Electricity: climate credits.

Assembly Member Irwin's proposal to modify California's electricity climate credit system would change how utilities distribute greenhouse gas allowance revenues to residential customers. The measure requires electrical corporations to apply these credits during July, August, and September, unless extreme circumstances prompt the Public Utilities Commission to alter the timing. The bill also transforms the credit structure from a flat rate to one based on actual electricity consumption.

Under current law, utilities must credit revenues from greenhouse gas allowances directly to residential, small business, and emissions-intensive trade-exposed retail customers. The new provisions maintain the Public Utilities Commission's authority to allocate up to 15 percent of these revenues to clean energy and efficiency projects, provided they lack other funding sources and meet statutory requirements. Electrical corporations must continue implementing customer outreach plans through billing notices and media communications to inform the public about the credits, with associated costs recoverable through utility rates.

The measure retains existing enforcement mechanisms that classify violations of Public Utilities Commission directives as criminal offenses. While the bill creates a state-mandated local program, it includes no reimbursement requirement for local agencies, as any costs would stem from changes to crime definitions or penalties under California constitutional provisions.