Energy

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 defines "disadvantaged communities" and requires the California Environmental Protection Agency to identify disadvantaged communities for investment opportunities from the Greenhouse Gas Reduction Fund and for other purposes. This bill would require the agency to do specified things regarding farmworker communities for purposes of identifying disadvantaged communities including, among other things, assessing whether designating farmworker communities as disadvantaged communities would increase those communities' access to investment opportunities and identifying potential barriers faced by low-income farmworker communities in accessing investment opportunities, as specified. The bill would require the agency to make its findings publicly available on its internet website and consider those findings when identifying disadvantaged communities. The bill would require the agency and the Office of Environmental Health Hazard Assessment to develop and implement a strategy for engaging with farmworker communities on environmental, health, and socioeconomic burdens, as provided.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law requires the commission to require electrical corporations and gas corporations to perform home weatherization services, as described, for low-income customers if the commission determines that a significant need for those services exists in the corporation's service territory, taking into consideration both the cost-effectiveness of the services and the policy of reducing the hardships facing low-income households, as specified. This bill would require the commission to take into consideration the cost-effectiveness of the services as a whole and to require electrical corporations and gas corporations, in performing those home weatherization services, to prioritize integration of health, safety, and indoor air quality improvement measures necessary to enable whole-home improvements, coordinated delivery across fuel types and housing types, conditions, and tenancy structures, and program design that allows for tenant-level benefits where upgrades occur in rental properties, while preserving flexibility in program design. The bill would authorize the commission to consider nonenergy benefits when establishing priorities for program design. The bill would require the commission to ensure that weatherization program costs do not result in undue cost burdens for ratepayers. The bill would require the commission to require electrical and gas corporations to report on measurable household affordability outcomes, as specified. The bill would require the commission to ensure meaningful public and stakeholder input on the design and implementation of these low-income programs, as provided. The bill would require the commission to ensure that diverse contracting requirements are consistent with specified plans submitted to the commission and certain guidelines. The bill would revise the definition of "weatherization" for these purposes, 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, 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.

Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations. Existing law requires the PUC, in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions to facilitate the commercialization of microgrids for distribution customers of large electrical corporations, including developing microgrid service standards necessary to meet state and local permitting requirements and developing methods to reduce barriers for microgrid deployment without shifting costs between ratepayers. This bill would require a large electrical corporation, upon request, to collaborate with local governments, tribal governments, or community choice aggregators within its service area to support resiliency planning, as provided. The bill would require large electrical corporations to provide local governments, tribal governments, and community choice aggregators with access to data, including electrical distribution equipment data, transmission and distribution circuit data, grid hardening plans, and other information as directed by the commission, to support resiliency planning by local governments and tribal governments to ensure local governments, tribal governments, and community choice aggregators are able to plan potential microgrid projects to support critical facilities. The bill would authorize the commission to require large electrical corporations to share this information in aggregated and anonymized form to protect customer privacy and electrical grid security. Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the PUC is a crime. Because the violation of a PUC action implementing the bill's requirements 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.

This measure would request that the federal Bureau of Ocean Energy Management hold public hearings in California on the proposed 2026–2031 National Outer Continental Shelf Oil and Gas Leasing Program, prepare an environmental impact statement to accompany the program, and provide the public the opportunity to comment on a draft programmatic environmental impact statement for potential offshore oil and gas leasing in California. The measure would strongly and unequivocally oppose any new offshore drilling and declare unequivocal support for the current federal prohibition on new oil or gas drilling in federal waters offshore of the Pacific coast.

Existing law, the Davis-Stirling Common Interest Development Act, defines and regulates common interest developments, which include community apartment projects, condominium projects, planned developments, and stock cooperatives. Existing law imposes various requirements regarding the installation and use of an electric vehicle (EV) charging station placed in a common area or an exclusive use common area of a common interest development, including that the owner is required to provide a certificate of insurance that names the association as an additional insured party. This bill would delete the requirement that the insurance policy name the association as an additional insured party, and would correct an erroneous cross-reference regarding the amount of that insurance.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include in its regulation of those emissions the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund. Existing law continuously appropriates 25% of the annual proceeds of the fund to the High-Speed Rail Authority for certain purposes, as specified. This bill would eliminate the continuous appropriation of 25% of the annual proceeds of the Greenhouse Gas Reduction Fund to the High-Speed Rail Authority on June 30, 2026. The bill, beginning with the 2026–27 fiscal year, and until December 31, 2030, would require 25% of the annual proceeds of the Greenhouse Gas Reduction Fund to be transferred to the Motor Vehicle Fuel Account. Existing law, the Motor Vehicle Fuel Tax Law, imposes a tax upon each gallon of motor vehicle fuel removed from a refinery or terminal rack in this state, entered into this state, or sold in this state, at a specified rate per gallon. Existing law provides that amounts received pursuant to the Motor Vehicle Fuel Tax Law are deposited into the Motor Vehicle Fuel Account in the Transportation Tax Fund. Existing law transfers the portions of those motor vehicle fuel tax revenues attributable to various off-highway uses of motor vehicle fuel to specified funds and transfers the remaining revenues to the Highway Users Tax Account for allocation to various state and local transportation purposes consistent with the expenditure restrictions imposed by Article XIX of the California Constitution on excise tax revenues from fuels used in motor vehicles on the highway. This bill, beginning July 1, 2026, and before January 1, 2031, would reduce the rate of the tax imposed upon each gallon of fuel by a specified percentage based annually on the amount transferred to the Motor Vehicle Fuel Account from the Greenhouse Gas Reduction Fund. By transferring moneys to a continuously appropriated account, this bill would make an appropriation.

Existing law requires the State Fire Marshal to encourage the adoption of fire prevention measures by means of education, engineering, and enforcement and to prepare or cause to be prepared for dissemination information relating to the subject of fire prevention and extinguishment. This bill would require the State Fire Marshal, in consultation with the Office of Emergency Services, to develop fire prevention, response, and recovery measures for utility grade lithium-ion battery storage facilities, as specified.

The California Global Warming Solutions Act of 2006 requires the State Air Resources Board to adopt regulations for greenhouse gas emissions limits and emissions reduction measures to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions in furtherance of achieving the statewide greenhouse gas emissions limit, as defined. The act authorizes the state board to revise regulations or adopt additional regulations to further the act. The act authorizes that state board to include in those regulations the use of a market-based compliance mechanism to comply with those regulations. This bill would require the state board to adopt regulations for greenhouse gas emissions limits and emissions reduction measures to achieve the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions to instead achieve certain emissions reductions goals and the purposes of the act. The bill would require the state board, in adopting regulations, to design the regulations in a manner that transitions support from gas corporations to electrical distribution utilities to minimize ratepayer impacts and meet the emissions reduction goals of the act. The bill would require the state board to consider the effects of the regulations on affordability, cost-effectiveness, minimization of leakage in California, and achieving the emissions reduction goals of the act. The bill would state the intent of the Legislature that the market-based compliance mechanism be known as the California Cap-and-Invest Program. The act, until January 1, 2031, authorizes the state board to adopt a regulation establishing a market-based compliance mechanism that is a system of market-based declining aggregate emissions limits for sources or categories of sources that emit greenhouse gases meeting certain requirements, including the establishment of a price ceiling, as provide, the allowance price containment reserve, and a requirement for state board, if the allowance from the allowance price containment reserve is exhausted, to offer covered entities additional allowances at the price ceiling if need for compliance. The act requires that moneys generated by the sale of those additional allowances be expended by the state board to achieve emissions reductions, as provided. The act, until January 1, 2031, establishes the Compliance Offsets Protocol Task Force to provide guidance to the state board in approving new offset protocols for the market-based compliance mechanism for purposes of increasing offset projects, as provided. The act, until January 1, 2031, establishes the Independent Emissions Market Advisory Committee within the California Environmental Protection Agency and requires the committee to annually report to the state board and the Joint Legislative Committee on Climate Change Policies on the environmental and economic performance of the regulation establishing the market-based compliance mechanism and other relevant climate change policies. The act, until January 1, 2031, requires the state board to designate the market-based compliance mechanism as the rule for petroleum refineries and oil and gas production facilities to achieve their greenhouse gas emissions reductions. The act provides that a violation of any rule, regulation, order, emissions limitation, emissions reduction measure, or other measure adopted by the state board under the act is a crime. Existing law requires moneys collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and continuously appropriates a portion of the moneys in the fund for various purposes. This bill would extend the above-described provisions until January 1, 2046. The bill would require the state board, in adopting those regulations, to additionally do certain things, including establish offset credit limits from January 1, 2026, to December 31, 2045, inclusive, as provided. The bill would require that moneys generated from the sale of additional allowances at the price ceiling be deposited into the California Climate Mitigation Fund, which the bill would create in the State Treasury. The bill would require moneys in the California Climate Mitigation Fund be available, upon appropriation by the Legislature, for purposes of providing direct rebates and investments to reduce household energy costs. Because a violation of the market-based compliance mechanism whose operation would be extended by the bill would be a crime, the bill would impose a state-mandated local program. By extending the operation of the market-based compliance mechanism, thereby extending the deposit of moneys from that market-based compliance mechanism into the fund, the bill would make an appropriation. This bill would specify that the members of the Independent Emissions Market Advisory Committee are to be considered designated employees of the California Environmental Protection Agency for purposes of the Political Reform Act of 1974. This bill would, if the state board initiates a regulatory process to update those regulations that is expected to be a major regulation for purposes of the Administrative Procedure Act, require the chairperson of the state board, until January 1, 2046, to present to the Joint Legislative Committee on Climate Change Policies and other relevant policy committees of the Legislature on the current state of the market-based compliance mechanism and provide the rationale for updating the regulations, as provided, and to transmit certain information to the joint legislative committee and the relevant budget subcommittees, including the economic analysis required by the Administrative Procedure Act of the proposed amendments to the regulations. The bill would require the state board and other state agencies implementing programs that are funded by the Greenhouse Gas Reduction Fund, upon request, to appear annually before the Joint Legislative Committee on Climate Change Policies and the relevant budget subcommittees to give a presentation on the expenditures of those moneys. The act requires the state board, on or before January 1, 2009, to prepare and adopt a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years. This bill would require the state board, until January 1, 2046, to include in the updates to the scoping plan the progress towards meeting certain greenhouse gas emissions reduction targets and recommendations to the Legislature on necessary statutory changes to the market-based compliance mechanism to further cost-effectively reduce emissions of greenhouse gases. Existing law authorizes the Public Utilities Commission to allocate 15% of the revenues received by electrical corporations as a result of the direct allocation of greenhouse gas allowances to electric corporations for clean energy and energy efficiency projects that are administered by the electrical corporations or a qualified third-party administrator and that are not otherwise funded by other funding sources. Existing law requires the commission to require the balance of those revenues to be credited directly to the residential, small business, and emissions-intensive, trade-exposed retail customers of the electrical corporations. Existing law requires the commission to require the adoption and implementation of a customer outreach plan for each electrical corporation for purposes of obtaining the maximum feasible public awareness of the crediting of greenhouse gas allowance revenues. This bill would require the credits provided to residential customers to be provided on the bills of those customers in no more than 4 high-billed months of each year to maximize customer electric bill affordability or as otherwise directed by the commission to address extreme, unforeseen, and temporary circumstances. The bill would instead authorize the commission to require those revenues to be credited to small businesses and emission-intensive trade-exposed retail customers of the electrical corporations. The bill would require the commission, not later than January 1, 2027, to require each electrical corporation to update its customer outreach plan, as provided. This bill would make the 15% allocation for clean energy and energy efficiency projects inoperative on July 1, 2026. The bill would require, from July 1, 2026, to January 1, 2031, inclusive, 5% of those revenues be remitted to the State Treasury for deposit into the California Transmission Accelerator Revolving Fund and be available to California Infrastructure and Economic Development Bank for purposes of the California Transmission Accelerator Revolving Fund Program. Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime. Because certain provisions of the bill would be part of the Public Utilities Act and a violation of a commission action implementing the bill's requirements would be a crime, this bill would impose a state-mandated local program. This bill would require local publicly owned electric utilities receiving a direct allocation of greenhouse gas allowances in addition to the greenhouse gas allowance totals specified in the regulations implementing the market-based compliance mechanism to provide a credit, as provided. The bill would require local publicly owned electric utilities to report to the state board on the uses of all revenues received by those utilities as a result of the direct allocation of greenhouse gas allowances under those regulations and would require the state board to annually submit a report to the Legislature on the uses of those revenues. By imposing additional 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. This bill would declare that it is to take effect immediately as an urgency statute.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include in its regulation of those emissions the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund. Existing law continuously appropriates portions of the fund for various purposes. Existing law requires the state board to implement various programs to improve air quality, including air monitoring programs, grant programs, community emissions reduction programs, programs to reduce mobile and stationary sources of criteria air pollutants or toxic air contaminants, and various incentive programs to purchase or retrofit vehicles that meet specified criteria. This bill would continuously appropriate 10% of the annual proceeds of the fund to the state board to provide funding for purposes of awarding grants, providing technical assistance, supporting community participation, and offering incentives in connection with specified programs to improve air quality, thereby making an appropriation.