By Brandon García(California Director at Advanced Energy United) Edited by Paul Gerke
Main Facts
California’s 2025–26 legislative session concluded with a sweeping package of energy laws designed to reshape the state’s energy landscape. Spearheaded by robust collaboration between lawmakers, advocacy groups, and industry stakeholders, the newly enacted statutes take direct aim at some of the most persistent hurdles in modernizing the electrical grid: integrating distributed energy resources (DERs), streamlining project deployment, expanding clean energy access to renters and underserved communities, and mitigating skyrocketing utility bills.
Among the legislative victories are Senate Bill (SB) 913, which creates a long-term resource adequacy pathway for customer-owned distributed energy resources; SB 868, which accelerates the deployment of portable solar generation technologies; SB 905, which optimizes the existing grid footprint to defer costly new builds; Assembly Bill (AB) 2493, which establishes strict monitoring and accountability measures for transmission developers; and AB 2313, which incentivizes residential electrification over gas pipeline replacements.
However, the session was not without significant setbacks. In a surprising late-hour move, Governor Gavin Newsom vetoed AB 1813, a measure that would have established a comprehensive community solar subscription framework—sparking sharp criticism from clean energy advocates who view community solar as vital to equitable energy access.
Chronology of the 2025–26 Legislative Session
The evolution of California’s latest energy policy framework unfolded across several key milestones throughout the legislative calendar:
Early 2025 (Session Kickoff): Lawmakers and energy coalitions, including Advanced Energy United, identified grid reliability, soaring electricity rates, and interconnection bottlenecks as the top legislative priorities for the 2025–26 session. Public polling data indicating broad voter demand for energy freedom and localized generation served as a foundational catalyst for bill drafting.
Spring 2025 (Committee Introductions): Key bills addressing distributed energy integration (SB 913), portable solar access (SB 868), and grid asset utilization (SB 905) were introduced in the Senate by authors such as Senators Josh Becker and Scott Weiner. Concurrently, Assembly members brought forward measures targeting infrastructure accountability (AB 2493 by Cottie Petrie-Norris) and electrification cost parity (AB 2313 by Marc Berman).
Summer 2025 (Floor Votes and Amendments): Navigating intense lobbying from both investor-owned utilities (IOUs) and consumer advocates, the package underwent rigorous refinement. Lawmakers emphasized the necessity of extracting maximum value from the existing grid rather than defaulting to expensive, consumer-funded infrastructure expansion.
Late Summer / Final Days of Session (The Final Push): The legislature successfully passed the core slate of energy affordability and grid-modernization bills, sending them to Governor Newsom’s desk. Simultaneously, AB 1813—the community solar bill authored by Assemblymember Chris Ward—cleared the legislature on the final day of the session, raising immense hopes among renters and low-income advocates.
Fall 2026 (Executive Action and Implementation): Governor Newsom signed the majority of the clean energy package, unlocking new market pathways for customer-owned resources and reinforcing state accountability measures. However, the subsequent veto of AB 1813 cast a shadow over an otherwise progressive legislative tally, shifting the immediate focus toward effective regulatory implementation at the California Public Utilities Commission (CPUC).
Supporting Data and Public Sentiment
The legislative push was heavily influenced by public opinion research highlighting a profound disconnect between consumer desires and traditional utility frameworks. According to data compiled by the California Energy Future campaign:
70% of Californians express a direct desire for the freedom to utilize their own on-site energy technology to actively lower their monthly utility bills.
87% of residents agree that homeownership should not be a prerequisite for accessing clean, smart energy technologies, underscoring the urgent need for renter-inclusive policies.
69% of voters favor maximizing the efficiency and capacity of the electrical grid already in place rather than defaulting to expensive, ratepayer-funded infrastructure projects.
80% of the electorate demands faster timelines and stronger accountability measures for upgrading transmission and generation interconnections.
77% of Californians support the development of renewable energy projects directly within their own local communities.
These statistics formed the empirical backbone for the legislative arguments put forward by Advanced Energy United and allied organizations, proving that grid modernization and clean energy expansion enjoy overwhelming bipartisan and cross-demographic support.
Official Responses and Perspectives
Bridging the Market for Customer-Owned Resources (SB 913)
Advanced Energy United championed SB 913, authored by Senator Josh Becker, as a multi-year priority to dismantle regulatory roadblocks.
"More than 70% of Californians want the freedom to use their own energy technology to lower their energy bills," noted Brandon García, California Director at Advanced Energy United. "SB 913 will give Californians more tools to save money, put more affordable clean energy on the grid, and make our grid stronger and more reliable."
Historically, California’s strict regulatory structures limited distributed energy resources (DERs) from fully participating in the state’s resource adequacy (RA) program and long-term planning. SB 913 reshapes this dynamic by allowing eligible DERs—such as customer-sited storage and smart technologies—to receive official capacity credit for energy supplied past the meter. This transition introduces hundreds of megawatts of clean, localized energy into the supply pool, driving market competition and enhancing grid resilience.
Democratizing Solar Access (SB 868)
Recognizing that clean energy adoption has historically skewed toward affluent homeowners, Senator Scott Weiner authored SB 868 to streamline the deployment of portable solar generation devices.
"Being a homeowner shouldn’t be a requirement to access clean energy," García emphasized. "87% of Californians agree and want easier access to smart, clean energy technologies. SB 868 is a meaningful step in the right direction, giving renters and apartment dwellers the choice to receive the benefits of clean energy."
Maximizing Grid Efficiency (SB 905)
To combat rising electricity costs driven by unnecessary infrastructure buildouts, Senator Becker introduced SB 905. The law reforms how investor-owned utilities (IOUs) are assigned return on equity (ROE) and finance new projects, while mandating transparent disclosures of grid utilization rates to the CPUC.
"69% of Californians want to get more out of the grid we already have, and the Governor took that to heart," said García. "SB 905 is about utilizing more of the grid we’ve already built so more customers can be served without driving up costs. It’s a common-sense policy solution that holds utilities accountable while finding more ways to make our energy system more affordable."
Holding Developers Accountable (AB 2493)
Interconnection delays have long plagued California’s clean energy pipeline. Assemblymember Cottie Petrie-Norris authored AB 2493 to mandate the creation of a dedicated transmission development monitor within the CPUC. This monitor tracks project timelines and can direct mandatory remedial actions for delays within a utility’s control.
"California has waited long enough for the clean energy generation and transmission it needs," García stated. "With 80% of voters saying they want upgrades to move faster, AB 2493 is a straightforward step to making that happen. Holding developers accountable for delays means projects can get built, power can come online faster, and electricity becomes more affordable for all Californians."
Cost-Effective Electrification (AB 2313)
Authored by Assemblymember Marc Berman, AB 2313 addresses the economic friction associated with transitioning away from fossil fuels by providing financial incentives for residential customers to electrify when service lines face planned replacements, capping costs relative to natural gas pipeline replacements.
"The benefits of electrification can only reach all Californians if they can afford to make the switch," noted García. "AB 2313 gives customers more options while protecting all ratepayers from added costs. This bill provides a practical way to make electrification work for Californians."
The Community Solar Veto Controversy (AB 1813)
The session’s most prominent disappointment came when Governor Newsom vetoed AB 1813, authored by Assemblymember Chris Ward. The bill would have established a structured renewable energy subscription framework to bring community solar projects to renters and low-income households.
"77% of Californians want renewable energy projects in their own communities, yet Governor Newsom just vetoed a bill that would have made it easier," García remarked. "At a time when Californians are desperate for lower energy bills, why make it harder to access affordable, local power?"
Implications for California’s Energy Future
The 2025–26 legislative package marks a pragmatic evolution in California’s energy policy. Rather than relying solely on massive, centralized infrastructure projects, the state is increasingly leaning into decentralized, market-driven mechanisms.
Reliability Through Distributed Assets: By integrating customer-owned resources into resource adequacy frameworks via SB 913, California is positioning DERs as frontline defenders against grid stress during peak demand hours.
Equity and Inclusion: While the setback on community solar (AB 1813) stings, measures like SB 868 (portable solar) and AB 2313 (electrification incentives) demonstrate a sustained legislative commitment to extending clean energy savings beyond traditional single-family homeowners.
Fiscal Accountability: With soaring utility rates a paramount political concern, laws like SB 905 and AB 2493 establish vital guardrails against unchecked capital expenditure, forcing utilities and transmission developers to optimize existing assets and honor project timelines.
What Comes Next?
The heavy lifting now shifts from the legislature to regulatory agencies, particularly the CPUC, where these laws must be robustly and transparently implemented. Ensuring that the intended consumer benefits materialize without administrative bottlenecks will be the ultimate test for state regulators.
As California continues to navigate the complexities of its clean energy transition, the 2025–26 session has laid a resilient foundation—proving that affordability, reliability, and decarbonization can, and must, go hand in hand.
About the Author
Brandon García is the California Director at Advanced Energy United, where he focuses on advancing policies that strengthen the state’s advanced energy industry and foster a resilient, affordable grid. Prior to joining United, García spent five years in the California Legislature—most recently serving as Legislative Director for Senator Eloise Gomez Reyes across both the Senate and Assembly—and four years in the private sector representing lobbying firms focused on zero-emission infrastructure, advanced transportation, clean energy, and recycling policy.
