2026 California Legislative Wrap-Up
Marketing, Regulatory, and Legislative Subcommittee
September 18, 2026
2026 End of Session Legislative Update
2 AB 1761
PCIA
Data Transparency
SB 1138
RA Transactability
CalCCA Sponsored Bills Ava Support Bills
SB 222
Heat pump
permitting
SB 868
Plug-in solar
SB 913
RA for DERs
AB 1975
Grid utilization
AB 2389
Solar property tax
exclusion
AB 2266
Standard RA
valuation
AB 1577
Data center
reporting
SB 1168
Data center tariff
study
On Governor's desk Did not advance Successfully amended Ava SIA Bills
CalCCA Sponsored Bills
3 SB 1138 Padilla – Requires the PUC to permit LSEs to demonstrate compliance with RA requirements by transacting RA obligations on an hourly basis. o Passed Senate 31-0-9 (May 19), Passed Assembly Energy Committee (June 10) o Next step: None; not advancing this year
1st Chamber -
Policy
1st Chamber -
Approps
1st Chamber -
Floor
2nd Chamber -
Policy
2nd Chamber -
Approps
2nd Chamber -
Floor
Governor's
Desk Signed into law
1st Chamber -
Policy
1st Chamber -
Approps
1st Chamber -
Floor
2nd Chamber -
Policy
2nd Chamber -
Approps
2nd Chamber -
Floor
Governor's
Desk Signed into law
AB 1761 Rogers – Requires the PUC to ensure that all data relied on to determine the PCIA be made available to LSEs and ratepayer advocates. o Passed Senate 40-0
o Next step: Governor's desk
Support
4 SB 222 Wiener — Standardizes and streamlines local permitting for residential heat pump water heaters and heat pump HVAC systems, including by requiring an option for asynchronous inspections and online automated permitting.
Major changes since initial drafting:
• Localities can offer "remote" inspections in lieu of "asynchronous" Support: Oppose:
Heat Pump Water Heater and HVAC Streamlining
• Passed Assembly 60-8-11 (Aug 24)
• Next step: Governor's desk
Process:
1st Chamber -
Policy
1st Chamber -
Approps
1st Chamber -
Floor
2nd Chamber -
Policy
2nd Chamber -
Approps
2nd Chamber -
Floor
Governor's
Desk Signed into law
Support
5 SB 913 Becker — When introduced, required the PUC to enhance pathways for aggregated DERs to qualify as RA capacity and to allow LSEs to include those resources in RA compliance and procurement. Also requires coordination with state agencies and the ISO to update market participation frameworks to support aggregated DERs.
Ava proposed amendments – adopted: Allows (but does not require) CCAs to use DERs to meet RA obligations.
Major changes since initial drafting:
• Removes language requiring "reasonable flexibility" to accommodate aggregated DERs in new resource procurement or RA participation rules. Retains language "putting the burden" on DER providers to ensure they can deliver promised DR or supply when called upon.
Support:
Distributed Energy Resources for Resource Adequacy
Process:
• Passed Assembly 59-3-17 (Aug 25)
• Next Step: Governor's desk
Oppose:
1st Chamber -
Policy
1st Chamber -
Approps
1st Chamber -
Floor
2nd Chamber -
Policy
2nd Chamber -
Approps
2nd Chamber -
Floor
Governor's
Desk Signed into law
Support
6 SB 1168 McNerney — When introduced, the bill imposed annually set surcharges on electricity and natural gas consumed by data centers (including energy used to generate power for them), required utilities to collect these charges and deposit the revenues into a dedicated fund to help offset wildfire-related costs currently embedded in customer rates.
Major changes since initial drafting:
• Removed all language imposing annual surcharges, instead requires the PUC to assess opportunities for rate structures to ensure data centers pay their fair share and alleviate cost pressures on residential ratepayers. • Note: All changes to tariffs and planning consolidated to AB 2383 and SB 886. Data reporting in (Ava supported) AB 1577
Support: Oppose:
Data Center Rate Study
1st Chamber -
Policy
1st Chamber -
Approps
1st Chamber -
Floor
2nd Chamber -
Policy
2nd Chamber -
Approps
2nd Chamber -
Floor
Governor's
Desk Signed into law
Process:
• Passed Assembly 78-0-1 (Aug 28)
• Next Step: Governor's desk
Support
7 AB 1577 Bauer-Kahan — Directs the California Energy Commission (CEC) to establish a process for data center owners to submit reports on energy usage, including specified operational metrics. The CEC would then publish aggregated data and incorporate data center load trends into future energy policy reports. Separately, data center owners must submit their expected energy consumption to local agencies for planning and environmental review purposes (while protecting confidential customer information).
Ava proposed amendments – adopted: Align reporting timelines with IOU-to-CCA data flows.
Support: Oppose:
Data Center Energy Use Reporting
Process:
• Passed Assembly 59-3-17 (Aug 25)
• Next Step: Governor's desk
1st Chamber -
Policy
1st Chamber -
Approps
1st Chamber -
Floor
2nd Chamber -
Policy
2nd Chamber -
Approps
2nd Chamber -
Floor
Governor's
Desk Signed into law
Support
8 AB 2266 Schultz — When introduced, the bill required the California Public Utilities Commission (CPUC) to consider a process to consolidate specified reporting requirements into a single procurement plan, and (when feasible) consolidate compliance reporting for reliability requirements.
Major changes since initial drafting:
• Narrowed its mandate from aligning broader planning frameworks to ensuring consistent standards for LSE compliance.
• Under the new language CPUC now retains flexibility to use different methodologies for system planning reserve margin and evaluating short-term, mid-term, and long-term reliability needs.
Support: Oppose:
Consistent reliability methodology
1st Chamber -
Policy
1st Chamber -
Approps
1st Chamber -
Floor
2nd Chamber -
Policy
2nd Chamber -
Approps
2nd Chamber -
Floor
Governor's
Desk Signed into law
Process:
• Passed Senate 38-2 (Aug 27)
• Next Step: Governor's desk
Support if Amended
9 SB 868 Wiener — Exempts portable solar generation devices from interconnection requirements and prohibits IOUs and POUs from imposing fees or other related requirements. Authorizes utilities to require basic notification of device installation through a simple registration process, as specified.
Ava proposed amendments – not adopted: Require storage pairing and modern inverter standards for plug-in solar while maintaining basic oversight to protect grid reliability and mitigate cost impacts.
Support:
Portable (or "Plug In") Solar Interconnection Exemption Oppose: Process:
• Passed Assembly 73-0-6 (Aug
25)
• Next Step: Governor's desk
1st Chamber -
Policy
1st Chamber -
Approps
1st Chamber -
Floor
2nd Chamber -
Policy
2nd Chamber -
Approps
2nd Chamber -
Floor
Governor's
Desk Signed into law
Support if Amended
10 AB 1975 Schultz — Requires the PUC to establish a grid utilization metric to measure electrical load as a percentage of system capacity; requires IOUs to publicly report on that metric; sets increasing minimum utilization targets; and establishes performance-based incentives or disincentives, while requiring utilities to propose programs to meet those targets.
Ava proposed amendments – not adopted: Ensure CCAs can participate in and benefit from grid utilization programs while preventing IOU-only implementation.
Grid Utilization
Support: Oppose: Process:
• Passed Assembly U&E 16-0 (Apr 23)
• Next Step: None, not advancing this year
1st Chamber -
Policy
1st Chamber -
Approps
1st Chamber -
Floor
2nd Chamber -
Policy
2nd Chamber -
Approps
2nd Chamber -
Floor
Governor's
Desk Signed into law
Support if Amended
11 AB 2389 Irwin — Extends the property tax exclusion for certain customer-sited solar energy systems, including systems up to 2 megawatts and those located on public entity property, through January 2032.
Ava proposed amendments – not adopted: Require new solar systems to include battery storage to qualify for the exemption, while preserving eligibility for existing and resilience-focused projects.
Support: Oppose:
Solar Installation Property Tax Exclusion
Process:
• Passed Assembly Revenue and Tax
Committee 7-0 (Apr 28)
• Next Step: None, not advancing
this year
1st Chamber -
Policy
1st Chamber -
Approps
1st Chamber -
Floor
2nd Chamber -
Policy
2nd Chamber -
Approps
2nd Chamber -
Floor
Governor's
Desk Signed into law
State Budget Update
12 June Budget
Agreement
(Law)
New incentives for
first-time ZEV buyers
($135.5 million)
Transfer ~$22 million
from DEBA to DSGS
(funds DSGS thru 2026)
CalFIRE
($1.25 billion from
GGRF)
August Budget
Trailers
(Pending Governor's
signature)
Prop 4 Climate Bond
funding plan
($2.3 billion)
• $55 million for
community
resilience centers
• $20 million for
microgrids via DEBA
No change to existing
GGRF spending plan
• $1 billion for high
speed rail
• $1 billion for
legislature's
discretion
• ~$2 billion for variety
of 'Tier 3' programs
DSGS - No additional
funding beyond 2026
Transmission
Accelerator Revolving
Fund
($322.5 million)
Zero-emission truck
and bus incentives
($135.5 million)
Looking Forward
13 September 30:
Governor's deadline to sign or veto all bills
December 7:
27/28 legislature sworn in
January 1:
New state statutes take effect
January 4:
New Governor takes office
27/28 legislative session begins in earnest
November 3:
Election day
Considerations for 2027/8:
Expect New Senate Pro Tem
Senator Monique Limon is termed out in 28'
Major Turnover in Makeup of Senate Energy
Sens. Wahab, Allen, Caballero, Grove
not returning in January
New Chair for Senate Energy Committee
Senator Ben Allen termed out this year
Legislative Impact of
Administrative Turnover
New Governor takes office and three CPUC
and one CEC commissioners' terms
are coming to an end in 27'
Full Universe of Ava Monitored 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) POU dynamic pricing and advanced metering mandate AB 942 Calderon (D) Changes climate credit
AB 1020 Schiavo (D) Requires IOUs to report taxpayer funding AB 1156 Wicks (D) Reforms Williamson Act contract cancellation fees AB 1577 Bauer-Kahan (D) Data center monthly reporting
AB 1738 Carillo (D) Requires local governments to offer remote inspections AB 1761 Rogers (D) PCIA data transparency
AB 1787 Schultz (D) Require IOUs to offer a dynamic tariff if smart meter infrastructure is in place AB 1813 Ward (D) Require CEC evaluation of community solar re classification AB 1975 Schultz (D) Grid utilization metric 14
Bold Signed into law Plain text Pending Gov signature Strikethrough Did not advance Full Universe of Bills
AB 2111 Papan (D) Transmission planning alignment with affordability and FERC Order 1920 AB 2175 Garcia (D) Allows aggregation of multiple meters for NBT AB 2182 Irwin (D) Creates IOU run industrial decarbonization program AB 2234 Papan (D) CEQA exemptions for some geothermal exploratory projects AB 2266 Schultz (D) CPUC to consider RA valuation standardization AB 2313 Berman (D) Require gas corporations to offer electrification incentives AB 2369 Rogers (D) Enables partial RA, allowing energy-only resources earn RA value AB 2383 Zbur (D) Require creation of a large load customer class and rate schedule AB 2463 Petrie-Norris (D) Require PUC to adopt standard formula for 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 2516 Petrie-Norris (D) California Grid Manufacturing Initiative AB 2518 Sharp-Collins (D) Requires SDG&E to prioritize and fast-track affordable housing energization AB 2589 Irwin (D) Requires PUC to analyze OBBBA and adjust rates to reflect impacts AB 2612 Schultz (D) Building standards for plug-in solar systems AB 2647 Calderon (D) Requires CEC to evaluate future of nuclear power in California 15 Full Universe of Bills
AB 2748 Quirk-Silva (D) Revert EV regulations to 2022 state building code for BMR housing 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 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 886 Padilla (D) Large load cost shift prevention
SB 887 Padilla (D) Large load CEQA application
SB 905 Becker (D) Utility cost, performance, and data sharing reform SB 913 Becker (D) Resource Adequacy for aggregated distributed capacity resources SB 924 Hurtado (D) PUC to consider affordability when looking at home weatherization SB 925 McNerney (D) Requires state strategy and permitting framework to advance fusion 16 Full Universe of Bills
SB 943 Becker (D) Industrial billing and NBC/TAC reform 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 tariff study
SB 1233 Allen (D) Requires enhanced justification of CPUC findings tied to utility returns SB 1295 Stern (D)
Requires IOUs to evaluate distributed storage and nonwire alternatives and authorizes them to own distributed storage assets
Budget
Trailer Dept of Finance
Reallocates outstanding funding from the Distributed Energy Backup Assets (DEBA) program to the Demand Side Grid Support (DSGS) program
Budget
Trailer Dept of Finance
Transitions 2026 DSGS participants to the Emergency Load Reduction Program (ELRP) or an equivalent CPUC load reduction program. 17