AB 825

  • California Assembly Bill
  • 2025-2026 Regular Session
  • Introduced in Assembly
  • Passed Assembly Jun 05, 2025
  • Passed Senate Sep 13, 2025
  • Signed by Governor Sep 19, 2025

Independent System Operator: independent regional organization.

Abstract

(1) Existing law provides for the establishment of an Independent System Operator (ISO) as a nonprofit public benefit corporation and requires the ISO to ensure efficient use and reliable operation of the electrical transmission grid consistent with achieving planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council. Existing law, the Clean Energy and Pollution Reduction Act of 2015, provides for the transformation of the ISO into a regional organization, with the approval of the Legislature, pursuant to a specified process. That process provides that modifications to the ISO's governance structure, through changes to its bylaws or other corporate governance documents, will not become effective until the ISO, the Public Utilities Commission (PUC) , the State Energy Resources Conservation and Development Commission (Energy Commission) , the State Air Resources Board (state board) , the Governor, and the Legislature take specified actions on or before January 1, 2019. This bill would delete the above-described provisions providing for the transformation of the ISO into a regional organization. The bill would authorize the ISO and the electrical corporations that are participating transmission owners whose transmission systems are operated by the ISO to use voluntary energy markets governed by an independent regional organization, only if specified requirements are satisfied. The bill would authorize the ISO, on or after January 1, 2028, to implement tariff modifications accepted by the Federal Energy Regulatory Commission to operate the energy markets whose rules are governed by an independent regional organization if the governing board of the ISO has adopted a resolution, as specified, finding that each of the specified requirements have been, or will be, adopted by the independent regional organization. The bill would require the PUC to make a determination through a formal decision in an existing or new proceeding that these requirements have been satisfied before electrical corporations participate in an energy market governed by an independent regional organization. The bill would require the ISO to maintain the necessary technical capability to operate energy markets, as specified, and would require the ISO to continue its functions and responsibilities as a balancing authority, as provided. This bill would require the ISO to develop, publish, and annually update a report on certain activities of the ISO and, if applicable, an independent regional organization, as provided. The bill would require the chair of the board of governors and the chief executive officer of the ISO to annually appear before the appropriate policy committees of the Legislature to present the report, as specified. (2) Existing law establishes the California Renewables Portfolio Standard Program, which requires the PUC to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, at specified percentages of the total kilowatthours sold to their retail end-customers during specified compliance periods. The program, consistent with the goals of procuring the least-cost and best-fit eligible renewable energy resources that meet project viability principles, requires that all retail sellers procure a balanced portfolio of electricity products from eligible renewable energy resources, as specified, referred to as the portfolio content category requirements. This bill would require the PUC and the Energy Commission to coordinate to revise any relevant rules, regulations, or guidance to ensure that the transition to a regional energy market governed by the ISO or the independent regional organization does not expand the types of transactions that meet the portfolio content category requirements, as compared to the transactions that would otherwise meet those requirements on December 31, 2025. (3) Existing law requires the Power Exchange to provide an efficient competitive auction, open on a nondiscriminatory basis to all suppliers, that meets the loads of all exchange customers at efficient prices, and authorizes the Power Exchange governing board to form appropriate technical advisory committees composed of market and nonmarket participants to advise the governing board on relevant issues. This bill would delete these provisions. (4) Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the PUC is a crime. Because certain provisions of this bill would be part of the act and a violation of a PUC action implementing the bill's requirements would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Sponsors (3)

Votes


Actions


Sep 19, 2025

California State Legislature

Approved by the Governor.

California State Legislature

Chaptered by Secretary of State - Chapter 116, Statutes of 2025.

Sep 13, 2025

Assembly

Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 74. Noes 1. Page 3490.).

Assembly

Assembly Rule 63 suspended. (Page 3490.)

Assembly

Joint Rules 61(a)(14) and 51(a)(4) suspended. (Ayes 59. Noes 20. Page 3413.)

Senate

Read third time. Passed. Ordered to the Assembly. (Ayes 34. Noes 0. Page 3050.).

Assembly

In Assembly. Concurrence in Senate amendments pending.

California State Legislature

Enrolled and presented to the Governor at 1:30 p.m.

Sep 12, 2025

Senate

Read second time. Ordered to third reading.

Senate

Senate Rule 29 suspended. (Page 2961.)

Senate

Joint Rule 10.5 suspended. (Ayes 29. Noes 8. Page 2958.)

Sep 11, 2025

Senate

Assembly suspended Joint Rule 62(a). (Page 3312.)

Senate

From committee: Do pass. (Ayes 12. Noes 0.) (September 11).

Sep 10, 2025

Senate

Joint Rules 61 and 62(a) suspended. (Ayes 30. Noes 8. Page 2760.)

Senate

Re-referred to Com. on E., U & C.

  • Referral-Committee
Com. on E., U & C.

Senate

Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(C).

  • Referral-Committee
Com. on RLS. pursuant to Senate Rule 29.10(C).

Senate

Read third time and amended. Ordered to second reading.

Aug 29, 2025

Senate

From committee: Do pass. (Ayes 5. Noes 2.) (August 29).

Senate

Read second time. Ordered to third reading.

Aug 18, 2025

Senate

In committee: Referred to suspense file.

  • Referral-Committee
suspense file.

Jul 16, 2025

Senate

From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 1.) (July 15). Re-referred to Com. on APPR.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on APPR.

Jul 14, 2025

Senate

From committee: Do pass and re-refer to Com. on E., U & C. (Ayes 8. Noes 3.) (July 14). Re-referred to Com. on E., U & C.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on E., U & C.

Jul 09, 2025

Senate

Re-referred to Coms. on B. P. & E.D. and E., U & C.

  • Referral-Committee
Coms. on B. P. & E.D. and E., U & C.

Senate

Withdrawn from committee.

Jun 18, 2025

Senate

Referred to Coms. on E., U & C. and B. P. & E.D.

  • Referral-Committee
Coms. on E., U & C. and B. P. & E.D.

Jun 09, 2025

Senate

In Senate. Read first time. To Com. on RLS. for assignment.

Jun 05, 2025

Assembly

Read third time. Passed. Ordered to the Senate. (Ayes 57. Noes 5. Page 2106.)

Jun 04, 2025

Assembly

Read second time. Ordered to third reading.

Jun 03, 2025

Assembly

Re-referred to Com. on U. & E.

  • Referral-Committee
Com. on U. & E.

Assembly

From committee: Do pass. (Ayes 13. Noes 0.) (June 3).

Assembly

Coauthors revised.

Jun 02, 2025

Assembly

From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.

May 29, 2025

Assembly

Read third time and amended. Ordered to third reading. (Page 1789.)

Assembly

Re-referred to Com. on U. & E. pursuant to Assembly Rule 77.2.

  • Referral-Committee
Com. on U. & E. pursuant to Assembly Rule 77.2.

May 27, 2025

Assembly

Read second time. Ordered to third reading.

May 23, 2025

Assembly

From committee: Amend, and do pass as amended. (Ayes 11. Noes 0.) (May 23).

Assembly

Read second time and amended. Ordered returned to second reading.

Assembly

Assembly Rule 63 suspended. (Ayes 51. Noes 16. Page 1644.)

May 14, 2025

Assembly

In committee: Set, first hearing. Referred to APPR. suspense file.

  • Referral-Committee
APPR. suspense file. APPR

May 01, 2025

Assembly

From committee: Do pass and re-refer to Com. on APPR. (Ayes 18. Noes 0.) (April 30). Re-referred to Com. on APPR.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on APPR.

Apr 23, 2025

Assembly

In committee: Set, first hearing. Hearing canceled at the request of author.

Apr 22, 2025

Assembly

Re-referred to Com. on U. & E.

  • Referral-Committee
Com. on U. & E.

Apr 21, 2025

Assembly

From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.

Mar 03, 2025

Assembly

Referred to Com. on U. & E.

  • Referral-Committee
Com. on U. & E.

Feb 20, 2025

Assembly

From printer. May be heard in committee March 22.

Feb 19, 2025

Assembly

Read first time. To print.

Bill Text

Bill Text Versions Format
AB825 HTML
02/19/25 - Introduced PDF
04/21/25 - Amended Assembly PDF
05/23/25 - Amended Assembly PDF
05/29/25 - Amended Assembly PDF
06/02/25 - Amended Assembly PDF
09/10/25 - Amended Senate PDF
09/13/25 - Enrolled PDF
09/19/25 - Chaptered PDF

Related Documents

Document Format
04/29/25- Assembly Committee on Utilities and Energy PDF
05/12/25- Assembly Appropriations PDF
05/28/25- ASSEMBLY FLOOR ANALYSIS PDF
06/02/25- Assembly Committee on Utilities and Energy PDF
06/03/25- ASSEMBLY FLOOR ANALYSIS PDF
07/13/25- Senate Business, Professions and Economic Development PDF
07/14/25- Senate Energy, Utilities and Communications PDF
08/15/25- Senate Appropriations PDF
08/30/25- Sen. Floor Analyses PDF
09/11/25- Senate Energy, Utilities and Communications PDF
09/12/25- Sen. Floor Analyses PDF
09/12/25- ASSEMBLY FLOOR ANALYSIS PDF

Sources

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