Amended IN Assembly April 21, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 825Introduced by Assembly Member Petrie-NorrisFebruary 19, 2025 An act to add Article 11.5 (commencing with Section 63049.80) to Chapter 2 of Division 1 of Title 6.7 of the Government Code, and to amend Section 369.5 of Sections 3310, 3380.1, and 3380.2 of, to add Sections 748 and 3341.7 to, and to repeal Section 3384 of, the Public Utilities Code, relating to energy. energy, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTAB 825, as amended, Petrie-Norris. Energy: cost framework: residential rates. Public Transmission Financing Act of 2025.(1) Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank (I-Bank) in the Governors Office of Business and Economic Development. Existing law, among other things, authorizes the I-Bank to make loans, issue bonds, and provide financial assistance for various types of projects that qualify as economic development or public development facilities.The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (act), approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, authorized the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs. Of these funds, the act made $850,000,000 available, upon appropriation by the Legislature, for clean energy projects, including, among other things, by making $325,000,000 available, upon appropriation by the Legislature, to the I-Bank, the State Energy Resources Conservation and Development Commission, or any other entity chosen by the Legislature, upon appropriation by the Legislature, for the public financing of clean energy transmission projects that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects. The act requires the proceeds of the bonds issued and sold pursuant to the above-described provisions, as specified, to be deposited in the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund and requires the moneys in the fund to be available, upon appropriation by the Legislature, for the purposes of the act.This bill would create the Public Transmission Financing Fund within the State Treasury for the purpose of financing eligible transmission projects, as defined, that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects. The bill would state the intent of the Legislature to enact subsequent legislation that would appropriate $325,000,000 from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund to the Public Transmission Financing Fund. The bill would make the moneys in the fund, except as specified, continuously appropriated, without regard to fiscal year, for the support of eligible entities, as defined, and available for expenditure for the above-described purpose. By establishing a continuously appropriated fund, the bill would make an appropriation.This bill would require the I-Bank to administer the Public Transmission Financing Program to provide financial assistance and financing for eligible transmission projects, sponsored or owned, in whole or in part, by a public transmission sponsor, as defined. The bill would authorize the I-Bank to provide financial assistance under the Public Transmission Financing Program to any public transmission sponsor or participating party, as defined, either directly or to a lending or financial institution, in connection with the financing or refinancing of a transmission project owned or financed, in whole or in part, by a public transmission sponsor, in accordance with an agreement or agreements, between the I-Bank and the public transmission sponsor either as a sole lender or in participation or syndication with other lenders. The bill would authorize the I-Bank to issue taxable or tax-exempt bonds, as specified, loan the proceeds to a public transmission sponsor, and deposit the proceeds into the Public Transmission Financing Fund or use the proceeds to refund bonds previously issued, as provided. The bill would prohibit the I-Bank from providing financing or other support for eligible transmission projects that will recover costs through an authorized revenue requirement approved by the Federal Energy Regulatory Commission unless the public transmission sponsor makes specified commitments. The bill would prohibit the I-Bank from financing an eligible transmission project unless the public transmission sponsor has entered into a project labor agreement that, at a minimum, meets specified requirements and includes specified information.(2) The California Consumer Power and Conservation Financing Authority Act creates the California Consumer Power and Conservation Financing Authority. The act authorizes the authority, before January 1, 2007, to establish, finance, purchase, lease, own, operate, acquire, or construct generating facilities and other projects and enterprises, or provide financial assistance for projects or programs by participating parties, to supplement private and public sector power supplies, to ensure a sufficient and reliable supply of electricity for Californias consumers at just and reasonable rates, to finance programs for consumers and businesses to invest in cost-effective energy efficient appliances, renewable energy projects, and other programs that will reduce the demand for energy in California, to finance natural gas transportation and storage projects, to achieve an adequate energy reserve capacity in California, and to provide financing for owners of aged, inefficient, electric powerplants to perform necessary retrofits to improve the efficiency and environmental performances of those powerplants. This bill would authorize the authority to sponsor, finance, purchase, lease, own, operate, acquire, or construct a partnership between a public transmission sponsor and an electrical corporation involving shared ownership and financing of a new transmission project that may include upgrades or improvements to existing transmission assets or new projects located on a right-of-way owned by the electrical corporation. The bill would, for transmission projects identified pursuant to that provision, authorize the commission to either request a revenue requirement from the Federal Energy Regulatory Commission for any transmission project that will be operated by the Independent System Operator, as provided, or charge private generators, subscribers, and customers contracting for capacity on a new transmission project, as provided. The bill would authorize the authority to enter into partnerships with electrical corporations or other private entities under which the authority would purchase a long-term entitlement to a portion of the transmission asset that establishes eligibility to receive revenues from the Independent System Operator. The bill would authorize the authority to seek financing assistance from any entity eligible to access the Public Transmission Financing Fund.(3) Existing law authorizes the authority to incur indebtedness and to issue securities of any kind or class, at public or private sale by the Treasurer, and to renew the same, if the indebtedness is payable solely from revenues. Existing law authorizes the authority to issue bonds, as specified, in an amount not to exceed $5,000,000,000, exclusive of any refunds.This bill would delete that $5,000,000,000 limit.(4) Existing law prohibits the authority from financing or approving any new program, enterprise, or project on or after January 1, 2007, unless authority to approve such an activity is granted by statute enacted on or before January 1, 2007.This bill would repeal that provision.(5) Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations.This bill would require the commission, for any retail bill credits provided to customers of an electrical corporation by a public transmission sponsor pursuant to the above-described provisions, to require the credits to be displayed as a separate line item on the customer bill indicating the source of the credit.(6) This bill would state the intent of the Legislature to enact subsequent legislation that would appropriate $5,000,000 to the California Consumer Power and Conservation Financing Authority for the purposes of hiring staff and consultants to support efforts relating to the public financing and ownership of new electric transmission infrastructure, as provided.(7) Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because certain of the above provisions would be part of the act and a violation of a commission action implementing this 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 requires, on or before December 31, 2026, the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission, to develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households, as specified, and requires the PUC to submit a report to the Legislature containing the framework. Existing law authorizes the PUC to use the framework for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. Existing law requires the PUC, in evaluating the request, to consider whether the electrical corporation and gas corporation should take additional actions to achieve certain reductions in total annual energy costs specified in the framework.This bill would require the PUC to submit an update to that report to the Legislature every two years following the initial submission, providing an evaluation of the implementation and impact of the framework, and the usage of the framework, identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the PUC in evaluating the requests.Digest Key Vote: MAJORITY2/3 Appropriation: NOYES Fiscal Committee: YES Local Program: NOYES Bill TextThe people of the State of California do enact as follows:SECTION 1. (a) This act shall be known, and may be cited, as the Public Transmission Financing Act of 2025.(b) The Legislature finds and declares all the following:(1) The Independent System Operator, in its 20-Year Transmission Outlook from July 2024, estimated the need for up to $63,200,000,000 in future transmission investments to satisfy anticipated load growth and new clean energy generation.(2) The costs of privately owned new transmission projects collected from electrical ratepayers includes an after-tax rate of return on shareholder equity that comprises approximately one-half the capital structure used to finance the asset.(3) Any portion of a transmission project that is publicly owned can be financed primarily or exclusively using debt obtained at lower interest rates than would be available to private entities.(4) The use of public financing can reduce the long-term ownership costs of new transmission investments by more than 50 percent compared to private ownership.(5) Any publicly owned transmission asset supported by this act shall participate in the Wildfire Fund described in Part 6 (commencing with Section 3280) of Division 1 of the Public Utilities Code.(6) Public ownership of new electrical transmission facilities can occur through a state agency, local public agencies, tribal organizations, or joint powers authorities.SEC. 2. It is the intent of the Legislature to enact subsequent legislation that would appropriate five million dollars ($5,000,000) to the California Consumer Power and Conservation Financing Authority for the purposes of hiring staff and consultants to support efforts relating to the public financing and ownership of new electric transmission infrastructure pursuant to subdivision (b) of Section 3310 of the Public Utilities Code.SEC. 3. Article 11.5 (commencing with Section 63049.80) is added to Chapter 2 of Division 1 of Title 6.7 of the Government Code, to read: Article 11.5. Public Transmission Financing63049.80. (a) It is the intent of the Legislature to enact subsequent legislation that would appropriate three hundred twenty-five million dollars ($325,000,000) from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund established pursuant to Section 90500 of the Public Resources Code to the Public Transmission Financing Fund established pursuant to Section 63049.83.(b) The moneys in the Public Transmission Financing Fund shall be used to support public financing of transmission projects that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects.63049.81. For purposes of this article, the following definitions apply:(a) Bank means the California Infrastructure and Economic Development Bank.(b) Electrical corporation has the same meaning as defined in Section 218 of the Public Utilities Code.(c) Eligible entities means entities able to access the Public Transmission Financing Fund, including the bank, public transmission sponsors, or any other entity selected by the Legislature.(d) Eligible transmission project means any electric transmission project where an electrical corporation or local publicly owned electric utility has the primary responsibility for construction and ownership.(e) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.(f) Participating party has the same meaning as defined in subdivision (o) of Section 63010.(g) Public Transmission Financing Program means the program of that name to administer the Public Transmission Financing Fund and to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.(h) Public transmission sponsor means any public owner of any portion of a new electric transmission project pursuant to this act, including a state agency designated by the Governor, the Department of Water Resources, the California Consumer Power and Conservation Financing Authority, local public agencies, tribal organizations, or joint powers authorities.63049.82. (a) The bank shall administer the Public Transmission Financing Program to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.(b) (1) The bank shall respond to requests from public transmission sponsors to evaluate, and consult on, the financing of proposed eligible transmission projects.(2) Consultation on, or evaluation of, an eligible transmission project by the bank shall not indicate the banks approval.(3) The bank shall consider the credit and financial aspects of the eligible transmission project before determining whether to approve and finance the eligible transmission project.(c) (1) The bank is hereby authorized and empowered to provide financial assistance under the Public Transmission Financing Program to any public transmission sponsor or participating party either directly or to a lending or financial institution, in connection with the financing or refinancing of a transmission project owned or financed, in whole or in part, by a public transmission sponsor, in accordance with an agreement or agreements, between the bank and the public transmission sponsor either as a sole lender or in participation or syndication with other lenders.(2) The financial assistance may include direct funding, debt financing, and the issuance of revenue bonds pursuant to subdivision (e).(d) (1) The bank may issue taxable or tax-exempt bonds pursuant to Chapter 5 (commencing with Section 63070) and may loan the proceeds thereof to a public transmission sponsor and deposit the proceeds into the Public Transmission Financing Fund or use the proceeds to refund bonds previously issued under this article.(2) Bond proceeds may also be used to fund necessary reserves, capitalized interest, credit enhancement costs, or costs of issuance.(e) (1) Notwithstanding this division, the financing of costs incurred by a public transmission sponsor for a transmission project shall be deemed to be in the public interest and eligible for financing by the bank or by a special purpose trust established pursuant to this division.(2) The financing shall be treated as financing of an economic development facility for purposes of this division, except that Article 3 (commencing with Section 63040) and Article 5 (commencing with Section 63043) shall not apply to any such financing.(f) Bonds or other indebtedness issued pursuant to this article shall not be deemed to constitute a debt or liability of the state or of any political subdivision of the state other than the bank or any special purpose trust established pursuant to this division, but shall be payable solely from the funds of, and any security provided by, the public transmission sponsor.(g) The bank shall not provide financing or other support for eligible transmission projects that recover costs through an authorized revenue requirement approved by the Federal Energy Regulatory Commission unless the public transmission sponsor makes either of the following commitments:(1) (A) The public transmission sponsor requests a revenue requirement at the Federal Energy Regulatory Commission that only reflects its actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the transmission access charge.(B) In the event that the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the public transmission sponsor, the requirements of paragraph (2) shall apply.(2) Any revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the eligible transmission project, eligible transmission project overhead and administration, wildfire liability, and costs related to operations and maintenance shall be refunded through either the transmission access charge or a bill credit to retail customers.(h) The bank shall not finance an eligible transmission project unless the public transmission sponsor has entered into a project labor agreement that, at a minimum, meets the requirements of Section 2500 of the Public Contract Code and includes all of the following:(1) Provisions requiring payment of prevailing wages, in accordance with Article 1 (commencing with Section 1720) of Chapter 1 of Part 7 of Division 2 of the Labor Code, to all construction workers employed in the construction of the project and for enforcement of that obligation through an arbitration procedure.(2) Targeted hiring provisions, including a targeted hiring plan, on a craft-by-craft basis to address job access for local, disadvantaged, or underrepresented workers, as defined by a relevant local agency.(3) Apprenticeship utilization provisions that commit all parties to increasing the share of work performed by state-registered apprentices above the state-mandated minimum ratio required in Section 1777.5 of the Labor Code.(4) Apprenticeship utilization provisions that commit all parties to hiring and retaining a certain percentage of state-registered apprentices that have completed the Multi-Craft Core preapprenticeship training curriculum referenced in subdivision (t) of Section 14005 of the Unemployment Insurance Code.(5) Consultation on a potential transmission project does not constitute approval of that project by the Public Utilities Commission or the State Energy Resources Conservation and Development Commission under their decisionmaking authority, if that authority exists.63049.83. (a) There is hereby created the Public Transmission Financing Fund in the State Treasury for the purpose of financing projects pursuant to this section and Section 94520 of the Public Resources Code.(b) Any eligible entity may access the Public Transmission Financing Fund.(c) The Public Transmission Financing Fund shall be eligible to receive funding from other sources determined by the Legislature.(d) Revenues of, and all other income collected by, eligible entities to support the Public Transmission Financing Program shall be deposited into the Public Transmission Financing Fund.(e) Proceeds of revenue bonds issued pursuant to this division shall be deposited into the Public Transmission Financing Fund.(f) Eligible entities may use moneys in the Public Transmission Financing Fund for any of the following purposes:(1) Supporting the costs of eligible transmission projects incurred by public transmission sponsors.(2) Costs incurred by eligible entities pursuant to this section for their operations and administration.(3) Debt service and other costs associated with bonds issued pursuant to this section.(4) Administrative costs incurred in implementing this article in an amount determined by the California Consumer Power and Conservation Financing Authority and approved by the Department of Finance.(5) Other costs to further the purpose of this article.(g) Eligible entities receiving any moneys from the fund shall comply with the requirements of subdivisions (h) and (i) of Section 63049.82.(h) (1) Eligible entities may pledge any or all of the moneys in the Public Transmission Financing Fund as security for payment of the principal of, and interest on, any particular issuance of bonds issued for the purposes of this article.(2) The bank may use any or all of the moneys in the Public Transmission Financing Fund to retain or purchase for retention or sale, subordinated bonds issued by the bank, by a special purpose trust, or by a sponsor, all in connection with the purposes of this article.(i) (1) Notwithstanding Section 13340, moneys, except as provided in paragraphs (2) and (3), in the Public Transmission Financing Fund are continuously appropriated, without regard to fiscal year, for the support of eligible entities and shall be available for expenditure for the purposes as stated in this article.(2) Moneys in the Public Transmission Financing Fund received pursuant to a federal appropriation are available for expenditure only upon appropriation by the Legislature.(3) Moneys in the Public Transmission Financing Fund shall be available for expenditure to support administrative costs only upon appropriation by the Legislature.SEC. 4. Section 748 is added to the Public Utilities Code, to read:748. For any retail bill credits provided to customers of an electrical corporation by a public transmission sponsor pursuant to Article 11.5 (commencing with Section 63049.80) of Chapter 2 of Division 1 of Title 6.7 of the Government Code or subdivision (a) of Section 3441.7, the commission shall require the retail bill credits to be displayed as a separate line item on each customer bill indicating the source of the retail bill credit.SEC. 5. Section 3310 of the Public Utilities Code is amended to read:3310. The authority may only exercise its powers pursuant to Article 4 (commencing with Section 3340) of Chapter 3 for the following purposes:(a) Establish, finance, purchase, lease, own, operate, acquire, or construct generating facilities and other projects and enterprises, on its own or through agreements with public and private third parties or joint ventures with public or private entities, or provide financial assistance for projects or programs by participating parties, to supplement private and public sector power supplies, taking into account generation facilities in operation or under development as of the effective date of this section, August 13, 2001, and to ensure a sufficient and reliable supply of electricity for Californias consumers at just and reasonable rates.(b) Sponsor, finance, purchase, lease, own, operate, acquire, or construct a partnership between a public transmission sponsor and an electrical corporation involving shared ownership and financing of a new transmission project that may include an upgrade or improvement to an existing transmission asset or new project located on a right-of-way owned by the electrical corporation.(b)(c) Finance programs, administered by the Energy Commission, the commission, and other approved participating parties for consumers and businesses to invest in cost-effective energy efficient appliances, renewable energy projects, and other programs that will reduce the demand for energy in California.(c)(d) Finance natural gas transportation and storage projects under Article 7 (commencing with Section 3368) of Chapter 3.(d)(e) Achieve an adequate energy reserve capacity in California within five years of the effective date of this division. August 13, 2001.(e)(f) Provide financing for owners of aged, inefficient, electric powerplants to perform necessary retrofits to improve the efficiency and environmental performances of those powerplants.SEC. 6. Section 3341.7 is added to the Public Utilities Code, to read:3341.7. (a) For purposes of a transmission project described in subdivision (b) of Section 3310, the authority may do either of the following:(1) Seek a revenue requirement from the Federal Energy Regulatory Commission for a transmission project that will be operated by the Independent System Operator. The authority shall ensure that the revenue requirement satisfies one of the following conditions:(A) The revenue requirement requested from the Federal Energy Regulatory Commission only reflects the projects actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the Transmission Access Charge. If the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the authority, the requirements of subparagraph (B) shall apply.(B) Revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the project, project overhead and administration, wildfire liability, and costs related to operations and maintenance will be refunded through either the Transmission Access Charge or a bill credit to retail customers.(2) Charge private generators, subscribers, and customers contracting for capacity on a new transmission project, consistent with subdivision (b) of Section 3310.(b) The authority may enter into partnerships with electrical corporations or other private entities under which the authority would purchase a long-term entitlement to a portion of the transmission asset that establishes eligibility to receive revenues from the Independent System Operator.SEC. 7. Section 3380.1 of the Public Utilities Code is amended to read:3380.1. For the purposes provided in of this division, the authority is authorized to may incur indebtedness and to issue securities of any kind or class, at public or private sale by the Treasurer, and to renew the same, provided that if all such indebtedness, howsoever evidenced, shall be payable solely from revenues. The authority may issue bonds for the purposes of this division in an amount not to exceed five billion dollars ($5,000,000,000), exclusive of any refundings.SEC. 8. Section 3380.2 of the Public Utilities Code is amended to read:3380.2. In connection with the issuance of bonds, in addition to the powers otherwise provided in this division, the authority may do all of the following:(a) Issue, from time to time, bonds payable from and secured by a pledge of all or any part of the revenues in order to finance the activities authorized by this division, including, without limitation, an enterprise or multiple enterprises, a single project for a single participating party, a series of projects for a single participating party, a single project for several participating parties, or several projects for several participating parties, and to sell those bonds at public or private sale by the Treasurer, in the form and on those terms and conditions as the Treasurer, as agent for sale, shall approve.(b) Pledge all or any part of the revenues to secure bonds and any repayment or reimbursement obligations of the authority to any provider of insurance or a guarantee of liquidity or credit facility entered into to provide for the payment or debt service on any bond.(c) Employ and compensate bond counsel, financial consultants, underwriters, and other advisers determined necessary and appointed by the Treasurer in connection with the issuance and sale of any bond.(d) Issue bonds to refund or purchase or otherwise acquire bonds on terms and conditions as the Treasurer, as agent for sale, shall approve.(e) Perform all acts that relate to the function and purpose of the authority under this division, whether or not specifically designated in this chapter.(f) Seek financing assistance from any entity eligible to access the Public Transmission Financing Fund pursuant to Section 63049.82 of the Government Code.SEC. 9. Section 3384 of the Public Utilities Code is repealed.3384.The authority may not finance or approve any new program, enterprise, or project on or after January 1, 2007, unless authority to approve such an activity is granted by statute enacted on or before January 1, 2007.SEC. 10. 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.SECTION 1.Section 369.5 of the Public Utilities Code is amended to read:369.5.(a)On or before December 31, 2026, the commission, in consultation with the Energy Commission, shall develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households in California. The framework shall include all of the following:(1)A methodology for identifying, categorizing, and quantifying major residential household energy sources.(2)The total annual energy costs borne by residential households.(3)Annual costs for major residential household energy sources, including, but not limited to, electricity, natural gas, propane, gasoline, and diesel.(4)Changes in the total annual energy costs for residential households over time.(5)The relative contributions of different energy sources to the total annual energy costs borne by residential households.(6)The annual growth rate of energy costs for residential households by energy source.(7)Projections of possible future total energy costs for residential households for the next 10 years.(8)Scenarios of actions that may lead to a 5 percent, 10 percent, and 15 percent reduction in total annual energy costs paid by residential households in 2035, relative to 2024 total annual energy costs after adjusting for inflation.(9)An assessment of the actions identified pursuant to paragraph (8) and the effects they may have on public health and safety, electrical and gas system reliability, and the achievement of the states 2045 clean electricity goal developed pursuant to Section 454.53 and the states 2045 carbon neutrality goal developed pursuant to Section 38562.2 of the Health and Safety Code.(b)The commission may use the total annual energy cost framework pursuant to subdivision (a) for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. In evaluating any such request, the commission shall consider whether the electrical corporation and gas corporation should take additional actions to achieve the reductions in total annual energy costs identified in paragraph (8) of subdivision (a).(c)(1)On or before December 31, 2026, the commission shall submit a report to the Legislature containing the framework and the information in subdivision (a).(2)Every two years following the submission pursuant to paragraph (1), the commission shall submit an update to the report providing an evaluation of the implementation and impact of the framework described in subdivision (a), and the usage of the framework described in subdivision (b), identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the commission in evaluating the requests.(3)Pursuant to Section 10231.5 of the Government Code, this subdivision shall become inoperative on December 31, 2030.
Amended IN Assembly April 21, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 825Introduced by Assembly Member Petrie-NorrisFebruary 19, 2025 An act to add Article 11.5 (commencing with Section 63049.80) to Chapter 2 of Division 1 of Title 6.7 of the Government Code, and to amend Section 369.5 of Sections 3310, 3380.1, and 3380.2 of, to add Sections 748 and 3341.7 to, and to repeal Section 3384 of, the Public Utilities Code, relating to energy. energy, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTAB 825, as amended, Petrie-Norris. Energy: cost framework: residential rates. Public Transmission Financing Act of 2025.(1) Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank (I-Bank) in the Governors Office of Business and Economic Development. Existing law, among other things, authorizes the I-Bank to make loans, issue bonds, and provide financial assistance for various types of projects that qualify as economic development or public development facilities.The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (act), approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, authorized the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs. Of these funds, the act made $850,000,000 available, upon appropriation by the Legislature, for clean energy projects, including, among other things, by making $325,000,000 available, upon appropriation by the Legislature, to the I-Bank, the State Energy Resources Conservation and Development Commission, or any other entity chosen by the Legislature, upon appropriation by the Legislature, for the public financing of clean energy transmission projects that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects. The act requires the proceeds of the bonds issued and sold pursuant to the above-described provisions, as specified, to be deposited in the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund and requires the moneys in the fund to be available, upon appropriation by the Legislature, for the purposes of the act.This bill would create the Public Transmission Financing Fund within the State Treasury for the purpose of financing eligible transmission projects, as defined, that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects. The bill would state the intent of the Legislature to enact subsequent legislation that would appropriate $325,000,000 from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund to the Public Transmission Financing Fund. The bill would make the moneys in the fund, except as specified, continuously appropriated, without regard to fiscal year, for the support of eligible entities, as defined, and available for expenditure for the above-described purpose. By establishing a continuously appropriated fund, the bill would make an appropriation.This bill would require the I-Bank to administer the Public Transmission Financing Program to provide financial assistance and financing for eligible transmission projects, sponsored or owned, in whole or in part, by a public transmission sponsor, as defined. The bill would authorize the I-Bank to provide financial assistance under the Public Transmission Financing Program to any public transmission sponsor or participating party, as defined, either directly or to a lending or financial institution, in connection with the financing or refinancing of a transmission project owned or financed, in whole or in part, by a public transmission sponsor, in accordance with an agreement or agreements, between the I-Bank and the public transmission sponsor either as a sole lender or in participation or syndication with other lenders. The bill would authorize the I-Bank to issue taxable or tax-exempt bonds, as specified, loan the proceeds to a public transmission sponsor, and deposit the proceeds into the Public Transmission Financing Fund or use the proceeds to refund bonds previously issued, as provided. The bill would prohibit the I-Bank from providing financing or other support for eligible transmission projects that will recover costs through an authorized revenue requirement approved by the Federal Energy Regulatory Commission unless the public transmission sponsor makes specified commitments. The bill would prohibit the I-Bank from financing an eligible transmission project unless the public transmission sponsor has entered into a project labor agreement that, at a minimum, meets specified requirements and includes specified information.(2) The California Consumer Power and Conservation Financing Authority Act creates the California Consumer Power and Conservation Financing Authority. The act authorizes the authority, before January 1, 2007, to establish, finance, purchase, lease, own, operate, acquire, or construct generating facilities and other projects and enterprises, or provide financial assistance for projects or programs by participating parties, to supplement private and public sector power supplies, to ensure a sufficient and reliable supply of electricity for Californias consumers at just and reasonable rates, to finance programs for consumers and businesses to invest in cost-effective energy efficient appliances, renewable energy projects, and other programs that will reduce the demand for energy in California, to finance natural gas transportation and storage projects, to achieve an adequate energy reserve capacity in California, and to provide financing for owners of aged, inefficient, electric powerplants to perform necessary retrofits to improve the efficiency and environmental performances of those powerplants. This bill would authorize the authority to sponsor, finance, purchase, lease, own, operate, acquire, or construct a partnership between a public transmission sponsor and an electrical corporation involving shared ownership and financing of a new transmission project that may include upgrades or improvements to existing transmission assets or new projects located on a right-of-way owned by the electrical corporation. The bill would, for transmission projects identified pursuant to that provision, authorize the commission to either request a revenue requirement from the Federal Energy Regulatory Commission for any transmission project that will be operated by the Independent System Operator, as provided, or charge private generators, subscribers, and customers contracting for capacity on a new transmission project, as provided. The bill would authorize the authority to enter into partnerships with electrical corporations or other private entities under which the authority would purchase a long-term entitlement to a portion of the transmission asset that establishes eligibility to receive revenues from the Independent System Operator. The bill would authorize the authority to seek financing assistance from any entity eligible to access the Public Transmission Financing Fund.(3) Existing law authorizes the authority to incur indebtedness and to issue securities of any kind or class, at public or private sale by the Treasurer, and to renew the same, if the indebtedness is payable solely from revenues. Existing law authorizes the authority to issue bonds, as specified, in an amount not to exceed $5,000,000,000, exclusive of any refunds.This bill would delete that $5,000,000,000 limit.(4) Existing law prohibits the authority from financing or approving any new program, enterprise, or project on or after January 1, 2007, unless authority to approve such an activity is granted by statute enacted on or before January 1, 2007.This bill would repeal that provision.(5) Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations.This bill would require the commission, for any retail bill credits provided to customers of an electrical corporation by a public transmission sponsor pursuant to the above-described provisions, to require the credits to be displayed as a separate line item on the customer bill indicating the source of the credit.(6) This bill would state the intent of the Legislature to enact subsequent legislation that would appropriate $5,000,000 to the California Consumer Power and Conservation Financing Authority for the purposes of hiring staff and consultants to support efforts relating to the public financing and ownership of new electric transmission infrastructure, as provided.(7) Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because certain of the above provisions would be part of the act and a violation of a commission action implementing this 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 requires, on or before December 31, 2026, the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission, to develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households, as specified, and requires the PUC to submit a report to the Legislature containing the framework. Existing law authorizes the PUC to use the framework for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. Existing law requires the PUC, in evaluating the request, to consider whether the electrical corporation and gas corporation should take additional actions to achieve certain reductions in total annual energy costs specified in the framework.This bill would require the PUC to submit an update to that report to the Legislature every two years following the initial submission, providing an evaluation of the implementation and impact of the framework, and the usage of the framework, identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the PUC in evaluating the requests.Digest Key Vote: MAJORITY2/3 Appropriation: NOYES Fiscal Committee: YES Local Program: NOYES
Amended IN Assembly April 21, 2025
Amended IN Assembly April 21, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 825
Introduced by Assembly Member Petrie-NorrisFebruary 19, 2025
Introduced by Assembly Member Petrie-Norris
February 19, 2025
An act to add Article 11.5 (commencing with Section 63049.80) to Chapter 2 of Division 1 of Title 6.7 of the Government Code, and to amend Section 369.5 of Sections 3310, 3380.1, and 3380.2 of, to add Sections 748 and 3341.7 to, and to repeal Section 3384 of, the Public Utilities Code, relating to energy. energy, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 825, as amended, Petrie-Norris. Energy: cost framework: residential rates. Public Transmission Financing Act of 2025.
(1) Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank (I-Bank) in the Governors Office of Business and Economic Development. Existing law, among other things, authorizes the I-Bank to make loans, issue bonds, and provide financial assistance for various types of projects that qualify as economic development or public development facilities.The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (act), approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, authorized the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs. Of these funds, the act made $850,000,000 available, upon appropriation by the Legislature, for clean energy projects, including, among other things, by making $325,000,000 available, upon appropriation by the Legislature, to the I-Bank, the State Energy Resources Conservation and Development Commission, or any other entity chosen by the Legislature, upon appropriation by the Legislature, for the public financing of clean energy transmission projects that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects. The act requires the proceeds of the bonds issued and sold pursuant to the above-described provisions, as specified, to be deposited in the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund and requires the moneys in the fund to be available, upon appropriation by the Legislature, for the purposes of the act.This bill would create the Public Transmission Financing Fund within the State Treasury for the purpose of financing eligible transmission projects, as defined, that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects. The bill would state the intent of the Legislature to enact subsequent legislation that would appropriate $325,000,000 from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund to the Public Transmission Financing Fund. The bill would make the moneys in the fund, except as specified, continuously appropriated, without regard to fiscal year, for the support of eligible entities, as defined, and available for expenditure for the above-described purpose. By establishing a continuously appropriated fund, the bill would make an appropriation.This bill would require the I-Bank to administer the Public Transmission Financing Program to provide financial assistance and financing for eligible transmission projects, sponsored or owned, in whole or in part, by a public transmission sponsor, as defined. The bill would authorize the I-Bank to provide financial assistance under the Public Transmission Financing Program to any public transmission sponsor or participating party, as defined, either directly or to a lending or financial institution, in connection with the financing or refinancing of a transmission project owned or financed, in whole or in part, by a public transmission sponsor, in accordance with an agreement or agreements, between the I-Bank and the public transmission sponsor either as a sole lender or in participation or syndication with other lenders. The bill would authorize the I-Bank to issue taxable or tax-exempt bonds, as specified, loan the proceeds to a public transmission sponsor, and deposit the proceeds into the Public Transmission Financing Fund or use the proceeds to refund bonds previously issued, as provided. The bill would prohibit the I-Bank from providing financing or other support for eligible transmission projects that will recover costs through an authorized revenue requirement approved by the Federal Energy Regulatory Commission unless the public transmission sponsor makes specified commitments. The bill would prohibit the I-Bank from financing an eligible transmission project unless the public transmission sponsor has entered into a project labor agreement that, at a minimum, meets specified requirements and includes specified information.(2) The California Consumer Power and Conservation Financing Authority Act creates the California Consumer Power and Conservation Financing Authority. The act authorizes the authority, before January 1, 2007, to establish, finance, purchase, lease, own, operate, acquire, or construct generating facilities and other projects and enterprises, or provide financial assistance for projects or programs by participating parties, to supplement private and public sector power supplies, to ensure a sufficient and reliable supply of electricity for Californias consumers at just and reasonable rates, to finance programs for consumers and businesses to invest in cost-effective energy efficient appliances, renewable energy projects, and other programs that will reduce the demand for energy in California, to finance natural gas transportation and storage projects, to achieve an adequate energy reserve capacity in California, and to provide financing for owners of aged, inefficient, electric powerplants to perform necessary retrofits to improve the efficiency and environmental performances of those powerplants. This bill would authorize the authority to sponsor, finance, purchase, lease, own, operate, acquire, or construct a partnership between a public transmission sponsor and an electrical corporation involving shared ownership and financing of a new transmission project that may include upgrades or improvements to existing transmission assets or new projects located on a right-of-way owned by the electrical corporation. The bill would, for transmission projects identified pursuant to that provision, authorize the commission to either request a revenue requirement from the Federal Energy Regulatory Commission for any transmission project that will be operated by the Independent System Operator, as provided, or charge private generators, subscribers, and customers contracting for capacity on a new transmission project, as provided. The bill would authorize the authority to enter into partnerships with electrical corporations or other private entities under which the authority would purchase a long-term entitlement to a portion of the transmission asset that establishes eligibility to receive revenues from the Independent System Operator. The bill would authorize the authority to seek financing assistance from any entity eligible to access the Public Transmission Financing Fund.(3) Existing law authorizes the authority to incur indebtedness and to issue securities of any kind or class, at public or private sale by the Treasurer, and to renew the same, if the indebtedness is payable solely from revenues. Existing law authorizes the authority to issue bonds, as specified, in an amount not to exceed $5,000,000,000, exclusive of any refunds.This bill would delete that $5,000,000,000 limit.(4) Existing law prohibits the authority from financing or approving any new program, enterprise, or project on or after January 1, 2007, unless authority to approve such an activity is granted by statute enacted on or before January 1, 2007.This bill would repeal that provision.(5) Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations.This bill would require the commission, for any retail bill credits provided to customers of an electrical corporation by a public transmission sponsor pursuant to the above-described provisions, to require the credits to be displayed as a separate line item on the customer bill indicating the source of the credit.(6) This bill would state the intent of the Legislature to enact subsequent legislation that would appropriate $5,000,000 to the California Consumer Power and Conservation Financing Authority for the purposes of hiring staff and consultants to support efforts relating to the public financing and ownership of new electric transmission infrastructure, as provided.(7) Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.Because certain of the above provisions would be part of the act and a violation of a commission action implementing this 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 requires, on or before December 31, 2026, the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission, to develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households, as specified, and requires the PUC to submit a report to the Legislature containing the framework. Existing law authorizes the PUC to use the framework for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. Existing law requires the PUC, in evaluating the request, to consider whether the electrical corporation and gas corporation should take additional actions to achieve certain reductions in total annual energy costs specified in the framework.This bill would require the PUC to submit an update to that report to the Legislature every two years following the initial submission, providing an evaluation of the implementation and impact of the framework, and the usage of the framework, identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the PUC in evaluating the requests.
(1) Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank (I-Bank) in the Governors Office of Business and Economic Development. Existing law, among other things, authorizes the I-Bank to make loans, issue bonds, and provide financial assistance for various types of projects that qualify as economic development or public development facilities.
The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (act), approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, authorized the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs. Of these funds, the act made $850,000,000 available, upon appropriation by the Legislature, for clean energy projects, including, among other things, by making $325,000,000 available, upon appropriation by the Legislature, to the I-Bank, the State Energy Resources Conservation and Development Commission, or any other entity chosen by the Legislature, upon appropriation by the Legislature, for the public financing of clean energy transmission projects that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects. The act requires the proceeds of the bonds issued and sold pursuant to the above-described provisions, as specified, to be deposited in the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund and requires the moneys in the fund to be available, upon appropriation by the Legislature, for the purposes of the act.
This bill would create the Public Transmission Financing Fund within the State Treasury for the purpose of financing eligible transmission projects, as defined, that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects. The bill would state the intent of the Legislature to enact subsequent legislation that would appropriate $325,000,000 from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund to the Public Transmission Financing Fund. The bill would make the moneys in the fund, except as specified, continuously appropriated, without regard to fiscal year, for the support of eligible entities, as defined, and available for expenditure for the above-described purpose. By establishing a continuously appropriated fund, the bill would make an appropriation.
This bill would require the I-Bank to administer the Public Transmission Financing Program to provide financial assistance and financing for eligible transmission projects, sponsored or owned, in whole or in part, by a public transmission sponsor, as defined. The bill would authorize the I-Bank to provide financial assistance under the Public Transmission Financing Program to any public transmission sponsor or participating party, as defined, either directly or to a lending or financial institution, in connection with the financing or refinancing of a transmission project owned or financed, in whole or in part, by a public transmission sponsor, in accordance with an agreement or agreements, between the I-Bank and the public transmission sponsor either as a sole lender or in participation or syndication with other lenders. The bill would authorize the I-Bank to issue taxable or tax-exempt bonds, as specified, loan the proceeds to a public transmission sponsor, and deposit the proceeds into the Public Transmission Financing Fund or use the proceeds to refund bonds previously issued, as provided. The bill would prohibit the I-Bank from providing financing or other support for eligible transmission projects that will recover costs through an authorized revenue requirement approved by the Federal Energy Regulatory Commission unless the public transmission sponsor makes specified commitments. The bill would prohibit the I-Bank from financing an eligible transmission project unless the public transmission sponsor has entered into a project labor agreement that, at a minimum, meets specified requirements and includes specified information.
(2) The California Consumer Power and Conservation Financing Authority Act creates the California Consumer Power and Conservation Financing Authority. The act authorizes the authority, before January 1, 2007, to establish, finance, purchase, lease, own, operate, acquire, or construct generating facilities and other projects and enterprises, or provide financial assistance for projects or programs by participating parties, to supplement private and public sector power supplies, to ensure a sufficient and reliable supply of electricity for Californias consumers at just and reasonable rates, to finance programs for consumers and businesses to invest in cost-effective energy efficient appliances, renewable energy projects, and other programs that will reduce the demand for energy in California, to finance natural gas transportation and storage projects, to achieve an adequate energy reserve capacity in California, and to provide financing for owners of aged, inefficient, electric powerplants to perform necessary retrofits to improve the efficiency and environmental performances of those powerplants.
This bill would authorize the authority to sponsor, finance, purchase, lease, own, operate, acquire, or construct a partnership between a public transmission sponsor and an electrical corporation involving shared ownership and financing of a new transmission project that may include upgrades or improvements to existing transmission assets or new projects located on a right-of-way owned by the electrical corporation. The bill would, for transmission projects identified pursuant to that provision, authorize the commission to either request a revenue requirement from the Federal Energy Regulatory Commission for any transmission project that will be operated by the Independent System Operator, as provided, or charge private generators, subscribers, and customers contracting for capacity on a new transmission project, as provided. The bill would authorize the authority to enter into partnerships with electrical corporations or other private entities under which the authority would purchase a long-term entitlement to a portion of the transmission asset that establishes eligibility to receive revenues from the Independent System Operator. The bill would authorize the authority to seek financing assistance from any entity eligible to access the Public Transmission Financing Fund.
(3) Existing law authorizes the authority to incur indebtedness and to issue securities of any kind or class, at public or private sale by the Treasurer, and to renew the same, if the indebtedness is payable solely from revenues. Existing law authorizes the authority to issue bonds, as specified, in an amount not to exceed $5,000,000,000, exclusive of any refunds.
This bill would delete that $5,000,000,000 limit.
(4) Existing law prohibits the authority from financing or approving any new program, enterprise, or project on or after January 1, 2007, unless authority to approve such an activity is granted by statute enacted on or before January 1, 2007.
This bill would repeal that provision.
(5) Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations.
This bill would require the commission, for any retail bill credits provided to customers of an electrical corporation by a public transmission sponsor pursuant to the above-described provisions, to require the credits to be displayed as a separate line item on the customer bill indicating the source of the credit.
(6) This bill would state the intent of the Legislature to enact subsequent legislation that would appropriate $5,000,000 to the California Consumer Power and Conservation Financing Authority for the purposes of hiring staff and consultants to support efforts relating to the public financing and ownership of new electric transmission infrastructure, as provided.
(7) Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because certain of the above provisions would be part of the act and a violation of a commission action implementing this 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 requires, on or before December 31, 2026, the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission, to develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households, as specified, and requires the PUC to submit a report to the Legislature containing the framework. Existing law authorizes the PUC to use the framework for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. Existing law requires the PUC, in evaluating the request, to consider whether the electrical corporation and gas corporation should take additional actions to achieve certain reductions in total annual energy costs specified in the framework.
This bill would require the PUC to submit an update to that report to the Legislature every two years following the initial submission, providing an evaluation of the implementation and impact of the framework, and the usage of the framework, identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the PUC in evaluating the requests.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. (a) This act shall be known, and may be cited, as the Public Transmission Financing Act of 2025.(b) The Legislature finds and declares all the following:(1) The Independent System Operator, in its 20-Year Transmission Outlook from July 2024, estimated the need for up to $63,200,000,000 in future transmission investments to satisfy anticipated load growth and new clean energy generation.(2) The costs of privately owned new transmission projects collected from electrical ratepayers includes an after-tax rate of return on shareholder equity that comprises approximately one-half the capital structure used to finance the asset.(3) Any portion of a transmission project that is publicly owned can be financed primarily or exclusively using debt obtained at lower interest rates than would be available to private entities.(4) The use of public financing can reduce the long-term ownership costs of new transmission investments by more than 50 percent compared to private ownership.(5) Any publicly owned transmission asset supported by this act shall participate in the Wildfire Fund described in Part 6 (commencing with Section 3280) of Division 1 of the Public Utilities Code.(6) Public ownership of new electrical transmission facilities can occur through a state agency, local public agencies, tribal organizations, or joint powers authorities.SEC. 2. It is the intent of the Legislature to enact subsequent legislation that would appropriate five million dollars ($5,000,000) to the California Consumer Power and Conservation Financing Authority for the purposes of hiring staff and consultants to support efforts relating to the public financing and ownership of new electric transmission infrastructure pursuant to subdivision (b) of Section 3310 of the Public Utilities Code.SEC. 3. Article 11.5 (commencing with Section 63049.80) is added to Chapter 2 of Division 1 of Title 6.7 of the Government Code, to read: Article 11.5. Public Transmission Financing63049.80. (a) It is the intent of the Legislature to enact subsequent legislation that would appropriate three hundred twenty-five million dollars ($325,000,000) from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund established pursuant to Section 90500 of the Public Resources Code to the Public Transmission Financing Fund established pursuant to Section 63049.83.(b) The moneys in the Public Transmission Financing Fund shall be used to support public financing of transmission projects that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects.63049.81. For purposes of this article, the following definitions apply:(a) Bank means the California Infrastructure and Economic Development Bank.(b) Electrical corporation has the same meaning as defined in Section 218 of the Public Utilities Code.(c) Eligible entities means entities able to access the Public Transmission Financing Fund, including the bank, public transmission sponsors, or any other entity selected by the Legislature.(d) Eligible transmission project means any electric transmission project where an electrical corporation or local publicly owned electric utility has the primary responsibility for construction and ownership.(e) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.(f) Participating party has the same meaning as defined in subdivision (o) of Section 63010.(g) Public Transmission Financing Program means the program of that name to administer the Public Transmission Financing Fund and to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.(h) Public transmission sponsor means any public owner of any portion of a new electric transmission project pursuant to this act, including a state agency designated by the Governor, the Department of Water Resources, the California Consumer Power and Conservation Financing Authority, local public agencies, tribal organizations, or joint powers authorities.63049.82. (a) The bank shall administer the Public Transmission Financing Program to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.(b) (1) The bank shall respond to requests from public transmission sponsors to evaluate, and consult on, the financing of proposed eligible transmission projects.(2) Consultation on, or evaluation of, an eligible transmission project by the bank shall not indicate the banks approval.(3) The bank shall consider the credit and financial aspects of the eligible transmission project before determining whether to approve and finance the eligible transmission project.(c) (1) The bank is hereby authorized and empowered to provide financial assistance under the Public Transmission Financing Program to any public transmission sponsor or participating party either directly or to a lending or financial institution, in connection with the financing or refinancing of a transmission project owned or financed, in whole or in part, by a public transmission sponsor, in accordance with an agreement or agreements, between the bank and the public transmission sponsor either as a sole lender or in participation or syndication with other lenders.(2) The financial assistance may include direct funding, debt financing, and the issuance of revenue bonds pursuant to subdivision (e).(d) (1) The bank may issue taxable or tax-exempt bonds pursuant to Chapter 5 (commencing with Section 63070) and may loan the proceeds thereof to a public transmission sponsor and deposit the proceeds into the Public Transmission Financing Fund or use the proceeds to refund bonds previously issued under this article.(2) Bond proceeds may also be used to fund necessary reserves, capitalized interest, credit enhancement costs, or costs of issuance.(e) (1) Notwithstanding this division, the financing of costs incurred by a public transmission sponsor for a transmission project shall be deemed to be in the public interest and eligible for financing by the bank or by a special purpose trust established pursuant to this division.(2) The financing shall be treated as financing of an economic development facility for purposes of this division, except that Article 3 (commencing with Section 63040) and Article 5 (commencing with Section 63043) shall not apply to any such financing.(f) Bonds or other indebtedness issued pursuant to this article shall not be deemed to constitute a debt or liability of the state or of any political subdivision of the state other than the bank or any special purpose trust established pursuant to this division, but shall be payable solely from the funds of, and any security provided by, the public transmission sponsor.(g) The bank shall not provide financing or other support for eligible transmission projects that recover costs through an authorized revenue requirement approved by the Federal Energy Regulatory Commission unless the public transmission sponsor makes either of the following commitments:(1) (A) The public transmission sponsor requests a revenue requirement at the Federal Energy Regulatory Commission that only reflects its actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the transmission access charge.(B) In the event that the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the public transmission sponsor, the requirements of paragraph (2) shall apply.(2) Any revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the eligible transmission project, eligible transmission project overhead and administration, wildfire liability, and costs related to operations and maintenance shall be refunded through either the transmission access charge or a bill credit to retail customers.(h) The bank shall not finance an eligible transmission project unless the public transmission sponsor has entered into a project labor agreement that, at a minimum, meets the requirements of Section 2500 of the Public Contract Code and includes all of the following:(1) Provisions requiring payment of prevailing wages, in accordance with Article 1 (commencing with Section 1720) of Chapter 1 of Part 7 of Division 2 of the Labor Code, to all construction workers employed in the construction of the project and for enforcement of that obligation through an arbitration procedure.(2) Targeted hiring provisions, including a targeted hiring plan, on a craft-by-craft basis to address job access for local, disadvantaged, or underrepresented workers, as defined by a relevant local agency.(3) Apprenticeship utilization provisions that commit all parties to increasing the share of work performed by state-registered apprentices above the state-mandated minimum ratio required in Section 1777.5 of the Labor Code.(4) Apprenticeship utilization provisions that commit all parties to hiring and retaining a certain percentage of state-registered apprentices that have completed the Multi-Craft Core preapprenticeship training curriculum referenced in subdivision (t) of Section 14005 of the Unemployment Insurance Code.(5) Consultation on a potential transmission project does not constitute approval of that project by the Public Utilities Commission or the State Energy Resources Conservation and Development Commission under their decisionmaking authority, if that authority exists.63049.83. (a) There is hereby created the Public Transmission Financing Fund in the State Treasury for the purpose of financing projects pursuant to this section and Section 94520 of the Public Resources Code.(b) Any eligible entity may access the Public Transmission Financing Fund.(c) The Public Transmission Financing Fund shall be eligible to receive funding from other sources determined by the Legislature.(d) Revenues of, and all other income collected by, eligible entities to support the Public Transmission Financing Program shall be deposited into the Public Transmission Financing Fund.(e) Proceeds of revenue bonds issued pursuant to this division shall be deposited into the Public Transmission Financing Fund.(f) Eligible entities may use moneys in the Public Transmission Financing Fund for any of the following purposes:(1) Supporting the costs of eligible transmission projects incurred by public transmission sponsors.(2) Costs incurred by eligible entities pursuant to this section for their operations and administration.(3) Debt service and other costs associated with bonds issued pursuant to this section.(4) Administrative costs incurred in implementing this article in an amount determined by the California Consumer Power and Conservation Financing Authority and approved by the Department of Finance.(5) Other costs to further the purpose of this article.(g) Eligible entities receiving any moneys from the fund shall comply with the requirements of subdivisions (h) and (i) of Section 63049.82.(h) (1) Eligible entities may pledge any or all of the moneys in the Public Transmission Financing Fund as security for payment of the principal of, and interest on, any particular issuance of bonds issued for the purposes of this article.(2) The bank may use any or all of the moneys in the Public Transmission Financing Fund to retain or purchase for retention or sale, subordinated bonds issued by the bank, by a special purpose trust, or by a sponsor, all in connection with the purposes of this article.(i) (1) Notwithstanding Section 13340, moneys, except as provided in paragraphs (2) and (3), in the Public Transmission Financing Fund are continuously appropriated, without regard to fiscal year, for the support of eligible entities and shall be available for expenditure for the purposes as stated in this article.(2) Moneys in the Public Transmission Financing Fund received pursuant to a federal appropriation are available for expenditure only upon appropriation by the Legislature.(3) Moneys in the Public Transmission Financing Fund shall be available for expenditure to support administrative costs only upon appropriation by the Legislature.SEC. 4. Section 748 is added to the Public Utilities Code, to read:748. For any retail bill credits provided to customers of an electrical corporation by a public transmission sponsor pursuant to Article 11.5 (commencing with Section 63049.80) of Chapter 2 of Division 1 of Title 6.7 of the Government Code or subdivision (a) of Section 3441.7, the commission shall require the retail bill credits to be displayed as a separate line item on each customer bill indicating the source of the retail bill credit.SEC. 5. Section 3310 of the Public Utilities Code is amended to read:3310. The authority may only exercise its powers pursuant to Article 4 (commencing with Section 3340) of Chapter 3 for the following purposes:(a) Establish, finance, purchase, lease, own, operate, acquire, or construct generating facilities and other projects and enterprises, on its own or through agreements with public and private third parties or joint ventures with public or private entities, or provide financial assistance for projects or programs by participating parties, to supplement private and public sector power supplies, taking into account generation facilities in operation or under development as of the effective date of this section, August 13, 2001, and to ensure a sufficient and reliable supply of electricity for Californias consumers at just and reasonable rates.(b) Sponsor, finance, purchase, lease, own, operate, acquire, or construct a partnership between a public transmission sponsor and an electrical corporation involving shared ownership and financing of a new transmission project that may include an upgrade or improvement to an existing transmission asset or new project located on a right-of-way owned by the electrical corporation.(b)(c) Finance programs, administered by the Energy Commission, the commission, and other approved participating parties for consumers and businesses to invest in cost-effective energy efficient appliances, renewable energy projects, and other programs that will reduce the demand for energy in California.(c)(d) Finance natural gas transportation and storage projects under Article 7 (commencing with Section 3368) of Chapter 3.(d)(e) Achieve an adequate energy reserve capacity in California within five years of the effective date of this division. August 13, 2001.(e)(f) Provide financing for owners of aged, inefficient, electric powerplants to perform necessary retrofits to improve the efficiency and environmental performances of those powerplants.SEC. 6. Section 3341.7 is added to the Public Utilities Code, to read:3341.7. (a) For purposes of a transmission project described in subdivision (b) of Section 3310, the authority may do either of the following:(1) Seek a revenue requirement from the Federal Energy Regulatory Commission for a transmission project that will be operated by the Independent System Operator. The authority shall ensure that the revenue requirement satisfies one of the following conditions:(A) The revenue requirement requested from the Federal Energy Regulatory Commission only reflects the projects actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the Transmission Access Charge. If the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the authority, the requirements of subparagraph (B) shall apply.(B) Revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the project, project overhead and administration, wildfire liability, and costs related to operations and maintenance will be refunded through either the Transmission Access Charge or a bill credit to retail customers.(2) Charge private generators, subscribers, and customers contracting for capacity on a new transmission project, consistent with subdivision (b) of Section 3310.(b) The authority may enter into partnerships with electrical corporations or other private entities under which the authority would purchase a long-term entitlement to a portion of the transmission asset that establishes eligibility to receive revenues from the Independent System Operator.SEC. 7. Section 3380.1 of the Public Utilities Code is amended to read:3380.1. For the purposes provided in of this division, the authority is authorized to may incur indebtedness and to issue securities of any kind or class, at public or private sale by the Treasurer, and to renew the same, provided that if all such indebtedness, howsoever evidenced, shall be payable solely from revenues. The authority may issue bonds for the purposes of this division in an amount not to exceed five billion dollars ($5,000,000,000), exclusive of any refundings.SEC. 8. Section 3380.2 of the Public Utilities Code is amended to read:3380.2. In connection with the issuance of bonds, in addition to the powers otherwise provided in this division, the authority may do all of the following:(a) Issue, from time to time, bonds payable from and secured by a pledge of all or any part of the revenues in order to finance the activities authorized by this division, including, without limitation, an enterprise or multiple enterprises, a single project for a single participating party, a series of projects for a single participating party, a single project for several participating parties, or several projects for several participating parties, and to sell those bonds at public or private sale by the Treasurer, in the form and on those terms and conditions as the Treasurer, as agent for sale, shall approve.(b) Pledge all or any part of the revenues to secure bonds and any repayment or reimbursement obligations of the authority to any provider of insurance or a guarantee of liquidity or credit facility entered into to provide for the payment or debt service on any bond.(c) Employ and compensate bond counsel, financial consultants, underwriters, and other advisers determined necessary and appointed by the Treasurer in connection with the issuance and sale of any bond.(d) Issue bonds to refund or purchase or otherwise acquire bonds on terms and conditions as the Treasurer, as agent for sale, shall approve.(e) Perform all acts that relate to the function and purpose of the authority under this division, whether or not specifically designated in this chapter.(f) Seek financing assistance from any entity eligible to access the Public Transmission Financing Fund pursuant to Section 63049.82 of the Government Code.SEC. 9. Section 3384 of the Public Utilities Code is repealed.3384.The authority may not finance or approve any new program, enterprise, or project on or after January 1, 2007, unless authority to approve such an activity is granted by statute enacted on or before January 1, 2007.SEC. 10. 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.SECTION 1.Section 369.5 of the Public Utilities Code is amended to read:369.5.(a)On or before December 31, 2026, the commission, in consultation with the Energy Commission, shall develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households in California. The framework shall include all of the following:(1)A methodology for identifying, categorizing, and quantifying major residential household energy sources.(2)The total annual energy costs borne by residential households.(3)Annual costs for major residential household energy sources, including, but not limited to, electricity, natural gas, propane, gasoline, and diesel.(4)Changes in the total annual energy costs for residential households over time.(5)The relative contributions of different energy sources to the total annual energy costs borne by residential households.(6)The annual growth rate of energy costs for residential households by energy source.(7)Projections of possible future total energy costs for residential households for the next 10 years.(8)Scenarios of actions that may lead to a 5 percent, 10 percent, and 15 percent reduction in total annual energy costs paid by residential households in 2035, relative to 2024 total annual energy costs after adjusting for inflation.(9)An assessment of the actions identified pursuant to paragraph (8) and the effects they may have on public health and safety, electrical and gas system reliability, and the achievement of the states 2045 clean electricity goal developed pursuant to Section 454.53 and the states 2045 carbon neutrality goal developed pursuant to Section 38562.2 of the Health and Safety Code.(b)The commission may use the total annual energy cost framework pursuant to subdivision (a) for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. In evaluating any such request, the commission shall consider whether the electrical corporation and gas corporation should take additional actions to achieve the reductions in total annual energy costs identified in paragraph (8) of subdivision (a).(c)(1)On or before December 31, 2026, the commission shall submit a report to the Legislature containing the framework and the information in subdivision (a).(2)Every two years following the submission pursuant to paragraph (1), the commission shall submit an update to the report providing an evaluation of the implementation and impact of the framework described in subdivision (a), and the usage of the framework described in subdivision (b), identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the commission in evaluating the requests.(3)Pursuant to Section 10231.5 of the Government Code, this subdivision shall become inoperative on December 31, 2030.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. (a) This act shall be known, and may be cited, as the Public Transmission Financing Act of 2025.(b) The Legislature finds and declares all the following:(1) The Independent System Operator, in its 20-Year Transmission Outlook from July 2024, estimated the need for up to $63,200,000,000 in future transmission investments to satisfy anticipated load growth and new clean energy generation.(2) The costs of privately owned new transmission projects collected from electrical ratepayers includes an after-tax rate of return on shareholder equity that comprises approximately one-half the capital structure used to finance the asset.(3) Any portion of a transmission project that is publicly owned can be financed primarily or exclusively using debt obtained at lower interest rates than would be available to private entities.(4) The use of public financing can reduce the long-term ownership costs of new transmission investments by more than 50 percent compared to private ownership.(5) Any publicly owned transmission asset supported by this act shall participate in the Wildfire Fund described in Part 6 (commencing with Section 3280) of Division 1 of the Public Utilities Code.(6) Public ownership of new electrical transmission facilities can occur through a state agency, local public agencies, tribal organizations, or joint powers authorities.
SECTION 1. (a) This act shall be known, and may be cited, as the Public Transmission Financing Act of 2025.(b) The Legislature finds and declares all the following:(1) The Independent System Operator, in its 20-Year Transmission Outlook from July 2024, estimated the need for up to $63,200,000,000 in future transmission investments to satisfy anticipated load growth and new clean energy generation.(2) The costs of privately owned new transmission projects collected from electrical ratepayers includes an after-tax rate of return on shareholder equity that comprises approximately one-half the capital structure used to finance the asset.(3) Any portion of a transmission project that is publicly owned can be financed primarily or exclusively using debt obtained at lower interest rates than would be available to private entities.(4) The use of public financing can reduce the long-term ownership costs of new transmission investments by more than 50 percent compared to private ownership.(5) Any publicly owned transmission asset supported by this act shall participate in the Wildfire Fund described in Part 6 (commencing with Section 3280) of Division 1 of the Public Utilities Code.(6) Public ownership of new electrical transmission facilities can occur through a state agency, local public agencies, tribal organizations, or joint powers authorities.
SECTION 1. (a) This act shall be known, and may be cited, as the Public Transmission Financing Act of 2025.
### SECTION 1.
(b) The Legislature finds and declares all the following:
(1) The Independent System Operator, in its 20-Year Transmission Outlook from July 2024, estimated the need for up to $63,200,000,000 in future transmission investments to satisfy anticipated load growth and new clean energy generation.
(2) The costs of privately owned new transmission projects collected from electrical ratepayers includes an after-tax rate of return on shareholder equity that comprises approximately one-half the capital structure used to finance the asset.
(3) Any portion of a transmission project that is publicly owned can be financed primarily or exclusively using debt obtained at lower interest rates than would be available to private entities.
(4) The use of public financing can reduce the long-term ownership costs of new transmission investments by more than 50 percent compared to private ownership.
(5) Any publicly owned transmission asset supported by this act shall participate in the Wildfire Fund described in Part 6 (commencing with Section 3280) of Division 1 of the Public Utilities Code.
(6) Public ownership of new electrical transmission facilities can occur through a state agency, local public agencies, tribal organizations, or joint powers authorities.
SEC. 2. It is the intent of the Legislature to enact subsequent legislation that would appropriate five million dollars ($5,000,000) to the California Consumer Power and Conservation Financing Authority for the purposes of hiring staff and consultants to support efforts relating to the public financing and ownership of new electric transmission infrastructure pursuant to subdivision (b) of Section 3310 of the Public Utilities Code.
SEC. 2. It is the intent of the Legislature to enact subsequent legislation that would appropriate five million dollars ($5,000,000) to the California Consumer Power and Conservation Financing Authority for the purposes of hiring staff and consultants to support efforts relating to the public financing and ownership of new electric transmission infrastructure pursuant to subdivision (b) of Section 3310 of the Public Utilities Code.
SEC. 2. It is the intent of the Legislature to enact subsequent legislation that would appropriate five million dollars ($5,000,000) to the California Consumer Power and Conservation Financing Authority for the purposes of hiring staff and consultants to support efforts relating to the public financing and ownership of new electric transmission infrastructure pursuant to subdivision (b) of Section 3310 of the Public Utilities Code.
### SEC. 2.
SEC. 3. Article 11.5 (commencing with Section 63049.80) is added to Chapter 2 of Division 1 of Title 6.7 of the Government Code, to read: Article 11.5. Public Transmission Financing63049.80. (a) It is the intent of the Legislature to enact subsequent legislation that would appropriate three hundred twenty-five million dollars ($325,000,000) from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund established pursuant to Section 90500 of the Public Resources Code to the Public Transmission Financing Fund established pursuant to Section 63049.83.(b) The moneys in the Public Transmission Financing Fund shall be used to support public financing of transmission projects that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects.63049.81. For purposes of this article, the following definitions apply:(a) Bank means the California Infrastructure and Economic Development Bank.(b) Electrical corporation has the same meaning as defined in Section 218 of the Public Utilities Code.(c) Eligible entities means entities able to access the Public Transmission Financing Fund, including the bank, public transmission sponsors, or any other entity selected by the Legislature.(d) Eligible transmission project means any electric transmission project where an electrical corporation or local publicly owned electric utility has the primary responsibility for construction and ownership.(e) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.(f) Participating party has the same meaning as defined in subdivision (o) of Section 63010.(g) Public Transmission Financing Program means the program of that name to administer the Public Transmission Financing Fund and to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.(h) Public transmission sponsor means any public owner of any portion of a new electric transmission project pursuant to this act, including a state agency designated by the Governor, the Department of Water Resources, the California Consumer Power and Conservation Financing Authority, local public agencies, tribal organizations, or joint powers authorities.63049.82. (a) The bank shall administer the Public Transmission Financing Program to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.(b) (1) The bank shall respond to requests from public transmission sponsors to evaluate, and consult on, the financing of proposed eligible transmission projects.(2) Consultation on, or evaluation of, an eligible transmission project by the bank shall not indicate the banks approval.(3) The bank shall consider the credit and financial aspects of the eligible transmission project before determining whether to approve and finance the eligible transmission project.(c) (1) The bank is hereby authorized and empowered to provide financial assistance under the Public Transmission Financing Program to any public transmission sponsor or participating party either directly or to a lending or financial institution, in connection with the financing or refinancing of a transmission project owned or financed, in whole or in part, by a public transmission sponsor, in accordance with an agreement or agreements, between the bank and the public transmission sponsor either as a sole lender or in participation or syndication with other lenders.(2) The financial assistance may include direct funding, debt financing, and the issuance of revenue bonds pursuant to subdivision (e).(d) (1) The bank may issue taxable or tax-exempt bonds pursuant to Chapter 5 (commencing with Section 63070) and may loan the proceeds thereof to a public transmission sponsor and deposit the proceeds into the Public Transmission Financing Fund or use the proceeds to refund bonds previously issued under this article.(2) Bond proceeds may also be used to fund necessary reserves, capitalized interest, credit enhancement costs, or costs of issuance.(e) (1) Notwithstanding this division, the financing of costs incurred by a public transmission sponsor for a transmission project shall be deemed to be in the public interest and eligible for financing by the bank or by a special purpose trust established pursuant to this division.(2) The financing shall be treated as financing of an economic development facility for purposes of this division, except that Article 3 (commencing with Section 63040) and Article 5 (commencing with Section 63043) shall not apply to any such financing.(f) Bonds or other indebtedness issued pursuant to this article shall not be deemed to constitute a debt or liability of the state or of any political subdivision of the state other than the bank or any special purpose trust established pursuant to this division, but shall be payable solely from the funds of, and any security provided by, the public transmission sponsor.(g) The bank shall not provide financing or other support for eligible transmission projects that recover costs through an authorized revenue requirement approved by the Federal Energy Regulatory Commission unless the public transmission sponsor makes either of the following commitments:(1) (A) The public transmission sponsor requests a revenue requirement at the Federal Energy Regulatory Commission that only reflects its actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the transmission access charge.(B) In the event that the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the public transmission sponsor, the requirements of paragraph (2) shall apply.(2) Any revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the eligible transmission project, eligible transmission project overhead and administration, wildfire liability, and costs related to operations and maintenance shall be refunded through either the transmission access charge or a bill credit to retail customers.(h) The bank shall not finance an eligible transmission project unless the public transmission sponsor has entered into a project labor agreement that, at a minimum, meets the requirements of Section 2500 of the Public Contract Code and includes all of the following:(1) Provisions requiring payment of prevailing wages, in accordance with Article 1 (commencing with Section 1720) of Chapter 1 of Part 7 of Division 2 of the Labor Code, to all construction workers employed in the construction of the project and for enforcement of that obligation through an arbitration procedure.(2) Targeted hiring provisions, including a targeted hiring plan, on a craft-by-craft basis to address job access for local, disadvantaged, or underrepresented workers, as defined by a relevant local agency.(3) Apprenticeship utilization provisions that commit all parties to increasing the share of work performed by state-registered apprentices above the state-mandated minimum ratio required in Section 1777.5 of the Labor Code.(4) Apprenticeship utilization provisions that commit all parties to hiring and retaining a certain percentage of state-registered apprentices that have completed the Multi-Craft Core preapprenticeship training curriculum referenced in subdivision (t) of Section 14005 of the Unemployment Insurance Code.(5) Consultation on a potential transmission project does not constitute approval of that project by the Public Utilities Commission or the State Energy Resources Conservation and Development Commission under their decisionmaking authority, if that authority exists.63049.83. (a) There is hereby created the Public Transmission Financing Fund in the State Treasury for the purpose of financing projects pursuant to this section and Section 94520 of the Public Resources Code.(b) Any eligible entity may access the Public Transmission Financing Fund.(c) The Public Transmission Financing Fund shall be eligible to receive funding from other sources determined by the Legislature.(d) Revenues of, and all other income collected by, eligible entities to support the Public Transmission Financing Program shall be deposited into the Public Transmission Financing Fund.(e) Proceeds of revenue bonds issued pursuant to this division shall be deposited into the Public Transmission Financing Fund.(f) Eligible entities may use moneys in the Public Transmission Financing Fund for any of the following purposes:(1) Supporting the costs of eligible transmission projects incurred by public transmission sponsors.(2) Costs incurred by eligible entities pursuant to this section for their operations and administration.(3) Debt service and other costs associated with bonds issued pursuant to this section.(4) Administrative costs incurred in implementing this article in an amount determined by the California Consumer Power and Conservation Financing Authority and approved by the Department of Finance.(5) Other costs to further the purpose of this article.(g) Eligible entities receiving any moneys from the fund shall comply with the requirements of subdivisions (h) and (i) of Section 63049.82.(h) (1) Eligible entities may pledge any or all of the moneys in the Public Transmission Financing Fund as security for payment of the principal of, and interest on, any particular issuance of bonds issued for the purposes of this article.(2) The bank may use any or all of the moneys in the Public Transmission Financing Fund to retain or purchase for retention or sale, subordinated bonds issued by the bank, by a special purpose trust, or by a sponsor, all in connection with the purposes of this article.(i) (1) Notwithstanding Section 13340, moneys, except as provided in paragraphs (2) and (3), in the Public Transmission Financing Fund are continuously appropriated, without regard to fiscal year, for the support of eligible entities and shall be available for expenditure for the purposes as stated in this article.(2) Moneys in the Public Transmission Financing Fund received pursuant to a federal appropriation are available for expenditure only upon appropriation by the Legislature.(3) Moneys in the Public Transmission Financing Fund shall be available for expenditure to support administrative costs only upon appropriation by the Legislature.
SEC. 3. Article 11.5 (commencing with Section 63049.80) is added to Chapter 2 of Division 1 of Title 6.7 of the Government Code, to read:
### SEC. 3.
Article 11.5. Public Transmission Financing63049.80. (a) It is the intent of the Legislature to enact subsequent legislation that would appropriate three hundred twenty-five million dollars ($325,000,000) from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund established pursuant to Section 90500 of the Public Resources Code to the Public Transmission Financing Fund established pursuant to Section 63049.83.(b) The moneys in the Public Transmission Financing Fund shall be used to support public financing of transmission projects that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects.63049.81. For purposes of this article, the following definitions apply:(a) Bank means the California Infrastructure and Economic Development Bank.(b) Electrical corporation has the same meaning as defined in Section 218 of the Public Utilities Code.(c) Eligible entities means entities able to access the Public Transmission Financing Fund, including the bank, public transmission sponsors, or any other entity selected by the Legislature.(d) Eligible transmission project means any electric transmission project where an electrical corporation or local publicly owned electric utility has the primary responsibility for construction and ownership.(e) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.(f) Participating party has the same meaning as defined in subdivision (o) of Section 63010.(g) Public Transmission Financing Program means the program of that name to administer the Public Transmission Financing Fund and to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.(h) Public transmission sponsor means any public owner of any portion of a new electric transmission project pursuant to this act, including a state agency designated by the Governor, the Department of Water Resources, the California Consumer Power and Conservation Financing Authority, local public agencies, tribal organizations, or joint powers authorities.63049.82. (a) The bank shall administer the Public Transmission Financing Program to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.(b) (1) The bank shall respond to requests from public transmission sponsors to evaluate, and consult on, the financing of proposed eligible transmission projects.(2) Consultation on, or evaluation of, an eligible transmission project by the bank shall not indicate the banks approval.(3) The bank shall consider the credit and financial aspects of the eligible transmission project before determining whether to approve and finance the eligible transmission project.(c) (1) The bank is hereby authorized and empowered to provide financial assistance under the Public Transmission Financing Program to any public transmission sponsor or participating party either directly or to a lending or financial institution, in connection with the financing or refinancing of a transmission project owned or financed, in whole or in part, by a public transmission sponsor, in accordance with an agreement or agreements, between the bank and the public transmission sponsor either as a sole lender or in participation or syndication with other lenders.(2) The financial assistance may include direct funding, debt financing, and the issuance of revenue bonds pursuant to subdivision (e).(d) (1) The bank may issue taxable or tax-exempt bonds pursuant to Chapter 5 (commencing with Section 63070) and may loan the proceeds thereof to a public transmission sponsor and deposit the proceeds into the Public Transmission Financing Fund or use the proceeds to refund bonds previously issued under this article.(2) Bond proceeds may also be used to fund necessary reserves, capitalized interest, credit enhancement costs, or costs of issuance.(e) (1) Notwithstanding this division, the financing of costs incurred by a public transmission sponsor for a transmission project shall be deemed to be in the public interest and eligible for financing by the bank or by a special purpose trust established pursuant to this division.(2) The financing shall be treated as financing of an economic development facility for purposes of this division, except that Article 3 (commencing with Section 63040) and Article 5 (commencing with Section 63043) shall not apply to any such financing.(f) Bonds or other indebtedness issued pursuant to this article shall not be deemed to constitute a debt or liability of the state or of any political subdivision of the state other than the bank or any special purpose trust established pursuant to this division, but shall be payable solely from the funds of, and any security provided by, the public transmission sponsor.(g) The bank shall not provide financing or other support for eligible transmission projects that recover costs through an authorized revenue requirement approved by the Federal Energy Regulatory Commission unless the public transmission sponsor makes either of the following commitments:(1) (A) The public transmission sponsor requests a revenue requirement at the Federal Energy Regulatory Commission that only reflects its actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the transmission access charge.(B) In the event that the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the public transmission sponsor, the requirements of paragraph (2) shall apply.(2) Any revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the eligible transmission project, eligible transmission project overhead and administration, wildfire liability, and costs related to operations and maintenance shall be refunded through either the transmission access charge or a bill credit to retail customers.(h) The bank shall not finance an eligible transmission project unless the public transmission sponsor has entered into a project labor agreement that, at a minimum, meets the requirements of Section 2500 of the Public Contract Code and includes all of the following:(1) Provisions requiring payment of prevailing wages, in accordance with Article 1 (commencing with Section 1720) of Chapter 1 of Part 7 of Division 2 of the Labor Code, to all construction workers employed in the construction of the project and for enforcement of that obligation through an arbitration procedure.(2) Targeted hiring provisions, including a targeted hiring plan, on a craft-by-craft basis to address job access for local, disadvantaged, or underrepresented workers, as defined by a relevant local agency.(3) Apprenticeship utilization provisions that commit all parties to increasing the share of work performed by state-registered apprentices above the state-mandated minimum ratio required in Section 1777.5 of the Labor Code.(4) Apprenticeship utilization provisions that commit all parties to hiring and retaining a certain percentage of state-registered apprentices that have completed the Multi-Craft Core preapprenticeship training curriculum referenced in subdivision (t) of Section 14005 of the Unemployment Insurance Code.(5) Consultation on a potential transmission project does not constitute approval of that project by the Public Utilities Commission or the State Energy Resources Conservation and Development Commission under their decisionmaking authority, if that authority exists.63049.83. (a) There is hereby created the Public Transmission Financing Fund in the State Treasury for the purpose of financing projects pursuant to this section and Section 94520 of the Public Resources Code.(b) Any eligible entity may access the Public Transmission Financing Fund.(c) The Public Transmission Financing Fund shall be eligible to receive funding from other sources determined by the Legislature.(d) Revenues of, and all other income collected by, eligible entities to support the Public Transmission Financing Program shall be deposited into the Public Transmission Financing Fund.(e) Proceeds of revenue bonds issued pursuant to this division shall be deposited into the Public Transmission Financing Fund.(f) Eligible entities may use moneys in the Public Transmission Financing Fund for any of the following purposes:(1) Supporting the costs of eligible transmission projects incurred by public transmission sponsors.(2) Costs incurred by eligible entities pursuant to this section for their operations and administration.(3) Debt service and other costs associated with bonds issued pursuant to this section.(4) Administrative costs incurred in implementing this article in an amount determined by the California Consumer Power and Conservation Financing Authority and approved by the Department of Finance.(5) Other costs to further the purpose of this article.(g) Eligible entities receiving any moneys from the fund shall comply with the requirements of subdivisions (h) and (i) of Section 63049.82.(h) (1) Eligible entities may pledge any or all of the moneys in the Public Transmission Financing Fund as security for payment of the principal of, and interest on, any particular issuance of bonds issued for the purposes of this article.(2) The bank may use any or all of the moneys in the Public Transmission Financing Fund to retain or purchase for retention or sale, subordinated bonds issued by the bank, by a special purpose trust, or by a sponsor, all in connection with the purposes of this article.(i) (1) Notwithstanding Section 13340, moneys, except as provided in paragraphs (2) and (3), in the Public Transmission Financing Fund are continuously appropriated, without regard to fiscal year, for the support of eligible entities and shall be available for expenditure for the purposes as stated in this article.(2) Moneys in the Public Transmission Financing Fund received pursuant to a federal appropriation are available for expenditure only upon appropriation by the Legislature.(3) Moneys in the Public Transmission Financing Fund shall be available for expenditure to support administrative costs only upon appropriation by the Legislature.
Article 11.5. Public Transmission Financing63049.80. (a) It is the intent of the Legislature to enact subsequent legislation that would appropriate three hundred twenty-five million dollars ($325,000,000) from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund established pursuant to Section 90500 of the Public Resources Code to the Public Transmission Financing Fund established pursuant to Section 63049.83.(b) The moneys in the Public Transmission Financing Fund shall be used to support public financing of transmission projects that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects.63049.81. For purposes of this article, the following definitions apply:(a) Bank means the California Infrastructure and Economic Development Bank.(b) Electrical corporation has the same meaning as defined in Section 218 of the Public Utilities Code.(c) Eligible entities means entities able to access the Public Transmission Financing Fund, including the bank, public transmission sponsors, or any other entity selected by the Legislature.(d) Eligible transmission project means any electric transmission project where an electrical corporation or local publicly owned electric utility has the primary responsibility for construction and ownership.(e) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.(f) Participating party has the same meaning as defined in subdivision (o) of Section 63010.(g) Public Transmission Financing Program means the program of that name to administer the Public Transmission Financing Fund and to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.(h) Public transmission sponsor means any public owner of any portion of a new electric transmission project pursuant to this act, including a state agency designated by the Governor, the Department of Water Resources, the California Consumer Power and Conservation Financing Authority, local public agencies, tribal organizations, or joint powers authorities.63049.82. (a) The bank shall administer the Public Transmission Financing Program to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.(b) (1) The bank shall respond to requests from public transmission sponsors to evaluate, and consult on, the financing of proposed eligible transmission projects.(2) Consultation on, or evaluation of, an eligible transmission project by the bank shall not indicate the banks approval.(3) The bank shall consider the credit and financial aspects of the eligible transmission project before determining whether to approve and finance the eligible transmission project.(c) (1) The bank is hereby authorized and empowered to provide financial assistance under the Public Transmission Financing Program to any public transmission sponsor or participating party either directly or to a lending or financial institution, in connection with the financing or refinancing of a transmission project owned or financed, in whole or in part, by a public transmission sponsor, in accordance with an agreement or agreements, between the bank and the public transmission sponsor either as a sole lender or in participation or syndication with other lenders.(2) The financial assistance may include direct funding, debt financing, and the issuance of revenue bonds pursuant to subdivision (e).(d) (1) The bank may issue taxable or tax-exempt bonds pursuant to Chapter 5 (commencing with Section 63070) and may loan the proceeds thereof to a public transmission sponsor and deposit the proceeds into the Public Transmission Financing Fund or use the proceeds to refund bonds previously issued under this article.(2) Bond proceeds may also be used to fund necessary reserves, capitalized interest, credit enhancement costs, or costs of issuance.(e) (1) Notwithstanding this division, the financing of costs incurred by a public transmission sponsor for a transmission project shall be deemed to be in the public interest and eligible for financing by the bank or by a special purpose trust established pursuant to this division.(2) The financing shall be treated as financing of an economic development facility for purposes of this division, except that Article 3 (commencing with Section 63040) and Article 5 (commencing with Section 63043) shall not apply to any such financing.(f) Bonds or other indebtedness issued pursuant to this article shall not be deemed to constitute a debt or liability of the state or of any political subdivision of the state other than the bank or any special purpose trust established pursuant to this division, but shall be payable solely from the funds of, and any security provided by, the public transmission sponsor.(g) The bank shall not provide financing or other support for eligible transmission projects that recover costs through an authorized revenue requirement approved by the Federal Energy Regulatory Commission unless the public transmission sponsor makes either of the following commitments:(1) (A) The public transmission sponsor requests a revenue requirement at the Federal Energy Regulatory Commission that only reflects its actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the transmission access charge.(B) In the event that the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the public transmission sponsor, the requirements of paragraph (2) shall apply.(2) Any revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the eligible transmission project, eligible transmission project overhead and administration, wildfire liability, and costs related to operations and maintenance shall be refunded through either the transmission access charge or a bill credit to retail customers.(h) The bank shall not finance an eligible transmission project unless the public transmission sponsor has entered into a project labor agreement that, at a minimum, meets the requirements of Section 2500 of the Public Contract Code and includes all of the following:(1) Provisions requiring payment of prevailing wages, in accordance with Article 1 (commencing with Section 1720) of Chapter 1 of Part 7 of Division 2 of the Labor Code, to all construction workers employed in the construction of the project and for enforcement of that obligation through an arbitration procedure.(2) Targeted hiring provisions, including a targeted hiring plan, on a craft-by-craft basis to address job access for local, disadvantaged, or underrepresented workers, as defined by a relevant local agency.(3) Apprenticeship utilization provisions that commit all parties to increasing the share of work performed by state-registered apprentices above the state-mandated minimum ratio required in Section 1777.5 of the Labor Code.(4) Apprenticeship utilization provisions that commit all parties to hiring and retaining a certain percentage of state-registered apprentices that have completed the Multi-Craft Core preapprenticeship training curriculum referenced in subdivision (t) of Section 14005 of the Unemployment Insurance Code.(5) Consultation on a potential transmission project does not constitute approval of that project by the Public Utilities Commission or the State Energy Resources Conservation and Development Commission under their decisionmaking authority, if that authority exists.63049.83. (a) There is hereby created the Public Transmission Financing Fund in the State Treasury for the purpose of financing projects pursuant to this section and Section 94520 of the Public Resources Code.(b) Any eligible entity may access the Public Transmission Financing Fund.(c) The Public Transmission Financing Fund shall be eligible to receive funding from other sources determined by the Legislature.(d) Revenues of, and all other income collected by, eligible entities to support the Public Transmission Financing Program shall be deposited into the Public Transmission Financing Fund.(e) Proceeds of revenue bonds issued pursuant to this division shall be deposited into the Public Transmission Financing Fund.(f) Eligible entities may use moneys in the Public Transmission Financing Fund for any of the following purposes:(1) Supporting the costs of eligible transmission projects incurred by public transmission sponsors.(2) Costs incurred by eligible entities pursuant to this section for their operations and administration.(3) Debt service and other costs associated with bonds issued pursuant to this section.(4) Administrative costs incurred in implementing this article in an amount determined by the California Consumer Power and Conservation Financing Authority and approved by the Department of Finance.(5) Other costs to further the purpose of this article.(g) Eligible entities receiving any moneys from the fund shall comply with the requirements of subdivisions (h) and (i) of Section 63049.82.(h) (1) Eligible entities may pledge any or all of the moneys in the Public Transmission Financing Fund as security for payment of the principal of, and interest on, any particular issuance of bonds issued for the purposes of this article.(2) The bank may use any or all of the moneys in the Public Transmission Financing Fund to retain or purchase for retention or sale, subordinated bonds issued by the bank, by a special purpose trust, or by a sponsor, all in connection with the purposes of this article.(i) (1) Notwithstanding Section 13340, moneys, except as provided in paragraphs (2) and (3), in the Public Transmission Financing Fund are continuously appropriated, without regard to fiscal year, for the support of eligible entities and shall be available for expenditure for the purposes as stated in this article.(2) Moneys in the Public Transmission Financing Fund received pursuant to a federal appropriation are available for expenditure only upon appropriation by the Legislature.(3) Moneys in the Public Transmission Financing Fund shall be available for expenditure to support administrative costs only upon appropriation by the Legislature.
Article 11.5. Public Transmission Financing
Article 11.5. Public Transmission Financing
##### Article 11.5. Public Transmission Financing
63049.80. (a) It is the intent of the Legislature to enact subsequent legislation that would appropriate three hundred twenty-five million dollars ($325,000,000) from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund established pursuant to Section 90500 of the Public Resources Code to the Public Transmission Financing Fund established pursuant to Section 63049.83.(b) The moneys in the Public Transmission Financing Fund shall be used to support public financing of transmission projects that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects.
63049.80. (a) It is the intent of the Legislature to enact subsequent legislation that would appropriate three hundred twenty-five million dollars ($325,000,000) from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Fund established pursuant to Section 90500 of the Public Resources Code to the Public Transmission Financing Fund established pursuant to Section 63049.83.
###### 63049.80.
(b) The moneys in the Public Transmission Financing Fund shall be used to support public financing of transmission projects that are necessary to meet the states clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects.
63049.81. For purposes of this article, the following definitions apply:(a) Bank means the California Infrastructure and Economic Development Bank.(b) Electrical corporation has the same meaning as defined in Section 218 of the Public Utilities Code.(c) Eligible entities means entities able to access the Public Transmission Financing Fund, including the bank, public transmission sponsors, or any other entity selected by the Legislature.(d) Eligible transmission project means any electric transmission project where an electrical corporation or local publicly owned electric utility has the primary responsibility for construction and ownership.(e) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.(f) Participating party has the same meaning as defined in subdivision (o) of Section 63010.(g) Public Transmission Financing Program means the program of that name to administer the Public Transmission Financing Fund and to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.(h) Public transmission sponsor means any public owner of any portion of a new electric transmission project pursuant to this act, including a state agency designated by the Governor, the Department of Water Resources, the California Consumer Power and Conservation Financing Authority, local public agencies, tribal organizations, or joint powers authorities.
63049.81. For purposes of this article, the following definitions apply:
###### 63049.81.
(a) Bank means the California Infrastructure and Economic Development Bank.
(b) Electrical corporation has the same meaning as defined in Section 218 of the Public Utilities Code.
(c) Eligible entities means entities able to access the Public Transmission Financing Fund, including the bank, public transmission sponsors, or any other entity selected by the Legislature.
(d) Eligible transmission project means any electric transmission project where an electrical corporation or local publicly owned electric utility has the primary responsibility for construction and ownership.
(e) Local publicly owned electric utility has the same meaning as defined in Section 224.3 of the Public Utilities Code.
(f) Participating party has the same meaning as defined in subdivision (o) of Section 63010.
(g) Public Transmission Financing Program means the program of that name to administer the Public Transmission Financing Fund and to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.
(h) Public transmission sponsor means any public owner of any portion of a new electric transmission project pursuant to this act, including a state agency designated by the Governor, the Department of Water Resources, the California Consumer Power and Conservation Financing Authority, local public agencies, tribal organizations, or joint powers authorities.
63049.82. (a) The bank shall administer the Public Transmission Financing Program to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.(b) (1) The bank shall respond to requests from public transmission sponsors to evaluate, and consult on, the financing of proposed eligible transmission projects.(2) Consultation on, or evaluation of, an eligible transmission project by the bank shall not indicate the banks approval.(3) The bank shall consider the credit and financial aspects of the eligible transmission project before determining whether to approve and finance the eligible transmission project.(c) (1) The bank is hereby authorized and empowered to provide financial assistance under the Public Transmission Financing Program to any public transmission sponsor or participating party either directly or to a lending or financial institution, in connection with the financing or refinancing of a transmission project owned or financed, in whole or in part, by a public transmission sponsor, in accordance with an agreement or agreements, between the bank and the public transmission sponsor either as a sole lender or in participation or syndication with other lenders.(2) The financial assistance may include direct funding, debt financing, and the issuance of revenue bonds pursuant to subdivision (e).(d) (1) The bank may issue taxable or tax-exempt bonds pursuant to Chapter 5 (commencing with Section 63070) and may loan the proceeds thereof to a public transmission sponsor and deposit the proceeds into the Public Transmission Financing Fund or use the proceeds to refund bonds previously issued under this article.(2) Bond proceeds may also be used to fund necessary reserves, capitalized interest, credit enhancement costs, or costs of issuance.(e) (1) Notwithstanding this division, the financing of costs incurred by a public transmission sponsor for a transmission project shall be deemed to be in the public interest and eligible for financing by the bank or by a special purpose trust established pursuant to this division.(2) The financing shall be treated as financing of an economic development facility for purposes of this division, except that Article 3 (commencing with Section 63040) and Article 5 (commencing with Section 63043) shall not apply to any such financing.(f) Bonds or other indebtedness issued pursuant to this article shall not be deemed to constitute a debt or liability of the state or of any political subdivision of the state other than the bank or any special purpose trust established pursuant to this division, but shall be payable solely from the funds of, and any security provided by, the public transmission sponsor.(g) The bank shall not provide financing or other support for eligible transmission projects that recover costs through an authorized revenue requirement approved by the Federal Energy Regulatory Commission unless the public transmission sponsor makes either of the following commitments:(1) (A) The public transmission sponsor requests a revenue requirement at the Federal Energy Regulatory Commission that only reflects its actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the transmission access charge.(B) In the event that the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the public transmission sponsor, the requirements of paragraph (2) shall apply.(2) Any revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the eligible transmission project, eligible transmission project overhead and administration, wildfire liability, and costs related to operations and maintenance shall be refunded through either the transmission access charge or a bill credit to retail customers.(h) The bank shall not finance an eligible transmission project unless the public transmission sponsor has entered into a project labor agreement that, at a minimum, meets the requirements of Section 2500 of the Public Contract Code and includes all of the following:(1) Provisions requiring payment of prevailing wages, in accordance with Article 1 (commencing with Section 1720) of Chapter 1 of Part 7 of Division 2 of the Labor Code, to all construction workers employed in the construction of the project and for enforcement of that obligation through an arbitration procedure.(2) Targeted hiring provisions, including a targeted hiring plan, on a craft-by-craft basis to address job access for local, disadvantaged, or underrepresented workers, as defined by a relevant local agency.(3) Apprenticeship utilization provisions that commit all parties to increasing the share of work performed by state-registered apprentices above the state-mandated minimum ratio required in Section 1777.5 of the Labor Code.(4) Apprenticeship utilization provisions that commit all parties to hiring and retaining a certain percentage of state-registered apprentices that have completed the Multi-Craft Core preapprenticeship training curriculum referenced in subdivision (t) of Section 14005 of the Unemployment Insurance Code.(5) Consultation on a potential transmission project does not constitute approval of that project by the Public Utilities Commission or the State Energy Resources Conservation and Development Commission under their decisionmaking authority, if that authority exists.
63049.82. (a) The bank shall administer the Public Transmission Financing Program to provide financial assistance and financing for eligible transmission projects sponsored or owned, in whole or in part, by a public transmission sponsor.
###### 63049.82.
(b) (1) The bank shall respond to requests from public transmission sponsors to evaluate, and consult on, the financing of proposed eligible transmission projects.
(2) Consultation on, or evaluation of, an eligible transmission project by the bank shall not indicate the banks approval.
(3) The bank shall consider the credit and financial aspects of the eligible transmission project before determining whether to approve and finance the eligible transmission project.
(c) (1) The bank is hereby authorized and empowered to provide financial assistance under the Public Transmission Financing Program to any public transmission sponsor or participating party either directly or to a lending or financial institution, in connection with the financing or refinancing of a transmission project owned or financed, in whole or in part, by a public transmission sponsor, in accordance with an agreement or agreements, between the bank and the public transmission sponsor either as a sole lender or in participation or syndication with other lenders.
(2) The financial assistance may include direct funding, debt financing, and the issuance of revenue bonds pursuant to subdivision (e).
(d) (1) The bank may issue taxable or tax-exempt bonds pursuant to Chapter 5 (commencing with Section 63070) and may loan the proceeds thereof to a public transmission sponsor and deposit the proceeds into the Public Transmission Financing Fund or use the proceeds to refund bonds previously issued under this article.
(2) Bond proceeds may also be used to fund necessary reserves, capitalized interest, credit enhancement costs, or costs of issuance.
(e) (1) Notwithstanding this division, the financing of costs incurred by a public transmission sponsor for a transmission project shall be deemed to be in the public interest and eligible for financing by the bank or by a special purpose trust established pursuant to this division.
(2) The financing shall be treated as financing of an economic development facility for purposes of this division, except that Article 3 (commencing with Section 63040) and Article 5 (commencing with Section 63043) shall not apply to any such financing.
(f) Bonds or other indebtedness issued pursuant to this article shall not be deemed to constitute a debt or liability of the state or of any political subdivision of the state other than the bank or any special purpose trust established pursuant to this division, but shall be payable solely from the funds of, and any security provided by, the public transmission sponsor.
(g) The bank shall not provide financing or other support for eligible transmission projects that recover costs through an authorized revenue requirement approved by the Federal Energy Regulatory Commission unless the public transmission sponsor makes either of the following commitments:
(1) (A) The public transmission sponsor requests a revenue requirement at the Federal Energy Regulatory Commission that only reflects its actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the transmission access charge.
(B) In the event that the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the public transmission sponsor, the requirements of paragraph (2) shall apply.
(2) Any revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the eligible transmission project, eligible transmission project overhead and administration, wildfire liability, and costs related to operations and maintenance shall be refunded through either the transmission access charge or a bill credit to retail customers.
(h) The bank shall not finance an eligible transmission project unless the public transmission sponsor has entered into a project labor agreement that, at a minimum, meets the requirements of Section 2500 of the Public Contract Code and includes all of the following:
(1) Provisions requiring payment of prevailing wages, in accordance with Article 1 (commencing with Section 1720) of Chapter 1 of Part 7 of Division 2 of the Labor Code, to all construction workers employed in the construction of the project and for enforcement of that obligation through an arbitration procedure.
(2) Targeted hiring provisions, including a targeted hiring plan, on a craft-by-craft basis to address job access for local, disadvantaged, or underrepresented workers, as defined by a relevant local agency.
(3) Apprenticeship utilization provisions that commit all parties to increasing the share of work performed by state-registered apprentices above the state-mandated minimum ratio required in Section 1777.5 of the Labor Code.
(4) Apprenticeship utilization provisions that commit all parties to hiring and retaining a certain percentage of state-registered apprentices that have completed the Multi-Craft Core preapprenticeship training curriculum referenced in subdivision (t) of Section 14005 of the Unemployment Insurance Code.
(5) Consultation on a potential transmission project does not constitute approval of that project by the Public Utilities Commission or the State Energy Resources Conservation and Development Commission under their decisionmaking authority, if that authority exists.
63049.83. (a) There is hereby created the Public Transmission Financing Fund in the State Treasury for the purpose of financing projects pursuant to this section and Section 94520 of the Public Resources Code.(b) Any eligible entity may access the Public Transmission Financing Fund.(c) The Public Transmission Financing Fund shall be eligible to receive funding from other sources determined by the Legislature.(d) Revenues of, and all other income collected by, eligible entities to support the Public Transmission Financing Program shall be deposited into the Public Transmission Financing Fund.(e) Proceeds of revenue bonds issued pursuant to this division shall be deposited into the Public Transmission Financing Fund.(f) Eligible entities may use moneys in the Public Transmission Financing Fund for any of the following purposes:(1) Supporting the costs of eligible transmission projects incurred by public transmission sponsors.(2) Costs incurred by eligible entities pursuant to this section for their operations and administration.(3) Debt service and other costs associated with bonds issued pursuant to this section.(4) Administrative costs incurred in implementing this article in an amount determined by the California Consumer Power and Conservation Financing Authority and approved by the Department of Finance.(5) Other costs to further the purpose of this article.(g) Eligible entities receiving any moneys from the fund shall comply with the requirements of subdivisions (h) and (i) of Section 63049.82.(h) (1) Eligible entities may pledge any or all of the moneys in the Public Transmission Financing Fund as security for payment of the principal of, and interest on, any particular issuance of bonds issued for the purposes of this article.(2) The bank may use any or all of the moneys in the Public Transmission Financing Fund to retain or purchase for retention or sale, subordinated bonds issued by the bank, by a special purpose trust, or by a sponsor, all in connection with the purposes of this article.(i) (1) Notwithstanding Section 13340, moneys, except as provided in paragraphs (2) and (3), in the Public Transmission Financing Fund are continuously appropriated, without regard to fiscal year, for the support of eligible entities and shall be available for expenditure for the purposes as stated in this article.(2) Moneys in the Public Transmission Financing Fund received pursuant to a federal appropriation are available for expenditure only upon appropriation by the Legislature.(3) Moneys in the Public Transmission Financing Fund shall be available for expenditure to support administrative costs only upon appropriation by the Legislature.
63049.83. (a) There is hereby created the Public Transmission Financing Fund in the State Treasury for the purpose of financing projects pursuant to this section and Section 94520 of the Public Resources Code.
###### 63049.83.
(b) Any eligible entity may access the Public Transmission Financing Fund.
(c) The Public Transmission Financing Fund shall be eligible to receive funding from other sources determined by the Legislature.
(d) Revenues of, and all other income collected by, eligible entities to support the Public Transmission Financing Program shall be deposited into the Public Transmission Financing Fund.
(e) Proceeds of revenue bonds issued pursuant to this division shall be deposited into the Public Transmission Financing Fund.
(f) Eligible entities may use moneys in the Public Transmission Financing Fund for any of the following purposes:
(1) Supporting the costs of eligible transmission projects incurred by public transmission sponsors.
(2) Costs incurred by eligible entities pursuant to this section for their operations and administration.
(3) Debt service and other costs associated with bonds issued pursuant to this section.
(4) Administrative costs incurred in implementing this article in an amount determined by the California Consumer Power and Conservation Financing Authority and approved by the Department of Finance.
(5) Other costs to further the purpose of this article.
(g) Eligible entities receiving any moneys from the fund shall comply with the requirements of subdivisions (h) and (i) of Section 63049.82.
(h) (1) Eligible entities may pledge any or all of the moneys in the Public Transmission Financing Fund as security for payment of the principal of, and interest on, any particular issuance of bonds issued for the purposes of this article.
(2) The bank may use any or all of the moneys in the Public Transmission Financing Fund to retain or purchase for retention or sale, subordinated bonds issued by the bank, by a special purpose trust, or by a sponsor, all in connection with the purposes of this article.
(i) (1) Notwithstanding Section 13340, moneys, except as provided in paragraphs (2) and (3), in the Public Transmission Financing Fund are continuously appropriated, without regard to fiscal year, for the support of eligible entities and shall be available for expenditure for the purposes as stated in this article.
(2) Moneys in the Public Transmission Financing Fund received pursuant to a federal appropriation are available for expenditure only upon appropriation by the Legislature.
(3) Moneys in the Public Transmission Financing Fund shall be available for expenditure to support administrative costs only upon appropriation by the Legislature.
SEC. 4. Section 748 is added to the Public Utilities Code, to read:748. For any retail bill credits provided to customers of an electrical corporation by a public transmission sponsor pursuant to Article 11.5 (commencing with Section 63049.80) of Chapter 2 of Division 1 of Title 6.7 of the Government Code or subdivision (a) of Section 3441.7, the commission shall require the retail bill credits to be displayed as a separate line item on each customer bill indicating the source of the retail bill credit.
SEC. 4. Section 748 is added to the Public Utilities Code, to read:
### SEC. 4.
748. For any retail bill credits provided to customers of an electrical corporation by a public transmission sponsor pursuant to Article 11.5 (commencing with Section 63049.80) of Chapter 2 of Division 1 of Title 6.7 of the Government Code or subdivision (a) of Section 3441.7, the commission shall require the retail bill credits to be displayed as a separate line item on each customer bill indicating the source of the retail bill credit.
748. For any retail bill credits provided to customers of an electrical corporation by a public transmission sponsor pursuant to Article 11.5 (commencing with Section 63049.80) of Chapter 2 of Division 1 of Title 6.7 of the Government Code or subdivision (a) of Section 3441.7, the commission shall require the retail bill credits to be displayed as a separate line item on each customer bill indicating the source of the retail bill credit.
748. For any retail bill credits provided to customers of an electrical corporation by a public transmission sponsor pursuant to Article 11.5 (commencing with Section 63049.80) of Chapter 2 of Division 1 of Title 6.7 of the Government Code or subdivision (a) of Section 3441.7, the commission shall require the retail bill credits to be displayed as a separate line item on each customer bill indicating the source of the retail bill credit.
748. For any retail bill credits provided to customers of an electrical corporation by a public transmission sponsor pursuant to Article 11.5 (commencing with Section 63049.80) of Chapter 2 of Division 1 of Title 6.7 of the Government Code or subdivision (a) of Section 3441.7, the commission shall require the retail bill credits to be displayed as a separate line item on each customer bill indicating the source of the retail bill credit.
###### 748.
SEC. 5. Section 3310 of the Public Utilities Code is amended to read:3310. The authority may only exercise its powers pursuant to Article 4 (commencing with Section 3340) of Chapter 3 for the following purposes:(a) Establish, finance, purchase, lease, own, operate, acquire, or construct generating facilities and other projects and enterprises, on its own or through agreements with public and private third parties or joint ventures with public or private entities, or provide financial assistance for projects or programs by participating parties, to supplement private and public sector power supplies, taking into account generation facilities in operation or under development as of the effective date of this section, August 13, 2001, and to ensure a sufficient and reliable supply of electricity for Californias consumers at just and reasonable rates.(b) Sponsor, finance, purchase, lease, own, operate, acquire, or construct a partnership between a public transmission sponsor and an electrical corporation involving shared ownership and financing of a new transmission project that may include an upgrade or improvement to an existing transmission asset or new project located on a right-of-way owned by the electrical corporation.(b)(c) Finance programs, administered by the Energy Commission, the commission, and other approved participating parties for consumers and businesses to invest in cost-effective energy efficient appliances, renewable energy projects, and other programs that will reduce the demand for energy in California.(c)(d) Finance natural gas transportation and storage projects under Article 7 (commencing with Section 3368) of Chapter 3.(d)(e) Achieve an adequate energy reserve capacity in California within five years of the effective date of this division. August 13, 2001.(e)(f) Provide financing for owners of aged, inefficient, electric powerplants to perform necessary retrofits to improve the efficiency and environmental performances of those powerplants.
SEC. 5. Section 3310 of the Public Utilities Code is amended to read:
### SEC. 5.
3310. The authority may only exercise its powers pursuant to Article 4 (commencing with Section 3340) of Chapter 3 for the following purposes:(a) Establish, finance, purchase, lease, own, operate, acquire, or construct generating facilities and other projects and enterprises, on its own or through agreements with public and private third parties or joint ventures with public or private entities, or provide financial assistance for projects or programs by participating parties, to supplement private and public sector power supplies, taking into account generation facilities in operation or under development as of the effective date of this section, August 13, 2001, and to ensure a sufficient and reliable supply of electricity for Californias consumers at just and reasonable rates.(b) Sponsor, finance, purchase, lease, own, operate, acquire, or construct a partnership between a public transmission sponsor and an electrical corporation involving shared ownership and financing of a new transmission project that may include an upgrade or improvement to an existing transmission asset or new project located on a right-of-way owned by the electrical corporation.(b)(c) Finance programs, administered by the Energy Commission, the commission, and other approved participating parties for consumers and businesses to invest in cost-effective energy efficient appliances, renewable energy projects, and other programs that will reduce the demand for energy in California.(c)(d) Finance natural gas transportation and storage projects under Article 7 (commencing with Section 3368) of Chapter 3.(d)(e) Achieve an adequate energy reserve capacity in California within five years of the effective date of this division. August 13, 2001.(e)(f) Provide financing for owners of aged, inefficient, electric powerplants to perform necessary retrofits to improve the efficiency and environmental performances of those powerplants.
3310. The authority may only exercise its powers pursuant to Article 4 (commencing with Section 3340) of Chapter 3 for the following purposes:(a) Establish, finance, purchase, lease, own, operate, acquire, or construct generating facilities and other projects and enterprises, on its own or through agreements with public and private third parties or joint ventures with public or private entities, or provide financial assistance for projects or programs by participating parties, to supplement private and public sector power supplies, taking into account generation facilities in operation or under development as of the effective date of this section, August 13, 2001, and to ensure a sufficient and reliable supply of electricity for Californias consumers at just and reasonable rates.(b) Sponsor, finance, purchase, lease, own, operate, acquire, or construct a partnership between a public transmission sponsor and an electrical corporation involving shared ownership and financing of a new transmission project that may include an upgrade or improvement to an existing transmission asset or new project located on a right-of-way owned by the electrical corporation.(b)(c) Finance programs, administered by the Energy Commission, the commission, and other approved participating parties for consumers and businesses to invest in cost-effective energy efficient appliances, renewable energy projects, and other programs that will reduce the demand for energy in California.(c)(d) Finance natural gas transportation and storage projects under Article 7 (commencing with Section 3368) of Chapter 3.(d)(e) Achieve an adequate energy reserve capacity in California within five years of the effective date of this division. August 13, 2001.(e)(f) Provide financing for owners of aged, inefficient, electric powerplants to perform necessary retrofits to improve the efficiency and environmental performances of those powerplants.
3310. The authority may only exercise its powers pursuant to Article 4 (commencing with Section 3340) of Chapter 3 for the following purposes:(a) Establish, finance, purchase, lease, own, operate, acquire, or construct generating facilities and other projects and enterprises, on its own or through agreements with public and private third parties or joint ventures with public or private entities, or provide financial assistance for projects or programs by participating parties, to supplement private and public sector power supplies, taking into account generation facilities in operation or under development as of the effective date of this section, August 13, 2001, and to ensure a sufficient and reliable supply of electricity for Californias consumers at just and reasonable rates.(b) Sponsor, finance, purchase, lease, own, operate, acquire, or construct a partnership between a public transmission sponsor and an electrical corporation involving shared ownership and financing of a new transmission project that may include an upgrade or improvement to an existing transmission asset or new project located on a right-of-way owned by the electrical corporation.(b)(c) Finance programs, administered by the Energy Commission, the commission, and other approved participating parties for consumers and businesses to invest in cost-effective energy efficient appliances, renewable energy projects, and other programs that will reduce the demand for energy in California.(c)(d) Finance natural gas transportation and storage projects under Article 7 (commencing with Section 3368) of Chapter 3.(d)(e) Achieve an adequate energy reserve capacity in California within five years of the effective date of this division. August 13, 2001.(e)(f) Provide financing for owners of aged, inefficient, electric powerplants to perform necessary retrofits to improve the efficiency and environmental performances of those powerplants.
3310. The authority may only exercise its powers pursuant to Article 4 (commencing with Section 3340) of Chapter 3 for the following purposes:
###### 3310.
(a) Establish, finance, purchase, lease, own, operate, acquire, or construct generating facilities and other projects and enterprises, on its own or through agreements with public and private third parties or joint ventures with public or private entities, or provide financial assistance for projects or programs by participating parties, to supplement private and public sector power supplies, taking into account generation facilities in operation or under development as of the effective date of this section, August 13, 2001, and to ensure a sufficient and reliable supply of electricity for Californias consumers at just and reasonable rates.
(b) Sponsor, finance, purchase, lease, own, operate, acquire, or construct a partnership between a public transmission sponsor and an electrical corporation involving shared ownership and financing of a new transmission project that may include an upgrade or improvement to an existing transmission asset or new project located on a right-of-way owned by the electrical corporation.
(b)
(c) Finance programs, administered by the Energy Commission, the commission, and other approved participating parties for consumers and businesses to invest in cost-effective energy efficient appliances, renewable energy projects, and other programs that will reduce the demand for energy in California.
(c)
(d) Finance natural gas transportation and storage projects under Article 7 (commencing with Section 3368) of Chapter 3.
(d)
(e) Achieve an adequate energy reserve capacity in California within five years of the effective date of this division. August 13, 2001.
(e)
(f) Provide financing for owners of aged, inefficient, electric powerplants to perform necessary retrofits to improve the efficiency and environmental performances of those powerplants.
SEC. 6. Section 3341.7 is added to the Public Utilities Code, to read:3341.7. (a) For purposes of a transmission project described in subdivision (b) of Section 3310, the authority may do either of the following:(1) Seek a revenue requirement from the Federal Energy Regulatory Commission for a transmission project that will be operated by the Independent System Operator. The authority shall ensure that the revenue requirement satisfies one of the following conditions:(A) The revenue requirement requested from the Federal Energy Regulatory Commission only reflects the projects actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the Transmission Access Charge. If the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the authority, the requirements of subparagraph (B) shall apply.(B) Revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the project, project overhead and administration, wildfire liability, and costs related to operations and maintenance will be refunded through either the Transmission Access Charge or a bill credit to retail customers.(2) Charge private generators, subscribers, and customers contracting for capacity on a new transmission project, consistent with subdivision (b) of Section 3310.(b) The authority may enter into partnerships with electrical corporations or other private entities under which the authority would purchase a long-term entitlement to a portion of the transmission asset that establishes eligibility to receive revenues from the Independent System Operator.
SEC. 6. Section 3341.7 is added to the Public Utilities Code, to read:
### SEC. 6.
3341.7. (a) For purposes of a transmission project described in subdivision (b) of Section 3310, the authority may do either of the following:(1) Seek a revenue requirement from the Federal Energy Regulatory Commission for a transmission project that will be operated by the Independent System Operator. The authority shall ensure that the revenue requirement satisfies one of the following conditions:(A) The revenue requirement requested from the Federal Energy Regulatory Commission only reflects the projects actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the Transmission Access Charge. If the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the authority, the requirements of subparagraph (B) shall apply.(B) Revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the project, project overhead and administration, wildfire liability, and costs related to operations and maintenance will be refunded through either the Transmission Access Charge or a bill credit to retail customers.(2) Charge private generators, subscribers, and customers contracting for capacity on a new transmission project, consistent with subdivision (b) of Section 3310.(b) The authority may enter into partnerships with electrical corporations or other private entities under which the authority would purchase a long-term entitlement to a portion of the transmission asset that establishes eligibility to receive revenues from the Independent System Operator.
3341.7. (a) For purposes of a transmission project described in subdivision (b) of Section 3310, the authority may do either of the following:(1) Seek a revenue requirement from the Federal Energy Regulatory Commission for a transmission project that will be operated by the Independent System Operator. The authority shall ensure that the revenue requirement satisfies one of the following conditions:(A) The revenue requirement requested from the Federal Energy Regulatory Commission only reflects the projects actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the Transmission Access Charge. If the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the authority, the requirements of subparagraph (B) shall apply.(B) Revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the project, project overhead and administration, wildfire liability, and costs related to operations and maintenance will be refunded through either the Transmission Access Charge or a bill credit to retail customers.(2) Charge private generators, subscribers, and customers contracting for capacity on a new transmission project, consistent with subdivision (b) of Section 3310.(b) The authority may enter into partnerships with electrical corporations or other private entities under which the authority would purchase a long-term entitlement to a portion of the transmission asset that establishes eligibility to receive revenues from the Independent System Operator.
3341.7. (a) For purposes of a transmission project described in subdivision (b) of Section 3310, the authority may do either of the following:(1) Seek a revenue requirement from the Federal Energy Regulatory Commission for a transmission project that will be operated by the Independent System Operator. The authority shall ensure that the revenue requirement satisfies one of the following conditions:(A) The revenue requirement requested from the Federal Energy Regulatory Commission only reflects the projects actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the Transmission Access Charge. If the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the authority, the requirements of subparagraph (B) shall apply.(B) Revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the project, project overhead and administration, wildfire liability, and costs related to operations and maintenance will be refunded through either the Transmission Access Charge or a bill credit to retail customers.(2) Charge private generators, subscribers, and customers contracting for capacity on a new transmission project, consistent with subdivision (b) of Section 3310.(b) The authority may enter into partnerships with electrical corporations or other private entities under which the authority would purchase a long-term entitlement to a portion of the transmission asset that establishes eligibility to receive revenues from the Independent System Operator.
3341.7. (a) For purposes of a transmission project described in subdivision (b) of Section 3310, the authority may do either of the following:
###### 3341.7.
(1) Seek a revenue requirement from the Federal Energy Regulatory Commission for a transmission project that will be operated by the Independent System Operator. The authority shall ensure that the revenue requirement satisfies one of the following conditions:
(A) The revenue requirement requested from the Federal Energy Regulatory Commission only reflects the projects actual capital structure, the actual cost of capital, project overhead and administration, wildfire liability, and costs related to operations and maintenance to minimize the costs collected through the Transmission Access Charge. If the Federal Energy Regulatory Commission approves a higher revenue requirement than required by the authority, the requirements of subparagraph (B) shall apply.
(B) Revenues in excess of the costs associated with supporting the actual capital structure, the actual cost of capital for the project, project overhead and administration, wildfire liability, and costs related to operations and maintenance will be refunded through either the Transmission Access Charge or a bill credit to retail customers.
(2) Charge private generators, subscribers, and customers contracting for capacity on a new transmission project, consistent with subdivision (b) of Section 3310.
(b) The authority may enter into partnerships with electrical corporations or other private entities under which the authority would purchase a long-term entitlement to a portion of the transmission asset that establishes eligibility to receive revenues from the Independent System Operator.
SEC. 7. Section 3380.1 of the Public Utilities Code is amended to read:3380.1. For the purposes provided in of this division, the authority is authorized to may incur indebtedness and to issue securities of any kind or class, at public or private sale by the Treasurer, and to renew the same, provided that if all such indebtedness, howsoever evidenced, shall be payable solely from revenues. The authority may issue bonds for the purposes of this division in an amount not to exceed five billion dollars ($5,000,000,000), exclusive of any refundings.
SEC. 7. Section 3380.1 of the Public Utilities Code is amended to read:
### SEC. 7.
3380.1. For the purposes provided in of this division, the authority is authorized to may incur indebtedness and to issue securities of any kind or class, at public or private sale by the Treasurer, and to renew the same, provided that if all such indebtedness, howsoever evidenced, shall be payable solely from revenues. The authority may issue bonds for the purposes of this division in an amount not to exceed five billion dollars ($5,000,000,000), exclusive of any refundings.
3380.1. For the purposes provided in of this division, the authority is authorized to may incur indebtedness and to issue securities of any kind or class, at public or private sale by the Treasurer, and to renew the same, provided that if all such indebtedness, howsoever evidenced, shall be payable solely from revenues. The authority may issue bonds for the purposes of this division in an amount not to exceed five billion dollars ($5,000,000,000), exclusive of any refundings.
3380.1. For the purposes provided in of this division, the authority is authorized to may incur indebtedness and to issue securities of any kind or class, at public or private sale by the Treasurer, and to renew the same, provided that if all such indebtedness, howsoever evidenced, shall be payable solely from revenues. The authority may issue bonds for the purposes of this division in an amount not to exceed five billion dollars ($5,000,000,000), exclusive of any refundings.
3380.1. For the purposes provided in of this division, the authority is authorized to may incur indebtedness and to issue securities of any kind or class, at public or private sale by the Treasurer, and to renew the same, provided that if all such indebtedness, howsoever evidenced, shall be payable solely from revenues. The authority may issue bonds for the purposes of this division in an amount not to exceed five billion dollars ($5,000,000,000), exclusive of any refundings.
###### 3380.1.
SEC. 8. Section 3380.2 of the Public Utilities Code is amended to read:3380.2. In connection with the issuance of bonds, in addition to the powers otherwise provided in this division, the authority may do all of the following:(a) Issue, from time to time, bonds payable from and secured by a pledge of all or any part of the revenues in order to finance the activities authorized by this division, including, without limitation, an enterprise or multiple enterprises, a single project for a single participating party, a series of projects for a single participating party, a single project for several participating parties, or several projects for several participating parties, and to sell those bonds at public or private sale by the Treasurer, in the form and on those terms and conditions as the Treasurer, as agent for sale, shall approve.(b) Pledge all or any part of the revenues to secure bonds and any repayment or reimbursement obligations of the authority to any provider of insurance or a guarantee of liquidity or credit facility entered into to provide for the payment or debt service on any bond.(c) Employ and compensate bond counsel, financial consultants, underwriters, and other advisers determined necessary and appointed by the Treasurer in connection with the issuance and sale of any bond.(d) Issue bonds to refund or purchase or otherwise acquire bonds on terms and conditions as the Treasurer, as agent for sale, shall approve.(e) Perform all acts that relate to the function and purpose of the authority under this division, whether or not specifically designated in this chapter.(f) Seek financing assistance from any entity eligible to access the Public Transmission Financing Fund pursuant to Section 63049.82 of the Government Code.
SEC. 8. Section 3380.2 of the Public Utilities Code is amended to read:
### SEC. 8.
3380.2. In connection with the issuance of bonds, in addition to the powers otherwise provided in this division, the authority may do all of the following:(a) Issue, from time to time, bonds payable from and secured by a pledge of all or any part of the revenues in order to finance the activities authorized by this division, including, without limitation, an enterprise or multiple enterprises, a single project for a single participating party, a series of projects for a single participating party, a single project for several participating parties, or several projects for several participating parties, and to sell those bonds at public or private sale by the Treasurer, in the form and on those terms and conditions as the Treasurer, as agent for sale, shall approve.(b) Pledge all or any part of the revenues to secure bonds and any repayment or reimbursement obligations of the authority to any provider of insurance or a guarantee of liquidity or credit facility entered into to provide for the payment or debt service on any bond.(c) Employ and compensate bond counsel, financial consultants, underwriters, and other advisers determined necessary and appointed by the Treasurer in connection with the issuance and sale of any bond.(d) Issue bonds to refund or purchase or otherwise acquire bonds on terms and conditions as the Treasurer, as agent for sale, shall approve.(e) Perform all acts that relate to the function and purpose of the authority under this division, whether or not specifically designated in this chapter.(f) Seek financing assistance from any entity eligible to access the Public Transmission Financing Fund pursuant to Section 63049.82 of the Government Code.
3380.2. In connection with the issuance of bonds, in addition to the powers otherwise provided in this division, the authority may do all of the following:(a) Issue, from time to time, bonds payable from and secured by a pledge of all or any part of the revenues in order to finance the activities authorized by this division, including, without limitation, an enterprise or multiple enterprises, a single project for a single participating party, a series of projects for a single participating party, a single project for several participating parties, or several projects for several participating parties, and to sell those bonds at public or private sale by the Treasurer, in the form and on those terms and conditions as the Treasurer, as agent for sale, shall approve.(b) Pledge all or any part of the revenues to secure bonds and any repayment or reimbursement obligations of the authority to any provider of insurance or a guarantee of liquidity or credit facility entered into to provide for the payment or debt service on any bond.(c) Employ and compensate bond counsel, financial consultants, underwriters, and other advisers determined necessary and appointed by the Treasurer in connection with the issuance and sale of any bond.(d) Issue bonds to refund or purchase or otherwise acquire bonds on terms and conditions as the Treasurer, as agent for sale, shall approve.(e) Perform all acts that relate to the function and purpose of the authority under this division, whether or not specifically designated in this chapter.(f) Seek financing assistance from any entity eligible to access the Public Transmission Financing Fund pursuant to Section 63049.82 of the Government Code.
3380.2. In connection with the issuance of bonds, in addition to the powers otherwise provided in this division, the authority may do all of the following:(a) Issue, from time to time, bonds payable from and secured by a pledge of all or any part of the revenues in order to finance the activities authorized by this division, including, without limitation, an enterprise or multiple enterprises, a single project for a single participating party, a series of projects for a single participating party, a single project for several participating parties, or several projects for several participating parties, and to sell those bonds at public or private sale by the Treasurer, in the form and on those terms and conditions as the Treasurer, as agent for sale, shall approve.(b) Pledge all or any part of the revenues to secure bonds and any repayment or reimbursement obligations of the authority to any provider of insurance or a guarantee of liquidity or credit facility entered into to provide for the payment or debt service on any bond.(c) Employ and compensate bond counsel, financial consultants, underwriters, and other advisers determined necessary and appointed by the Treasurer in connection with the issuance and sale of any bond.(d) Issue bonds to refund or purchase or otherwise acquire bonds on terms and conditions as the Treasurer, as agent for sale, shall approve.(e) Perform all acts that relate to the function and purpose of the authority under this division, whether or not specifically designated in this chapter.(f) Seek financing assistance from any entity eligible to access the Public Transmission Financing Fund pursuant to Section 63049.82 of the Government Code.
3380.2. In connection with the issuance of bonds, in addition to the powers otherwise provided in this division, the authority may do all of the following:
###### 3380.2.
(a) Issue, from time to time, bonds payable from and secured by a pledge of all or any part of the revenues in order to finance the activities authorized by this division, including, without limitation, an enterprise or multiple enterprises, a single project for a single participating party, a series of projects for a single participating party, a single project for several participating parties, or several projects for several participating parties, and to sell those bonds at public or private sale by the Treasurer, in the form and on those terms and conditions as the Treasurer, as agent for sale, shall approve.
(b) Pledge all or any part of the revenues to secure bonds and any repayment or reimbursement obligations of the authority to any provider of insurance or a guarantee of liquidity or credit facility entered into to provide for the payment or debt service on any bond.
(c) Employ and compensate bond counsel, financial consultants, underwriters, and other advisers determined necessary and appointed by the Treasurer in connection with the issuance and sale of any bond.
(d) Issue bonds to refund or purchase or otherwise acquire bonds on terms and conditions as the Treasurer, as agent for sale, shall approve.
(e) Perform all acts that relate to the function and purpose of the authority under this division, whether or not specifically designated in this chapter.
(f) Seek financing assistance from any entity eligible to access the Public Transmission Financing Fund pursuant to Section 63049.82 of the Government Code.
SEC. 9. Section 3384 of the Public Utilities Code is repealed.3384.The authority may not finance or approve any new program, enterprise, or project on or after January 1, 2007, unless authority to approve such an activity is granted by statute enacted on or before January 1, 2007.
SEC. 9. Section 3384 of the Public Utilities Code is repealed.
### SEC. 9.
3384.The authority may not finance or approve any new program, enterprise, or project on or after January 1, 2007, unless authority to approve such an activity is granted by statute enacted on or before January 1, 2007.
The authority may not finance or approve any new program, enterprise, or project on or after January 1, 2007, unless authority to approve such an activity is granted by statute enacted on or before January 1, 2007.
SEC. 10. 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. 10. 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. 10. 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. 10.
(a)On or before December 31, 2026, the commission, in consultation with the Energy Commission, shall develop a framework for assessing, tracking, and analyzing total annual energy costs paid by residential households in California. The framework shall include all of the following:
(1)A methodology for identifying, categorizing, and quantifying major residential household energy sources.
(2)The total annual energy costs borne by residential households.
(3)Annual costs for major residential household energy sources, including, but not limited to, electricity, natural gas, propane, gasoline, and diesel.
(4)Changes in the total annual energy costs for residential households over time.
(5)The relative contributions of different energy sources to the total annual energy costs borne by residential households.
(6)The annual growth rate of energy costs for residential households by energy source.
(7)Projections of possible future total energy costs for residential households for the next 10 years.
(8)Scenarios of actions that may lead to a 5 percent, 10 percent, and 15 percent reduction in total annual energy costs paid by residential households in 2035, relative to 2024 total annual energy costs after adjusting for inflation.
(9)An assessment of the actions identified pursuant to paragraph (8) and the effects they may have on public health and safety, electrical and gas system reliability, and the achievement of the states 2045 clean electricity goal developed pursuant to Section 454.53 and the states 2045 carbon neutrality goal developed pursuant to Section 38562.2 of the Health and Safety Code.
(b)The commission may use the total annual energy cost framework pursuant to subdivision (a) for purposes of evaluating any request by an electrical corporation and gas corporation to track new spending eligible for recovery or to adjust a revenue requirement. In evaluating any such request, the commission shall consider whether the electrical corporation and gas corporation should take additional actions to achieve the reductions in total annual energy costs identified in paragraph (8) of subdivision (a).
(c)(1)On or before December 31, 2026, the commission shall submit a report to the Legislature containing the framework and the information in subdivision (a).
(2)Every two years following the submission pursuant to paragraph (1), the commission shall submit an update to the report providing an evaluation of the implementation and impact of the framework described in subdivision (a), and the usage of the framework described in subdivision (b), identifying the specific requests by an electrical corporation or gas corporation for which the framework was employed by the commission in evaluating the requests.
(3)Pursuant to Section 10231.5 of the Government Code, this subdivision shall become inoperative on December 31, 2030.