Energy: transmission infrastructure accelerator: financing.
What changed between versions
The bill changed from a one-line intent statement ('It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2025') to a multi-section energy bill amending Government Code and Revenue and Taxation Code provisions related to transmission infrastructure financing.
The voting requirement changed from a simple majority to two-thirds of each house due to the bill including a change that results in a taxpayer paying a higher tax. The state-mandated local program designation changed from 'no' to 'yes' due to the expanded perjury crime.
Final authority to provide financial assistance under the California Transmission Accelerator Revolving Fund Program was transferred from the Transmission Infrastructure Accelerator to I-Bank (California Infrastructure and Economic Development Bank), which must now consider credit and financial aspects before approving projects.
New Section 12100.111.5 requires developers of eligible transmission projects to certify under penalty of perjury that their prime contractor has served on at least two electrical transmission infrastructure projects in California during the prior 10 years, and requires owners to certify that contracted maintenance workers have frequently performed such work for an electrical corporation or local publicly owned electric utility during the prior 10 years.
The program sunset date was extended from January 1, 2031 to January 1, 2036. New deadlines were added: the accelerator must coordinate state activities by December 31, 2026, and must develop program guidelines by December 31, 2027.
New specific criteria for accelerator-selected transmission projects: must have at least one interconnection point within the ISO balancing authority area, applicant or affiliates must have previously completed a transmission project in California, and must support new high-voltage transmission facilities subject to ISO competitive solicitation consistent with state reliability and greenhouse gas objectives.
New criteria for project sponsors seeking financing: must have completed or been awarded a transmission project in-state or out-of-state, must reduce FERC cost recovery requests by the amount of savings from tax credits under Sections 17039 and 23036 of the Revenue and Taxation Code, must comply with Section 94510 of the Public Resources Code, and must commit to requesting a FERC revenue requirement reflecting only actual capital structure.
The California Transmission Accelerator Revolving Fund must now be separate from any other I-Bank fund or account and organized as a public enterprise fund. The limitation requiring legislative appropriation before bank fund moneys could be used for program financing was removed, making those funds continuously available.
The definition of 'eligible transmission project' for purposes of the 20% tax credit (capped at $20 million per qualified taxpayer per year) was revised to require that the project meet accelerator project criteria and comply with the new contractor certification requirements.
I-Bank board is now authorized to hold closed sessions when considering an accelerator financing plan or discussing trade secrets or confidential or proprietary information, with legislative findings supporting the limitation on public access under the Bagley-Keene Open Meeting Act.