AB-740 • 2026

Virtual power plants: load shifting: integrated energy policy report.

Energy Technology

Vetoed

The latest official action shows the governor vetoed this bill. Check the bill history to see whether lawmakers later overrode that veto.

Sponsor: Harabedian
Last action: 2026-01-22
Official status: Consideration of Governor's veto stricken from file.
Effective date: Not listed

Plain English Breakdown

The bill was vetoed by the governor, but it is unclear whether lawmakers may later override this veto.

Virtual Power Plants: Load Shifting Plan

The bill requires the State Energy Resources Conservation and Development Commission to create a plan for virtual power plants after January 1, 2027, and mandates electrical corporations to report their progress in reducing peak electricity demand.

What This Bill Does

Requires the Energy Commission to make a plan for using virtual power plants after January 1, 2027, subject to available funding.
The Energy Commission must include actions and requirements when making this plan.
Electrical companies need to tell the Energy Commission each year how they are helping reduce peak electricity use.

Who It Names or Affects

State Energy Resources Conservation and Development Commission
Electricity companies

Terms To Know

Virtual power plant: A system that uses technology to control many small energy sources, like batteries or solar panels, to work together as one big power source.
Load shifting: Moving electricity use from times of high demand to less busy times to reduce the need for extra power plants.

Limits and Unknowns

The plan must have funding available.
It is not clear if and when lawmakers might override the governor's veto.

Bill History

2026-01-22 California Legislative Information
Consideration of Governor's veto stricken from file.
2025-10-03 California Legislative Information
Consideration of Governor's veto pending.
2025-10-03 California Legislative Information
Vetoed by Governor.
2025-09-23 California Legislative Information
Enrolled and presented to the Governor at 4 p.m.
2025-09-11 California Legislative Information
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 3299.).
2025-09-10 California Legislative Information
In Assembly. Concurrence in Senate amendments pending.
2025-09-10 California Legislative Information
Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 1. Page 2808.).
2025-09-08 California Legislative Information
Read second time. Ordered to third reading.
2025-09-04 California Legislative Information
Read third time and amended. Ordered to second reading.
2025-09-02 California Legislative Information
Read second time. Ordered to third reading.
2025-08-29 California Legislative Information
Read second time and amended. Ordered returned to second reading.
2025-08-29 California Legislative Information
From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 29).
2025-08-25 California Legislative Information
In committee: Referred to suspense file.
2025-08-18 California Legislative Information
(Ayes 27. Noes 0. Page 2171.)
2025-08-18 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR.
2025-08-07 California Legislative Information
In committee: Hearing postponed by committee.
2025-07-16 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (July 15). Re-referred to Com. on APPR.
2025-06-11 California Legislative Information
Referred to Com. on E., U & C.
2025-06-03 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2025-06-02 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 1850.)
2025-05-27 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
From committee: Do pass. (Ayes 14. Noes 0.) (May 23).
2025-05-14 California Legislative Information
In committee: Set, first hearing. Referred to suspense file.
2025-04-29 California Legislative Information
Re-referred to Com. on APPR.
2025-04-28 California Legislative Information
Read second time and amended.
2025-04-24 California Legislative Information
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 18. Noes 0.) (April 23).
2025-04-02 California Legislative Information
In committee: Hearing postponed by committee.
2025-03-13 California Legislative Information
Re-referred to Com. on U. & E.
2025-03-12 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.
2025-03-03 California Legislative Information
Referred to Com. on U. & E.
2025-02-19 California Legislative Information
From printer. May be heard in committee March 21.
2025-02-18 California Legislative Information
Read first time. To print.

Official Summary Text

AB 740, Harabedian.
Virtual power plants: load shifting: integrated energy policy report.
Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission), in consultation with specified entities, to adopt a biennial integrated energy policy report containing certain information, including an overview of major energy trends and issues facing the state.
This bill would require the Energy Commission, in the next update to the biennial integrated energy policy report after January 1, 2027, and subject to available funding, to adopt a virtual power plant deployment plan. The bill would require the Energy Commission, in developing the plan, to take certain actions, and would
require that the plan meet specified requirements.
Existing law requires the Energy Commission, in consultation with the Public Utilities Commission and the Independent System Operator, to adopt a goal for load shifting to reduce net peak electrical demand and adjust this target in each biennial integrated energy policy report thereafter.
This bill would require each electrical corporation to annually report to the Energy Commission its contribution towards meeting that load-shift goal.

Current Bill Text

Read the full stored bill text

Download Bill PDF