AMENDED IN SENATE APRIL 20, 2026

AMENDED IN SENATE APRIL 6, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

97

Introduced by Senator Hurtado

January 28, 2026

An act to amend Section 2790 of the Public Utilities Code, relating to energy.

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 and gas corporations. Existing law requires the commission to require electrical corporations and gas corporations to perform home weatherization services, as described, for low-income customers if the commission determines that a significant need for those services exists in the corporation’s service territory, taking into consideration both the cost-effectiveness of the services and the policy of reducing the hardships facing low-income households, as specified.

This bill would require the commission to take into consideration the cost-effectiveness of the services as a whole and to require electrical corporations and gas corporations, in performing those home weatherization services, to prioritize measurable improvements in household affordability and positive impacts on household health and safety and overall quality of life, integration of health, safety, and indoor air quality improvement measures necessary to enable whole-home improvements, coordinated delivery across fuel types and housing types, conditions, and tenancy structures, and program design that allows for tenant-level benefits where upgrades occur in rental properties, while preserving flexibility in program design. The bill would authorize the commission to consider nonenergy benefits when establishing priorities for program design. The bill would require the commission to ensure that weatherization program costs do not result in undue cost burdens for ratepayers. The bill would require the commission to require electrical and gas corporations to report on measurable household affordability outcomes, as specified. The bill would require the commission to ensure meaningful public and stakeholder input on the design and implementation of these low-income programs, as provided. The bill would require the commission to require electrical and gas corporations to prioritize participation by California-based small business enterprises, minority-owned business enterprises, women-owned business enterprises, and disabled veteran business enterprises in program delivery and contracting opportunities, as specified. ensure that diverse contracting requirements are consistent with specified plans submitted to the commission and certain guidelines. The bill would revise the definition of “weatherization” for these purposes, as specified.

Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because a violation of a commission action implementing the bill’s requirements 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.

(a) The Legislature finds and declares all of the following:

(1) Home energy assistance affordability outcomes are inconsistently measured, limiting accountability for bill impacts.

(2) Statutory silos separate gas and electricity planning, increasing delivery costs.

(3) Existing programs inadequately advance equity across diverse housing types, geographic regions, and household circumstances.

(4) Misalignment between affordability, decarbonization, and housing policy increases long-term system costs.

(5) Certain eligible households do not consistently realize direct utility bill savings from energy efficiency services and upgrades, necessitating statutory clarification to guarantee measurable household affordability outcomes.

(6) The program design for home energy assistance services should ensure measurable household affordability improvements and integrate health, safety, and indoor environmental quality considerations.

(7) For purposes of this act, affordability should not be limited solely to reductions in energy consumption, but should encompass durable utility bill impacts, the mitigation of health and safety hazards that increase household costs, and the delivery of whole-home improvements necessary to achieve long-term economic and environmental resilience.

(8) Strengthening governance structures and oversight continuity supports effective coordination of low-income energy programs.

(b) It is the intent of the Legislature to promote affordability, equity, health and safety, and resilience in home energy, authorize flexible program designs reflective of modern housing conditions, and strengthen reporting and oversight without prescribing implementation details.

SEC. 2.

Section 2790 of the Public Utilities Code is amended to read:

2790.

(a) (1) The commission shall require an electrical corporation or gas corporation to perform home weatherization services for low-income customers if the commission determines that a need for those services exists in the corporation’s service territory, taking into consideration both the cost-effectiveness of the services as a whole and the policy of reducing the hardships facing low-income households.

(2) In performing its duties pursuant to paragraph (1), the commission shall require an electrical corporation or gas corporation to prioritize all of the following while preserving flexibility in program design:

(A) Integration of health, safety, and indoor air quality improvement measures necessary to enable whole-home improvements.

(B) Coordinated delivery across fuel types and housing types, conditions, and tenancy structures.

(C) Program design that allows for tenant-level benefits where upgrades occur in rental properties.

(b) The commission shall direct an electrical corporation or gas corporation to provide as many of the measures described in subparagraph (A) of paragraph (3) of subdivision (h) as are feasible for each eligible low-income dwelling unit.

(c) Weatherization programs shall use the needs assessment pursuant to Section 382.1 to maximize efficiency of delivery.

(d) The commission shall require each electrical corporation and gas corporation to solicit public input on the design and implementation of a low-income energy efficiency program pursuant to this section.

(e) The commission shall ensure that weatherization program costs do not result in undue burdens for ratepayers and shall not increase the authorized budgets for the Energy Savings Assistance Program based on the expansion of income eligibility made under paragraph (2) of subdivision (h). (i), as that definition was codified in Section 2 of Chapter 248 of the Statutes of 2021.

(f) The commission shall require each electrical corporation and gas corporation to report on measurable household affordability outcomes, including estimated bill reductions, disaggregated by housing type and tenancy status, in a manner consistent with the needs assessment conducted pursuant to Section 382.1.

(g) The commission shall ensure meaningful public and stakeholder input in the design and implementation of low-income programs authorized under this section, including consultation with community-based organizations and the Low-Income Oversight Board.

(h) (1) In administering programs authorized pursuant to this section, the commission shall require each electrical corporation and gas corporation to prioritize participation by California-based small business enterprises, minority-owned business enterprises, women-owned business enterprises, and disabled veteran business enterprises in program delivery and contracting opportunities. ensure that diverse contracting requirements are consistent with plans submitted to the commission, and the guidelines established, pursuant to Section 8283.

(2) Each program administrator shall ensure that contracting processes provide meaningful and competitive access for those enterprises described in paragraph (1) and shall avoid procurement structures that unduly favor large or vertically integrated corporations.

(3) This subdivision does not prohibit competitive bidding requirements or affect applicable state procurement laws.

(i) For purposes of this section, all of the following definitions apply:

(1) “Energy management technology” may include a product, service, or software that allows a customer to better understand and manage electricity or gas use in the customer’s home.

(2) “Low-income customers” means persons and families whose household income is at or below 250 percent of the federal poverty level.

(3) (A) “Weatherization” may include, where feasible, any of the following measures for any dwelling unit:

(i) Attic insulation.

(ii) Air infiltration measures. measures, which may include caulking, weatherstripping, and other measures determined appropriate by the commission.

(iii) Water heating and water-saving technologies.

(iv) Minor home repairs that reduce air infiltration or energy usage.

(v) High-efficiency and smart appliances.

(vi) Heating, ventilation, and air conditioning (HVAC).

(vii) Heat pump technologies.

(viii) Energy management technologies.

(B) “Weatherization” may also include other building conservation measures, energy management technology, energy-efficient appliances, and energy education programs determined by the commission to be feasible, taking into consideration for all measures both the cost-effectiveness of the measures as a whole and the policy of reducing energy-related hardships facing low-income households.

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.