Assembly BillFailedPublic Utilities
AB 1404: Electrical corporations: connections: affordable housing projects.
What AB 1404 does, verified February 3, 2026
The bill aims to require electrical corporations to connect affordable housing projects to the electrical distribution grid within 60 days. If the project is ready to connect but has not been connected within the 60-day timeframe, the Public Utilities Commission will streamline the review process. The bill also delays the effective date of a rate increase approved by the commission if the electrical corporation took more than 90 days to provide a final contract or more than 60 days to connect the most recently completed affordable housing project. This provision aims to prevent electrical corporations from delaying the connection of affordable housing projects, which is a crime under existing law.
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
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| 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. 23, 2025 | In committee: Hearing postponed by committee. |
| Apr. 22, 2025 | Re-referred to Com. on U. & E. |
| Apr. 21, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended. |
Latest bill textAmended version, April 21, 2025 · 975 words
| Amended IN Assembly April 21, 2025 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 1404
| Introduced by Assembly Member Ortega (Principal coauthor: Senator Valladares) |
February 21, 2025 |
An act to add and repeal Section 783.3 to of the Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S DIGEST
AB 1404, as amended, Ortega. Electrical corporations: connections: affordable housing projects.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires the commission to enforce the rules governing the extension of service by a gas or electrical corporation to new residential, commercial, agricultural, and industrial customers.
This bill would require an electrical corporation to connect an affordable housing project, as defined, to the electrical distribution grid within 60 days, except as specified. The bill would require the commission to streamline any necessary review on an affordable housing project that is ready to connect but sitting vacant and that has not been connected by an electrical corporation within the required 60 days. The bill would delay the effective date of a rate increase approved by the commission for the greater of either the amount of time the electrical corporation took, beyond 90 days from receipt of the project building plans, to provide a final contract, or the amount of time the electrical corporation took, beyond the 60 days allowed, to connect the most recently completed affordable housing project within the electrical corporation’s service area. The bill would repeal these provisions on January 1, 2029.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because the above requirements would be a part of the act, and a violation of a commission action implementing the above-described provisions would be a crime, this 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.
The people of the State of California do enact as follows:
SECTION 1.
(a) In 2024, the Public Utilities Commission approved six Pacific Gas and Electric Company rate increases, an average of one approval every 60 days, while hundreds of newly built affordable housing units were ready to connect to the electrical distribution grid but sat vacant.(b) The Public Utilities Commission and utility companies move quickly when it relates to rate increases but find explanations for delay when it comes to affordable housing projects that are ready to connect to the electrical distribution grid but are sitting vacant.
(c) Delays are caused by the utility company’s failure to provide a final utility installation contract for the affordable housing project, and other delays are caused by the utility company’s failure to install the work contracted for work for, for many months or even years.
(d) The California Tax Credit Allocation makes preliminary awards of tax credits for affordable housing, but the tax credits only take effect when the project is occupied. The electrical corporations do not prioritize connecting completed affordable housing projects so they can be occupied.
SEC. 2.
Section 783.3 is added to the Public Utilities Code, to read:783.3.
(a) For purposes of this section, all of the following definitions apply:(1) “Affordable housing project” means a project that is supported by any form of tax subsidy within the jurisdiction of the California Tax Credit Allocation Committee. Committee and the electrical corporation has been notified in writing by the affordable housing developer that the project has been approved for funding by the California Tax Credit Allocation Committee.
(2) “Connect” means to physically connect an affordable housing project to the electrical distribution grid of an electrical corporation, including providing all work necessary to make the connection effective.
(3) “Ready” means the phase in an affordable housing project in which all necessary inspections, certifications, and permits needed to connect have been completed and the affordable housing project site is accessible to an electrical corporation to connect to the electrical distribution grid. grid and the connection is the next step for affordable housing occupancy and is within the full discretion of the electrical corporation.
(b) Except for health and safety reasons, an electrical corporation shall have 60 days to connect an affordable housing project that is ready to connect to the electrical distribution grid but is sitting vacant.
(c) The commission shall streamline any necessary review of an affordable housing project that is ready to connect but sitting vacant and that has not been connected by an electrical corporation within the required 60 days.
(d) The effective date of a rate increase approved by the commission shall be delayed for the greater of either the amount of time the electrical corporation took, beyond 90 days from receipt of the project building plans, to provide a final contract, or the amount of time the electrical corporation took, beyond the 60 days allowed pursuant to subdivision (b), to connect the most recently completed affordable housing project within the electrical corporation’s service area.
(e) This section shall remain in effect only until January 1, 2029, and as of that date is repealed.
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.Text of AB 1404 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions