AB 942: Electricity: climate credits.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms in regulating those emissions. The implementing regulations adopted by the state board provide for the direct allocation of greenhouse gas allowances to electrical corporations pursuant to a market-based compliance mechanism.

Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations. Existing law requires the PUC to continue a program of assistance to low-income electric and gas customers with annual household incomes that are no greater than 200% of the federal poverty guidelines, as specified, which is referred to as the California Alternate Rates for Energy (CARE) program. Existing law also requires the PUC to continue a program of assistance to residential customers of the state’s 3 largest electrical corporations consisting of households of 3 or more persons with total household annual gross income levels between 200% and 250% of the federal poverty guideline level, which is referred to as the Family Electric Rate Assistance (FERA) program.

Existing law, except as provided, requires revenues received by an electrical corporation as a result of the direct allocation of greenhouse gas allowances to be credited directly to residential, small business, and emissions-intensive trade-exposed retail customers of the electrical corporation, commonly known as the California Climate Credit.

This bill would exclude residential customers from receiving the California Climate Credit if they are not enrolled in the CARE or FERA program and their total electricity bills for the previous year were less than $300.

Under existing law, a violation of the Public Utilities Act, or of an order, decision, rule, direction, demand, or requirement of the commission, is a crime.

Because the provisions of this bill would be part of the Public Utilities Act, and a violation of a commission action implementing its requirements would be a crime, the bill would impose a state-mandated local program.

Sponsors

Sponsors by party (alphabetical): Democratic 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 29, 2025From committee: Do pass and re-refer to Com. on RLS. (Ayes 5. Noes 2.) (August 29). Re-referred to Com. on RLS.
2. August 18, 2025In committee: Referred to suspense file.
3. July 17, 2025Read second time and amended. Re-referred to Com. on APPR.
4. July 16, 2025From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 4.) (July 15).
5. June 18, 2025Referred to Com. on E., U & C.
6. June 4, 2025In Senate. Read first time. To Com. on RLS. for assignment.
7. June 3, 2025Read third time. Passed. Ordered to the Senate. (Ayes 46. Noes 14. Page 2029.)
8. June 3, 2025Assembly Rule 69(d) suspended. (Ayes 56. Noes 17. Page 2028.)
9. June 2, 2025Read third time and amended. Ordered to third reading. (Page 1952.)
10. May 22, 2025Read second time. Ordered to third reading.
11. May 21, 2025From committee: Do pass. (Ayes 9. Noes 1.) (May 21).
12. May 14, 2025In committee: Hearing postponed by committee.