CA AB2109

Exempts customers from nonbypassable or departing load surcharges when they reduce electrical grid consumption through industrial process heat recovery technology, up to a cap set by the Public Utilities Commission.

Requires industrial process heat recovery technology to meet nine specific criteria, including minimum 500-kilowatt nameplate rating, zero marginal greenhouse gas emissions, full onsite consumption, and installation on or after January 1, 2024.

Prohibits electricity generated from industrial process heat recovery from exceeding 25 percent of the customer's peak electrical load at time of installation and bars any export to the wholesale market.

Requires the Public Utilities Commission to minimize cost impacts to non-participating customers that result from the surcharge exemption for industrial process heat recovery customers.

Classifies industrial process heat recovery as equipment enhancement or increased efficiency occurring in the normal course of business under Public Utilities Code Section 371.