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<ns0:Id>20250AB__238399INT</ns0:Id>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:MeasureNum>2383</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Zbur</ns0:AuthorText>
<ns0:AuthorText authorType="PRINCIPAL_COAUTHOR_ORIGINATING">(Principal coauthor: Assembly Member Petrie-Norris)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Zbur</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Petrie-Norris</ns0:Name>
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<ns0:Title> An act to add Article 14.7 (commencing with Section 945) to Chapter 4 of Part 1 of Division 1 of, and to repeal Section 945.2 of, the Public Utilities Code, relating to electricity. </ns0:Title>
<ns0:RelatingClause>electricity</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Electricity: large energy use facilities.</ns0:Subject>
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<ns0:DigestText>
<html:p>Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable. Existing law authorizes the commission to investigate a single rate, classification, rule, contract, practice, or the entire schedule of rates, classifications, rules, contracts, and practices, of any public utility, and to establish new rates, classifications, rules, contracts, practices, or schedules. </html:p>
<html:p>This bill would require the commission, on or before January 1, 2028, in a new or existing proceeding, to provide for a classification of retail electricity consumers that are large energy use facilities, as defined, that is separate and distinct from
classifications of service for other commercial or industrial retail electricity consumers and has its own rate schedule. The bill would require any rate schedule adopted by the commission for large energy use facilities to meet specified requirements, and would require the commission, in deciding whether to approve an electrical corporation’s proposed rate schedule, to ensure the rates meet certain requirements, as provided. The bill would specify that, until January 1, 2028, an electrical corporation and a large energy use facility are not required to use the above-described classification of service if the commission has not approved the electrical corporation’s rate schedule for that classification of service.</html:p>
<html:p>This bill would require the commission to require an electrical corporation that is providing electricity service to a large energy use facility to enter into a contract with the large energy use facility that covers the provision of transmission,
generation, or distribution of electricity service, as applicable, and would require any contract entered into between an electrical corporation and a large energy use facility pursuant to these provisions to meet certain requirements. The bill would specify that these provisions apply to a large energy use facility that receives electricity service from an electrical corporation on or after January 1, 2027.</html:p>
<html:p>Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.</html:p>
<html:p>Because the above provisions would be a part of the act, and because a violation of a commission action implementing the above provisions 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:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_E5039440-0B79-479E-B70A-D294694E7023">
<ns0:Num>SECTION 1.</ns0:Num>
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Article 14.7 (commencing with Section 945) is added to Chapter 4 of Part 1 of Division 1 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
, to read:
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<ns0:LawHeading type="ARTICLE" id="id_EE4589FA-E6FD-4AA8-8B68-E3AC3F1B45F9">
<ns0:Num>14.7.</ns0:Num>
<ns0:LawHeadingVersion id="id_F97B096B-11FA-4F7B-BE83-B7121115ECBF">
<ns0:LawHeadingText>Large Energy Use Facilities</ns0:LawHeadingText>
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<ns0:LawSection id="id_4D57CA0F-DE34-42FD-8FB2-C08BE4FD8CC4">
<ns0:Num>945.</ns0:Num>
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<html:p>For purposes of this article, all of the following definitions apply:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Costs of serving” includes, as applicable, the costs incurred by an electrical corporation in providing transmission, distribution, energy, capacity, or ancillary electricity services, and any related costs or associated risks with serving a retail electricity consumer or a class of retail electricity consumers. “Costs of serving” does not include upgrades to the electrical transmission system or electrical distribution system.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Facility” means all buildings, equipment, structures, and other stationary items that are located on a single site, or on contiguous or adjacent sites, and that are owned or operated by the same person
or by any person who controls, is controlled by, or is under common control with that person.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Large energy use facility” means a facility that has a peak load of 20 megawatts or more and is interconnected under a retail transmission tariff.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
“Retail electricity consumer” means the end user of electricity.
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<ns0:LawSection id="id_4F4A03CA-D5CE-468E-BEDA-0A8215EB045D">
<ns0:Num>945.1.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
On or before January 1, 2028, the commission shall, in a new or existing proceeding, provide for a classification of retail electricity consumers that are large energy use facilities. The classification of service shall be separate and distinct from classifications of service for other commercial or industrial retail electricity consumers and shall have its own rate schedule.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Any rate schedule adopted by the commission for large energy use facilities shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Allocate the costs of serving the class of large energy use facilities in a manner that is equal or proportional to the cost of serving the class.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Meet the same conditions the commission requires for a contract under Section 945.3.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Avoid both of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Other classes of retail electricity consumers paying unwarranted costs.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Unreasonably shifting the costs of serving a large energy use facility to another class of retail electricity consumers, including the cost of an electrical corporation meeting load requirements resulting from the provision of electricity service to a large energy use facility.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
In deciding whether to approve an electrical corporation’s proposed rate schedule for a classification of service described under subdivision (a), the commission shall ensure that the rates do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Not result in, or have the potential to result in, increased costs or unreasonable risk to other retail electricity consumers.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Provide for equitable contributions to electrical grid efficiency, reliability, resiliency benefits, and state programs.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Include an equitable portion of costs associated with wildfire mitigation, wildfire liability, climate mandates, and other programs that advance public and social equity.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Not impede the electrical corporation’s ability to meet the clean energy targets set forth in Senate Bill 1020 (Chapter 361 of the Statutes of 2022) consistent with state policy.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Allow for procurement of, or contracts for, generation resources that support the
electrical corporation’s ability to meet the clean energy targets described in paragraph (4).
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Encourage the development of large energy use facilities that bring high-wage and high-skilled jobs to California.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Consider the impact that a portion of onsite generation will have on system reliability and cost allocation to nonparticipating customers.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
To the extent permitted by the Federal Energy Regulatory Commission, the commission shall require large energy use facilities to be responsible for electrical infrastructure upgrades required for interconnection, including the proportion of shared network upgrades and related upgrades to support the efficient flow of electricity throughout the electrical grid.
</html:p>
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<ns0:LawSection id="id_938445A4-07E5-4886-B069-63BA3170CE88">
<ns0:Num>945.2.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
An electrical corporation and a large energy use facility are not required to use a classification of service provided for under Section 945.1 if the commission has not approved the electrical corporation’s rate schedule for that classification of service.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
</html:p>
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<ns0:LawSection id="id_61CF1D48-1147-4C16-BBBB-BA7B64EB9567">
<ns0:Num>945.3.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The commission shall require an electrical corporation that is providing electricity service to a large energy use facility to enter into a contract with the large energy use facility that covers the provision of transmission, generation, or distribution of electrical service, as applicable.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A contract entered into between an electrical corporation and a large energy use facility pursuant to this section shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Be consistent with the criteria listed under subdivision (c) of Section 945.1.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Specify the duration of the contract and, for transmission or distribution interconnection
contracts, be for a minimum duration of 15 years.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Require the large energy use facility to pay a minimum amount or percentage, as determined by the commission, based on the large energy use facility’s projected electricity usage for the electricity services the electrical corporation is contracted to provide for the duration of the contract.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Meet any other conditions the commission may require that are in the public interest.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The terms of a contract described under subdivision (a) shall include a requirement on the large energy use facility to report to the electrical corporation the expected investments in onsite generation throughout the duration of the contracted service, before the initial point of service under the contract.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A
contract described under subdivision (a) shall not prevent the commission from carrying out the commission’s duties under this article.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
This article does not limit or restrict the ability of a large energy use facility to use direct access or receive generation services from a community choice aggregator, a voluntary renewable energy tariff, or a special contract as approved by the commission, except that the contract shall meet the requirements and be consistent with this section.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
This section shall apply to a large energy use facility that receives electricity service from an electrical corporation on or after January 1, 2027.
</html:p>
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<ns0:BillSection id="id_70C72ABB-D0F1-42CC-8107-E0CA85FF3678">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:Content>
<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
<html:span class="ThinSpace"/>
B of the California Constitution.
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