AMENDED IN SENATE AUGUST 13, 2026
AMENDED IN SENATE JULY 2, 2026
AMENDED IN ASSEMBLY APRIL 13, 2026
AMENDED IN ASSEMBLY MARCH 26, 2026
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
95
Introduced by Assembly Member Petrie-Norris
February 20, 2026
An act to add Section 769.4 to the Public Utilities Code, relating to electricity.
Vote: majority Appropriation: no Fiscal committee: yes Local program: yes
LEGISLATIVE COUNSEL’S DIGEST
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires the commission, if it determines that the rules, practices, equipment, appliances, facilities, or service of a public utility, or the methods of manufacture, distribution, transmission, storage, or supply used by the public utility, are unjust, unreasonable, unsafe, improper, inadequate, or insufficient, to determine and fix the rules, practices, equipment, appliances, facilities, service, or methods to be observed, furnished, constructed, enforced, or employed.
This bill would, within one year 180 days
following the adoption of each a transmission plan produced by the Independent System Operator through the transmission planning process, or a successor process, and or within one year 180 days following the execution of a generator interconnection agreement, require each large electrical corporation, as defined, that is assigned or obligated to
construct a project that requires approval by the commission to initiate permitting for the project by filing an application or other notice, as applicable, pursuant to a specific general order of the commission. The bill would authorize a large electrical corporation to request an extension of the filing deadline by demonstrating good cause, as described, in a written notice to the commission, as provided. If a large electrical corporation fails to adhere to these timelines, or to make a timely extension request, the bill would require the commission to take appropriate enforcement action, as specified. submit to the below-described transmission development monitor a project-specific schedule for the project, as provided.
This bill would require, beginning
require the commission, on or before July 1, 2027, the commission to require each large electrical corporation to retain an independent third-party auditor to establish a transmission development monitor within the commission. The bill would require the transmission development monitor to monitor and review certain information regarding transmission- and interconnection-related facilities submitted by the large electrical corporation, the large electrical corporation’s progress on completing network upgrades following approval in a generator interconnection agreement or transmission plan approved by the Independent System Operator, the large electrical corporation’s compliance
with the above-described permitting deadlines,
schedule submitted to the transmission development monitor, and the large electrical corporation’s compliance with any remedial actions ordered by the commission, as specified. The bill would require the third-party auditor to report to the commission on an annual basis, as provided. transmission development monitor, among other things, to prepare and submit an annual report, as provided, and to notify the commission within 15 days of identifying a material deficiency, as defined. Within 90 days of receiving the auditor’s report, an annual report or notification of a material deficiency, the bill
would require the commission to issue a resolution directing the large electrical corporation to take remedial actions to address any and all material deficiencies identified by the auditor, transmission development monitor, as specified.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the above-described provisions would be part of the act and a violation of a commission action implementing the above-described provisions would be a crime, this 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.
The people of the State of California do enact as follows:
SECTION 1.
Section 769.4 is added to the Public Utilities Code, to read:
769.4.
(a) (1) (A)Within one year 180 days following the adoption of each a transmission plan produced by the Independent System Operator
through the transmission planning process, or a successor process, each large electrical corporation that is assigned that assigns a large electrical corporation to construct a project that requires approval by the commission shall initiate permitting for the project by filing an application or other notice, as applicable, pursuant to General Order 131-E. commission, or within 180 days following the execution of a generator interconnection agreement that obligates a large electrical corporation to construct a project that requires approval by the commission, the large electrical corporation shall submit to the
transmission development monitor established pursuant to subdivision (b) a project-specific schedule for the project, including, at a minimum, both of the following:
(2) (A) A large electrical corporation may request an extension of the filing deadlines described in paragraph (1) by demonstrating good cause in a written notice to the commission. The notice shall be served at least 30 days before the filing deadline and specify the actions the large electrical corporation is undertaking to resolve the principal causes of delay identified in the notice.
(B) For purposes of this paragraph, “good cause” may include preparatory conditions, including engineering completion, environmental assessments, and necessary coordination with affected stakeholders, and factors that the auditor determines are beyond the reasonable control of the large electrical corporation, including, but not limited to, supply chain constraints and permitting delays at federal, state, or local agencies.
(3) If a large electrical corporation fails to adhere to the timelines specified in this section, or to make a timely extension request pursuant to paragraph (2), the commission shall take appropriate enforcement action pursuant to Section 701.
(A) The anticipated date by which the large electrical corporation will file an application or other notice with the commission, as applicable, pursuant to General Order 131-E.
(B) The anticipated dates for completion of key interim steps toward the filing in subparagraph (A), including engineering design, environmental studies, and, if applicable, initiation of the prefiling consultation required under General Order 131-E.
(2) If a large electrical corporation determines that it will not meet a date specified in a schedule submitted pursuant to paragraph (1), the large electrical corporation shall promptly notify the transmission development monitor of the anticipated revision, and shall provide a revised date and a written explanation of the reason for the revision.
(3) The transmission development monitor shall track each large electrical corporation’s performance against the schedules the large electrical corporation submitted pursuant to paragraph (1), including the frequency, duration, and stated reasons for any revisions made pursuant to paragraph (2), and shall include this information in the annual report required pursuant to subdivision (b).
(4) (A) A pattern of repeated revisions to a schedule submitted pursuant to paragraph (1), or a substantial deviation between the schedule and the large electrical corporation’s actual performance, that the transmission development monitor determines is not attributable to factors beyond the large electrical corporation’s reasonable control, constitutes a material deficiency.
(B) In assessing a pattern of repeated revisions to a schedule or a substantial deviation between a schedule and the large electrical corporation’s actual performance, the transmission development monitor shall consider, as mitigating factors, time reasonably spent by the large electrical corporation awaiting or participating in environmental reviews undertaken pursuant to state or federal law, seeking applicable federal, state, or local land use permits, acquiring land or access rights, modifying a project to comply with public safety obligations or previously unidentified environmental factors, awaiting delivery of project materials or components affected by supply chain constraints, and other project-specific contingencies.
(C) If a large electrical corporation fails to submit a schedule required by paragraph (1), or fails to provide a notice required by paragraph (2), the commission shall take appropriate enforcement action pursuant to Section 701.
(b) (1) Beginning On or before July 1, 2027, the commission shall require each large electrical corporation to retain an independent third-party auditor selected and approved by the commission to
establish a transmission development monitor within the commission. The transmission development monitor shall, on a continuous basis, monitor and review the each large electrical corporation’s submissions pursuant to commission Resolution E-5252 and subparagraph (B) of paragraph (2) of subdivision (a) of Section 399.13, the large electrical corporation’s progress on completing network upgrades following approval in a generator interconnection agreement or transmission plan approved by the Independent System Operator, the large electrical corporation’s compliance
with subdivision (a), and the large electrical corporation’s compliance with any remedial actions ordered by the commission pursuant to subdivision (c).
(3)
(2) The auditor transmission development monitor shall report to the commission on an annual basis. The reports of the auditor prepare, and submit to the commission, an annual report related to the transmission development monitor’s actions taken pursuant to paragraph (1). The annual report shall be posted on the commission’s internet website and incorporated into the commission’s annual reporting requirements pursuant to subdivision (g) of Section 913.4. The transmission development monitor may
engage directly with a large electrical corporation between annual reports to obtain current project information, identify emerging or potential delays, and assess compliance.
(3) To the extent reasonably ascertainable, an annual report submitted pursuant to paragraph (2) shall determine whether project delays are primarily attributable to a large electrical corporation, a generator interconnection customer, a transmission developer, the Independent System Operator, a permitting agency, or another third party. In making this determination, the transmission development monitor shall consider whether a large electrical corporation’s completion of network upgrades or other prerequisite obligations affected the timing of any milestones attributed to a generator interconnection customer, transmission developer, or other third party.
(4) In addition to the annual report required pursuant to paragraph (2), the transmission development monitor shall provide recommendations to the commission on updates to reporting requirements to provide stakeholders with project statuses, milestones, causes of delay, and potential remedial actions, and shall notify the commission within 15 days of identifying a material deficiency.
(5) In carrying out its monitoring responsibilities under this subdivision, the transmission development monitor may request information from a generator or developer with an interconnection agreement dependent on a transmission project subject to this section. A request for information pursuant to this paragraph shall not delay or otherwise interfere with an ongoing interconnection or transmission project, and shall not impose reporting obligations on a generator or developer beyond providing the specific information requested by the transmission development monitor for purposes of monitoring and review. The transmission development monitor may enter into, and may require a generator or developer providing information pursuant to this paragraph to enter into, a nondisclosure agreement to protect market-sensitive information, and may report findings based on that information in an anonymized form.
(6) (A) On or before April 1, 2027, the commission shall adopt standardized data reporting templates and accounting procedures applicable to all large electrical corporations for submissions reviewed pursuant to this subdivision. In developing the standardized data reporting templates, the commission shall, to the maximum extent feasible, use existing reporting platforms, data submissions, and tracking systems, including the transmission planning process, the Transmission Development Forum, and reports required pursuant to Section 913.4, to avoid imposing duplicative reporting obligations on large electrical corporations. All large electrical corporations shall use the standardized data reporting templates for all submissions made on or after the date of their adoption. The commission shall update the standardized data reporting templates as necessary to reflect changes in the commission’s transmission project review process.
(B) The commission shall seek to collaborate with the Energy Commission and the Independent System Operator to develop a common reporting format that, to the extent feasible, results in standardized and comparable data across the three entities, allows a large electrical corporation to satisfy its reporting obligations through a single submission, and improves public and stakeholder access to transmission and interconnection project data.
(C) The standardized data reporting templates shall, at a minimum, include information regarding all of the following for each transmission and interconnection project subject to subdivision (a):
(i) The original and current permitting and construction timelines for the project, including anticipated dates for completion of key interim steps, including land acquisition, relevant permits, engineering design, environmental studies, and, if applicable, initiation of the prefiling consultation required under General Order 131-E.
(ii) Any delay, or risk of delay, and the projected duration in the delay. The templates shall specify methods for notifying the transmission development monitor of potential material impacts on project timing.
(iii) A written explanation of the cause of each delay, including whether completion of any network upgrade or other prerequisite obligation of the large electrical corporation affected the timing of any milestone attributed to a generator interconnection customer, transmission developer, or other third party.
(iv) The status of preconstruction dependencies, including scoping, land acquisition, permitting, engineering, design, and equipment procurement for the project.
(v) The level of staff and capital resources allocated to the project.
(vi) Any third-party contracting necessary to complete the project.
(vii) The large electrical corporation’s criteria or methodology for sequencing and prioritizing the project relative to other transmission and interconnection projects, including how the large electrical corporation allocates limited engineering, procurement, and construction resources among competing projects.
(viii) Any decision or financial limitation by the large electrical corporation or developer to defer, deprioritize, or resequence the project following approval in a generator interconnection agreement or a transmission plan approved by the Independent System Operator, and the basis for that decision.
(D) Nothing in clause (vii) or (viii) of subparagraph (C) requires public disclosure of information beyond what is required under Section 583 and the commission’s rules governing confidential treatment of information submitted to the commission.
(7) The monitoring and review conducted pursuant to this subdivision shall be designed to avoid unnecessary duplication with other commission oversight, reporting requirements, or ongoing proceedings.
(8) Before finalizing the annual report pursuant to paragraph (2) or providing notice of a material deficiency pursuant to paragraph (4), the transmission development monitor shall provide any affected large electrical corporation with a summary of any material deficiency finding and an opportunity to respond to, or seek clarification of, that finding within 15 days. The transmission development monitor shall include the large electrical corporation’s response, if any, in the annual report or notice submitted to the commission. The large electrical corporation’s exercise of the opportunity to respond under this paragraph shall not extend the 90-day period specified in subdivision (c).
(c) Within 90 days of receiving the auditor’s report
an annual report or notice of a material deficiency from the transmission development monitor pursuant to subdivision (b), the commission shall issue a resolution directing the large electrical corporation to take remedial actions to address any and all
material deficiencies identified by the auditor. transmission development monitor that the transmission development monitor determines are within the large electrical corporation’s reasonable control. Remedial actions may include, but are not limited to, any of the following:
(1) (A) Reallocating staff or capital resources to complete high-priority upgrades.
(B) For purposes of this paragraph, “high-priority upgrades” means transmission, distribution, or interconnection facilities affecting the interconnection or deliverability of at least 100 megawatts of generating or storage capacity.
(2) Facilitating advanced procurement of equipment or equipment sharing with other electrical corporations corporations, local publicly owned electric utilities, interconnection customers, or other entities to address delays caused by supply chain constraints.
(3) Interim deliverability or temporary generator interconnection solutions.
(4) Enabling generators to procure equipment on behalf of the large electrical corporation, while ensuring the equipment meets necessary specifications for safety, performance, and reliability.
(5) (A) Enabling self-build options by generators or transmission solutions developed by another electrical corporation.
(B) For purposes of this paragraph, “self-build options” includes, but is not limited to, the permitting, design, procurement, construction, or commissioning of transmission, distribution, or interconnection facilities by an entity other than the large electrical corporation.
(6) Expediting engineering, design, permitting, and other preconstruction work for high-priority upgrades following approval in a generator interconnection agreement or transmission plan approved by the Independent System Operator.
(7) Any equipment procurement, construction, or self-build option undertaken pursuant to this subdivision shall be subject to the large electrical corporation’s design, engineering, operational, safety, cybersecurity, and reliability standards, including applicable North American Electric Reliability Corporation requirements. The large electrical corporation shall retain final authority to approve all designs, equipment specifications, construction practices, and commissioning associated with the equipment procurement, construction, or self-build option, and shall complete any review within 30 days of submission by an entity other than the large electrical corporation.
(8) Any remedial action ordered by the commission pursuant to this subdivision shall be consistent with, and shall not exceed, the commission’s jurisdiction and authority under federal law, including the Federal Power Act (16 U.S.C. Sec. 791a et seq.).
(d) For transmission or interconnection projects experiencing delays that the transmission development monitor determines are beyond the reasonable control of the large electrical corporation, the transmission development monitor may refer the project to the Governor’s Office of Business and Economic Development, including through the Tracking Energy Development Task Force, for interagency coordination and escalation.
(e) A large electrical corporation’s record of compliance with remedial actions ordered by the commission pursuant to this section shall be admissible evidence and considered by the commission in any decision approving a rate or cost of capital application filed pursuant to Section 451.
(1) “Large electrical corporation” has the same meaning as defined in Section 3280.
(2) “Material deficiency” means a deficiency that is reasonably likely to result in a significant delay in the completion of a network upgrade or interconnection facility, or that reflects a pattern of repeated noncompliance with subdivision (a).
(3) “Milestone” means a scheduled date or deliverable for which a generator interconnection customer, transmission developer, or other third party is responsible under an interconnection agreement, a transmission facilities agreement, or another applicable project development schedule.
SEC. 2.
The Legislature finds and declares that Section 1 of this act, which adds Section 769.4 to the Public Utilities Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
In order to protect the confidential and market-sensitive information of an entity subject to Section 1 of this act, it is necessary that this act limit the public’s right of access to that information.
SEC. 2.SEC. 3.
No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.