Staff Report Item 13
Staff Report Item 13
To: Ava Community Energy Authority
From: Sam Sadle
Subject: Update on outcomes of the 2025 California legislative session and a look ahead to 2026
Date: November 19, 2025
__________________________________________________________________ Summary/Recommendation
This staff report updates the Board on the outcomes of the 2025 California legislative session to support increased Board visibility into our legislative actions. It also discusses expectations for the 2026 session and associated potential impacts on Ava.
Financial Impact
N/A
Analysis and Context
N/A
Attachments
A. Slide deck “2025 California End-of-Session Legislative Update” Ava 2025
California End-of-Session
Legislative Update
November 19, 2025
Attachment Staff Report Item 13A
2 Agenda
• 2025 California legislative session in review
• Individual bill updates
• Cap and Invest spending breakdown
• 2026 Preview
Attachment Staff Report Item 13A
2025 California Legislative Timeline
3 January
6: Legislature reconvenes
10: Governor submits
budget
February
21: Bill introduction
deadline
March April
May
2: Policy cmtes move
fiscal bills to fiscal cmtes
(1st chamber)
9: Policy cmtes move
non-fiscal bills to floor
(1st chamber)
June
6: Last day for bills to be
passed by 1st house
15: Budget bill must be
passed
July
18: Policy cmtes move
bills to fiscal cmtes or
floor (2nd chamber)
August
29: Fiscal cmtes move
bills to floor (2nd
chamber)
September
12: Last day for each
chamber to pass bills
October
12: Last day for Governor
to sign/veto bills
November December
We are here
Attachment Staff Report Item 13A
2025 Session in Review
4 28 bills flagged for continued
attention
12 positions
(10 support, 2 Support if Amended)
4 signed: SB254,
SB283, SB707, AB39
2 vetoed: AB44,
SB541
AB 1207 and
SB 840 extend
Cap-and-Trade to
2045
• Renamed "Cap-and-Invest"
• Significant changes
to GGRF spending
(see further slides)
• Reallocates some
credits from
gas customers to
electric utilities
Attachment Staff Report Item 13A
5 2025 Session in Review - Wins
SB283 (battery
safety):
Ava language
adopted into
bill
SB541 (load
modification):
Ava language
adopted into
bill
(subsequently
removed)
SB254
(affordability):
Autonomy
threat
removed
AB222 (data
centers):
Hostile
amendment
rejected
Signed into law Veto'd on CalCCA
recommendation Signed into law 2 year bill
Attachment Staff Report Item 13A
6 Bill # (Author) Description Ava Position Bill Status
(progress through leg)
Making Electricity More Affordable
AB 99
(Ta-R)
Prohibits an Investor-Owned Utility (IOU) from proposing a rate increase above the level of inflation for any general rate cycle, except for cases related to safety improvements, system upgrades, or increased costs of materials.
Monitor Failed Deadline in Asm
Appr. Suspense File
(2-year bill)
AB 729
(Zbur-D)
AB 1207 (Irwin-D)
Provides bill relief by reallocating the Climate Credit to align with periods of highest statewide energy usage. Rather than a single payment in April, residential customers will receive the electricity Climate Credit in August and September and the natural gas Climate Credit in February.
However, some elements of the concepts above were included below...
AB 729 was later incorporated into AB 1207, which extends and renames the cap-and-trade program and directs the CPUC to spread resulting customer credits across up to four high-billed months, while also adding new outreach requirements and dedicating revenues to the Transmission Accelerator Fund.
Support Failed Deadline in Sen.
E, U, & C Committee
(2-year bill)
AB 1207 Signed into
Law
SB 254
(Becker-D)
Joint Senate and Assembly Affordability package; Establishes the California Transmission Infrastructure Accelerator within GO-Biz and the I-Bank to finance and expedite critical transmission projects. Creates a revolving fund and authorizes bonds and other financial tools to connect developers with public and private capital. Consolidates affordability measures originally split across SB 254 and AB 825, with SB 254 serving as the principal vehicle for infrastructure financing and transmission acceleration.
Support Signed into Law
Attachment Staff Report Item 13A
7 Bill # (Author) Description Ava Position Bill Status
(progress through leg)
Protecting Community Choice
Accelerating Decarbonization (Local Permitting)
AB 39
(Zbur-D)
Requires that no later than 2030 cities and counties with over 75,000 residents adopt an electrification / decarbonization / community energy plan or integrate these subjects into their general plan.
Support Signed into Law
AB 306
(Schultz-D, co:Wicks-D)
October 2025 to June 2031, places restrictions on local changes to building standards (including reach codes) for residential units, emphasizing uniformity and the protection of health, safety, and home hardening.
Monitor Language was inserted
into approved budget
bill (AB 130)
SB 282
(Wiener-D)
Requires municipalities to streamline application and certification processes for residential heat pump systems.
Support Failed Deadline in Sen.
Appr. Suspense File
(2-year bill)
Accelerating Decarbonization (Battery Storage)
SB 283
(Laird-D)
Requires BESS developers to consult with local fire departments and undergo inspections before operation. Also directs the State Fire Marshall to "review and consider proposing" changes to the state building codes that restrict the location of storage projects to outdoors or in dedicated use, noncombustible buildings.
Support (originally
Support if Amended)
Signed into Law
Attachment Staff Report Item 13A
8 Bill # (Author) Description Ava Position Bill Status
(progress through leg)
Accelerating Decarbonization
AB 915
(Petrie-Norris-D)
Originally introduced as a clean energy siting and funding bill tied to the Clean Energy Reliability Investment Plan (CERIP), AB 915 was amended into a dam safety measure. Its earlier clean energy provisions were absorbed into the SB 254 affordability and infrastructure package.
Monitor (originally
Support)
Vetoed
SB 698
(McNerney-D)
Authorizes CEC to establish Distributed Energy Resources (DER) equipment lists and adopt guidelines to further energy goals including solar systems, energy storage, bidirectional charging, and charging stations.
Support Failed Deadline in Asm
Appr. Suspense File (2-
year bill)
Promoting Local Development (Vehicle Charging)
AB 1423
(Irwin-D) Originally expanded CEC's reliability and uptime regulations to a subset of publicly-funded/utility-funded chargers and provided authority for CEC to impose civil penalties for each violation. Superseded by CEC regulations and amended to focus only on EV charger payment definitions.
Monitor Signed into Law
SB 314
(Padilla-D)
Allows chargers to be self-certified by installers and manufacturers be entered into operation during the state inspection period. Provides exemptions from some state laws for chargers only available to certain individuals.
Support Failed Deadline in Sen.
Appr. Suspense File
(2-year bill)
Attachment Staff Report Item 13A
9 Bill # (Author) Description Ava Position Bill Status
(progress through leg)
Promoting Local Development (Data Centers)
AB 222
(Bauer-Kahan-D)
Requires biannual reporting of power usage effectiveness (PUE) ratios from large data centers to the CEC, and directs the 2027 Integrated Energy Policy Report to include projections of data center load growth and grid impacts.
Mandates a CPUC assessment of potential cost shifts from new data center loads, including procurement and transmission costs, with recommendations to mitigate impacts.
Support if Amended Failed Deadline in Sen.
Appr. Suspense File
(2-year bill)
SB 57
(Padilla-D co:
McNerney-D)
Authorizes the CPUC to prepare an assessment by January 2027 on whether new data center loads are creating cost shifts for other utility customers. The assessment may review procurement, transmission, and distribution costs, and must identify mitigation opportunities if substantial shifts are found.
Monitor Signed into Law
Increasing Bill Transparency and Understanding (Dynamic Rates) AB 44
(Schultz-D)
Requires the CEC to define and publicize load modification protocols by 12/2026, allowing Load Serving Entities (LSEs) to adjust their electrical demand forecasts. The bill aims to improve grid reliability by incorporating flexible demand tools, supporting decarbonization, and helping LSEs manage their resource adequacy obligations.
Support Vetoed
SB 541
(Becker-D)
Requires CEC via the Integrated Energy Policy Report (IPER) to establish load shifting targets allocated to each retail supplier based on its relative share of statewide load and the CEC's estimate of its load shifting potential.
Requires CEC to work with the CPUC to identify barriers to meeting these estimates.
Support if Amended Vetoed
Attachment Staff Report Item 13A
10 Bill # (Author) Description Ava Position Bill Status (progress through leg)
Bills Concerning IOUs
AB 740
(Harabedian-D)
Mandates IOUs report on their efforts to achieve load shifting goals. Directs the CEC to develop a strategic plan to facilitate the large-scale deployment of Virtual Power Plants.
Monitor Vetoed
AB 1117
(Schultz-D)
Requires the implementation of dynamic pricing for all commercial and residential customers by 2030. CCA participation in dynamic pricing is voluntary but requires gen rate alignment with market conditions while preventing cost shifts between bundled and unbundled customers.
Monitor Failed Deadline in Sen.
Appr. Suspense File
(2-year bill)
AB 1167
(Berman-D,
Addis-D)
Prohibits IOUs from using ratepayer funds for activities like political influence or promotional advertising that don't directly benefit customers.
Requires these utilities to disclose whether advertising costs are covered by ratepayers or shareholders.
Monitor Signed into Law
SB 24
(McNerney-D)
Prohibits IOUs from using ratepayer funds to undertake political influence activities, make charitable contributions, or lobby against municipalization.
Mandates utilities to report detailed expense data to ensure compliance and requires service restoration during poor air quality conditions.
Monitor Vetoed
SB 332
(Wahab-D)
Requires the CEC to evaluate the transition of the IOU model to a successor entity, implements disconnection transparency reporting, requires third party equipment audits, and prohibits ratepayer funds to be used for wildfire mitigation infrastructure investment, among other changes.
Monitor Failed Deadline in Asm.
Appr. Suspense File
(2-year bill)
Attachment Staff Report Item 13A
11 Bill # (Author) Description Ava Position Bill Status (progress through leg)
Bills Concerning IOUs (cont.)
SB 500
(Stern-D)
Originally directed the CPUC to develop and track IOU performance metrics and financial incentives to better align utility investments with cost-effective, safe, and reliable service.
Amended to instead allow IOUs to satisfy data sharing requests from energy users to be addressed by sharing aggregated energy usage data via any tool permitted by the CEC.
Monitor Signed into Law
Board Operations
AB 259
(Rubio-D)
Extends Brown Act alternative teleconferencing rules indefinitely (currently scheduled to expire in 2026).
Support Failed Deadline on
Sen. Floor
(2-year bill)
SB 239
(Arreguín-D)
SB 707 (Durazo-D)
SB 707 (supplanting SB 239) shifts from a narrow subsidiary-body teleconferencing bill to a broad Brown Act modernization incorporating elements from SB 239 and AB 259.
Particularly relevant to Ava, the bill extends Brown Act alternative teleconferencing through January 2030 (currently scheduled to expire in January 2026).
Support SB 707 Signed into
Law
Attachment Staff Report Item 13A
12 Bill # (Author) Description Ava Position Bill Status (progress through leg)
Other Ava Priority Bills
AB 13 (Ransom-D)Originally required geographic representation for CPUC Commissioners, a legislative liaison, and annual reports on affordability, case resolutions, and rate decisions. Amended to instead require the Governor and Senate to 'consider' regional diversity in appointments, while retaining the other provisions.
Monitor Failed Deadline in Sen.
Appr. Suspense File
(2-year bill)
AB 942
(Calderon-D)
Repurposed from a NEM reform bill into a Climate Credit bill; now requires GHG allowance revenues to be credited directly to customers, allows up to 15% for clean energy projects, and excludes non-CARE/FERA residential customers with annual bills under $300 from receiving the credit.
Monitor Halted in Senate policy
committee
(2-year bill)
AB 1260
(Ward-D)
Requires the CPUC to modify customer renewable energy subscription programs and requires CEC to evaluate community solar+storage as a load-modifying resource.
Monitor Failed Deadline in Asm.
Appr. Suspense File (2-
year bill)
SB 453
(Stern-D)
Directs CPUC to review the status of unallocated Microgrid Incentive Program funds by January 2026; requires remaining funds to prioritize vulnerable communities and critical infrastructure in areas with repeated deenergization events. Ava-supported SGIP language removed from bill.
Monitor (originally
Support)
Failed Deadline on
Sen. Floor
(2-year bill)
SB 842
(Stern-D)
Directs the CPUC, in coordination with CAISO, to produce a report by 12/26 evaluating opportunities and needs for firm zero-carbon resources to support local and system reliability over the short, mid, and long term. The report must assess key resource attributes, identify barriers, and recommend solutions to better integrate firm zero-carbon resources into California’s energy planning and markets.
Monitor Failed Deadline in Asm.
Appr. Suspense File
(2-year bill)
Attachment Staff Report Item 13A
13 Program Pre extension per year
(≈ $4 billion per year)
2026-2045 per year
High Speed Rail 25% ≈ $1 billion $1 billion
Affordable Housing and Sustainable Communities (AHSC)
Program
20% ≈ $800 million $800 million
Transit and Intercity Rail Capital Program (TIRCP) 10% ≈ $400 million $400 million Low Carbon Transit Operations Program (LCTOP) 5% ≈ $200 million $200 million CalFire Up to $200 mil $200 million
Safe and Affordable Drinking Water Fund in DAC/low-income communities
5% ≈ $200 million; but
no more than $130 mil
$130 million
CARB Community Air Protection Programs $0 $250 million
At the Legislature's discretion $0 $1 billion
Cap and Invest Spending
Attachment Staff Report Item 13A
14 Cap and Invest Spending
Winners:
• The California legislature gains increased discretion • Programs that received funding guarantees
o High speed rail and public transit
o CARB and affordable housing programs
o Wildfire mitigation and climate adaptation
Missed out on fixed GGRF funding:
• EVs and EV infrastructure
• Distributed energy and demand flex incentives
Impact:
• Expect yearly fights over the legislature's $1 billion pot of funding • Limited impact on existing Ava funding streams, but could open new opportunities depending on annual appropriations
Attachment Staff Report Item 13A
2026 California Legislative Timeline
15 January
5: Legislature reconvenes
10: Governor submits
budget
February
20: Bill introduction
deadline
March April
24: Policy cmtes move
fiscal bills to fiscal cmtes
(1st chamber)
May
1: Policy cmtes move
non-fiscal bills to floor
(1st chamber)
29: Last day for bills to be
passed by 1st house
June
15: Budget bill must be
passed
July
2: Policy cmtes move bills
to fiscal cmtes or
floor (2nd chamber)
August
14: Fiscal cmtes move
bills to floor (2nd
chamber)
31: Last day for each
chamber to pass bills
September
30: Last day for Governor
to sign/veto bills
October November December
We are here
Attachment Staff Report Item 13A
16 2026 Expected Issues • Gov Newsom very
defensive of existing
CPUC/CEC authorities
and workload (see vetos)
• IOUs wary of changes to
T&D system (see 541)
• State approach to data
centers remains in flux
• CCAs have growing clout
(see language changes)
2025 Learnings
• Unresolved leg issues from
2025: RA transactability, data
centers, energy efficiency
program oversight, dynamic
rates/load modification
• New issues: Response to Federal
changes, funding gaps left by
new cap-and-trade (DSGS and
others), structural deficits ($17-
25B through 28/29)
• Potential CCA initiatives: T&D
push, PCIA reform
• Possible Senate U&E changes
2026 look forward
Attachment Staff Report Item 13A