Electrical transmission infrastructure: financing.

Senator Padilla's electrical transmission infrastructure proposal would establish state-authorized pilot projects to develop and finance new power lines needed for California's clean energy transition. The legislation enables the Governor to designate state agencies, local governments, tribal organizations, or joint powers authorities to implement transmission projects that the Independent System Operator has identified as necessary for meeting state clean energy targets.

The bill creates a framework for alternative financing and development approaches aimed at reducing costs compared to traditional utility-owned transmission. Designated entities could develop, finance, operate and maintain transmission lines, with the option to lease operations or sell usage rights while maintaining California balancing authority control. The bill's findings cite California Independent System Operator estimates that the state requires $45.8-63.2 billion in new transmission infrastructure to meet projected energy demand and 2045 clean energy goals.

Projects would need to demonstrate cost reductions for ratepayers and use project labor agreements with skilled workers. The Joint Legislative Budget Committee would review the Governor's project eligibility determinations within 30 days, with projects deemed eligible if the committee takes no action. Local public agencies could apply individually or as groups to implement pilot projects under guidelines to be issued by the Governor.