AB 2396 California Assembly · 2025-2026 Regular Session

Community choice aggregators: eligible transmission projects.

Summary

Existing law authorizes a community choice aggregator to aggregate the electrical load of interested electricity consumers within its boundaries and requires a community choice aggregator to file an implementation plan with the Public Utilities Commission, to register with the commission, and to enter into an operating service agreement with an electrical corporation. Existing law requires the Energy Unit within the Governor's Office of Business and Economic Development to establish a Transmission Infrastructure Accelerator (accelerator) to develop a financing and development strategy for eligible transmission projects, as defined, to receive California Transmission Accelerator financing, and requires the accelerator to take the necessary steps to accelerate the development and deployment of those projects to maximize ratepayer savings. This bill would authorize a community choice aggregator to sponsor, develop, finance, construct, operate, lease, purchase, and own an eligible transmission project, regardless of whether the electrical transmission lines are used for the purpose of conveying electricity to the customers of the community choice aggregator. Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime. Because a violation of a commission action implementing the provisions of this bill 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.

Issues: ✓ Energy

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 20, 2026 Last action May 14, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

04/13/26 - Amended Assembly → AB2396 · 3 edits

MINOR

The bill text was refined in its legislative findings section with three minor language adjustments: a simplification of CCA resource commitment language, a broadening of the cost-reduction claim from 'per transmission line' to 'per system,' and a softening of the final finding from definitive to hedged language ('may help address'). The operative provision authorizing community choice aggregators to own eligible transmission projects (Section 366.4) is unchanged.

TECHNICAL

Section 1(f): Changed 'have committed $48,400,000,000 to build and operate new clean energy resources' to the simpler phrase 'to resource development.'

Section 1(j): Softened the final legislative finding from 'is an important step towards addressing rising electricity bills and delivering reliable and affordable electricity' to 'is an important step that may help address rising electricity bills and deliver reliable and affordable electricity,' adding hedging language.

SCOPE

Section 1(i): Changed the claimed cost reduction from '20 percent to 30 percent per transmission line' to '20 percent to 30 percent per system,' broadening the scope of the savings claim from individual lines to the entire ISO system.

02/20/26 - Introduced → 03/19/26 - Amended Assembly · 5 edits · Mar 19, 2026

MODERATE

AB 2396 was dramatically expanded from a minor technical fix to the Elections Code into a major energy policy bill that authorizes community choice aggregators (CCAs) to develop, finance, construct, and own electrical transmission lines and related infrastructure. The amendment adds extensive legislative findings justifying the change based on California's high electricity rates and an estimated $63.2 billion need for future transmission investment, and asserts that CCA participation could reduce per-line costs by 20 to 30 percent.

Scope change

The bill's scope expanded from a purely technical amendment to the Elections Code into a substantive energy policy measure granting CCAs new infrastructure ownership and financing authority under the Public Utilities Code, with implications for transmission planning, competitive solicitations, and ratepayer costs across the entire Independent System Operator grid.

SCOPE

Added a new Section 366.4 to the Public Utilities Code authorizing community choice aggregators to develop, finance, construct, operate, lease, purchase, and maintain electrical transmission lines, substations, and related facilities, regardless of whether those lines serve CCA customers or other ratepayers.

Added a limitation clarifying that the new authority does not grant CCAs any additional power to deliver electricity at retail.

DEFINITION

Added extensive legislative findings (Section 1) documenting California's high electricity rates, the $63.2 billion transmission investment need identified by the Independent System Operator, CCA financial capacity including over $25 billion in tax-exempt bonds issued, and projected cost savings of 20 to 30 percent per transmission line from CCA participation.

FISCAL

Fiscal committee review changed from 'no' to 'yes' and state-mandated local program changed from 'no' to 'yes' because violations of commission orders implementing the new provisions would constitute crimes, triggering reimbursement obligations under Article XIII B of the California Constitution.

TECHNICAL

The original nonsubstantive Elections Code change (replacing 'shall govern' with 'govern' in Section 4) was retained but renumbered as a later section in the expanded bill.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 14, 2026

Lower · Passed

In committee: Held under submission.

lower

May 6, 2026

Committee

In committee: Set, first hearing. Referred to APPR. suspense file.

lower

Apr 14, 2026

Committee

Re-referred to Com. on APPR.

lower

Apr 13, 2026

Lower · Passed

Read second time and amended.

lower

Apr 9, 2026

Introduced

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 14. Noes 0.) (April 8).

lower

Mar 23, 2026

Committee

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

lower

Mar 19, 2026

Introduced

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

lower

Mar 19, 2026

Committee

Referred to Com. on U. & E.

lower

Feb 21, 2026

Lower · Passed

From printer. May be heard in committee March 23.

lower

1 primary · 0 co-sponsors