Clean energy development incentive rate tariff.

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, on or before July 1, 2026, in a new or existing proceeding, to evaluate and, if just and reasonable, establish a clean energy development incentive rate time-of-use tariff to encourage the development of new commercial or industrial electrical loads that contribute to the state's efforts to reduce the emissions of greenhouse gases. The bill would require the tariff to offer lower rates for customers and to meet specified requirements, including, among other things, that the program only be open to new electrical customers that did not establish service before January 1, 2025, or to existing electrical customers that are expected to increase their total annual electrical demand by more than 50% after beginning service under the tariff. The bill would require that the tariff only be open to customers producing hydrogen using an electrolysis of water or using electricity to provide industrial process heat. The bill would require the tariff to be available to bundled customers of electrical corporations until the tariff meets a statewide limitation of 5,000 megawatts of customer participation. 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 provisions of this bill would be a part of the act and because a violation of a commission action implementing the 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.