When legislators return on Monday, they are scheduled to consider a priority bill for the California Chamber of Commerce that would provide state lawmakers with a critical tool to better understand and manage the cost impacts new mandated programs have on utility customers.
If approved, AB 2124 (Pacheco; D-Downey) would require the California Council on Science and Technology (CCST) to analyze any proposed legislation establishing a state program or requirement that would have a financial impact on electricity or natural gas ratepayers.
CalChamber identified the legislation as a Cost Cutter on the 2026 Affordability Agenda because it supports more cost-effective policymaking.
AB 2124 promotes greater transparency and accountability in how public policy objectives are funded while still allowing state lawmakers to continue advancing California’s climate change policy goals. It’s a way to see how new proposals would add to the existing bill stack on ratepayers before additional costs are imposed.
Financial Impact Analysis
CCST was organized at the request of the Legislature in 1988 to offer expert advice on public policy issues related to science and technology.
AB 2124 requires CCST to establish its program to provide the required analysis by March 1, 2027.
It then must release a written analysis of the estimated costs and efficacy of any newly proposed program or requirement. CCST would evaluate key factors, including: the impact on utility rates, the costs to different classes of ratepayers, whether the proposal duplicates existing programs and whether alternative funding sources are available.
The bill declares the Legislature’s overall goal is for CCST to conduct a systemic, third-party review to help lawmakers determine if a proposed program or requirement is in ratepayers’ best interest before approving it. CCST also must develop and implement conflict-of-interest provisions.
Helping Address Rate Realities
Rising electricity costs are nothing new for California ratepayers and have been contributing to the affordability crisis in the state for years. According to a 2025 report from the Legislative Analyst’s Office on residential electricity rates, California’s rates are now the second highest in the nation, nearly double the national average. In fact, rates surged about 47% from 2019 to 2023.
Underscoring the need for the analysis required by AB 2124 are figures from the “Rate Realities” campaign launched by CalChamber in June 2025 to highlight the true drivers behind California’s electricity costs. An independent analysis by Blue Sky Consulting Group found nearly 37% of the average electricity bill is due to state policies and mandates rather than the baseline costs of providing safe, reliable service.
CalChamber supports state lawmakers lowering bills by cutting, scaling back or finding alternative ways to pay for these mandates, and is not alone in this belief. An April 2026 survey by FM3 Research found 74% of voters support removing the cost of state mandates from electric bills or paying for them out of the state budget.
