California’s new law tackles long utility connection delays.
A New Law in California Aims to Expedite Electricity Connections for Developers
A new law signed by California Gov. Gavin Newsom on October 7th seeks to address the lengthy wait times that developers and builders face when connecting new housing or commercial sites to electricity. The law, known as Assembly Bill (AB) 50, was authored by Assemblyman Jim Wood (D-Healdsburg) after hearing numerous complaints from builders in his district about the extended delays in obtaining electricity connections.
“I began this journey into the causes of power connection delays after hearing about an alarming number of residential and commercial projects in my district that were ready to turn on the lights only to be told they’d have to wait, not just days but months and even years longer to actually get electricity,” Mr. Wood said in a statement on October 8th. “These customers thought they had received a promise – a ‘will serve’ letter – from the utility that they would be ready, but we soon discovered it wasn’t just in the district I represent; it was happening statewide.”
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While California is making strides in its climate action goals, Assemblyman Wood emphasizes the need for a revamp in power production and usage to meet emissions targets.
“Severe electric interconnectivity delays have become the everyday reality of utility customers in California,” Mr. Wood said, according to a legislative analysis on the bill. “In just one county located in my district, over 30 customers were told they would have to wait over 10 years for their lights to be turned on. This is unacceptable and alarming here in California, where we have set some of the most ambitious climate goals in the world.”
According to the Construction Employers’ Association, power connections for new housing or commercial buildings in the state have recently taken as long as 28 weeks, compared to the previous average of six to eight weeks.
Furthermore, developers are burdened with significant planning fees after receiving eligibility letters from utilities for electricity connections.
Assemblyman Wood warns that if electric corporations fail to meet the state’s power demands, achieving California’s climate, housing, and economic development goals will be impossible.
The new law mandates the California Public Utilities Commission to establish criteria for timely electricity connections. Electric companies must submit a report to the commission by December 1, 2024, demonstrating that 80 percent of customers who applied by January 31, 2023, have been connected.
The commission will collect information from each electric company to establish the new reporting requirements and criteria for timely connections. The law does not specify a deadline for these new requirements.
Failure to comply with the law’s provisions will be considered a crime. The measure has garnered support from local governments, pro-housing organizations, environmental groups, labor unions, and ratepayer advocates due to its emphasis on transparency and accountability.
How does AB 50 promote the use of sustainable energy alternatives by developers in California
R-increasing problem for developers in California,” Assemblyman Wood stated. “These delays not only create unnecessary financial burdens for developers, but they also hinder the state’s progress in reducing greenhouse gas emissions by discouraging the use of sustainable energy alternatives.”
AB 50 aims to address these delays by expediting the electricity connection process for developers. The law requires electric utilities to provide builders with a clear timeline for connecting new housing or commercial sites to the grid. This timeline must be published on the utility’s website and updated quarterly to ensure transparency and accountability.
Additionally, AB 50 sets a maximum timeframe for the completion of electricity connections. Electric utilities will now have 45 days from the date of a complete application to approve or deny a request for a connection. If approved, the utility will then have 60 days to complete the actual connection. These timeframes are designed to prevent unnecessary delays and provide builders with certainty and predictability.
The new law also addresses the issue of unanticipated costs associated with electricity connection. According to AB 50, electric utilities are prohibited from imposing fees on developers for upgrades or improvements to the grid that arise from the connection of new projects. This provision aims to protect developers from unexpected financial burdens and promote affordable housing and commercial development in the state.
Assemblyman Wood hopes that AB 50 will encourage more developers to adopt sustainable energy solutions, such as solar power or battery storage, by removing the barriers caused by delayed electricity connections. By expediting these connections, California can further its efforts to reduce greenhouse gas emissions and meet its climate action goals.
The need for this law was recognized not only by Assemblyman Wood but also by various stakeholders in the construction and development industry. The California Building Industry Association, for example, voiced support for AB 50, stating that it will help facilitate the construction of much-needed housing units in the state.
With the signing of AB 50, California is taking a significant step towards streamlining the process of connecting new housing and commercial sites to electricity. By reducing delays and providing clear timelines, the law aims to create a more efficient and sustainable development environment in the state.
As California continues to lead the way in green energy initiatives, it is essential to ensure that developers have easy access to electricity, enabling them to build homes and businesses that align with the state’s sustainability goals. AB 50 represents a positive step forward in achieving these objectives and fostering economic growth while protecting the environment.
In conclusion, Assembly Bill 50 is a crucial piece of legislation that addresses the lengthy wait times faced by developers when connecting new housing or commercial sites to electricity in California. By expediting these connections and providing clear timelines, the law aims to promote sustainable development and reduce greenhouse gas emissions in the state. This law is a significant step towards achieving California’s climate action goals and fostering economic growth in the construction and development sector.
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