Assembly BillChaptered/SignedPublic Utilities
AB 2518: San Diego Gas and Electric Company: energization pilot program.
What AB 2518 does, verified September 29, 2026
This bill requires San Diego Gas and Electric Company (SDGE) to energize an affordable housing development project within 40 business days of determining the project is construction ready. SDGE must prioritize the energization of affordable housing projects over other residential projects under certain circumstances. The bill also allows SDGE to exclude affordable housing projects from its biannual reporting on customer energization projects, which are currently required by law. This provision is only in effect until January 1, 2032.
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Last action: Chaptered by Secretary of State - Chapter 616, Statutes of 2026. (2026-09-27)Alert me
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| Sep. 27, 2026 | Chaptered by Secretary of State - Chapter 616, Statutes of 2026. |
| Sep. 27, 2026 | Approved by the Governor. |
| Sep. 10, 2026 | Enrolled and presented to the Governor at 3 p.m. |
| Aug. 30, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 6878.). |
| Aug. 28, 2026 | In Assembly. Concurrence in Senate amendments pending. |
Latest bill textChaptered version, September 27, 2026 · 991 words
Assembly Bill No. 2518
CHAPTER 616
An act to add and repeal Section 769.7 of the Public Utilities Code, relating to public utilities.
[ Approved by Governor September 27, 2026. Filed with Secretary of State September 27, 2026. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 2518, Sharp-Collins. San Diego Gas and Electric Company: energization pilot program.
Existing law vests the Public Utilities Commission with regulatory jurisdiction over public utilities, including electrical corporations. Existing law requires each public utility to furnish and maintain adequate, efficient, just, and reasonable service, instrumentalities, equipment, and facilities, as are necessary to promote the safety, health, comfort, and convenience of its patrons, employees, and the public. Existing law prohibits a public utility from making or granting any preference or advantage to any corporation or person, as provided.
This bill would require, until January 1, 2030, San Diego Gas and Electric Company (SDGE) to energize construction-ready projects within specified timeframes, as provided.
Existing law requires the commission to establish annual reporting requirements for electrical corporations to report customer energization projects in order to evaluate the electrical corporation’s fulfillment of timely electrical service. Existing law requires the commission to require each electrical corporation to retain an independent third-party auditor to review the electrical corporation’s business practices and procedures for energizing new customers and how the electrical corporation is planning for demand growth, including new customer energizations. Existing law requires the third-party auditor to report to the commission on a biannual basis.
This bill would require, only until January 1, 2030, reporting on the energization of those construction-ready projects to be included in SDGE’s biannual energization reporting submitted to the commission.
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 provisions of the bill would be part of the act and a violation of a commission action implementing the bill’s requirements 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.
Section 769.7 is added to the Public Utilities Code, to read:769.7.
(a) For purposes of this section, all of the following definitions apply:(1) “Affordable housing development” means the construction of a new structure, or the modification of an existing structure, if not less than 100 percent of the dwelling units in that structure, other than dwelling units that will be occupied by resident managers, are set aside and reserved for lower income households, as defined in Section 50079.5 of the Health and Safety Code, for not less than 55 years pursuant to a recorded affordability restriction.
(2) “Category 1 project” means a development project that is designed to protect, support, or advance the public health, safety, or welfare of the community, and includes only the following types of development projects.
(A) Affordable housing developments.
(B) Development of essential services buildings.
(C) Development of health facilities.
(3) “Category 2 project” means the development of a municipal facility or an electric vehicle charger and charging station.
(4) “Category 3 project” includes the development of any other facility and project type.
(5) “Construction ready” means the phase in a project when all critical dependencies, including, but not limited to, all necessary inspections, easements, certifications, billing applications, and permits required to energize, have been completed and the project site is accessible to SDGE.
(6) “Energize” means the act of physically connecting a project to the electrical distribution grid of SDGE, including the completion of all work necessary to make the energization effective.
(7) “Essential services building” has the same meaning as defined in Section 16007 of the Health and Safety Code.
(8) “Health facility” has the same meaning as defined in Section 1250 of the Health and Safety Code, but also includes a community clinic, as defined in Section 1204 of the Health and Safety Code.
(9) “SDGE” means San Diego Gas and Electric Company.
(b) Notwithstanding any other law, SDGE shall energize construction-ready projects based on the following timelines:
(1) Category 1 projects, within 40 business days of being deemed construction ready.
(2) Category 2 projects, within 55 business days of being deemed construction ready.
(3) Category 3 projects, within 70 business days of being deemed construction ready.
(c) After SDGE determines a project is construction ready, if an issue specific to the project arises that reasonably prevents SDGE from safely and compliantly completing the energization, the period set forth in subdivision (b) shall not apply until the issue has been resolved to the mutual satisfaction of SDGE and the project applicant.
(d) Reporting on the energization of projects subject to this section shall be included in SDGE’s biannual energization reporting submitted to the commission.
(e) SDGE’s compliance with the requirements of this section is not a violation of Section 453.
(f) SDGE’s compliance with this section shall complement, and not conflict with nor supersede, any rule, order, or determination by the commission pursuant to the Powering Up Californians Act (Article 14.5 (commencing with Section 930)).
(g) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 2.
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 2518 as chaptered, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions