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<ns0:Id>20250AB__181398AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-10</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-19</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Ward</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Ward</ns0:Name>
</ns0:Legislator>
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<ns0:Title> An act to amend Sections 769.3 and 913.15 of the Public Utilities Code, relating to electricity.</ns0:Title>
<ns0:RelatingClause>electricity</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Public Utilities Commission: customer renewable energy subscription programs.</ns0:Subject>
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<html:p>Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires the commission, on or before March 31, 2024, to evaluate each customer renewable energy subscription program to determine if the program meets specified goals and to determine whether it would be beneficial to ratepayers to establish a new tariff or program for an electrical corporation, or modify an existing tariff or program administered by an electrical corporation, to establish a community renewable energy program, as provided. If the commission determines that it would be beneficial to ratepayers to establish the community renewable energy program, existing law requires the commission, on or before July 1, 2024, to establish the program and
require each electrical corporation to participate in the program. Existing law requires each community choice aggregator and electric service provider, if the commission establishes the program, to notify the commission whether it will participate in the program within 180 days of the establishment of the program. Existing law requires the commission, on or before March 31, 2024, to report to the Legislature on its actions taken pursuant to these requirements and its justification for terminating, modifying, or retaining each customer renewable energy subscription program.</html:p>
<html:p>This bill would instead require the commission to evaluate those programs on or before March 31, 2027, and to establish the community renewable energy program, if applicable, on or before July 1, 2027. The bill would require each community choice aggregator and electric service provider to
notify the commission whether it will participate in the program within 190 days, rather than 180 days, of the establishment of the program. The bill would instead require the commission to report that information to the Legislature on or before March 31, 2027.</html:p>
<html:p>Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.</html:p>
<html:p>Because a violation of a commission action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 769.3 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Num>769.3.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
For purposes of this section, the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Community choice aggregator” has the same meaning as defined in Section 331.1.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Customer renewable energy subscription program” does not include the net energy metering program specified in Sections 2827 and 2827.1 or the Multifamily Affordable Housing Solar Roofs Program established pursuant to Chapter 9.5 (commencing with Section 2870) of Part 2. “Customer renewable energy subscription program” includes an alternative designed for growth among residential customers in disadvantaged communities pursuant to paragraph (1) of subdivision (b) of Section 2827.1.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Low-income customer” means either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
An individual or household who qualifies for one or more of the following programs:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The California Alternate Rates for Energy (CARE) program described in Section 739.1.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The Family Electric Rate Assistance (FERA) program described in Section 739.12.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The CalFresh program established pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The federal Supplemental Nutrition Assistance Program (SNAP) (Chapter 51 (commencing with Section 2011) of Title 7 of the United States Code).
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
The Low-Income Home Energy Assistance Program (LIHEAP) (42 U.S.C. Sec. 8621).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
An individual or household who resides within an underserved community.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Underserved community” includes each of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A “low-income community” as defined in Section 39713 of the Health and Safety Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A community within an area identified as among the 25 percent most disadvantaged areas in the state according to the California Environmental Protection Agency and based on the most recent California Communities Environmental
Health Screening Tool, also known as CalEnviroScreen, that is used to identify disadvantaged communities pursuant to Section 39711 of the Health and Safety Code.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A community located on lands belonging to a California Native American tribe, as defined in Section 21073 of the Public Resources Code.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
On or before March 31, 2027, the commission shall, in a new or existing proceeding, do both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Evaluate each customer renewable energy subscription program, including the Green Tariff Shared Renewables Program (Chapter 7.6 (commencing with Section 2831) of Part 2) and any
program established as an alternative designed for growth among residential customers in disadvantaged communities pursuant to paragraph (1) of subdivision (b) of Section 2827.1, to determine if the program meets all of the following goals:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Efficiently serves distinct customer groups.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Minimizes duplicative offerings.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Promotes robust participation by low-income customers.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Consider, as part of the evaluation, the energy load migration trends among bundled and nonbundled customers and any associated risks with maintaining or creating a customer renewable energy subscription program.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
If the commission determines a customer renewable energy subscription program does not
meet all of the goals described in subparagraph (A), authorize the termination or modification of the program.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Determine whether it would be beneficial to ratepayers to establish a new tariff or program for an electrical corporation, or modify an existing tariff or program administered by an electrical corporation, to establish a community renewable energy program consistent with the criteria described in subdivision (c). If the commission determines that it would be beneficial to ratepayers to establish the community renewable energy program, the commission shall, on or before July 1, 2027, establish the program as part of the same proceeding and require each electrical corporation to participate in the program.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the commission establishes a community renewable energy program pursuant to subparagraph (A), each community choice aggregator and electric service provider, within 190 days of the establishment of the program, shall notify the commission whether it will participate in the program. A community choice aggregator or electric service provider may begin participating in, or end its participation in, the program at any time by notifying the commission.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The community renewable energy program, if established, shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Be complementary to, and consistent with, the requirements of Section 10-115 of
the California Building Standards Code (Title 24 of the California Code of Regulations). For purposes of this paragraph, the commission shall consult with the Energy Commission.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Ensure at least 51 percent of the program’s capacity serves low-income customers.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Minimize impacts to nonparticipating customers by prohibiting the program’s costs from being paid by nonparticipating customers in excess of the avoided costs. Qualifying funds for financial incentives shall only be available through an appropriation by the Legislature.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Except as provided in subparagraph (B), require that all of the following requirements apply to the construction of a community renewable energy facility pursuant to the program:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
All
construction workers employed in the execution of the project shall be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The owner of the community renewable energy facility shall ensure that the prevailing wage requirement is included in all contracts for the performance of the work.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
All contractors and subcontractors shall maintain payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The requirement on contractors and subcontractors to pay prevailing wages pursuant to this section may be enforced by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the project, by an underpaid worker through an administrative complaint or civil action, or by a joint labor-management committee through a civil action under Section 1771.2 of the Labor Code. If a civil wage and penalty assessment is issued, the contractor, subcontractor, and surety on a bond issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code and subparagraph (A) shall not apply to the construction
of a community renewable energy facility pursuant to the program if all contractors and subcontractors performing work on the project are subject to a project labor agreement that requires the payment of prevailing wages and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subparagraph, “project labor agreement” has the same meaning as defined in Section 2500 of the Public Contract Code.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Provide bill credits to subscribers based on the avoided costs of the program’s facilities, as determined by the commission’s methods for calculating the full set of benefits of distributed energy resources. The commission may use actual wholesale market prices for the energy supply portion of an avoided cost calculation or credit value.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Prioritize the maximum use of state and federal incentives and accelerate implementation of the program
to ensure that time- or quantity-limited federal incentives can be obtained for the benefit of subscribers. As part of this prioritization, the commission shall ensure that a community renewable energy facility participating in the community renewable energy program is eligible for an enhanced federal investment tax credit available as a qualified low-income economic benefit project pursuant to subsection (e) of Section 48 of Title 26 of the United States Code.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 913.15 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Num>913.15.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
Within 24 months of establishing a community renewable energy program pursuant to Section 769.3, if applicable, and annually thereafter for the duration of the program, the commission shall submit a report to the Legislature, in compliance with Section 9795 of the Government Code, on the facilities deployed and customers subscribed, pursuant to that program, including an analysis of low-income customer participation.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
On or before March 31, 2027, the commission shall report to the Legislature on its actions taken pursuant to
subdivision (b) of Section 769.3 and its justification for terminating, modifying, or retaining each customer renewable energy subscription program pursuant to that subdivision.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The requirement for submitting a report imposed under this subdivision is inoperative on January 1, 2034, pursuant to Section 10231.5 of the Government Code.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
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<ns0:Num>SEC. 3.</ns0:Num>
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<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
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B of the California Constitution.
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