Transmission Financing

AB 3264 Transmission Financing and Ownership Report

Public Input Received on Working Concepts in Transmission Financing and Ownership. 

Assembly Bill (AB) 3264 (Petrie-2024 Norris, 2024) established section 913.10 of the Public Utilities Code, which requires the CPUC to issue a study with  findings and recommendations to "reduce the cost to ratepayers of expanding the state's electrical transmission grid" as will be necessary to reduce greenhouse gas emissions. Primary solutions to reduce the cost of new  transmission projects include changes to financing and ownership  models, as well as other strategies to  develop projects to lower costs.    Below are the 20 sets of comments received on Working Concepts in Transmission Ownership on March 25, 2026. These comments will inform the final report to be published later in 2026.

COMMENTS RECEIVED:

• Turn Utility Reform Network (TURN) 
• American Clean Power (ACP) 
• Bay Area Municipal Transmission Group (BAMx) 
• City and County of San Francisco (CCSF)
• Clean Power Alliance of Southern California (CPA) 
• E. Smeloff
• Environmental Defense Fund (EDF)
  • Beyond the Wires
• Fervo Energy
• Horizon West Transmission (HWT)
• Large-Scale Solar Association (LSA) and Solar Energy Industry Association (SEIA)
• LS Power Grid CA
• Peninsula Clean Energy
• PG&E 
• Public Advocates Office
• SCE
• SDG&E
• Sonoma Clean Power Authority (SCP)
• State Water Contractors (SWC)
• Viridon California LLC

For any question on the AB 3264 Transmission Financing and Ownership Report, please contact txfinancing@cpuc.ca.gov.

Proposition 4

Senate Bill (SB) 867 (Dodd, 2024) authorized a $10 billion bond measure entitled the “Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024.” California voters subsequently approved this measure as Proposition 4 on the November 2024 ballot. Prop 4 authorizes the issuance of $10 billion in bonds to finance environmental protection, water infrastructure, energy, and flood protection projects. Prop 4 also makes several investments in electrical transmission infrastructure, including $325 million for “clean energy transmission projects necessary to meet the state’s clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects.” 

The Governor’s 2026-2027 Budget proposes that this funding be allocated to implement the new Transmission Infrastructure Accelerator approved in SB 254 (See the Transmission Infrastructure Accelerator below). 

California Transmission Infrastructure Accelerator

Senate Bill  254 (Becker, 2025) requires the Energy Unit within GO-Biz, by December 31, 2026, to establish a Transmission Infrastructure Accelerator in coordination with the CPUC, CEC, California ISO, and IBank to (1) develop a financing and development strategy for transmission projects eligible to receive California Transmission Accelerator financing; and (2) coordinate the state’s ongoing activities related to transmission planning and development.

SB 254 further requires the Transmission Infrastructure Accelerator to develop a public-private partnership financing and development plan by July 1, 2027, to facilitate transmission development and achieve ratepayer savings.

Finally, SB 254 establishes the Transmission Accelerator Revolving Fund Program, administered by IBank, to provide financial assistance for identified eligible
transmission projects through January 1, 2031.