AB 205 Summary

• Establishes the 2022 California Arrearage Payment Program (2022 CAPP) to provide $1.197 billion in bill credits to eligible residential utility customers with arrearages accrued during the COVID-19 pandemic relief period (March 4, 2020 - December 31, 2021), with the department required to disburse funds within 7 months and utilities to issue credits within 60 days of receiving funds.

• Creates a streamlined certification process for renewable energy facilities (solar, wind, geothermal with 50+ megawatts capacity), energy storage systems (200+ megawatthours), and related manufacturing facilities with $250+ million capital investment, allowing applicants to apply by June 30, 2029, with decisions within 270 days and superseding local permitting requirements.

• Establishes the Strategic Reliability Reserve Fund with two accounts to implement the Distributed Electricity Backup Assets Program and Demand Side Grid Support Program, providing incentives for emergency backup power and load reduction resources during extreme weather events, with continuous appropriations to ensure grid reliability.

• Authorizes the Department of Water Resources to construct, purchase, or finance emergency power generators, energy storage systems, and clean energy facilities to support summer reliability and preserve retiring generation capacity, with exclusive Energy Commission certification authority through October 2026.

• Modifies electricity rate regulations to allow income-graduated fixed charges for residential customers (effective July 1, 2024) and adjusts the California Alternate Rates for Energy (CARE) program discount calculation, while excluding 2022 CAPP bill credits from gross income for tax purposes through December 1, 2027.