AB 388 California Assembly · 2025-2026 Regular Session

Electricity.

Summary
The Public Utilities Act vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. The act defines "electrical corporation" to include every corporation or person owning, controlling, operating, or managing any electric plant for compensation within this state, except as specified. The act 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 revise the definition of "electrical corporation" to exclude a corporation or person employing certain solar or wind generating technology if electricity is transmitted exclusively and directly through private electrical lines to a single facility owned by a different corporation or person that uses the electricity only for new load, not for departing load, and for an electrolytic hydrogen production facility, as defined, or a facility using the electricity to provide industrial process heat, or both. This bill would require private electric lines located on property other than the property on which a single electrolytic hydrogen production facility or industrial process heat facility or solar or wind generating technology is located to be subject to all applicable General Orders, as determined by the commission, except as provided, and would require corporations or persons employing private electric lines that are subject to those requirements to file wildfire mitigation plans if any part of the private electric lines are located in high fire threat districts, as specified. This bill would require the commission, on or before July 1, 2027, in a new or existing proceeding, to evaluate and, if just and reasonable, establish a tariff for qualified self-generation projects with a generating capacity exceeding 80,000 kilowatts. The bill would require the commission to structure the tariff so that an electrical corporation serves as an intermediary between the electrical generation and energy storage facilities providing the electricity and the qualified self-generation project. The bill would require the commission to structure rates for qualified self-generation projects to administer the purchase and resale of the electricity from the electrical generation and energy storage facilities solely at cost, as specified. The bill would also require a customer to meet various requirements to be considered a qualified self-generation project, including, among other requirements, that the customer uses electricity from specified sources and the electricity is transmitted exclusively and directly through private electric lines to the customer's facility. The bill would require any cost associated with the tariff to be paid solely by participating customers such that nonparticipating customers bear no additional costs, and would require private electric lines located on property other than the property on which a single electrolytic hydrogen production facility or industrial process heat facility or solar or wind generating technology is located to be subject to all applicable General Orders, as determined by the commission, except as provided. The bill would also require customer load supplied to qualified self-generation projects under the tariff to be excluded for purposes of calculating procurement requirements for electrical corporations, as specified. Under existing law, a violation of the 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.
Bill status failed 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 3, 2025 Last action Feb 2, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

02/03/25 - Introduced → 03/25/25 - Amended Assembly · 8 edits · Mar 25, 2025
MODERATE
AB 388 was transformed from a simple legislative intent statement into a full regulatory framework governing large-scale solar and wind generation facilities that supply electricity via private lines to electrolytic hydrogen production or industrial process heat facilities. The amended bill redefines 'electrical corporation' to exclude qualifying solar/wind generators, creates a new CPUC tariff mechanism for projects over 80 MW, and imposes wildfire safety requirements on private electric lines crossing property boundaries.
DEFINITION

Section 218 is amended to add subdivision (f), excluding from the definition of 'electrical corporation' any entity using solar or wind technology of at least 5 megawatts (with optional on-site battery storage) that transmits electricity exclusively through private electric lines to a single facility owned by a different entity, where the electricity is used only for new load and for electrolytic hydrogen production or industrial process heat.

REQUIREMENT

New Section 740.25 requires the CPUC to establish a tariff by July 1, 2027 for qualified self-generation projects exceeding 80,000 kilowatts (80 MW). The tariff structures the electrical corporation as an intermediary between generation/storage facilities and the project, with rates set at cost plus incremental administrative or operational costs.

Both Sections 740.25 and 764.4 require corporations or persons employing private electric lines in high fire threat districts (per the CPUC fire-threat map) to file wildfire mitigation plans, consistent with Section 8386 as determined by the Office of Energy Infrastructure Safety.

ELIGIBILITY

New Section 740.25 defines 'qualified self-generation project' requiring: electricity from solar/wind generation or storage charged exclusively by solar/wind; transmission via private electric lines; customer bears infrastructure connection costs; electricity used only for new load (not departing load); and use limited to electrolytic hydrogen production or industrial process heat.

FISCAL

Section 740.25(g) requires that all costs associated with the tariff be paid solely by participating customers, so nonparticipating customers bear no additional costs.

ENFORCEMENT

New Section 764.4 requires private electric lines located on property other than where the generation or load facility is situated to be subject to all applicable CPUC General Orders, unless all property is owned by the same entity owning the load facility.

SCOPE

Section 740.25(i) excludes customer load supplied under the new tariff from procurement requirement calculations for electrical corporations, including renewable portfolio standard and other statutory procurement obligations.

The bill's scope expanded from a one-line legislative intent statement to a multi-section regulatory framework amending Section 218 and adding Sections 740.25 and 764.4 to the Public Utilities Code, with fiscal committee approval and state-mandated local program designation both changed from 'no' to 'yes.'

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
10
Key actions
4
Committee
7
Amendments
1
Feb 2, 2026
Lower · Passed
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
lower
May 23, 2025
Lower · Passed
In committee: Held under submission.
lower
May 14, 2025
Committee
In committee: Set, first hearing. Referred to suspense file.
lower
May 1, 2025
Lower · Passed
From committee: Do pass and re-refer to Com. on APPR. (Ayes 18. Noes 0.) (April 30). Re-referred to Com. on APPR.
lower
Mar 26, 2025
Committee
Re-referred to Com. on U. & E.
lower
Mar 25, 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 24, 2025
Committee
Referred to Com. on U. & E.
lower
Feb 4, 2025
Lower · Passed
From printer. May be heard in committee March 6.
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Chris Rogers
Chris Rogers
DDemocratic
CA
2