AB 2561 Summary

• Abolishes two state agencies and creates the Department of Energy headed by a Secretary of Energy (appointed by Governor, subject to Senate confirmation) to consolidate energy-related functions previously scattered across multiple state entities

• Establishes California Energy Board within the new Department of Energy, consisting of the Secretary of Energy (chair), four public members appointed by the Governor, and ex officio members from the Public Utilities Commission and Natural Resources Agency

• Transfers authority and responsibilities from the former State Energy Resources Conservation and Development Commission, Electricity Oversight Board, and energy-related functions from the Office of Planning and Research, Department of General Services, and Office of the State Architect to the new Department

• Creates Office of Energy Market Oversight within the Department to investigate wholesale electricity markets, represent California before the Federal Energy Regulatory Commission, and maintain separation from other departmental functions to prevent conflicts of interest

• Repeals multiple energy programs and authorities including the Katz Safe Schoolbus Clean Fuel Efficiency Program, Small Business Energy Efficient Refrigeration Program, and the California Consumer Power and Conservation Financing Authority Act, while consolidating remaining energy functions under unified state department structure