HomeMy WebLinkAboutConsider Position on Legislation Pending Before the State Le (3) ��NTINGTo'o 2000 Main Street,
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File #: 25-439 MEETING DATE: 6/3/2025
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
PREPARED BY: Shannon Levin, Council Policy Analyst
Sublect:
Consider position on legislation pending before the State Legislature
Statement of Issue:
On May 21, 2025, the Intergovernmental Relations Committee (IRC), comprised of Mayor Pat Burns,
Councilman Butch Twining, and Council Woman Gracey Van Der Mark, discussed legislative items
with relevance to Huntington Beach. Following discussion, the IRC chose to take a position on State
legislation, which is presented to the City Council for consideration
Financial Impact:
Not applicable.
Recommended Action:
Oppose Assembly Bill 942 Net energy metering: eligible customer-generators: tariffs.
Alternative Action(s):
Do not approve the recommended action and direct staff accordingly.
Analysis:
This bill modifies the terms applicable to customer-generators (who in every case, or nearly every
case, have solar electricity-generating panels installed on their rooftops) participating in the Net
Energy Metering program (NEM) in two ways.
Impact on Property Transactions
Effective January 1, 2026, the bill mandates those new owners of properties with existing solar
systems transition to the current Net Billing Tariff (NEM 3.0) upon purchase.
This change could devalue properties equipped with solar installations, as prospective buyers may
face reduced financial benefits compared to the original NEM agreements. Such a shift may deter
investments in solar energy and complicate real estate transactions.
Elimination of the California Climate Credit
The bill also proposes disqualifying eligible customer-generators from receiving the California Climate
Credit, a benefit funded by Cap-and-Trade proceeds.
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File #: 25-439 MEETING DATE: 6/3/2025
This removal could increase the financial burden on solar customers and diminish the incentives for
adopting renewable energy solutions.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change
in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the
CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for
resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan
Attachment(s):
1. Draft Letter of Opposition to AB 942
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teCOU e��� Pat Burns I Mayor
June 4, 2025
Honorable Josh Becker, Chair
Senate Energy, Utilities and Communications Committee
1021 0 Street, Suite 3350
Sacramento, CA
95814
RE:AB 942 (Calderon) -Oppose
Dear Senator Becker:
On behalf of the City of Huntington Beach, we respectfully express our continued opposition to AB 942,
which, as amended, proposes significant changes to the state's Net Energy Metering (NEM) policies that
could adversely affect our community's clean energy investments and economic resilience.
While we acknowledge and appreciate the removal of the provision that would have retroactively altered
existing NEM agreements after ten years, the current version of AB 942 introduces new concerns:
1. Impact on Property Transactions: Effective January 1, 2026, the bill mandates those new owners
of properties with existing solar systems transition to the current Net Billing Tariff (NEM 3.0) upon
purchase. This change could devalue properties equipped with solar installations, as prospective
buyers may face reduced financial benefits compared to the original NEM agreements. Such a shift
may deter investments in solar energy and complicate real estate transactions.
2. Elimination of the California Climate Credit: The bill also proposes disqualifying eligible customer-
generators from receiving the California Climate Credit, a benefit funded by Cap-and-Trade
proceeds. This removal could increase the financial burden on solar customers and diminish the
incentives for adopting renewable energy solutions.
These provisions raise concerns about the stability and predictability of California's energy policies.
Homeowners and investors rely on consistent regulations to make informed decisions about renewable
energy investments.Abrupt changes can undermine public trust and hinder the state's progress toward its
environmental goals. For these reasons, the City of Huntington Beach opposes AB 942. We urge you to
consider the potential negative impacts of this bill on clean energy adoption and property values. Thank
you for your consideration.
Sincerely,
Pat Burns
Mayor
Cc: Assemblymember Diane Dixon
Assembly member Tri Ta
Senator Tony Strickland
Office: (714)536—5553 I 2000 Main Street, Huntington Beach,CA 92648 I www.huntingtonbeachca.gov