Transcript Highlights:

• And we're 500 megawatts of load with energy-intensive, trade-exposed load that can really utilize energy
• with energy intense, trade-exposed load that can really utilize energy efficiency.
• , powering data centers can't... ...to account for this new load.
• on top of those so that we can adequately forecast and plan for that.
• They produce a demand forecast.

Summary: The committee hearing covered a long agenda of energy, utility, and data-center bills, with members hearing extensive testimony on affordability, ratepayer protections, wildfire liability, and grid planning. Several measures were presented by Assembly Member Irwin and others, including AB 2182 on industrial energy efficiency incentives, AB 2396 on allowing community choice aggregators to develop transmission projects, AB 2589 on returning federal tax savings to ratepayers, AB 2508 on shifting public purpose program costs off utility bills, AB 1577 on data center reporting, and AB 2383 on large energy-use facility rate design. The chair noted the hearing began without a quorum and later proceeded once quorum was established for the data-center and AB 2383 votes. AB 2182 and AB 2589 were discussed but not acted on during the portion shown, while AB 2396 drew substantial debate over wildfire liability, financing, and whether CCAs should be allowed to own transmission lines. AB 2508 generated the most divided policy discussion, with supporters arguing that public purpose programs and energy efficiency costs should not be borne by ratepayers and should instead be funded through the Greenhouse Gas Reduction Fund or other public sources. Opponents warned that moving those programs to GGRF would threaten funding stability, undermine cost-effective efficiency programs, and jeopardize important safety-net and wildfire-related spending; wildfire survivor advocates asked for amendments to ensure victims are paid first before any reallocation. Committee members raised concerns about whether GGRF is an appropriate and stable funding source, and several said they could not support the bill as drafted. AB 1577, requiring data centers to report energy, water, and noise information, passed on a 10-1 vote after supporters said the bill would help local and state planners manage rapid load growth, while opponents argued it was burdensome, duplicative, and could expose proprietary or security-sensitive information. AB 2383, which would direct the CPUC to create a new rate structure for large energy-use facilities and require long-term contracts to prevent cost shifts and stranded assets, also drew strong support and opposition. The Little Hoover Commission and NRDC backed the bill as a way to protect ratepayers from data-center-related costs, while CCAs, the Chamber of Commerce, manufacturers, and petroleum interests objected to the bill’s scope and to CPUC oversight, especially as it could affect CCAs and other large users beyond data centers. After discussion about preserving local authority and avoiding stranded costs, the committee approved AB 2383 on a 13-0 vote and left the roll open for absent members. The hearing then moved to AB 1774, a wildfire accountability bill by Assembly Member Berman, which was introduced with testimony from fire survivors and consumer advocates emphasizing the need to verify that utility wildfire mitigation spending is actually performed before ratepayers are charged.

Transcript Highlights:

• That includes the large load forecasting, large load interconnection standards, net metering, and transmission
• Thanks to the data team that you all granted us, on the matter of the large load forecast, we concur
• Establishing an accurate load forecast is absolutely critical to ensuring that we don't construct unnecessary
• But if the load forecast materializes, we're going to need a lot more of that type of generation.
• Those same requirements could be used to effectively filter down the load forecast to a realistic number

Committee: Senate Business & Commerce

Summary: The Senate Committee on Business and Commerce convened to discuss critical infrastructure and supply chain integrity, particularly focusing on Texas's power grid and associated vulnerabilities. The meeting highlighted Texas's recent ranking as 10th in electricity affordability, emphasizing the state's commitment to maintaining a reliable and resilient electric grid. New committee members introduced themselves, and the agenda included testimony from ERCOT and the Public Utility Commission regarding the implementation of the Lone Star Infrastructure Protection Act, which aims to mitigate risks posed by foreign entities to the power grid. Chad Sealy from ERCOT presented updates on the attestation process for market participants, revealing that over 1,500 entities had submitted attestations regarding their corporate structures and affiliations with designated foreign countries. Concerns were raised about the adequacy of the current vetting process, particularly regarding indirect relationships with foreign adversaries. Testimonies from the PUC and the Attorney General's office underscored the challenges of enforcing compliance and the need for improved legislative measures to enhance oversight and security. The committee also heard from experts, including Dr. Emma Stewart from Idaho National Laboratory, who discussed the evolving threats to the grid from foreign adversaries and the importance of securing communication systems. Recommendations included prioritizing inspections of critical components and enhancing collaboration with national laboratories to address vulnerabilities. The discussion concluded with an acknowledgment of the balance needed between ensuring grid security and maintaining affordability for consumers.

Transcript Highlights:

• </c> expansion uh that's a pretty big load expansion uh that's a pretty big load about<00:09:08.080><
• forecast, which is what we did in our integrated resource planning process, and then go to them and
• </c><00:34:42.960><c> We</c><00:34:43.119><c> need</c> forecasts indicate right now.
• We need forecasts indicate right now.
• </c><00:43:42.960><c> we've</c> We see from many of the forecasts we've We see from many of the forecasts

Summary: The Artificial Intelligence Task Force held its third meeting and adopted the prior minutes after a motion and second. The main presentation came from John Bevington of LG&E and KU, who described the utility’s Kentucky service territory, its vertically integrated operations, and its role in economic development. He said the company supported 76 projects in 2024, representing about $3 billion in announced investment and roughly 3,000 jobs, and noted that about 45% of statewide investment announcements were in its service area. He also outlined a large project pipeline of about 8.5 gigawatts, with data centers making up roughly two-thirds of that interest. Bevington explained that data center siting differs from traditional manufacturing site selection because it is driven primarily by transmission access and grid capacity rather than a process of eliminating locations. He said large data centers must locate near transmission lines, that utilities must conduct formal studies to ensure existing customers are not harmed, and that the buildout timeline for utility infrastructure is much longer than for data centers. He cited a Deloitte study and other industry data to argue that power constraints and timeline mismatches are the biggest challenges, while also emphasizing that data centers can generate significant construction activity, indirect jobs, and tax revenue. He said Kentucky’s sales tax exemption for data centers was a key enabler that increased interest in the state. Members asked about the number and size of potential data center projects, how Kentucky compares with other states, and whether regulatory reform is needed. Bevington said the 20 projects in Kentucky reflect current interest, that other states such as Ohio have had similar incentives for years, and that Kentucky is still early in the market. He also said data centers can vary in size, from 200 to 600 megawatts or more, and that they can be located anywhere with sufficient transmission capacity and, in some cases, access to workforce and roads. In response to concerns about energy supply, he said LG&E and KU are pursuing an “all of the above” strategy, including solar, batteries, and new natural gas combined-cycle units, and noted ongoing and proposed projects totaling additional capacity if approved by the Public Service Commission.

Transcript Highlights:

• That includes large load forecasting, large load interconnection standards, net metering, and transmission
• On the matter of the large load forecast, we concur with the legislature and the PUC that the current
• But if the load forecast that materializes is close to any of the numbers that are ahead of us, then
• But if the load forecast that materializes is close to any of the numbers that are ahead of us, then
• Those same requirements could be used to effectively filter down the load forecast to a realistic number

Committee: Senate Business & Commerce

Transcript Highlights:

• Forecast-based rate-making has the advantage of making the utility exercise greater cost control.
• Next, as we've discussed, we're going to have more load growth, and that load growth is going to come
• So, as we've discussed, we're going to have more load growth.
• There are a number of ways you can reduce customer load.
• PG&E has a tariff called the municipal departing load tariff.

Committee: Senate Energy, Utilities and Communications

Summary: The committee heard several energy, water, and utility bills. SB 919 by Senator Grayson would extend the biomethane monetary incentive program through 2030 and authorize additional funding to support renewable natural gas projects by reducing interconnection costs. Supporters said high interconnection costs and the current tax treatment are major barriers to methane reduction projects; opponents, including TURN and environmental groups, raised ratepayer cost concerns and objected to rate-basing and additional public funding. The author said amended language would remove the rate-basing provisions and instead urge the CPUC to act quickly on its pending decision. SB 931 by Senator Laird would reauthorize the Community Impact Mitigation Program for the Diablo Canyon plant through 2030 to continue funding local emergency preparedness, fire protection, public safety, and school district costs. The County of San Luis Obispo and labor groups supported the bill, while TURN opposed it as a statewide ratepayer subsidy that could be funded from existing PG&E revenues instead of higher rates. Members discussed the bill in the context of the 2022 Diablo Canyon extension deal and the possibility of a future longer extension. SB 1215 by Senator Cortese would direct the CPUC to set deployment targets for EV charging in multifamily housing and evaluate progress, with amendments aimed at affordability and limiting system upgrade costs. Supporters said renters are largely locked out of home charging and that prior utility programs proved cost-effective; no opposition testified. SB 1359 by Senator Stern would require more deliberate CPUC review before major gas system investments, emphasizing electrification and non-pipeline alternatives. Gas utilities and several industry groups opposed it, arguing it could undermine the obligation to serve, create safety and reliability risks, and change the regulatory compact. The committee also heard SB 1125 by Senator Menjivar, presented by Senator Gonzalez, which would establish a statewide low-income water rate assistance program upon appropriation. Water agencies, environmental groups, and local governments supported the measure, while one member expressed concern that it lacked a funding source and could not overcome Proposition 218 limits; the bill was moved to Appropriations and the roll was left open. Finally, SB 1098 by Senator Perez would restrict the use of long-running memorandum and balancing accounts by investor-owned utilities, require exceptional circumstances for new accounts, and add sunset and cost-sharing requirements. Consumer advocates and large energy users supported tighter oversight, while the utilities and business groups opposed the bill as too rigid and potentially harmful to flexibility for wildfire, emergency, and safety-related costs.

Transcript Highlights:

• One is their forecast and their load ramp.
• One is their forecast and their load ramp.
• One is their forecast and their load ramp.
• Chair, I'm curious, has APS considered seasonal loads?
• They operate north of a 92% load factor.

Bills: HB2133 , HB2592

Committees: House Artificial Intelligence & Innovation , House House Artificial Intelligence & Innovation Committee of Reference

Keywords: sexual material, consent, synthetic depiction, privacy, internet regulation, rights protection, artificial intelligence, government regulation, innovation, procurement, administrative burdens

Transcript Highlights:

• I mean a lot of it we're having a lot of large load growth.
• And so one of the problems we had was there wasn't accurate forecasting.
• How many large loads, almost all data centers, are in your construction queue.
• And so what part Part of this bill is load forecasting and getting a better grasp so that we as a state
• So these flexible load programs programs, having backup generation, doing better forecasting, all of

Bills: SCR5 , SCR13 , SB3 , SB6 , SB10 , SB12 , SB13 , SB15 , SB17 , SB18 , SB19 , SB24 , SB35 , SB57 , SB65 , SB112 , SB284 , SB290 , SB388 , SB400 , SB402 , SB412 , SB495 , SB499 , SB502 , SB509 , SB621 , SB706 , SB740 , SB815 , SB842 , SB854 , SB875 , SB893 , SB917 , SB974 , SB1025 , SB1061 , SB1073 , SB1106 , SB1268 , SB1281 , SB1300 , SB1362 , SB1379 , SB1447 , SB1451 , SB1555 , SB1902 , SJR36 , SJR12 , SCR13 , SCR25 , SCR5 , SCR22 , SCR12 , SCR24 , SB495 , SB412 , SB10 , SB18 , SB565 , SB372 , SB842 , SB765 , SB62 , SB19 , SB666 , SB707 , SB888 , SB687 , SB706 , SB847 , SB290 , SB13 , SB1248 , SB740 , SB14 , SB1006 , SB504 , SB917 , SB925 , SB388 , SB1902 , SB1121 , SB995 , SB857 , SB305 , SB296 , SB284 , SB35 , SB6 , SB815 , SB3 , SB1281 , SB1379 , SB1300 , SB1497 , SB1499 , SB1498 , SB1451 , SB1061 , SB15 , SB65 , SB241 , SB304 , SB402 , SB499 , SB621 , SB974 , SB1023 , SB1024 , SB1025 , SB1106 , SB686 , SB112 , SB371 , SB204 , SB400 , SB609 , SB1447 , SB670 , SB502 , SB427 , SB850 , SB854 , SB413 , SB1555 , SB1362 , SB1346 , SB1033 , SB1220 , SB1073 , SB810 , SB987 , SB1539 , SB893 , SB447 , SB875 , SB406 , SB509 , SB985 , SB965 , SB17 , SB1119 , SB1505 , SB12 , SB24 , SB57 , SB1194 , SB1253 , SB1215 , SB1532 , SB1268 , SB1302 , SB856 , SB650 , SB583 , SB673 , SB840 , SJR57 , SCR8 , SB213 , SB681 , SB1172 , SB1252 , SB378 , SB610 , SB918 , SB1343 , SB608 , SB487 , SB955 , SB957 , SB988 , SB990 , SB1019 , SB1021 , SB1120 , SB251 , SB958 , SB535 , SB761 , SB1 , SB541 , SB315 , SB379 , SB1018 , SB1737 , SB266 , SB1415 , SB3 , SB6 , SB15 , SB35 , SB290 , SB706 , SB842 , SB917 , SB1281 , SB1451 , SB1902 , SB12 , SB13 , SB17 , SB19 , SB388 , SR261 , SR265 , SR276 , SR277 , SR281 , SR286 , SR293 , SCR5 , SCR13 , SB2425 , SB2880 , SB10 , SB12 , SB13 , SB17 , SB18 , SB19 , SB388 , SB412 , SB495 , SB2425 , SB2880

Keywords: SCR 5, Senate Concurrent Resolution 5, Texas School for the Deaf, TSD, Robert Rives, gymnasium naming, building naming, honorary resolution, commemorative resolution, deaf education, hard of hearing, Gallaudet University, alumni hall of fame, football coach, school facility naming, education K-16, State Affairs, Texas Legislature, public school tribute, water rights

Transcript Highlights:

• For those instances where costs truly cannot be forecast...
• For those instances where costs truly cannot be forecast...
• Next, as we've discussed, we're going to have more load growth, and that load growth is going to come
• So, as we've discussed, we're going to have more load growth.
• PG&E has a tariff called the municipal departing load tariff.

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:

• We did a similar slide in September, representing the September forecast.
• This represents the most recent November transportation revenue forecast.
• This represents the most recent November transportation revenue forecast.
• What has primarily changed in those two forecasts is a slightly more negative, pessimistic forecast with
• Imagine the load it would take even off the ferry system.

Bills: SB6005

Committee: Senate Transportation

Keywords: transportation budget, transportation appropriations, capital budget, supplemental budget, Washington State Department of Transportation, WSDOT, Washington State Patrol, Department of Licensing, ferries, Puget Sound ferries, tolling, express toll lanes, highway safety, traffic safety, impaired driving, ignition interlock, speed cameras, transit funding, public transit, multimodal transportation

Transcript Highlights:

• So to be counted in load forecasting, data center projects have advanced from speculative and exploratory
• So what you're going to see here is data center and large load growth forecasts that are in the LT are
• So to be counted in load forecasting,<01:17:30.080><c> data</c><01:17:30.400><c> center</c><01:17:30.640
• ><c> are</c> and large load growth forecasts that are and large load growth forecasts that are in<01:
• . loads. loads.

Committee: Senate Energy, Utilities, Environment, and Climate

Transcript Highlights:

• And we're 500 megawatts of load with energy intense, trade-exposed load that can really utilize energy
• , powering data centers can't... ...to account for this new load.
• on top of those so that we can adequately forecast and plan for that.
• of large load or infrastructure investments in the electric grid.
• They produce a demand forecast.

Committee: House Utilities and Energy

Transcript Highlights:

• I want to talk about curtailing data center loads.
• If data centers curtailed loads and local utilities, and those utilities reduce their loads on BPA, then
• To reach these goals, we do need a reliable grid and accurate resource forecasting.
• To reach these goals, we do need a reliable grid and accurate resource forecasting.
• To reach these goals, we do need a reliable grid and accurate resource forecasting.

Bills: HB2338 , HB2367 , HB2426 , HB2606

Committee: Senate Environment, Energy & Technology

Keywords: weatherization, energy efficiency, community projects, sustainability, environment, coal-fired plant, preferential treatment, energy policy, electric generation, regulatory reform, pollution control, efficiency, appeals process, environmental regulation, hearing board, data protection, privacy, performance measures, reporting requirements, office of privacy

Transcript Highlights:

• The CPUC regulates the investor-owned utilities in California, regulating 75% of the electric load in
• And every two years, portfolio administrators have the opportunity to update that portfolio forecast
• its budgets and associated forecasts.
• My colleague, Laurel, is going to talk about the loading order, so I won't go into that.
• And energy efficiency is currently first in the loading order.

Summary: The Assembly Committee on Utilities and Energy held a hearing on how California Public Utilities Commission energy efficiency programs are budgeted, evaluated, and measured for cost-effectiveness. The chair framed the issue as not whether energy efficiency works, but how to ensure ratepayer-funded programs continue to deliver value as the portfolio has shifted from simple measures like lighting to more complex retrofits, electrification, workforce, and equity programs. CPUC staff outlined the statutory framework, the four-year budget cycle, recent spending of about $795 million in 2025, and the use of total system benefit (TSB) and the total resource cost (TRC) test, noting that some programs are exempt from cost-effectiveness requirements at the individual program level but not at the resource acquisition portfolio level. Utility, regional network, implementer, and advocacy witnesses offered differing views on the current metrics. PG&E described its portfolio as cost-effective overall and argued that cost-effectiveness should remain at the portfolio level to allow innovation and multi-year program flexibility. SoCalREN and the Energy Coalition emphasized the value of local government delivery, equity-focused programs, and the need to credit programs for broader benefits such as workforce development, market transformation, and electrification. The Public Advocates Office argued that ratepayer-funded programs should produce benefits greater than costs and raised concerns about the growing share of budgets going to programs that have not met cost-effectiveness thresholds. Several witnesses said the current math is too complicated and that different program types may need different metrics. Committee members repeatedly pressed witnesses on the complexity of the TRC and TSB calculations, the treatment of participant costs, and whether the state should use a simpler or more transparent framework. CPUC staff said the relevant issues are already being addressed in two open proceedings, with one budget application proceeding expected to conclude in roughly the second or third quarter of next year and a broader policy rulemaking ongoing. No votes were taken and no formal action was reported; the hearing functioned as an informational discussion and policy review.

Transcript Highlights:

• Slide 9 shows the executive's ongoing revenue forecast.
• OSPBB's revenue forecast.
• So we're front-loading in this budget.
• below the base revenue forecast?
• Every single forecast that's ever been given is wrong.

Summary: The committee met to review the governor’s fiscal 2027 budget presentation, with the chair repeatedly asking members to keep questions brief and avoid speeches. The discussion focused first on the overall revenue and spending outlook, including concerns from members that the executive forecast was more optimistic than the JLBC baseline and that the budget appeared to front-load revenue and expenditure growth. The governor’s budget team said the forecast was close to JLBC’s, that the budget was structurally balanced, and that differences were roughly $100 million per year on ongoing revenue. Members asked for follow-up calculations in writing, including the total multi-year gap and the amount of revenue enhancements above base revenues. A major portion of the meeting centered on tax and fee proposals tied to data centers, water use, and sports betting. The governor’s team defended eliminating the existing data center tax incentive as the removal of a loophole rather than a new tax, arguing the incentive had already succeeded in attracting major investment. They also described a proposed Department of Water Resources fee-setting authority for data centers to support a new Colorado River Protection Fund, and said the proposal would apply to existing and future facilities without a grandfather clause. Members raised concerns about fairness, competitiveness, and whether the changes would require a supermajority vote. The team also discussed increased sports betting fees, saying the revenue forecast did not include dynamic behavioral effects. The committee then moved through major spending areas, including corrections, public safety, border security, cybersecurity, K-12 education, Medicaid, and developmental disabilities. The governor’s budget includes ongoing funding to prevent correctional officer pay cuts, money to comply with prison health care court orders, probation funding, body-worn cameras, law enforcement staffing, fentanyl task forces, and cyber readiness grants. Members questioned the lack of funding for a prison oversight committee and asked for corrections spending totals over the administration. On border security, the executive said it was seeking about $759.7 million in federal reimbursement for border-related costs and that the governor had met with federal officials, including Secretary Noem and Tom Homan, about the request. In education, the budget proposes renewing Prop. 123, adding K-12 base funding, and issuing $1.5 billion in school facilities bonds over three years; members debated whether the proposal was appropriate and whether Prop. 123 revenues could support the debt service. The meeting also covered AHCCCS cost growth and federal HR1 impacts, with the executive warning of major coverage losses and hospital funding reductions, and DDD funding, where the governor’s team said the budget fully funds services and includes about $120 million in supplemental needs. No votes were taken; the meeting was a presentation and question-and-answer session only.

Transcript Highlights:

• This need has been made evident in recent forecasting by the California Independent System Operator,
• This need has been made evident in recent forecasting by the California Independent System Operator,
• This need has been made evident in recent forecasting by the California Independent System Operator,
• The CPUC, under a recent general order, required the front-loading of much of the environmental review
• Today, dozens of load-serving entities, including IOUs, CCAs, and others, are forced to comply for a

Summary: The Assembly Committee on Utilities and Energy heard several bills focused on grid reliability, affordability, clean energy infrastructure, and industrial decarbonization. AB 222, by Assemblymember Bauer-Kahan, would require more data reporting on data centers and aim to prevent ratepayers from bearing related grid costs; supporters said better information is needed to plan for rapidly growing electricity demand from AI and data centers, while opponents warned about privacy, security, trade-secret, and cost-shifting concerns. The bill passed the committee on a 13-4 vote, with the roll left open for absent members. AB 941, by Assemblymember Bonta, would impose a 270-day timeline for CPUC review of priority transmission projects to speed clean-energy infrastructure buildout. Supporters argued that transmission delays are slowing California’s climate goals and raising costs, while opponents raised concerns about CEQA process, staffing, and prioritization. The bill passed 15-0. AB 1191, by Assemblymember Tangipa, would make existing large hydroelectric facilities eligible for the Renewable Portfolio Standard; supporters framed it as a way to lower rates and ease affordability pressures, while opponents said it would undermine the purpose of the RPS by substituting existing resources for new renewable development. That bill failed on a 4-11 vote. AB 1280, by Assemblymember Garcia, would expand state grant programs to support thermal energy storage projects for industrial decarbonization. Supporters said it would help modernize manufacturing, cut pollution in disadvantaged communities, and preserve jobs, with broad support from environmental and clean manufacturing groups and no opposition testimony. The bill passed 17-0. AB 1117, by Assemblymember Schultz, would require the CPUC to offer optional dynamic electricity rate tariffs for customers to shift usage away from peak periods; supporters said it could lower bills and improve grid efficiency, while utilities said they were not opposed to the concept but wanted more flexibility and time in the regulatory process. That bill passed 14-0. The committee also approved its consent calendar and other noncontroversial items, with several measures moving forward unanimously.

Transcript Highlights:

• Zone four is the loading dock area. Zone one work is currently ongoing.
• </c> and some current updates and forecast. and some current updates and forecast.
• Zone four is the loading<00:15:24.560><c> dock</c><00:15:24.880><c> area.
• </c> loading dock area. loading dock area.
• The photo on the right is loading dock.

Transcript Highlights:

• We did a similar slide in September, representing the September forecast.
• This represents the most recent November transportation revenue forecast.
• This represents the most recent November transportation revenue forecast.
• What has primarily changed in those two forecasts is a slightly more negative, pessimistic forecast with
• Imagine the load it would take even off the ferry system.

Summary: The Senate Transportation Committee met on January 13, 2026, for a work session on Governor Ferguson’s proposed 2026 supplemental transportation budget and a public hearing on Senate Bill 6005, which makes supplemental transportation appropriations for the 2025–27 biennium. Committee staff reviewed the transportation budget outlook, noting that the 2025 session had balanced the transportation budget over four years with significant new revenues, but that recent fuel-tax and Climate Commitment Act forecasts had softened the long-term outlook. Staff and the governor’s budget team said the proposal still leaves the budget in positive shape while addressing major needs such as preservation, ferry replacement, maintenance, and the state self-insurance account. The governor’s office described a $16.8 billion transportation budget proposal centered on preservation and maintenance, including $3.1 billion in bonding for eligible preservation projects, $1.1 billion for three new ferries, additional ferry preservation funding, pavement and bridge work, maintenance funding, County Road Administration Board startup money, State Patrol communications upgrades, DOL service access improvements, dredging for the Lower Columbia River, and restored regional mobility grant funding. Committee members asked about ferry capacity, DOL mobile offices, self-insurance costs, and whether additional preservation money could be used in 2026. Testifiers from cities, counties, labor, ports, construction, business, and environmental groups generally supported the emphasis on preservation, ferry reliability, local road funding, and freight projects, while some urged broader transit and rail investment and one witness criticized the budget’s spending approach. During public testimony on SB 6005, speakers from Bainbridge Island and ferry communities supported ferry investments and reliability improvements; local government and labor representatives backed preservation funding and better working conditions for transportation workers; business and construction groups endorsed maintenance, paving, bridge repair, and the Lower Columbia dredging item; and port and environmental advocates supported freight, port electrification, and rail funding. One witness raised concerns about the cost and long-term implications of hybrid-electric ferry maintenance, and another urged restraint in spending. The hearing ended after testimony, with the chair noting the sign-in tally and adjourning the committee without a vote on the bill.

Transcript Highlights:

• SB 1138 supports energy affordability by allowing LSEs to transact RA load obligations hourly to align
• Load obligations can be transacted hourly to align with the granularity of the requirements, reducing
• Allowing us to trade those obligations among different load-serving entities would be more efficient
• The load-serving entities need to call on that resource.
• If you're participating in this program, there's compensation from the load-serving entity.

Committee: Senate Energy, Utilities and Communications

Summary: The committee heard several energy, telecommunications, and regulatory bills. SB 929 by Senator Jones would require the California Energy Commission chair to appear annually and report to the Legislature on the commission’s activities, plans, and outreach; it was presented as a low-cost oversight measure and drew no opposition. SB 1138 by Senator Padilla would let load-serving entities trade hourly resource adequacy obligations under the CPUC’s slice-of-day framework to reduce overprocurement and lower ratepayer costs; supporters said it could save tens of millions of dollars, while questions focused on reliability and whether savings would reach customers. SB 913 by Senator Becker would create a clearer pathway for customer-sited distributed energy resources, such as home batteries and smart thermostats, to participate in resource adequacy markets; supporters said it would unlock existing clean capacity and reduce costs, and members asked about reliability, opt-in participation, and compensation for homeowners. The committee also heard SB 1197 by Senator Niello, which would move California to permanent standard time if federal law allows, with testimony from a sleep medicine physician supporting the health and safety benefits of ending the time switch and opposition from golf industry representatives who urged a broader analysis of economic, recreational, and public safety impacts. Members debated whether the 2018 voter approval required another vote and whether Congress would need to act. SB 1265 by Senator Richardson would codify and expand the Go Green financing program by creating a new fund and allowing broader partnerships beyond current IOU service areas; supporters said it would expand access to clean energy financing statewide. SB 1337 by Senator Richardson would create a working group to coordinate fuel transition policy and refinery-related issues following SB 237, with supporters emphasizing the need for better interagency coordination and some members asking how it would avoid duplicative work. The committee also considered SB 1191 by Senator Ochoa Bogh, which would extend the California High-Cost Fund A and B programs for rural telephone service through 2033; supporters said the surcharge-funded program is essential for affordable service and emergency connectivity in remote areas. After discussion, the committee adopted amendments where offered and voted all of the bills out of committee, generally on unanimous or near-unanimous votes, with SB 1265 receiving one no vote. Several bills were held on call briefly and then later passed when the committee reconvened, and the hearing adjourned after all listed measures were reported out.

Transcript Highlights:

• as the CPUC, regulates the investor-owned utilities in California, regulating 75% of the electric load
• And every two years, portfolio administrators have the opportunity to update that portfolio forecast
• its budgets and associated forecasts.
• My colleague, Laurel, is going to talk about the loading order, so I won't go into that.
• And energy efficiency is currently first in the loading order.

Committee: House Utilities and Energy

Transcript Highlights:

• This need has been made evident in recent forecasting by the California Independent System Operator,
• The CPUC, under a recent general order, required the front-loading of much of the environmental review
• The CPUC, under a recent general order, required the front loading of much of the environmental review
• Today, dozens of load-serving entities, including IOUs, CCAs, and others, are forced to comply for a
• Guidelines, it applies to all, you know, of the utilities and load-serving entities and customers, or

Committee: House Utilities and Energy

Summary: The Assembly Committee on Utilities and Energy heard a lengthy agenda, with AB 222 on data centers, AB 941 on CPUC permitting timelines for priority electrical infrastructure, AB 1191 on large hydroelectric resources and the RPS, AB 1280 on thermal energy storage for industrial decarbonization, and AB 1117 on dynamic electricity rate tariffs among the main items discussed. The committee also dispensed with a consent calendar of several other bills, which passed unanimously. Members repeatedly emphasized California’s clean energy goals, grid reliability, affordability, and the need to balance faster infrastructure buildout with environmental review and ratepayer protections. AB 222, by Assembly Member Bauer-Kahan, would require better reporting on data center energy use and aim to protect residential ratepayers from costs tied to data center growth. Supporters said the bill would improve grid planning and prevent blackouts, while environmental groups backed it. Opponents from the Data Center Coalition and business groups warned about privacy, security, trade-secret, and feasibility concerns, and argued the bill could discourage critical infrastructure. The committee approved the bill 11-3 and sent it to Privacy and Consumer Protection. AB 941, by Assembly Member Zbur, would impose a 270-day timeline for CPUC review of certain priority transmission and electrical infrastructure projects. Supporters said the bill would speed clean energy transmission without weakening CEQA, while opponents raised staffing and process concerns. The committee passed the bill 15-0 to Natural Resources. AB 1191, by Assembly Member Tangipa, would make large hydroelectric facilities RPS-eligible; supporters framed it as an affordability measure, but opponents said it would undermine the purpose of the RPS and raise costs. The committee rejected the bill 4-11, though the author requested reconsideration. AB 1280, by Assembly Member Garcia, would expand grant programs to include thermal energy storage for industrial decarbonization; it drew broad support and passed 15-0. AB 1117, by Assembly Member Schultz, would require utilities to offer optional dynamic rate tariffs to all ratepayers; supporters said it would lower bills and shift demand to cheaper, cleaner periods, while utilities said they supported the concept but wanted more flexibility in implementation. The hearing continued with discussion of that bill after the point shown in the transcript.