Under existing law, California’s Public Utilities Commission (PUC) regulates investor-owned utilities, while local publicly owned utilities are governed by their boards, with all required to offer net energy metering (NEM) programs—NEM 1.0 (capped at 5% of peak demand) and NEM 2.0 (uncapped for large utilities)—that compensate solar customers for excess generation. In 2022, the PUC adopted a successor net billing tariff (replacing NEM 1.0/2.0) with reduced export rates (based on avoided costs) and a five-year “glide path” adder. This bill mandates that, starting July 1, 2026, customers on NEM 1.0/2.0 for 10+ years must switch to the post-2022 tariff, losing glide path benefits and paying full nonbypassable charges; similarly, new homeowners inheriting solar systems (from January 1, 2026) must enroll under the current tariff without the adder. The PUC may create a new tariff for these groups if it lowers cost impacts on non-solar customers. Additionally, NEM participants will be disqualified from receiving California Climate Credits (from cap-and-trade revenues) starting in 2026. Violations of PUC rules under the bill are crimes, though no state reimbursement to local agencies is required. The changes aim to modernize NEM policies while addressing cost shifts to non-participating ratepayers.