AB 1342 California Assembly · 2025-2026 Regular Session

Public Utilities Commission: energy efficiency programs: report.

Summary

Existing law requires the Public Utilities Commission, on or before December 31, 2018, and biennially thereafter, as part of a specified report, to identify and report to the Legislature on electrical and gas corporation ratepayer-funded energy efficiency programs that are similar to programs administered by the State Energy Resources Conservation and Development Commission, the State Air Resources Board, and the California Alternative Energy and Advanced Transportation Financing Authority. This bill would instead require the commission to identify and report to the Legislature on those programs on an annual basis.

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

03/28/25 - Amended Assembly → 04/21/25 - Amended Assembly · 3 edits · Apr 21, 2025

MINOR

AB 1342 was expanded to include a new provision requiring the Public Utilities Commission to report annually (rather than biennially) to the Legislature on energy efficiency programs funded by ratepayers that overlap with state agency programs. The bill also dropped a prior section expressing legislative intent to enact future legislation reforming residential electricity rate regulation. These changes broaden the bill's scope from purely climate credit distribution to also covering PUC reporting obligations.

Scope change

The bill's scope expanded from solely addressing electric California Climate Credit distribution (timing and geographic allocation) to also include a requirement for annual PUC reporting on overlapping energy efficiency programs. The removal of the legislative intent statement about future rate reform narrows the bill's aspirational goals while the new reporting provision adds a concrete oversight obligation.

REQUIREMENT

New Section 1 amends Public Utilities Code Section 913.9 to require the Public Utilities Commission to report annually (changed from biennially) to the Legislature on electrical and gas corporation ratepayer-funded energy efficiency programs that are similar to programs administered by the Energy Commission, Air Resources Board, and California Alternative Energy and Advanced Transportation Financing Authority.

SCOPE

Removed a section that declared it was the intent of the Legislature to enact subsequent legislation to establish policies to reform the regulation of electricity rates for residential customers. This was a non-binding statement of legislative intent with no direct operational effect, but its removal signals a shift in the bill's focus away from broader rate reform.

TECHNICAL

Fiscal committee designation changed from 'no' to 'yes' and state-mandated local program designation changed from 'no' to 'yes', reflecting the expanded scope of the bill now covering PUC reporting requirements in addition to climate credit provisions.

02/21/25 - Introduced → 03/28/25 - Amended Assembly · 7 edits · Mar 28, 2025

MODERATE

AB 1342 was substantially expanded from a one-line intent declaration into a specific amendment of Public Utilities Code Section 748.5 governing electric California Climate Credits. The amended bill requires that climate credit revenues be applied to customer bills during the summer months (June through September) and directs the commission to allocate a larger share of those credits to residential customers in hotter regions if a related health and safety provision is extended beyond 2031. It also codifies an existing 15 percent carve-out for clean energy projects and adds a no-reimbursement clause.

REQUIREMENT

Requires that electric California Climate Credit revenues be credited to residential, small business, and emissions-intensive trade-exposed retail customers specifically in the months of June, July, August, and September rather than being spread across the year.

Requires the commission to mandate a customer outreach plan for each electrical corporation to maximize public awareness of greenhouse gas allowance revenue credits, with costs recoverable in rates.

SCOPE

If Section 38562 of the Health and Safety Code is extended beyond January 1, 2031, the commission must ensure a larger portion of climate credit revenues is allocated to residential customers living in hotter regions of the state.

The bill now amends an existing statute (Section 748.5, Public Utilities Code) rather than standing alone as a declaration of legislative intent. The original intent language is retained but renumbered as Section 3.

FISCAL

Allows the commission to allocate up to 15 percent of climate credit revenues for clean energy and energy efficiency projects administered by the electrical corporation or a qualified third-party administrator, provided they are not otherwise funded.

Fiscal committee review changed from 'no' to 'yes' and state-mandated local program changed from 'no' to 'yes', reflecting the bill's new substantive regulatory requirements.

TECHNICAL

Adds a no-reimbursement provision stating that no state reimbursement is required under Article XIII B of the California Constitution because any local costs arise only from changes to crime definitions or penalties.

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 14, 2025

Lower · Passed

In committee: Hearing postponed by committee.

lower

May 1, 2025

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 18. Noes 0.) (April 30). Re-referred to Com. on APPR.

lower

Apr 22, 2025

Committee

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

lower

Apr 21, 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 1, 2025

Committee

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

lower

Mar 28, 2025

Introduced

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

lower

Mar 28, 2025

Committee

Referred to Coms. on U. & E. and NAT. RES.

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