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AB 388

Relating to: grant program for an integrated mental health facility. (FE)

2025-2026 Regular Session Introduced by Dave Armstrong and 13 co-sponsors

Creates a CPUC-established tariff for large private self-generation (>80 MW) that utilities administer at cost to supply industrial loads, with safeguards for ratepayers.

Presented to the Governor on 12-4-2025
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Bill Summary · AB 388

AB 388 (Rogers) — Summary: Electricity

Status: In committee — Held under submission (last action 2025-05-23)
Introduced: February 3, 2025
Subject: Electricity; amendments to definition and regulation of “electrical corporation” and creation of a tariff for large self‑generation projects

Purpose / Intent

AB 388 updates the Public Utilities Code to (1) clarify when privately produced renewable electricity and private distribution lines fall outside the definition of an “electrical corporation,” (2) subject certain private lines to CPUC safety and wildfire requirements, and (3) require the California Public Utilities Commission (CPUC) to evaluate and, if just and reasonable, adopt a tariff for large qualified self‑generation projects (>80,000 kW).

Key provisions

  • Definition change (PU Code §218): Expands exclusions from the “electrical corporation” definition to cover corporations/persons that:
    • Employ specified solar or wind generation, and
    • Transmit electricity exclusively and directly over private electric lines to a single facility owned by a different corporation/person, where the facility uses the electricity only for new load (not departing load), and the facility is an electrolytic hydrogen production facility and/or a facility using electricity for industrial process heat.
  • Private line oversight:
    • Private electric lines that are located on property other than the generator’s or facility’s property must comply with all applicable CPUC General Orders (as determined by the commission), with some exceptions.
    • Entities operating such private lines that lie in high fire‑threat districts must file wildfire mitigation plans with the CPUC.
  • Tariff for large self‑generation projects:
    • By July 1, 2027, the CPUC must evaluate (in a new or existing proceeding) and, if just and reasonable, establish a tariff for “qualified self‑generation projects” with capacity exceeding 80,000 kilowatts (80 MW).
    • The tariff must structure an electrical corporation to act as an intermediary between generation/energy storage facilities and the self‑generation customer; the purchase and resale of electricity under the tariff is to be administered solely at cost.
    • Participating customers must meet eligibility criteria (including using specified generation sources and exclusive direct private‑line transmission).
    • Costs of the tariff are to be borne only by participating customers; nonparticipating customers must not incur additional costs.
    • Load served under this tariff may be excluded from electrical corporations’ procurement requirement calculations (per specified terms).

Who is affected

  • Developers/operators of large private solar or wind projects serving industrial facilities (electrolytic hydrogen producers, industrial process‑heat users).
  • Owners/operators of private electric lines (subject to CPUC General Orders and wildfire plan filing in certain cases).
  • Electrical corporations/utilities (role as intermediary under the tariff; procurement accounting implications).
  • Participating customers (eligible industrial users) and nonparticipating ratepayers (protected from tariff costs).

Timeline & procedural status

  • CPUC action required by July 1, 2027 to evaluate/consider the tariff.
  • Legislative actions: Referred and amended in Assembly Utilities & Energy; passed U. & E. and re‑referred to Assembly Appropriations; held under submission as of May 23, 2025.

Potential impacts / considerations

  • Facilitates large behind‑the‑meter private renewable + storage developments serving industrial electrification (notably hydrogen and process heat), while creating a utility‑mediated pathway to procure and resell electricity at cost.
  • Aims to protect ratepayers from cross‑subsidies and to extend safety and wildfire oversight to certain private lines.
  • May affect electrical corporations’ procurement planning and load forecasts since participating load can be excluded from procurement obligations.
  • Raises regulatory and reliability questions about integration of large private generation, enforcement of private‑line standards, and implications for local grid planning.

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

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