AB 1347 California Assembly · 2025-2026 Regular Session

Electrical modernization zones.

Summary

Existing law provides that it is the policy of the state that each electrical corporation upgrade the state's electrical distribution systems as needed. Existing law requires the Public Utilities Commission (PUC) , in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission) and the Independent System Operator (ISO) , to take specified actions to facilitate the commercialization of microgrids for distribution customers of large electrical corporations. This bill would require the Governor's Office of Business and Economic Development, in conjunction with the ISO, to identify six electrical infrastructure modernization zones, as provided. The bill would require the PUC and the Energy Commission to recognize these zones as load growth priority areas. The bill would authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to work with the local jurisdiction to update its electrical load projections. The bill would require the PUC to authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to expedite cost recovery and to manage microgrids, as specified. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime. Because the provisions of this bill would be a part of the act, and because a violation of a PUC action implementing its 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. This bill would make legislative findings and declarations as to the necessity of a special statute for the unincorporated area known as Altadena in the County of Los Angeles.

Issues: ✓ Energy

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 · 2 comparisons

What changed between versions

03/28/25 - Amended Assembly → AB1347 · 1 edit

MINOR

No substantive policy changes were made between these two versions. The differences are entirely presentational: the first version uses a traditional legislative document format with line numbers and page headers, while the second is a web page rendering of the same bill text from the California Legislature website, adding navigation menus, search boxes, and other site UI elements around the identical bill content.

TECHNICAL

The bill text was reformatted from a traditional legislative document layout (with line numbers, page breaks, and headers like 'AB 1347 -2-') into a web page display format that includes website navigation elements such as skip-to-content links, search boxes, bill tracking options, and share buttons. The underlying policy language is unchanged.

02/21/25 - Introduced → 03/28/25 - Amended Assembly · 10 edits · Mar 28, 2025

MAJOR

AB 1347 was transformed from a purely aspirational bill (stating legislative intent to create electric modernization zones in future legislation) into operative law that actually creates those zones now. The amendment adds Section 933.1 to the Public Utilities Code, requiring the Governor's Office of Business and Economic Development to identify six electrical infrastructure modernization zones, mandating that two specific areas (the high desert and Altadena) be included, and authorizing utilities in those zones to expedite cost recovery and manage microgrids.

SCOPE

Added Section 933.1 to the Public Utilities Code, converting the bill from a statement of legislative intent into enforceable law with specific requirements for identifying and operating electrical infrastructure modernization zones.

Mandates that two of the six zones must include the high desert area (as defined by OBED and ISO) and the unincorporated area known as Altadena in Los Angeles County.

Added a special statute finding (Section 4) declaring that a general statute cannot apply to the unincorporated area known as Altadena in Los Angeles County due to its unique demand for operational electrical infrastructure, justifying targeted treatment under the state constitution.

REQUIREMENT

Requires the Governor's Office of Business and Economic Development, in conjunction with the ISO, to identify exactly six electrical infrastructure modernization zones based on four minimum indicators: economic development need, lack of infrastructure or delays, projected load growth, and minimum impact on ratepayers.

Requires the PUC and Energy Commission to recognize the identified zones as load growth priority areas.

Authorizes electrical corporations in modernization zones to manage microgrids upon local jurisdiction approval. If a microgrid is not interconnected to the grid, the corporation may collect a fixed charge. If the corporation cannot manage the microgrid, customers may contract with a third-party microgrid provider for up to 10 years with a one-time 10-year renewal.

ELIGIBILITY

Authorizes electrical corporations serving customers within a modernization zone to work with local jurisdictions to update their electrical load projections.

FISCAL

Requires the PUC to authorize electrical corporations in modernization zones to expedite cost recovery under Section 937(a), allowing faster recovery of infrastructure investment costs from ratepayers.

DEFINITION

Added legislative findings (new Section 1) declaring that the state faces unprecedented load growth, that many jurisdictions still face energy constraints despite the 2023 Powering Up Californians Act, and that delays in electricity service are costly to local cities with millions in lost revenue.

ENFORCEMENT

Fiscal committee review and state-mandated local program designation both changed from 'no' to 'yes,' reflecting that the bill now creates enforceable PUC requirements whose violation constitutes a crime, triggering constitutional reimbursement analysis (though no reimbursement is ultimately required).

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

Apr 30, 2025

Lower · Passed

In committee: Set, first hearing. Hearing canceled at the request of author.

lower

Apr 23, 2025

Lower · Passed

In committee: Hearing postponed by committee.

lower

Apr 22, 2025

Lower · Passed

From committee: Do pass and re-refer to Com. on U. & E. (Ayes 7. Noes 0.) (April 22). Re-referred to Com. on U. & E.

lower

Apr 7, 2025

Committee

Re-referred to Coms. on E.D., G., & H.I. and U. & E. pursuant to Assembly Rule 96.

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 E.D., G., & H.I.

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