August 26, 2026
Orange County Business Council (OCBC) has moved from an opposition position to a neutral position on SB 1359 (Stern) following significant amendments adopted Aug. 21 that addressed the organization’s principal concerns with the legislation.
As originally introduced, SB 1359 would have made sweeping changes to how natural gas infrastructure investments are evaluated, including mandatory shareholder responsibility for certain stranded asset costs, restrictions on gas service extensions, constraints on hydrogen development and provisions that could have accelerated the retirement of portions of the natural gas system.
OCBC raised concerns that these provisions could have significant implications for customer affordability, energy reliability, utility planning and California’s economic competitiveness.
The Aug. 21 amendments substantially narrowed the legislation. The current version primarily requires annual reporting on gas infrastructure investments. It allows the California Public Utilities Commission (CPUC), through its existing Long-Term Gas Planning proceeding, to consider developing a framework for depreciation of gas infrastructure.
“OCBC appreciates Senator Stern’s willingness to work with stakeholders to significantly narrow this legislation and address the concerns that led to our opposition,” said Amanda Walsh, Vice President of Government Affairs at OCBC. “While we do not agree with every aspect of the bill, the amendments addressed the principal issues that formed the basis of our opposition. As a result, OCBC no longer believes continued opposition is warranted and has moved to a neutral position.”
OCBC’s engagement on SB 1359 reflects its continued commitment to working constructively with policymakers to improve legislation and ensure that California’s energy policies support affordability, reliability and a competitive business environment.
The change in position also underscores the importance of meaningful stakeholder engagement throughout the legislative process. OCBC will continue to monitor SB 1359 as it moves through the Legislature.
For questions, please email Vice President of Government Affairs Amanda Walsh.
