Assembly Member Essayli's amendment to the Budget Act of 2024 modifies how large electrical corporations' distribution infrastructure undergrounding plans interact with California Environmental Quality Act (CEQA) requirements. The legislation establishes that while these plans are not classified as CEQA projects during the approval phase, environmental reviews must still be completed before any physical changes to the environment can be authorized.

The bill adds Section 11.50 to the Budget Act, creating a specific framework for infrastructure undergrounding initiatives. Under this framework, electrical corporations must complete all CEQA-mandated environmental assessments prior to receiving approval for projects that would alter the physical environment. This maintains environmental review requirements while adjusting the timing and classification of the approval process.

As a Budget Bill, this legislation takes effect immediately upon enactment, allowing electrical corporations and regulatory agencies to implement the modified approval structure for undergrounding projects without delay. The amendment preserves the role of environmental review in infrastructure development while reconfiguring when these assessments occur in the project timeline.