Governor Signs AB 2109 — CLECA-Sponsored Process Heat Recovery Bill Becomes Law

Governor Newsom has signed AB 2109 (Carrillo) into law — Chapter 700, Statutes of 2024. The CLECA-sponsored measure exempts qualifying industrial process heat recovery generation from nonbypassable and departing-load surcharges, removing a rate-design penalty on manufacturers that convert their own waste heat into zero-emission electricity consumed on site.

The bill moved through the Legislature without a single no vote — 73–0 in the Assembly and 38–0 in the Senate — a reflection of how cleanly it aligns affordability, climate, and competitiveness goals. Amending Public Utilities Code Section 371 and adding Section 451.7, the statute directs the CPUC to establish the exemption's cap and implementing requirements while minimizing cost impacts to nonparticipating customers.

CLECA thanks Assemblymember Carrillo for authoring the measure. Attention now turns to implementation at the CPUC, where CLECA will advocate for rules that make the exemption usable by real projects on real timelines. Background: our AB 2109 whitepaper.