Transcript Highlights:

• hearing on higher education issues.
• In this committee hearing and upcoming hearings, we'll be diving into these and other pressing issues
• In this committee hearing and upcoming hearings, we'll be diving into these and other pressing issues
• So I hear you.
• Yeah, I hear you, Senator.

Summary: The Senate Budget Subcommittee on Education held its first 2026 hearing on higher education, focusing on UC and CSU system updates, student housing, enrollment, and core operations. In opening remarks, the chair noted recent state fiscal stress, the prior rejection of proposed UC/CSU cuts, and the Governor’s proposed 5% ongoing compact increases. UC President James B. Milliken and CSU Chancellor Mildred Garcia described the systems’ public value, research and workforce roles, and the impact of federal actions on grants, financial aid, and campus operations. Both also emphasized Title IX and civil rights efforts; CSU said it had implemented nearly all state auditor recommendations and was on track to finish the remaining one, while UC highlighted its systemwide civil rights and Title IX offices. Both leaders said federal investigations, grant cancellations, and litigation demands were consuming staff time and money, with UC reporting more than 200 grants lost or affected and CSU citing more than $161 million in lost grants and more than 1,600 grants affected overall. The committee then heard on student housing. Finance and LAO staff said the Governor’s budget made no major new housing proposal but continued support for the Higher Education Student Housing Grant Program. CSU reported 12 supported projects that will add about 5,047 beds, most below market rate, with four already open and seven more expected this year; it also said it has about 68,000 beds systemwide, a 92% occupancy rate, and ongoing emergency housing support. UC said the program has supported seven UC projects and two joint community college projects, adding more than 7,000 beds total, but nearly 10,000 UC students were on housing waitlists at the start of fall 2025. UC asked for additional state support, including possible bond funding and a statutory change to allow UC participation in public-private partnership housing projects. Members discussed rapid rehousing, student homelessness, faculty and staff housing, and community college housing partnerships, with both systems describing existing emergency beds and support services. On enrollment, LAO recommended maintaining UC’s 2026-27 resident undergraduate target, funding enrollment growth separately from base increases, pausing the nonresident reduction plan, and holding UC flat in 2027-28. For CSU, LAO recommended revising the 2026-27 target downward to reflect current projections, funding growth separately, and holding 2027-28 flat. CSU said it had rebounded from COVID declines, now exceeds its funded target by about 3,000 FTE, and is shifting about $89 million and 10,000 FTE spots from lower-demand campuses to higher-demand ones while developing turnaround plans for seven campuses with sustained enrollment declines, including Sonoma State. CSU also described direct admissions, transfer success pathways, and new degree programs aimed at workforce needs. UC said it had surpassed its compact enrollment goals, planned to add 2,721 California undergraduates in 2026-27, and was seeking $5.5 million for health professional programs. Members raised concerns about underprepared freshmen, K-12 alignment, nonresident caps at UC San Diego, deferred maintenance, ROTC access, and the need for stronger turnaround plans and teacher preparation pipelines. The final item on core operations addressed the Governor’s proposal to defer 3% base funding again, moving the one-time deferral to 2027-28 and allowing short-term zero-interest loans to cover it.

Transcript Highlights:

• You'll hear today about how we've increased in the identification rates.
• So with that, let's get started with our hearing.
• Today's hearing will cover some of the largest proposals... Let's get started with our hearing.
• We've already said that three times in this hearing alone.
• So I'm happy to hear that. I have kind of a fundamental... So I'm happy to hear that.

Keywords: 988, house, all

Transcript Highlights:

• . >> Hear no objection.
• in the joint hearing room.
• </c><00:28:49.840><c> in</c> p.m. for our first budget hearings in p.m. for our first budget hearings
• </c> the joint hearing room cuz we're fancy. the joint hearing room cuz we're fancy.
• </c> Hearing Room for budget hearings. Hearing Room for budget hearings.

Keywords: House streaming session for Wednesday, February 4, 2026, 957, house, all

Transcript Highlights:

• Hearing none, the motion is adopted.
• Hearing none, it is so ordered. Thank you, Senator.
• Hearing none, there are resource witnesses.
• Hearing none.
• Hearing none, we're going to open public testimony.

Bills: HB146 , HB150 , HB1500 , HB1545 , HB1562 , HB2067 , HB2520 , HB2818 , HB3214 , HB3250 , HB3466 , HB3512 , HB3623 , HB4063 , HB4395 , HB4464 , HB4668 , HB4690 , HB5331 , HB3833

Committee: Senate Business & Commerce

Keywords: HB 146, Texas Capitol, State Capitol, State Preservation Board, Congress Avenue, Travis County, traffic lanes, lane closure, road closure, municipal authority, local control, Capitol area, downtown Austin, special events, construction traffic plan, pedestrian safety, public works, transportation policy, government code chapter 443, cybersecurity

Summary: The committee took up several pending business items and reported a series of House bills out of committee, including HB 2467, HB 2468, HB 2518, HB 4310, HB 4386, HB 4490, HB 5323, and HB 149. Most of these were advanced on committee substitute motions and sent to the local and uncontested calendar or reported favorably to the full Senate. HB 2467 drew one nay vote, while the others were approved without opposition. HB 4310 and HB 4386 were described as committee-substitute versions with changes narrowing disclosure requirements and preserving attorney-client privilege in certain circumstances. A major portion of the meeting focused on HB 149, an AI governance bill. The substitute was explained as addressing biometric identifier capture and storage, exempting certain AI uses for security and fraud prevention, clarifying definitions, restricting AI systems that simulate explicit child sexual content, adjusting Attorney General investigative authority, refining sandbox program waivers, reducing Texas AI Council powers and membership, and adding DIR coordination provisions. The committee adopted the substitute and reported the bill favorably. The committee then heard extensive testimony on HB 1500, the DIR sunset bill. The author said the bill would continue DIR for 12 years, restructure its board, update advisory committees, require regular cybersecurity assessments and penetration testing for state agencies, improve IT procurement training, and transfer the e-grants program to the Comptroller. A Texas 2036 witness supported the bill as a way to strengthen governance, procurement, and cybersecurity. Members asked detailed questions about the bill’s structure and then left HB 1500 pending. The committee also heard a lengthy presentation on HB 150, which would create the Texas Cyber Command as a component of the University of Texas System, administratively attached to UTSA and located in San Antonio. The author argued the command would centralize cyber threat intelligence, incident response, and digital forensics, and would be able to support state and local entities, with optional services for local governments. Members raised concerns about university mission drift, governance, security, chain of command, procurement authority, gifts and donations, and civil liberties implications of proactive cyber monitoring. Witnesses from UTSA/NSCC and SecurityScorecard testified in support, emphasizing the security of the downtown San Antonio facility, the existing cyber ecosystem there, and the need for a dedicated cyber capability. The bill remained under discussion with no final committee action announced in the excerpt.

Transcript Highlights:

• We had the public hearing on this bill April 17th, and I turned to the last page of the hearing report
• We had the public hearing on this bill April 17th, and I turned to the last page of the hearing report
• We had the public hearing on this bill April 17th, and I turned to the last page of the hearing report
• </c> turned to the last page of the hearing turned to the last page of the hearing report,<00:16:52.079
• We had the public hearing on this bill April 17th, and I turned to the last page of the hearing report

Committee: Senate Education Finance

Keywords: 1191, senate, all

Transcript Highlights:

• I will just say, I think hearing the testimony today, I appreciate the opportunity to hear what's happening
• I will just say, I think hearing the testimony today, I appreciate the opportunity to hear the where
• I will just say, I think hearing the testimony today, I appreciate the opportunity to hear what's happening
• here as well and hearing the speakers that came before.
• So I want to thank all of you for participating in this hearing.

Summary: The Assembly Health Committee held an informational hearing on the health impacts of wildfires and the effects on health care systems and access to care. The first panel focused on public health consequences, with testimony from UCLA and UCSF physicians, a community organizer, and an Altadena recovery leader. Witnesses described acute and long-term physical harms from wildfire smoke and ash, including asthma and COPD exacerbations, cardiovascular and stroke risks, pregnancy impacts, infection risk, and possible added hazards from lithium-ion battery fires. They also emphasized mental health effects such as anxiety, depression, PTSD, “firebrain,” and the need for psychological first aid, trauma-informed community networks, and youth-focused resilience programs. Community advocates stressed that Latine, Indigenous, undocumented, and Black communities face disproportionate harm because of language barriers, unsafe work conditions, lack of insurance, and exclusion from disaster aid, and they called for stronger language access, worker protections, permanent disaster relief, and better outreach. Committee members asked about air monitoring, masks, wind events, lithium-ion batteries, and how to reach communities with translation and emergency information. Panelists said AQI is useful but incomplete, that N95s help for smoke but P100 masks are needed for ash/asbestos exposure, and that communities should be warned to stay indoors and avoid windy dust-ups after fires. They also discussed the importance of building relationships during non-emergency periods, using text alerts and trusted community organizations, and providing culturally and linguistically appropriate information. Several members and witnesses highlighted the need for more research on long-term health effects, especially for people with chronic lung disease, workers who cannot stay indoors, and residents exposed to repeated disasters. The second panel addressed health care system response and access to care. DHCS and DMHC described emergency flexibilities used during the Southern California fires, including federal waivers, extended Medi-Cal renewal deadlines, reinstated coverage for some disenrolled members, suspension of prior authorization and prescription refill barriers, out-of-network access at in-network cost-sharing, and communication through websites, toll-free numbers, and social media. Hospital and community health center leaders described major operational strain: emergency room surges, canceled surgeries, dialysis disruptions, staff displacement, temporary housing needs, and financial losses. Huntington Health and AltaMed reported using incident command systems, temporary care spaces, bilingual and culturally tailored services, mobile clinics, infection control measures, and community health workers to keep care going. Members and witnesses also discussed the need for better disaster staffing pools, more flexible facility rules, stronger mental health coverage, child care planning, and statewide coordination for future emergencies; no formal votes were taken.

Transcript Highlights:

• You're going to hear a bunch about probability today.
• I'm hearing from my colleagues in NOAA.
• And I'm hearing that we may be at a tipping point there.
• Thank you so much for having this hearing.
• So thank you again for having this hearing.

Summary: The committee held an informational hearing on flood risk and flood management in California, with opening remarks emphasizing that flooding is a statewide and growing threat due to climate change, including the possibility of extreme losses in a worst-case event. Members noted recent flooding in places such as San Diego, the Tulare Basin, and Pajaro, and framed the hearing as a way to better understand prevention, response, and how to capture excess water for later use. Jeffrey Mount of PPIC gave the main overview, describing California’s high flood exposure, the different flood types the state faces, and the mix of structural and non-structural tools used to manage them. He stressed that levees, dams, bypasses, land-use planning, flood insurance, and emergency response all matter, but that risk is rising because current standards are based on past hydrology rather than future climate conditions. He also warned that flood management is underfunded, that the National Flood Insurance Program is weak, and that federal support is increasingly uncertain. Members asked about groundwater recharge, permitting, NOAA and federal cuts, and which communities are most at risk; Mount said recharge can help but does not eliminate flood risk, and that small Central Valley communities and heavily developed floodplains are especially concerning. State officials Laura Hollander of the Department of Water Resources and Jane Dolan of the Central Valley Flood Protection Board described the state’s role in forecasting, emergency response, grants, planning, and the Central Valley Flood Protection Plan. They highlighted aging infrastructure, the need for better coordination, and the state’s special liability in the Central Valley after the Paterno decision. Dolan reviewed the history of major floods and said the plan calls for about $1 billion per year over 30 years to meet current needs, while Hollander said the state works with local and federal partners on preparedness, response, and subventions projects. Both emphasized that floodplain planning, regional coordination, and faster permitting are important, but that more consistent funding is needed. A later panel from local flood agencies and districts reinforced those points, arguing that the state’s annual flood funding is below identified needs and that a proposed statewide flood and dam safety bond was reduced substantially in the broader climate bond package. Witnesses urged more routine maintenance funding, support for regional flood planning, and continued federal-state-local partnerships to reduce risk and maintain eligibility for federal assistance. No formal votes or legislative actions were taken during the informational hearing.

Transcript Highlights:

• Okay, let's call this hearing of the Senate Committee on Energy, Utilities and Communications to order
• hearing of this committee, so it will not be heard today.
• So before we hear presentation on the bills, let's establish a quorum.
• All right, let's start with the hearing. I see Senator Bennett's here.
• We're going to reconvene this hearing.

Summary: The Senate Committee on Energy, Utilities and Communications met to hear several bills, noting that ACA 9 would be heard at a later date. The committee first approved a consent calendar item, then heard AB 2458 by Assemblymember Bennett, which would extend California Energy Commission appliance efficiency standards to appliances that are rented or leased, not just sold. Supporters included Ceres and Southern California Edison, and the bill was clarified to not affect commercial food processors. The committee also heard AB 2476 by Assemblymember Ellis, which would expand eligibility for pumped storage hydro projects under the state’s central procurement program by removing an outdated pre-2020 funding requirement while keeping the 500-megawatt cap. Support came from Rye Development, GreenGen Storage, and an irrigation district representative, with discussion focused on ratepayer benefits, competition, and grid reliability. The committee then heard AB 2518 by Assemblymember Sharp-Collins, a San Diego County pilot program to set faster utility connection timelines for certain projects, including affordable housing, hospitals, municipal infrastructure, and EV charging projects. Testimony in support came from the San Diego Housing Commission and San Diego Gas & Electric, which said the timelines were feasible and would help reduce energization delays. Members discussed whether the bill would create unintended consequences for other customers, and the author and utility representative said it would complement existing CPUC work and not conflict with SB 410-related proceedings. All three bills received unanimous or near-unanimous committee approval and were ordered to the Senate Appropriations Committee. The committee also repeatedly reopened and closed rolls to capture absent members, ultimately recording 16-0 votes on the measures that were heard.

Transcript Highlights:

• Hearing no objection, so ordered. Senator Richelie. Thank you so much, Mr. President.
• Hearing no objection, so ordered. The Secretary will read.
• Hearing no objection, the Senate now stands adjourned.
• Hearing no objection, the Senate now stands adjourned. 3rd at 12.30 p.m.
• Hearing no objection, the Senate now stands adjourned.

Summary: The Senate began with routine business, including approval of the prior day’s journal, referral of committee reports, and suspension of Rule 46 to allow committees to meet during the pro forma session. It also received first reading of introduced bills, including Senate Bill 6343, which was referred to the Agriculture and Natural Resources Committee, and Senate Bill 6035, which was redirected to Ways and Means. The main floor action was the adoption of two resolutions. Senate Resolution 8677, recognizing the commercial and tribal fishing industries and the Blessing of the Fleet, was adopted after remarks praising the fishing community and wishing for the safe return of vessels and crews. Senate Resolution 8676, celebrating Cal Raleigh and the Seattle Mariners’ historic 2025 season, was also adopted. Senators highlighted the team’s comeback season, Cal Raleigh’s record-setting performance, Dan Wilson’s leadership, Jerry Dipoto’s executive recognition, and the Mariners’ impact on communities across Washington. Following adoption of the Mariners resolution, the Senate formally welcomed Dan Wilson, Rick Rizzs, Jerry Dipoto, Justin Hollander, and Tim Hevly to the chamber and expressed appreciation for their contributions to the state’s sports culture. The Senate then moved to adjourn until Tuesday, February 3, 2026, with both Democratic and Republican caucuses announced before adjournment.

Transcript Highlights:

• Do not register until you hear the bell. The House will now proceed to register.
• We may have a portion of patience, and be blessed with an ability to listen and hear.
• We are blessed with an ability to listen and hear with empathy.
• In Hearing Room 5, with your permission. President Peña. Thank you, Mr. Speaker Pro Tem.
• The Committee on Ways and Means will be meeting in Hearing Room 3 at 10 a.m.

Summary: The House convened with prayer and the Pledge of Allegiance, approved the journal, and recognized the Doctor of the Day, Dr. Tammy Penhollow, a board-certified anesthesiologist, pain medicine physician, and Navy veteran. Members also introduced several guests in the gallery, including school board members and representatives from Republic Services, which was highlighted for its Arizona operations, employment, and sustainability work. Attendance was recorded at 57 present, zero absent, and two excused. The main floor business consisted of reading a large number of bills and resolutions for first and second reading and referring first-read measures to committee. The measures covered a wide range of topics, including public safety, education, health and human services, water and natural resources, commerce, taxation, housing, transportation, artificial intelligence, abortion-related issues, firearms, labor, and appropriations. No substantive debate or votes on individual bills were taken during this portion of the session. Toward the end of the meeting, members made committee announcements and birthday wishes, including a birthday greeting for Representative Aaron Márquez. Committee schedules were announced for Commerce, Education, Natural Resources, Energy and Water, Government, Judiciary, Ways and Means, and others. The House then adopted a motion to adjourn until 1:15 p.m. on Wednesday, January 21, 2026.

Transcript Highlights:

• Matter of fact, the bill we hear next week is going to be dealing with...
• As a matter of fact, the bill we hear next week is going to be dealing with the National Guard. Mr.
• I'm going to try not to have more than two presenters per hearing, but if you've got someone that's in
• But I think that by listening to them... ...the hearings that we have and hearing about what happened
• And that will be the only bill we're going to hear next week. We do have one presenter next week.

Committee: House Veterans and Armed Forces

Keywords: 959, house, all

Transcript Highlights:

• Hearing none, the substitute is adopted.
• Really, I appreciate you here hearing this.
• Chair hears none. HCR 81 is left pending.
• Chair hears none. HCR 83 will be left pending.
• Chair hears none. Senate Bill 1247 is left pending.

Keywords: wildlife corridors, animal-vehicle collisions, HB5259, licensing, concurrent resolutions, cultural significance, Senate Bill 1247, public safety, environmental conservation

Summary: The meeting of the committee centered around significant legislative measures, including several bills aimed at enhancing wildlife safety through the establishment of wildlife corridors and licenses for outdoor activities. Key discussions highlighted House Bill 5259, led by Vice Chair Flores, which proposes a wildlife corridor action plan to reduce animal-vehicle collisions in Texas. This bill is crucial given Texas's alarming rate of wildlife-vehicle accidents, and testimonies from supporting members emphasized the need for action to protect both wildlife and public safety. Furthermore, Senate Bill 1247 was brought forward, simplifying the non-resident hunting license system to improve compliance and conservation funding. The committee also addressed multiple concurrent resolutions recognizing towns for their cultural significance, reflecting a broader commitment to community identity and heritage.

Transcript Highlights:

• Lee can't hear it.
• </c> Lee can't hear Lee can't hear it<00:06:51.400><c> members</c><00:06:51.840><c> could</c><00:06:52.000
• Hearing no objections, the Journal is approved as corrected by the chief clerk.
• Hearing no objections, the motions prevail.
• </c> goes through Judiciary till we can hear goes through Judiciary till we can hear those those those

Keywords: 1183, house

Transcript Highlights:

• </c> public hearing on that power generation? public hearing on that power generation?
• </c><01:44:56.719><c> energy</c> hear from constituents with energy hear from constituents with energy
• </c> they have not held a rate case hearing they have not held a rate case hearing in<01:54:26.320><c
• Let me, if I may. >> I hear you.
• Are you hearing?

Keywords: 1136, house, all

Transcript Highlights:

• </c> for hearing the bill today. for hearing the bill today.
• </c><00:13:08.760><c> my</c> chair and this committee for hearing my chair and this committee for hearing
• Oh, sorry, can you hear me? Yes.
• And as we began this<01:03:51.280><c> hearing</c><01:03:51.720><c> and</c><01:03:51.840><c> hearing</
• c><01:03:52.080><c> Senator</c> this hearing and hearing Senator this hearing and hearing Senator Mohammad

Committee: Senate State and Local Government

Keywords: 1187, senate, all

Transcript Highlights:

• </c><00:18:33.600><c> Remove</c> review board hearing. I'm sorry. Remove review board hearing.
• </c><00:18:54.559><c> and</c> judicial appeals panel hearing and judicial appeals panel hearing and review
• </c> Office of Administrative Hearing Judges. Office of Administrative Hearing Judges.
• I don't think we ever had an opportunity to have the debate, to hear from members of the public, to hear
• </c> make sure that we uh we have the hearing make sure that we uh we have the hearing in<01:42:47.119

Keywords: 1187, senate, all

Transcript Highlights:

• hearings, is precisely, Ms.
• hearings, is precisely, Ms.
• over the course of hearings and subsequent hearings on any bills that are introduced in response to
• I guess a retort that I hear frequently talking... ...I guess a retort that I hear frequently talking
• But what I hear you say, and maybe I misunderstood this, what I hear you say is actually, given inverse

Summary: The Assembly Committee on Utilities and Energy held a hearing on the California Earthquake Authority’s SB 254 report and broader options for reforming California’s utility wildfire recovery system. The chair framed the discussion around the Palisades and Eaton fires, the scale of wildfire-related costs on utility bills, and the need to weigh trade-offs among survivors, ratepayers, utilities, insurers, and taxpayers. The first panel featured wildfire survivors William Abrams and Joy Chen, who described long delays in compensation, housing insecurity, and what they viewed as a system that protects utility shareholders more than victims. They urged greater transparency, clearer accountability for utility spending and safety performance, faster and fuller compensation for survivors, and reforms such as independent audits and better alignment of utility incentives with wildfire prevention and restitution. The second panel began with Tom Welsh of the California Earthquake Authority, who explained that the SB 254 report was intended as a broad inventory of policy pathways rather than recommendations. He described the report’s process, including stakeholder submissions, workstreams, and a convergence process, and outlined the current wildfire fund structure: utilities remain liable, the fund reimburses eligible claims after a covered wildfire, and the CPUC later determines prudency and possible reimbursement back to the fund. RAND’s Lloyd Dixon summarized compensation data, saying utilities paid about $38 billion between 2017 and 2024, with major shares going to injured parties, insurers, and public entities, while litigation costs and survivors’ own losses remain substantial. He noted that legal fees and delays reduce the amount survivors ultimately receive. Utility and public-interest witnesses offered differing views on the report’s pathways. PG&E’s Tyson Smith said the report shows inaction is the worst outcome and argued for community wildfire risk reduction, equitable allocation of catastrophe costs, and state-led resilience tools. LADWP’s Fernando Valero emphasized the vulnerability of municipal utilities and cities, and supported inverse condemnation reform, a state-sponsored liability insurance framework, damages and subrogation limits, and stronger insurance access. Consumer Attorneys of California’s John Fisk argued that IOU-caused fires are not natural disasters but the result of negligence and sometimes criminal conduct, and opposed reducing utility liability while supporting stronger oversight and audits. The Public Advocates Office’s Nathaniel Skinner focused on affordability, saying ratepayers already bear large and growing wildfire costs and warning against shifting more costs onto bills without measurable risk reduction and tighter accountability. Committee members then began questioning witnesses about what counts as measurable mitigation, how to define full and fair compensation, and how any fast-pay process should work.

Transcript Highlights:

• Any person in this hearing room in opposition to this measure?
• I'd love to hear your answer. Okay. Thank you, Mr. Chair.
• Any persons in the hearing room in opposition? Good afternoon.
• And any persons in the hearing in opposition to this measure?
• Any persons in the hearing room in opposition to this measure?

Summary: The committee heard a series of bills focused on environmental policy, public infrastructure, housing, and energy. AB 1812, dealing with compostable plastics and compost contamination, drew strong support from farmers, composters, counties, cities, and waste companies, while manufacturers and compostable-product companies opposed it unless amended, arguing it would undermine compostable packaging and SB 54 goals. AB 2216 to expand the Delta Conservancy’s service area also received broad support and no opposition. AB 2481, which would allow leftover glass quality incentive funds to support recycled glass used in fiberglass insulation and other products, was supported by insulation manufacturers, recyclers, and waste advocates and passed with no opposition. AB 2152, streamlining fire station construction and tying CEQA relief to project labor agreement requirements, was supported by firefighters and construction trades but opposed by contractors and wildlife groups over the PLA mandate and environmental review provisions; the committee discussed amendments and sent it forward. AB 1536, the Save Our Shores Act, aimed at offshore oil and gas safety and decommissioning, was supported by coastal and environmental groups and opposed by the petroleum industry, with members debating pipeline safety, drilling risks, and carbon intensity before advancing the bill. AB 1849, a study bill on decarbonized gaseous fuels, split supporters from hydrogen, bioenergy, and propane interests against environmental and justice groups who said it favored biomethane and hydrogen without clear definitions; the author said it was only a study measure, and it moved ahead. AB 1732, which would expand CEQA streamlining for public university and community college housing projects, was backed by students, UC representatives, housing advocates, and labor, with no opposition heard; members raised concerns about environmental impacts and evacuation planning, but the bill was approved. Several measures were taken on consent and others were held open for absent members or quorum issues, with multiple bills receiving due pass recommendations as amended.

Transcript Highlights:

• Today's hearing fulfills a statutory obligation.
• That concludes the first hearing of the day.
• And last, we'll hear from Ms. Leiser. Thank you. And last, we'll hear from Ms. Lyser.
• With that, this hearing is adjourned. customers.
• With that, this hearing is adjourned.

Summary: The Assembly Committee on Utilities and Energy held an oversight hearing with leaders from the CPUC, Public Advocates Office, CAISO, the Office of Energy Infrastructure Safety, and the Energy Commission. Chair Petrie-Norris framed the hearing around high utility bills, wildfire risk, grid reliability, clean energy buildout, and the state’s long-term decarbonization goals, and also noted it was CPUC President Alice Reynolds’ final week at the commission. Each agency gave an update on its role: the CPUC described efforts to reduce rate increases while maintaining reliability and clean energy procurement; the Public Advocates Office focused on affordability and the need to control underlying utility costs; CAISO discussed transmission planning, market operations, and the upcoming extended day-ahead market; Energy Safety reviewed wildfire mitigation oversight and inspections; and the Energy Commission highlighted clean energy growth, EV adoption, storage, efficiency, and gasoline price monitoring. A major theme was affordability versus the costs of the clean energy transition. Reynolds said the CPUC has lowered utility revenue requests, reduced utility returns, adopted a base services charge, and reworked net metering, while also continuing to manage wildfire-related costs and support resource adequacy and demand flexibility. Sarazawa argued that recent rate decreases may not be durable because billions of dollars in wildfire and other utility costs are still pending or unbilled, and she urged tighter use of general rate cases, lower-cost financing, program reform, and more equitable rate design. Members pressed the agencies on whether state policy is sufficiently accounting for labor, local economic development, and the cost impacts of transmission and procurement decisions, especially where out-of-state resources are being considered. CAISO and the Energy Commission emphasized that the state’s planning and market reforms are helping lower costs and improve reliability. CAISO said the Western Energy Imbalance Market has produced billions in benefits, the extended day-ahead market is on track to launch, and transmission planning is being aligned with long-term resource needs while reducing queue delays. The Energy Commission said California is now getting roughly two-thirds of its power from clean sources, has added massive amounts of storage and renewables, and is seeing strong EV and charger growth that can help spread fixed grid costs. Energy Safety reported thousands of inspections, hundreds of notices of non-performance, and a decline in reportable ignitions, while noting that major fires show more work is needed. Members also raised concerns about the SB 100 report delay, memo and balancing accounts, the future of battery storage, and whether decarbonization zone pilots will affect residential and commercial customers.

Transcript Highlights:

• Let's get started with our hearing.
• should expect to hear, is how are we mentioned?
• We will be hearing from the Department of Finance, and then we will hear from the Legislative Analyst's
• And I would say that we had the hearing on the learning recovery for We had the hearing on the learning
• So I'm happy to hear that. I have kind of a fundamental... So I'm happy to hear that.

Summary: The committee heard opening public comment and then took up several K-12 budget items in the Governor’s January proposal. On LCFF and necessary small schools, the Department of Finance described a 2.41% COLA, a roughly $2.2 billion increase for districts and charters, and a $30.7 million ongoing augmentation to raise necessary small schools funding by 20%. The LAO supported funding the COLA and said the small schools proposal had merit, but questioned the 20% figure and warned about a sharp funding cliff around the enrollment thresholds. Members and witnesses repeatedly raised declining enrollment, attendance, and the need to align funding with outcomes and local cost pressures. The chair and several members also asked whether consolidation, shared administration, or alternative formulas could better address small district costs, and the issue was left open for further discussion. The panel then discussed special education equalization. Finance proposed $509 million ongoing Proposition 98 funding to raise the statewide special education base rate to $999 per ADA, which would fully equalize SELPA base rates; the LAO said the same target could likely be reached with less money under current assumptions. CDE strongly supported equalization as an equity issue and said about 15% of students are identified with disabilities, with identification rising by roughly 20,000 to 25,000 students per year. Members raised concerns about staffing shortages, high caseloads, and the need to use any additional funds for inclusive practices, alternative diploma pathways, and the extraordinary cost pool. The committee also discussed whether the budget language should reflect the $509 million amount or the $999 rate, and the item was held open. For the Learning Recovery Emergency Block Grant, Finance proposed restoring $757.3 million one-time to complete the program, while the LAO recommended approval because learning loss remains unresolved and districts have generally used the funds for tutoring, supplemental instruction, and other academic supports. CDE explained that LEAs must revisit their needs assessments and that many districts are using the funds alongside other support systems, but members pressed for clearer accountability and better data on how much money actually goes to tutoring or other direct services. The committee then reviewed the Student Support and Professional Development Discretionary Block Grant, with Finance proposing $2.8 billion one-time and the LAO saying discretionary funding can help districts address local priorities but should be paired with fiscal oversight and possibly more targeted priorities. Members split between supporting flexibility for local needs and worrying that the grant could be used to cover ongoing structural deficits without clear evidence of student-outcome gains; the issue was also held open. Finally, the committee heard a high-level overview of school facilities funding under Proposition 2, with Finance proposing to continue $1.5 billion in bond spending in 2026-27. OPSC said that at the current pace all Prop 2 K-12 funds would likely be exhausted around 2029-30, and that demand is shifting toward modernization as enrollment declines in many areas. Members asked about school closures, reuse of unused sites, and the new small school district facilities program, which OPSC said is moving toward proposed regulations and would begin accepting modernization applications in November 2026 and new construction applications in January 2027. The committee also briefly noted community college facilities funding and asked for more information later in the process.