Public utilities: property, franchises, and permits: exemption.

Assembly Member Petrie-Norris's legislation modifies California's regulatory framework for public utility asset transactions by creating new exemptions for certain easement-related dispositions. The measure amends existing Public Utilities Commission (PUC) oversight requirements that mandate commission approval for utilities selling, leasing, or otherwise disposing of assets necessary for public service.

Under the proposed changes, public utilities with annual California revenues of $500 million or more would be exempt from obtaining PUC authorization for easement transactions valued at $100,000 or less. These threshold amounts would adjust every five years starting in 2030 based on the Consumer Price Index for All Urban Consumers. To maintain oversight, utilities must file annual Tier 1 advice letters with the PUC detailing all exempt transactions, including their dates, values, locations, and involved parties.

The legislation preserves existing requirements for larger transactions, maintaining the distinction between those above $5 million, which require a commission order, and those at or below that amount, which proceed through an advice letter process. The PUC retains authority to require more comprehensive review of any transaction if warranted. Unauthorized transactions remain void, and the commission must reject attempts to circumvent thresholds by subdividing larger assets into smaller components.