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Agenda packet

Clean Power Alliance Legislative & Regulatory Committee
January 28, 2026

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Agenda packet
Meeting
January 28, 2026
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Clean Power Alliance Legislative & Regulatory Committee
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Text extracted from the CCA's file for reading and search. Open the original on cleanpoweralliance.primegov.com. That file is the official record.

Legislative & Regulatory Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Wednesday, January 28, 2026
10:00am
Visit CPA’s YouTube Channel to view a Live Stream of the Meeting www.youtube.com/@CPApublicmeetings
*There may be a streaming delay of up to 90 seconds. This is a view-only live stream.

Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Members of the public may also participate in this meeting at the following locations:

City of West Hollywood
3rd Floor City Manager’s Conference Room
8300 Santa Monica Blvd.

West Hollywood, CA 90069
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
LA County Hall of Administration
Sybil Brand Conference Room, Room 372500
West Temple Street
Los Angeles, CA 90012
Santa Monica City Hall
Room CH-201
1685 Main Street
Santa Monica, CA 90401
Lynwood City Hall
Annex Building, Conference Room
11330 Bullis Road
Lynwood, CA 90262
PUBLIC COMMENT: Members of the public may submit their comments by one of the following options:
• Email Public Comment: Members of the public are encouraged to submit written comments on any agenda item to [email protected] up to four hours before the meeting. Written public comments will be announced at the meeting and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting. • Provide Public Comment During the Meeting: The General Public Comment item is reserved for persons wishing to address the Committee on any Clean Power Alliance-related matters not on today’s agenda. Public comments on matters on today’s Consent Agenda and Regular Agenda shall be heard at the time the matter is called. Comments on items on the Consent Agenda are consolidated into one public comment period. Members of the public who wish to address the Committee at CPA’s Office are requested to complete a comment card and provide it to staff. If you are attending from a remote location, please identify yourself to a CPA representative when your item is called. Each speaker is limited to two (2) minutes (in whole-minute increments) per agenda item with a cumulative total of five 5 minutes to be allocated between the General Public Comment, Agenda Page 1
the entire Consent Agenda, or individual items in the Regular Agenda. Please refer to Policy No. 8 – Public Comment for additional information.

NAVIGATING OUR AGENDA PACKETS
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ACCESSIBILITY: Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least two (2) working days before the meeting at [email protected] or (213) 713- 5995. Notification in advance of the meeting, while not required, will enable us to make reasonable arrangements to ensure accessibility to this meeting and the materials related to it.

CALL TO ORDER AND ROLL CALL

GENERAL PUBLIC COMMENT

CONSENT AGENDA

1. Approve Minutes from the October 29, 2025, Legislative & Regulatory Committee Meeting

REGULAR AGENDA

2. Receive 2026 Legislative Update

3. Receive Presentation on the Zero-Emission Standard Rulemakings at South Coast Air Quality Management District and the California Air Resources Board and Provide Guidance to Staff

COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING ON FEBRUARY 25, 2026
Public Records: Public records that relate to any item on the open session agenda for a regular Board Meeting are available for public inspection. Those records that are distributed less than 72 hours prior to the meeting are available for public inspection at the same time they are distributed to all, or a majority of, the members of the Board. Those documents are available for inspection at CPA Offices, 801 S. Grand Ave, Suite 400, Los Angeles, CA 90017 or online at www.cleanpoweralliance.org/agendas.

Agenda Page 2
Staff Report – Agenda Item 1
To: Legislative & Regulatory Committee
Subject: Approve Minutes from the October 29, 2025, Legislative & Regulatory Committee Meeting
Date: January 28, 2026

RECOMMENDATION
Approve.

ATTACHMENT

1. Minutes
Agenda Page 3

MINUTES
Legislative & Regulatory Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, October 29, 2025, 10:00 a.m.

Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee Members participated in this meeting from the following locations:

Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Clean Power Alliance Office
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
LA County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
West Hollywood City Hall
3 rd Floor City Manager’s Conference Room
8300 Santa Monica Blvd.

West Hollywood, CA 90069
Santa Monica City Hall
Room CH-201
1685 Main Street
Santa Monica, CA 90401

CALL TO ORDER & ROLL CALL
Chair Hicks called the meeting to order at 10:00 a.m. and Annie Mendoza, Deputy Clerk of the Board, conducted roll call.

ROLL CALL
Carson Cedric Hicks Committee Chair Remote
Los Angeles
County
Rita Kampalath Alternate Remote
Santa Monica Gleam Davis Committee Member Remote
West Hollywood Absent
All votes are unanimous, unless otherwise stated.

GENERAL PUBLIC COMMENT
There was no public comment.

CONSENT AGENDA

1. Approve Minutes from the June 25, 2025, Legislative & Regulatory Committee Meeting
Motion: Committee Member Davis, Santa Monica
Second: Chair Hicks, Carson
Vote: The consent agenda was approved by a roll call vote.

Legislative & Regulatory Committee Item 1
Agenda Page 4

REGULAR AGENDA

2. Provide Input on CPA’s Draft 2026 Legislative & Regulatory Policy Platform and Recommend Approval to the CPA Board of Directors
Gina Goodhill, Senior Director, Government Affairs, presented the proposed changes to CPA's policy platform for next year. The focus in 2025 was affordability, grid reliability, and climate protection. Ms. Goodhill discussed AB 825, SB 254, and bills regarding the Cap and Trade program. Regarding the 2026 platform, Ms.

Goodhill provided information on the energy industry’s concerns about increased load from data centers and other large electricity consumers, and how they obtain supply. She also noted that affordability related to wildfire hardening will be a focus.

Topics included Affordability and Local Control; Power Resources Planning and Procurement; Customer Programs; Data Access; and Diversity, Equity, and Inclusion.

Chair Hicks inquired about large energy consumers affecting CPA, and staff responded that CPA wants to know when a potential heavy load user may become a customer to allow for proper planning. The platform prioritizes transparency, so that IOUs can share information about such customers quickly and accurately.

Regarding transmission, staff confirmed for Chair Hicks that there will be legislative efforts to increase CCAs involvement in 2026. Regarding replacing incentives for Electric Vehicle use, staff stated that California will not be backfilling the loss of federal tax incentives in 2025. CPA has been focusing on charging infrastructure and funding for vehicles for member agencies.

Committee Member Davis suggested adding the word ‘fire’ to the section on grid hardening to better inform the public about grid improvements. Ms. Goodhill clarified for Committee Member Davis that the term ‘environmental and social justice communities’ refers to communities that have experienced various forms of environmental pollution and degradation, often low-income, socially disadvantaged areas. Committee Member Davis made a motion to approve the platform, with the addition of the word ‘fire’ in the grid hardening section.

Committee Member Kampalath seconded.

Motion: Committee Member Davis, Santa Monica
Second: Vice Chair Kampalath, County of Los Angeles
Vote: This item was approved by a roll call vote.

COMMITTEE MEMBER COMMENTS
None.

ADJOURN
Chair Hicks adjourned the meeting at 10:36 a.m.

Legislative & Regulatory Committee Item 1
Agenda Page 5
Staff Report – Agenda Item 2
To: Legislative & Regulatory Committee
From: Gina Goodhill, Senior Director, Government Affairs Reviewed by: Francis Choi, Assistant General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: 2026 Legislative Update
Date: January 28, 2026

RECOMMENDATION
Receive 2026 Legislative update.

DISCUSSION
With the 2026 Legislative year underway, CPA expects to focus much of its initial energy on promoting three bills: one sponsored by CPA and up to two sponsored by the California CCA trade association, CalCCA. As the year progresses, it is likely that additional bills will be introduced that will require CPA’s attention and time.

Transmission Financing
Building on feedback and direction that staff received at the September 2025 Board Retreat, CPA will be sponsoring a bill that would give CCAs the authority to own and finance transmission. Transmission ownership would give CPA the opportunity to improve electricity bill affordability for all ratepayers over a long-term basis and expand its leadership role in the clean energy transition.

California currently operates a regional transmission system that connects energy generation with the distribution system of investor-owned utilities, including Southern Agenda Page 6
Legislative & Regulatory Committee Item 2
California Edison. The transmission of electricity is one of the key components of the delivery side (the SCE side) of a customer’s bill; these costs are expected to grow in the coming years. The CAISO’s 20-Year Transmission Outlook, published in July 2024, estimated the need for up to $63.2 billion in future transmission investments. The charge customers pay for transmission projects (the Transmission Access Charge, or TAC) could rise 350%, from 1.16 cents/kWh in 2024 to 4.05 cents/kWh by 2045. 1 Transmission system upgrades and new transmission development are authorized by the CAISO and owned and developed by either IOUs, private companies, or a mix. In California, public entities do not currently play a meaningful role in transmission ownership or financing like they do in other states like New York or Texas. However, public agencies have key advantages in delivering low-cost financing for transmission projects compared to the private sector, such as a lower cost of “equity,” and authority to issue tax exempt debt. Additionally, CPA has its own unique advantages such as more flexible return on investments, significant capital market experience through prepayment bonds and procurement, and deep local ties.

In the 2025 legislative year, policymakers expressed new interest in allowing public agencies, in partnership with the private sector, to play a role in developing and financing transmission. SB 254 (Becker/Petrie-Norris) created a transmission financing “Accelerator” that will identify new transmission projects that could be ripe for public/private financing, although CCAs were not included as an eligible public agency under the bill.

CPA is proposing legislation that would give CCAs clear authority to develop, finance, construct, operate, lease, and maintain electric transmission lines like the ones envisioned in SB 254 and beyond.
1 Public Advocates Office; “Public Advocates Office”; Transmission Data Dashboard (as of October 2024).

Agenda Page 7
Legislative & Regulatory Committee Item 2
PCIA Transparency
CalCCA is working with potential authors to introduce a bill that would ensure CCAs and other ratepayer advocates have access to all data underlying the Power Charge Indifference Adjustment (PCIA) charge, or any other value derived from the charge.

State law requires CCA customers to pay the PCIA to ensure that IOU customers are not financially harmed when customers depart to a CCA. However, CCAs are not consistently given access to the data used to calculate the PCIA, neither by the IOUs nor the CPUC itself. Meanwhile, history has demonstrated that the calculation of the PCIA or related charges is not always accurate or without error.

CalCCA is proposing statutory changes to require the CPUC and/or the IOUs to provide all data that was relied upon to calculate the costs of the PCIA. Existing protections for market sensitive information would be applied. Improving data access provides a quality check to ensure calculations will be accurate. Additionally, increased transparency will allow CCAs to more accurately forecast costs longer term and supports affordable, stable energy rates that are fair for all customers.

The attached fact sheet provides additional information about this legislative proposal.

Resource Adequacy Transactability
In the new Resource Adequacy (RA) Slice of Day (SOD) framework, load serving entities’ (LSEs) obligations are based on the 24 hours of the peak day in each month. LSEs must show resources sufficient to meet load obligations in each hour, including excess resources to charge energy storage on the peak day.

Under existing rules, LSEs are restricted in how they can transact with other entities to ensure compliance. Adjustments to an LSE’s portfolio are limited to transacting products for the whole month, even though obligations are unique to each hour. This mismatch means LSEs must purchase more RA than they need to meet their obligations, creating Agenda Page 8
Legislative & Regulatory Committee Item 2
artificial market scarcity and unnecessarily driving up RA demand (and prices). The net result is tens of millions of dollars in unnecessary costs that fall to all California ratepayers.

CalCCA has been advocating through stakeholder processes at the CPUC to give LSEs the flexibility to transact load obligations at the hourly level in order to reduce costs to consumers arguing that if RA requirements are set on an hourly basis, some or all of the products should be transactable on an hourly basis. The proposal has the support of a broad range of market stakeholders including LSEs, clean energy providers, consumer advocates, and the environmental justice community.

Advocacy for hourly trading at the CPUC has been taking place for the past two years but the CPUC has not taken action on the matter. If the issue is not resolved at the CPUC in the first half of this year, CalCCA has readied a legislative solution that could be pursued.

ATTACHMENT

1. PCIA Transparency Fact Sheet
Agenda Page 9
1 PROMOTING AFFORDABILITY FOR ELECTRIC RATEPAYERS THROUGH

INCREASED TRANSPARENCY OF THE PCIA

OVERVIEW
California’s 25 Community Choice Aggregators (CCAs) are nonprofit local government agencies that procure energy and capacity for more than 15 million Californians. By providing local control over procurement, CCAs offer communities an alternative to for-profit Investor-Owned Utilities (IOUs).

State law requires CCA customers to pay the Power Charge Indifference Adjustment (PCIA) to ensure IOU customers are not financially harmed when customers depart to a CCA. However, CCAs are not consistently given access to the data used to calculate the PCIA. CalCCA is proposing statutory changes to require greater transparency in how the PCIA is calculated.

Improving data access will allow CCAs to more accurately forecast costs and support affordable, stable energy rates for the one-third of Californians served by CCAs.

THE PROBLEM
The California Public Utilities Commission (Commission) establishes the methodology for the PCIA and each IOU sets its PCIA in an annual Energy Resource Recovery Account (ERRA) proceeding. Over the years implementing the PCIA, there has been no consistent standard for what data must be made available to the CCAs in the ERRAs where the PCIA is set. In practice, disclosure varies by utility and by Commission proceeding. This leads to a fight about data access in individual proceedings and the administrative inefficiencies in resolving the issue on a case-by-case basis.

Transparency is an important tool to ensure that CCA customers are not overcharged. Utilities make mistakes, and requiring data disclosure encourages the IOU to double check its work. For example, in October 2025, PG&E reported that it had identified an error in its accounting that would have resulted in collecting an extra $217 million from CCA customers. To its credit, PG&E acknowledged and fixed its error, but ensuring transparency incentivizes more careful accounting and provides an external audit of the IOUs’ work. In another instance, the CCAs identified significant errors in the IOU calculation of the CCA’s Financial Security Requirements.

For example, SCE overstated the FSR by a factor of 1000 by relying on a kWh rather than a MWh.

The IOU and the CPUC cannot be counted on to always verify results ,and CCAs should have the data required to independently replicate the charges impacting their customers. Consequently, enabling transparent data access to all parties impacted will provide the essential check and balances to ensure that costs to ratepayers are not unfairly allocated.

The Commission itself has withheld the data required for CCAs to calculate the PCIA impact on their customers. In mid-2025 the Commission voted out D.25-06-049 adopting significant methodological changes to the PCIA without publicly demonstrating the rate impacts on customers (CalCCA has filed a petition for writ of review on this decision). The Commission retroactively changed the methodology for calculating a key component of the PCIA rate. It made the change after the IOUs began to collect 2025 PCIA costs in 2025 (based on a forecast value) but before that collection had been completed in 2026 (truing up the original forecast).

The change has a significant impact on CCA customers’ PCIA rates as the IOUs will recover more in the true-up than they would have otherwise recovered under the prior methodology. Further, the Commission withheld key information needed to understand and verify the Commission’s conclusions in making the change, leaving CCAs unable to validate the rates their customers will pay for generation. This type of regulatory action leaves CCAs unable to confidently forecast their customers’ total generation rates, creating uncertainty and inability to plan for the CCA Agenda Page 10
2 customers. Despite multiple requests for this data in the record, calls and emails to Commission staff, and two Public Records Act requests, the Commission has still not released the data.

This significant change in methodology has also had knock-on effects. The same variable changed by the Commission is also used in calculating CCAs’ Financial Security Requirements owed to the IOU and all customers’ cost of substitution capacity for Diablo Canyon.

THE SOLUTION
CalCCA proposes amending the California Public Utilities Code to require the Commission or the IOUs to provide all data relied on to calculate the cost, including proposed cost methodologies, of the PCIA and any other rates or costs CCAs (or other non-IOU load serving entities) or their customers must pay. The same data should be provided to support any value derived from the PCIA calculation (ie. the FSR or Diablo Canyon substitution capacity cost). Sufficient transparency would allow any party to replicate the calculation of the charge independently.

Data required to be disclosed would include, but not limited to, all PCIA inputs, the PCIA methodology and forecasting information. As is already the practice at the Commission, any sensitive information could be provided to a third party reviewing representative pursuant to a reasonable, Commission-approved nondisclosure agreement.

The CCA’s enabling statute, AB 117, recognizes that to compete on an even playing field CCAs need access to customer data. Accordingly, AB 117 directs that the IOUs “cooperate fully” with the CCAs. This bill would direct that same degree of cooperation for the IOUs and the Commission regarding the PCIA, a key input into CCA customer rates.

THE BENEFITS
Greater transparency improves the ability of CCAs to deliver affordable rates to customers.

Providing all relevant information to calculate the PCIA both improves the ability of the CCA to forecast its rates and protect its customers from unexpected rate increases. More information also empowers the CCA to promote stability and manage its generation charge from year to year, smoothing any customer impacts.

Additionally, increased transparency provides a valuable check that the IOU is optimizing its portfolio to the benefit of both IOU and CCA customers. PU Code Section 451 requires that “all charges demanded…by any public utility…be just and reasonable.” Without a reasonable ability to understand and test PCIA methodologies, the CCA cannot verify that its customers are not being unduly harmed by IOU decisions and that the PCIA is, in fact, just and reasonable.

Finally, memorializing the expectation of transparency will result in greater administrative efficiency. Parties will not be required to repeatedly advocate for required information, sometimes against even the Commission itself.

THE COSTS
Unless you have something to hide, transparency costs you nothing. Protections for market sensitive information, like nondisclosure agreements and reliance on reviewing representatives, have long been in place at the Commission. Further, provided that the Commission and IOUs have been operating reasonably, the bill should not result in customer impacts, it will only give parties the tools to confirm the Commission and IOUs actions are just and reasonable.

Agenda Page 11
Staff Report – Agenda Item 3
To: Legislative & Regulatory Committee
From: CC Song, Senior Director, Regulatory Affairs
Reviewed by: Matthew Langer, Chief Operating Officer
Approved By: Ted Bardacke, Chief Executive Officer
Subject: CARB Proposed Zero-Emission Standards
Date: January 28, 2026

RECOMMENDATION
Receive presentation on the Zero-Emission Standard Rulemakings at South Coast Air Quality Management District and the California Air Resources Board and provide guidance to staff.

ATTACHMENT

1. Updates on Zero-Emission Space and Water Heater Standards Presentation Agenda Page 12
Updates on Zero-Emission Space and
Water Heater Standards
Legislative and Regulatory Committee
January 28, 2026
Agenda Page 13
Summary
2 The regional South Coast Air Quality Management District (SCAQMD) proposed rule on zero-emission standards for space and water heaters was rejected by the SCAQMD Board on a 7-5 vote last June. CPA had previously supported the SCAQMD proposal.

The state California Air Resources Board (CARB) has issued a new Zero-Emission Standard Rulemaking proposal that aligns with what had been proposed by SCAQMD.

This proposal includes setting emission limits on space, water, and pool heaters and the creation of an emission credit trading system.

Staff is seeking guidance on whether to maintain its past position on the SCAQMD proposal, which:
o Generally supports appliance emissions reductions to support improvement in local air quality and reduction in GHG emissions.
o Ensuring that robust public outreach and education is conducted during the rulemaking and implementation processes.
o Use of revenues resulting from penalties, fees (and/or the emissions trading system in CARBs proposal) to support customers in need.

Agenda Page 14
SCAQMD Proposed Amendment Rules
(PAR) 1111 and 1121
3 SCAQMD initiated its PAR 1111 and 1121 in October 2023 to reduce GHG and NOx emissions by providing staggering compliance dates based on equipment types, capacity, and sizes for space heaters and water heaters.

SCAQMD’s proposal released in June 2024 included non-compliance fees for manufacturers, and the fees would be used to fund the Go Zero Rebate Program, which would provide incentives to low-income customers.

In August 2024, CPA’s Legislative and Regulatory Committee directed staff to support SCAQMD’s proposal, advocating in our comments for.
o 1) improved community and customer outreach and education, and o 2) improved incentives for low-income customers. CPA submitted comments in October 2024 and March 2025 in response to proposed revisions.

In June 2025, SCAQMD’s board members voted 7-5 to reject PAR 1111 and 1121. The opposition cited consumer costs and there was vigorous business opposition. There was also concern about litigation by the federal government. Environmental Justice and clean air advocates remained supportive of the proposal throughout several revisions.

Agenda Page 15
CARB Zero-Emission Appliance Rulemaking
4 CARB initiated the Zero-Emission Appliance rulemaking process in 2023 with the goal to reduce various greenhouse gas (GHG) and nitrous oxide (NOx) emissions from water heaters, space heaters, and pool heaters. The original goal was that 100% of the sales must meet zero-GHG emission targets starting in 2030.

CARB staff presented a proposal in May 2024 that shifted from the original goal.

The proposal provided a glidepath for compliance by staggering compliance dates based on equipment types, capacity, and sizes. Compliance dates would be set between 2027 and 2033. Compliance enforcement would be applied to new equipment only, not repair for existing equipment.

The May 2024 proposal was similar to SCAQMD’s PARs 1111 and 1121. During the comment period, stakeholders urged CARB to introduce more compliance flexibility.

Agenda Page 16
Revised CARB Zero-Emission Standard
Proposal
5 CARB released a revised high-level proposal in December 2025 and solicited comments from stakeholders by January 21, 2026. CPA staff submitted comments consistent with our submissions in response to the SCAQMD proposal.

The revised proposal would set market-wide emission-reduction goals to gradually decrease sales of GHG-emitting space, water, and pool heaters.

Revised proposal contains two compliance mechanisms:
o Set emission limits for sales of new space, water, and pool heaters, and o Create a credit system, where manufacturers can earn, bank, and trade credits for compliance flexibility.

Agenda Page 17
CARB Proposal: Space and Water
Heater Emission Compliance Limits
6 The CARB proposal caps annual emissions for
individual manufacturers’ total annual sales for
space, water, and pool heaters based on a
declining schedule.
o For example, in 2031, a manufacturer’s total annual sale of GHG-emitting water heaters cannot exceed 59% of their
total sale of water heaters.
o This is in response to feedback that the target of 100% sales must meet the zero-emission target is not feasible.

New emissive sales targets for each type of heater
would be enforced for each manufacturer, based
on a declining schedule beginning in 2030:
o Space heating: 25% cap by 2040
o Water heating: 50% cap by 2040
o Pool heating: 40% cap by 2031
Agenda Page 18
CARB Proposal: Credit System for
Compliance Flexibility
7 CARB’s proposed credit system is intended to offer multiple compliance pathways for flexibility to encourage technology innovation and working with existing incentive programs to address challenges faced by customers, particularly low-income customers.

Manufacturers earn credits by:
o Selling compliant equipment before 2030.
o Selling innovative zero-emission equipment that address specific customer segment challenges, e.g. cold climate certified heat pumps to support heating in cold climate regions, low-power water heater to address electrical constraints and reduce retrofit costs. o Providing free or selling discounted zero-emission equipment to equitable decarbonization incentive programs, e.g., California Energy Commission’s Equitable Building Decarbonization program. o Selling compliant equipment beyond requirements after 2030.

Credits earned can be traded or banked within 5 years before they expire.

Agenda Page 19
Requested Guidance and Next Steps
8 CPA staff are asking the Committee to confirm that CPA should continue to support the implementation of zero-emission standards for space and water heaters to reduce GHG emissions and improve local air quality consistent with our past advocacy at SCAQMD and CPA’s 2026 Legislative and Regulatory Policy Platform.

Specifically, CPA would:
o Generally support the effort to set zero-emission standards for space, water, and pool heaters. o Advocate for expanding current public outreach efforts to a broader stakeholder base before the proposal is voted on and ensure that community partners and local governments are part of CARB’s outreach strategy.
o If the proposal is adopted, develop and implement a thorough public education, engagement, and outreach strategy focusing on the general public and community-based organizations. o While the credit system encourages manufacturers to sell discounted equipment or provide free equipment to existing equity-focused programs, CARB staff should consider providing rebates to make financial incentives and assistance more widely available for low- and moderate-income customers should there be program revenues generated from non-compliance fees.

Draft regulatory language and economic analysis are expected from CARB in Q1 2026.

Staff will continue to monitor the rulemaking at CARB and engage according to the direction from the Committee
Agenda Page 20

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