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AB 2518

San Diego Gas and Electric Company: energization pilot program.

2025-2026 Regular Session Introduced by Laurie Davies and 2 co-sponsors

SDGE must energize construction-ready affordable-housing projects within 40 business days and prioritize them over other residential energizations through 2032.

From committee: Do pass and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (June 8). Re-referred to Com. on APPR.
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WeVote Research Nonpartisan
Bill Summary · AB 2518

Summary of AB 2518 (2025-2026) — San Diego Gas and Electric Company: Energization Pilot Program

Purpose and intent

  • AB 2518, introduced by Assembly Member Sharp-Collins, would create a targeted energization pilot program for San Diego Gas and Electric Company (SDGE) focused on affordable housing development projects.
  • The bill aims to accelerate the energization (connection to the electrical grid) of affordable housing, prioritizing such projects over other residential energization projects, under defined conditions.
  • It establishes a time-bound requirement and reporting framework, and it is temporary (in effect until January 1, 2032).

Key provisions and changes

Definitions added (Public Utilities Code § 769.7)

  • Affordable housing development project: A project where at least 100% of dwelling units (excluding resident-manager units) are set aside for lower-income households for at least 55 years, under an affordability restriction.
  • Construction ready: The project phase when all critical steps (inspections, easements, certifications, billing applications, permits) required to energize are completed and the site is accessible to SDGE.
  • Energize: The physical connection of the affordable housing project to SDGE’s electrical distribution grid, including all work needed to make energization effective.
  • SDGE: San Diego Gas and Electric Company.

Energization timeline and prioritization (new § 769.7)

  • SDGE must energize an affordable housing development project within 40 business days from the date SDGE determines the project is “construction ready.”
  • SDGE must prioritize energization of affordable housing projects over other residential energizations, provided safety, reliability, and legal/regulatory compliance are not compromised.
  • The 40-business-day countdown only includes periods when energization steps are within SDGE’s control.
  • If an issue specific to the affordable housing project arises after construction readiness that prevents safe/compliant energization, the 40-day period does not apply until the issue is resolved to mutual satisfaction of SDGE and the project applicant.

Reporting (biannual energization reporting)

  • The bill requires that reporting on energization of affordable housing projects subject to § 769.7 be included in SDGE’s biannual energization reporting to the California Public Utilities Commission (CPUC).
  • This complements existing independent third-party auditing of energization practices and demand growth planning, but narrows the new reporting requirement to include affordable-housing energizations through 2032.

Compliance and fiscal notes

  • The bill clarifies that compliance with § 769.7 is not a violation of Section 453.
  • It explicitly states that no state reimbursement is required for local agencies or school districts arising from this act, consistent with the bill’s status as a state-imposed crime/infraction-related provision (a standard fiscal note provision for certain acts).

Sunset

  • The energization priority and reporting requirements are temporary, ending January 1, 2032, at which point the section is repealed.

Affected entities and scope

  • Primary beneficiary: SDGE and developers of affordable housing projects meeting the defined criteria.
  • Other utilities and customers: The bill allows prioritization only if it does not compromise safety, reliability, or compliance; non-affordable-housing residential projects may experience delays due to the prioritization.
  • Regulatory oversight: CPUC continues to oversee energization practices and reporting, with added focus on affordable housing energizations through the pilot period.

Procedural/timeline highlights

  • Effective only through January 1, 2032.
  • SDGE must energize construction-ready affordable housing projects within 40 business days.
  • Biannual reporting to CPUC must include these energizations.
  • If construction-ready determination occurs after the bill’s effective date, the 40-day clock starts upon that determination.

Overall assessment

AB 2518 creates a focused, temporary framework to accelerate electricity energization for affordable housing in the SDGE service territory, subject to safety and regulatory compliance. It embeds a concrete 40-business-day energization standard, a prioritization mechanism, and enhanced reporting to monitor pilot outcomes.

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

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