AMENDED IN ASSEMBLY MARCH 19, 2026
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
98
Introduced by Assembly Member Wallis
February 20, 2026
An act to amend Section 748.5 of the Public Utilities Code, relating to electricity. An act to add Section 65850.10 to the Government Code, relating to electricity.
Vote: majority Appropriation: no Fiscal committee: yes Local program: yes
LEGISLATIVE COUNSEL’S DIGEST
Existing law authorizes the legislative body of any county or city to adopt ordinances that, among other things, regulate the use of buildings, structures, and land as between industry, business, residences, open space, including agriculture, recreation, enjoyment of scenic beauty, use of natural resources, and other purposes. Existing law requires every city, county, or city and county to, in consultation with the local fire department or district and the utility director, if the city, county, or city and county operates a utility, adopt an ordinance that creates an expedited, streamlined permitting process for electric vehicle charging stations, as provided.
This bill would prohibit a local building authority from denying, withholding, or conditioning a certificate of occupancy to a nonprofit applicant solely on the basis that required vehicle charging stations are not fully operational, provided that certain conditions are met, including that the applicant has installed all vehicle charging infrastructure required by applicable law, regulation, or building code in the manner and to the specifications required. By increasing the duties of local officials, this bill would impose a state-mandated local program.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
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, except as provided, requires revenues received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to be credited directly to the residential customers of the electrical corporation, as specified.
This bill would make nonsubstantive changes to that requirement.
The people of the State of California do enact as follows:
SECTION 1.
Section 65850.10 is added to the Government Code, to read:
65850.10.
Notwithstanding any other law, a local building authority shall not deny, withhold, or condition a certificate of occupancy to a nonprofit applicant solely on the basis that required vehicle charging stations are not fully operational if all of the following conditions are met:
(a) The applicant has installed all vehicle charging infrastructure required by applicable law, regulation, or building code in the manner and to the specifications required.
(b) The applicant has submitted a timely and complete application for electrical service connection to the utility provider serving the property.
(c) The utility provider has issued written documentation confirming that it is unable to supply adequate power to the project within a reasonable time period, not to exceed 180 days from the date of the service connection request by the applicant.
(d) The applicant has not taken any action, or failed to take any required action, that caused or contributed to the inability of the utility provider to supply adequate power.
SEC. 2.
The Legislature finds and declares that Section 1 of this act adding Section 65850.10 to the Government Code addresses a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act applies to all cities, including charter cities.
SEC. 3.
No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
Section 748.5 of the Public Utilities Code is amended to read:
748.5.
(a) (1) Except as provided in subdivisions (c) and (d), the commission shall require revenues, including any accrued interest, received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electric utilities pursuant to subdivision (b) of Section 95890 of Title 17 of the California Code of Regulations to be credited directly to the residential customers of the electrical corporation.
(2) Small business, emissions-intensive, trade-exposed retail customers of the electrical corporation that are covered entities under the regulations adopted pursuant to Section 38562 of the Health and Safety Code, and emissions-intensive, trade-exposed retail customers of the electrical corporation that are not covered entities under the regulations adopted pursuant to Section 38562 of the Health and Safety Code, may also be credited from the revenues in paragraph (1), as determined by the commission.
(3) The credits provided to residential customers of an electrical corporation shall be provided on the bills of those customers in no more than four high-billed months of each year to maximize customer electric bill affordability, or as otherwise directed by the commission to address extreme, unforeseen, and temporary circumstances.
(b) (1) Not later than January 1, 2013, the commission shall require the adoption and implementation of a customer outreach plan for each electrical corporation, including, but not limited to, such measures as notices in bills and through media outlets, for purposes of obtaining the maximum feasible public awareness of the crediting of greenhouse gas allowance revenues. Costs associated with the implementation of this plan are subject to recovery in rates pursuant to Section 454.
(2) Not later than January 1, 2027, the commission shall require each electrical corporation to update the customer outreach plan developed pursuant to paragraph (1) to include a statement at the top of customer bills in applicable months specifying the amount of money saved on a utility bill in that month and attributing those savings to the climate credit and the California Cap-and-Invest Program.
(c) The commission may allocate up to 15 percent of the revenues, including any accrued interest, received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to electrical distribution utilities pursuant to subdivision (b) of Section 95890 of Title 17 of the California Code of Regulations, for clean energy and energy efficiency projects established pursuant to statute that are administered by the electrical corporation, or a qualified third-party administrator as approved by the commission, and that are not otherwise funded by another funding source. This subdivision shall become inoperative on July 1, 2026.
(d) (1) The commission shall require an electrical corporation to annually remit to the State Treasury 5 percent of the revenues, including any accrued interest, received by the electrical corporation as a result of the direct allocation of greenhouse gas allowances to electrical distribution utilities pursuant to subdivision (b) of Section 95890 of Title 17 of the California Code of Regulations for deposit in the California Transmission Accelerator Revolving Fund, pursuant to Section 63049.74 of the Government Code. This paragraph shall become operative on July 1, 2026, and shall become inoperative on July 1, 2031.
(2) The revenues deposited into the California Transmission Accelerator Revolving Fund shall be available to the California Infrastructure and Economic Development Bank for purposes of the California Transmission Accelerator Revolving Fund Program established pursuant to Article 10.5 (commencing with Section 63049.71) of Chapter 2 of Division 1 of Title 6.7 of the Government Code.