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<ns0:Id>20250AB__127394ENR</ns0:Id>
<ns0:VersionNum>94</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-21</ns0:ActionDate>
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<ns0:ActionDate>2025-07-22</ns0:ActionDate>
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<ns0:ActionDate>2025-09-13</ns0:ActionDate>
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<ns0:ActionText>PASSED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-09-12</ns0:ActionDate>
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<ns0:ActionText>ENROLLED</ns0:ActionText>
<ns0:ActionDate>2025-09-16</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>1273</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Patterson</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Patterson</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to amend Sections 311.5 and 399.30 of the Public Utilities Code, relating to public utilities.</ns0:Title>
<ns0:RelatingClause>public utilities</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Public utilities: ratesetting proceedings: local publicly owned electric utilities: California Renewables Portfolio Standard Program.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations. Existing law requires all charges demanded or received by a public utility for a product or commodity furnished or to be furnished or a service rendered or to be rendered to be just and reasonable. Existing law, except as provided, prohibits a public utility from changing a rate unless there is a showing before the PUC and a finding by the PUC that the new rate is justified. Existing law requires the PUC to publish and maintain on its internet website particular documents regarding the PUC’s agendas, actions, decisions, resolutions, rules, and other information.</html:p>
<html:p>This bill would prohibit the PUC from placing the consideration of
a decision in a ratesetting proceeding that would result in an increase in rates to customers of an electrical corporation that has a revenue requirement that exceeds $1,000,000,000 on its consent agenda. The bill would, except as provided, require the PUC to provide, at a meeting to vote on a decision of a ratesetting
proceeding that increases the rates of an electrical corporation’s customers by more than 5%, before its vote on the decision, a public comment period of at least 30 minutes on the decision.</html:p>
<html:p>Under existing law, the California Renewables Portfolio Standard Program requires retail sellers and local publicly owned electric utilities to procure a minimum quantity of electricity products from eligible
renewable energy resources during certain compliance periods up to December 31, 2030. Existing law provides that a local publicly owned electric utility is not required to procure a certain amount of eligible renewable energy resources if, during a year within those compliance periods, the local publicly owned electric utility receives more than 40% of its retail sales from large hydroelectric generation under an ownership agreement or contract in effect as of January 1, 2018. Existing law authorizes the State Energy Resources Conservation and Development Commission (Energy Commission) to establish appropriate multiyear compliance periods for local publicly owned electric utilities beyond December 31, 2030.</html:p>
<html:p>This bill would provide that the provision related to the procurement of eligible renewable energy resources by local publicly owned electric utilities also applies to the compliance periods established by the Energy Commission.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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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_3C6B005F-AB1C-4720-BEBE-1C8E1B599073">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 311.5 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_BBE9EC37-4ED6-45BB-AF0E-AB62F896D6AD">
<ns0:Num>311.5.</ns0:Num>
<ns0:LawSectionVersion id="id_3AD186D8-A0B2-418F-BE1A-240334973412">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Before a meeting at which the commission considers any action or decision, the commission shall make available to the public copies of the agenda and, upon request, documents related to an agenda item that is proposed to be considered by the commission.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The commission shall publish the agenda,
documents related to agenda items, and adopted commission decisions in a manner that makes copies of those materials easily available to the public, including publishing those materials on the commission’s internet website at the same time as the written agenda and documents related to agenda items are made available to the public.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The commission shall publish and maintain all of the following documents on the commission’s internet website:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Until a decision or resolution is adopted and published, all of the commission’s proposed and alternate proposed decisions and
resolutions.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
On or before 10 days following the commission’s adoption of a decision or
resolution, a copy of that decision or resolution.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The then-current version of the commission’s general orders and Rules of Practice and Procedure.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Until final disposition, including disposition of any judicial appeals, of a proceeding in which
a ruling is issued, a copy of that ruling.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Until final disposition, including disposition of any judicial appeals, a docket card that lists, by title and date of filing or issuance, all documents filed and all decisions or rulings issued in a proceeding, including the public versions of all prepared oral and written testimony and advice letter filings, protests, and responses.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The commission shall make all of the following information available on the commission’s internet website:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Information on how members of the public and ratepayers can gain access to the commission’s ratemaking process and information
regarding the specific matters to be decided by the
commission.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Information on the operation of the office of the public advisor established pursuant to Section 321, and how the public advisor can connect members of the public to persons responsible for specific cases and matters to be decided.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The commission shall not place on its consent agenda of a meeting to vote on the consideration of a decision in a ratesetting proceeding that would result in an increase in rates to customers of an electrical corporation that has
a revenue requirement that exceeds one billion dollars ($1,000,000,000).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
To ensure that an open discussion of a decision in a ratesetting proceeding that increases the rates of an electrical corporation’s customers by more than 5 percent
occurs, at a meeting to vote on the decision, before its vote on the decision, the commission shall provide a public comment period of at least 30 minutes on the decision, unless there is an insufficient number of members of the public wishing to speak on the
decision to require a 30-minute comment period.
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<ns0:BillSection id="id_493569E0-95CB-4E0E-B2DF-B7102ED16203">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 399.30 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_634BF35D-75E9-4BCA-A0C7-64C05865C76A">
<ns0:Num>399.30.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
To fulfill unmet long-term generation resource needs, each local publicly owned electric utility shall adopt and implement a renewable energy resources procurement plan that requires the utility to procure a minimum quantity of electricity products from eligible renewable energy resources, including renewable energy credits, as a specified percentage of total kilowatthours sold to the utility’s retail end-use customers, each compliance period, to achieve the targets of subdivision (c).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Beginning January 1, 2019, a local publicly owned electric utility subject to Section 9621 shall incorporate the renewable energy resources procurement plan required by
this section as part of a broader integrated resource plan developed and adopted pursuant to Section 9621.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The governing board shall implement procurement targets for a local publicly owned electric utility that require the utility to procure a minimum quantity of eligible renewable energy resources for each of the following compliance periods:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
January 1, 2011, to December 31, 2013, inclusive.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
January 1, 2014, to December 31, 2016, inclusive.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
January 1, 2017, to December 31, 2020, inclusive.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
January 1, 2021, to December 31, 2024, inclusive.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
January 1, 2025, to December 31, 2027, inclusive.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
January 1, 2028, to December 31, 2030, inclusive.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The governing board of a local publicly owned electric utility shall ensure all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The quantities of eligible renewable energy resources to be procured for the compliance period from January 1, 2011, to December 31, 2013, inclusive, are equal to an average of 20 percent of retail sales.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The quantities of eligible renewable energy resources to be procured for all other compliance periods reflect reasonable progress in each of the intervening years sufficient to ensure that the procurement of electricity products from eligible
renewable energy resources achieves 25 percent of retail sales by December 31, 2016, 33 percent by December 31, 2020, 44 percent by December 31, 2024, 52 percent by December 31, 2027, and 60 percent by December 31, 2030. The Energy Commission shall establish appropriate multiyear compliance periods for all subsequent years that require the local publicly owned electric utility to procure not less than 60 percent of retail sales of electricity products from eligible renewable energy resources.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A local publicly owned electric utility shall adopt procurement requirements consistent with Section 399.16.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Beginning January 1, 2014, in calculating the procurement requirements under this article, a local publicly owned electric utility may exclude from its total retail sales the
kilowatthours generated by an eligible renewable energy resource that is credited to a participating customer pursuant to a voluntary green pricing or shared renewable generation program. Any exclusion shall be limited to electricity products that do not meet the portfolio content criteria set forth in paragraph (2) or (3) of subdivision (b) of Section 399.16. Any renewable energy credits associated with electricity credited to a participating customer shall not be used for compliance with procurement requirements under this article, shall be retired on behalf of the participating customer, and shall not be further sold, transferred, or otherwise monetized for any purpose. To the extent possible for generation that is excluded from retail sales under this subdivision, a local publicly owned electric utility shall seek to procure those eligible renewable energy resources that are located in
reasonable proximity to program participants.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The governing board of a local publicly owned electric utility shall adopt procurement requirements consistent with subparagraph (B) of paragraph (5) of subdivision (a) of, and paragraph (1) of subdivision (b) of, Section 399.13.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The governing board of a local publicly owned electric utility may adopt the following measures:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Conditions that allow for delaying timely compliance consistent with subdivision (b) of Section 399.15.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Cost limitations for procurement expenditures consistent with subdivision (c) of Section 399.15.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The governing board of the local publicly owned electric utility shall adopt a program for the enforcement of this article. The program shall be adopted at a publicly noticed meeting offering all interested parties an opportunity to comment. Not less than 30 days’ notice shall be given to the public of any meeting held for purposes of adopting the program. Not less than 10 days’ notice shall be given to the public before any meeting is held to make a substantive change to the program.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Each local publicly owned electric utility shall annually post notice, in accordance with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), whenever its governing body will deliberate in public on its renewable energy resources procurement plan.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
A public utility district that receives all of its electricity pursuant to a preference right adopted and authorized by the United States Congress pursuant to Section 4 of the Trinity River Division Act of August 12, 1955 (Public Law 84-386), shall be in compliance with the renewable energy procurement requirements of this article.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
For a local publicly owned electric utility that was in existence on or before January 1, 2009, that provides retail electric service to 15,000 or fewer customer accounts in California, and is interconnected to a balancing authority located outside this state but within the WECC, an eligible renewable energy resource includes a facility that is located outside California that is connected to the WECC transmission system, if all of the following conditions
are met:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The electricity generated by the facility is procured by the local publicly owned electric utility, is delivered to the balancing authority area in which the local publicly owned electric utility is located, and is not used to fulfill renewable energy procurement requirements of other states.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The local publicly owned electric utility participates in, and complies with, the accounting system administered by the Energy Commission pursuant to this article.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Energy Commission verifies that the electricity
generated by the facility is eligible to meet the renewables portfolio standard procurement requirements.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Notwithstanding subdivision (a), for a local publicly owned electric utility that is a joint powers authority of districts established pursuant to state law on or before January 1, 2005, that furnishes electric services other than to residential customers, and is formed pursuant to the Irrigation District Law (Division 11 (commencing with Section 20500) of the Water Code), the percentage of total kilowatthours sold to the district’s retail end-use customers, upon which the renewables portfolio standard procurement requirements in subdivision (b) are calculated, shall be based on the authority’s average retail sales over the previous seven years. If the authority has not furnished electric service for seven years, then the calculation
shall be based on average retail sales over the number of completed years during which the authority has provided electric service.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
A local publicly owned electric utility in a city and county that only receives greater than 67 percent of its electricity sources from hydroelectric generation located within the state that it owns and operates, and that does not meet the definition of a “renewable electrical generation facility” pursuant to Section 25741 of the Public Resources Code, shall be required to procure eligible renewable energy resources, including renewable energy credits, to meet only the electricity demands unsatisfied by its hydroelectric generation in any given year, in order to satisfy its renewable energy procurement requirements.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For purposes of this subdivision, “large hydroelectric generation” means electricity generated from an existing hydroelectric facility located within the state that does not qualify as an eligible renewable energy resource and, as of January 1, 2018, was owned by a local publicly owned electric utility, the federal government as a part of the federal Central Valley Project, or a joint powers agency formed and created pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If, during a year within a compliance period set forth in subdivision (b) or (c), a local publicly owned electric utility receives more than 40 percent of its retail sales from large hydroelectric generation under an ownership agreement or contract in effect as of January 1,
2018, it is not required to procure eligible renewable energy resources that exceed the lesser of the following for that year:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The portion of the local publicly owned electric utility’s retail sales unsatisfied by the local publicly owned electric utility’s large hydroelectric generation.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The soft target adopted by the Energy Commission for the intervening years of the relevant compliance period.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An extension or renewal of a procurement agreement shall not be eligible to count towards the determination that the local publicly owned electric utility receives more than 40 percent of its retail sales from large hydroelectric generation in any year. This paragraph shall not apply to any agreement in effect on
January 1, 2015, between a local publicly owned electric utility and the Western Area Power Administration or federal government as part of the federal Central Valley Project.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The Energy Commission shall adjust the total quantities of eligible renewable energy resources to be procured by a local publicly owned electric utility for a compliance period to reflect any reductions required pursuant to paragraph (2).
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
This subdivision does not modify the compliance obligation of a local publicly owned electric utility to satisfy the requirements of subdivision (c) of Section 399.16.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
For purposes of this subdivision, “unavoidable long-term contracts and ownership
agreements” means commitments for electricity from a coal-fired powerplant, located outside the state, originally entered into by a local publicly owned electric utility before June 1, 2010, that is not subsequently modified to result in an extension of the duration of the agreement or result in an increase in total quantities of energy delivered during any compliance period set forth in subdivision (b).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The governing board of a local publicly owned electric utility shall demonstrate in its renewable energy resources procurement plan required pursuant to subdivision (a) that any cancellation or divestment of the commitment would result in significant economic harm to its retail customers that cannot be substantially mitigated through resale, transfer to another entity, early closure of the facility, or other feasible measures.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For the compliance period set forth in paragraph (4) of subdivision (b), a local publicly owned electric utility meeting the requirement of subparagraph (B) of paragraph (1) may adjust its renewable energy procurement targets to ensure that the procurement of additional electricity from eligible renewable energy resources, in combination with the procurement of electricity from unavoidable long-term contracts and ownership agreements, does not exceed the total retail sales of the local publicly owned electric utility during that compliance period. The local publicly owned electric utility may limit its procurement of eligible renewable energy resources for that compliance period to no less than an average of 33 percent of its retail sales.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Energy Commission shall approve
any reductions in procurement targets proposed by a local publicly owned electric utility if it determines that the requirements of this subdivision are satisfied.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
A local publicly owned electric utility shall retain discretion over both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The mix of eligible renewable energy resources procured by the utility and those additional generation resources procured by the utility for purposes of ensuring resource adequacy and reliability.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The reasonable costs incurred by the utility for eligible renewable energy resources owned by the utility.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
The Energy Commission shall adopt regulations specifying procedures for enforcement
of this article. The regulations shall include a public process under which the Energy Commission may issue a notice of violation and correction against a local publicly owned electric utility for failure to comply with this article, and for referral of violations to the State Air Resources Board for penalties pursuant to subdivision (o).
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Upon a determination by the Energy Commission that a local publicly owned electric utility has failed to comply with this article, the Energy Commission shall refer the failure to comply with this article to the State Air Resources Board, which may impose penalties to enforce this article consistent with Part 6 (commencing with Section 38580) of Division 25.5 of the Health and Safety Code. Any penalties imposed shall be comparable to those adopted by the commission for
noncompliance by retail sellers.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any penalties collected by the State Air Resources Board pursuant to this article shall be deposited in the Air Pollution Control Fund and, upon appropriation by the Legislature, shall be expended for reducing emissions of air pollution or greenhouse gases within the same geographic area as the local publicly owned electric utility.
</html:p>
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