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Staff brief CAC on 2025 state energy legislation, IRP developments and procurement proposals
Summary
Community Power staff summarized 2025 legislative outcomes (SB 707 teleconference reforms, SB 283 fire inspections, SB 302 tax alignment, AB 825 CAISO regional-market changes, SB 254 wildfire fund, and AB 1207 cap-and-trade extension), CPUC IRP work and a potential near-term procurement requirement; staff noted filing and timing obligations for LSE IRPs.
Patrick Welch, Associate Director of Legislative Affairs, and regulatory staff provided a quarterly update to the Community Advisory Committee covering state legislative outcomes and multiple CPUC proceedings.
Welch summarized bills Community Power tracked and engaged on during the 2025 legislative session, including Brown Act teleconferencing reforms carried in SB 707 (which incorporated language from SB 239 to ease teleconferencing for subsidiary bodies), SB 283 (new fire-inspection requirements for battery systems 10 MW and larger) and SB 302 (alignment of state tax law with federal energy tax credits). He said AB 825 will allow CAISO to operate through independently governed regional market organizations beginning in 2028 and called it potentially significant for costs and reliability.
Staff also reviewed the energy and climate package: SB 254 (a new wildfire fund and a $6 billion wildfire prevention requirement for investor-owned utilities) and AB 1207, which extends and renames California's cap-and-trade program as "cap-and-invest" through Jan. 1, 2046; staff noted continued funding for the California Climate Credit though some timing reforms.
On CPUC matters, Naim Siben Gunther (regulatory manager) and others explained that the IRP proceeding has reopened with a scoping memo and that Community Power must file an updated IRP next May once templates are released. The CPUC staff memo suggesting a potential 6,000 MW near-term shortfall and a new procurement framework (referred to as the "reliable and clean power procurement" program, RCp3) could create more regular procurement obligations for load-serving entities; a final decision on potential procurement mandates is expected in early 2026.
Staff flagged two vetoes of bills Community Power supported for operational reasons (cost and duplication), and noted successful advocacy for funding for distributed energy programs (including $46.1 million to the Distributed Electricity Back Assets program). The update was provided as an informational item and received by the committee.
Ending: Staff committed to circulate more details (including bill numbers and staff reports) and to keep the committee apprised as CPUC decisions and template releases approach.
