S.F. No. 2 - Energy and Climate Bill Summary

• Appropriates $25.97 million biennially to the Department of Commerce and Public Utilities Commission for energy and renewable development programs including weatherization, solar incentives, electric vehicle rebates, heat pump programs, and grid modernization.

• Extends solar production incentive program from 2028 to 2038 and expands allocation to $5 million annually through 2035, with half reserved for low-income installations.

• Authorizes extraordinary event bonds for natural gas utilities to finance recovery from disasters and emergencies, allowing utilities to impose nonbypassable charges on customers with irrevocable financing orders from the Public Utilities Commission.

• Expands low-income affordability programs for electric and natural gas utilities, redefines low-income eligibility standards, and adds $15 discount per billing period for seniors and disabled customers.

• Modernizes energy transmission cost recovery by allowing utilities to recover costs for distribution system upgrades, grid-enhancing technologies, and interconnection improvements through tariff adjustment mechanisms.