Civic Center Meeting Rooms 1 & 2,
311 Vernon Street
roseville.ca.gov
The City of Roseville welcomes your participation.
Meeting Schedule: Regular meetings of the Law & Regulation Committee are held on the third Thursday of April, June, August and November at 9:00 a.m.
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Tracy Mendonsa, Chair
Karen Alvord, Committee Member
Michelle Sheidenberger, City Attorney
Carmen Avalos, City Clerk
AMENDED
AGENDA
Law & Regulation Committee
Meeting June 18, 2026
9:00 AM
Civic Center Meeting Rooms 1 & 2,
311 Vernon Street
I. CALL TO ORDER
II. ROLL CALL
III. PLEDGE OF ALLEGIANCE
IV. PUBLIC COMMENTS
V. REQUESTS/PRESENTATIONS
1. Minutes of Prior Meeting
Summary: Staff recommends the Law & Regulation Committee members approve the minutes of the March 20, 2025 Law & Regulation Committee meeting.
CONTACT: Adilia Keller 916-774-5265 [email protected]
2. State & Federal Priority Legislation - June 2026
Summary: This report provides an update on the 2026 California Legislative Session, including significant state legislation that may impact City operations, local authority, public safety, infrastructure delivery, housing and homelessness programs, and fiscal sustainability. The report highlights key bills being monitored by the City's Government Relations Office and provides recommended positions on legislation affecting municipal interests.
CONTACT: Rob Baquera 916-746-1170 [email protected]
3. Electric Department Priority Legislation - June 2026 Summary: This report provides an update on energy-related legislation and other activities that the Electric Department has been following throughout the 2026 legislative session.
CONTACT: Chris Romero 916-746-1660 [email protected]
4. Environmental Utilities Priority Legislation - June 2026
Summary: This report provides an update on state and federal activities that staff have been engaged in and legislation that staff has identified as potentially having a significant impact on City utility customers and the Environmental Utilities Department.
CONTACT: Sarah Starr 916-774-5767 [email protected] VI. STAFF/COMMISSIONER REPORTS
VII. ADJOURNMENT
Law & Regulation Committee
Communication
Meeting Date: 6/18/2026
Item #: V.1
Item ID: 2026-517
Title: Minutes of Prior Meeting
Contact: Adilia Keller 916-774-5265 [email protected]
SUMMARY
Staff recommends the Law & Regulation Committee members approve the minutes of the March 20, 2025 Law & Regulation Committee meeting.
RECOMMENDATION
Approve the minutes of the March 20, 2025 Law & Regulation Committee meeting.
Respectfully Submitted,
Adilia Keller, City Clerk Technician
Carmen Avalos, City Clerk
ATTACHMENTS:
1. Minutes of March 20, 2025
REVIEWERS:
Adilia Keller, City Clerk Department Created/Initiated - 6/5/2026
Law & Regulation Committee
Communication
Meeting Date: 6/18/2026
Item #: V.2
File #: 0103-32-02
Item ID: 2026-516
Title: State & Federal Priority Legislation - June 2026 Contact: Rob Baquera 916-746-1170 [email protected]
SUMMARY
This report provides an update on the 2026 California Legislative Session, including significant state legislation that may impact City operations, local authority, public safety, infrastructure delivery, housing and homelessness programs, and fiscal sustainability. The report highlights key bills being monitored by the City's Government Relations Office and provides recommended positions on legislation affecting municipal interests.
RECOMMENDATION
Review and discuss significant state legislation identified by staff as having potential impacts on the City of Roseville. The Committee may provide feedback and direction regarding legislative priorities, advocacy efforts, and recommended City positions on selected bills.
BACKGROUND
This report provides an update on the 2026 California Legislative Session and highlights significant legislation that may impact the City of Roseville. As the Legislature moves beyond the House of Origin deadline, attention shifts to second-house policy and fiscal committees where bills are often amended and refined before final consideration.
Staff continues to monitor legislation affecting local government operations, infrastructure delivery, public safety, housing and homelessness, fiscal sustainability, and local control. The measures highlighted below represent legislation that could have meaningful impacts on City services, resources, authority, or future policy decisions.
2026 Legislative Session Status
The Legislature recently passed the May 29 House of Origin deadline, requiring bills to advance out of their originating house in order to remain active. The focus now turns to policy and fiscal committee hearings in the second house, where significant amendments frequently occur.
Key upcoming dates include:
• June 15 – Budget Bill must be passed by midnight
• Summer 2026 – Second-house policy and fiscal committee hearings • August 31 – Last day for each house to pass bills
• September 30 – Governor's deadline to sign or veto legislation As bills advance through the Legislature, staff will continue coordinating with departments and
stakeholders to assess impacts and determine whether advocacy or engagement is warranted.
Legislative Themes
Several policy themes continue to emerge this year and are reflected in the legislation highlighted below:
Local Control and State Preemption
The Legislature continues to consider measures that would shift authority from local governments to the state in areas such as permitting, transportation planning, housing development, and infrastructure implementation.
Infrastructure Delivery and Construction Costs
Bills affecting prevailing wage, procurement methods, design-build authority, and project delivery continue to be major issues for local governments managing capital improvement programs.
Public Safety Technology and Enforcement
The Legislature is considering measures related to automated license plate readers, organized theft, DUI enforcement, emergency medical response, and other public safety tools and programs.
Housing and Homelessness
Housing production, housing element compliance, homelessness funding, and state accountability requirements remain significant legislative priorities.
Fiscal Sustainability
Several bills could affect local government revenues, pension obligations, cost recovery authority, and long-term budget planning.
Transportation and Mobility
Legislation addressing transportation funding, bicycle and pedestrian facilities, electric bicycles, and roadway funding continues to advance through the Legislature.
Significant Legislation
Public Works and Infrastructure
AB 1198 (Haney) – Public Works: Prevailing Wage (Oppose) Existing law generally establishes prevailing wage rates based on the date a public works project is advertised for bid, providing local agencies and contractors with certainty when preparing budgets and proposals. AB 1198 would modify that framework by allowing updated prevailing wage determinations to apply later in the procurement process under certain circumstances. The bill also establishes a formal process allowing contractors, awarding bodies, and labor representatives to challenge prevailing wage determinations through the Department of Industrial Relations. Staff Comments: The bill could increase
uncertainty in project budgeting and procurement and may result in additional costs for City capital improvement projects.
AB 1786 (Harabedian) – Best Value Construction Contracting (Support) Existing law authorizes counties to utilize best value procurement for certain construction projects, allowing agencies to evaluate contractor qualifications, safety records, project approach, and past performance in addition to cost. AB 1786 would expand this authority to cities, lower the threshold for use from $1 million to $500,000, and extend the authorization until January 1, 2040. The bill maintains existing reporting requirements intended to evaluate project performance and outcomes. Staff Comments: The bill would provide additional flexibility in selecting contractors and may improve project delivery on complex infrastructure projects.
AB 2033 (Papan) – Job Order Contracting (Support)
AB 2033 would authorize cities to utilize Job Order Contracting (JOC) for repair, renovation, maintenance, and other repetitive construction work. Under a JOC program, contractors are selected through a competitive process and projects are assigned using preset unit pricing rather than requiring separate procurements for each individual project. The bill prohibits the use of JOC for new construction projects and limits annual contract amounts. Staff Comments: The bill would provide an efficient delivery tool for smaller maintenance and rehabilitation projects while reducing procurement timelines.
SB 935 (Choi) – Local Agency Design-Build Projects (Support) Current law authorizes local agencies to utilize the design-build project delivery method through statutory authority that periodically sunsets. SB 935 would make local agency design-build authority permanent.
Design-build allows agencies to award a single contract for both design and construction services, potentially reducing project timelines and improving coordination between designers and contractors. Staff Comments: The bill preserves an important project delivery option that can improve efficiency on major infrastructure projects.
SB 1001 (Archuleta) – Emergency Identification Card Program (Support) SB 1001 would require the Governor's Office of Emergency Services to establish a statewide credentialing program for utility and critical infrastructure personnel. The program would allow authorized personnel access to restricted disaster areas during emergencies to restore essential services and infrastructure.
Credentialing standards would be based on federal personal identity verification requirements. Staff Comments: The bill would improve emergency response and recovery efforts by facilitating access for critical infrastructure personnel.
Transportation and Mobility
AB 1421 (Wilson) – Road Usage Charge Technical Advisory Committee (Watch) California currently relies heavily on fuel taxes to fund transportation infrastructure. As vehicle fuel efficiency increases and electric vehicle adoption continues to grow, transportation revenues are declining.
AB 1421 would require the California Transportation Commission to continue studying mileage-based road usage charges and prepare recommendations regarding potential future transportation funding
mechanisms. Staff Comments: While the bill does not create a new fee, it continues discussions regarding long-term transportation funding alternatives.
AB 1976 (Wicks) – Pedestrian and Bicycle Facilities (Oppose) AB 1976 would limit local discretion over certain bicycle and pedestrian projects once they have been included in an adopted transportation or circulation plan. The bill restricts the ability of local agencies to terminate projects after construction begins and limits when additional community engagement may occur.
The measure also establishes requirements related to traffic calming projects and pedestrian mall conversions. Staff Comments: The bill raises local control concerns and may reduce flexibility to respond to community feedback and changing project conditions.
AB 1569 (Davies) – Electric Bicycle Safety Education (Support) AB 1569 would require the California Department of Education, in consultation with the California Highway Patrol, to develop a statewide electric bicycle safety curriculum for students in grades seven through twelve. The curriculum would address safe operation, applicable laws, rider responsibilities, and collision prevention. Staff Comments: The bill aligns with local efforts focused on improving youth e-bike safety and education.
AB 1942 (Bauer-Kahan) – Electric Bicycle Registration (Watch) AB 1942 would establish registration requirements for specified classes of electric bicycles and require the Department of Motor Vehicles to develop a registration and identification system. The bill is intended to improve accountability and enforcement while addressing growing concerns regarding e-bike safety and compliance. Staff Comments: Staff will continue monitoring the bill as implementation details and enforcement provisions evolve.
Local Control, Permitting and Development
AB 1820 (Schiavo) – Electric Vehicle Charging Stations: Permit Fees (Oppose) AB 1820 would establish statewide caps on permit fees charged for electric vehicle charging station installations unless local agencies adopt findings demonstrating the need for higher fees. The bill is intended to reduce costs associated with EV infrastructure deployment. Staff Comments: The bill may limit the City's ability to fully recover costs associated with permit review, inspections, and administration.
SB 222 (Wiener) – Water Heater and HVAC Installations (Oppose) SB 222 would require local agencies to implement new permitting and inspection procedures for certain residential heat pump water heater and HVAC installations. The bill promotes the use of asynchronous and remote inspections and establishes statewide standards for permit processing. Staff Comments: The measure could affect local permitting operations and reduce flexibility in inspection practices.
SB 445 (Wiener) – Transportation Projects: Permits and Approvals (Oppose) SB 445 would establish expedited timelines, or "shot clocks," for local review and approval of certain transportation projects, including projects involving transit, active transportation, pedestrian, bicycle, and
related mobility improvements. Under the bill, if a local agency does not act within prescribed timelines, project approvals could be deemed granted, allowing project proponents or transit agencies to proceed with construction without full local review. Staff Comments: The bill raises concerns regarding local control by imposing state-mandated review timelines that may limit the City's ability to fully evaluate project impacts, coordinate infrastructure needs, and address community concerns.
Public Safety
AB 1941 (Gonzalez) – Organized Metal Theft (Support)
AB 1941 creates new criminal penalties targeting organized metal theft operations. The bill would make it unlawful to organize, direct, finance, or participate in coordinated efforts to steal and traffic copper wire, utility infrastructure materials, catalytic converters, and other specified metals. Violations could be prosecuted as misdemeanors or felonies depending on circumstances. Staff Comments: The bill provides additional enforcement tools to address thefts that impact public infrastructure and utility systems.
SB 1013 (Cervantes) – Automated License Plate Recognition Systems (Oppose Unless Amended) SB 1013 would impose additional requirements on law enforcement agencies that utilize Automated License Plate Recognition (ALPR) systems. The bill would establish new restrictions on how ALPR data may be shared, require agencies to enter into written agreements with entities receiving ALPR information, prohibit participation in certain data-sharing arrangements unless specific conditions are met, and impose additional reporting, auditing, and compliance requirements. The measure also seeks to establish statewide standards governing the collection, retention, access, and dissemination of ALPR information and would limit the ability of agencies to automatically share data through regional or national ALPR networks. Staff Comments: ALPR technology is routinely used to support criminal investigations, recover stolen vehicles, and locate missing persons. The bill could limit regional information sharing and create additional administrative requirements for agencies utilizing ALPR systems.
SB 936 (Blakespear) – Nitrous Oxide Sales (Support)
SB 936 would restrict the sale and distribution of nitrous oxide products commonly used for recreational inhalation. The bill includes limitations on sales practices, product packaging, and retail distribution. Staff Comments: The measure seeks to address growing public health and youth safety concerns associated with nitrous oxide misuse.
SB 431 (Arreguín) – Assault and Battery Against Utility Workers (Support) SB 431 would increase criminal penalties for assaults committed against utility workers while they are performing their official duties. The bill recognizes utility workers in a manner similar to protections provided for other public-facing employees. Staff Comments: The bill provides additional protections for employees performing essential field operations.
Conclusion
As the Legislature moves into the second half of the 2026 legislative session, several significant bills continue to advance that may affect City operations, finances, infrastructure delivery, housing programs,
and public safety services.
Staff will continue monitoring legislation, coordinating with impacted departments, and engaging with stakeholders as appropriate. Future updates will be provided to the Law and Regulation Committee as bills continue through the legislative process and move toward final consideration by the Governor.
FISCAL IMPACT
There is no direct fiscal impact associated with this Law and Regulation Committee report. The costs associated with legislative tracking and advocacy are included in the City's adopted budget.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The action of reviewing legislation meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Respectfully Submitted,
Rob Baquera, Government Relations Administrator
Dennis Kauffman, Chief Financial Officer/Assistant City Manager
ATTACHMENTS:
REVIEWERS:
Rob Baquera, Public Affairs and Communications Department Created/Initiated - 6/3/2026
Law & Regulation Committee
Communication
Meeting Date: 6/18/2026
Item #: V.3
File #: 0103-32-02
Item ID: 2026-514
Title: Electric Department Priority Legislation - June 2026 Contact: Chris Romero 916-746-1660 [email protected]
SUMMARY
This report provides an update on energy-related legislation and other activities that the Electric Department has been following throughout the 2026 legislative session.
RECOMMENDATION
Discuss and provide input on any state legislation presented to the committee.
BACKGROUND
An overview of the state energy items that the Electric Department has been following is below:
State Regulatory:
Cap-and-Invest Regulations:
The California Air Resources Board (CARB) is in the middle of a rulemaking to update their Cap-and- Invest (formerly Cap-and-Trade) program. CARB proposed to update the annual greenhouse gas (GHG) emissions allowances allocated to each Electrical Distribution Utility (EDU) for the 2027-2030 period.
Allowances were previously set for 2021-2030 in the existing regulations. Under the Proposed Regulations, Roseville will lose approximately 170,329 allowances. Roseville expects this reduction to impact our customers through higher rates and/or reduced utility programs and services. Roseville submitted comments in both public comment windows closing in March and May of 2026. In both sets of comments, Roseville advocated that the CARB “do no harm” and maintain Roseville’s allowance allocations as previously established in the existing regulations for the 2021-2030 period. Staff Comments: CARB’s Cap-and-Invest Proposed Regulations reduce Roseville’s allowance allocations in the near term to the detriment of the utility and our customers. Roseville would be remiss if we did not advocate on behalf of our customers given the expected impact of this change.
In addition to the formal comment windows, Roseville submitted a letter to the Governor’s office and CARB board members during the final weeks before the May 28th adoption date. This letter was consistent with Roseville’s comments in the docket and aligns with the City’s adopted Legislative Platform where engagement on the cap-and-invest program was anticipated for 2026.
Roseville staff also provided public testimony at the CARB board hearing on the 28th. Ultimately, CARB voted to move forward with the proposal. The proposed regulations are headed to the Office of Administrative Law for final approval and will be effective in September of 2026. It is important to note that these final regulations are a significant improvement from the original proposal where Roseville would have seen more than double the losses. In our public testimony to the CARB board, Roseville indicated we would like to work with the CARB in future rulemakings to remedy these near-term impacts on our city.
State Legislation:
AB 34 (Patterson) California Renewables Portfolio Standard Program: local publicly owned electric utilities: large hydroelectric generation. (Support) -
The bill would extend existing provisions allowing a proportional reduction in RPS requirements for certain POUs with large hydroelectric generation. Staff Comments: Our trade association NCPA is leading the support for this legislation, expressing that without AB 34, certain POUs, would be forced to purchase additional renewable resources they do not need, driving millions in unnecessary costs to ratepayers. This bill is relevant to POUs because it addresses how certain hydro-heavy POUs may calculate or reduce RPS compliance obligations. Roseville Electric recommends monitoring this policy discussion closely because the bill could affect compliance flexibility, renewable procurement needs, and equity considerations among POUs with different resource portfolios in the future.
AB 710 (Irwin) Electricity: Local publicly owned electric utilities: advanced metering infrastructure. (Watch) -
This bill would require the governing board of each local publicly owned electric utility to analyze Advanced Metering Infrastructure (AMI) feasibility by January 1, 2028 and develop a complete AMI deployment plan by January 1, 2029 where feasible. Staff Comments: Given Roseville has already implemented AMI, we view the requirements of this bill to be fulfilled.
AB 1777 (Garcia) Air pollution: indirect sources. (Oppose) - This bill authorizes the State Air Resources Board (CARB), if necessary to carry out its duties, to adopt regulations to reduce or mitigate emissions from indirect sources of pollution, as part of its responsibility to meet ambient air quality standards. Staff Comments: This bill is not directed specifically at electric utilities, but it could affect energy-related facilities. Indirect sources that would be impacted under this legislation include a facility, building, a road or highway which attracts mobile sources of pollution. The department is concerned that mobile traffic at any one of our facilities could potentially be included. For these reasons, the Electric Department is opposing this legislation through our trade association NCPA.
AB 1820 (Schiavo) Electric vehicle charging stations: permit fees. (Oppose) – This bill establishes fee limits for local permits for electric vehicle charging stations through January 1, 2036. The bill caps certain residential and commercial EV charging permit fees, while allowing higher fees if supported by written findings and substantial evidence of actual permitting costs. Staff Comments: This legislation will impact city fees related to permitting electric vehicle charging stations. The city is already required to have a strict nexus regarding how a fee is charged, which makes this bill unnecessary and limits Roseville’s ability to recoup actual costs. The department opposes this bill, which seeks to erode local control on determining permit fee values for local EV deployment.
AB 1941 (Mark González) Organized metal theft. (Support) - This bill would create new crimes of organized metal theft. AB 1941 states the intent of the legislature to support local governments and law enforcement agencies through enhanced coordination and penalties targeting organized theft networks and protect public infrastructure, utilities, and community safety from the escalating economic and social harms caused by metal theft. The bill also authorizes local law enforcement, public agencies, and private entities to share metal theft information with the Department of Justice (DOJ) and requires DOJ to make that information available to participating agencies and entities.
Staff Comments: This bill is directly relevant to utilities because organized metal theft can target electric system assets. The Electric Department supports this legislation to deter organized theft activity affecting electric utility operations.
AB 2516 (Petrie-Norris) California Grid Manufacturing Initiative. (Watch) - This bill requires the GO-Biz Energy Unit to lead the development of the California Grid Manufacturing Initiative, in coordination with other state entities. AB 2516 also requires the Energy Unit to identify and procure key components of the electricity grid and incentivize both new and existing in-state manufacturing to support the buildout of grid infrastructure. Participating public utilities would be allowed to submit purchasing projections where they seek the Energy Unit’s assistance, authorize centralized procurement in specified circumstances, and authorize financial assistance and other tools to expand in-state manufacturing of critical grid components. Staff Comments: Department staff recommend monitoring AB 2516 because the bill may affect procurement options, market access, local manufacturing incentives, and the cost and availability of electric utility components needed for capital and maintenance work.
AB 2647 (Calderon) Energy: nuclear powerplants: assessment. (Watch) - This bill would require the California Energy Commission (CEC), on or before July 1, 2027, to prepare a comprehensive assessment of the potential role of advanced nuclear technologies in supporting critical infrastructure in California and the potential for new in-state nuclear powerplants to cost-effectively meet statewide electricity needs. The bill would also authorize the CEC to update the assessment as appropriate. Staff Comments: Although the bill does not require procurement by POUs, it could shape future state policy discussions around employing nuclear energy. The Electric Department recommends monitoring because any shift in California’s treatment of advanced nuclear technologies could influence long-term planning assumptions, statewide resource policy, and cost-reliability discussions relevant to municipal utilities.
SB 868 (Wiener) Electricity: portable solar generation devices. (Watch) -
This bill would exempt portable solar generation devices from interconnection requirements imposed by state law, the CPUC, and local publicly owned electric utility rules, and would prohibit utilities from requiring agreements, approval, or fees related to a customer’s use of the device. It defines a “portable solar generation device” to be a moveable photovoltaic (PV) energy generation device that has a maximum aggregated alternating current (AC) output of 1,200 watts per dwelling. The device must meet National Electrical Code standards and include a feature that isolates the device from the building’s electrical system to prevent back feeding electricity to the electrical grid during a power outage. This bill allows a local publicly owned electric utility to require customer notification through a simple online registration form identifying the address and size of the portable solar generation device. Staff Comments: Many individuals are beginning to deploy portable solar generation devices in their backyards or on their home balconies. SB 868 allows POUs to request info regarding where these devices are located but does not allow further refusal of the use of these devices. The department will continue to monitor the uptake of these technologies in our community.
SB 1011 (McNerney) Energy: Utility Infrastructure AI Safety, Oversight, and Workforce Protection
Act. (Oppose) –
This bill would require the California Public Utilities Commission (PUC), on or before January 1, 2028, to adopt standards for electrical and gas corporations’ use of artificial intelligence models and to require those corporations to file compliance plans. The bill will also authorize the commission to prohibit use of an artificial intelligence model if it finds that deployment would negatively impact safe, affordable, and reliable service. In addition, each POU would be required to adopt a policy regarding its use of artificial intelligence models that are consistent with the commission’s standards. Staff Comments: This bill would require Roseville to adopt an AI-use policy consistent with CPUC adopted standards. While this bill has been significantly amended for the better, the POU community is still seeking amendments that would allow POUs to adopt and employ our own AI policy – consistent with the needs of the POU community not the CPUC.
SB 1266 (Stern) Crimes: theft. (Support) -
This bill would impact theft laws relating to copper materials. Every person who steals, takes, or carries away copper materials of another, including, but not limited to, copper wire, copper cable, copper tubing, and copper piping, which are of a value exceeding nine hundred fifty dollars ($950) is guilty of grand theft.
The bill would require the value of the theft to be calculated as the full cost to the victim to repair and replace the stolen materials, including labor and equipment, rather than fair market scrap value. Staff Comments: Roseville supports this bill because copper theft directly affects utility infrastructure safety and reliability. Department staff submitted a signed city advocacy letter of support for SB 1266.
SB 1329 (McNerney) Real property tax: valuation: active solar energy system. (Watch) - This bill would establish more uniform rules regarding valuation of active solar energy systems for property-tax purposes. The bill provides that the preferred valuation method is the “replacement cost new” less depreciation and other forms of obsolescence, and limits valuation to the tangible property comprising the active solar energy system. This bill would take effect immediately as a tax levy. Staff Comments:
The bill is intended to ensure that solar power continues to grow post-2026 in California by creating a uniform standard for solar property taxes. This bill does not directly regulate utilities, but it will have an impact on solar economics. The Electric Department recommends monitoring AB 1329 because changes in solar tax valuation may affect customer behavior, project economics, and the pace of solar development in our community.
SB 1350 (McNerney) Energy: renewable electrical generation facilities: definition. (Watch) - This bill would expand the definition of renewable generation to include qualifying hydrogen-fueled electricity, with guardrails to ensure alignment with the Renewable Portfolio Standard and prevent resource shuffling. Staff Comments: This bill could affect how resources are classified for state renewable policy purposes. Any change to the statutory renewable definition could have downstream implications for procurement strategy, compliance treatment, and broader renewable policy implementation for our department. The Electric Department recommends a watch position.
Conclusion:
The Electric Department will continue to keep the committee up to date on these important legislative proposals and request any direction as needed.
FISCAL IMPACT
The costs of monitoring and assessing legislative and regulatory activities is contained within the City’s current operating budget.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378.
The action of reviewing legislation meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Respectfully Submitted,
Chris Romero, Government Relations Representative
Daniel Beans, Electric Utility Director
ATTACHMENTS:
REVIEWERS:
Chris Romero, Electric Department - Resource Planning & Generation Created/Initiated - 6/3/2026 Daniel Beans, Electric Department - All Approved - 6/3/2026 Adilia Keller, City Clerk Department Final Approval - 6/5/2026
Law & Regulation Committee
Communication
Meeting Date: 6/18/2026
Item #: V.4
File #: 0103-32-02
Item ID: 2026-515
Title: Environmental Utilities Priority Legislation - June 2026 Contact: Sarah Starr 916-774-5767 [email protected]
SUMMARY
This report provides an update on state and federal activities that staff have been engaged in and legislation that staff has identified as potentially having a significant impact on City utility customers and the Environmental Utilities Department.
RECOMMENDATION
This staff report provides updates to the Law and Regulation Committee on priorities outlined in the City of Roseville’s Legislative Platform. This includes state and federal legislative, regulatory, and other relevant activities being tracked and acted on by the Environmental Utilities Department (EU).
BACKGROUND
The California State Legislature is in the second year of the two-year session and has reached its halfway point. May 29, 2026 was the last day for each house to pass bills introduced in its respective house, also known as the House of Origin Deadline. Below is an update on high-priority bills for the Environmental Utilities Department, some of which have previously been shared with the Law and Regulation Committee, and others EU has taken a position on since we last met. We have also included a category for a two-year bill previously shared with the committee last year, that was held in the second house at the end of the 2025 session and may now be acted upon again.
State Legislation
AB 35 (Alvarez) Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024: Administrative Procedure Act: exemption: program guidelines and selection criteria (Support)
This bill would exempt Proposition 4 funding from the Administrative Procedure Act (APA) process. Staff Comments: The 2024 Proposition 4 Climate Bond invests $10 billion in local projects to protect drinking water, reduce wildfire and flood risks, restore natural places, support working lands, and expand access to parks and outdoor spaces. An exemption from the APA process would enable funds for various projects to be deployed more quickly. The Sacramento Regional Water Bank (Water Bank) is one example of a regional project that could benefit from more timely funding. The Water Bank would help local water providers, like Roseville, improve drought and climate resilience by storing and recovering groundwater supplies for future use. Roseville is supporting AB 35, which has been referred to the Senate Natural Resources and Water Committee and is expected to be heard on June 9, 2026.
AB 2026 (Aguiar-Curry) Water diversion: groundwater recharge: permit (Support) This bill would provide the ability to divert flood flows for groundwater recharge without a water right, by broadening the definition of flood flows to include releases from flood operations. It also removes the existing sunset to divert flood flows for groundwater recharge without a permit, which is set to expire
January 1, 2029. Staff Comments: The Regional Water Authority and the Northern California Water Association are co-sponsoring AB 2026. This bill could significantly increase Roseville’s ability to capture and store high-flow surface water for groundwater recharge by creating clearer rules and more streamlined permitting process. Regional projects, like the Water Bank, could see increased water storage, which helps to improve long-term water supply reliability for the region. Roseville is supporting AB 2026 through our associations, and this measure has passed the Assembly Floor and is now in the Senate awaiting a committee assignment.
AB 2180 (Ward) Local government: Proposition 218 Omnibus Implementation Act: proportional cost of service (Support)
This bill would clarify how agencies comply with Proposition 218’s proportionality requirement by codifying that local agencies may rely on reasonable cost allocation methodologies supported by existing, estimated, or projected data and clarifies that water agencies may establish uniform or tiered rate structures. Staff Comments: Roseville’s current potable water rate structure uses fixed meter charges and a uniform volumetric charge to ensure that water rates are proportional to the cost of service attributable to each parcel, as required under Proposition 218. This bill would provide additional legal clarity and flexibility for allocating costs in future water and wastewater rate studies. The Association of California Water Agencies (ACWA) is sponsoring this measure and Roseville has joined a coalition letter in support of the bill. AB 2180 has been referred to the Senate Local Government Committee and is awaiting a hearing date.
AB 2469 (Papan) Data centers: water use disclosures (Watch) This bill would prohibit a city or county from approving a discretionary or ministerial permit or other entitlement if it results in the construction, or an expansion of a data center if it increases the maximum peak water use unless the data center provides specific information. Additionally, by June 20, 2028, the Department of Water Resources and the Water Board shall adopt a CII water use classification for users that qualify as large consumptive use facilities, including data centers. Staff Comments: Some of the information that data centers would be required to provide to Roseville includes a water supply assessment, a water scarcity plan, and projected and actual water use. This information would help EU to plan for a long-term water supply reliability that supports both the City’s needs and future development.
Roseville is currently watching this bill and working through our associations to seek amendments related to the proposed new CII classification for large consumptive users, including data centers. Under the “Making Conservation a California Way of Life” regulations, urban water suppliers are already required to classify CII water users by mid-2027. There are concerns that this bill could unintentionally disrupt or duplicate ongoing implementation efforts if data centers have already been incorporated into existing classifications under the current regulatory framework. Additionally, this bill raises concerns as it pushes local governments toward using state-developed guidance and best practices, rather than local conditions, when it comes to evaluating data centers. AB 2469 has passed the Assembly Floor and is now in the Senate awaiting a committee assignment.
AB 2739 (Soria) Water: affordability and system stabilization (Support) This bill would create the Water Affordability and System Stabilization Trust (the Trust) to use investment earnings to provide grant funding to local water suppliers for infrastructure projects and to support funding for a statewide low-income water rate assistance program. Staff Comments: This bill works in conjunction with SB 1125 (Menjivar) to establish the necessary funding structure that addresses water affordability at both the household and system level. Having a new source of state funding for infrastructure projects,
such as system repairs, upgrades, and water quality improvements helps to reduce cost pressures on local ratepayers. The bill would also support direct customer bill assistance, which aligns with the Water Rate Assistance Program (WRAP) that Roseville established in December 2025. Sponsors of the bill are still working to identify a long-term funding source for the program, as future legislative appropriations would be required. Roseville has been actively advocating on this measure, alongside regional and statewide partners and environmental justice advocates, and has joined a coalition letter in support of the bill. AB 2739 has passed the Assembly Floor and is now in the Senate awaiting a committee assignment.
AB 2777 (Committee on Environmental Safety and Toxic Materials) State Water Quality Control Fund: loan and grant moneys: notification (Support)
This bill would eliminate the 50% General Obligation Bond rate limitation for Clean Water State Revolving Fund (SRF) loan interest rates in statute. Staff Comments: This bill is being sponsored by WateReuse California (WRCA) and the California Association of Sanitation Agencies (CASA). If enacted, this bill would allow the SRF program greater flexibility to offer larger loan products, which are currently capped at $50 million, in exchange for a slightly higher interest rate. Allowing additional flexibility in loan structuring could increase revenue flowing back into the SRF program, helping to sustain its operations and ensuring that critical infrastructure projects, including water quality improvements and wastewater infrastructure upgrades, receive funding in a timely manner. Roseville is supporting AB 2777 which has passed the Assembly Floor and is now in the Senate awaiting a committee assignment.
SB 501 (Allen) Responsible Battery Recycling Act of 2022: covered batteries (Support) This bill would add medium format batteries, including those found in e-bikes and e-scooters, to the Responsible Battery Recycling Act of 2022, which requires producers, through the creation of one of more stewardship organizations, to develop, fund, and implement a stewardship program for the collection and recycling of covered batteries. Staff Comments: Adding medium format batteries to the Responsible Battery Recycling Act of 2022 ensures that the responsible end-of-life management for these products falls on the producers of these products, rather than on Roseville’s ratepayers. Medium format batteries pose growing safety concerns for our waste services workers and community members because they easily catch fire. In fact, in recent weeks, our Waste Services Division has seen a number of fires caused by batteries being improperly disposed of. Roseville is supporting SB 501 as it aligns with Council Resolution 10-278 to support Extended Producer Responsibility (EPR) laws. SB 501 has been referred to the Assembly Committees on Environmental Safety and Toxic Materials and Natural Resources and is expected to be heard on June 16, 2026.
SB 1010 (Ashby) Solid waste: Refrigerant Stewardship and Recovery Act (Support) This bill would create an Extended Producer Responsibility (EPR) program for household appliances containing refrigerants, known as the Refrigerant Stewardship and Recovery Act. This bill would require the producer of certain household appliances containing refrigerants to form and join a producer responsibility organization to fund and manage the collection, recycling, and safe disposal of these products at the end of life. Staff Comments: Products included under this bill are refrigerators, freezers, air conditioners, and other cooling appliances that contain refrigerants to ensure proper end-of-life management of these harmful gases. Many of these units are not properly processed to recover all of the hazardous components, leaving the waste industry without funding for the safe, end-of-life management for these products. Additionally, the costs for the proper disposal of these products ranges from $25-$125 per unit, which causes many of these to be illegally dumped, thereby passing the costs of collection and proper recycling onto local governments and its ratepayers. Roseville is supporting this bill through a
coalition letter led by the California Product Stewardship Council (CPSC) as it aligns with Council Resolution 10-278 to support EPR laws. SB 1010 has passed the Senate Floor and is now in the Assembly awaiting a committee assignment.
SB 1085 (Durazo) Water supply planning: housing developments (Watch) This bill would require cities and counties to confirm that large development projects have enough long- term water supply by requiring a Water Supply Assessment (WSA) as part of the approval process. Staff Comments: The requirement to prepare a WSA would also apply to large development projects that were recently exempted from the California Environmental Quality Act (CEQA) process. WSAs help ensure that developers and local agencies evaluate whether sufficient water supplies are available to serve a proposed project over a 20-year period, including during drought conditions. Recent legislation focused on streamlining housing development created exemptions where certain large projects were no longer required to complete a WSA. This bill would restore an important safeguard. Roseville is watching this bill through our associations, as the impacts are more focused on special districts and other water suppliers that coordinate land use planning across multiple jurisdictions. As a full-service city, Roseville is able to work with the City’s Development Services Department during the planning process. This measure is being sponsored by East Bay Municipal Utility District, which is a regional partner. SB 1085 has passed out of the Senate and has been referred to the Assembly Committees on Water, Parks, and Wildlife and Local Government where it is awaiting hearing dates.
SB 1125 (Menjivar) Water Rate Assistance Program (Support) This bill would establish a statewide Water Rate Assistance Program to provide direct bill assistance for residential water services to low-income ratepayers. Staff Comments: This measure works alongside AB 2739 (Soria) to help address affordability challenges that local agencies cannot fully solve on their own due to Proposition 218 cost-of-service limitations. The approach as outlined in SB 1125 would create a statewide funding source that could compliment Roseville’s WRAP, which is currently funded through late fees. Funding for the program would come from the Trust that is established in AB 2739 (Soria). Roseville has been actively advocating on this measure, along regional and statewide partners and environmental justice advocates and has joined a coalition letter in support of the bill. SB 1125 has passed the Senate Floor and is now in the Assembly awaiting a committee assignment.
SB 1330 (Arreguin) Assault and battery: utility workers (Support and Amend) This bill would expand current law to make an assault or battery committed against a utility worker who is out on the job punishable by imprisonment in a county jail up to 1 year and/or a fine of up to $2,000. Staff Comments: Roseville is supporting SB 1330 and seeking amendments, as the bill would currently only provide these protections for our water and electric utility workers. Since EU encompasses other utilities, like our wastewater and waste services utility workers, we are working with CASA and CPSC to include language that would get these classifications included within the bill. This bill would provide critical protection for our water and electric utility workers when out on the job and we hope to see further amendments for Roseville’s other utility workers. SB 1330 has passed the Senate Floor and is now in the Assembly awaiting a committee assignment.
SB 1337 (Richardson) Interagency Working Group on Transportation Fuels Transition Strategy (Watch)
This bill would establish the Interagency Working Group on Transportation Fuels Transition Strategy to develop policy priorities and programs across agencies to inform the transition of transportation fuels. Staff
Comments: As the state is shifting toward electrification, staff would like to see acknowledgement for other transportation fuel alternatives, like the Renewable Natural Gas (RNG) that Roseville produces at the Energy Recovery Project at Pleasant Grove Wastewater Treatment Plant from the conversion of waste to fuel. As currently written, local agencies, like Roseville, would have the opportunity to participate in this working group where we could help to develop statewide transportation fuel policies; however statewide associations like CASA would not. Roseville has gotten CASA to seek amendments to be included as a participant in the workgroup to help ensure there is durable pathway for our RNG. SB 1337 has passed the Senate Floor and is now in the Assembly awaiting a committee assignment.
Two-Year Bills
SB 601 (Allen) Water: waste discharge (Oppose)
This bill defines a new category of state waters called “nexus waters” and would expand the Water Board’s authority to adopt water quality control plans for any waters of the state (i.e. nexus waters) and requires existing discharge requirements to include state policies for water quality control. Staff Comments: SB 601 expands the State Water Resources Control Board’s (Water Board) authority, by creating a new term “nexus waters” to include all waters of the state that are not also navigable waters, except certain waters as defined. SB 601 as written would likely result in unclear and unintended consequences and would create challenges and could significantly increase permitting and compliance obligations. Roseville has been opposing this bill through a coalition led by the California Chamber of Commerce (CalChamber).
Notably, on January 1, 2026 the Water Board released a Sackett report to the Legislature that analyzed how the U.S. Supreme Court’s 2023 decision in Sackett vs. Environmental Protection Agency reshaped California’s water-quality regulatory landscape. The report states that many waters previously covered federally are now regulated mainly under California state law, which essentially calls into question the need for SB 601. As a result, CASA and the California Stormwater Quality Association (CASQA) have been working through conversations with the author’s office and the Governor’s office to find a path forward. SB 601 is current in the second house and will be eligible to be brought back up again when committees resume in June, but it is unlikely that it will move forward in its current form.
FISCAL IMPACT
The costs of monitoring and assessing legislative and regulatory activities is contained within the City’s current operating budget. The fiscal impact of proposed legislative or regulatory action to the City is often unknown until later in the process. Staff will continue to monitor impacts throughout the legislative process.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The action of reviewing legislation meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Respectfully Submitted,
Sarah Starr, Government Relations Representative
Sean Bigley, Environmental Utilities Director
ATTACHMENTS:
REVIEWERS:
Sarah Starr, Environmental Utilities Department - Strategic Affairs Division Created/Initiated - 6/3/2026 Sean Bigley, Environmental Utilities Department - All Approved - 6/3/2026 Adilia Keller, City Clerk Department New -