CA AB2239

Requires the Public Utilities Commission (PUC) to designate "infrastructure-constrained energization areas" based on criteria including limited transmission/distribution infrastructure, inland or desert geography, and extended energization timelines

Mandates penalties on electrical corporations that fail to meet PUC-established energization timelines, with the PUC considering factors such as economic harm, housing production impacts, and employment effects when determining penalties

Exempts electrical generation and energy storage projects up to 100 megawatts from CEQA environmental review requirements when located in infrastructure-constrained areas on industrial, commercial, or previously disturbed land

Authorizes "over-the-fence transactions" allowing direct electricity sales between adjacent parcels (up to 10 megawatts) when utilities cannot meet energization targets, without the seller being classified as a public utility

Directs the Independent System Operator (ISO) to prioritize transmission planning and interconnection processes for infrastructure-constrained areas and submit annual reports to the PUC and Legislature on constraints affecting these regions