AB 2175 (Garcia) – Renewable electrical generation facilities: multiple meters: aggregation: logistics businesses and manufacturing businesses
Session: 2025–2026
Jurisdiction: California
Status: Re-referred to Utilities and Energy (as of 2026-04-20); amended and re-referred in April 2026
Overview
AB 2175 seeks to expand and adjust California’s net energy metering (NEM) framework and related regulatory definitions to broaden eligibility for aggregation of meters and to clarify and extend regulatory treatment for microgrids, logistics and manufacturing sectors, and certain distributed energy resources. The bill contains a broad recasting of the definition of “electrical corporation,” introduces microgrid governance options, and adds eligibility for aggregated multi-meter setups under NEM-like programs for specific business types.
Key purposes and intent
- Expand regulatory authority and scope: revise the definition of “electrical corporation” to broaden PUC oversight and adjust exemptions, including microgrids and certain distributed energy resources (DERs).
- Support microgrids and safe interconnection: authorize the Energy Commission to develop microgrid safety standards and optional governance guidelines for local governments; preserve PUC jurisdiction over interconnection while removing rate/safety jurisdiction for microgrids themselves.
- Facilitate meter aggregation for eligible customers: ensure logistics businesses and manufacturing businesses can aggregate loads from multiple meters for NEM purposes, expanding opportunities for multi-meter customers to participate in renewable generation aggregation.
- Promote distributed energy and energy storage use: clarify DER and microgrid treatment, and permit interconnection and metering arrangements that support on-site generation and storage while protecting other ratepayers.
What the bill would change (substantive provisions)
- Definitions and regulatory scope:
- Redefines “electrical corporation,” narrowing or removing certain exemptions, thereby broadening PUC oversight; adds exemptions for certain DERs with on-site storage and limited, non-site-specific use.
- Exempts microgrids that primarily serve their own included load from PUC rate/safety jurisdiction, but keeps PUC interconnection jurisdiction.
- Microgrids (new Section 8373):
- Requires microgrid operators to obtain local rights-of-way approvals and comply with local safety/building codes.
- Allows Energy Commission to issue safety standards and governance guidelines; microgrids would not be under PUC rate/operational regulation, but interconnection remains under PUC oversight.
- Defines microgrid boundaries as a single controllable entity for interconnection purposes.
- Net Energy Metering and aggregation (Sections 2827 and related):
- Requires the commission to ensure logistics and manufacturing businesses are eligible customer-generators eligible for aggregating multiple meters, if the commission extends the program.
- Governs aggregation across meters on properties owned/leased by the same customer-generator; sets allocation rules if aggregation is chosen.
- Aggregation would permanently remove eligibility for net surplus electricity compensation for the aggregated load, with kilowatt-hours exceeding aggregated load treated as utility retention.
- Allocation of generated energy across meters with different rate schedules (proportional allocation).
- Establishes metering, billing, and cost-recovery rules, including charges for billing services when aggregating.
- Local publicly owned utilities and electrical cooperatives would require ratemaking authorities to determine non-revenue impacts before permitting multi-meter aggregation; if deemed non-impactful, aggregation would be allowed.
- Net energy metering program caps and timelines for large utilities, with ongoing reporting requirements to track progress toward program limits.
- Electrical service provider and procurement definitions (Sections 218, 218.3, 394):
- Updates to how service providers and aggregators are defined and registered; maintains a framework for provider registration with criminal history checks and financial/technical viability standards.
- Miscellaneous:
- Minor conforming changes to various sections to align with the broader redefinitions and microgrid provisions.
- No new state-wide reimbursement requirement; clarifies that cost shifts to non-NEM customers should not occur.
Who would be affected
- Electrical corporations (regulated by the PUC) and local publicly owned electric utilities (LPEUs) and electrical cooperatives, through updated definitions and aggregation rules.
- Microgrid operators, including those serving manufacturing or logistics operations, due to interconnection and governance provisions.
- Logistics and manufacturing businesses seeking to aggregate loads across multiple meters for NEM-like programs.
- Local and state energy regulators (PUC and Energy Commission) with added oversight and governance responsibilities.
- Residential and small commercial customers remain subject to existing NEM rules, with potential extensions for multi-meter aggregation in specified sectors.
Timeline and procedural notes
- Bill text indicates amendments and re-references in April 2026; action history shows ongoing committee consideration in 2026.
- If enacted, the bill would implement changes through amendments to multiple Public Utilities Code sections (216, 218, 218.3, 394, 399.12, 780.5, 8340) and by adding Section 8373.
- The bill would require regulatory actions by the PUC and Energy Commission, including development of safety standards and governance guidelines for microgrids, and potentially new tariffs/contracts to accommodate aggregation for eligible customer-generators.
- Some provisions are subject to implementation timelines and determinations by regulatory authorities (e.g., Commission determinations on aggregation feasibility and rate impacts).
Notes
- The bill contemplates criminal-law implications for certain regulatory actions, creating a crime for noncompliance with Commission actions, which would trigger state-mandated local program considerations.
- Final details, including cost and rate impact, depend on regulatory rulemaking and potential amendments during floor consideration and committee processes.
