February 19, 2025

Regulatory Update for February 19, 2025

(Covering Week of February 10, 2025)

Our energy regulatory team has compiled a list of state and federal energy regulatory developments to keep you up to speed on key energy regulatory matters from across the United States. Stoel’s energy regulatory team is always available to answer questions about any of these developments. Click here to meet the energy regulatory team.

Jump to the following jurisdictions:

• Presidential Executive Orders
• California Public Utilities Commission
• California Independent System Operator
• California Energy Commission
• California Air Resources Board
• Minnesota Public Utilities Commission
• Federal Energy Regulatory Commission

Click here to download this update as a PDF

PRESIDENTIAL EXECUTIVE ORDERS

On February 18, President Trump issued the Ensuring Accountability for All Agencies Executive Order, which requires all “independent regulatory agencies”, as defined by 44 USC 3502(5), including the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission, to submit for review all “proposed and final significant regulatory actions” to the Office of Information and Regulatory Affairs within the Executive Office of the President before publication in the Federal Register. The EO also requires the Director of the Office of Management and Budget (OMB) to establish performance standards and management objectives for independent agency heads, report periodically to the President on their performance and efficiency in attaining such standards and objectives, and review independent regulatory agencies’ obligations for consistency with the President’s policies and priorities. The EO further requires additional consultation with the Executive Office of the President by requiring independent regulatory agency chairmen to consult with and coordinate policies and priorities with the directors of OMB, the White House Domestic Policy Council, and the White House National Economic Council.  The heads of independent regulatory agencies are directed to establish a “White House Liaison” position in their respective agencies, and submit agency strategic plans developed pursuant to the Government Performance and Results Act of 1993 to the Director of OMB for clearance prior to finalization. 

Stoel Rives is actively tracking the energy sector impacts of executive orders and other actions taken by the new administration.

You may contact a member of our team or, to learn more about the energy-related Executive Orders we are tracking, visit https://www.stoel.com/executive-orders.

CALIFORNIA PUBLIC UTILITIES COMMISSION (CPUC or COMMISSION)[1]

Proposed Decisions and Resolutions

None to report.

Voting Meeting

The CPUC will hold a voting meeting in Sacramento, California on February 20, 2025 at 11:00 a.m.  The following are energy-related items on the agenda:

Item 3. Res G-3612 (SoCalGas Biomethane Contracts)

This resolution addresses SoCalGas’s request for approval of three biomethane procurement contracts pursuant to the Renewable Gas Standard (RGS), as established in D.22-02-025.  This resolution approves with modifications SoCalGas’s contract with Organic Energy Solutions (OES) and rejects both contracts with Anew Climate (Keller Canyon) and Anew Climate (Forward).  The resolution finds that the OES contract meets the requirements of both the short-term and medium-term RGS targets and contributes toward the program organic waste diversion goal established in D.22-02-025 at a price that is appropriate for low-carbon, Senate Bill (SB) 1383 feedstock-compliant biomethane in a nascent market.  The resolution finds that the Anew Climate contracts do not meet the short-term procurement requirements and, as stated in D.22-02-025, “[e]ven if a gas IOU meets its volumetric short-term target, it shall not open procurement opportunities to the additional biomethane sources allowed to meet its medium-term target until it can demonstrate that it has diverted its share of the eight-million-ton organic waste diversion responsibility.”  The resolution finds that SoCalGas has neither met its volumetric short-term target nor demonstrated that it has diverted its share of organic waste.  Therefore, for the aforementioned reasons, the OES contract is approved, and the Anew contracts are rejected.

Item 6. Res E-5363 (PG&E 2024 Local Resource Adequacy Procurement) 

This resolution approves PG&E’s Central Procurement Entity (CPE) resource adequacy (RA) agreement, resulting from the 2024 PG&E-CPE Local RA Request for Offer (RFO), for a new build energy storage facility with a 10-year duration.  The resolution finds that this contract will help PG&E-CPE satisfy its procurement obligations towards the multi-year local RA program for the 2025, 2026, and 2027 compliance years.

Item 7. Res E-5373 (SoCalGas, PG&E, SCE, and Center for Sustainable Energy Self-Generation Incentive Program Inflation Reduction Act Tax Credit)

This resolution approves, with modification, the joint proposal by SoCalGas, PG&E, SCE, and Center for Sustainable Energy® (CSE) Self-Generation Incentive Program (SGIP) Inflation Reduction Act (IRA) Tax Credit proposal for the new Residential Solar and Storage Equity budget and all other SGIP budgets.  This resolution determines how to maximize the federal cost share of SGIP project costs covered by the federal IRA through the adoption of several policies, including but not limited to capping the SGIP share of incentive payments at 70 percent of eligible project costs when the SGIP payment is from state funds, the system is third-party owned, or the system is nonresidential so each of these types of projects is eligible to claim an IRA tax credit of 30 percent of eligible project costs.

Item 10. Res E-5371 (SCE Mid-Term Reliability (MTR) Energy Storage Contracts) 

On December 5, 2024, SCE submitted AL 5431-E seeking approval of three energy storage contracts selected as part of its MTR Phase 2 and 3 RFO efforts.  The MTR contracts total 620 MW of nameplate capacity and are expected to come online June 1, 2026, April 1, 2027, and June 1, 2028.  The three contracts are with Pier S Energy Storage, developed by Pier S Energy Storage, LLC, a project owned by Elevate Renewables; Overnight Storage, developed by ASHUSA Inc., a subsidiary of Atlantica North America LLC; and Euismod, developed by Aypa Power.

Item 14. R.08-06-024 (Petition for Modification of D.10-12-055)

This decision denies the petition for modification of D.10-12-055, filed by SCE and SDG&E.  The petition sought approval for a new methodology for the Fixed Price Component for the Joint IOUs’ Assembly Bill (AB) 1613 contracts for 2024-2030 for excess electricity from eligible combined heat and power systems’ qualifying facilities of 20 MW or less.

Item 15. Res E-5370 (PG&E MTR Renewable Resource Contracts)

This resolution approves four MTR contracts for a total of 750 MW of solar photovoltaic (PV) nameplate capacity and 578.7 MW of battery energy storage system nameplate capacity that PG&E contracted to help meet its MTR requirements.  The contracts are with Atlas North 1 and Atlas North 2 for two co-located projects being developed by 174 Power Global, LLC B, and Lockhart CL ESS IA and Lockhart CL ESS IIA for two co-located projects being developed by Terra-Gen, LLC.

Item 18. A.24-10-021 (Central Valley Gas Storage Transfer of Control) 

This decision approves the application of Central Valley Gas Storage, L.L.C. (Central Valley), Caliche Development Partners II, LLC, and Caliche Development Partners III, LLC for a change in control of Central Valley from Caliche Development Partners II, LLC to Caliche Development Partners III, LLC.  In addition to approving the change of control, the decision exempts the encumbrance of assets and the issuance of a corporate guaranty and securities by Central Valley from Commission pre-approval.

Item 19. A.23-01-005 (Petition for Modification of Decision 24-03-010)

This decision grants the petition to modify D.24-03-010 filed by LS Power Grid California, LLC (LSPGC) on October 9, 2024, seeking to modify D.24-03-010 to update the audit report timing.  This decision also approves and adopts, without modification, an amendment that reflects the proposed updated audit report timing to the settlement agreement that was approved and adopted in D.24-03-010.  Specifically, the fourth full paragraph on page 4 of D.24-03-010 beginning with “(b) LSPGC can submit the audit report required by…” is modified to state “(b) LSPGC can submit the audit report required by Section VI.C every five-years, rather than annually, with the first audit report due no later than May 1st of the year after the calendar year LSPGC becomes a Participating Transmission Owner pursuant to the California Independent System Operator tariff and shall include an audit for the previous calendar year, with subsequent audits and auditor’s reports due every five-years thereafter, on the condition that LSPGC makes its Federal Energy Regulatory Commission Form 1 and Form 3-Q available to California Advocates on request.”

Item 33. R.20-05-003 (Electricity Resource Portfolios for the California Independent System Operator for 2025-2026 Transmission Planning Process)

This decision recommends to the CAISO for its 2025-2026 Transmission Planning Process the analysis of two electricity portfolios: a reliability and policy-driven base case portfolio and a sensitivity portfolio.  The base case portfolio recommended is based on the greenhouse gas (GHG) emissions target for the electricity sector of 25 million metric tons by 2035, includes the resources contained in the individual integrated resource plans submitted to the Commission by the load serving entities (LSEs) in November 2022, and relies on the same modeling assumptions as the adopted preferred system plan portfolio, with some relevant updates described in this decision.  The portfolio achieves 99 percent clean energy serving retail load by 2035, with a portfolio of approximately 63 gigawatts of new storage and clean energy to come online between now and 2035.  This decision also asks the CAISO to reserve deliverability on the transmission system for certain diverse resources that are geographically limited and take longer to develop, including geothermal, biomass, offshore wind, non-battery long duration energy storage, and a portion of the total amount of in-state/onshore and out-of-state wind.  The decision also requests that the CAISO study, but not yet trigger the investment in, new transmission to support some out-of-state wind and Northern California wind (not within the CAISO Balancing Authority Area), since these resources would require extensive new transmission development that will be complex to accomplish and will require regional cooperation.  The sensitivity electricity portfolio recommended is intended to help study the transmission implications of a portfolio with a greater volume of long lead-time (LLT) resources than in the base case portfolio, which relies on the resources included in the LSE plans, with amounts and types similar to those included in D.24-08-064, while also including the LSE planned resources as submitted in November 2022 only through 2030, with the capacity expansion model allowed to optimize thereafter.  The decision finds that the sensitivity analysis will help the state better analyze the appropriate transmission development to support the LLT resources called for in D.24-08-064.

Item 34. R.25-02-XXX (Energy Resource Recovery Account and Power Charge Indifference Adjustment Policies and Processes)

This order institutes a Rulemaking to consider changes to rules and processes applicable to the electric fuel and purchased power (Energy Resource Recovery Account, or ERRA) annual forecast and compliance proceedings, as well as changes to the Power Charge Indifference Adjustment (PCIA).  The order states that some policy or rule changes applicable to broader procurement guidance that impact ERRA may be considered.  The objectives of this proceeding are to consider and identify reasonable improvements to existing ERRA and PCIA rules, mechanisms, and processes to ensure best practices in utility forecasting and other procurement plan activities; to identify ways to mitigate and respond to rate volatility, whether resulting from market conditions or ratemaking constructs; to best ensure indifference among bundled and departed customers; and to provide policy guidance to ensure that individual utility forecast ratemaking proceedings function as efficiently and consistently as possible.

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (CAISO)

Stakeholder Initiatives: Upcoming Meetings and Deadlines

Interconnection Process Enhancements

CAISO has posted the Interconnection Process Enhancements 2023 Track 3 Final Proposal to the initiative webpage. A public stakeholder call will be held on February 25, 2025 to discuss this proposal, and comments are due by March 4, 2025.  Further information is available here.

2024 Transmission Plan Deliverability Allocation Report

CAISO has posted the revised 2024 Transmission Plan Deliverability Allocation Report to its website, available here.

Cluster 15 Application Status

On February 12, 2025, all Cluster 15 applicants were notified via the Grid Resource Interconnection Portal of their application status and overall project score.  Application statuses include: 1) technical validation; 2) auction; 3) reimbursement review; and 4) withdrawn.  Further information is available here.

Storage Design and Modeling

CAISO will host a virtual working group meeting for the Storage Design and Modeling initiative on February 20, 2025.  Written comments are due March 5, 2025.  Further information is available here.

Flexible Capacity Requirement Methodology

CAISO will hold a public stakeholder call on February 24, 2025, to discuss the Flexible Capacity Requirement Methodology for 2026 through 2028.  Written comments are due March 10, 2025.  Further information is available here.

2025-2026 Transmission Planning Process

CAISO will host a hybrid public stakeholder meeting on February 26, 2025, covering the 2025-2026 Transmission Planning Process draft study plan.  The draft plan will be posted to the process webpage on February 19, 2025.  Further information is available here.

Gas Resource Management Working Group

CAISO has published an Issue Paper for the Gas Resource Management Working Group initiative, and hosted a stakeholder call on February 13, 2025.  Written comments are due March 11, 2025.  Further information is available here.

2025 Annual Interregional Coordination Meeting

CAISO will host the Annual Interregional Coordination meeting in-person at its Folsom offices on March 24, 2025. Attendees may choose to participate in-person at the ISO, or virtually. Further information is available here.

2025 CAISO Legal Forum

CAISO will host its Legal Forum on Thursday, April 10, 2025, at its headquarters in Folsom, California.  This event provides opportunities for legal professionals from the energy industry to network, discuss current legal topics, gain Minimum Continuing Legal Education credit, and tour the CAISO control room overlook.  Further information is available here.

CALIFORNIA ENERGY COMMISSION (CEC)

2024 Integrated Energy Policy Report (IEPR) Update

The CEC is working on its 2024 IEPR Update and ongoing workshops were held through December 2024 to develop the record.  The policy recommendations included in the 2024 IEPR Update will be based on the record developed during the proceedings, including data and technical analyses by staff and stakeholders.  According to the workshop schedule (which is subject to change), after various workshops throughout the past few months, the CEC will consider adoption of the 2024 IEPR Update at the March 17, 2025 Business Meeting.

2025 IEPR

On January 28, 2025, the CEC published a Notice requesting feedback on the Draft Scoping Order for the 2025 IEPR.  According to the Notice, the proposed scope includes: advancing clean energy development; electricity and natural gas forecast; and a load-shift goal update.  Comments were due to the Docket Unit by 5:00 p.m. on February 11, 2025.  Additional details about the proposed scope are available in the Notice, which also includes a proposed task/event schedule (which is subject to change):

Task/Event	Estimated Date(s)
Public Workshops on specific topics	December 2024 – January 2026
Final Scoping Order Released	March 2025
Adopt order instituting informational proceeding for 2025 IEPR	April 2025
Release draft 2025 IEPR	November 2025
Public and tribal engagement and consultation	December 2024 – January 2026
Release final 2025 IEPR	February 2026
Adopt 2025 IEPR	March 2026

On February 26, 2025, the CEC will host a remote workshop from 10:00 a.m. to 4:30 p.m. regarding California’s economic and demographic landscape, which will help shape the 2025 IEPR California Energy Demand Forecast.  Additional details, including remote-access instructions, are available in the workshop Notice.

Offshore Wind

The California Ports and Offshore Wind Symposium (Symposium) will take place on February 21, 2025 in person at the Port of Long Beach.  Remote access via WebEx is also available. According to the Symposium agenda, topics to be discussed at the Symposium include upgrading ports to achieve offshore wind, climate, and environmental goals; developing the new offshore wind workforce in port communities; and collaborating to improve portside communities.  The Symposium is free to attend and registration information is available here.  For remote-access instructions and additional information regarding the Symposium, please see the Symposium Notice.

Electrification Summit

On March 11 and 12, 2025, the CEC will host the second annual Electrification Summit in Sacramento.  The Summit themes include healthy buildings, clean industry, and empowered communities.  Day 1 information (including the Day 1 Notice and agenda) is available here and Day 2 information (including the Day 2 Notice and agenda) is available here.  Click here to register to attend the Summit.

2025 California Demand Flexibility Summit

On February 18, 2025, the CEC circulated a “Save the Date” email notification regarding the 2025 California Demand Flexibility Summit.  The Summit will be held at the UC Davis Conference Center on May 22, 2025.  According to the Save the Date, the Summit will provide an “opportunity to discuss the progress and challenges in achieving California’s load shift goal of 7,000 megawatts by 2030.”  Additional information regarding the Summit will be posted as it becomes available from the CEC.

Demand Side Grid Support (DSGS) Program Guidelines

On January 14, 2025, the CEC issued a draft Fourth Edition with proposed changes (redlined version is available here) to the DSGS Program Guidelines, which establish the rules for the program, including eligibility requirements, participation process, and incentive options.  The DSGS Program was created pursuant to AB 205 (Ting, Chapter 61, Statutes of 2022) and expanded by AB 209 (Ting, Chapter 251, Statutes of 2022).  The DSGS Program is part of the State’s Strategic Reliability Reserve and provides incentives to reduce customer net-energy load during extreme events with upfront capacity commitments and per-unit reductions in net load.

Notice of Proposed Emergency Action on Refinery Reporting Requirements

On January 31, 2025, the CEC released a Notice of Proposed Emergency Action and Express Terms in the docket related to implementation of SBX1-2 (Docket No. 23-OIR-03), the “California Gas Price Gouging and Transparency Law” signed by Governor Newsom in March 2023.  The Notice states that the proposed action and express terms were considered at the February 12, 2025 Business Meeting and submitted to the Office of Administrative Law on February 13, 2025 with an effective date of February 23, 2025.  The proposed regulations would clarify and refine the informational and procedural requirements with respect to existing refinery and major petroleum product marketer projection reports.  The proposed regulations also define key terms pertaining to the reporting requirements.

Zero Emissions Vehicles (ZEVs)

On January 14, 2025, the CEC issued a request for information (RFI) in Docket 22-EVI-04 to better understand the impact of vandalism on charging reliability and to improve convenience for EV drivers.  The CEC seeks information from EV charging station operators and other interested organizations, stakeholders, and interested members of the public on the severity, extent, and frequency of vandalism events that render charging ports inoperable.  The CEC is also seeking information on measures and practices that have proved effective at reducing vandalism.  The goal of the RFI is to identify and work to prevent or address factors, such as vandalism, that can reduce charger reliability and the public’s confidence in a convenient, reliable, and safe charging network for their EVs.  The RFI, which is available here, poses a detailed set of questions for stakeholder input.  Responses to the RFI were due by February 17, 2025.

Lithium Valley Vision Informational Proceeding

On February 19, 2025, Lead CEC Commissioner Noemi Gallardo hosted a workshop to discuss potential strategies, actions and policies in an effort to “help ensure lithium production from the Salton Sea region is competitive with global lithium supplies and prices” as well as to “facilitate expanded geothermal and lithium production in the region in a responsible and locally beneficial manner.”  Additional information is available here.  Written comments may be submitted to the Docket Unit by 5:00 p.m. on February 27, 2025.

CEC Business Meetings

The next CEC Business Meeting is scheduled for March 17, 2025. 

CALIFORNIA AIR RESOURCES BOARD (CARB)

Meetings and Workshops

On February 18, 2025, CARB held a meeting for discussion regarding CARB’s Clean Transportation Incentives Funding Plan Development Process, which explains how CARB will spend money on projects related to ZEV and improving air quality. During this meeting, CARB staff will give an update on the Clean Transportation Regional Outreach Coordinator efforts of 2024 and present on the Funding Plan Reflection Survey Results from the January Evening Community Meeting.

On February 25, 2025, at 9:00 a.m., CARB will hold a remote public workshop on technical analyses underway to support the development of a report on hydrogen production and use in California, as required by Senate Bill (SB) 1075.

Opportunities for Public Comment

CARB has extended the public comment period for information to aid in the implementation of new climate-related disclosure laws, SB 253 and SB 261.  Comments may be submitted here until March 21, 2025.

MINNESOTA PUBLIC UTILITIES COMMISSION (MPUC)

On February 20, 2025, the MPUC will hold the second day of hearings regarding Xcel Energy’s integrated resource plan and firm dispatchable resource docket, including beginning deliberations based on oral arguments and commissioner questions at the February 18 hearing. Additionally, at its agenda meeting on February 28, 2025, the MPUC will consider whether to establish a ratemaking treatment for early retiring electric facilities that would apply to Xcel Energy, Minnesota Power, and Otter Tail Power Company (Docket No. E002, 015, 017/CI-23-375). The MPUC will also (1) discuss the possibility of returning the proceeds from the sale of land at Sherco to Xcel Energy’s electric customers, and (2) determine whether a certificate of need is required for emergency backup generators at Amazon Data Services, Inc.’s (ADS) proposed data center, and if so, whether ADS should receive requested exemptions to its certificate of need application content requirements (Docket No. PT7151/CN-24-435).

FEDERAL ENERGY REGULATORY COMMISSION (FERC)

On February 20, 2025 at 10:00 a.m. eastern time, FERC will hold its Open Meeting at FERC Headquarters, 888 First St. N.E., Washington, DC 20426.  The meeting may be accessed by webcast here. The Sunshine Act Meeting Notice with the items to be considered by the Commission is available here.

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[1] Per the CPUC’s Rules of Practice and Procedure Rule 14.3, comments on proposed decisions are due 20 days after issuance of the proposed decision, and reply comments are due five days thereafter.  Comments on draft resolutions are due 20 days after the draft resolution appears in the CPUC’s daily calendar, per Rule 14.5.