AB 1404 California Assembly · 2025-2026 Regular Session

Electrical corporations: connections: affordable housing projects.

Summary
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires the commission to enforce the rules governing the extension of service by a gas or electrical corporation to new residential, commercial, agricultural, and industrial customers. This bill would require an electrical corporation to connect an affordable housing project, as defined, to the electrical distribution grid within 60 days, except as specified. The bill would require the commission to streamline any necessary review on an affordable housing project that is ready to connect but sitting vacant and that has not been connected by an electrical corporation within the required 60 days. The bill would delay the effective date of a rate increase approved by the commission for the greater of either the amount of time the electrical corporation took, beyond 90 days from receipt of the project building plans, to provide a final contract, or the amount of time the electrical corporation took, beyond the 60 days allowed, to connect the most recently completed affordable housing project within the electrical corporation's service area. The bill would repeal these provisions on January 1, 2029. 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 requirements would be a part of the act, and a violation of a commission action implementing the above-described provisions would be a crime, this 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.
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

02/21/25 - Introduced 04/21/25 - Amended Assembly · 4 edits · Apr 21, 2025
MODERATE
The amended version of AB 1404 adds a sunset provision that repeals the entire section on January 1, 2029, narrows the trigger for the 60-day connection deadline by requiring written notification to the utility that the project has been approved for funding, and tightens the definition of 'ready' by adding a condition that the connection must be within the utility's full discretion. A new legislative finding was also added explaining that tax credits only take effect upon occupancy, which is why utilities lack incentive to prioritize connections.
TIMELINE

A sunset provision (new subdivision (e)) was added requiring Section 783.3 to be repealed on January 1, 2029, limiting the law's lifespan to approximately three and a half years.

ELIGIBILITY

The definition of 'affordable housing project' now requires that the electrical corporation has been notified in writing by the developer that the project has been approved for funding by the California Tax Credit Allocation Committee. This means the 60-day connection clock does not start until the utility receives written notice of funding approval.

DEFINITION

The definition of 'ready' was expanded to require that the connection is the next step for affordable housing occupancy and is within the full discretion of the electrical corporation, potentially excluding situations where other parties control the next step.

SCOPE

A new finding (Section 1(d) was added explaining that tax credits from the California Tax Credit Allocation Committee only take effect when a project is occupied, providing additional context for why utilities do not prioritize connecting completed affordable housing projects.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
9
Key actions
3
Committee
5
Amendments
1
Feb 2, 2026
Lower · Passed
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
lower
Apr 23, 2025
Lower · Passed
In committee: Hearing postponed by committee.
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
Mar 13, 2025
Committee
Referred to Com. on U. & E.
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 · 1 co-sponsor

Sponsors