McNerney Introduces Bill to Streamline ADUs by Accelerating Utility Hookups

SACRAMENTO – State Sen. Jerry McNerney, D-Pleasanton, today announced the introduction of SB 1196, which will streamline the creation of accessory dwelling units by accelerating utility service connections.

SB 1196 would establish clear timelines for utility hookups for ADUs, also known as backyard cottages or “casitas,” and institute penalties for utilities that fail to provide timely service connections.

“California homeowners and ADU builders are increasingly frustrated by long delays – up to a year – to obtain utility service connections. The problem is, there are no clear rules for when a utility must hook up an ADU – and no consequences for delays,” Sen. McNerney said. “SB 1196 would make sure that when a homeowner adds an ADU, they’ll be able to get it hooked up without waiting months on end.”

To help address California’s affordable housing crisis, the Legislature passed numerous laws in the past decade to streamline the construction of low-cost ADUs. As a result, the number of new ADUs permitted in the state skyrocketed from 800 a year to about 30,000. ADUs now represent about one-third of new homes in the state, and many homeowners are adding ADUs to rent or lease as lower-cost housing. 

Although ADUs are more affordable to construct than other types of housing, they can still cost homeowners $200,000 or more, depending on the size of the unit. As such, many homeowners cannot afford long delays for an ADU utility service connection, as they need to rent or lease the unit to begin to recoup their investment.

Yet homeowners and ADU builders say they’re increasingly being forced to wait nine to 12 months for a utility hook up. Such long delays not only place an undue financial burden on property owners but also exacerbate the state’s housing shortage.

For example, PG&E estimates that utility energization for a home addition can take up 182 days. ADU builders also say utilities can worsen delays by not allowing service connection applications to be filed until a homeowner has received a building permit. Some utilities also routinely cancel ADU applications without the homeowners’ consent, forcing property owners to resubmit their applications and prompting more delays.

California currently has no clear timelines for ADU utility hookups, nor does the state have penalties for utilities that unnecessarily delay service connections.

SB 1196 streamlines ADU construction by:

• Creating clear timelines for utility service connections that are similar to existing ADU approval timelines for local governments
• Allowing applicants to submit a request for a utility hookup at the same time they request a building permit
• Barring utilities from canceling a service connection application without the applicant’s consent.
• Establishing penalties for utilities that fail to provide timely hookups.

SB 1196 is expected to be heard in a Senate Committee in April.

Sen. Jerry McNerney is chair of the Senate Revenue and Taxation Committee, and his 5th Senate District includes all of San Joaquin County and Alameda County’s Tri-Valley.