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
Subject:
title
Consider position on legislation pending before the State Legislature
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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:
recommendation
Oppose Assembly Bill 942 Net energy metering: eligible customer-generators: tariffs.
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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.
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