By Brandon García, California Director at Advanced Energy United
Edited by Paul Gerke
The 2025-26 legislative session in California has concluded, leaving behind a complex legacy of grid modernization, ambitious electrification goals, and a renewed, albeit contested, focus on energy affordability. As the state grapples with the dual pressures of climate change and rising utility costs, lawmakers have deployed a "toolbox" approach—leveraging a series of strategic bills designed to integrate distributed energy resources (DERs), streamline transmission development, and maximize the efficiency of existing electrical infrastructure.
While the session saw significant wins for the advanced energy sector, it was not without its friction points. The interplay between legislative intent and executive action underscored the ongoing challenge of balancing large-scale utility operations with the growing demand for decentralized, consumer-owned power.
The Strategic Shift: Modernizing the Grid
At the heart of the 2025-26 legislative agenda was a fundamental question: How can California optimize its existing grid to accommodate a rapidly electrifying economy without incurring the prohibitive costs of wholesale infrastructure expansion?
The answer, as articulated by the legislature, lies in better utilization of current assets and the integration of customer-owned resources. By shifting from a centralized, top-down model to one that empowers distributed energy, California is attempting to build a more resilient, responsive, and cost-effective energy ecosystem.
Key Legislative Milestones
The following chronology captures the essential legislative actions that defined the session:
- Senate Bill (SB) 913 (Becker): Signed into law, this bill creates a vital pathway for distributed energy resources (DERs) to qualify for Resource Adequacy (RA) capacity. By allowing energy provided from behind the customer meter to be formally recognized, the state has opened the door for hundreds of megawatts of local, clean energy to stabilize the grid.
- Senate Bill (SB) 868 (Weiner): This legislation focuses on accessibility, streamlining the deployment of portable solar generation devices. It addresses a long-standing equity gap, ensuring that solar benefits are no longer the exclusive domain of single-family homeowners.
- Senate Bill (SB) 905 (Becker): A cornerstone of grid efficiency, SB 905 mandates reforms for how Investor-Owned Utilities (IOUs) are assigned return on equity and financed. It introduces transparency by requiring IOUs to disclose grid utilization data to the California Public Utilities Commission (CPUC).
- Assembly Bill (AB) 2493 (Petrie-Norris): Addressing the "bottleneck" of the energy transition, this bill establishes a transmission development monitor. It mandates that the CPUC track progress on interconnection projects and enforces remedial actions for delays within the control of utility providers.
- Assembly Bill (AB) 2313 (Berman): This bill targets the "last mile" of electrification, providing financial incentives for residents to switch from natural gas to electric appliances during planned service line replacements, ensuring the transition is economically viable for consumers.
Supporting Data: The Voter Mandate
The legislative push toward advanced energy is not merely a political preference; it is a direct response to a public mandate. Data from the California Energy Future initiative underscores a significant disconnect between the current regulatory environment and the desires of the electorate:
- 70% of Californians support the freedom to use their own energy technology to reduce their utility bills.
- 87% of voters demand easier access to smart, clean energy technologies, particularly for those who do not own their own homes.
- 69% of Californians prioritize getting more out of the existing grid rather than building new, expensive infrastructure.
- 80% of voters are calling for faster, more transparent upgrades to the transmission grid to bring clean energy online.
- 77% of Californians express a strong desire for renewable energy projects to be situated within their own communities.
These metrics suggest that the legislative agenda is, in many ways, playing catch-up with a public that is increasingly energy-literate and concerned about affordability.
The "Factor This" Perspective: Efficiency and Accountability
The passage of SB 905 is perhaps the most significant "common-sense" victory of the session. By requiring IOUs to report on how they utilize existing infrastructure, the bill creates a mechanism for accountability. For too long, the default solution to grid congestion has been to build more. SB 905 forces a pivot: demonstrate that the current grid is at capacity before requesting capital for new projects.
Similarly, AB 2493 represents a critical shift in the relationship between regulators and transmission developers. By establishing a "monitor" to track delays, the bill moves beyond passive oversight and into active management. When developers are held accountable for their timelines, projects move faster, power reaches the grid sooner, and the overall cost of the energy transition is dampened.
The Veto: A Missed Opportunity for Community Solar
Despite the overall momentum, the session ended on a note of disappointment for many advocates. Governor Newsom’s veto of Assembly Bill 1813 (Ward), which would have enabled robust community solar programs, stands as a major obstacle to the democratization of energy.
Community solar is the primary vehicle for renters, low-income households, and those living in multi-family dwellings to participate in the clean energy transition. By failing to sign this bill, the state has effectively sidelined a large segment of the population that is eager to lower their energy bills through renewable access. This veto highlights a persistent tension: while the legislature is pushing toward localized energy, the executive branch remains cautious about the regulatory and financial impacts of such programs on existing utility models.
Implications for the Future: The Road Ahead
The 2025-26 session has laid a foundation, but the true test of these policies lies in their implementation. The creation of a "transmission development monitor" under AB 2493 or the inclusion of DERs in RA capacity under SB 913 are only as effective as the CPUC’s rule-making processes that follow.
The Challenge of Implementation
The transition to a cleaner, more affordable grid is not a static event. It requires:
- Regulatory Vigilance: Ensuring that IOUs do not use "reliability" as a shield to justify unnecessary capital expenditure.
- Equity in Electrification: Moving beyond the "early adopter" phase to ensure that low-to-moderate income households are the primary beneficiaries of AB 2313 and related incentives.
- Cross-Sector Collaboration: Bridging the gap between the legislature, which sets the vision, and the executive agencies, which must manage the technical and financial logistics of an aging grid.
As California looks toward the next session, the focus must shift from authorizing new frameworks to ensuring that the existing ones deliver tangible, on-bill savings for consumers. The energy transition is not just a technological challenge; it is an economic imperative. If the state can successfully integrate these new tools, it will cement its position as a global leader in advanced energy. If, however, the implementation of these laws is bogged down by administrative inertia or further executive hesitation, California risks losing the trust of a public that is desperate for relief.
The progress made this year is undeniable, but it remains a work in progress. For those interested in the granular details of these developments, the path forward will be documented through the ongoing policy analysis provided by organizations like Advanced Energy United.
About the Author
Brandon García serves as the California Director at Advanced Energy United. His professional career is defined by a commitment to the nexus of public policy and the advanced energy sector. With a background that spans five years within the California Legislature—serving as Legislative Director for Senator Eloise Gomez Reyes—and four years in private sector advocacy focused on zero-emission infrastructure, transportation, and energy, García brings a holistic understanding of how policy moves from concept to statute. His work is centered on building a, reliable, and affordable energy system that reflects the needs of a modern, decarbonized California.
