The California Public Utilities Commission (CPUC or Commission) is weighing party comments on implementation of Assembly Bill (AB) 2143. Enacted last year, AB 2143 will take effect on January 1, 2024. This bill extends existing prevailing wage requirements for public works to the construction of any renewable electrical generation facility, and any associated battery storage, after December 31, 2023, if that project interconnects under the net energy metering (NEM) tariffs or net billing tariffs (NBTs). The bill includes exceptions for: (1) a residential facility that will have a maximum generating capacity of 15 kilowatts of electricity or that will be installed on a single-family home; (2) a project that is already a public work under existing law; and (3) a facility that serves only a modular home, a modular home community, or multiunit housing that has two or fewer stories.
In its NEM rulemaking proceeding (R.20-08-020), the assigned administrative law judge issued a ruling on April 3, 2023 (Ruling), seeking comments on the implementation of AB 2143. The Ruling includes a detailed list of issues and questions for party comment, including: (1) the triggering point for application of the law and how to approach projects that are under contract, but still in progress towards completion, by January 1, 2024 (when the law takes effect); (2) what role, if any, the investor-owned utilities (IOUs) and community choice aggregators (CCAs) should have in enforcing compliance with AB 2143 and the associated penalties; (3) what role, if any, IOUs and CCAs should have in educating and informing contractors and/or impacted customers about eligibility, wage requirements, and/or penalties; (4) alignment of the NEM tariffs and NBTs with the new wage requirements and penalties; and (5) compliance with the payroll requirement and associated confidentiality issues and coordination between the CPUC, the California Department of Industrial Relations (DIR), contractors, and utilities.
Opening and reply comments in response to the Ruling were submitted on April 24 and May 4, respectively, and a Commission decision resolving the issues is expected later this fall.