Electrical transmission infrastructure: financing.

Senator Padilla's electrical transmission infrastructure legislation authorizes the Governor to establish pilot projects for developing and financing transmission lines essential to California's clean energy goals. The bill creates a framework for state agencies, local authorities, and tribal organizations to implement these projects, with oversight from the Joint Legislative Budget Committee.

Under the new provisions, pilot projects must meet specific criteria, including identification by the Independent System Operator as necessary for competitive bidding, demonstrated cost reductions for ratepayers, and construction by experienced contractors. The transmission infrastructure may be leased or sold to public or private entities but must remain under the control of a California balancing authority. Local public agencies can apply to implement projects, and implementing entities must structure their revenue requirements to reflect actual capital costs.

The legislation requires pilot project owners to participate in the state's Wildfire Fund, with contribution amounts determined by the Fund Administrator based on transmission line mileage in high fire-threat districts. Project owners must maintain insurance coverage, submit wildfire mitigation plans to the Office of Energy Infrastructure Safety, and may recover associated costs through federal transmission revenue requirements. The Office will review mitigation plans and monitor wildfire safety performance for all pilot projects.