SB254 - Energy.

Senate Bill No. 254 CHAPTER 119 An act to amend Sections 4216.1, 8557, 12100.110, 15472, 15473, 15475, 15475.1, 15475.2, 15475.6, and 63050 of, to add Section 12100.111 and 12100.112 to, to add Article 10.5 (commencing with Section 63049.71) to Chapter 2 of Division 1 of Title 6.7 of, and to repeal Sections 15475.4 and 15475.5 of, the Government Code, to amend Section 25545.1, 25545.2, 25545.4, 25545.5, 25545.6, 25545.7, 25545.7.2, 25545.7.6, 25545.8, 25545.9, 25545.10, and 25545.12, and to add Article 7 (commencing with Section 21159.30) to Chapter 4.5 of Division 13 of, the Public Resources Code, to amend Sections 326.1, 326.2, 850, 850.1, 934, 1701.8, 3280, 3292, 3310, 3380.1, 3380.2, 8385, 8386, 8386.1, 8386.2, 8386.3, 8386.4, 8386.5, 8387, 8388.5, and 8389 of, to amend the heading of Part 6 (commencing with Section 3280) of Division 1 of, to add Sections 913.2 and 8386.10 to, to add Chapter 6 (commencing with Section 3299.100) to Part 6 of Division 1 of, to add and repeal Sections 940 and 719 of, to add and repeal Chapter 4 (commencing with Section 3298) and Chapter 5 (commencing with Section 3299) of Part 6 of Division 1 of, to repeal Sections 352 and 3287 of, and to repeal and add Section 3283 of, the Public Utilities Code, to amend Sections 17039 and 23036 of, and to add and repeal Sections 17053.40 and 23640 of, the Revenue and Taxation Code, and to amend Sections 351, 80506, 80524, 80540, and 80544 of, and to add and repeal Section 80544.5 of, the Water Code, relating to energy, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. [ Approved by Governor September 19, 2025. Filed with Secretary of State September 19, 2025. ] LEGISLATIVE COUNSEL'S DIGEST SB 254, Becker. Energy. (1) Existing law establishes the Governor’s Office of Business and Economic Development (GO-Biz) within the Governor’s office and requires the office to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth, as provided. Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act (bank act), establishes the California Infrastructure and Economic Development Bank (I-Bank) within GO-Biz, under the direction of an executive director and governed by, and its corporate power exercised by, a board of directors (bank board). Existing law, among other things, authorizes the bank to make loans, issue bonds, and provide financial assistance for various types of projects that qualify as economic development or public development facilities, as provided. Existing law prohibits the financing of economic development facilities unless the bank determines that the financing or assistance meets specified public interest criteria. Existing law, the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (bond act), approved by the voters as Proposition 4 at the November 5, 2024, statewide general election, authorizes the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs. Existing law makes $850,000,000 of that amount available, upon appropriation of the Legislature, for clean energy projects, as provided. This bill would deem the financing of projects related to the clean energy projects funded by the bond act, as described above, to be in the public interest and eligible for financing by the I-Bank or by a special purpose trust established pursuant to the bank act and would, except as specified, require that any such financing be treated as financing of an economic development facility for purposes of the bank act. The bill would authorize the I-Bank to provide any form of financial assistance, including issuing bonds, as provided. The bill would authorize the I-Bank to provide financial assistance under the California Transmission Accelerator Revolving Fund Program to any eligible participating party, either directly or to a lending or financial institution, in connection with the financing or refinancing of an accelerator project, in accordance with an agreement or agreements between the I-Bank and the participating party, either as a sole lender or in participation or syndication with other lenders. The bill would define various terms for these purposes. The bill would require that eligible projects for financing under these provisions meet specified conditions. The bill would require the I-Bank to prepare, and the bank board to approve, guidelines for the provision of financial assistance under the Accelerator Revolving Fund Program, and would exempt the accelerator financing plan and guidelines to administer the program from the rulemaking provisions of the Administrative Procedure Act. Existing law creates the California Infrastructure and Economic Development Bank Fund (bank fund) in the State Treasury for purposes of implementing the objectives and provisions of the bank act. Except as specified, existing law continuously appropriates all moneys in the bank fund for support of the I-Bank and for expenditure for the purposes stated in the bank act. This bill would provide that moneys in the bank fund are available for expenditure for California Transmission Accelerator financing, as described above, only upon appropriation by the Legislature. The bill would create the Accelerator Revolving Fund within the State Treasury for the purpose of providing financial assistance under the Accelerator Revolving Fund Program. The bill would make the moneys in the fund, except as specified, continuously appropriated, without regard to fiscal year, for the support of eligible entities, as defined, and available for expenditure for the above-described purposes. By establishing a continuously appropriated fund, the bill would make an appropriation. (2) Existing law creates within Go-Biz the Energy Unit to accelerate the planning, financing, and execution of critical energy infrastructure projects, as specified. This bill would require the Energy Unit to establish a Transmission Infrastructure Accelerator (accelerator), in coordination with certain entities, to develop a financing and development strategy for eligible transmission projects receiving California Transmission Accelerator financing, established by this bill’s provisions as described above, and would require the accelerator to take the necessary steps to accelerate the development and deployment of those projects to maximize ratepayer savings. The bill would require the accelerator, before December 31, 2026, to coordinate the state’s ongoing activities related to transmission planning and development and to ensure accelerator projects meet specified criteria. The bill would also require the accelerator to evaluate the results of the Independent System Operator’s transmission planning process, to select which accelerator projects have the opportunity to receive public financing, and to develop a public-private partnership plan to develop financing options that maximize debt financing, among other things. (3) The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2026, and before January 1, 2036, in an amount equal to 20% of the qualified expenditures paid or incurred by the qualified taxpayer during the taxable year, not to exceed $20,000,000 per qualified taxpayer per taxable year. The bill would define “qualified expenditures” for these purposes to mean costs paid or incurred for planning, design, engineering, permitting, construction, and equipment directly related to an eligible transmission project, as defined, or qualified wages, as defined, paid or incurred to employees of a qualified taxpayer that perform services directly related to the eligible transmission project. The bill would define “qualified taxpayer” for these purposes to mean a taxpayer that is a participating entity under the Accelerator Revolving Fund Program, as described above. If the credit allowed under these provisions is claimed by the qualified taxpayer, the bill would prohibit the taxpayer from earning a return on equity for the eligible transmission project for the portion of the project for which the credit is claimed. The bill would require the I-Bank to inform the Franchise Tax Board of any eligible transmission project that the bank approves for financial assistance and to provide any other information the Franchise Tax Board requires for administration of the credits allowed by the bill. Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would provide that this requirement does not apply to the credits allowed by the bill’s provisions. (4) The California Consumer Power and Conservation Financing Authority Act creates the California Consumer Power and Conservation Financing Authority. The act authorizes the authority, before January 1, 2007, to establish, finance, purchase, lease, own, operate, acquire, or construct generating facilities and other projects and enterprises, or provide financial assistance for projects or programs by participating parties, to supplement private and public sector power supplies to ensure a sufficient and reliable supply of electricity for California’s consumers at just and reasonable rates, to finance programs for consumers and businesses to invest in cost-effective energy efficient appliances, renewable energy projects, and other programs that will reduce the demand for energy in California, to finance natural gas transportation and storage projects, to achieve an adequate energy reserve capacity in California, and to provide financing for owners of aged, inefficient, electric powerplants to perform necessary retrofits to improve the efficiency and environmental performances of those powerplants. This bill would additionally authorize the authority to sponsor, finance, purchase, lease, own, operate, acquire, or construct new transmission projects, as defined. The bill would authorize the authority to seek financing assistance from any entity eligible to access the California Transmission Accelerator Revolving Fund. Existing law authorizes the authority to incur indebtedness and to issue securities of any kind or class, at public or private sale by the Treasurer, and to renew the same, if the indebtedness is payable solely from revenues. Existing law authorizes the authority to issue bonds, as specified, in an amount not to exceed $5,000,000,000, exclusive of any refunds. This bill would delete that $5,000,000,000 limit. Existing law prohibits the authority from financing or approving any new program, enterprise, or project on or after January 1, 2007, unless authority to approve such an activity is granted by statute enacted on or before January 1, 2007. This bill would repeal that provision. (5) Existing law vests the State Energy Resources Conservation and Development Commission (Energy Commission) with the exclusive jurisdiction to certify the construction of certain eligible facilities, as defined. Existing law prohibits a person from constructing such a facility unless that person obtains a certificate from the commission, as provided. Existing law authorizes a person proposing an eligible facility to file an application no later than June 30, 2029, for certification with the commission to certify a site and related facility, as provided. This bill would extend the date that a person proposing an eligible facility is authorized to apply by to June 30, 2030. Existing law requires an application for a site and related facility to be in a form prescribed by the Energy Commission, contain specified information, and be further supported by other information as the Energy Commission may require to support the preparation of an environmental impact report and issuance of a certification. Existing law requires the Energy Commission to review the application and make a determination of completeness within 30 days of the submission of the application, and authorizes the executive director of the Energy Commission to require the applicant to submit additional information, documents, or data determined to be reasonably necessary to prepare the environmental impact report for the application, as provided. This bill would explicitly authorize the Energy Commission to require certain supporting information to support the preparation of an environmental impact report, mitigated negative declaration, or negative declaration, and would make related conforming changes. The bill would require the application to include evidence that the applicant has sufficient real property rights to the proposed location to currently access, build, and operate the proposed facility. The bill would instead authorize the executive director to require an applicant to submit missing information in the application before an application can be deemed complete and would require that any further requests by the executive director for missing information in response to additional information provided by the applicant be made within 45 days, or as soon as practicable thereafter, of receipt of that information. Existing law requires each person proposing to construct a thermal powerplant or electrical transmission line to submit to the Energy Commission a notice of intention to file an application for the certification of the site and related facility or facilities, requires the approval of the notice by the Energy Commission to be based upon specified findings, and requires an application for certification of the site and related facility to be filed with the Energy Commission. Existing law requires, for the consideration of an application and the issuance of a certification, the Energy Commission to comply with the requirements to prepare a written decision after a public hearing on an application that includes specified things, including findings regarding the conformity of the proposed site and related facilities with standards adopted by the Energy Commission, as provided, and applies these requirements to an application for an eligible facility, as provided. This bill would remove findings regarding the conformity of the proposed site and related facilities with standards adopted by the Energy Commission from that application requirement for an eligible facility. Ex [Text truncated for display. Full text available on Congress.gov.]