Assembly Bill 858 mandates that the Public Service Commission (PSC) consider the social cost of carbon emissions when deciding whether to issue certificates for constructing large electric generating facilities or high-voltage transmission lines. The bill defines the social cost of carbon as the estimated environmental damage from emitting one additional metric ton of carbon dioxide, calculated based on the latest scientific and economic advancements, with a minimum value set at $185 per metric ton.

Additionally, the bill stipulates that the PSC must ensure that costs associated with fossil fuel infrastructure can only be recovered from customers who directly benefit from that infrastructure. It also prohibits the recovery of costs incurred during the transition from fossil fuel energy production to renewable energy from any customers. This legislation aims to promote accountability in energy production and encourage a shift towards renewable resources.