CA AB1538

Establishes the Clean Energy Reliability Program administered by the Public Utilities Commission to provide incentive payments to load-serving entities that exceed procurement targets for eligible resources.

Requires the commission to define eligible resources by July 1, 2024, explicitly excluding fossil fuel resources even if emissions are offset by carbon capture or storage technologies.

Mandates that incentive payments be remitted to customers as bill credits or used to reduce ratepayer costs, with funds available only upon legislative appropriation and not from ratepayer funds.

Requires load-serving entities to demonstrate eligible resources are online and participating in the ISO market, disclose contract information, and include project labor agreements for resources 5+ megawatts coming online after January 1, 2024.

Requires prevailing wage requirements for eligible resources under 5 megawatts coming online after January 1, 2024, and directs the commission to evaluate how incentive payments interact with noncompliance fines and backstop procurement obligations.