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AB 1260

Electricity: renewable energy subscription programs.

2025-2026 Regular Session Introduced by Chris Ward

AB 1260 requires avoided-cost based bill credits that fully reflect the value of community solar plus storage, while capping projects at 5 MW per site and 5 GW statewide.

In committee: Held under submission.
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Bill Summary · AB 1260

AB 1260 — Electricity: renewable energy subscription programs (Ward) — Summary

Status: In committee; held under submission (last action 2025-05-23)
Introduced: February 21, 2025

Purpose / Intent

AB 1260 revises and recasts California law governing customer renewable energy subscription programs (often implemented as community renewable/“community solar” programs). The bill’s principal goals are to: (1) ensure subscriber bill credits reflect the full avoided-cost value of combined community solar and storage resources; (2) encourage development of distributed community solar + storage projects that reduce transmission and distribution needs; and (3) prioritize affordability and access for low‑income and disadvantaged communities.

Key provisions

  • Clarifies terminology and eligibility (affordable housing, low‑income customers, underserved communities, community choice aggregators (CCAs), load‑serving entities, etc.).
  • Requires avoided‑cost‑based bill credits to subscribers that fully reflect the value of community solar and storage resources and be consistent with other distributed energy resources on the distribution system.
  • Facility size limits: participating projects are limited to no more than 5 megawatts (MW) of generation capacity and no more than 5 MW of storage (per facility).
  • Program size/time limits: program subscriptions are capped at a total of 5 gigawatts (GW) of capacity, or the program will stop accepting new subscriptions after 7 years — whichever occurs first.
  • Administrative actions and deadlines:
    • Public Utilities Commission (PUC) must adopt or modify the community renewable energy program to conform with the bill’s requirements on or before September 1, 2026.
    • Each community choice aggregator and electric service provider must notify the PUC within 180 days of the program’s adoption/modification whether it will participate. CCAs and providers may later begin or end participation at any time by notifying the PUC.
    • Beginning 2 years after the program’s adoption or modification, the PUC must evaluate program compliance with statutory requirements and may authorize termination or modification if the program fails to meet them.
  • California Energy Commission must evaluate community solar + storage projects as a “load‑modifying resource” (allowing them to be counted as such) and issue a determination by September 1, 2026.

Who is affected

  • Residential and commercial customers who may subscribe to community solar and storage offerings (with specific focus on low‑income/underserved communities and affordable housing).
  • Project developers and owners (subject to the 5 MW generation / 5 MW storage facility caps).
  • CCAs and electric service providers (required to declare participation and able to opt in/out).
  • The PUC and California Energy Commission (new deadlines and evaluation responsibilities).

Potential impacts

  • Encourages deployment of distributed solar paired with storage that may provide local capacity, reduce distribution/transmission needs, and deliver bill credits to subscribers.
  • The 5 MW per‑site limit promotes smaller, distributed projects rather than large centralized facilities.
  • A 5 GW statewide cap or 7‑year subscription window could limit long‑term scale of the program and accelerate early project development.
  • Emphasis on avoided‑cost valuation could improve subscriber compensation but may affect project economics and financing depending on how avoided costs are calculated.
  • Administrative obligations create state‑mandated duties for local agencies and utilities; bill language states no state reimbursement is required for those costs.

Procedural / Timeline notes

  • Introduced Feb 21, 2025; multiple committee referrals and amendments in April–May 2025; currently held under submission in committee (05/23/25).
  • Key statutory deadlines for state agencies: PUC and Energy Commission actions due by September 1, 2026; PUC program evaluation begins two years after adoption; CCAs/providers must respond within 180 days of program adoption or modification.

For readers seeking further detail: AB 1260 amends Section 769.3 of the Public Utilities Code and includes statutory definitions and procedural requirements; the bill is pending legislative committee action.

Compiled from official sources — confirm details with the bill’s official record.

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