Amended IN Assembly April 21, 2025 Amended IN Assembly March 10, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1020Introduced by Assembly Member SchiavoFebruary 20, 2025 An act to add Sections 593 and 913.7 to the Public Utilities Code, relating to electricity.LEGISLATIVE COUNSEL'S DIGESTAB 1020, as amended, Schiavo. Public utilities: energy: nontraditional taxpayer funding: reporting.Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law requires electrical corporations and gas corporations to submit various information to the commission, and requires the commission to annually report to the Legislature on, among other things, all sources and amounts of funding and actual and proposed expenditures, including any costs to ratepayers, related to entities or programs established by the commission, as specified.This bill would require each utility, defined as an investor-owned electrical corporation or gas corporation, to report certain information for any nontraditional taxpayer funding, as defined, that the utility has applied for or received. The bill would require the commission, for each application in which a utility is seeking ratepayer funding, to require the utility to report all relevant nontraditional taxpayer funding the utility is pursuing or has secured, and, if the commission determines that a utility is not in compliance with that requirement, the bill would authorize the commission to impose a penalty against the utility, as specified. The bill would require the commission to require each utility to promptly deliver the financial benefits of nontraditional taxpayer funding to ratepayers, as provided.This bill would require the commission to provide an annual report to the Legislature with a summary of the information on nontraditional taxpayer funding reported by each utility, including the number of grants or loans, the source of those grants or loans, the dollar amount received, the projects funded by the grants or loans, and the demonstrated ratepayer savings.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 593 is added to the Public Utilities Code, to read:593. (a) For purposes of this section, both of the following definitions apply:(1)Below-the-line account means an account that contains expenses that an electrical corporation or gas corporation does not recover from ratepayers.(2)Nontraditional funding means a nonratepayer funding source or preferential financing mechanism, including, but not limited to, federal grants or loans.(1) Taxpayer funding means any funds received from public entities in the form of grants, loans, or bonds.(3)(2) Utility means an investor-owned electrical corporation or gas corporation.(b) (1) Each utility shall include all of the following information in each quarterly report required by commission Resolution E-5254 (April 6, 2023) for any nontraditional taxpayer funding the utility has applied for or received:(A) The name of the grant or loan grant, loan, or bond funding source.(B) The dollar amount applied for or received.(C) A spending plan that includes both all of the following:(i) The project, element of operations, or other expenses for which these funds will be used.(ii) A description of each item described identified in clause (i), including project timelines.(iii) Whether each item identified in clause (i) is new or existing.(iv) Whether the funds used for each item identified in clause (i) are offsetting existing costs or are new costs.(D) A calculation of all value to, or savings expected to benefit, ratepayers from receipt of the nontraditional taxpayer funding, including estimates of all of the following:(i) Decreases in forecasts of expenses, capital, interest, and taxes.(ii) Locational grid benefits, such as avoided costs for future distribution, transmission, or generation investments.(iii) Changes in revenue requirements.(iv) Changes in average customer bills.(v) Tax savings.(E) The status of the application, whether it is approved, denied, or pending, and all of the following, as applicable:(i) If the application is pending, the expected date of decision.(ii) If the application is approved, the date awarded, a copy of the grant agreement, if applicable, the dollar amount awarded, and the duration of the grant or loan in months or years.(iii) If the application is denied, the date that decision was announced.(F) A list of all applications planned or pending at the commission where ratepayer funds are being sought for projects funded, in whole or in part, by nontraditional taxpayer funding.(2) If the commission determines that a utility is not in compliance with the quarterly reporting requirements in paragraph (1), the commission shall exercise its authority to require compliance by the utility and may pursue an enforcement action against the utility for noncompliance.(3) The utility shall ensure that the quarterly report complies with any information disclosure requirements of each funding source and pursuant to federal law.(c) (1) In each application in which a utility is seeking ratepayer funding, the commission shall require the utility to report all relevant nontraditional taxpayer funding the utility is pursuing or has secured.(2) (A)If the commission determines that a utility did not comply with paragraph (1), the commission may impose a penalty against the utility in an amount not to exceed three times the level of funding provided by the nontraditional funding omitted from the application. utility.(B)The cost of a penalty imposed pursuant to subparagraph (A) shall be recorded to a below-the-line account. A penalty imposed pursuant to this section shall be expended to directly reduce ratepayer obligations in the form of a disallowance.(d) (1) Notwithstanding Section 728, the commission shall require each utility to promptly deliver the financial benefits of nontraditional taxpayer funding described in subparagraph (D) of paragraph (1) of subdivision (b) to ratepayers, including the cost savings for activities previously approved by the commission.(2) The commission may satisfy the requirement of paragraph (1) by requiring a utility to adjust the utilitys revenue requirements and rate applications to account for ratepayer savings.(e) This section shall not be interpreted to assume or imply that an application for, or receipt of, nontraditional taxpayer funding for an activity results in a presumption or determination of the reasonableness of using ratepayer funding for that activity.SEC. 2. Section 913.7 is added to the Public Utilities Code, to read:913.7. (a) The commission shall provide an annual report to the Legislature with a summary of the information on nontraditional taxpayer funding reported by each utility pursuant to Section 593, including the number of grants or loans, the source of those grants or loans, the dollar amount received, the projects funded by the grants or loans, and the demonstrated ratepayer savings.(b) The commission shall ensure that the annual report complies with any information disclosure requirements of each funding source and pursuant to federal law.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
Amended IN Assembly April 21, 2025 Amended IN Assembly March 10, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1020Introduced by Assembly Member SchiavoFebruary 20, 2025 An act to add Sections 593 and 913.7 to the Public Utilities Code, relating to electricity.LEGISLATIVE COUNSEL'S DIGESTAB 1020, as amended, Schiavo. Public utilities: energy: nontraditional taxpayer funding: reporting.Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law requires electrical corporations and gas corporations to submit various information to the commission, and requires the commission to annually report to the Legislature on, among other things, all sources and amounts of funding and actual and proposed expenditures, including any costs to ratepayers, related to entities or programs established by the commission, as specified.This bill would require each utility, defined as an investor-owned electrical corporation or gas corporation, to report certain information for any nontraditional taxpayer funding, as defined, that the utility has applied for or received. The bill would require the commission, for each application in which a utility is seeking ratepayer funding, to require the utility to report all relevant nontraditional taxpayer funding the utility is pursuing or has secured, and, if the commission determines that a utility is not in compliance with that requirement, the bill would authorize the commission to impose a penalty against the utility, as specified. The bill would require the commission to require each utility to promptly deliver the financial benefits of nontraditional taxpayer funding to ratepayers, as provided.This bill would require the commission to provide an annual report to the Legislature with a summary of the information on nontraditional taxpayer funding reported by each utility, including the number of grants or loans, the source of those grants or loans, the dollar amount received, the projects funded by the grants or loans, and the demonstrated ratepayer savings.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Amended IN Assembly April 21, 2025 Amended IN Assembly March 10, 2025
Amended IN Assembly April 21, 2025
Amended IN Assembly March 10, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 1020
Introduced by Assembly Member SchiavoFebruary 20, 2025
Introduced by Assembly Member Schiavo
February 20, 2025
An act to add Sections 593 and 913.7 to the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1020, as amended, Schiavo. Public utilities: energy: nontraditional taxpayer funding: reporting.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law requires electrical corporations and gas corporations to submit various information to the commission, and requires the commission to annually report to the Legislature on, among other things, all sources and amounts of funding and actual and proposed expenditures, including any costs to ratepayers, related to entities or programs established by the commission, as specified.This bill would require each utility, defined as an investor-owned electrical corporation or gas corporation, to report certain information for any nontraditional taxpayer funding, as defined, that the utility has applied for or received. The bill would require the commission, for each application in which a utility is seeking ratepayer funding, to require the utility to report all relevant nontraditional taxpayer funding the utility is pursuing or has secured, and, if the commission determines that a utility is not in compliance with that requirement, the bill would authorize the commission to impose a penalty against the utility, as specified. The bill would require the commission to require each utility to promptly deliver the financial benefits of nontraditional taxpayer funding to ratepayers, as provided.This bill would require the commission to provide an annual report to the Legislature with a summary of the information on nontraditional taxpayer funding reported by each utility, including the number of grants or loans, the source of those grants or loans, the dollar amount received, the projects funded by the grants or loans, and the demonstrated ratepayer savings.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations and gas corporations. Existing law requires electrical corporations and gas corporations to submit various information to the commission, and requires the commission to annually report to the Legislature on, among other things, all sources and amounts of funding and actual and proposed expenditures, including any costs to ratepayers, related to entities or programs established by the commission, as specified.
This bill would require each utility, defined as an investor-owned electrical corporation or gas corporation, to report certain information for any nontraditional taxpayer funding, as defined, that the utility has applied for or received. The bill would require the commission, for each application in which a utility is seeking ratepayer funding, to require the utility to report all relevant nontraditional taxpayer funding the utility is pursuing or has secured, and, if the commission determines that a utility is not in compliance with that requirement, the bill would authorize the commission to impose a penalty against the utility, as specified. The bill would require the commission to require each utility to promptly deliver the financial benefits of nontraditional taxpayer funding to ratepayers, as provided.
This bill would require the commission to provide an annual report to the Legislature with a summary of the information on nontraditional taxpayer funding reported by each utility, including the number of grants or loans, the source of those grants or loans, the dollar amount received, the projects funded by the grants or loans, and the demonstrated ratepayer savings.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the provisions of this bill would be a part of the act and because a violation of a commission action implementing the bills requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 593 is added to the Public Utilities Code, to read:593. (a) For purposes of this section, both of the following definitions apply:(1)Below-the-line account means an account that contains expenses that an electrical corporation or gas corporation does not recover from ratepayers.(2)Nontraditional funding means a nonratepayer funding source or preferential financing mechanism, including, but not limited to, federal grants or loans.(1) Taxpayer funding means any funds received from public entities in the form of grants, loans, or bonds.(3)(2) Utility means an investor-owned electrical corporation or gas corporation.(b) (1) Each utility shall include all of the following information in each quarterly report required by commission Resolution E-5254 (April 6, 2023) for any nontraditional taxpayer funding the utility has applied for or received:(A) The name of the grant or loan grant, loan, or bond funding source.(B) The dollar amount applied for or received.(C) A spending plan that includes both all of the following:(i) The project, element of operations, or other expenses for which these funds will be used.(ii) A description of each item described identified in clause (i), including project timelines.(iii) Whether each item identified in clause (i) is new or existing.(iv) Whether the funds used for each item identified in clause (i) are offsetting existing costs or are new costs.(D) A calculation of all value to, or savings expected to benefit, ratepayers from receipt of the nontraditional taxpayer funding, including estimates of all of the following:(i) Decreases in forecasts of expenses, capital, interest, and taxes.(ii) Locational grid benefits, such as avoided costs for future distribution, transmission, or generation investments.(iii) Changes in revenue requirements.(iv) Changes in average customer bills.(v) Tax savings.(E) The status of the application, whether it is approved, denied, or pending, and all of the following, as applicable:(i) If the application is pending, the expected date of decision.(ii) If the application is approved, the date awarded, a copy of the grant agreement, if applicable, the dollar amount awarded, and the duration of the grant or loan in months or years.(iii) If the application is denied, the date that decision was announced.(F) A list of all applications planned or pending at the commission where ratepayer funds are being sought for projects funded, in whole or in part, by nontraditional taxpayer funding.(2) If the commission determines that a utility is not in compliance with the quarterly reporting requirements in paragraph (1), the commission shall exercise its authority to require compliance by the utility and may pursue an enforcement action against the utility for noncompliance.(3) The utility shall ensure that the quarterly report complies with any information disclosure requirements of each funding source and pursuant to federal law.(c) (1) In each application in which a utility is seeking ratepayer funding, the commission shall require the utility to report all relevant nontraditional taxpayer funding the utility is pursuing or has secured.(2) (A)If the commission determines that a utility did not comply with paragraph (1), the commission may impose a penalty against the utility in an amount not to exceed three times the level of funding provided by the nontraditional funding omitted from the application. utility.(B)The cost of a penalty imposed pursuant to subparagraph (A) shall be recorded to a below-the-line account. A penalty imposed pursuant to this section shall be expended to directly reduce ratepayer obligations in the form of a disallowance.(d) (1) Notwithstanding Section 728, the commission shall require each utility to promptly deliver the financial benefits of nontraditional taxpayer funding described in subparagraph (D) of paragraph (1) of subdivision (b) to ratepayers, including the cost savings for activities previously approved by the commission.(2) The commission may satisfy the requirement of paragraph (1) by requiring a utility to adjust the utilitys revenue requirements and rate applications to account for ratepayer savings.(e) This section shall not be interpreted to assume or imply that an application for, or receipt of, nontraditional taxpayer funding for an activity results in a presumption or determination of the reasonableness of using ratepayer funding for that activity.SEC. 2. Section 913.7 is added to the Public Utilities Code, to read:913.7. (a) The commission shall provide an annual report to the Legislature with a summary of the information on nontraditional taxpayer funding reported by each utility pursuant to Section 593, including the number of grants or loans, the source of those grants or loans, the dollar amount received, the projects funded by the grants or loans, and the demonstrated ratepayer savings.(b) The commission shall ensure that the annual report complies with any information disclosure requirements of each funding source and pursuant to federal law.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 593 is added to the Public Utilities Code, to read:593. (a) For purposes of this section, both of the following definitions apply:(1)Below-the-line account means an account that contains expenses that an electrical corporation or gas corporation does not recover from ratepayers.(2)Nontraditional funding means a nonratepayer funding source or preferential financing mechanism, including, but not limited to, federal grants or loans.(1) Taxpayer funding means any funds received from public entities in the form of grants, loans, or bonds.(3)(2) Utility means an investor-owned electrical corporation or gas corporation.(b) (1) Each utility shall include all of the following information in each quarterly report required by commission Resolution E-5254 (April 6, 2023) for any nontraditional taxpayer funding the utility has applied for or received:(A) The name of the grant or loan grant, loan, or bond funding source.(B) The dollar amount applied for or received.(C) A spending plan that includes both all of the following:(i) The project, element of operations, or other expenses for which these funds will be used.(ii) A description of each item described identified in clause (i), including project timelines.(iii) Whether each item identified in clause (i) is new or existing.(iv) Whether the funds used for each item identified in clause (i) are offsetting existing costs or are new costs.(D) A calculation of all value to, or savings expected to benefit, ratepayers from receipt of the nontraditional taxpayer funding, including estimates of all of the following:(i) Decreases in forecasts of expenses, capital, interest, and taxes.(ii) Locational grid benefits, such as avoided costs for future distribution, transmission, or generation investments.(iii) Changes in revenue requirements.(iv) Changes in average customer bills.(v) Tax savings.(E) The status of the application, whether it is approved, denied, or pending, and all of the following, as applicable:(i) If the application is pending, the expected date of decision.(ii) If the application is approved, the date awarded, a copy of the grant agreement, if applicable, the dollar amount awarded, and the duration of the grant or loan in months or years.(iii) If the application is denied, the date that decision was announced.(F) A list of all applications planned or pending at the commission where ratepayer funds are being sought for projects funded, in whole or in part, by nontraditional taxpayer funding.(2) If the commission determines that a utility is not in compliance with the quarterly reporting requirements in paragraph (1), the commission shall exercise its authority to require compliance by the utility and may pursue an enforcement action against the utility for noncompliance.(3) The utility shall ensure that the quarterly report complies with any information disclosure requirements of each funding source and pursuant to federal law.(c) (1) In each application in which a utility is seeking ratepayer funding, the commission shall require the utility to report all relevant nontraditional taxpayer funding the utility is pursuing or has secured.(2) (A)If the commission determines that a utility did not comply with paragraph (1), the commission may impose a penalty against the utility in an amount not to exceed three times the level of funding provided by the nontraditional funding omitted from the application. utility.(B)The cost of a penalty imposed pursuant to subparagraph (A) shall be recorded to a below-the-line account. A penalty imposed pursuant to this section shall be expended to directly reduce ratepayer obligations in the form of a disallowance.(d) (1) Notwithstanding Section 728, the commission shall require each utility to promptly deliver the financial benefits of nontraditional taxpayer funding described in subparagraph (D) of paragraph (1) of subdivision (b) to ratepayers, including the cost savings for activities previously approved by the commission.(2) The commission may satisfy the requirement of paragraph (1) by requiring a utility to adjust the utilitys revenue requirements and rate applications to account for ratepayer savings.(e) This section shall not be interpreted to assume or imply that an application for, or receipt of, nontraditional taxpayer funding for an activity results in a presumption or determination of the reasonableness of using ratepayer funding for that activity.
SECTION 1. Section 593 is added to the Public Utilities Code, to read:
### SECTION 1.
593. (a) For purposes of this section, both of the following definitions apply:(1)Below-the-line account means an account that contains expenses that an electrical corporation or gas corporation does not recover from ratepayers.(2)Nontraditional funding means a nonratepayer funding source or preferential financing mechanism, including, but not limited to, federal grants or loans.(1) Taxpayer funding means any funds received from public entities in the form of grants, loans, or bonds.(3)(2) Utility means an investor-owned electrical corporation or gas corporation.(b) (1) Each utility shall include all of the following information in each quarterly report required by commission Resolution E-5254 (April 6, 2023) for any nontraditional taxpayer funding the utility has applied for or received:(A) The name of the grant or loan grant, loan, or bond funding source.(B) The dollar amount applied for or received.(C) A spending plan that includes both all of the following:(i) The project, element of operations, or other expenses for which these funds will be used.(ii) A description of each item described identified in clause (i), including project timelines.(iii) Whether each item identified in clause (i) is new or existing.(iv) Whether the funds used for each item identified in clause (i) are offsetting existing costs or are new costs.(D) A calculation of all value to, or savings expected to benefit, ratepayers from receipt of the nontraditional taxpayer funding, including estimates of all of the following:(i) Decreases in forecasts of expenses, capital, interest, and taxes.(ii) Locational grid benefits, such as avoided costs for future distribution, transmission, or generation investments.(iii) Changes in revenue requirements.(iv) Changes in average customer bills.(v) Tax savings.(E) The status of the application, whether it is approved, denied, or pending, and all of the following, as applicable:(i) If the application is pending, the expected date of decision.(ii) If the application is approved, the date awarded, a copy of the grant agreement, if applicable, the dollar amount awarded, and the duration of the grant or loan in months or years.(iii) If the application is denied, the date that decision was announced.(F) A list of all applications planned or pending at the commission where ratepayer funds are being sought for projects funded, in whole or in part, by nontraditional taxpayer funding.(2) If the commission determines that a utility is not in compliance with the quarterly reporting requirements in paragraph (1), the commission shall exercise its authority to require compliance by the utility and may pursue an enforcement action against the utility for noncompliance.(3) The utility shall ensure that the quarterly report complies with any information disclosure requirements of each funding source and pursuant to federal law.(c) (1) In each application in which a utility is seeking ratepayer funding, the commission shall require the utility to report all relevant nontraditional taxpayer funding the utility is pursuing or has secured.(2) (A)If the commission determines that a utility did not comply with paragraph (1), the commission may impose a penalty against the utility in an amount not to exceed three times the level of funding provided by the nontraditional funding omitted from the application. utility.(B)The cost of a penalty imposed pursuant to subparagraph (A) shall be recorded to a below-the-line account. A penalty imposed pursuant to this section shall be expended to directly reduce ratepayer obligations in the form of a disallowance.(d) (1) Notwithstanding Section 728, the commission shall require each utility to promptly deliver the financial benefits of nontraditional taxpayer funding described in subparagraph (D) of paragraph (1) of subdivision (b) to ratepayers, including the cost savings for activities previously approved by the commission.(2) The commission may satisfy the requirement of paragraph (1) by requiring a utility to adjust the utilitys revenue requirements and rate applications to account for ratepayer savings.(e) This section shall not be interpreted to assume or imply that an application for, or receipt of, nontraditional taxpayer funding for an activity results in a presumption or determination of the reasonableness of using ratepayer funding for that activity.
593. (a) For purposes of this section, both of the following definitions apply:(1)Below-the-line account means an account that contains expenses that an electrical corporation or gas corporation does not recover from ratepayers.(2)Nontraditional funding means a nonratepayer funding source or preferential financing mechanism, including, but not limited to, federal grants or loans.(1) Taxpayer funding means any funds received from public entities in the form of grants, loans, or bonds.(3)(2) Utility means an investor-owned electrical corporation or gas corporation.(b) (1) Each utility shall include all of the following information in each quarterly report required by commission Resolution E-5254 (April 6, 2023) for any nontraditional taxpayer funding the utility has applied for or received:(A) The name of the grant or loan grant, loan, or bond funding source.(B) The dollar amount applied for or received.(C) A spending plan that includes both all of the following:(i) The project, element of operations, or other expenses for which these funds will be used.(ii) A description of each item described identified in clause (i), including project timelines.(iii) Whether each item identified in clause (i) is new or existing.(iv) Whether the funds used for each item identified in clause (i) are offsetting existing costs or are new costs.(D) A calculation of all value to, or savings expected to benefit, ratepayers from receipt of the nontraditional taxpayer funding, including estimates of all of the following:(i) Decreases in forecasts of expenses, capital, interest, and taxes.(ii) Locational grid benefits, such as avoided costs for future distribution, transmission, or generation investments.(iii) Changes in revenue requirements.(iv) Changes in average customer bills.(v) Tax savings.(E) The status of the application, whether it is approved, denied, or pending, and all of the following, as applicable:(i) If the application is pending, the expected date of decision.(ii) If the application is approved, the date awarded, a copy of the grant agreement, if applicable, the dollar amount awarded, and the duration of the grant or loan in months or years.(iii) If the application is denied, the date that decision was announced.(F) A list of all applications planned or pending at the commission where ratepayer funds are being sought for projects funded, in whole or in part, by nontraditional taxpayer funding.(2) If the commission determines that a utility is not in compliance with the quarterly reporting requirements in paragraph (1), the commission shall exercise its authority to require compliance by the utility and may pursue an enforcement action against the utility for noncompliance.(3) The utility shall ensure that the quarterly report complies with any information disclosure requirements of each funding source and pursuant to federal law.(c) (1) In each application in which a utility is seeking ratepayer funding, the commission shall require the utility to report all relevant nontraditional taxpayer funding the utility is pursuing or has secured.(2) (A)If the commission determines that a utility did not comply with paragraph (1), the commission may impose a penalty against the utility in an amount not to exceed three times the level of funding provided by the nontraditional funding omitted from the application. utility.(B)The cost of a penalty imposed pursuant to subparagraph (A) shall be recorded to a below-the-line account. A penalty imposed pursuant to this section shall be expended to directly reduce ratepayer obligations in the form of a disallowance.(d) (1) Notwithstanding Section 728, the commission shall require each utility to promptly deliver the financial benefits of nontraditional taxpayer funding described in subparagraph (D) of paragraph (1) of subdivision (b) to ratepayers, including the cost savings for activities previously approved by the commission.(2) The commission may satisfy the requirement of paragraph (1) by requiring a utility to adjust the utilitys revenue requirements and rate applications to account for ratepayer savings.(e) This section shall not be interpreted to assume or imply that an application for, or receipt of, nontraditional taxpayer funding for an activity results in a presumption or determination of the reasonableness of using ratepayer funding for that activity.
593. (a) For purposes of this section, both of the following definitions apply:(1)Below-the-line account means an account that contains expenses that an electrical corporation or gas corporation does not recover from ratepayers.(2)Nontraditional funding means a nonratepayer funding source or preferential financing mechanism, including, but not limited to, federal grants or loans.(1) Taxpayer funding means any funds received from public entities in the form of grants, loans, or bonds.(3)(2) Utility means an investor-owned electrical corporation or gas corporation.(b) (1) Each utility shall include all of the following information in each quarterly report required by commission Resolution E-5254 (April 6, 2023) for any nontraditional taxpayer funding the utility has applied for or received:(A) The name of the grant or loan grant, loan, or bond funding source.(B) The dollar amount applied for or received.(C) A spending plan that includes both all of the following:(i) The project, element of operations, or other expenses for which these funds will be used.(ii) A description of each item described identified in clause (i), including project timelines.(iii) Whether each item identified in clause (i) is new or existing.(iv) Whether the funds used for each item identified in clause (i) are offsetting existing costs or are new costs.(D) A calculation of all value to, or savings expected to benefit, ratepayers from receipt of the nontraditional taxpayer funding, including estimates of all of the following:(i) Decreases in forecasts of expenses, capital, interest, and taxes.(ii) Locational grid benefits, such as avoided costs for future distribution, transmission, or generation investments.(iii) Changes in revenue requirements.(iv) Changes in average customer bills.(v) Tax savings.(E) The status of the application, whether it is approved, denied, or pending, and all of the following, as applicable:(i) If the application is pending, the expected date of decision.(ii) If the application is approved, the date awarded, a copy of the grant agreement, if applicable, the dollar amount awarded, and the duration of the grant or loan in months or years.(iii) If the application is denied, the date that decision was announced.(F) A list of all applications planned or pending at the commission where ratepayer funds are being sought for projects funded, in whole or in part, by nontraditional taxpayer funding.(2) If the commission determines that a utility is not in compliance with the quarterly reporting requirements in paragraph (1), the commission shall exercise its authority to require compliance by the utility and may pursue an enforcement action against the utility for noncompliance.(3) The utility shall ensure that the quarterly report complies with any information disclosure requirements of each funding source and pursuant to federal law.(c) (1) In each application in which a utility is seeking ratepayer funding, the commission shall require the utility to report all relevant nontraditional taxpayer funding the utility is pursuing or has secured.(2) (A)If the commission determines that a utility did not comply with paragraph (1), the commission may impose a penalty against the utility in an amount not to exceed three times the level of funding provided by the nontraditional funding omitted from the application. utility.(B)The cost of a penalty imposed pursuant to subparagraph (A) shall be recorded to a below-the-line account. A penalty imposed pursuant to this section shall be expended to directly reduce ratepayer obligations in the form of a disallowance.(d) (1) Notwithstanding Section 728, the commission shall require each utility to promptly deliver the financial benefits of nontraditional taxpayer funding described in subparagraph (D) of paragraph (1) of subdivision (b) to ratepayers, including the cost savings for activities previously approved by the commission.(2) The commission may satisfy the requirement of paragraph (1) by requiring a utility to adjust the utilitys revenue requirements and rate applications to account for ratepayer savings.(e) This section shall not be interpreted to assume or imply that an application for, or receipt of, nontraditional taxpayer funding for an activity results in a presumption or determination of the reasonableness of using ratepayer funding for that activity.
593. (a) For purposes of this section, both of the following definitions apply:
###### 593.
(1)Below-the-line account means an account that contains expenses that an electrical corporation or gas corporation does not recover from ratepayers.
(2)Nontraditional funding means a nonratepayer funding source or preferential financing mechanism, including, but not limited to, federal grants or loans.
(1) Taxpayer funding means any funds received from public entities in the form of grants, loans, or bonds.
(3)
(2) Utility means an investor-owned electrical corporation or gas corporation.
(b) (1) Each utility shall include all of the following information in each quarterly report required by commission Resolution E-5254 (April 6, 2023) for any nontraditional taxpayer funding the utility has applied for or received:
(A) The name of the grant or loan grant, loan, or bond funding source.
(B) The dollar amount applied for or received.
(C) A spending plan that includes both all of the following:
(i) The project, element of operations, or other expenses for which these funds will be used.
(ii) A description of each item described identified in clause (i), including project timelines.
(iii) Whether each item identified in clause (i) is new or existing.
(iv) Whether the funds used for each item identified in clause (i) are offsetting existing costs or are new costs.
(D) A calculation of all value to, or savings expected to benefit, ratepayers from receipt of the nontraditional taxpayer funding, including estimates of all of the following:
(i) Decreases in forecasts of expenses, capital, interest, and taxes.
(ii) Locational grid benefits, such as avoided costs for future distribution, transmission, or generation investments.
(iii) Changes in revenue requirements.
(iv) Changes in average customer bills.
(v) Tax savings.
(E) The status of the application, whether it is approved, denied, or pending, and all of the following, as applicable:
(i) If the application is pending, the expected date of decision.
(ii) If the application is approved, the date awarded, a copy of the grant agreement, if applicable, the dollar amount awarded, and the duration of the grant or loan in months or years.
(iii) If the application is denied, the date that decision was announced.
(F) A list of all applications planned or pending at the commission where ratepayer funds are being sought for projects funded, in whole or in part, by nontraditional taxpayer funding.
(2) If the commission determines that a utility is not in compliance with the quarterly reporting requirements in paragraph (1), the commission shall exercise its authority to require compliance by the utility and may pursue an enforcement action against the utility for noncompliance.
(3) The utility shall ensure that the quarterly report complies with any information disclosure requirements of each funding source and pursuant to federal law.
(c) (1) In each application in which a utility is seeking ratepayer funding, the commission shall require the utility to report all relevant nontraditional taxpayer funding the utility is pursuing or has secured.
(2) (A)If the commission determines that a utility did not comply with paragraph (1), the commission may impose a penalty against the utility in an amount not to exceed three times the level of funding provided by the nontraditional funding omitted from the application. utility.
(B)The cost of a penalty imposed pursuant to subparagraph (A) shall be recorded to a below-the-line account. A penalty imposed pursuant to this section shall be expended to directly reduce ratepayer obligations in the form of a disallowance.
(d) (1) Notwithstanding Section 728, the commission shall require each utility to promptly deliver the financial benefits of nontraditional taxpayer funding described in subparagraph (D) of paragraph (1) of subdivision (b) to ratepayers, including the cost savings for activities previously approved by the commission.
(2) The commission may satisfy the requirement of paragraph (1) by requiring a utility to adjust the utilitys revenue requirements and rate applications to account for ratepayer savings.
(e) This section shall not be interpreted to assume or imply that an application for, or receipt of, nontraditional taxpayer funding for an activity results in a presumption or determination of the reasonableness of using ratepayer funding for that activity.
SEC. 2. Section 913.7 is added to the Public Utilities Code, to read:913.7. (a) The commission shall provide an annual report to the Legislature with a summary of the information on nontraditional taxpayer funding reported by each utility pursuant to Section 593, including the number of grants or loans, the source of those grants or loans, the dollar amount received, the projects funded by the grants or loans, and the demonstrated ratepayer savings.(b) The commission shall ensure that the annual report complies with any information disclosure requirements of each funding source and pursuant to federal law.
SEC. 2. Section 913.7 is added to the Public Utilities Code, to read:
### SEC. 2.
913.7. (a) The commission shall provide an annual report to the Legislature with a summary of the information on nontraditional taxpayer funding reported by each utility pursuant to Section 593, including the number of grants or loans, the source of those grants or loans, the dollar amount received, the projects funded by the grants or loans, and the demonstrated ratepayer savings.(b) The commission shall ensure that the annual report complies with any information disclosure requirements of each funding source and pursuant to federal law.
913.7. (a) The commission shall provide an annual report to the Legislature with a summary of the information on nontraditional taxpayer funding reported by each utility pursuant to Section 593, including the number of grants or loans, the source of those grants or loans, the dollar amount received, the projects funded by the grants or loans, and the demonstrated ratepayer savings.(b) The commission shall ensure that the annual report complies with any information disclosure requirements of each funding source and pursuant to federal law.
913.7. (a) The commission shall provide an annual report to the Legislature with a summary of the information on nontraditional taxpayer funding reported by each utility pursuant to Section 593, including the number of grants or loans, the source of those grants or loans, the dollar amount received, the projects funded by the grants or loans, and the demonstrated ratepayer savings.(b) The commission shall ensure that the annual report complies with any information disclosure requirements of each funding source and pursuant to federal law.
913.7. (a) The commission shall provide an annual report to the Legislature with a summary of the information on nontraditional taxpayer funding reported by each utility pursuant to Section 593, including the number of grants or loans, the source of those grants or loans, the dollar amount received, the projects funded by the grants or loans, and the demonstrated ratepayer savings.
###### 913.7.
(b) The commission shall ensure that the annual report complies with any information disclosure requirements of each funding source and pursuant to federal law.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
### SEC. 3.