CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill
No. 61

Introduced by Assembly Member Pacheco

December 02, 2024

An act to add and repeal Section 3261 of the Public Utilities Code, relating to electricity, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 61, as introduced, Pacheco. Electricity and natural gas: legislation imposing mandated program and requirements: third-party review.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas corporations. The Public Advocate’s Office of the Public Utilities Commission is established as an independent office within the commission to represent and advocate on behalf of the interests of public utility customers and subscribers within the jurisdiction of the commission.
This bill would request the office to establish, by January 1, 2027, a program to, upon request of the Legislature, analyze legislation that would establish a mandated requirement or program or otherwise affect electrical or gas ratepayers, as specified. The bill would request the office to develop and implement conflict-of-interest provisions that would prohibit a person from participating in an analysis for which the person knows or has reasons to know that the person has a financial interest. The bill would establish the Energy Programs Benefit Fund in the State Treasury and continuously appropriate the moneys in the fund to the office to support the work of the office in providing analyses under the bill. The bill would repeal these provisions on January 1, 2031.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 (a) The Legislature finds and declares all of the following:
(1) There are an increasing number of proposals that mandate certain programs be paid by ratepayers of electrical and gas corporations.
(2) Many of the proposals would potentially result in positive outcomes that would be in the public interest.
(3) Those proposals providing benefits may also contribute to the cost and affordability of electricity and natural gas service.
(b) It is the intent of the Legislature to do all of the following:
(1) Promote affordable electricity and natural gas utility rates while also addressing the critical climate issues of the time, including the requirements for renewable and zero-carbon electricity and economywide decarbonization in law.
(2) Preemptively address the issue that electricity and natural gas utility rates are increasing.
(3) Analyze the estimated costs and efficacy of a new program or requirement imposed under proposed legislation that would be paid for by ratepayers of electrical and gas corporations to ensure the cost impact and potential benefits may be fully weighed and carefully considered before enacting the legislation.
(c) It is further the intent of the Legislature that the Public Advocate’s Office of the Public Utilities Commission conduct a systematic review of proposed programs or requirements imposed under proposed legislation that would be paid for by ratepayers of electrical and gas corporations to assist the Legislature in determining whether mandating a particular program or requirement is in the ratepayer’s interest, and for the Public Advocate’s Office of the Public Utilities Commission to publish a written analysis of the estimated cost and efficacy of each legislative proposal, including expert data.

SEC. 2.

 Section 3261 is added to the Public Utilities Code, to read:

3261.
 (a) For purposes of this section, the following definitions apply:
(1) “Electrical or gas corporation” means an electrical corporation, as defined in Section 218, or a gas corporation, as defined in Section 222, with more than 100,000 service connections.
(2) “Mandated program or requirement” means any of the following:
(A) A new requirement imposed on an electrical or gas corporation.
(B) A new program that would be paid for by the ratepayers of an electrical or gas corporation.
(C) A revision to an existing requirement imposed on an electrical or gas corporation or an existing program paid for by the ratepayers of an electrical or gas corporation.
(3) “Office” means the Public Advocate’s Office of the Public Utilities Commission established pursuant to Section 309.5.
(b) (1) The Legislature hereby requests that the office establish, by January 1, 2027, a program to, upon request of the Legislature and in a manner and pursuant to a timeline agreed to by the Legislature and the office, analyze legislation that would establish a mandated program or requirement or otherwise affect electrical or gas ratepayers, including relevant data on the following:
(A) Whether the legislation will increase electricity or natural gas utility rates, and, if so, the analysis shall assess the potential costs to all categories of ratepayers.
(B) The potential benefits to all categories of ratepayers resulting from the legislation, with a specific focus on tangible benefits related to the safe, reliable delivery of electricity or natural gas including whether the legislation is directly related to, or necessary for, the delivery of safe, reliable electricity and natural gas utility service.
(C) Similar mandated programs or requirements applicable at the time of the analysis, the costs associated with those mandated programs or requirements, and if those mandated programs or requirements are consistent with the state’s climate change policy requirements, including, but not limited to, reducing the emissions of greenhouse gases, the carbon neutrality targets set forth in Section 454.53 of this code or Section 38562.2 of the Health and Safety Code, and the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1).
(D) All existing legislatively mandated programs applicable at the time of the analysis that are paid for by the ratepayers of electrical and gas corporations.
(E) The impacts of the legislation on jobs, the economy, and communities that are identified as disadvantaged communities under Section 39711 of the Health and Safety Code or low-income communities as defined in Section 39713 of the Health and Safety Code.
(F) Whether the legislation is the most cost-effective and appropriate means to achieve the desired outcomes, including costs and benefits beyond the electricity or natural gas market and nonmonetary benefits, such as improvements in environmental quality, public health, and climate stability. If nonmonetary societal benefits are noted, the written analysis shall clearly indicate how all Californians would benefit.
(G) Whether other funding sources besides ratepayers of electrical or gas corporations, such as the General Fund, environmental funds, or other low-income programs, such as CalFresh, could be more appropriately used for the mandated programs or requirements.
(2) The request may be made by the chairperson of the appropriate policy or fiscal committee or their staff, the Speaker of the Assembly, or the President pro Tempore of the Senate, and the legislation shall be provided to the office for analysis.
(3) The office shall conduct each analysis based on the best available data at the time of the analysis. The state shall indemnify, defend, and hold harmless the office and its officers, directors, employees, subcontractors, agents, and expert partners for any claim arising out of the analysis.
(c) To avoid conflicts of interests, the office is requested to develop and implement conflict-of-interest provisions to prohibit a person from participating in conducting an analysis described in this section for which the person knows or has reasons to know that the person has a material financial interest, including, but not limited to, a person who has a consulting or other agreement with another person or organization that would be affected by the legislation.
(d) To effectively support the office for its work under this section, there is hereby established in the State Treasury the Energy Programs Benefit Fund. Notwithstanding Section 13340 of the Government Code, moneys in the fund are hereby continuously appropriated to the office to support the work of the office in providing analyses under this section.
(e) This section shall remain in effect only until January 1, 2031, and as of that date is repealed.