AB 1342: Public Utilities Commission: energy efficiency programs: report.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2025-04-21
Current Status:
Failed
(2026-02-02: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
What does this bill do?
This bill requires the California Public Utilities Commission to identify and report to the Legislature every year instead of every two years. The annual report must cover electric and gas company ratepayer-funded energy efficiency programs that are similar to programs run by the Energy Commission, the State Air Resources Board, and the California Alternative Energy and Advanced Transportation Financing Authority, including programs revised under Section 381.4.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law requires the Public Utilities Commission, on or before December 31, 2018, and biennially thereafter, as part of a specified report, to identify and report to the Legislature on electrical and gas corporation ratepayer-funded energy efficiency programs that are similar to programs administered by the State Energy Resources Conservation and Development Commission, the State Air Resources Board, and the California Alternative Energy and Advanced Transportation Financing Authority.
This bill would instead require the commission to identify and report to the Legislature on those programs on an annual basis.
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. Under existing law, the Public Utilities Commission has regulatory jurisdiction over public utilities, including electrical corporations. 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.This bill would require that the electric California Climate Credit be provided to residential customers in the months of June, July, August, and September. The bill would require the commission to ensure that a larger portion of those revenues be allocated as electric California Climate Credits to residential customers living in the hotter regions of the state, as provided.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.Because the above provisions would be part of the act and a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.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.This bill would provide that no reimbursement is required by this act for a specified reason.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.
Under existing law, the Public Utilities Commission has regulatory jurisdiction over public utilities, including electrical corporations. 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.
This bill would require that the electric California Climate Credit be provided to residential customers in the months of June, July, August, and September. The bill would require the commission to ensure that a larger portion of those revenues be allocated as electric California Climate Credits to residential customers living in the hotter regions of the state, as provided.
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.
Because the above provisions would be part of the act and a violation of a commission action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program.
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.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law authorizes the Public Utilities Commission to supervise and regulate every public utility in the state, including electrical corporations, and to fix just and reasonable rates and charges for each public utility.This bill would declare the intent of the Legislature to enact subsequent legislation to establish policies to reform the regulation of electricity rates for residential customers.Existing law authorizes the Public Utilities Commission to supervise and regulate every public utility in the state, including electrical corporations, and to fix just and reasonable rates and charges for each public utility.
This bill would declare the intent of the Legislature to enact subsequent legislation to establish policies to reform the regulation of electricity rates for residential customers.
On or before December 31, 2018, and biennially annually thereafter, the commission shall, in its annual report prepared pursuant to Section 913, identify and report to the Legislature on electrical and gas corporation ratepayer-funded energy efficiency programs that are similar to programs administered by the Energy Commission, the State Air Resources Board, and the California Alternative Energy and Advanced Transportation Financing Authority, and on those programs revised pursuant to Section 381.4.
SECTION 1.Section 748.5 of the Public Utilities Code is amended to read:748.5.(a)(1)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 in the months of June, July, August, and September.(2)If the operation of Section 38562 of the Health and Safety Code, as amended by Section 4 of Chapter 135 of the Statutes of 2017, is extended beyond January 1, 2031, the commission shall, upon that extension, ensure that a larger portion of the revenues described in paragraph (1) be allocated for residential customers living in hotter regions of the state.(b)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.(c)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.SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.(a)(1)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. corporation in the months of June, July, August, and September.
(2)If the operation of Section 38562 of the Health and Safety Code, as amended by Section 4 of Chapter 135 of the Statutes of 2017, is extended beyond January 1, 2031, the commission shall, upon that extension, ensure that a larger portion of the revenues described in paragraph (1) be allocated for residential customers living in hotter regions of the state.
(b)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.
(c)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.
SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SECTION 1.It is the intent of the Legislature to enact legislation to establish policies to reform the regulation of electricity rates for residential customers.It is the intent of the Legislature to enact legislation to establish policies to reform the regulation of electricity rates for residential customers.
|
Date
|
Status
|
|---|---|
| Feb 2, 2026 | From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. |
| Jan 31, 2026 | Died pursuant to Art. IV, Sec. 10(c) of the Constitution. |
| May 14, 2025 | In committee: Hearing postponed by committee. |
| May 1, 2025 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 18. Noes 0.) (April 30). Re-referred to Com. on APPR. |
| Apr 22, 2025 | Re-referred to Com. on U. & E. |
| Apr 21, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended. |
| Apr 1, 2025 | Re-referred to Com. on U. & E. |
| Mar 28, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended. |
| Mar 28, 2025 | Referred to Coms. on U. & E. and NAT. RES. |
| Feb 24, 2025 | Read first time. |
| Feb 22, 2025 | From printer. May be heard in committee March 24. |
| Feb 21, 2025 | Introduced. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Apr 30, 2025 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Utilities and Energy |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
Date of Hearing: April 30, 2025
ASSEMBLY COMMITTEE ON UTILITIES AND ENERGY
Cottie Petrie-Norris, Chair
ABPCA Bill Id:AB 1342 (
Author:Soria) – As Amended Ver:April 21, 2025
SUBJECT: Public Utilities Commission: energy efficiency programs: report
SUMMARY: Changes a California Public Utilities Commission (CPUC) reporting requirement related to evaluating duplicative energy efficiency programs across state agencies, as specified, from biennial to annual.
EXISTING LAW:
- Requires the CPUC to report biennially on its efforts to identify ratepayer-funded energy efficiency programs that are similar to programs administered by the California Energy Commission (CEC), the California Air Resources Board (CARB), and the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) in its annual report on ratepayer costs, and to require revisions of ratepayer funded programs as necessary. (Public Utilities Code § 913.9)
- Requires the CPUC to publish the costs to ratepayers of all utility programs and activities currently recovered in retail rates for electrical corporations with at least 1 million retail customers and gas corporations with at least 500,000 retail customers. These are known as the “AB 67 Reports.” (Public Utilities Code § 913)
- Requires the CPUC to report every three years on demand-side management programs it oversees, including a detailed list of programs, authorized budgets, actual energy and bill savings, cost-effectiveness, public interest impacts, and peak demand reduction, among other requirements. (Public Utilities Code § 913.5)
FISCAL EFFECT: Unknown. This bill is keyed fiscal, and will be referred to the Assembly Committee on Appropriations for its review.
CONSUMER COST IMPACTS: Unknown. This bill seeks to increase the cadence of CPUC evaluations on energy efficiency programs that may be duplicative across state agencies. In this way, should duplicative offerings be found, savings from program closures or consolidations may arise, though the bill does not require nor prescribe that outcome. Slight increase to cost, likely negligible, may arise in order for the utilities and CPUC to increase their program evaluations.
BACKGROUND:
Energy Efficiency at the CPUC – California has led the nation in energy efficiency programs since the 1970s. Due to the state’s efficiency programs, per capita energy use has remained flat, while the rest of the US has increased by about 33%. In its 2023 AB 67 Report, the CPUC noted the energy efficiency savings from the electric sector programs amounted to 2,372 gigawatt hours; while the gas sector programs resulted in 92 million therms.[1] In 2023, these programs cost approximately $860 million across the three largest investor-owned utilities (IOUs).[2]
Energy efficiency is at the top of the “loading order,” meaning California’s utilities are required to first meet their energy needs through cost-effective energy efficiency measures before renewable and conventional generation. The state’s IOUs and, to a lesser extent, the publicly owned utilities, administer hundreds of energy efficiency programs that provide financial incentives and rebates. The CPUC regulates ratepayer-funded energy efficiency programs. The programs span a variety of sectors encompassing residential homes and commercial buildings, large and small appliances, lighting and HVAC, industrial manufacturers, and agriculture. Within those sectors, efficiency programs may use any number of different tools: financial incentives and rebates, research and development for energy efficiency technologies, financing mechanisms, codes and standards development, education and public outreach, marketing, and others. The CPUC works with the IOUs, other program administrators, and vendors to develop programs and measures to reduce energy consumption using ratepayer funds.[3]
Energy Efficiency at Other Agencies – Energy efficiency efforts are not unique to the CPUC or electric utilities. Many other state and federal agencies administer energy efficiency efforts, some include:
- The “Clean Energy Upgrade Financing” program required by ABx1 14 (Skinner, 2011) to finance energy efficiency retrofits with loans administered by the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) within the State Treasurer’s Office.
- Federal funding for free weatherization services for low-income residents administered by the California Department of Community Services and Development (CDCS).
- The “School Energy Efficiency Stimulus program” at the California Energy Commission established by AB 841 (Ting, Chapter 372, Statutes of 2020) to fund critical school improvements, support efforts to reopen schools consistent with COVID-19 guidance, and provide jobs.
COMMENTS:
- Author’s Statement. According to the author, “The average Californian’s electricity rates have skyrocketed in recent years, particularly in hotter inland regions like the Central Valley and Inland Empire. One method to address this issue has been to promote and incentivize the energy efficiency of homes and other buildings, and both state agencies and investor-owned utilities have created their own programs to implement this strategy. However, a recent report by the State Auditor has raised concerns about the cost efficiency of some energy efficiency programs operated by utilities and funded by their ratepayers. AB 1342 enhances the public transparency of these programs by requiring the Public Utilities Commission to annually report on them, and increases legislative oversight of how customers’ money is being spent by utilities. In a time when average Californians are struggling to get by as their electricity costs continue to climb year by year, it is crucial that we know which energy efficiency programs are helping customers in the way they were meant to and which are not, and AB 1342 ensures that information is regularly reported.”
- Reversing Course. The CPUC is mandated to report biennially on its efforts to “identify ratepayer-funded energy efficiency programs” that duplicate programs at the CEC, CARB, and CAEATFA.[4] Such a report is meant to be included in the CPUC’s annual report to the Legislature. The purpose of such effort is to address the potential for agencies to silo efforts. Having the CPUC identify, and then modify ratepayer funded programs, to ensure CPUC efforts are complimentary, not duplicative, to other agency programs can ideally lead to efficient use of both ratepayer and taxpayer dollars.
This bill changes this reporting requirement from every two years to every year. The cadence of this report was last changed in SB 385 (Hueso, Chapter 425, Statutes of 2017) to make this report a biennial requirement. At the time, the CPUC had noted the annual requirement for these reports was excessive, and stated that only a small number of duplicative programs may exist, negating the need for such annual reports. The CPUC suggested moving the report to every two years instead of annually in order to better use CPUC resources. However, in 2017, the original report mandated by the Legislature to be updated annually had yet to be delivered, even though the enacting statute was chaptered in 2014.[5]
Following the passage of SB 385 (Hueso, Chapter 425, Statutes of 2017), the CPUC included this report on energy-efficiency programs across state agencies in its 2018 Energy Efficiency Portfolio Report.[6] This reporting effort listed examples of how the CPUC was coordinating with the CEC, CARB, and CAEATFA on various programs and their efforts to avoid duplication amongst the agencies. While the review of joint-agency collaboration is helpful, this report did not provide a comprehensive identification of various energy efficiency programs across state agencies nor share details of how CPUC programs were revised to avoid duplication, as called for under the statute. A review of the CPUC’s AB 67[7] reports since 2018,[8] which were meant to be the home for the biennial updates to this report, does not clearly show any further review of state agency collaboration or identification of potentially duplicative energy efficiency programs. Therefore it may be prudent, as put forward by this measure, to return the reporting requirement back to an annual obligation, and for the Legislature to inquire more directly of the CPUC when to expect the comprehensive review required under statute.
- Prior Legislation.
AB 3264 (Petrie-Norris), among its provisions, required an update to the CPUC energy efficiency reporting, to include a detailed list of programs, authorized budgets, actual energy and bill savings, cost-effectiveness, public interest impacts, and peak demand reduction, among others requirements. Status: Chapter 762, Statutes of 2024.
AB 691 (Ting, 2023) an earlier version of this bill contained the same policy as this measure. This policy was later removed from the bill. Status: Died in the Senate Committee on Appropriations.
SB 385 (Hueso) provides technical clean-up of the Public Utilities Code, including changing the requirement to report the similarity between CPUC energy efficiency programs and other state agency programs from annual to biennial. Status: Chapter 425, Statutes of 2017.
SB 350 (De León) among its many provisions, includes a goal to double the energy efficiency savings in electricity and natural gas end uses by 2030. Status: Chapter 547, Statutes of 2015.
AB 270 (Bradford) requires the CPUC to report on its efforts to identify ratepayer-funded energy efficiency programs that are similar to programs administered by other state agencies. The CPUC is also required to make revisions to programs to ensure they are complimentary and not duplicative of other state efforts. Status: Chapter 610, Statutes of 2013.
AB 67 (Levine) includes a provision requiring the CPUC to report on the costs of programs and activities conducted by each electric and gas IOU, and identify each program mandated by statute or the CPUC and its annual cost to ratepayers, among other items. Status: Chapter 562, Statutes of 2005.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file.
Opposition
None on file.
Analysis Prepared by: Laura Shybut / U. & E. / (916) 319-2083
Pg. 43, CPUC, 2023 California Electric and Gas Utility Costs Report: AB 67 Annual Report to the Governor and Legislature, April 2024. https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/office-of-governmental-affairs-division/reports/2024/2023-ab-67-report.pdf ↑
Table 5.1, Pg. 42, CPUC, 2023 AB 67; Ibid. ↑
CPUC, Regulating Energy Efficiency: A Primer on the CPUC’s Energy Efficiency Programs, February 2016; Microsoft Word - Regulating Energy Efficiency_DRAFT_v001.docx (ca.gov) ↑
Originally under AB 270 (Bradford, Chapter 610, Statutes of 2013) but moved to PUC § 913.9 under SB 697 (Hertzberg, Chapter 612, Statutes of 2015) ↑
AB 270 (Bradford, Chapter 610, Statutes of 2013) ↑
Pg. 108-109; CPUC, Energy Efficiency Portfolio Report, May 2018; https://www.cpuc.ca.gov/-/media/cpuc-website/files/uploadedfiles/cpucwebsite/content/about_us/organization/divisions/office_of_governmental_affairs/legislation/2018/13-15-energy-efficiency-report-final.pdf ↑
PUC § 913 ↑
All CPUC reports to the Legislature may be found on the Office of Governmental Affairs website, here: https://www.cpuc.ca.gov/about-cpuc/divisions/office-of-governmental-affairs ↑
Bill Author
Bill Co-Author(s):