California 2025-2026 Regular Session

California Assembly Bill AB1347 Latest Draft

Bill / Amended Version Filed 03/28/2025

                            Amended IN  Assembly  March 28, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1347Introduced by Assembly Member CarrilloFebruary 21, 2025 An act to add Section 933.1 to the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 1347, as amended, Carrillo. Electrical modernization zones.Existing law provides that it is the policy of the state that each electrical corporation upgrade the states electrical distribution systems as needed. Existing law requires the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission) and the Independent System Operator (ISO), to take specified actions to facilitate the commercialization of microgrids for distribution customers of large electrical corporations.This bill would require the Governors Office of Business and Economic Development, in conjunction with the ISO, to identify six electrical infrastructure modernization zones, as provided. The bill would require the PUC and the Energy Commission to recognize these zones as load growth priority areas. The bill would authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to work with the local jurisdiction to update its electrical load projections. The bill would require the PUC to authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to expedite cost recovery and to manage microgrids, as specified.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.Because the provisions of this bill would be a part of the act, and because a violation of a PUC action implementing its 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.This bill would make legislative findings and declarations as to the necessity of a special statute for the unincorporated area known as Altadena in the County of Los Angeles.Existing law requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions to facilitate the commercialization of microgrids for distribution customers of large electrical corporations.This bill would state the intent of the Legislature to enact subsequent legislation that would create electric modernization zones in order to meet the needs of high-growth economic areas throughout the state, as specifiedDigest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NOYES Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) The state is facing unprecedented load growth coupled with increased pressures on affordability.(b) Although the Legislature, in 2023, enacted the Powering Up Californians Act (Article 14.5 (commencing with Section 930) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code), many jurisdictions continue to face energy constraints.(c) Delays in providing electricity, including service upgrades, are costly to local cities.(d) Many local jurisdictions face millions of dollars of lost revenue because of potential delays.(e) The state needs to look at alternative ways of providing safe and reliable electricity to hard-to-reach areas and customers.SEC. 2. Section 933.1 is added to the Public Utilities Code, to read:933.1. (a) (1) The Governors Office of Business and Economic Development, in conjunction with the Independent System Operator, shall identify six electrical infrastructure modernization zones based on, at a minimum, all of the following indicators:(A) Need for increased economic development within the local jurisdiction.(B) Lack of electrical infrastructure and delays in providing timely electrification, or both.(C) Projected load growth in the local jurisdiction.(D) Need to build infrastructure with a minimum impact on ratepayers.(2) The six electrical infrastructure modernization zones identified pursuant to paragraph (1) shall include both of the following zones:(A) The high desert area, as defined by the Governors Office of Business and Economic Development in conjunction with the Independent System Operator.(B) The unincorporated area known as Altadena in the County of Los Angeles.(b) For electrical infrastructure modernization zones identified pursuant to subdivision (a), all of the following shall apply:(1) The commission and the Energy Commission shall recognize the electrical infrastructure modernization zones as load growth priority areas.(2) An electrical corporation that serves a customer within an electrical infrastructure modernization zone may work with the local jurisdiction to update its electrical load projections.(3) The commission shall authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to do both of the following: (A) Expedite cost recovery pursuant to subdivision (a) of Section 937.(B) Manage a microgrid, upon approval of the local jurisdiction. If the microgrid is not interconnected to the electrical grid, the electrical corporation may collect a fixed charge from a customer of the microgrid. If the electrical corporation is not able to manage the microgrid, a customer may contract with a microgrid provider for up to 10 years with a one-time 10-year renewal process.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. 4. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique demand for adequate operational electrical infrastructure in the unincorporated area known as Altadena in the County of Los Angeles.SECTION 1.It is the intent of the Legislature to enact subsequent legislation that would create, in partnership with the Governors Office of Business and Economic Development and the Independent System Operator, electric modernization zones in order to meet the electricity needs of high-growth economic areas throughout California, including, but not limited to, the high desert. It is the intent of the Legislature that the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, and the Department of Fish and Wildlife would work to implement that subsequent legislation.

 Amended IN  Assembly  March 28, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1347Introduced by Assembly Member CarrilloFebruary 21, 2025 An act to add Section 933.1 to the Public Utilities Code, relating to electricity. LEGISLATIVE COUNSEL'S DIGESTAB 1347, as amended, Carrillo. Electrical modernization zones.Existing law provides that it is the policy of the state that each electrical corporation upgrade the states electrical distribution systems as needed. Existing law requires the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission) and the Independent System Operator (ISO), to take specified actions to facilitate the commercialization of microgrids for distribution customers of large electrical corporations.This bill would require the Governors Office of Business and Economic Development, in conjunction with the ISO, to identify six electrical infrastructure modernization zones, as provided. The bill would require the PUC and the Energy Commission to recognize these zones as load growth priority areas. The bill would authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to work with the local jurisdiction to update its electrical load projections. The bill would require the PUC to authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to expedite cost recovery and to manage microgrids, as specified.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.Because the provisions of this bill would be a part of the act, and because a violation of a PUC action implementing its 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.This bill would make legislative findings and declarations as to the necessity of a special statute for the unincorporated area known as Altadena in the County of Los Angeles.Existing law requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions to facilitate the commercialization of microgrids for distribution customers of large electrical corporations.This bill would state the intent of the Legislature to enact subsequent legislation that would create electric modernization zones in order to meet the needs of high-growth economic areas throughout the state, as specifiedDigest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NOYES 

 Amended IN  Assembly  March 28, 2025

Amended IN  Assembly  March 28, 2025

 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION

 Assembly Bill 

No. 1347

Introduced by Assembly Member CarrilloFebruary 21, 2025

Introduced by Assembly Member Carrillo
February 21, 2025

 An act to add Section 933.1 to the Public Utilities Code, relating to electricity. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 1347, as amended, Carrillo. Electrical modernization zones.

Existing law provides that it is the policy of the state that each electrical corporation upgrade the states electrical distribution systems as needed. Existing law requires the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission) and the Independent System Operator (ISO), to take specified actions to facilitate the commercialization of microgrids for distribution customers of large electrical corporations.This bill would require the Governors Office of Business and Economic Development, in conjunction with the ISO, to identify six electrical infrastructure modernization zones, as provided. The bill would require the PUC and the Energy Commission to recognize these zones as load growth priority areas. The bill would authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to work with the local jurisdiction to update its electrical load projections. The bill would require the PUC to authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to expedite cost recovery and to manage microgrids, as specified.Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.Because the provisions of this bill would be a part of the act, and because a violation of a PUC action implementing its 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.This bill would make legislative findings and declarations as to the necessity of a special statute for the unincorporated area known as Altadena in the County of Los Angeles.Existing law requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions to facilitate the commercialization of microgrids for distribution customers of large electrical corporations.This bill would state the intent of the Legislature to enact subsequent legislation that would create electric modernization zones in order to meet the needs of high-growth economic areas throughout the state, as specified

Existing law provides that it is the policy of the state that each electrical corporation upgrade the states electrical distribution systems as needed. Existing law requires the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission) and the Independent System Operator (ISO), to take specified actions to facilitate the commercialization of microgrids for distribution customers of large electrical corporations.

This bill would require the Governors Office of Business and Economic Development, in conjunction with the ISO, to identify six electrical infrastructure modernization zones, as provided. The bill would require the PUC and the Energy Commission to recognize these zones as load growth priority areas. The bill would authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to work with the local jurisdiction to update its electrical load projections. The bill would require the PUC to authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to expedite cost recovery and to manage microgrids, as specified.

Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.

Because the provisions of this bill would be a part of the act, and because a violation of a PUC action implementing its 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.

This bill would make legislative findings and declarations as to the necessity of a special statute for the unincorporated area known as Altadena in the County of Los Angeles.

Existing law requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions to facilitate the commercialization of microgrids for distribution customers of large electrical corporations.



This bill would state the intent of the Legislature to enact subsequent legislation that would create electric modernization zones in order to meet the needs of high-growth economic areas throughout the state, as specified



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) The state is facing unprecedented load growth coupled with increased pressures on affordability.(b) Although the Legislature, in 2023, enacted the Powering Up Californians Act (Article 14.5 (commencing with Section 930) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code), many jurisdictions continue to face energy constraints.(c) Delays in providing electricity, including service upgrades, are costly to local cities.(d) Many local jurisdictions face millions of dollars of lost revenue because of potential delays.(e) The state needs to look at alternative ways of providing safe and reliable electricity to hard-to-reach areas and customers.SEC. 2. Section 933.1 is added to the Public Utilities Code, to read:933.1. (a) (1) The Governors Office of Business and Economic Development, in conjunction with the Independent System Operator, shall identify six electrical infrastructure modernization zones based on, at a minimum, all of the following indicators:(A) Need for increased economic development within the local jurisdiction.(B) Lack of electrical infrastructure and delays in providing timely electrification, or both.(C) Projected load growth in the local jurisdiction.(D) Need to build infrastructure with a minimum impact on ratepayers.(2) The six electrical infrastructure modernization zones identified pursuant to paragraph (1) shall include both of the following zones:(A) The high desert area, as defined by the Governors Office of Business and Economic Development in conjunction with the Independent System Operator.(B) The unincorporated area known as Altadena in the County of Los Angeles.(b) For electrical infrastructure modernization zones identified pursuant to subdivision (a), all of the following shall apply:(1) The commission and the Energy Commission shall recognize the electrical infrastructure modernization zones as load growth priority areas.(2) An electrical corporation that serves a customer within an electrical infrastructure modernization zone may work with the local jurisdiction to update its electrical load projections.(3) The commission shall authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to do both of the following: (A) Expedite cost recovery pursuant to subdivision (a) of Section 937.(B) Manage a microgrid, upon approval of the local jurisdiction. If the microgrid is not interconnected to the electrical grid, the electrical corporation may collect a fixed charge from a customer of the microgrid. If the electrical corporation is not able to manage the microgrid, a customer may contract with a microgrid provider for up to 10 years with a one-time 10-year renewal process.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. 4. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique demand for adequate operational electrical infrastructure in the unincorporated area known as Altadena in the County of Los Angeles.SECTION 1.It is the intent of the Legislature to enact subsequent legislation that would create, in partnership with the Governors Office of Business and Economic Development and the Independent System Operator, electric modernization zones in order to meet the electricity needs of high-growth economic areas throughout California, including, but not limited to, the high desert. It is the intent of the Legislature that the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, and the Department of Fish and Wildlife would work to implement that subsequent legislation.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares all of the following:(a) The state is facing unprecedented load growth coupled with increased pressures on affordability.(b) Although the Legislature, in 2023, enacted the Powering Up Californians Act (Article 14.5 (commencing with Section 930) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code), many jurisdictions continue to face energy constraints.(c) Delays in providing electricity, including service upgrades, are costly to local cities.(d) Many local jurisdictions face millions of dollars of lost revenue because of potential delays.(e) The state needs to look at alternative ways of providing safe and reliable electricity to hard-to-reach areas and customers.

SECTION 1. The Legislature finds and declares all of the following:(a) The state is facing unprecedented load growth coupled with increased pressures on affordability.(b) Although the Legislature, in 2023, enacted the Powering Up Californians Act (Article 14.5 (commencing with Section 930) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code), many jurisdictions continue to face energy constraints.(c) Delays in providing electricity, including service upgrades, are costly to local cities.(d) Many local jurisdictions face millions of dollars of lost revenue because of potential delays.(e) The state needs to look at alternative ways of providing safe and reliable electricity to hard-to-reach areas and customers.

SECTION 1. The Legislature finds and declares all of the following:

### SECTION 1.

(a) The state is facing unprecedented load growth coupled with increased pressures on affordability.

(b) Although the Legislature, in 2023, enacted the Powering Up Californians Act (Article 14.5 (commencing with Section 930) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code), many jurisdictions continue to face energy constraints.

(c) Delays in providing electricity, including service upgrades, are costly to local cities.

(d) Many local jurisdictions face millions of dollars of lost revenue because of potential delays.

(e) The state needs to look at alternative ways of providing safe and reliable electricity to hard-to-reach areas and customers.

SEC. 2. Section 933.1 is added to the Public Utilities Code, to read:933.1. (a) (1) The Governors Office of Business and Economic Development, in conjunction with the Independent System Operator, shall identify six electrical infrastructure modernization zones based on, at a minimum, all of the following indicators:(A) Need for increased economic development within the local jurisdiction.(B) Lack of electrical infrastructure and delays in providing timely electrification, or both.(C) Projected load growth in the local jurisdiction.(D) Need to build infrastructure with a minimum impact on ratepayers.(2) The six electrical infrastructure modernization zones identified pursuant to paragraph (1) shall include both of the following zones:(A) The high desert area, as defined by the Governors Office of Business and Economic Development in conjunction with the Independent System Operator.(B) The unincorporated area known as Altadena in the County of Los Angeles.(b) For electrical infrastructure modernization zones identified pursuant to subdivision (a), all of the following shall apply:(1) The commission and the Energy Commission shall recognize the electrical infrastructure modernization zones as load growth priority areas.(2) An electrical corporation that serves a customer within an electrical infrastructure modernization zone may work with the local jurisdiction to update its electrical load projections.(3) The commission shall authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to do both of the following: (A) Expedite cost recovery pursuant to subdivision (a) of Section 937.(B) Manage a microgrid, upon approval of the local jurisdiction. If the microgrid is not interconnected to the electrical grid, the electrical corporation may collect a fixed charge from a customer of the microgrid. If the electrical corporation is not able to manage the microgrid, a customer may contract with a microgrid provider for up to 10 years with a one-time 10-year renewal process.

SEC. 2. Section 933.1 is added to the Public Utilities Code, to read:

### SEC. 2.

933.1. (a) (1) The Governors Office of Business and Economic Development, in conjunction with the Independent System Operator, shall identify six electrical infrastructure modernization zones based on, at a minimum, all of the following indicators:(A) Need for increased economic development within the local jurisdiction.(B) Lack of electrical infrastructure and delays in providing timely electrification, or both.(C) Projected load growth in the local jurisdiction.(D) Need to build infrastructure with a minimum impact on ratepayers.(2) The six electrical infrastructure modernization zones identified pursuant to paragraph (1) shall include both of the following zones:(A) The high desert area, as defined by the Governors Office of Business and Economic Development in conjunction with the Independent System Operator.(B) The unincorporated area known as Altadena in the County of Los Angeles.(b) For electrical infrastructure modernization zones identified pursuant to subdivision (a), all of the following shall apply:(1) The commission and the Energy Commission shall recognize the electrical infrastructure modernization zones as load growth priority areas.(2) An electrical corporation that serves a customer within an electrical infrastructure modernization zone may work with the local jurisdiction to update its electrical load projections.(3) The commission shall authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to do both of the following: (A) Expedite cost recovery pursuant to subdivision (a) of Section 937.(B) Manage a microgrid, upon approval of the local jurisdiction. If the microgrid is not interconnected to the electrical grid, the electrical corporation may collect a fixed charge from a customer of the microgrid. If the electrical corporation is not able to manage the microgrid, a customer may contract with a microgrid provider for up to 10 years with a one-time 10-year renewal process.

933.1. (a) (1) The Governors Office of Business and Economic Development, in conjunction with the Independent System Operator, shall identify six electrical infrastructure modernization zones based on, at a minimum, all of the following indicators:(A) Need for increased economic development within the local jurisdiction.(B) Lack of electrical infrastructure and delays in providing timely electrification, or both.(C) Projected load growth in the local jurisdiction.(D) Need to build infrastructure with a minimum impact on ratepayers.(2) The six electrical infrastructure modernization zones identified pursuant to paragraph (1) shall include both of the following zones:(A) The high desert area, as defined by the Governors Office of Business and Economic Development in conjunction with the Independent System Operator.(B) The unincorporated area known as Altadena in the County of Los Angeles.(b) For electrical infrastructure modernization zones identified pursuant to subdivision (a), all of the following shall apply:(1) The commission and the Energy Commission shall recognize the electrical infrastructure modernization zones as load growth priority areas.(2) An electrical corporation that serves a customer within an electrical infrastructure modernization zone may work with the local jurisdiction to update its electrical load projections.(3) The commission shall authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to do both of the following: (A) Expedite cost recovery pursuant to subdivision (a) of Section 937.(B) Manage a microgrid, upon approval of the local jurisdiction. If the microgrid is not interconnected to the electrical grid, the electrical corporation may collect a fixed charge from a customer of the microgrid. If the electrical corporation is not able to manage the microgrid, a customer may contract with a microgrid provider for up to 10 years with a one-time 10-year renewal process.

933.1. (a) (1) The Governors Office of Business and Economic Development, in conjunction with the Independent System Operator, shall identify six electrical infrastructure modernization zones based on, at a minimum, all of the following indicators:(A) Need for increased economic development within the local jurisdiction.(B) Lack of electrical infrastructure and delays in providing timely electrification, or both.(C) Projected load growth in the local jurisdiction.(D) Need to build infrastructure with a minimum impact on ratepayers.(2) The six electrical infrastructure modernization zones identified pursuant to paragraph (1) shall include both of the following zones:(A) The high desert area, as defined by the Governors Office of Business and Economic Development in conjunction with the Independent System Operator.(B) The unincorporated area known as Altadena in the County of Los Angeles.(b) For electrical infrastructure modernization zones identified pursuant to subdivision (a), all of the following shall apply:(1) The commission and the Energy Commission shall recognize the electrical infrastructure modernization zones as load growth priority areas.(2) An electrical corporation that serves a customer within an electrical infrastructure modernization zone may work with the local jurisdiction to update its electrical load projections.(3) The commission shall authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to do both of the following: (A) Expedite cost recovery pursuant to subdivision (a) of Section 937.(B) Manage a microgrid, upon approval of the local jurisdiction. If the microgrid is not interconnected to the electrical grid, the electrical corporation may collect a fixed charge from a customer of the microgrid. If the electrical corporation is not able to manage the microgrid, a customer may contract with a microgrid provider for up to 10 years with a one-time 10-year renewal process.



933.1. (a) (1) The Governors Office of Business and Economic Development, in conjunction with the Independent System Operator, shall identify six electrical infrastructure modernization zones based on, at a minimum, all of the following indicators:

(A) Need for increased economic development within the local jurisdiction.

(B) Lack of electrical infrastructure and delays in providing timely electrification, or both.

(C) Projected load growth in the local jurisdiction.

(D) Need to build infrastructure with a minimum impact on ratepayers.

(2) The six electrical infrastructure modernization zones identified pursuant to paragraph (1) shall include both of the following zones:

(A) The high desert area, as defined by the Governors Office of Business and Economic Development in conjunction with the Independent System Operator.

(B) The unincorporated area known as Altadena in the County of Los Angeles.

(b) For electrical infrastructure modernization zones identified pursuant to subdivision (a), all of the following shall apply:

(1) The commission and the Energy Commission shall recognize the electrical infrastructure modernization zones as load growth priority areas.

(2) An electrical corporation that serves a customer within an electrical infrastructure modernization zone may work with the local jurisdiction to update its electrical load projections.

(3) The commission shall authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to do both of the following: 

(A) Expedite cost recovery pursuant to subdivision (a) of Section 937.

(B) Manage a microgrid, upon approval of the local jurisdiction. If the microgrid is not interconnected to the electrical grid, the electrical corporation may collect a fixed charge from a customer of the microgrid. If the electrical corporation is not able to manage the microgrid, a customer may contract with a microgrid provider for up to 10 years with a one-time 10-year renewal process.

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.

SEC. 4. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique demand for adequate operational electrical infrastructure in the unincorporated area known as Altadena in the County of Los Angeles.

SEC. 4. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique demand for adequate operational electrical infrastructure in the unincorporated area known as Altadena in the County of Los Angeles.

SEC. 4. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique demand for adequate operational electrical infrastructure in the unincorporated area known as Altadena in the County of Los Angeles.

### SEC. 4.



It is the intent of the Legislature to enact subsequent legislation that would create, in partnership with the Governors Office of Business and Economic Development and the Independent System Operator, electric modernization zones in order to meet the electricity needs of high-growth economic areas throughout California, including, but not limited to, the high desert. It is the intent of the Legislature that the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, and the Department of Fish and Wildlife would work to implement that subsequent legislation.