Legislative & Regulatory Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Wednesday, August 19, 2026
1:30 pm
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:
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
Lynwood City Hall
Annex Building, Conference Room
11330 Bullis Road
Lynwood, CA 90262
Redondo Beach City Hall
Planning Conference Room
415 Diamond Street, Door 2
Redondo Beach, CA 90277
Santa Monica City Hall
Room CH-201
1685 Main Street
Santa Monica, CA 90401
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.
Agenda Page 1
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, 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 January 28, 2026, Legislative & Regulatory Committee Meeting
REGULAR AGENDA
2. Receive Presentation on Potential Changes to the Climate Credit Calculation and Provide Feedback
3. Oral Update on Legislative Activities
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING ON SEPTEMBER 23, 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 January 28, 2026, Legislative & Regulatory Committee Meeting
Date: August 19, 2026
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
MINUTES
Legislative & Regulatory Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, January 28, 2026, 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
Lynwood City Hall
Annex Building, Conference Room
11330 Bullis Road
Lynwood, CA 90262
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
Lynwood Juan Muñoz-Guevara Committee Member Remote
Santa Monica Gleam Davis Committee Member Remote
West Hollywood John Erickson Committee Member Absent
All votes are unanimous, unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the October 29, 2025, Legislative & Regulatory Committee Meeting
Motion: Committee Member Muñoz-Guevara, Lynwood
Second: Committee Member Kampalath, Los Angeles County
Vote: The consent agenda was approved by a roll call vote Legislative & Regulatory Committee Item 1
Agenda Page 4
REGULAR AGENDA
2. Receive 2026 Legislative Update
Gina Goodhill, Senior Director, Government Affairs, presented three bills to the Committee, including AB 2396 sponsored by CPA on transmission financing. AB 2396 clarifies that CCAs may engage in transmission financing. In addition, Ms.
Goodhill also presented two other bills sponsored by CalCCA focusing on PCIA transparency and Resource Adequacy transactability; the former would require the CPUC or the IOUs to share with CCAs how calculations are made for the PCIA and for any other charges CCA customers pay and the latter would allow energy purchases to align with the Slide of Day framework.
Chair Hicks asked about the strategy for approaching legislators on upcoming Lobby Day, and staff responded that they would target committee members working on energy issues, legislators representing the CPA territory, and those who have shown support for greater affordability. CPA will also connect with the Governor’s Office. Staff clarified for Chair Hicks that CPA’s professional lobbyists in Sacramento have been advising on strategy as well as promoting the bills.
Committee Member Muñoz-Guevara inquired whether CPA board members could help identify bill authors for the RA proposed bill, and staff stated that CalCCA is close to securing an author and that CPA-supported bills usually go through the Assembly Utilities and Energy Committee or its counterpart in the Senate.
3. Receive Presentation on the Zero-Emission Standard Rulemakings at South Coast Are Quality Management District and the California Air Resources Board and Provide Guidance to Staff
CC Song, Senior Director, Regulatory Affairs, explained that 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 to 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 for space, water, and pool heaters, as well as creating an emission credit trading system.
CPA staff requested guidance on whether to maintain its past position on the SCAQMD proposal, which generally supports appliance emissions reductions to support improvement in local air quality and reduction in GHG emissions, robust public outreach and education during the rulemaking and implementation processes, and use of revenues resulting from penalties and fees to support customers in need. The SCAQMD proposal also included an emissions trading system which could benefit those customers.
Staff clarified for Committee Member Muñoz-Guevara that the draft regulation will be issued in the first quarter of this year, and that there will be 45 days to provide comments. There is a possibility that another draft of revised regulations may be issued before it goes to the board. Committee Member Kampalath inquired about revisions being worked on now and also about the nature of the opposition to the standards proposal that was rejected. Ms. Song responded that revisions are not likely to come from the regional board, and that the opposition mainly came from manufacturers and their trade associations, who are concerned about cost. They were also threatening legal action. Ms. Song stated that there is strong support from environmental groups and the City of Santa Monica.
Legislative & Regulatory Committee Item 1
Agenda Page 5
Committee Member Davis asked about the likelihood of the standards being adopted and whether federal intervention is expected. Staff responded that adding emissions credit trading may garner support for the proposal and that planning and developing regulations must continue, regardless of who is in power at the federal level. There have been threats of DOJ intervention; those may or may not be carried out. Committee Member Davis suggested that CPA collaborate with federal elected officials from California for whatever assistance and support they can provide.
In response to Chair Hicks’ inquiry about impacts on reach codes, staff stated that two California cities have been sued by the federal government over their reach codes that proposed to ban gas appliances. CPA’s consultants working with member agencies are focusing on an emissions-based approach to reach codes, rather than complete bans on appliances. Committee Member Muñoz-Guevara made a comment about standards being voted down by the SCAQMD Board; the vote appeared to be a political gesture on the part of a couple of board members.
Chair Hicks suggested that low-income residents be considered when new standards are adopted and mandates issued; staff stated that rebates and incentives may be included in final draft regulations and if not, CPA could recommend them.
COMMITTEE MEMBER COMMENTS
Chair Hicks welcomed Juan Muñoz-Guevara from the City of Lynwood to the Committee.
Staff reminded the Committee to RSVP for Lobby Day on March 10, 2026, and that a planning meeting will be held with CPA lobbyists prior to the event.
ADJOURN
Chair Hicks adjourned the meeting at 10:47 a.m.
Legislative & Regulatory Committee Item 1
Agenda Page 6
Staff Report – Agenda Item 2
To: Legislative & Regulatory Committee
From: CC Song, Senior Director, Regulatory Affairs
Reviewed by: Matthew Langer, Chief Operating Officer
Francis Choi, Assistant General Counsel
Approved By: Ted Bardacke, Chief Executive Officer
Subject: Climate Credit Calculation
Date: August 19, 2026
Staff will provide a presentation on the item.
ATTACHMENT
1. Presentation on Potential Changes to the Climate Credit Calculation Agenda Page 7
Potential Changes to the Climate Credit
Calculation
August 19, 2026
Agenda Page 8
Executive Summary
2 The “Climate Credit” is provided to customers twice a year to offset increased electricity costs due to the implementation of Cap-and-Trade. The credit comes from revenue generated by the IOUs selling off their “free” allocations of greenhouse gas emission allowances.
AB 1207 (Irwin) was signed into law in September 2025 to extend the Cap-and-Trade program and rename it Cap-and-Invest. Among many things, the bill directed the CPUC to shift Climate Credit distribution to the highest billed months, which CPA had advocated for.
The CPUC was also given some discretion to address “affordability” using the Climate Credit.
In May 2026, the CPUC adopted a decision to shift Climate Credit distribution from April and October to August and September, fulfilling the requirements of the 2025 legislation.
In June 2026, the CPUC initiated another phase in the Climate Credit proceeding to determine what, if any, changes to the Climate Credit calculation could be made to maximize affordability. The CPUC also published a list of possible changes and requested feedback.
Staff is seeking the Legislative and Regulatory Committee’s feedback on the proposed concepts or other ideas to inform CPA’s engagement in this proceeding.
Agenda Page 9
Climate Credit Background
3 Established in 2011, the Cap-and-Trade program requires entities that emit greenhouse gases (GHGs) to purchase and retire allowances for their emissions. Investor-owned utilities are allocated “free” allowances annually.
Some proceeds from selling the allowances are distributed as the Climate Credit to residential, small business, and certain large customers under the Cap-and-Trade Program. Proceeds may also be used to fund GHG-reduction measures, such as renewable or energy efficiency projects.
The Climate Credit is intended to mitigate increased electricity costs as a result of Cap- and-Trade. A 2012 CPUC decision adopted a flat amount for the Climate Credit, issued twice a year for electric utilities.
The flat rate credit structure was adopted because it was thought to be fair to all customers, who are all impacted by climate change. Furthermore, it incentivizes conservation, is simple to administer, and is easy to explain.
The Climate Credit amount varies annually, depending on Cap-and-Trade allowance revenues. In SCE territory, the electric Climate Credit has fluctuated from $29 to $86 between 2014 and 2026. In 2026, customers will receive a $36 Climate Credit on each of their August and September bills.
Agenda Page 10
2025 Legislative Updates to Climate Credits
4 Because the Cap-and-Trade program was set to expire in 2030, the Legislature approved and enacted AB 1207 (Irwin) to extend the program until 2045 and rename it “Cap-and-Invest.”
AB 1207 directed CARB to update the Cap-and-Invest program regulations, including setting new emissions targets through 2045, adopting emission reduction measures, and updating emission allowances to electric and natural gas IOUs.
AB 1207 also directed the CPUC to shift the distribution of the Climate Credit to the highest-billed months of each year. The intention of this shift is to help customers avoid falling behind on bill payments, as once a customer has missed a payment, their likelihood of catching back up diminishes.
The CPUC was also given the authority to make additional changes to the Climate Credit to maximize affordability.
Agenda Page 11
Regulatory Rulemaking Update
5 The CPUC initiated a proceeding to change the timing of the Climate Credit distribution. A decision was issued in May 2026 shifting the distribution of the electric Climate Credit from April and October to August and September, the highest-billed months across all IOU territories.
CARB also made further changes to the Cap-and-Invest regulations and allowances set aside for electric and natural gas utilities. The electric utilities’ allowances will first decline and then increase gradually in the outer years; the gas utilities allowances will gradually decline. Additionally, the gas Climate Credit will be combined with the electric credit beginning in 2028.
Because of the new allowance schedule and expected carbon credit price, customers will likely see a decline in Climate Credit in the next couple of years before it increases again.
CARB eliminated the prohibition of calculating the Climate Credit based on volumetric usage, so a volumetric approach – instead of the current flat amount – can be considered by the CPUC.
The CPUC is now contemplating changing how the Climate Credit could be calculated to maximize affordability, with additional principles of electrification, fairness, and administrative simplicity.
The Assigned Commissioner, President John Reynolds, put forth several ideas for consideration.
Parties submitted comments on these in July.
Parties are also invited to submit proposals in September to shape the future calculation of the Climate Credit.
Agenda Page 12
Assigned Commissioner’s Proposed Concepts
6 Concepts Pros Cons
Determine Climate Credit based on
electricity usage, using a tier
multiplier or volumetric approach
Greater relief for customers who use
more electricity to incentivize
electrification; could assist customers
in hotter areas
Incentivize more electricity use,
higher-income customers may
receive more credits, and complex to
administer
Provide larger Climate Credits to
hotter areas of the state (based on
the State’s 16 Climate Zones)
Higher credits would go to customers
who are more reliant on A/C for basic
needs and public health reasons
Hard to communicate across the
State, and complex to implement due
to the need to update IOU billing
systems
Determine Climate Credit based on
income qualification programs
(CARE/FERA)
Provide more assistance to low-income customersFails to address affordability concerns for those who do not
formally qualify as low-income
customers
Maintain the flat credit Simple to administer and encourage conservation
Does not differentiate assistance for
customers with greater needs, and
does not incentivize electrification
Agenda Page 13
Climate Zones in CPA Territory
7 CPA customers are in the following
Climate Zones
o Climate Zones 6 and 8: Mild; e.g. Santa
Monica, Beach Cities, Carson,
Hawthorne, Downey, Oxnard, Ventura,
etc.
o Climate Zone 9: Moderate; e.g.
Thousand Oaks, Simi Valley, most San
Gabriel Valley cities
o Climate Zones 10 and 14: Hot; e.g.
Claremont, High Desert areas of LA
County.
o Climate Zone 16: Mild; e.g. Ojai.
Source: California Energy Commission
Agenda Page 14
Impact on CPA Customers’ Climate Credit
8 Concepts Cool Climate
Zones (6, 8,
16)
Moderate
Climate Zone
(9)
Hot Climate
Zones (10 &
14)
Determine Climate
Credit based on usage,
using a tier multiplier or
volumetric approach
Determine Climate
Credit based on Climate
Zones
Increase Climate Credit
for customers on income
qualification programs
(CARE/FERA)
N/A N/A N/A
Maintain the flat credit
Customer receives more Climate
Credit
Customer receives about the same
amount of Climate Credit
Customer receives less Climate
Credit
The table shows how each proposal
would impact a typical CPA customer
in each type of Climate Zone.
Total CPA customer accounts by
Climate Zone:
o Cool Climate Zone: 456,417
o Moderate Climate Zone: 466,593
o Hot Climate Zone: 20,353
Agenda Page 15
Summary and Next Steps
9 Parties will have the opportunity to submit their own proposals, due on September 17.
The Assigned Commissioner will provide an updated version of their proposed concepts by September 25. Parties can comment on proposals submitted by other parties and the updated Assigned Commissioner proposal on October 23.
A decision can be expected to be finalized by Q1 2027.
Staff is seeking the Legislative and Regulatory Committee’s feedback on whether to support any of the CPUC’s proposed concepts, propose new ideas, or support the status quo of issuing a flat credit for everyone.
Agenda Page 16
Staff Report – Agenda Item 3
To: Legislative & Regulatory Committee
From: Gina Goodhill, Senior Director, Government Affairs Ted Bardacke, Chief Executive Officer
Subject: Oral Update on Legislative Activities
Date: August 19, 2026
Staff will provide an oral update on legislative activities.
Agenda Page 17