Staff Report Item 5:
To: Ava Community Energy Authority
From: Sam Sadle, Principal Legislative Manager
Subject: 2026 California Legislative Preview
Date: March 6, 2026
_________________________________________________________________ Summary/Recommendation
This staff report provides the Marketing, Regulatory, and Legislative sub-committee with an overview of the current state of play in the California legislature and previews future Board action to take legislative positions at the March and April Board meetings.
This is informational. No action is required.
Financial Impact
N/A
Analysis and Context
This presentation provides a summary of the current state of play in the California Legislature as it relates to legislative and budget proposals that may have an impact on Ava Community Energy and our Legislative Program. The presentation also provides frameworks through which to analyze the various proposals working through the legislature and background ahead of Board position proposals in March (SUPPORT: AB 1761 and SB 1138) and April (TBD).
Attachments (if applicable)
Presentation entitled “2026.03.06 2026 MRL Item 5 2026 California Legislative Preview” 2026 California Legislative
Preview
Sam Sadle, Kendall Downie, Dominic Faria – March 6, 2026 2026 California Legislative Timeline
2 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
2026 Ava Legislative Review Process
83 bills related to our JPA
Securing electrical energy
supply
Addressing climate change by
reducing energy related
greenhouse gas emissions
Promoting electrical rate price
stability
Fostering local economic
benefits such as jobs creation,
community energy
programs, and local power
development
Promot[ing] the development
and use of a wide range of
renewable energy sources and
energy efficiency programs 3
Full universe of bills Today: Short list of bills
that demand further
analysis
37 bills related to the Ava
Legislative Program
Making Electricity More
Affordable
Protecting Community
Choice
Accelerating Decarbonization
Promoting Local
Development
Increasing Bill Transparency
and Understanding
April: Bill position
recommendations
3 criteria
Directly impacts our
operations or legislative
program
Supports the JPA's vision of an
affordable, sustainable, and
local energy ecosystem and
has broad-based support.
Ava's perspective has specific
resonance with key
decisionmakers and could
impact the legislative language
or path forward.
Full Universe of Bills
AB 13 Ransom (D) PUC membership and reporting
AB 34 Patterson (R) Extends the authority of POUs to count large hydro towards RPS AB 61 Pacheco (D) Require PAO to analyze ratepayer impacts of mandated programs AB 705 Boerner (D) Creates independent PUC audit office AB 706 Aguiar-Curry (D) Fire fuel reduction procurement program AB 710 Irwin (D) Dynamic pricing and advanced metering mandate AB 942 Calderon (D) Changes climate credit
AB 1016 Gonzalez (R) State certification exemption for geothermal power plants AB 1020 Schiavo (D) Requires IOUs to report taxpayer funding AB 1117 Schultz (D) Require IOUs to offer optional dynamic rate AB 1156 Wicks (D) Updates farmland solar-use easement statute AB 1553 Connolly (D) Spot bill -- CEQA reform
AB 1577 Bauer-Kahan (D) Data Center Monthly Reporting
AB 1677 Boerner (D) Require IOUs to cut rates by 25%
AB 1761 Rogers (D) PCIA data transparency
4 Full Universe of Bills
AB 1774 Boerner (D) Spot bill -- IOU rates
AB 1787 Schultz (D) Require IOUs to offer a dynamic tariff if smart meter infrastructure is in place AB 1791 Sanchez (R)
Prohibits CARB from adopting regulations that would add more than 2 cents to a gallon of gas or $2,000 to a home
AB 1942 Bauer-Kahan (D) Restrictions on class 2 and class 3 ebikes AB 1975 Schultz (D) PUC to consider of maintenance costs for IOU structure siting decisions AB 1995 Patel (D) State Fire Marshal lithium battery working group AB 2057 DeMaio (R) Prohibits city and counties from implementing gas bans AB 2111 Papan (D) Transmission planning alignment with affordability and FERC Order 1920 AB 2175 Garcia (D) Removes advanced electricity storage from smart grid deployment objectives AB 2181 Petrie-Norris (D) Requires PUC commission diversity AB 2182 Irwin (D) Creates IOU run industrial decarbonization program AB 2234 Papan (D) CEQA exemptions for geothermal exploratory projects AB 2239 Carillo (D) Infrastructure-constrained energization areas and IOU energization timelines AB 2266 Schultz (D) RA valuation standardization
AB 2369 Rogers (D) Spot bill
5 Full Universe of Bills
AB 2383 Zbur (D) Require creation of a large load customer class and rate schedule AB 2396 Harabedian (D) Spot bill
AB 2408 DeMaio (R) Require all PPPs be detailed on bill and an annual report to each ratepayer AB 2459 Wallis (R) Spot bill -- climate credit
AB 2463 Petrie-Norris (D) Require PUC to study IOU return on equity AB 2464 Wicks (D) Require PUC to study clean firm's role in 2045 goal AB 2493 Petrie-Norris (D) Require IOUs to have an interconnection auditor AB 2508 Hoover (R) Creates PPP vehicle to spend GGRF funds on EE programs run by RENs AB 2516 Petrie-Norris (D) California Grid Manufacturing Initiative AB 2518 Sharp-Collins (D) Spot bill -- utilities
AB 2554 Addis (D) Spot bill -- utilities
AB 2589 Irwin (D) Requires PUC to analyze OBBBA and adjust rates to reflect impacts AB 2611 Bains (D)
Require PUC to develop rates that do not impose an "unreasonable hardship" on low-income communities in hot climate zones
AB 2612 Schultz (D) Building standards for plug-in solar systems AB 2647 Calderon (D) Bans new nuclear power plants without fuel reprocessing capacity or adv tech 6 Full Universe of Bills
AB 2688 Zbur (D) Spot bill – offshore wind
AB 2699 Zbur (D) Spot bill -- utilities
AB 2700 Gallagher (R) Spot bill -- rates and air pollution AB 2710 Bauer-Kahan (D) Intent of legislature to make changes in IOU bankruptcy processes AB 2748 Quirk-Silva (D) Revert EV regulations to 2022 state building code for BMR housing AB 2762 Boerner (D) Spot bill -- rates
SB 222 Weiner (D) Heat pump water heater and HVAC system permitting streamlining SB 327 McNerney (D)
Prohibits IOUs from using ratepayer funds for advocacy activities related to municipalization
SB 330 Padilla (D) Transmission infrastructure financing pilots SB 332 Wahab (D) Study breaking up IOUs
SB 453 Stern (D) Microgrid incentive program
SB 742 Perez (D) IOUs to remove unused transmission facilities SB 842 Stern (D) Report on firm zero-carbon resources
SB 868 Wiener (D) Plug-in solar interconnection exemption SB 875 Wiener (D) PG&E municipalization advancement 7
Full Universe of Bills
SB 886 Padilla (D) Large load cost shift prevention
SB 887 Padilla (D) Large load CEQA application
SB 905 Becker (D) Spot bill -- Non-bypassable charges
SB 913 Becker (D) Spot bill
SB 924 Hurtado (D) PUC to consider affordability when looking at home weatherization SB 925 McNerney (D) Spot bill -- Energy efficiency
SB 943 Becker (D) Industrial billing and NBC/TAC reform SB 978 Perez (D) Special tariff for large load customers SB 1035 Strickland (R) Suspend gas tax for one year
SB 1097 Weiner (D) Spot bill -- Energy permitting
SB 1138 Padilla (D) RA transactability
SB 1158 Stern (D)
Adds status of utility transmission upgrades and electrical grid infrastructure to Reliability Planning Assessment
SB 1167 Blakespear (D) Clarifies ebike definition and bans advertising of non-eligible bikes SB 1168 McNerney (D) Data center gas usage surcharge
SB 1187 Durazo (D) Brown Act meeting updates
SB 1215 Cortese (D) Require IOUs to 3x the number of multifamily level 2 and 3 chargers 8 Full Universe of Bills
SB 1219 Strickland (R)
Requires PUC to consider discontinuation of nonperforming EE programs within 180 days
SB 1233 Allen (D) Spot bill -- rates
SB 1245 Stern (D) Intent of legislature to address cost containment of renewable integration into grid SB 1282 Becker (D) V2G standards
SB 1295 Stern (D)
Requires PUC to consider procurement of 40GW of storage and allocate procurement to LSEs
SB 1354 Archuleta (D) Spot bill -- renewable energy
Budget
Trailer Dept of Finance
Reallocates outstanding funding from the Distributed Energy Backup Assets (DEBA) program to the Demand Side Grid Support (DSGS) program 9 2026 Ava Legislative Review Process
10 Full universe of bills Today: Short list of bills
that demand further
analysis
37 bills related to the Ava
Legislative Program
Making Electricity More
Affordable
Protecting Community
Choice
Accelerating Decarbonization
Promoting Local
Development
Increasing Bill Transparency
and Understanding
April: Bill position
recommendations
3 criteria
Directly impacts our
operations or legislative
program
Supports the JPA's vision of an
affordable, sustainable, and
local energy ecosystem and
has broad-based support.
Ava's perspective has specific
resonance with key
decisionmakers and could
impact the legislative language
or path forward.
83 bills related to our JPA
Securing electrical energy
supply
Addressing climate change by
reducing energy related
greenhouse gas emissions
Promoting electrical rate price
stability
Fostering local economic
benefits such as jobs creation,
community energy
programs, and local power
development
Promot[ing] the development
and use of a wide range of
renewable energy sources and
energy efficiency programs
Making Electricity More Affordable
11 Rate affordability via PUC process and
consideration changes
Transmission and distribution
affordability via process
changes and faster timelines
AB 1975 – Schultz
Require PUC to consider
maintenance costs when
approving infrastructure
spending
AB 2266 – Schultz
Require PUC to set a
single RA value for all
types and duration of
generation contracts
AB 2463 – Petrie-Norris
Require PUC to study IOU
return on equity and
propose how to link
earnings to outcomes
AB 2611 – Bains
Require PUC to develop
rates that do not impose an
"unreasonable hardship" on
low-income communities
in hot climate zones
SB 924 – Hurtado
Require PUC to consider
costs and affordability in
home weatherization
programs
AB 2111 – Papan
Transmission planning
alignment with affordability
and FERC Order 1920
AB 2239 – Carillo
Require PUC to designate
“infrastructure-constrained
energization areas” to
expedite development and
interconnection
AB 2493 – Petrie-Norris
Require IOUs to have an
interconnection auditor
AB 2516 – Petrie-Norris
Require GOBiz to procure or
manufacture grid
infrastructure in bulk and
sell it to IOUs
SB 742 – Perez
IOUs to remove unused
transmission facilities
Protecting Community Choice
12 CalCCA-sponsored Bills
AB 1761 - Rogers
Require the PUC to ensure that all data relied on in any decision or ruling, or in any proposal or analysis provided by an electrical corporation, the commission’s staff, or any other party, for the determination or application of a calculation methodology for the Power Charge Indifference Adjustment (PCIA) be made available to LSEs and ratepayer advocates.
SB 1138 – Padilla
Require the PUC to permit LSEs to demonstrate compliance with RA requirements by selling to, or otherwise making transactions with, another LSE to meet not more than 25% of its compliance obligation, on a short-term basis, and to permit those transactions to be denominated in the same unit of time used to denominate RA compliance requirements.
Protecting Community Choice
13 Managing data center growth
AB 1577 – Bauer-Kahan
Require monthly energy and water use
reporting from all data centers
AB 2383 – Zbur
Creates large load tariff (>20 MW) to
prevent costs shifts and require facilities
to pay for interconnection over 15 years
SB 886 – Padilla
Require PUC to create large load definition
and tariff that prohibits costs shifts,
requires 50% onsite zero-carbon storage,
participation in demand response (among
other requirements)
SB 887 – Padilla
Subjects all data centers to CEQA unless
they install 100% zero-carbon energy
storage (4 hrs) and procure 100% zero-carbon generation (at least 75% net new) within 5 years (among other requirements)
SB 978 – Perez
Require PUC to create large load tariff (>75
mw) with upfront T&D upgrade payments
and require all backup generation to be
onsite solar paired with backup batteries
Accelerating Decarbonization
14 Supporting decarbonized utility-scale
generation
Supporting industrial and
large load decarbonization
AB 1156 – Wicks
Updates the Solar-Use
Easement law to encourage
development of solar on
water-constrained farmland
AB 2464 – Wicks
Require the PUC to do a
study on clean firm zero-carbon and what is needed
to achieve state’s 2045
goals
SB 1295 – Stern
Requires PUC to consider
procurement of an
additional 40GW of storage
and allocate procurement
to LSEs
SB 943 – Becker
Directs PUC to develop new
TAC and NBC regimes that
encourage industrial
decarbonization and
electrification
SB 1168 – McNerney
Impose a surcharge on all
gas generation used by data
centers and use funds to
support CARE/FERA
Promoting Local Development
15 Distributed energy resources Transportation electrification SB 868 – Weiner
Exempts portable solar
generation (max output of
1,200 watts) from
interconnection
requirements
AB 1942 – Bauer-Kahan
Require class 2 and 3
ebikes to be registered with
the DMV and plated
SB 1167 – Blakespear
Clarifies the definition of
ebikes and bans advertising
of non-eligible vehicles as
ebikes
SB 1215 – Cortese
Require IOUs to 3x the
number of level 2 and 3
vehicle chargers in
multifamily housing and
recover costs as O&M
SB 1282 – Becker
Require the Energy
Commission to study and
adopt Vehicle-to-Grid (V2G)
regulations
SB 222 – Weiner
Require local communities
to adopt heat pump water
heater and HVAC system
permitting streamlining
AB 2612 – Schultz
Requires the Building
Standards Commission to
adopt mandatory standards
for portable solar systems
Budget trailer – DSGS
Reallocates remaining
DEBA funding to DSGS
(~$20 million)
Increasing Bill Understanding and Transparency
16 Dynamic rates
AB 1787 – Schultz
Require IOUs to offer
dynamic pricing if smart
meter infrastructure is in
place
AB 710 – Irwin
Require IOUs to offer
dynamic pricing and require
IOUs and POUs to plan for
smart meter rollout to all
customers
Other
17 Brown Act updates PUC reform
SB 1187 – Durazo
Defines ”majority” for
purposes of open meetings
requirements
AB 2181 – Petrie-Norris
Requires Governor to
consider geographic
diversity in PUC
appointments
AB 13 – Ransom
Requires Governor to
consider diversity in PUC
appointments and PUC to
publish an annual
“affordability” report
IOU spending restrictions
SB 327 – McNerney
Prohibits IOUs from using
ratepayer funds for
advocacy activities related
to municipalization
20(!!!) spot or intent of legislature bills
AB 2396 – Harabedian
Spot bill – “Energy”
AB 1677 – Boerner
Intent of legislature to
reduce customer bills by
25%
2026 Ava Legislative Review Process
18 Full universe of bills Today: Short list of bills
that demand further
analysis
37 bills related to the Ava
Legislative Program
Making Electricity More
Affordable
Protecting Community
Choice
Accelerating Decarbonization
Promoting Local
Development
Increasing Bill Transparency
and Understanding
April: Bill position
recommendations
3 criteria
Directly impacts our
operations or legislative
program
Supports the JPA's vision of an
affordable, sustainable, and
local energy ecosystem and
has broad-based support.
Ava's perspective has specific
resonance with key
decisionmakers and could
impact the legislative language
or path forward.
83 bills related to our JPA
Securing electrical energy
supply
Addressing climate change by
reducing energy related
greenhouse gas emissions
Promoting electrical rate price
stability
Fostering local economic
benefits such as jobs creation,
community energy
programs, and local power
development
Promot[ing] the development
and use of a wide range of
renewable energy sources and
energy efficiency programs
What comes next? Bill review and positions
• March Board informational item:
o Present 2026 legislative preview to the
MRL, CAC, and Board for feedback
o Continue cross-functional and cross-CCA legislative analysis 19 • March Board action items:
o Propose SUPPORT AB 1761 PCIA
transparency
o Propose SUPPORT SB 1138 RA
transactability
• April Board action items:
o Propose annual updates to the Ava
Legislative Program
o Propose additional bill positions
(Support, Support If Amended,
Oppose Unless Amended, Oppose) to
MRL, ExCo, CAC, and Board
What comes next? Legislative session
• April 24: First house policy committee
deadline (fiscal)
• May 1: First house policy committee
deadline(non-fiscal)
• May 15: First house suspense deadline
• May 29: First house passage deadline
• Throughout May: Budget trailer hearings
• June 15: Budget deadline
20 First house
• July 2: Second house policy committee
deadline
• August 14: Second house suspense
deadline
• Aug 31: Second house floor passage
deadline
• September 30: Veto/signature deadline
Second house