What AB 2175 does
An act to amend Section 2827 of the Public Utilities Code, relating to electricity.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law requires each electrical corporation, local publicly owned electric utility, or electrical cooperative, or any other entity that offers electrical service, except as provided, to develop a standard contract or tariff providing for net energy metering, and to make this standard contract or tariff available to eligible customer-generators using renewable electrical generation facilities, as specified. Pursuant to its authority, the commission issued a decision revising net energy metering tariff and subtariffs, commonly known as the net billing tariff. Existing law authorizes an eligible customer-generator with multiple meters to aggregate the electrical load of the meters located on the property where the renewable electrical generation facility is located and on all property adjacent or contiguous to the property on which the renewable electrical generation facility is located, if those properties are solely owned, leased, or rented by the eligible customer-generator, as provided.
This bill would require the commission, for purposes of certain net energy metering contracts or tariffs, to ensure that logistics businesses and manufacturing businesses are eligible customer-generators for purposes of aggregating multiple meters, as described above, if the commission extends the application of that provision.
Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because a violation of a commission action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Summary from the Legislative Counsel's Digest of the chaptered text, July 16, 2026. Read the full text on leginfo.
How it got here
Assemblymember Garcia introduced AB 2175 on February 19, 2026. The text was amended 2 times, and heard in 3 committee hearings before its final floor votes.
- Assembly Floor, May 21, 2026: 68 ayes, 0 noes.
- Senate Floor, July 2, 2026: 37 ayes, 0 noes.
Committee votes along the way:
- Assembly Utilities and Energy, April 22, 2026: Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar, 18-0.
- Assembly Appropriations, May 13, 2026: Do pass. To Consent Calendar., 15-0.
- Senate Energy, Utilities and Communications, June 16, 2026: Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar, 17-0.
Who supports and opposes AB 2175
The Senate Floor Analyses analysis dated July 1, 2026 lists 39 organizations in support and 2 in opposition. When Assembly Committee on Utilities and Energy first listed positions on April 21, 2026, the count was 24 in support and 3 opposed. By the Senate Floor Analyses analysis of July 1, 2026 it was 39 to 2.
In support: 350 Bay Area; 350 Conejo/San Fernando Valley; 350 Contra Costa Action; 350 Humboldt; 350 South Bay Los Angeles; 350 Southland Legislative Alliance; A1 Sun; Albany Climate Action Coalition; and 31 more.
Opposed: California State Association of Electrical Workers; Coalition of California Utility Employees.
Read the Senate Floor Analyses analysis.
What happens next
It was signed and chaptered on July 16, 2026 as Chapter 94, Statutes of 2026. Most provisions of a bill chaptered in this session take effect January 1.
The Governor can sign the bill, veto it, or let it become law without a signature. Until the decision, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect. If signed, most provisions take effect January 1, and implementation moves to the agencies named in the bill.
What it means for transportation organizations
The work now is implementation: which agency writes the rules, when the comment period opens, and which obligations begin January 1. An organization that was not in the room for the bill can still shape the regulation, and the regulation is usually where the operating detail is settled.
The transportation group at Capitol Axis handles that for transportation clients.
Questions about AB 2175
What does AB 2175 do?
This bill would require the commission, for purposes of certain net energy metering contracts or tariffs, to ensure that logistics businesses and manufacturing businesses are eligible customer-generators for purposes of aggregating multiple meters, as described above, if the commission extends the application of that provision.
Is AB 2175 law in California?
It was signed and chaptered on July 16, 2026 as Chapter 94, Statutes of 2026. Most provisions of a bill chaptered in this session take effect January 1.
Who supports and opposes AB 2175?
The Senate Floor Analyses analysis dated July 1, 2026 lists 39 organizations in support and 2 in opposition. Supporters include 350 Bay Area; 350 Conejo/San Fernando Valley; 350 Contra Costa Action. Opponents include California State Association of Electrical Workers; Coalition of California Utility Employees.
What happens next with AB 2175?
The question now is implementation. The agencies named in the bill write the rules that decide what it means in practice, and those proceedings are open to comment.