Energy

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing boards. This bill would, until January 1, 2030, exempt a portable solar generation device, as defined, from all interconnection requirements imposed by state law, the commission, electrical corporation rules, or local publicly owned electric utility rules, as specified. The bill would, until January 1, 2030, prohibit an electrical corporation or a local publicly owned electric utility from requiring a customer using a portable solar generation device to take specified actions, including, among other things, paying any fee or charge related to the device or the electricity the device feeds into a building's electrical system. The bill would, until January 1, 2030, authorize an electrical corporation or a local publicly owned electric utility to require a customer using a portable solar generation device to notify the electrical corporation or local publicly owned electric utility, using a simple online registration form, of the address, make, model, and size of the portable solar generation device, as provided. Beginning January 1, 2030, the bill would prohibit the sale of a portable photovoltaic energy generation device that is designed to be connected to and disconnected from a building's electrical system through a receptacle and does not meet the definition of a portable solar generation device, as specified. Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime. 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. Additionally, by imposing new duties on local publicly owned electric utilities, 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 specified reasons.

Existing law requires the State Energy Resources Conservation and Development Commission to undertake various actions in furtherance of meeting the state's clean energy and pollution reduction objectives. Existing law requires the commission, beginning November 1, 2003, and biennially thereafter, to adopt an integrated energy policy report that contains an overview of major energy trends and issues facing the state, presents policy recommendations based on an in-depth and integrated analysis of the most current and pressing energy issues facing the state, and includes an assessment and forecast of system reliability and the need for resource additions, efficiency, and conservation, as specified. Existing law requires the commission, as part of the 2027 edition of the integrated energy policy report, to include an assessment of the potential for fusion energy to contribute to California's power supply, as specified. This bill would require the commission, in coordination with specified agencies, to develop a strategic plan for the development of fusion energy in California, as specified. The bill would require the commission to submit the strategic plan to the Legislature on or before December 31, 2029. This bill would require the commission, in coordination with relevant agencies and the fusion energy industry, to (1) develop a strategy for the expansion and development of fusion research and development in California, (2) develop a strategy for supporting the commercialization of fusion energy in California, (3) develop a regulatory framework for fusion energy and a roadmap for licensing and permitting for new fusion energy research and fusion energy facilities, and (4) assess the level at which fusion energy at scale would best support California's long-term renewable energy and greenhouse gas emission reduction goals. The bill would require the information described in this paragraph to be included in the strategic plan, as specified. Existing law authorizes persons proposing specified electrical generation, electrical transmission, hydrogen production, energy storage, and geothermal projects to apply, on or before June 30, 2030, to the commission to certify sites and related facilities as environmental leadership development projects, as specified. Existing law makes a site and related facility certified by the commission subject to streamlining benefits related to the California Environmental Quality Act (CEQA) with no further action by the applicant or the Governor. Under existing law, the commission's certification is in lieu of any permit, certificate, or similar document required by any governmental agency and supersedes any applicable statute, ordinance, or regulation, except as specified. This bill would expand the types of facilities eligible to be certified as environmental leadership development projects by the commission to include a discretionary project, as described, for the manufacture, production, or assembly of specialized products, components, or systems that are integral to fusion energy.

Existing law requires the Department of Toxic Substances Control to adopt regulations for the identification and management of hazardous wastes. Existing law authorizes the department to adopt regulations designating end-of-life photovoltaic modules that are identified as hazardous waste as a universal waste and subject to regulations applicable to universal waste management. Federal regulations identify solid wastes which are subject to regulation as hazardous wastes. Federal regulations exclude from the definition of solid waste for that purpose hazardous secondary material that is generated and then transferred to another person for the purpose of reclamation under specified circumstances. This bill would require the department, on or before July 1, 2028, to convene one or more public workshops for interested parties to comment on the applicability of the above-described federal regulations to hazardous waste streams, including, but not limited to, solar photovoltaic modules, generated in California. The bill would require the department, on or before July 1, 2029, to consider the feedback received and evaluate the applicability of those federal regulations to end-of-life solar photovoltaic modules as an alternative to one or more of the state standards governing hazardous waste and universal waste management. The bill would authorize the department, based on findings of the evaluation, to adopt, by regulation, the federal regulations, subject to revision as necessary, and apply them to end-of-life solar photovoltaic modules that are identified as hazardous waste under existing state law.

The California Endangered Species Act prohibits the take of an endangered, threatened, or candidate species, except as specified. Under the act, the Department of Fish and Wildlife may authorize the take of listed species by certain entities through permits or memorandums of understanding for specified purposes. The act allows take of an endangered, threatened, or candidate species by permit if, among other things, the impact of the authorized take is minimized and fully mitigated. This bill would also allow the department to authorize by permit the take of a species proposed for listing, as defined, if specified conditions are met. The bill would provide that if a species proposed for listing becomes listed as an endangered, threatened, or candidate species, further authorization or approval shall not be required for a take of that species, if specified conditions are met, including that the species proposed for listing was included as a covered species in a permit previously issued by the department for incidental take and that the incidental take is caused by a renewable electrical generation facility. The bill would require the department to, on or before January 31, 2033, compile and post a summary table on its internet website with specified information for calendar years 2027 to 2032, inclusive.

Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to prescribe, by regulation, standards for minimum levels of operating efficiency, and authorizes the Energy Commission to prescribe other cost-effective measures, to promote the use of energy- and water-efficient appliances whose use requires a significant amount of energy or water. Existing law prohibits the sale, and the offering for sale, of new appliances unless their manufacturers certify that they comply with the standards in effect at the time the appliances are manufactured. Existing law defines "sold or offered for sale in the state" to mean any sale of or offer to sell an appliance for end use in the state, regardless of the seller's physical location. This bill would expand the above-described provisions to also include the rental, importation, distribution, or lease of, or an offer for the rental, importation, distribution, or lease of, those appliances, as provided.

Existing law, the Warren-Alquist State Energy Resources Conservation and Development Act, establishes the State Energy Resources Conservation and Development Commission and prescribes the authorities, duties, and responsibilities of the commission pertaining to energy matters. This bill would require the commission, in consultation with the Governor's Office of Business and Economic Development and other relevant state agencies, to identify and designate Strategic Clean Energy and Critical Mineral Development Zones. The bill would authorize the county in which a proposed zone is located to submit a request for designation and would authorize the county board of supervisors to, by resolution, authorize the request for designation. The bill would authorize multiple counties to submit a request for designation if a proposed zone crosses the jurisdictional boundaries of the counties, as provided. The bill would require the commission to approve or deny a complete submission within 180 days. The bill would require a zone to consist only of geographic areas located within the jurisdictional boundaries of the county submitting the request for designation and would require that certain criteria be satisfied, including that the zone be in an area identified by state or federal agencies as containing significant deposits or identified production potential of critical minerals used in battery, clean energy, or advanced manufacturing supply chains, as specified. The bill would require the commission to review the designated zones at least every 5 years and authorize the commission to update the designated zones as appropriate based on changes in energy resources, infrastructure, or economic development planning. The bill would require state agencies administering programs related to economic development, advanced manufacturing, workforce development, or critical mineral supply chains to give priority consideration to projects, infrastructure investments, and technical assistance located within designated zones that support large-scale clean energy production or energy-intensive industrial development. The bill would require the Governor's Office of Business and Economic Development to consider designated zones when administering programs intended to support advanced manufacturing, clean technology industries, energy storage supply chains, and other energy-intensive industries. The bill would authorize the Governor's Office of Business and Economic Development to coordinate with the commission and other relevant state agencies to support site readiness, infrastructure development, and attracting investment within designated zones. The bill would require the Governor's Office of Business and Economic Development and state agencies administering programs related to economic development, advanced manufacturing, workforce development, or critical mineral supply chains to give priority consideration to projects that will provide for the payment of prevailing wages, the employment of apprentices from state-approved projects, and the use of a skilled and trained workforce.

Under existing law, it is the policy of the state that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035, as specified. Existing law requires the Department of Water Resources to procure eligible renewable energy resources and zero-carbon resources to satisfy those state agency obligations imposed on the State Water Resources Development System, commonly known as the State Water Project, pursuant to that policy. Existing law authorizes the department to defer, until no later than December 31, 2040, procuring zero-carbon electricity resource quantities equal to the amount of electricity provided under an existing contract to procure fossil generation entered into before January 1, 2010, if the department determines that the full achievement of the state agency obligations imposed on the State Water Project would require the early termination of the existing contract and that early termination of the existing contract would result in significant uneconomic costs. Existing law requires the department, in conducting procurement, to consider specified factors and requires that all resources procured be used first to meet the department's own electricity needs. This bill would require the department, in conducting that procurement, to also consider portfolio diversity, resource type, location, and hours of typical peak operation. The bill would expand the scope of the department's authorization to defer the procurement of those resource quantities to apply to an existing contract to procure fossil generation entered into before January 1, 2011, rather than January 1, 2010. The bill would authorize, on and after January 1, 2036, excess procurement of eligible renewable energy resources and zero-carbon resources, as defined, in one year to be applied to any subsequent year's obligation, as provided.

Existing law requires, by July 1, 2030, a water supplier, as defined, to have access to sufficient backup energy sources to operate critical fire suppression infrastructure, as defined, needed to supply water for at least 24 hours for the purpose of fire suppression in high or very high fire hazard severity zones in the County of Ventura, or to have access to alternative sources of water supplied by a different water supplier or agency that can serve this same purpose of supplying backup water to critical wells and water pumps for 24 hours, as provided. Existing law authorizes a water supplier that uses a backup energy source that is not permanent and stationary to use mobile backup energy sources or procure an energy source via an established mutual aid agreement provided that the backup energy source can provide power within 12 hours of the National Weather Service alerting the County of Ventura of a red flag warning and provide power for at least 24 hours after a loss of power and within 60 minutes of a loss of power. Existing law requires, if any fire damages and makes uninhabitable more than 10 residential dwellings within the service area of a water supplier, a report be made by the Ventura County Fire Department in cooperation with the water supplier, as specified. This bill would authorize a water supplier to use a backup energy source that is not permanent or stationary, provided that the backup energy source can, among other things, provide power within 90 minutes of a loss of power, or as soon as practically possible after deenergization. The bill would require a water supplier that uses a backup energy source that is not permanent and stationary to notify the Ventura County Office of Emergency Services as soon as practically possible, but no later than 3 business days after a loss of power, if that backup energy source does not provide power within 90 minutes of a loss of power. The bill would require a water supplier that used a backup energy source to include in the report made by the Ventura County Fire Department, in cooperation with the water supplier, whether that water supplier made a notification to the Ventura County Office of Emergency Services due to a loss of power and the amount of time critical infrastructure for that water supplier experienced a loss of power, if applicable. Existing law requires a water supplier, in coordination with the Ventura County Office of Emergency Services and the Ventura County Fire Department, to establish an emergency preparedness plan, as specified, for response to red flag warnings, extreme weather events, and other major power outages or emergencies that pose a potential threat to providing water service. This bill would require the emergency preparedness plan described above to be established by July 1, 2027. To the extent the bill would require a higher level of service by local agencies, the bill would impose a state-mandated local program. This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Ventura. 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to establish a regulatory proceeding to develop and implement a comprehensive program to achieve greater energy savings in California's existing residential and nonresidential building stock. Existing law requires the PUC to investigate the ability of electrical corporations and gas corporations to provide various energy efficiency financing options to their customers for the purpose of implementing the program developed by the Energy Commission. Existing law imposes requirements for custom projects and other custom programs for industrial, agricultural, commercial, residential, and public sector customers. Existing law requires the PUC to develop and maintain rules for custom energy efficiency projects that include eligibility criteria or metrics for determining if a project is eligible for funding. This bill would delete the requirement on the PUC to develop and maintain those rules, and would instead require the commission, as part of the approval of the next Tier 2 advice letters submitted after January 1, 2027, by program administrators for mid-cycle review pursuant to a specific commission decision, to revise the rules adopted for custom agricultural and industrial efficiency projects to replace the commission's ex ante review process with a process that ensures the provision of incentives pursuant to these provisions for custom agricultural and industrial efficiency projects, as specified. Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the PUC is a crime. Because a violation of a PUC action implementing this 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.

Existing law authorizes the Geologic Energy Management Division in the Department of Conservation to require an operator of an oil and gas well to provide, in addition to specified types of required indemnity bonds, an additional amount of security acceptable to the division based on the division's evaluation of the risk that the operator will desert its well or wells and the potential threats the operator's well or wells pose to life, health, property, and natural resources, as provided. Existing law requires the division to consider specified factors in evaluating the risks that the operator will desert its well or wells and the potential threats the operator's well or wells pose to life, health, property, and natural resources. Existing law prohibits this additional security from exceeding the lesser of the division's estimation of the reasonable costs of properly plugging and abandoning all of the operator's wells and decommissioning any attendant production facilities, or $30,000,000. A person who violates or fails to comply with this provision, or any related law concerning oil and gas, is guilty of a crime. This bill would instead prohibit this additional security from exceeding the lesser of the division's estimation of the reasonable costs of properly plugging and abandoning all of the operator's wells and decommissioning any attendant production facilities, or a maximum amount of additional security based on the total number of active and idle wells under the control of the operator pursuant to a specified schedule, as provided. The bill would prohibit the division from increasing the amount of additional security required of an operator that had an additional security agreement approved by the division as of January 1, 2027, until 3 years after the effective date of the agreement, as provided. The bill would explicitly extend these additional security requirements to a person who acquires the right to operate or control a well or production facility, as provided. The bill would establish that compliance with these additional security requirements by either the operator of record or the person who acquires the right to operate or control a well or production facility constitutes compliance for both parties, and would prohibit the division from requiring duplicative security, as provided. Existing law authorizes the above-described additional amount of security to be an indemnity bond, specified forms of deposit, or any other means of equally effective financial assurance approved by the division, including a demonstration of self-insurance pursuant to a specified process. This bill would, as a condition of obtaining division approval of self-insurance or a corporate guarantee, require an additional security agreement between the operator and the division that includes, among other things, an enforceable schedule for the plugging and abandonment of wells and decommissioning of production facilities consistent with an operator's idle well management plan, as provided. The bill would also require the operator, as part of that additional security agreement, to immediately notify the division if the operator is unable to satisfy the financial criteria, and would make a failure to make this notification a violation subject to civil and criminal penalties, as provided. By expanding the scope of a crime, the bill would impose a state-mandated local program. The bill would also require the division to reevaluate whether self-insurance or a corporate guarantee continues to constitute an equally effective means of financial assurance at least once every 3 years, or upon a material change in the financial condition of the operator or guarantor entity, whichever occurs first. The bill would require an operator approved for self-insurance or a corporate guarantee who the supervisor subsequently determines to be out of compliance with an approved idle well management plan, or specified operators out of compliance with idle well fee requirements, to provide other financial assurance within 90 days of that determination, as provided. Existing law also requires a person who acquires the right to operate a well or production facility to file with the State Oil and Gas Supervisor an individual indemnity bond or a blanket indemnity bond in an amount determined by the supervisor to be sufficient to cover, in full, all costs of plugging and abandonment, decommissioning the facility, and site restoration, as provided. Under existing law, an operator may, in lieu of this bonding requirement and with the written approval of the supervisor, provide the required security through an equally effective means of financial assurance, including specified types of deposits, an irrevocable letter of credit, or a fully funded trust fund, and excluding self-insurance or corporate guarantees, as provided. This bill would repeal the exclusion of self-insurance or corporate guarantee, as described above. The bill would additionally authorize an operator to, in lieu of the bonding requirement and with the written approval of the supervisor, provide the required security through specified means of financial assurance, including pursuant to the above-described process for obtaining division approval for self-insurance or a corporate guarantee applicable to existing operators, as provided. Existing law authorizes the supervisor or a district deputy to order the plugging and abandonment of a well or the decommissioning of a production facility that has been deserted. If the supervisor determines that the current operator, as determined by the records of the supervisor, does not have the financial resources to fully cover that cost of plugging and abandonment of the well or the decommissioning of a production facility that has been deserted, existing law makes immediately preceding operators responsible for that cost. Existing law authorizes the supervisor to continue to look seriatim to previous operators until an operator is found with sufficient financial resources to cover the cost, except as provided. This bill would exempt from the above-described requirement to file with the supervisor, upon acquiring the right to operate a well or production facility, an individual indemnity bond or a blanket indemnity bond sufficient to cover all costs of plugging and abandonment, decommissioning the facility, and site restoration, (1) an operator, or a person who acquires the right to operate or control a well or production facility, who has complied with an idle well management plan or fee schedule, and specified reporting requirements, as provided, if the operator of record has obtained and maintained additional security approved by the division, as provided, and (2) a person who has acquired the rights to a well or production facility for the sole purpose of plugging and abandoning that well or decommissioning the production facility for purposes of redevelopment, as defined, or to satisfy the above-described obligations of previous operators, as provided. The bill would explicitly state that a person who has acquired the rights to a well or production facility for the sole purpose of plugging and abandoning that well or decommissioning the production facility for the purposes of redevelopment or to satisfy the obligations of previous operators is subject to the state oil and gas laws as an operator, until a determination by the supervisor that the well has been properly plugged and abandoned or the production facilities have been decommissioned, or that additional work related to abandoning the well is not practical or would pose greater environmental or safety risk, as provided. Upon this determination by the supervisor, the bill would require the supervisor to release the bond, and would release the acquiring person from any further obligation or liability for the well or facility. The bill would require a person who, before an acquisition for the sole purpose of plugging and abandoning the well or decommissioning the production facility, was responsible as an owner or operator of the well or production facility and subject to orders related to remediation issued by the supervisor to remain responsible for the well or production facility and any unfunded costs associated with plugging and abandonment of the well or decommissioning of the facility, as provided. The bill would prohibit the use of a well or production facility acquired for the sole purpose of plugging and abandoning the well or decommissioning the production facility from being used for oil or gas production, injection, gas storage, or any associated operation. By creating a new crime, the bill would impose a state-mandated local program. This bill would require a person acquiring the rights to a well or production facility for the sole purpose of plugging and abandoning that well or decommissioning the production facility for the purpose of redevelopment, before completing the acquisition, to submit to the supervisor a declaration, under penalty of perjury, that the acquisition is for the sole purpose of plugging and abandoning the well or decommissioning the production facility for the purpose of redevelopment, a description of the redevelopment plan, and a plugging and abandoning work plan, as provided. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would require an acquiring person who submits the declaration to commence plugging and abandonment or decommissioning operations within 24 months of the date of acquisition, and would authorize the supervisor to grant a 12-month extension, as provided. The bill would require the supervisor to require an acquiring person who fails to commence operations within this time period to file financial assurance, as provided. The bill would require a person acquiring the rights to a well or production facility pursuant to these provisions to provide annual updates on the plugging and abandonment work plan. If the supervisor determines that the acquiring person is not capable of plugging the wells within these timeframes, the bill would require the acquiring person to post specified financial assurance and would require the supervisor to notify the previous operator who is responsible for the plugging and abandonment. The bill would establish that no more than 100 wells or associated production facilities may be included, on an annual basis, in this alternative financial security program, as provided. This bill would, on and after January 1, 2028, and quarterly thereafter, require the division to post on its internet website specified information related to well transfers, wells and production facilities acquired for the sole purpose of plugging and abandoning or decommissioning, and a description of wells located in or within one mile of a disadvantaged community. The bill would require the supervisor and Director of Conservation to annually attend specified legislative hearings to report on well transfer activity, implementation and status of financial assurance for indemnification, and the above-described provisions related to redevelopment of oil and gas wells, and would require the division, on or before January 1, 2032, to prepare and submit a related report to the relevant legislative policy and budget committees in both houses of the Legislature, as provided. 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 the operation of its provisions contingent upon the enactment of AB 2461 of the 2025–26 Regular Session.