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AB 737

Energy: building decarbonization: notice and recordation of a decarbonization charge.

2025-2026 Regular Session Introduced by Sharon Quirk-Silva

AB 737 mandates energy suppliers to notify property owners and buyers of decarbonization charges for energy upgrades, ensuring transparency and informed decisions in California's housing market.

Chaptered by Secretary of State - Chapter 276, Statutes of 2025.
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Bill Summary · AB 737

Summary of AB 737: Energy Decarbonization Charge

Bill Overview

Bill Number: AB 737
Title: Energy: building decarbonization: notice and recordation of a decarbonization charge
Status: Chaptered by Secretary of State - Chapter 276, Statutes of 2025
Introduced: February 18, 2025
Vote Requirement: Majority
Fiscal Committee: Yes
Local Program: Yes

Purpose and Intent

AB 737 aims to enhance transparency for renters and home buyers regarding decarbonization charges associated with energy upgrades on properties. The bill mandates that energy suppliers, including gas corporations, notify property owners and future buyers about any decarbonization charges that may apply due to energy efficiency upgrades.

Key Provisions

  1. Definition of Energy Suppliers: The bill expands the definition of "energy supplier" to include gas corporations, alongside existing entities like electrical corporations and community choice aggregators.

  2. Decarbonization Charge:

    • A "decarbonization charge" is defined as an additional fee on energy bills to recover costs associated with energy upgrades that reduce fossil fuel use and greenhouse gas emissions.
    • For gas corporations, this charge specifically pertains to measures that reduce natural gas consumption.

  3. Notice and Recordation:

    • Energy suppliers must record a notice of the decarbonization charge with the county recorder within 30 days of funding a decarbonization upgrade.
    • The recorded notice must include essential details such as the property address, charge amount, payment period, and a description of the upgrades.

  4. Transferability of Charges: The obligation to pay the decarbonization charge is transferable to any successor subscriber who receives energy services at the property.

  5. No Reimbursement Requirement: The bill specifies that no reimbursement is required for local agencies or school districts for costs mandated by this act.

Impact

  • Affected Parties: The bill primarily impacts property owners, renters, and energy suppliers in California. It ensures that future buyers are aware of any existing decarbonization charges linked to a property, promoting informed decision-making.
  • Transparency: By mandating the recording of decarbonization charges, the bill aims to create a transparent environment for energy upgrades, potentially encouraging more property owners to invest in energy-efficient improvements.

Procedural Aspects

  • The bill was approved by the Governor on October 3, 2025, and has been chaptered into law.
  • It underwent several legislative actions, including amendments and committee reviews, before reaching its final form.

Conclusion

AB 737 represents a significant step towards promoting energy efficiency and transparency in California's housing market. By ensuring that decarbonization charges are clearly communicated and recorded, the bill supports the state's broader goals of reducing greenhouse gas emissions and fostering sustainable energy practices.

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

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