Newsom Signs McNerney’s Bill to Streamline ADUs by Accelerating Utility Hookups

Gov. Gavin Newsom has signed Sen. Jerry McNerney’s SB 1196, which will streamline the creation of accessory dwelling units by accelerating utility service connections.

SB 1196 directs the California Public Utilities Commission (CPUC) to establish clear timelines for utility hookups requests for ADUs, also known as backyard cottages, and institute penalties for utilities that fail to timely process service connection applications.

“One of the most effective ways to address the state’s housing affordability crisis is to accelerate the construction of more low-cost housing, like ADUs. But California homeowners and ADU builders are often frustrated by long delays – up to a year – to obtain utility service connections,” said Sen. McNerney, D-Pleasanton. “SB 1196 will ensure that when a homeowner adds an ADU, they’ll be able to get it hooked up without waiting months on end.”

In addition to streamlining the creation of ADUs and Junior ADUs, SB 1196 will accelerate utility service connections for other small energization projects, such as an electric vehicle charger or a home backup battery.

Gov. Newsom signed SB 1196 last night, and it goes into effect Jan. 1. It was supported by the Casita Coalition.

“California has enacted numerous laws to accelerate ADU production, and today, ADUs are one of the fastest-growing sources of new housing in the state. Scaling a new housing type requires continually addressing barriers as they emerge,” said Noerena Limon, CEO of Casita Coalition. “We congratulate Senator McNerney, the Legislature, advocates, and Governor Newsom for advancing SB 1196. This law will help curb costly and unpredictable utility delays so ADUs can get connected and welcome residents sooner, rather than sitting vacant waiting for service.”

SB 1196 streamlines ADUs and other small energization projects, defined as those that do not require IOU-infrastructure upgrades, by:

• 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.

The bill also directs the CPUC to:

• Create clear timelines for IUOs to process service connection requests
• Establish penalties for IOUs that do not timely process energization applications.

For more on SB 1196, go here.

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.