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<ns0:Id>20250AB__218299INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-19</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Irwin</ns0:AuthorText>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Irwin</ns0:Name>
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<ns0:Title> An act to add Chapter 8.6 (commencing with Section 1550) to Part 1 of Division 1 of the Public Utilities Code, relating to energy. </ns0:Title>
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<ns0:GeneralSubject>
<ns0:Subject>Electrical corporations: Industrial Decarbonization and Energy Efficiency Program.</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 to require electrical corporations to implement various programs, such as energy efficiency programs, that are funded by electrical ratepayers.</html:p>
<html:p>This bill would require, on or before August 1, 2027, each large electrical corporation, as defined, to file a Tier 2 advice letter with the commission establishing an Industrial Decarbonization and Energy Efficiency Program with funding allocated from energy efficiency charges collected from eligible facilities, defined as industrial or manufacturing facilities that meet specified requirements, as specified. The bill would require the program to award grants to eligible facilities for eligible projects, including, among others, energy
efficiency projects that meet certain requirements. The bill would require each large electrical corporation to administer the program, as provided, and require the Governor’s Office of Business and Economic Development to provide independent review and approval of grants awarded pursuant these provisions.</html:p>
<html:p>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.</html:p>
<html:p>Because the above provisions would be part of the Public Utilities Act and 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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Chapter 8.6 (commencing with Section 1550) is added to Part 1 of Division 1 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:LawHeading type="CHAPTER" id="id_694C914B-6FF6-4958-AFE1-B415CE818F7E">
<ns0:Num>8.6.</ns0:Num>
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<ns0:LawHeadingText>Industrial Decarbonization and Energy Efficiency Program</ns0:LawHeadingText>
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<ns0:Num>1550.</ns0:Num>
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<html:p>For purposes of this chapter, all of the following definitions apply:</html:p>
<html:p>
(a)
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“Eligible facility” means an industrial or manufacturing facility that meets all of the following requirements:
</html:p>
<html:p>
(1)
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Takes bundled, direct access, or community choice aggregation electrical service within the service territory of a large electrical corporation.
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<html:p>
(2)
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Is enrolled in a medium or large energy customer electric tariff, including TOU-8, B-19, B-20, or successor tariffs.
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<html:p>
(3)
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Meets a minimum peak load requirement of 500 kilowatts or more.
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<html:p>
(4)
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Is not identified as a residential, state, or local government customer.
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<html:p>
(b)
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“Eligible project” includes, but is not limited to, all of the following projects:
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<html:p>
(1)
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Energy efficiency projects using commercially available technology that reduce energy consumption by at least 20 percent compared to the replaced technology, or that achieve industry standard or greater energy efficiency, based on manufacturer specifications or other documentation approved by the large electrical corporation.
</html:p>
<html:p>
(2)
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Projects for industrial process heat recovery, as defined in Section 451.7.
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(3)
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Behind-the-meter solar generation, wind generation, energy storage, or other eligible renewable energy resources, as defined in subdivision (e) of Section 399.12, that
are sited, installed, upgraded, or expanded at the eligible facility.
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(4)
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Electrification of industrial production process equipment that results in reduced emissions of greenhouse gases.
</html:p>
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(5)
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Carbon capture, utilization, and sequestration technologies, subject to any limitations or eligibility criteria established by the large electrical corporation to ensure cost-effectiveness and reduced emissions of greenhouse gases.
</html:p>
<html:p>
(c)
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“Large electrical corporation” means an electrical corporation with more than 3,000,000 customer accounts in California.
</html:p>
<html:p>
(d)
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“Office” means the Governor’s Office of Business and Economic Development.
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<html:p>
(e)
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“Program” means an Industrial Decarbonization and Energy
Efficiency Program established pursuant to Section 1551.
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<ns0:Num>1551.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
(1)
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On or before August 1, 2027, each large electrical corporation shall file a Tier 2 advice letter with the commission to establish an Industrial Decarbonization and Energy Efficiency Program with funding allocated from energy efficiency charges collected from eligible facilities, as described in paragraph (2).
</html:p>
<html:p>
(2)
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Each large electrical corporation shall allocate an amount for its program equal to the amount it collects from eligible facilities for energy efficiency pursuant to commission approved tariffs.
</html:p>
<html:p>
(b)
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The commission shall act on a Tier 2 advice letter filed pursuant to subdivision (b) on or before November 1, 2027.
</html:p>
<html:p>
(c)
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(1)
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Each program shall award grants to eligible facilities for eligible projects, as described in Section 1550.
</html:p>
<html:p>
(2)
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Each program shall prioritize grants for eligible projects that do any of the following:
</html:p>
<html:p>
(A)
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Deliver durable, verifiable reduced emissions of greenhouse gases.
</html:p>
<html:p>
(B)
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Reduce overall electricity or fuel consumption.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Improve electrical grid efficiency or reduce peak demand impacts.
</html:p>
<html:p>
(d)
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Each large electrical corporation shall administer the program, including by establishing eligible project intake and data validation requirements, evaluating the eligibility of facilities and projects, and
administering grant payments.
</html:p>
<html:p>
(e)
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The office shall provide independent review and approval of grants awarded pursuant to each program, and may clarify eligibility criteria for each program to ensure the program serves eligible facilities with significant potential for energy savings and reduced emissions of greenhouse gases.
</html:p>
<html:p>
(f)
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Grants awarded pursuant to each program shall fund up to 50 percent of the documented costs of the eligible project.
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<html:p>
(g)
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(1)
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Each eligible facility’s cumulative grant awards shall not exceed the total amount collected from the eligible facility pursuant to the allocation described in subdivision (a).
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<html:p>
(2)
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(A)
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Moneys that have not been awarded to an eligible project within five years may
be made available to other eligible facilities on a first-come-first-served basis.
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<html:p>
(B)
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Moneys made available pursuant to subparagraph (A) and awarded to an eligible facility shall be excluded from the maximum allowable cumulative grant award limit established pursuant to paragraph (1).
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<ns0:Num>SEC. 2.</ns0:Num>
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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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