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Measure AB 729
Authors Zbur  
Subject Public utilities: climate credits.
Relating To relating to public utilities.
Title An act to amend Section 748.5 of, and to add Section 748.8 to, the Public Utilities Code, relating to public utilities.
Last Action Dt 2025-06-05
State Amended Senate
Status In Committee Process
Active? Y
Vote Required Majority
Appropriation No
Fiscal Committee Yes
Local Program Yes
Substantive Changes None
Urgency No
Tax Levy No
Leginfo Link Bill
Actions
2025-06-05     From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on E., U & C.
2025-06-04     Referred to Com. on E., U & C.
2025-05-23     Read third time. Passed. Ordered to the Senate. (Ayes 71. Noes 0. Page 1662.)
2025-05-23     In Senate. Read first time. To Com. on RLS. for assignment.
2025-05-15     Read second time. Ordered to Consent Calendar.
2025-05-14     From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (May 14).
2025-04-29     From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 14. Noes 0.) (April 28). Re-referred to Com. on APPR.
2025-04-24     From committee: Do pass and re-refer to Com. on NAT. RES. with recommendation: To Consent Calendar. (Ayes 18. Noes 0.) (April 23). Re-referred to Com. on NAT. RES.
2025-04-22     Re-referred to Com. on U. & E.
2025-04-21     From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.
2025-04-01     Re-referred to Com. on U. & E.
2025-03-28     Referred to Coms. on U. & E. and NAT. RES.
2025-03-28     From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.
2025-02-19     From printer. May be heard in committee March 21.
2025-02-18     Read first time. To print.
Keywords
Tags
Versions
Amended Senate     2025-06-05
Amended Assembly     2025-04-21
Amended Assembly     2025-03-28
Introduced     2025-02-18
Last Version Text
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Zbur</ns0:AuthorText>
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		<ns0:Title>An act to amend Section 748.5 of, and to add Section 748.8 to, the Public Utilities Code, relating to public utilities.</ns0:Title>
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			<ns0:Subject>Public utilities: climate credits.</ns0:Subject>
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			<html:p>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 the use of market-based compliance mechanisms in regulating those emissions. The implementing regulations adopted by the state board provide for the direct allocation of greenhouse gas allowances to electrical corporations and gas corporations pursuant to a market-based compliance mechanism. </html:p>
			<html:p>Existing law, except as provided, requires revenues received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electrical distribution utilities to be credited directly to residential, small business, and emissions-intensive trade-exposed retail
			 customers of the electrical corporation, commonly known as the electric California Climate Credit.</html:p>
			<html:p>Under existing law, the Public Utilities Commission has regulatory jurisdiction over public utilities, including electrical corporations and gas corporations. Under its regulatory authority, the commission requires, except as provided, revenues received by a gas corporation as a result of the direct allowance of greenhouse gas allowances to natural gas suppliers to be credited directly to residential customers of the gas corporation, commonly known as the natural gas California Climate Credit.</html:p>
			<html:p>This bill would require that the electric California Climate Credit be provided to the residential and
			 small business retail customers of electrical corporations on the bills of those customers for the months of August and September of each year, and to the emissions-intensive trade-exposed retail customers of electrical corporations on the bills of those customers for the month of August of each year, unless otherwise directed by the commission, as specified. The bill would require that the natural gas California Climate Credit be provided to residential customers on the bills of those customers for the month of February of each year unless otherwise directed by the commission, as specified.</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 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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				Section 748.5 of the 
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				 is amended to read:
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								(a)
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								(1)
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								Except as provided in subdivision (c), the commission shall require revenues, including any accrued interest, received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electric utilities pursuant to subdivision (b) of Section 95890 of Title 17 of the California Code of Regulations to be credited directly to the residential, small business, and emissions-intensive trade-exposed retail customers of the electrical corporation.
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								(2)
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								The credits
						provided to the residential and small business retail customers of an electrical corporation shall be provided on the bills of those customers for the months of August and September of each year, or as otherwise directed by the commission to address extreme, unforeseen, and temporary circumstances, after which the commission shall continue to provide the credits during the months of August and September.
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								(3)
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								The credits provided to the emissions-intensive trade-exposed retail customers of an electrical corporation shall be provided on the bills
						of those customers for the month of August of each year, or as otherwise directed by the commission to address extreme, unforeseen, and temporary circumstances, after which the commission shall continue to provide the credits during the month of August.
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								(b)
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								Not later than January 1, 2013, the commission shall require the adoption and implementation of a customer outreach plan for each electrical corporation, including, but not limited to, such measures as notices in bills and through media outlets, for purposes of obtaining the maximum feasible public awareness of the crediting of greenhouse gas allowance revenues. Costs associated with the implementation of this plan are subject to recovery in rates pursuant to Section 454.
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								(c)
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								The commission may allocate up to 15 percent of the revenues,
						including any accrued interest, received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electrical distribution utilities pursuant to subdivision (b) of Section 95890 of Title 17 of the California Code of Regulations, for clean energy and energy efficiency projects established pursuant to statute that are administered by the electrical corporation, or a qualified third-party administrator as approved by the commission, and that are not otherwise funded by another funding source.
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				Section 748.8 is added to the 
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				, to read:
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							<html:p>Revenues, including any accrued interest, received by a gas corporation as a result of the direct allocation of greenhouse gas allowances to a natural gas supplier pursuant to subdivision (f) of Section 95890 of Title 17 of the California Code of Regulations that are required by the commission to be credited directly to residential customers shall be provided on the bills of those customers for the month of February of each year, or as otherwise directed by the commission to address extreme, unforeseen, and temporary circumstances, after which the commission shall continue to provide the credits during the month of
						February.</html:p>
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					No reimbursement is required by this act pursuant to Section 6 of Article XIII
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					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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Last Version Text Digest 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 the use of market-based compliance mechanisms in regulating those emissions. The implementing regulations adopted by the state board provide for the direct allocation of greenhouse gas allowances to electrical corporations and gas corporations pursuant to a market-based compliance mechanism. Existing law, except as provided, requires revenues received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electrical distribution utilities to be credited directly to residential, small business, and emissions-intensive trade-exposed retail customers of the electrical corporation, commonly known as the electric California Climate Credit. Under existing law, the Public Utilities Commission has regulatory jurisdiction over public utilities, including electrical corporations and gas corporations. Under its regulatory authority, the commission requires, except as provided, revenues received by a gas corporation as a result of the direct allowance of greenhouse gas allowances to natural gas suppliers to be credited directly to residential customers of the gas corporation, commonly known as the natural gas California Climate Credit. This bill would require that the electric California Climate Credit be provided to the residential and small business retail customers of electrical corporations on the bills of those customers for the months of August and September of each year, and to the emissions-intensive trade-exposed retail customers of electrical corporations on the bills of those customers for the month of August of each year, unless otherwise directed by the commission, as specified. The bill would require that the natural gas California Climate Credit be provided to residential customers on the bills of those customers for the month of February of each year unless otherwise directed by the commission, as specified. 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.