By Reese Galvin
AB 2239 (Carrillo), as introduced February 19, 2026, would require the California Public Utilities Commission (CPUC) to take actions to expand the electrical infrastructure and storage capabilities in Infrastructure-Constrained Energization Areas (ICEA) within California, and take action to ensure electrical corporations generate enough electricity to meet the growing demand throughout California.
The California legislature has tasked the CPUC with ensuring that energization (the process by which communities’ electrical infrastructure is upgraded and connected to the grid) is streamlined and accelerated to the highest extent possible. On July 11, 2024, the CPUC adopted D.24-07-008, which authorized Pacific Gas & Electric to record costs for energization projects after January of that year so long as the costs exceeded the energization costs established in their revenue requirement. On September 17, 2024, the CPUC adopted D.24.09.020 to make reporting energization delays to the CPUC easier for citizens. That rulemaking adopted criteria for timely service, set biannual reporting requirements for Investor-Owned Utilities (IOUs), and convened a public workshop for the first of those biannual reports. The legislature continues to push for increased energization and AB 2239 is designed to expand on that mandate.
ICEA regions are geographic areas in California that are struggling to maintain electricity supply amid aging or otherwise unfit infrastructure and increasing demand. AB 2239 will require the CPUC to designate ICEA regions based on objective criteria such as limited distribution of infrastructure relative to available capacity or projected load growth, geography, and energization timelines. The bill further requires the CPUC to ensure electrical corporations are meeting energization timelines or established targets and requires the CPUC to penalize corporations that do not meet the targets. When a corporation cannot meet the targets in ICEA regions, the bill would require the CPUC to authorize over-the-fence transactions, allowing electrical corporations to directly sell their electricity to nearby users, which theoretically enables immediate access to power in ICEA regions.
The bill also requires the CPUC and the Energy Commission to facilitate expedited development of generation and storage facilities, as well as facilitate expedited infrastructure development owned or operated by electrical corporations, within ICEA regions. The CPUC must then advocate before the Independent System Operator (“ISO,” a nonprofit public benefit corporation ensuring efficient use and reliable operation of grid; it manages grid and energy markets) for expedited review and prioritization of projects in ICEA regions. The ISO is required to consider economic development needs, infrastructure constraints, and policy objectives when conducting transmission planning and interconnection processes and must report to the CPUC and the Legislature on transmission and interconnection constraints affecting ICEA regions.
Notably, Public Utilities Code sections 367.8(c)–(d) would exempt approval of electrical generation or storage projects withing ICEA regions from CEQA review, pending specific requirements, which are to be determined by the Office of Land Use and Climate Innovation. This necessarily imposes a state-mandated local program, which the state generally reimburses under the California constitution. However, AB 2239 exempts the state from reimbursement requirements for the above local programs.
AB 2239 was read for the first time on February 19, 2026, and was printed February 20, 2026. The bill may be heard in committee as early as March 9, 2026.