Utility accountability bill could boost California solar deployment

If passed, SB 332 would improve ratepayer protections and make the Californian market more favorable to community solar programs.

March 24, 2025 Phoebe Skok

A solar-and-storage system at the Port of San Diego, California

Image: Port of San Diego

Proposed California Senate Bill 332, also known as the Investor-Owned Utility (IOU) Accountability Act, could have a “second-order impact” on the state’s solar deployment.

While it’s not designed to focus on solar, its broader energy and utility reforms could significantly impact solar deployment if the bill is passed.

SB 332 would require the California Public Utilities Commission to allocate $100 million per year to the Transformative Climate Communities Program (TCC) and the Community Resilience Center Program (CRC) between 2026 and 2036; revenues from utility-held greenhouse gas allowances would fund the programs, benefiting communities vulnerable to climate disasters.

“Everybody, I would say, recognized that they are excellent,” said Steve Campbell, the Western regulatory director at Vote Solar, adding that both programs have played vital roles in solar buildout.

Campbell told pv magazine USA that the programs have been two of the largest deployers of solar and storage in frontline communities around California. Securing long-term funding for the TCC and the CRC could lead to more local clean energy deployment in disadvantaged communities, Campbell said.

“There have been multiple large commitments made in the past that we haven’t seen come through yet,” he added, noting that SB 332 could spur things along.

Beyond consistent financial support for state programs, the bill also promotes utility reform and ratepayer protection.

“It’s a critical consumer protection bill for California ratepayers that will help the state meet its climate goals,” Campbell explained, noting that California is not on track to affordably meet its climate goals. Achieving those goals will require utility reform, which will in turn boost solar deployment.

By increasing transparency and financial oversight, Campbell added, the bill could create an environment where solar plays a greater role in reducing reliance on centralized infrastructure.

“Hopefully, it could help identify if IOUs, which is the current utility business model, are still fit for keeping rates affordable while meeting climate goals,” he said.

The bill would mandate an independent, third-party study that would assess the feasibility and value of transitioning away from the IOU model to a more “justice-centered” approach. Campbell noted that the study could provide critical insights into whether a more decentralized energy approach would be a better fit for the state.

He also noted that overhauling the current utility model could produce a more favorable community solar landscape in California, particularly if SB 332 and another proposed bill, AB 1260, which focuses on creating a statewide community solar program, both pass.

Even so, it’s still early days; State Sen. Aisha Wahab (D-Fremont) introduced SB 332 in February, and it’s not yet under legislative consideration. Regardless, Campbell sees it as a “large, ambitious bill that needs to meet the moment.”

“The way I see it is that if we can fund those programs, the TCC and the CRC programs in particular, that is good for solar, storage and the solar market in general,” Campbell said. “And, if we can reform utility accountability as well, that’s good for local control and local clean energy resources.”

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