CA SB122

Establishes the 2022 California Arrearage Payment Program (2022 CAPP) to distribute $1.197 billion to utility customers with past-due energy bills from the COVID-19 pandemic relief period (March 4, 2020 - December 31, 2021), with utilities required to issue credits within 60 days of receiving funds.

Creates certification process for renewable energy facilities (solar, wind, thermal) with 50+ megawatts capacity, energy storage systems with 200+ megawatthours capacity, and manufacturing facilities with $250+ million investment, with streamlined environmental review and 270-day decision timeline.

Establishes Strategic Reliability Reserve Fund through Energy Commission and Department of Water Resources to fund backup power generation and demand reduction programs during extreme weather events, including distributed electricity backup assets and demand-side grid support.

Requires Public Utilities Commission to establish income-graduated fixed charges on residential electricity bills with no fewer than three income thresholds, with charges authorized by July 1, 2024, and eliminates usage-based collection requirement for certain program revenues.

Appropriates $200 million from General Fund to Energy Commission for demand-side grid support incentive programs and excludes 2022 CAPP bill credits from state income taxes for taxable years 2022-2026.