water heater or heat pump HVAC systems, as defined, that do not require a licensed contractor and building inspector to be simultaneously present during the inspection. The bill would authorize a building inspector to contact the licensed contractor who performed the installation by telephone call or real-time video conferencing during their inspection, and, if the building inspector determines during an asynchronous inspection that there is an issue with an installation of the heat pump water heater or heat pump HVAC system and that the licensed contractor who performed the installation must be present to perform tests or cure the installation, to require the licensed contractor who performed the installation to schedule an additional inspection in which the building inspector and the licensed contractor who performed the installation are required to be simultaneously present during the additional inspection. The bill would specify that these provisions do not require a local entity described above to discontinue offering inspections for the installation of a residential heat pump water heater or heat pump HVAC system that require a building inspector and licensed contractor to be simultaneously present. The bill would authorize a city, county, or city and county, except as specified, to issue up to one nondiscretionary permit per installation of a residential heat pump water heater or heat pump HVAC system in which the local entity administratively approves an application to install the residential heat pump water heater or heat pump HVAC system. The bill would authorize a city, county, or city and county to apply only certain additional building, planning or zoning, or workforce labor standards on the installation of a residential heat pump water heater or residential heat pump HVAC system, including additional standards that conform to local laws, including reach codes, designed to encourage the adoption of zero-emission equipment or improvement of building efficiency. The bill would prohibit a local entity described above from requiring a permit or inspection for plug-in ready window air-conditioner or window heat pump HVAC systems, provided that certain requirements are met, including that the appliance has a voltage rating of 120 volts or less and the appliance is a self-contained unit. The bill would require the commission, on or before July 1, 2026, to develop standardized permitting checklists, as prescribed, for local governments to use in the permitting process for installations of residential heat pump water heater or heat pump HVAC systems, as specified, subject to certain requirements, including that the standardized permitting checklists do not exceed 2 pages in length. The bill would require a city, county, or city and county, on or before July 1, 2027, to implement an online automated permitting process that verifies code compliance and issues permits in real time within the same day of the application being submitted to a licensed contractor for the installation of a residential heat pump water heater or residential heat pump HVAC system. The bill would require a permit to be issued pursuant to the automated permitting process, upon discretion of the administering jurisdiction, if the installation complies with the checklist requirements. The bill would require the local entity to publish and make publicly available, among other things, checklists on their internet website. The bill would require the local entity to allow an applicant to, among other things, submit an automated permit application and associated documentation electronically. The bill would, upon confirmation by the local entity that the application and supporting documents are complete and meet the checklist requirements, require the local entity to approve the application and issue all required permits or authorizations. The bill would, upon receipt of an incomplete application, require the local entity to issue a written correction notice, as specified. The bill would exempt from these requirements a city with a population of fewer than 5,000 persons or a county with a population of fewer than 150,000 persons, as specified. The bill would, except as provided, prohibit a city, county, or city and county from charging a permit fee for a residential heat pump water heater and heat pump HVAC system that exceeds the estimated reasonable cost of providing the service for which the fee is charged, subject to specified requirements, including that the permit fee for a residential heat pump water heater system does not exceed $50. The bill would, notwithstanding that provision, authorize a local entity described above to charge a permit fee for the installation of a residential heat pump water heater or heat pump HVAC system that exceeds the above-described fee limit, as specified, if the local entity, as part of a written finding and an adopted resolution or ordinance, provides substantial evidence of the reasonable cost to issue the permit, and would prohibit a local entity described above from applying additional charges above the advertised fee schedule. The bill would include findings and declarations related to these provisions. (2) Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments. Among other things, the act makes a provision of the governing documents, as defined, or architectural or landscaping guidelines or policies void and unenforceable if, among other things, the provision prohibits, or includes conditions that have the effect of prohibiting, the use of low water-using plants as a group or as a replacement of existing turf. This bill would additionally make any provision of the governing documents, architectural guidelines, or policies void and unenforceable if the provision prevents the replacement of a fuel-gas-burning appliance with an electric appliance. The bill would also make any covenant, restriction, or condition contained in any, among other specified agreements, deed, and any provision of a governing document, that effectively prohibits or restricts the installation or use of a residential heat pump water heater or heat pump HVAC system, void and unenforceable. (3) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (4) 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Senate Resolution 36 is a symbolic resolution affirming California's commitment to the Paris Agreement on climate change. It does not create new laws or funding but formally expresses the state's dedication to achieving net-zero carbon emissions and upholding the Paris Accords' goals. The resolution highlights California's existing climate policies, including emission reduction targets (50-52% below 2005 levels by 2030) and clean energy initiatives, and directs the resolution to be sent to state and federal climate officials. It has no direct impact on residents or businesses, as it serves only to reaffirm existing policy priorities.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to adopt rules and regulations to achieve the maximum technologically feasible and cost-effective greenhouse gas emissions reductions to ensure that the statewide greenhouse gas emissions are reduced to at least 40% below the statewide greenhouse gas emissions limit, as defined, no later than December 31, 2030. Pursuant to the act, the state board has adopted the Low-Carbon Fuel Standard regulations. This bill would void specified amendments to the Low-Carbon Fuel Standard regulations adopted by the state board on November 8, 2024, or as subsequently adopted, as specified. This bill would declare that it is to take effect immediately as an urgency statute.

Existing law requires the Superintendent of Public Instruction, the Controller, and the Director of Finance to develop and update as necessary, standards and criteria to be reviewed and adopted by the State Board of Education and to be used by local educational agencies in the development of annual budgets and the management of subsequent expenditures from that budget, as specified. Existing law requires these standards and criteria to include, among other things, multiyear commitments, including cost-of-living adjustments. This bill would specify that the multiyear commitments are for only the current fiscal year and the subsequent fiscal year. The bill would require the state board, on or before March 1, 2027, to amend specified related regulations, as provided, and would require the State Department of Education to modify the Standardized Account Code Structure reporting software infrastructure to eliminate reporting fields for a 2nd subsequent fiscal year and, commencing with the 2027–28 fiscal year, ensure that the system reflects a 2-year operational and forecasting structure. Existing law requires the governing board of a school district and each county board of education, on or before July 1 of each year, to adopt a budget, as specified, and requires that budget to be filed with the county superintendent of schools or the Superintendent, respectively. Existing law requires the county superintendent of schools or the Superintendent, as applicable, to, among other things, examine the adopted budget to determine whether it complies with the standards and criteria adopted by the state board for local educational agency budgets and determine whether the adopted budget (1) will allow the school district or county office of education to meet its financial obligations during the fiscal year and (2) is consistent with a financial plan that will enable the school district or county office of education to satisfy its multiyear financial commitments. Existing law requires the governing board of each school district and each county superintendent of schools to certify whether the school district or county office of education is able to meet its financial obligations for the remainder of the fiscal year and for the subsequent 2 fiscal years. Existing law requires (1) a negative certification to be assigned to any school district or county office of education that will be unable to meet its financial obligations for the remainder of the fiscal year or the subsequent fiscal year, (2) a qualified certification to be assigned to the school district or county office of education that may not meet its financial obligations for the current fiscal year or 2 subsequent fiscal years, and (3) a positive certification to be assigned to a school district or county office of education that will meet its financial obligations for the current fiscal year and subsequent 2 fiscal years. Existing law requires a copy of the school district's or county superintendent's certification to be filed with the county superintendent of schools or the Superintendent, respectively. The bill would instead only require certification for the current fiscal year and the subsequent fiscal year, and would require determinations for qualified and positive certifications to instead be assigned based only on the current fiscal year and the subsequent fiscal year. The bill would also make conforming changes to related provisions.

This measure would urge President Donald J. Trump and Congress to protect and maintain the historic investments made possible by the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act of 2022.