AB 1347: Electrical modernization zones.

California · Assembly · 2025–2026 Regular Session · last verified February 3, 2026

What AB 1347 does, verified February 3, 2026

The bill aims to modernize the state's electrical infrastructure by identifying six zones where upgrades are needed. These zones will be recognized as high-priority areas for load growth, allowing electrical corporations to expedite upgrades and manage microgrids. The governor's office and the independent system operator will work together to identify the zones, and the public utilities commission will be responsible for authorizing electrical corporations to update their load projections and manage microgrids in these areas. The bill also aims to facilitate the commercialization of microgrids for distribution customers of large electrical corporations.

Bill journey

✓IntroducedComplete

2In CommitteeCurrent

3First Chamber FloorPending

4Second ChamberPending

5GovernorPending

6ChapteredPending

Last action: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. (2026-02-02)Alert me

Author and sponsors

Asm. Juan CarrilloAuthor · California State Assembly

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Recent actions12 total · showing 5

Feb. 02, 2026	From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Jan. 31, 2026	Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
Apr. 30, 2025	In committee: Set, first hearing. Hearing canceled at the request of author.
Apr. 23, 2025	In committee: Hearing postponed by committee.
Apr. 22, 2025	From committee: Do pass and re-refer to Com. on U. & E. (Ayes 7. Noes 0.) (April 22). Re-referred to Com. on U. & E.

Full action history, 7 earlier actionsConnect Plus

Latest bill textAmended version, March 28, 2025 · 1,092 words

Amended IN Assembly March 28, 2025

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 1347

Introduced by Assembly Member Carrillo

February 21, 2025

An act to add Section 933.1 to the Public Utilities Code, relating to electricity.

LEGISLATIVE COUNSEL'S DIGEST

AB 1347, as amended, Carrillo. Electrical modernization zones.

Existing law provides that it is the policy of the state that each electrical corporation upgrade the state’s electrical distribution systems as needed. Existing law requires the Public Utilities Commission (PUC), in consultation with the State Energy Resources Conservation and Development Commission (Energy Commission) and the Independent System Operator (ISO), to take specified actions to facilitate the commercialization of microgrids for distribution customers of large electrical corporations.
This bill would require the Governor’s Office of Business and Economic Development, in conjunction with the ISO, to identify six electrical infrastructure modernization zones, as provided. The bill would require the PUC and the Energy Commission to recognize these zones as load growth priority areas. The bill would authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to work with the local jurisdiction to update its electrical load projections. The bill would require the PUC to authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to expedite cost recovery and to manage microgrids, as specified.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because the provisions of this bill would be a part of the act, and because a violation of a PUC action implementing its requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would make legislative findings and declarations as to the necessity of a special statute for the unincorporated area known as Altadena in the County of Los Angeles.
Existing law requires the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to take specified actions to facilitate the commercialization of microgrids for distribution customers of large electrical corporations.
This bill would state the intent of the Legislature to enact subsequent legislation that would create electric modernization zones in order to meet the needs of high-growth economic areas throughout the state, as specified

Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES

The people of the State of California do enact as follows:

SECTION 1.
The Legislature finds and declares all of the following:
(a) The state is facing unprecedented load growth coupled with increased pressures on affordability.
(b) Although the Legislature, in 2023, enacted the Powering Up Californians Act (Article 14.5 (commencing with Section 930) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code), many jurisdictions continue to face energy constraints.
(c) Delays in providing electricity, including service upgrades, are costly to local cities.
(d) Many local jurisdictions face millions of dollars of lost revenue because of potential delays.
(e) The state needs to look at alternative ways of providing safe and reliable electricity to hard-to-reach areas and customers.

SEC. 2.

Section 933.1 is added to the Public Utilities Code, to read:

933.1.
(a) (1) The Governor’s Office of Business and Economic Development, in conjunction with the Independent System Operator, shall identify six electrical infrastructure modernization zones based on, at a minimum, all of the following indicators:
(A) Need for increased economic development within the local jurisdiction.
(B) Lack of electrical infrastructure and delays in providing timely electrification, or both.
(C) Projected load growth in the local jurisdiction.
(D) Need to build infrastructure with a minimum impact on ratepayers.
(2) The six electrical infrastructure modernization zones identified pursuant to paragraph (1) shall include both of the following zones:
(A) The high desert area, as defined by the Governor’s Office of Business and Economic Development in conjunction with the Independent System Operator.
(B) The unincorporated area known as Altadena in the County of Los Angeles.
(b) For electrical infrastructure modernization zones identified pursuant to subdivision (a), all of the following shall apply:
(1) The commission and the Energy Commission shall recognize the electrical infrastructure modernization zones as load growth priority areas.
(2) An electrical corporation that serves a customer within an electrical infrastructure modernization zone may work with the local jurisdiction to update its electrical load projections.
(3) The commission shall authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to do both of the following:
(A) Expedite cost recovery pursuant to subdivision (a) of Section 937.
(B) Manage a microgrid, upon approval of the local jurisdiction. If the microgrid is not interconnected to the electrical grid, the electrical corporation may collect a fixed charge from a customer of the microgrid. If the electrical corporation is not able to manage the microgrid, a customer may contract with a microgrid provider for up to 10 years with a one-time 10-year renewal process.

SEC. 3.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. 4.
The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique demand for adequate operational electrical infrastructure in the unincorporated area known as Altadena in the County of Los Angeles.

SECTION 1.
It is the intent of the Legislature to enact subsequent legislation that would create, in partnership with the Governor’s Office of Business and Economic Development and the Independent System Operator, electric modernization zones in order to meet the electricity needs of high-growth economic areas throughout California, including, but not limited to, the high desert. It is the intent of the Legislature that the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, and the Department of Fish and Wildlife would work to implement that subsequent legislation.

Text of AB 1347 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions