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SB-797 • 2026

Electric utility distribution and transmission system facilities: undergrounding and insulation.

Electric utility distribution and transmission system facilities: undergrounding and insulation.

Education
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Choi
Last action
2026-02-02
Official status
Returned to Secretary of Senate pursuant to Joint Rule 56.
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on the working group's plan requirements beyond July 1, 2027.

Undergrounding Electric Utility Facilities

The bill exempts certain projects from CEQA requirements if they involve converting overhead electric utility distribution and transmission system facilities to underground or insulating them, unless located in environmentally sensitive areas.

What This Bill Does

  • Exempts projects that convert overhead electric utility distribution and transmission system facilities to underground or insulate them from CEQA requirements until July 1, 2027, if they are not in environmentally sensitive areas.
  • Requires the Public Utilities Commission to form a working group to study costs related to undergrounding and insulating these facilities and compile wildfire mitigation reports by electric utilities.
  • Directs the working group to provide a plan on how to most effectively invest in undergrounding and insulating overhead utility facilities or support electrical corporations by July 1, 2027.

Who It Names or Affects

  • Electric utilities that want to convert their overhead distribution and transmission system facilities to underground or insulate them.
  • Local agencies responsible for determining if projects qualify for the CEQA exemption.
  • The Public Utilities Commission which must form a working group to study costs and provide recommendations.

Terms To Know

California Environmental Quality Act (CEQA)
A law that requires state and local agencies to identify potential environmental impacts of their actions and find ways to avoid or reduce those impacts.
Categorical Exemption
A type of CEQA exemption for projects that have been determined not to have a significant effect on the environment.

Limits and Unknowns

  • The bill does not specify what constitutes an environmentally sensitive area.
  • It is unclear how local agencies will determine if a project qualifies for the CEQA exemption.

Bill History

  1. 2026-02-02 California Legislative Information

    Returned to Secretary of Senate pursuant to Joint Rule 56.

  2. 2025-05-23 California Legislative Information

    May 23 hearing: Held in committee and under submission.

  3. 2025-05-20 California Legislative Information

    Set for hearing May 23.

  4. 2025-05-19 California Legislative Information

    May 19 hearing: Placed on APPR. suspense file.

  5. 2025-05-09 California Legislative Information

    Set for hearing May 19.

  6. 2025-05-06 California Legislative Information

    Read second time and amended. Re-referred to Com. on APPR.

  7. 2025-05-05 California Legislative Information

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 1. Page 935.) (April 29).

  8. 2025-04-23 California Legislative Information

    From committee: Do pass and re-refer to Com. on E., U & C. (Ayes 8. Noes 0. Page 867.) (April 23). Re-referred to Com. on E., U & C.

  9. 2025-04-22 California Legislative Information

    Set for hearing April 29 in E., U & C. pending receipt.

  10. 2025-04-09 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on E.Q.

  11. 2025-04-04 California Legislative Information

    Set for hearing April 23.

  12. 2025-04-02 California Legislative Information

    Re-referred to Coms. on E.Q. and E., U & C.

  13. 2025-03-26 California Legislative Information

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  14. 2025-03-12 California Legislative Information

    Referred to Com. on RLS.

  15. 2025-02-24 California Legislative Information

    Read first time.

  16. 2025-02-24 California Legislative Information

    From printer. May be acted upon on or after March 24.

  17. 2025-02-21 California Legislative Information

    Introduced. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 797, as amended, Choi.
California Environmental Quality Act: exemption: electric
Electric
utility distribution and transmission system facilities: undergrounding and insulation.
The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.
CEQA requires the Office of Land Use and Climate Innovation to prepare and develop, and for the Secretary of the Natural
Resources Agency to certify and adopt, proposed guidelines for the implementation of CEQA by public agencies that are required to include a list of classes of projects that have been determined not to have a significant effect on the environment and exempts those classes of projects from CEQA, commonly known as categorical exemptions. Pursuant to its authority, the secretary has adopted a categorical exemption for the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced, including, but not limited to, conversion of overhead electric utility distribution system facilities to underground, as provided.
This bill, until the submission of a prescribed plan on how to most effectively invest in undergrounding and insulating overhead electric utility distribution system facilities or
transmission system facilities, but no later than July 1, 2027, would exempt from CEQA a project for the conversion of those facilities to underground and the insulation of those facilities, unless the project is located in an environmentally sensitive area, as defined. Because a lead agency would be required to determine if a project qualifies for this exemption, the bill would impose a state-mandated local program.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Under existing law, it is the policy of the state that each electrical corporation continue to operate its electric distribution grid in its service territory and to do so in a safe, reliable, efficient, and cost-effective manner.
This bill would require the commission, until January 1, 2031, to form a working group to study the cost of undergrounding and
insulating overhead electric utility distribution system facilities or transmission system facilities, compile wildfire mitigation reports of electric utilities, and provide the Legislature, on or before July 1, 2027, with a plan on how to most effectively invest in undergrounding and insulating those facilities or how to otherwise support electrical corporations, as provided.
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.

Current Bill Text

Read the full stored bill text
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