AB 745: Electricity: climate credits.

Session Year: 2025-2026
House: Assembly
Latest Version Date: 2025-05-30

Current Status:

In Progress

(2025-09-10: Ordered to inactive file at the request of Senator Allen.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

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 California Global Warming Solutions Act of 2006 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 pursuant to a market-based compliance mechanism.

Existing law vests the Public Utilities Commission with 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 be credited directly to residential, small business, and emissions-intensive trade-exposed retail customers of the electrical corporation, commonly known as the California Climate Credit.

This bill would require the credit provided to residential customers of an electrical corporation to be provided on the bills of those customers for the months of July, August, and September of each year, or as otherwise directed by the commission to address extreme, unforeseen, and temporary circumstances. The bill would require the credit to be volumetric, rather than independent of consumption.

Under existing law, a violation of the Public Utilities Act, or of an order, decision, rule, direction, demand, or requirement of the commission, is a crime.

Because the provisions of this bill would be part of the Public Utilities Act, and a violation of a commission action implementing its 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 vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission, under specific circumstances, and upon application by an electrical corporation, to issue financing orders to support the issuance of recovery bonds to finance costs, in excess of insurance proceeds, incurred, or that are expected to be incurred, by an electrical corporation, excluding fines and penalties, related to wildfires, as provided.This bill would authorize the commission, upon application by an electrical corporation to the commission for recovery of costs and expenses related to the undergrounding of utility infrastructure, or in a proceeding to recover costs and expenses in rates related to the undergrounding of utility infrastructure, and, if the commission finds some or all of the costs and expenses to be reasonable, to issue financing orders to support the issuance of recovery bonds to finance costs, in excess of insurance proceeds, incurred, or that are expected to be incurred, by an electrical corporation, related to the undergrounding of utility infrastructure, as provided.This bill would prohibit the commission from allowing a large electrical corporation, as defined, to include in its equity rate base infrastructure undergrounding amounts, as defined.Under existing law, a violation of the act, or of an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be part of the act, and a violation of a commission action implementing its 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.

Discussed in Hearing