Transcript Highlights:

• </c> the road in terms of days of oper the road in terms of days of oper operation<00:47:27.800><c> in
• Our taxpayers also face higher costs for local optional revenue following two failed operational levies
• While we're fortunate to pass an operating referendum in 2023, rising costs in salaries and benefits
• While we're fortunate to pass an operating referendum in 2023, rising costs in salaries and benefits
• costs onto the schools.

Committee: Senate Education Finance

Transcript Highlights:

• But there's a cost with that.
• We also have financing DSOs for our convocation arena, convocation operations, stadium operations, and
• Legislative funding no longer covers essential building operations like plant operation and maintenance
• The Benacquisto Scholarship Program cost the university around $354,000, and the homeless waiver costs
• And when I say cost, it's really a loss of revenue.

Summary: The Appropriations Committee on Higher Education met to examine how Florida’s state universities are funded and to begin discussing a possible university funding model. The panel included the State University System chancellor and CFOs from FSU, UF, FAMU, FAU, UNF, and UCF. Members first reviewed major cost drivers, which the universities said are broadly similar across institutions: wages and benefits, equipment and supplies, financial aid, professional services, utilities, IT, and maintenance. Several institutions noted unique pressures from geography, growth, research intensity, and mission, such as UCF’s size and engineering focus, UF’s land-grant and research enterprise, FAMU’s need to recruit top talent while serving a high-Pell student population, and FSU’s large facilities and research obligations. The chancellor also summarized systemwide cost growth since 2012-13, including higher health insurance, retirement, and salary costs, while noting tuition had been held flat. The committee then discussed other revenue sources, including auxiliaries, restricted funds, capital projects, and component units such as foundations and health systems. University leaders explained that many of these funds are restricted to specific purposes, and some, like UF Health, account for a large share of operating expenses. Members also discussed the current performance-based funding process. University representatives generally praised it for transparency, accountability, and its focus on student success, but said the heavy use of one-time funds, nonrecurring appropriations, and unfunded mandates makes long-term planning difficult. FSU and others argued that rising employee costs, waivers, and facilities expenses are not fully covered, while FAMU said performance funding has improved outcomes but can disadvantage institutions serving more low-income students. In response to questions about improvements, the universities suggested more recurring and predictable funding, better coverage of mandated costs, more flexibility in fees, and continued investment in research and strategic priorities. The chancellor said the Board of Governors is considering a version 3.0 of performance funding that would benchmark institutions against peers and Carnegie classifications. The committee also explored whether universities should have more flexibility to set out-of-state tuition and professional school tuition. Most university leaders favored giving boards of trustees more authority, while the chancellor cautioned that increasing out-of-state enrollment or tuition too much could affect legislative support. No votes were taken; the meeting ended with the chair thanking the panel and adjourning the committee.

Transcript Highlights:

• The operating adjustment increases DCYF's base appropriation to help address cost pressures.
• As I mentioned, the operating adjustment in the governor's recommendation doesn't cover the full cost
• So all of our IT development costs come with additional ongoing maintenance and operations.
• general fund transfer for operating adjustments due to increased costs.
• Curious what cost increase of costs is over six million dollars for operating.

Bills: HF2436 , HF470 , HF2643 , HF2456 , HF102 , HF1367

Committee: House Children and Families Finance and Policy

Transcript Highlights:

• These also have no operational impact.
• In Florida, because of our operational tempo for domestic operations, and because we have truly relevant
• So we are very limited in our ability to operate and sustain operations across our communities for a
• This would represent annual cost savings of $1.5 million to $3 million from an aviation operations perspective
• The maritime equipment and operations, that's sustaining what we currently have and are operating, both

Bills: S0048

Committee: Senate Appropriations Committee on Transportation, Tourism, and Economic Development

Summary: The Appropriations Committee on Transportation, Tourism, and Economic Development heard presentations on the Governor’s recommended budget for fiscal year 2026-27 and then considered one bill, CS/SB 48 on accessory dwelling units (ADUs). The Governor’s office outlined a $117.4 billion overall budget, with transportation and economic development receiving about $18 billion statewide and $601 million in general revenue. Agency heads then presented priorities for Commerce, Highway Safety and Motor Vehicles, Military Affairs, State, Transportation, Emergency Management, and the Florida State Guard, emphasizing workforce development, housing, tourism marketing, aviation and space infrastructure, law enforcement recruitment, emergency preparedness, and military readiness. In the Commerce presentation, Secretary Kelly highlighted funding for housing programs, the Hometown Heroes program, the Florida Job Growth Grant Fund, rural infrastructure and workforce grants, Reconnect and Florida WINS systems, law enforcement and firefighter recruitment bonuses, defense support, Visit Florida, Space Florida, and SelectFlorida. Senators asked about Visit Florida’s private match requirements and whether the agency fully leveraged prior appropriations; Visit Florida’s CEO said the match was met and exceeded, though it is difficult but important. The Highway Safety and Motor Vehicles presentation focused on trooper pay, pursuit vehicles, aviation assets, and enterprise data systems, with questions about immigration enforcement and body cameras. Military Affairs requested funding for readiness centers, training facilities, education and health benefits for Guardsmen, and maintenance of existing armories; members discussed Guard deployments, staffing levels, and a proposed firing range project. The Department of State requested funds for automated election audits, a conservation lab, and historic preservation, and defended its arts grant process and rule changes. Transportation’s budget emphasized a $14.3 billion work program, road and bridge maintenance, aviation and aerospace, safety initiatives, and seaport investments, while Emergency Management requested funding for preparedness, flood mitigation, WebEOC, grants management, and alert systems; senators also asked about the Alligator Alcatraz detention facility. For CS/SB 48, Senator Gates explained that the bill would require local governments to allow property owners to voluntarily create ADUs, while preserving local authority over setbacks, construction, and permitting. An amendment removed reusable tenant screening reports and clarified that conforming ADUs would be allowed by right without a separate hearing. The Florida Restaurant and Lodging Association supported the bill, saying ADUs could help provide long-term housing for service workers. After questions about local government and HOA authority, the committee adopted the amendment and then reported CS/SB 48 favorably by roll call vote.

Transcript Highlights:

• Removing the exemption raises projects' operating costs immediately.
• Those higher costs are absorbed by operators through delayed upgrades, which reduces work volume for
• At the same time, all of our operating costs continue to rise: wages, benefits, supplies, utilities.
• At the same time, all of our operating costs continue to rise, wages, benefits, supplies, utilities.
• Any rent collected is limited to maintenance and operation costs, and any fundraising events must align

Summary: The committee began with a work session on aircraft fuel taxes, hearing from WSDOT Aviation about the FAA’s aviation fuel tax rules, Washington’s compliance history, and the potential consequences of noncompliance. WSDOT said the state has collected roughly $210 million in aviation fuel taxes since the federal compliance period began, and that FAA has questioned some of the state’s claimed offsets. Members asked about the federal authority behind the rules, who pays the taxes, and whether Boeing is affected. The committee then moved to public hearing on several bills tied to aviation fuel tax revenue. SB 5989 would redirect a small share of state sales and use tax on aircraft fuel to the aeronautics account and require reporting on airport project funding. Supporters, including port, airport, and pilot groups, said it was a measured step toward FAA compliance and airport investment; the bill’s staff summary said it would reduce general fund revenue and increase DOR costs. SB 5898 would redirect hazardous substance, petroleum products, and oil spill-related taxes on aircraft fuel to the aeronautics account. Supporters said it would bring Washington into compliance and help airports, while Ecology, counties, and ports warned it would significantly reduce MTCA and related environmental funding. SB 6240 would create a new noise and air quality mitigation account funded by a portion of hazardous substance tax revenue; airport and aviation groups opposed it as duplicative or noncompliant with FAA rules, while community and environmental advocates from Sea-Tac area cities supported it as a needed mitigation source. The committee also heard SB 6244, which would extend a hazardous substance tax exemption for certain pesticides used in Washington agriculture through 2038. Agricultural and logistics witnesses supported it as important for food security, storage, and competitiveness, and staff said it would have a small revenue loss and administrative cost. SB 6231, a governor-request bill, would repeal the sales tax exemption for data center refurbishments while keeping the exemption for original server equipment; OFM and local government groups supported it as a revenue-raising budget measure, while data center, labor, and business representatives opposed it, warning of lost investment, jobs, and competitiveness. SB 6228 would repeal the preferential B&O rate for prescription drug resellers; OFM supported it as an outdated preference, but pharmacies, wholesalers, and business groups argued the cost would be passed through to pharmacies, hospitals, insurers, and patients and could worsen pharmacy closures. The committee then heard SB 6220, which would narrow and clarify a property tax exemption for nonprofit low-income homeownership property by allowing temporary community use and preserving the exemption when property is transferred to another exempt nonprofit. The sponsor said the bill was intended to let a community land trust host local performances without jeopardizing affordable housing plans. Finally, the committee heard SB 5880, which would allow blood and breath toxicology results to be admissible if tested by ISO/IEC 17025-certified labs, in addition to the state toxicologist process. Seattle’s city attorney supported it as a way to reduce a long toxicology backlog and speed DUI cases, while counties raised concerns about shifting costs to local governments and creating unequal access based on local resources. No votes were taken in the transcript provided.

Transcript Highlights:

• costs?
• costs.
• Is the contracting, I'm sorry, is the contracting more cost effective, or is it more cost effective to
• may want to operate.
• may want to operate.

Summary: The subcommittee heard an overview from the California Conservation Corps on its 50-year history, current operations, and budget proposals. Director J.P. Patton described the CCC’s work in conservation, disaster response, education, and workforce development, noting 26 facilities, about 3,000 Corps members annually, and a funding mix of roughly 55% General Fund and 45% reimbursements. Members praised the program and asked about revenue sources, recruitment, retention, and post-service tracking. The CCC said it has a 5,000-person waitlist, uses first-come, first-served admissions with minimal eligibility requirements, and is working to improve data on outcomes. The committee also discussed the Greenwood Residential Center, where the CCC seeks staffing and operating funds to reopen a rebuilt facility in El Dorado County; the LAO suggested considering fewer new members or a delayed opening to reduce General Fund pressure, but no vote was taken and the item was held open. The committee then considered a CCC wildfire readiness proposal to move hand crews to a seven-day operational schedule. CCC and Cal Fire representatives said the change is needed because wildfire is now year-round and because the current model leaves crews unavailable in many months due to staffing gaps. They said the proposal would improve reliability for Cal Fire, preserve training opportunities for Corps members, and better align the CCC with Cal Fire’s 66-hour workweek. The LAO supported the concept but recommended considering lower-cost alternatives, such as relief staffing or partial reimbursement. Members also discussed the decline in incarcerated fire crews, with Cal Fire explaining that reforms and eligibility changes have reduced the pool of incarcerated people who qualify for camp and fire work. One member raised the use of goats and grazing for fuel reduction, and staff responded that such methods can help with prevention but cannot replace hand crews for suppression. The item was held open. Cal Fire then presented its department overview, emphasizing its expanded workforce, year-round wildfire response, vegetation management, community preparedness, and partnerships with federal, local, tribal, and private entities. Members asked about contract counties such as Orange County, reforestation and seedling capacity, federal reimbursement, and the 66-hour workweek rollout. Cal Fire said it is still below the seedling capacity needed for post-fire reforestation and relies heavily on public-private partnerships. The committee also reviewed a proposal for permanent funding for defensible space inspections. Cal Fire said it needs 31 positions and ongoing General Fund support to replace temporary funding that expires in 2027 and to maintain a goal of 250,000 inspections per year. The LAO said the proposal has merit but suggested alternatives such as a different General Fund/GGRF mix, reinstating an SRA fee, or approving the positions on a one-time basis. Members generally supported the work but raised budget concerns, and the proposal was held open. Finally, Cal Fire began presenting a fixed-wing pilot and mechanics contract increase, explaining that its aviation fleet has grown and become more complex, requiring more pilots and maintainers for year-round operations. The department said labor market pressures have increased contractor costs and that the contract is needed to support continuous aerial firefighting readiness. The transcript cuts off before further discussion or any action on that item.

Transcript Highlights:

• costs on businesses.
• These will be cost drivers, and we anticipate this raising your constituents' costs on pretty much all
• Because the cost on the shelf might be a lower cost.
• And so there's a cost there too. There's a hidden cost to that.
• driving health care costs.

Summary: The committee heard several environmental and consumer-safety bills. AB 405, the Fashion Act, would require fashion companies to disclose and manage toxic chemicals in their supply chains; supporters said it would reduce worker and consumer exposure and align with existing industry frameworks, while retailers and business groups argued it would duplicate existing laws and raise costs. After questions about DTSC workload, international standards, and affordability, the bill was moved on a due-pass-as-amended motion to Natural Resources and held on call with three votes. AB 762 would ban the sale and distribution of disposable vape devices; supporters emphasized battery-fire risks, recycling contamination, and waste impacts, while cannabis and convenience-store interests warned it would push consumers to illicit markets and harm legal businesses. The bill passed on a due-pass motion to Business and Professions with three votes and was held on call. The committee also adopted the consent calendar with six votes. AB 794 would direct California to keep in place the federal PFAS drinking-water standard if federal protections are weakened, with supporters citing health risks and the need for certainty, and water agencies opposing the emergency-rulemaking authority and potential costs. Members debated whether the bill was too broad and whether federal funds would cover implementation; the bill passed on a due-pass-as-amended motion to Appropriations with four votes and was held open. AB 1148, the Safer Food Packaging Act, would restrict certain chemicals in food packaging; supporters cited cancer and reproductive-health concerns, while chemical, beverage, and manufacturing groups argued the bill should go through existing regulatory processes and that some chemicals lacked feasible alternatives. The author said she would remove antimony trioxide later in the process after hearing opposition concerns; the bill passed on a due-pass motion to Judiciary with four votes and was held open. Finally, AB 1338 would allow local air districts to recover costs for implementing fence-line air monitoring at metal shredding facilities, building on prior legislation and local air district efforts in AB 617 communities. The author said the bill would preserve local control and improve efficiency, and the South Coast Air Quality Management District testified in support. The transcript ends as the district witness begins testimony, with no vote yet taken on AB 1338.

Transcript Highlights:

• The pilot program worked; food truck operators liked it.
• also going to take care of most of the food truck operators.
• Ensuring safety, cleanliness, operating on unused local property and lands to better control costs.
• It delayed them several months and cost millions of dollars.
• and how many days each horse can operate.

Bills: HB386 , HB1449 , HB1701 , HB2142 , HB2675 , HB2857 , HB3063 , HB3171 , HB3641 , HB3732 , HB4045 , HB4370 , HB4491 , HB4505 , HB4626 , HB5267 , HB5356

Committee: House Intergovernmental Affairs

Keywords: construction contracts, change orders, local government, budget limits, Texas legislation, HB 1449, mobile food vendors, food trucks, mobile food service establishments, permits, county health permit, municipal permitting, Health and Safety Code Chapter 437A, Chapter 437, inspection agreements, permit reciprocity, fee cap, preemption, large counties, population over one million

Transcript Highlights:

• This is coming at a time when many employers are still absorbing glass sessions operating costs increases
• This is coming at a time when many employers are still absorbing glass sessions operating costs increases
• Small businesses like mine already pay B&O tax and many other costs of operating in the state.
• Based on estimates provided by L&I, implementation of this bill will increase operating costs in the
• Even though the bill says costs can't be passed on, insurers don't operate in a vacuum.

Bills: SB6346 , SB6347 , SB6147 , SB6246 , SB5940 , SB5882 , SB6223 , SJR8206 , SB5762 , SB5828

Committee: Senate Ways & Means

Keywords: millionaires tax, wealth tax, income tax, state revenue, tax reform, Washington estate tax, estate tax, inheritance tax, death tax, probate, decedent, gross estate, taxable estate, exclusion amount, tax rate, estate planning, heirs, beneficiaries, RCW 83.100, Department of Revenue

Transcript Highlights:

• So it may result in increased staff costs, increased premiums, pension costs, and claim costs.
• fund, and then the cost of the claim if they're self-insured, and then obviously the claim costs.
• The cost of PTSD is high. It’s true.
• This bill does impose some costs on municipalities, but it shares those costs that are being borne by
• a small operation like mine.

Bills: SB6196 , SB6204 , SB6195 , SB5882 , SB6134

Committee: Senate Labor & Commerce

Keywords: kratom, taxation, regulated substances, health safety, state revenue, cannabis, marijuana, home grow, home cultivation, personal cultivation, adult use cannabis, recreational marijuana, 21 and older, controlled substances, RCW 69.50, Liquor and Cannabis Board, LCB, plant limits, cannabis possession, cannabis concentrates

Transcript Highlights:

• As such, the transition to a federal program with minimal state costs would be the most cost-effective
• We looked at cost reductions.
• that we have for operating the network.
• and higher costs.
• costs.

Summary: The subcommittee heard May Revision proposals from the Department of Food and Agriculture, the Government Operations Agency, the Department of Technology, and the Franchise Tax Board, with public comment to come later and all items held open. CDFA presented funding for the animal care program implementing Proposition 12, including a one-time $5.2 million General Fund transfer to the Ag Fund and $2.8 million ongoing, and the LAO recommended approval while noting the Legislature should revisit the funding once litigation and federal preemption questions are resolved. CDFA also proposed ending state oversight of industrial hemp and moving to the federal USDA program by January 1, 2028, with an $8.3 million General Fund transfer to cover startup and transition costs; the LAO supported the transition. Additional CDFA items included $204,000 ongoing and one position to preserve agricultural statistics reporting after USDA reorganization, and trailer bill changes to clarify the department’s 5% indirect cost cap; both drew no objections from Finance or LAO. The Government Operations Agency and Cradle to Career items focused on implementing the new federal Workforce Pell program. Finance described trailer bill language establishing state eligibility processes, with the California Student Aid Commission as the authorizing entity in consultation with the Workforce Development Board, and proposed $1.3 million one-time General Fund for Cradle to Career to build data linkages. The LAO urged caution because federal rules were just finalized and said more information was needed on workload, costs, and whether existing data systems could support the work. Senators raised policy concerns about limiting the program to public institutions and about aligning the proposal with broader workforce and labor goals. The committee also briefly discussed SB 53/Cal Compute, with GovOps saying no appropriation had been provided for its consortium work, and Finance saying the administration was not proposing funding at this time. The Department of Technology presented a $30 million operational backstop for the Middle Mile Broadband Initiative, intended to cover any shortfall if expected revenues from the Golden State Net third-party administrator do not materialize in time. The LAO initially recommended rejection over broad spending authority, then suggested amendments with stronger reporting and legislative review; committee members questioned the revenue assumptions, oversight, and whether the request could recur. CDT also sought $1 million for Poppy, the state’s GenAI digital assistant, to expand secure statewide use; the LAO had no concerns, and members asked about data security, model bias, training restrictions, and possible local-government use. Finally, FTB proposed realigning CalFile resources after the federal Direct File program was discontinued, retaining three ongoing positions and returning the rest of the funding and positions to the General Fund; the LAO said the reduced scope was reasonable, and members discussed keeping the free filing system user-friendly and ready for future federal changes. The committee also heard the administration’s digital pre-written software tax proposal, which would extend sales tax to electronically delivered software and SaaS beginning January 1, 2027, generating an estimated $450 million General Fund in 2026-27 and $900 million ongoing, plus local revenue. The LAO supported modernizing the tax base but recommended broadening the proposal to include more digital products while considering a business-use exemption or reduced rate, and flagged a newly added video game exemption as a revenue downside. Senators generally supported the goal of raising revenue and aligning California with other states, but questioned the local revenue distribution and equity effects, and one senator said they would not support expanding the tax to books, music streaming, and similar consumer products. All items were left open without votes.

Transcript Highlights:

• Substitute costs are now taking up a larger portion of our school district's operating budget.
• Substitute costs are now taking up a larger portion of our school district's operating budget.
• Substitute costs are now taking up a larger portion of our school district's operating budget.
• So we’re having our direct cost and also the indirect cost of our vendors putting that cost down to us
• </c> covering of those costs it cost us about covering of those costs it cost us about $240<01:19:05.520

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Summary: The committee opened by approving the January 16 and January 21 minutes. Members then heard testimony focused on the impact of Earned Sick and Safe Time (ESST) and the proposed paid family and medical leave program on Minnesota school districts, with the chair framing the hearing as an opportunity to hear from major employers and school leaders about costs and operational effects. Kimberly Lewis, speaking for the Minnesota School Boards Association and related school administrator groups, said districts generally already provide generous, locally negotiated sick leave and had initially adapted to ESST by separating vacation, sick time, and ESST into different buckets. She argued that a 2024 law effectively converted previously bargained sick leave into ESST, which she said undermines contracts, creates large unfunded costs, and may raise constitutional contract-clause concerns. Lewis cited large accumulated leave banks in some districts, increased sick leave use, and estimated significant costs from paid leave, including a reported $2.5 million impact for one large district. She urged flexibility such as prorating ESST for midyear hires and part-time staff and exempting coaches, short-term substitutes, and similar employees from ESST. Superintendent Anarie Fuco of St. Michael-Albertville said her district expects about $400,000 in added fiscal 2026 costs from ESST and paid leave, plus indirect costs from substitute coverage and increased absenteeism. She said schools already have generous bargaining agreements, but the new laws reduce verification and require districts to track leave for temporary staff, creating what she described as a need for “substitutes for our substitutes.” Fuco said the district would face more than $211,000 in direct payroll costs from paid leave alone and asked for flexibility or exceptions for districts already offering comparable benefits. Members asked follow-up questions about how substitute teachers accrue leave and how many districts may be cutting budgets; Lewis and Fuco said many districts are making cuts and that substitute and staffing burdens are growing. A third testifier began by Zoom, but the transcript cuts off before her full testimony.

Transcript Highlights:

• </c> 23% of its operational costs while if we 23% of its operational costs while if we look<01:12:10.080
• </c><01:14:09.040><c> costs</c> you look at the operational costs you look at the operational costs Operational
• </c><01:14:12.159><c> it's</c> Operational cost is not revenue, it's Operational cost is not revenue,
• it's operational<01:14:13.360><c> cost.
• </c><01:14:24.800><c> cost</c> that's a quarter of operational cost that's a quarter of operational cost

Committee: House Health Finance and Policy

Transcript Highlights:

• This funding supports activities such as but not limited to staffing and operating costs that supports
• This budget supports fixed in variable cost for staffing operations, such as leases, foams, travel supply
• This example gives visibility on a lean program operating cost in addition to the operating cost.
• costs.
• But also when you start looking at our operating cost, when you're looking at per fte for 4,000 employees

Transcript Highlights:

• We think about the system, transmission, distribution, market operations, greenhouse gas emissions, cost
• And especially those vegetation management, the operation and maintenance costs are collected in real
• ... ...management, the operation and maintenance costs are collected in real time.
• about the cost of all the different resources in the system, so that as we operated the grid, we could
• about the cost of all the different resources in the system, so that as we operated the grid, we could

Summary: The committee first heard AB 1026 by Assembly Member Wilson, which would require investor-owned utilities to provide clearer front-end information and follow more consistent timelines for post-entitlement energization applications tied to housing projects. The author and supporters from the Housing Action Coalition and Mission Housing said utility delays can hold up approved housing, add costs, and create uncertainty, and they argued the bill would align utility processes with recent state efforts to streamline local permitting. PG&E and Southern California Edison opposed the bill, saying existing CPUC timelines and the ongoing energization rulemaking already address the issue, that the bill could be duplicative or premature, and that some proposed timelines were too short. The committee discussed the bill’s relationship to the CPUC’s September 2024 decision, and AB 1026 was ultimately approved on a 15-0 vote, with the consent calendar also passing. The second half of the hearing was the committee’s annual oversight hearing on electric reliability. Representatives from the CPUC, CEC, CAISO, and DWR reviewed lessons from the 2020 and 2022 heat emergencies, emphasizing that California has since added significant resources, improved planning, and created backstop programs such as the strategic reliability reserve. They said the summer 2025 outlook is cautiously optimistic, with no expected shortfalls under traditional planning conditions and a projected surplus, though wildfire and extreme heat remain risks. The agencies also described major changes in planning and operations, including more battery storage, updated resource adequacy rules, expanded transmission planning, and reforms to the interconnection queue. Members asked about data center load, Diablo Canyon’s future, the strategic reliability reserve, demand response, wildfire mitigation costs, affordability, and regional market expansion. Witnesses said data center demand is a major variable but can be managed through better forecasting, flexible service arrangements, and siting in areas with existing capacity; they also said firm clean resources remain valuable while planning continues around Diablo Canyon’s scheduled retirement. On affordability, they said the agencies try to balance reliability with least-cost procurement, and that new resources can lower market prices even as they require upfront investment. CAISO also highlighted the value of the Western Energy Imbalance Market and the planned day-ahead market, saying regional coordination improves both reliability and cost savings.

Transcript Highlights:

• So how does the cost work? Does this affect the cost of ratepayers? So how does the cost work?
• These are operating costs... ...district is particularly impacted by this.
• These are operating costs that have existed for decades, either in the unitary tax or with this mitigation
• But the main cost is that it costs a lot to maintain a system.
• Thus, they must front all the costs. ...which are forced to operate on a reimbursement-only model.

Summary: The committee heard several energy, water, and utility bills, with extensive testimony on cost, ratepayer impacts, and climate or reliability goals. SB 919 by Senator Grayson would extend the biomethane monetary incentive program through 2030 and support renewable natural gas development by reducing interconnection cost barriers. Supporters said RNG helps methane reduction and organic waste diversion, while opponents, including TURN and environmental groups, argued the bill could shift costs to ratepayers and subsidize combustion-based fuels, especially dairy digesters. The author said committee amendments removed the rate-basing provisions and instead urged the CPUC to act quickly on its pending decision; the bill was left for a later vote. SB 931 by Senator Laird would reauthorize the Diablo Canyon Community Impact Mitigation Program through 2030. Supporters said San Luis Obispo County and local schools rely on the funding for emergency preparedness and public safety, while TURN argued the extension would add about $47 million in statewide ratepayer costs and should instead be paid from existing PG&E deal revenues. Members discussed the bill as a continuation of the 2022 Diablo Canyon agreement, and the author said the measure simply restores the five years omitted from that deal. The committee also heard SB 1215 by Senator Cortese, which would direct the CPUC to set deployment targets for EV charging in multifamily housing. Supporters said renters and apartment residents are largely shut out of home charging, and that prior utility programs showed the model can be cost-effective and beneficial to ratepayers. The bill was amended to address affordability, ratepayer benefits, and limits on major system upgrades. SB 1295 by Senator Stern would create a framework for using distributed batteries and other local resources to solve grid constraints more cheaply than traditional infrastructure. Supporters said it could improve reliability and reduce costs by targeting batteries where they provide the most grid value, while utilities said they were open to continued discussion. SB 1359, also by Senator Stern, would require the CPUC to more carefully evaluate major gas infrastructure investments and alternatives such as electrification before approving new spending. Environmental groups supported the bill as a guardrail against stranded assets, while gas utilities opposed it, warning it could undermine the obligation to serve, create safety and reliability risks, and retroactively change the rules for approved investments. On water policy, SB 1125 by Senator Menjivar would create a statewide low-income water rate assistance program upon appropriation. Supporters said about 1.6 million households have water debt and that affordability is a statewide issue, not just a problem for disadvantaged communities. Some members raised concerns that the bill lacked a funding source and that state mandates, such as chromium-6 treatment requirements, already strain local water agencies; the author and supporters responded that the bill includes administrative caps and transparency measures and is intended to work alongside future funding. The committee then heard SB 1098 by Senator Pérez, which would restrict the use of utility memorandum and balancing accounts by requiring exceptional circumstances, adding sunset dates, and creating cost-sharing or lower-return rules for certain spending. TURN and other supporters said the accounts allow utilities to recover costs after the fact with too little discipline, while Edison and PG&E opposed the bill, arguing that some costs are unpredictable and that the CPUC already has a formal review process. SB 1125 was moved to Appropriations with a roll call, and the roll was left open for additional votes; the other measures were discussed with no final committee actions announced in the excerpt.

Transcript Highlights:

• about cost?
• As a reading my mind, you know, with regards to cost, my question is going to be regarding the costs,
• guy, operational guidelines.
• operations began.
• So we can operate unless we have local acceptance because without infrastructure, we can operate like

Transcript Highlights:

• What we call the revenue requirement, as you've heard this morning, is the authorized cost of operating
• It includes costs like operations and maintenance and long-lived capital assets that are recovered over
• Utilities earn their return only if they manage costs within approved budgets, operate prudently, and
• Utilities earn their return only if they manage costs within approved budgets, operate prudently, and
• What we are seeing is that a lot of those costs have been operational.

Committee: Senate Energy, Utilities and Communications

Summary: The Senate Committee on Energy, Utilities and Communications held an oversight hearing focused on electric rates, utility regulation, affordability, wildfire costs, and the California Public Utilities Commission’s role. Chair and members framed the discussion around the challenge of transitioning to a cleaner grid while maintaining reliability and keeping bills affordable. The hearing also served as the annual update from the CPUC and the Public Advocates Office, with testimony from Professor Severin Borenstein and CPUC President-designate Alice Reynolds. Borenstein gave a primer on utility regulation, explaining that generation is largely deregulated while transmission and distribution remain regulated, and that most rate-setting follows cost-of-service regulation. He emphasized that the hardest issue is setting the allowed return on equity: too high can raise bills and encourage capital-heavy spending, while too low can deter investment and harm reliability. He argued there is no silver bullet, said performance-based regulation and price caps have limits, and suggested some costs now charged through electric bills—such as climate programs, low-income subsidies, and wildfire-related public policy costs—might more appropriately be paid through the state budget. Reynolds described the CPUC’s oversight role, saying the commission reviews utility spending through general rate cases, balancing accounts, and other proceedings, and that affordability is addressed through front-end scrutiny, post-spend accountability, and legislative direction. She highlighted wildfire mitigation as a major driver of rate increases, noted recent progress on clean energy procurement and battery storage, and said the CPUC is working on return-on-equity decisions, FERC advocacy on transmission costs, and implementation of SB 254 and other statutes. Members pressed on a range of issues, including wildfire securitization, load growth from EVs and data centers, gas-system stranded assets, balancing accounts, and a water-service dispute in Keene involving Union Pacific. No votes were taken; the hearing was informational, with several follow-up commitments from the CPUC to provide data and updates.

Transcript Highlights:

• live customer support line during hours of operation, require operators to provide quarterly reports
• down and our energy costs.
• down and our energy costs.
• Upton brought up, avoided cost.
• fully operating themselves.

Bills: HB744 , HR197 , SB54 , SB79 , SB163 , SB287 , SB375 , SB386 , SB398 , SB469 , SCR5

Committees: House Commerce , House Commerce, Consumer Protection, and International Affairs

Keywords: public utility, common carrier, regulation, Public Service Commission, New Orleans, constitutional amendment, distributed energy, energy storage, electricity demand, virtual power plants, reliability, hurricane resilience, esthetics, cosmetology, hair services, beauty industry, Louisiana regulation, Louisiana Economic Development, sunset law, legislative authority

Transcript Highlights:

• supplemental operating budget.
• to the budget and mandatory suppression costs.
• from material supplies and operating costs, combined with sales tax on staffing services, PD, and IT
• costs.
• in the operating budget, and so we hope that you can facility would come with that, those costs in the

Summary: The House Appropriations Committee opened with committee guidelines for the 2026 session, including limits on testimony, amendment deadlines, confidentiality expectations, and professionalism rules. Chair Ormsby also reviewed housekeeping for the public hearing, noting the meeting was recorded and live streamed, and that testimony would be limited to one minute because of the large number of sign-ups. The committee then began its work session on Governor Ferguson’s proposed 2026 supplemental operating budget, presented by OFM Director Katie Chapman, who outlined the state’s fiscal pressures: higher caseloads in major programs, a revenue forecast decline of about $390 million, federal policy changes tied to H.R. 1, inflation, and a relatively small ending fund balance. She said the governor’s budget solves about a $2.3 billion shortfall through nearly $800 million in spending reductions, revenue shifts, fund transfers, use of about $1 billion from the Budget Stabilization Account, and some tax preference changes, while also making targeted investments in areas such as child welfare, behavioral health, wildfire response, housing, and IT modernization. Chapman also explained that the proposal does not fully balance over the four-year outlook under the state’s statutory assumptions, but said the governor relied on the budget-balance law’s exception tied to BSA use and low employment growth. A question from Rep. Connors about credit ratings was answered with the view that the impact is difficult to predict and that Washington’s strong pension funding and balanced-budget framework remain positives. The public hearing drew testimony from state officials and many advocates, most of whom opposed specific cuts or fund shifts in the governor’s proposal. Secretary of State Steve Hobbs objected to proposed sweeps from the corporations and charities fund and the library archives account, citing prior cuts, layoffs, cyberattack-related costs, and the need to upgrade aging systems. Commissioner of Public Lands Dave Upthegrove urged restoration of wildfire prevention funding, saying the proposed amount was still $30 million short of the commitment in House Bill 1168 and that underfunding would increase suppression costs and risk to communities. Many education witnesses opposed reductions to Working Connections Child Care, transition to kindergarten, local effort assistance, Running Start, and higher education across-the-board cuts, arguing they would harm access, equity, and workforce development. Higher education leaders from community colleges, the University of Washington, Western Washington University, and Evergreen State College described staffing cuts, program reductions, and pressure on student services, while K-12 groups and OSPI said the budget would deepen existing funding gaps. A large portion of testimony focused on human services, health, housing, and civil legal aid. Child welfare and youth-serving organizations supported some targeted investments but opposed cuts to child care, child welfare network administration, and youth programs; advocates for foster youth, homeless youth, and mentoring programs asked for continued or increased funding. Health care and long-term care providers warned that proposed Medicaid and rate changes would reduce access for seniors, people with disabilities, and safety-net patients, while Planned Parenthood and abortion access advocates urged full restoration of the Abortion Access Project and related reimbursements. Housing and legal aid witnesses backed the governor’s proposed right-to-counsel funding but asked for more support, and homelessness advocates sought contingency funding for federal housing programs. Crime victim and domestic violence service providers repeatedly said the proposed $12 million was far short of the roughly $21.38 million needed to avoid service cuts and closures. Other testimony addressed the Climate Commitment Account shift for the Working Families Tax Credit, with environmental advocates opposing the diversion of CCA dollars and workforce advocates supporting the governor’s economic security and employment programs. No votes or formal committee action were taken during the hearing portion described in the transcript.