Gov. Gavin Newsom signed legislation increasing scrutiny of utility costs, expanding access to distributed energy resources, and establishing new requirements for data centers before the September 30 deadline for action on bills from the 2025–2026 legislative session.
The measures also address transmission development, offshore oil infrastructure, natural gas investment, and nuclear and fusion energy planning. Newsom vetoed bills that would have revised California’s community renewable energy program, created a California Public Utilities Commission (CPUC) inspector general, and established a refinery workforce task force.
The following recap groups signed and vetoed measures by policy area. Bill numbers link to California’s legislative information website.
Utility rates and oversight
Several signed bills change how the CPUC reviews utility returns, financing, and costs recovered from customers.
SB 905 requires the CPUC to consider a lower return on equity for specified capital expenditures, including certain undergrounding investments outside general rate cases. It also requires a proceeding on alternative financing for grid investment and a report to the Legislature by December 31, 2028.
AB 2463 requires CPUC cost-of-capital decisions issued on or after December 31, 2030, to include independent analysis, identify the financial models used, and explain material changes from previous methodologies.
AB 2589 requires investor-owned utilities to pass savings from specified federal tax changes to customers.
SB 327 prohibits utilities from charging electricity customers for campaigns opposing the formation of publicly owned utilities.
AB 2065 expands restrictions on expenses utilities may recover through rates.
SB 1098 addresses CPUC oversight of utility memorandum and balancing accounts.
AB 1715 requires utilities to report public grants and pass resulting savings to customers.
AB 2700 requires a CPUC report on wildfire-victim restitution shortfalls involving electrical corporations and potential restitution mechanisms.
AB 2618 prohibits former CPUC commissioners from working for regulated companies for two years after leaving office.
Newsom vetoed AB 353, which would have created a CPUC inspector general. His veto message cited concerns about the independence of the Public Advocates Office and unbudgeted costs.
He also vetoed AB 1761, which would have required disclosure of information used to calculate nonbypassable charges, and AB 2124, which would have required third-party review of electricity and gas mandates.
Distributed energy and plug-in solar
Newsom signed two distributed energy bills September 30.
SB 913 directs the CPUC, working with the California Energy Commission (CEC) and California Independent System Operator (CAISO), to improve pathways for aggregated distributed energy resources to qualify as resource adequacy capacity by June 30, 2028. The measure provides for qualifying aggregations, including customer-owned batteries, to be used in resource adequacy filings and CPUC-directed procurement. It also includes safeguards against double compensation for customers participating in net energy metering or net billing programs. (see CEJ, August 29, 2026).
SB 868 exempts qualifying portable plug-in solar devices from utility interconnection requirements, approval, and related fees until January 1, 2030. Utilities may require online registration. Extending the exemption would require further legislative action. (see CEJ, September 1, 2026).
Data centers
Newsom signed seven data center bills September 21, establishing requirements for electricity rates, energy and water reporting, and environmental review (see CEJ, September 23, 2026).
SB 886 requires new CPUC tariffs or updated electricity rules for qualifying large loads, including data centers, to prevent stranded costs and cost shifts to other customers.
SB 1168 and AB 2383 address electricity rate structures and allocation of data center costs. (see CEJ, August 31, 2026).
AB 1577 requires large data centers to report electricity use and other operating information to the CEC and provide projected demand when seeking specified local permits. (see CEJ, August 28, 2026).
AB 2469 and AB 2619 establish water-use disclosure and water-supply information requirements.
SB 887 limits access to California Environmental Quality Act (CEQA) categorical exemptions for data centers. It also allows qualifying data centers and geothermal projects to seek expedited judicial review through the environmental leadership program.
Transmission and grid connections
The signed transmission and energization measures address project financing, construction oversight, and delays in connecting customers.
AB 192, a budget measure, establishes a transmission infrastructure accelerator and revolving fund for eligible high-voltage projects selected through CAISO’s competitive solicitation process. Program guidelines are due by December 31, 2027.
AB 2493 requires the CPUC to establish a transmission development monitor by October 1, 2027. The monitor will track utility schedules and progress on transmission projects and interconnection network upgrades. The measure requires CPUC-directed remedial action following reports of specified material deficiencies.
AB 2518 creates a San Diego Gas & Electric energization pilot with deadlines of 40 to 70 business days for construction-ready projects.
SB 1196 directs the CPUC to establish statewide energization timelines for smaller projects, including accessory dwelling units, electric vehicle chargers, and home batteries.
Additional measures include SB 1158 on energy reliability planning, AB 2111 on transmission planning and facilities, and AB 2266 on load-serving entity reporting and grid planning.
Oil and refineries
AB 1448 prohibits existing oil and gas infrastructure on state tidelands and submerged lands from supporting federal offshore leases issued after January 1, 2026. The measure restricts the use of that infrastructure to transport production from newly issued federal leases. (see CEJ, August 29, 2026).
SB 1337 directs the CEC to pursue memoranda of understanding with air districts and local governments hosting refineries. The agreements would address fuel-market management and environmental, labor, economic, and consumer protections.
AB 1661 directs the first $5 million paid by Inglewood Oil Field operators into the Equitable Community Repair and Reinvestment Account toward assistance for eligible nearby families whose children have respiratory conditions.
Newsom vetoed AB 605, which would have created a refinery workforce task force, and AB 2543, which would have required an emergency assessment of fuel and transportation resources.
Natural gas transition and building electrification
Two signed bills address gas distribution investment and customer electrification.
SB 1359 requires annual reporting on gas distribution replacement and upgrade spending. It also directs the CPUC to consider depreciation approaches that reflect foreseeable changes in gas demand and limit customers’ exposure to stranded-asset costs.
AB 2313 requires gas utilities to offer eligible residential customers an electrification incentive as an alternative to replacing a gas service line. The program is due by January 1, 2028.
SB 222 streamlines permitting for residential heat pump water heaters and heating and cooling systems.
Renewable energy and storage
AB 1156 allows specified Williamson Act cancellation fees to be waived or deferred for qualifying solar projects and addresses contracts on land approved for certain streamlined solar facilities.
AB 2163 directs the CEC to identify clean energy and critical mineral development zones.
AB 550 addresses California Endangered Species Act requirements at renewable generation facilities.
AB 864 addresses hazardous waste rules for photovoltaic modules.
AB 2234 revises the definition of “geothermal exploratory project” to include equipment and activities necessary to establish interconnectivity between wells and reservoirs. Projects are divided into “exploration” and “development” components for purposes of California Environmental Quality Act (CEQA).
Newsom vetoed AB 1813, which would have revised the community renewable energy program, including its bill-credit structure and project and program limits.
He also vetoed AB 2369, concerning energy-only storage resources, citing an existing CPUC proceeding addressing storage procurement, interconnection, and market participation.
Nuclear and fusion
AB 2647 requires the CEC to assess the potential role of new nuclear power plants, including advanced reactors, in meeting California’s 2045 zero-carbon electricity goal. The final measure requires a study rather than lifting the state’s restrictions on new nuclear plants.
SB 925 requires a CEC strategic plan for fusion energy and addresses certification and environmental review for fusion projects.
Wildfire
SB 742 requires utilities to remove permanently abandoned transmission equipment and designate emergency-response liaisons.
AB 1934 directs the State Fire Marshal to plan a home-hardening certification program.
SB 1079 creates a Cal Fire innovation unit for wildfire technology. Newsom’s signing message called for coordination to avoid duplicating existing programs.
Newsom vetoed AB 1891, which would have dedicated a share of Cal Fire funding to community-led beneficial fire. He also vetoed SB 877 and SB 878, concerning insurance claim disclosures and payment requirements.
Electric vehicles and hydrogen
The signed electric vehicle package includes SB 969, SB 1283, AB 1820, SB 1213, SB 1267, and SB 615. Collectively, the measures address charger inspection and permitting, charging access at multifamily properties, fees, and disclosures concerning zero-emission truck incentives and batteries.
Newsom also signed SB 804, establishing hydrogen pipeline safety requirements, and AB 2505, addressing electrical corporations and hydrogen refueling stations.
Environmental review
AB 40 requires environmental impact reports for specified approvals involving large coal-handling facilities and certain changes in coal type or volume.
Newsom vetoed SB 954, concerning the CEQA exemption for advanced manufacturing facilities.
Climate funding and high-speed rail
SB 193, a budget measure, sets Greenhouse Gas Reduction Fund spending priorities, including $1 billion annually for high-speed rail and $1 billion reserved for legislative appropriation.
SB 1425 allows the High-Speed Rail Authority to permit utility and other work within the project right-of-way.
Selected implementation and expiration dates
Implementation now moves to the CPUC, CEC, and other agencies, with several deadlines in 2027 and 2028.
October 1, 2027: CPUC to establish transmission development monitor under AB 2493.
December 31, 2027: Transmission Infrastructure Accelerator to issue guidelines under AB 192.
January 1, 2028: CPUC to establish gas service line replacement alternatives program under AB 2313.
June 30, 2028: CPUC and CAISO to improve resource adequacy pathways for aggregated distributed resources under SB 913.
December 31, 2028: CPUC to submit report on alternative grid financing under SB 905.
January 1, 2030: Plug-in solar interconnection exemption under SB 868 expires unless extended.