Article 10 - Energy Unit

California Government Code — §§ 12100.110-12100.112

Sections (3)

Amended by Stats. 2025, Ch. 119, Sec. 4. (SB 254) Effective September 19, 2025.

(a)The Energy Unit is hereby created within the Governor’s Office of Business and Economic Development.
(b)The Governor shall appoint a deputy director who shall have direct authority over the Energy Unit and serve at the pleasure of the Governor.
(c)The purpose of the Energy Unit is to accelerate the planning, financing, and execution of critical energy infrastructure projects that are necessary for the state to reach its climate, energy, and sustainability policy goals.
(d)The Energy Unit shall work with energy project developers and load-serving entities, as defined in Section 380 of the Public Utilities Code, to identify

barriers to construction and development of critical energy infrastructure projects and to make recommendations to relevant state agencies and local governments on how to overcome those barriers.

(e)The Energy Unit shall create a working group that includes local and federal partners to address land use issues related to critical energy infrastructure projects.
(f)In organizing and managing the Energy Unit, the deputy director shall establish and implement a process to coordinate between the state’s climate and energy agencies in order to identify the critical energy infrastructure projects that will form the operational mandate of the Energy Unit.
(g)In operating the Energy Unit, the deputy director shall cooperate with local, regional, federal, and California public and private businesses and investors to

eliminate barriers to the completion of critical energy infrastructure projects.

(h)The Energy Unit, in coordination with the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, the Independent System Operator, the California Infrastructure and Economic Development Bank, and other agencies and external parties as appropriate and necessary, shall establish a Transmission Infrastructure Accelerator to develop a financing and development strategy for eligible transmission projects to receive California Transmission Accelerator financing under Article 10.5 (commencing with Section 63049.71) of Chapter 2 of Division 1 of Title 6.7. The accelerator shall take the necessary steps within its purview to accelerate the development and deployment of those projects to maximize ratepayer savings.
(i)The Energy Unit’s work shall complement, not conflict with, efforts by the state’s climate and energy agencies.
(j)This section, and the Energy Unit’s implementation of this section, does not change the regulatory authority of the state’s climate and energy agencies.
(k)(1) On or before February 1 of each year, the Energy Unit shall annually submit a report to the relevant policy and fiscal committees of the Legislature that includes all of the following information:

(A) The infrastructure priorities identified for purposes of the prior calendar year.

(B) The constituencies coordinated with in order to advance those infrastructure priorities in the prior calendar year.

(C) The strategies implemented and steps taken to address barriers to and advance critical energy infrastructure projects in the prior calendar year.

(D) Any recommendations to the Legislature that would accelerate the Energy Unit’s progress.

(2)A

report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795.

Added by Stats. 2025, Ch. 119, Sec. 5. (SB 254) Effective September 19, 2025.

(a)The Transmission Infrastructure Accelerator established pursuant to Section 12100.110 shall coordinate, as soon as practicable after the effective date of this section but no later than December 31, 2026, the state’s ongoing activities related to transmission planning and development, in order to minimize duplicative efforts and efficiently achieve the objectives of this section and Article 10.5 (commencing with Section 63049.71) of Chapter 2 of Division 1 of Title 6.7. The accelerator shall sequence its activities in identifying and developing eligible transmission projects in a manner consistent with the Independent System Operator’s procedures and requirements and shall provide maximum transparency. Core objectives of the accelerator shall be to drive efficiencies in state transmission development

efforts, coordinate existing workstreams to maximize effectiveness, and minimize duplicative activity across all relevant venues.

(b)The accelerator shall ensure that the accelerator projects meet the following criteria:
(1)Have at least one interconnection point within the Independent System Operator balancing authority area.
(2)The applicant or its affiliates have previously completed a transmission project in the state.
(3)Support new high voltage transmission facilities that are subject to the competitive solicitation process administered by the Independent System Operator that are consistent with the state’s reliability and greenhouse gas policy objectives.
(4)Reduce its cost

recovery requests by the amount of savings achieved through tax credits received under Sections 17039 and 23036 of the Revenue and Taxation Code.

(5)Commit to requesting a revenue requirement at the Federal Energy Regulatory Commission that reflects only its actual capital structure and the actual cost of capital to minimize the costs collected through the transmission access charge.
(6)Financial considerations, as determined by the accelerator.
(7)Consistency with state policy as determined by the state agencies coordinating with the accelerator.
(c)The accelerator shall evaluate the results of the Independent System Operator’s transmission planning process and shall select which accelerator projects have the opportunity to receive public financing

using the California Transmission Accelerator Revolving Fund established under Article 10.5 (commencing with Section 63049.71) of Chapter 2 of Division 1 of Title 6.7. The selection of accelerator projects under this section shall happen within 60 days of the release of the Independent System Operator’s Transmission Planning Process document that identifies competitive transmission projects.

(d)The accelerator shall maintain a list of qualified public entities interested in participating in eligible transmission projects.
(e)The accelerator shall continuously monitor project development performance and engage to support effective implementation using all appropriate powers and authorities available to the accelerator and coordinating agencies. These actions may include, but are not limited to, all of the following:
(1)Engaging local public and private actors relevant to project development success.
(2)Supporting efforts of the project applicant to secure necessary permits and other relevant authorities.
(3)Leveraging state incentives and supply chain facilitation services to ensure timely and cost-effective acquisition of physical components of the project.
(f)For purposes of this section, the definitions in Section 63049.71 shall apply.

Added by Stats. 2025, Ch. 119, Sec. 6. (SB 254) Effective September 19, 2025.

(a)The accelerator shall develop a public-private partnership plan to develop financing options that maximize debt financing to reduce overall capital costs and facilitate public-private partnership development of eligible transmission projects to achieve ratepayer savings.
(b)The plan shall do both of the following:
(1)Evaluate the role of the accelerator to identify and develop public-private partnerships and matching participating parties with public sponsors, including, but not limited to, the accelerator designating a public entity to support the implementation of eligible transmission projects under Article 10.5 (commencing with Section 63049.71) of Chapter 2 of

Division 1 of Title 6.7 before the Independent System Operator receives bids and determines the outcome of the competitive bidding process.

(2)Effectuate eligible transmission project development that is consistent with the Independent System Operator’s procedures and requirements.
(c)The accelerator shall submit its public private partnership plan to the Legislature on or before July 1, 2027.
(d)For purposes of this section, the definitions in Section 63049.71 shall apply.