CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

99

Introduced by Senator Strickland

February 19, 2026

An act to add Section 384.6 to the Public Utilities Code, relating to utilities.

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. Under existing law, the commission administers, or otherwise oversees, various public purpose programs, including energy efficiency and conservation programs, cost-effective energy efficiency programs, the Family Electric Rate Assistance program, the California Alternate Rates for Energy program, rate assistance programs for eligible food banks, and home insulation financial assistance programs. Under existing law, those programs are generally funded through a charge on electrical service, which is collected through customer rates.

This bill would require the commission, no later than 180 days after filing, to consider and approve an electrical or gas corporation’s application to discontinue administration of an energy efficiency program or an energy efficiency portfolio because the program is not cost effective, not reliable, or, in the case of an electrical corporation, because the program is not being used to meet unmet resource needs in its integrated resources planning framework, as provided. Because a violation of a commission order implementing this provision 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.

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

SECTION 1.

Section 384.6 is added to the Public Utilities Code, to read:

384.6.

Consistent with timelines established in this chapter for consolidation or closure of other programs, the commission shall consider and approve an application no later than 180 days after its filing if an electrical or gas corporation files an application to discontinue administration of an energy efficiency program or an energy efficiency portfolio for any of the following reasons:

(a) The program is not cost effective in accordance with cost-efficiency metrics commonly utilized by the Public Utilities Commission.

(b) The program is not reliable, meaning that the forecasted cost-effectiveness or total system benefits of the portfolio falls significantly under forecast for at least two years in a four-year cycle.

(c) In the case of an electrical corporation, the program is not being used to meet unmet resource needs in its integrated resource planning framework, consistent with timelines established in this chapter for consolidation or closure of other programs.

SEC. 2.

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.