January 14, 2025

Regulatory Update for January 14, 2025

(Covering Week of January 6, 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:

• California Public Utilities Commission
• California Independent System Operator
• California Energy Commission
• California Air Resources Board
• Pacific Northwest
• Washington State Department of Transportation
• Federal Energy Regulatory Commission

Click here to download this update as a PDF

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

Proposed Decisions and Resolutions

Rulemaking (R.) 20-05-003 (Electric Integrated Resource Planning and Related Procurement Processes).  This decision recommends to the California Independent System Operator (CAISO) for its 2025-2026 Transmission Planning Process the analyses 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 (LSE) 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.  Commission staff have analyzed this recommended base case portfolio for its reliability and emissions characteristics and the portfolio is found, for both metrics, to be within reasonable bounds to recommend to the CAISO for further transmission analysis.  The portfolio achieves 99% 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 instate/on-shore 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 recommended sensitivity electricity portfolio 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, that relies on the resources included in the LSE plans, with amounts and types similar to the those included in Decision (D.) 24-08-064, which authorized the procurement of up to 10.6 gigawatts of offshore wind, geothermal, and long duration energy storage, while also including the LSE planned resources as submitted in November 2022 only through 2030, with the capacity expansion model allowed to optimize thereafter.  This sensitivity analysis will help the state better analyze the appropriate transmission development to support the LLT resources called for in D.24-08-064.

Voting Meeting

The CPUC will hold a voting meeting in San Francisco on January 16, 2025 at 11:00 a.m. P.T.  The following are energy-related items on the agenda:

Item 6. Resolution E-5327 (Portfolio Administrators Proposals for Multi-Distributed Energy Resource Integrated Demand Side Management Frameworks and Programs).  This decision approves with modifications and clarifications the proposed multi-distributed energy resource integrated demand side management frameworks and programs proposed pursuant to D.23-06-055 in Tier 3 Advice Letters (AL).  The decision also requires Pacific Gas & Electric Company (PG&E), Southern California Edison (SCE), and Southern California Gas Company (SoCalGas) to submit subsequent ALs in accordance with applicable CPUC policies, including the program launch checklist and third-party Tier 2 AL requirements, prior to program commencement to provide further details of their plans.  If the pilot program is a third-party program and falls below a $5 million budget threshold or is less than three years in duration, the investor-owned utilities (IOU) must file a Tier 1 AL for each third-party contract.  The decision also requires Bay Area Regional Energy Network, Inland Regional Energy Network, Southern California Regional Energy Network, and Tri-County Regional Energy Network to submit a Tier 2 AL in accordance with the program launch checklist should they wish to expand their programs beyond the scope described in their AL for portfolio years 2024-2027.

Item 17. R.13-11-005 (Order Instituting Rulemaking Concerning Energy Efficiency Rolling Portfolios, Policies, Programs, Evaluation, and Related Issues).  This decision resolves all outstanding matters and closes the proceeding.  This decision addresses a pending motion related to energy efficiency in multifamily housing, and a pending motion about a discovery dispute related to the statewide program administrator for the market transformation framework.  The Commission will address future energy efficiency policies, programs, evaluation, measurement and verification, and related matters in a successor proceeding.

Item 24. Application 23-01-013 (PG&E Tariff Enabling Core Natural Gas Use for Large Back-Up Generation).  This decision grants with modifications new PG&E tariff G-NR2 enabling customers to use core natural gas for 500+ kW generation for back-up power during power outages and while awaiting electrical energization completion.  The decision precludes the use of back-up generators for self-generation of electricity because the tariff is intended to reduce use of large diesel back-up generators, improving air quality and noise concerns.  The tariff is approved for a five-year test period and PG&E must submit annual reports regarding the tariff's implementation and use for Commission consideration.

Item 50. R.21-10-001 (Safety Culture Assessments for Large IOUs).  This decision adopts a Safety Culture Assessment Framework for PG&E, San Diego Gas & Electric (SDG&E), SCE, and SoCalGas.  This framework includes two components: (1) a Comprehensive Assessment of each IOU’s safety culture, conducted once every four years; and (2) an annual Self-Evaluation in the three intervening years to monitor improvement.  The Comprehensive Assessments will be conducted by a third-party independent evaluator.  The Self-Evaluations will be conducted by the individual utility.  This decision also adopts a Utility Safety Culture Working Group to foster collaboration and enhance safety culture improvement efforts.

Upcoming Workshops and Events

Distributed Energy Resource (DER) Working Group Workshops.  As part of Track 2 of the Commission’s R.22-11-013 to consider DER Program Cost-Effectiveness Issues, Data Access and Use, and Equipment Performance Standards, the Commission is hosting a series of workshops from August 2024 through January 2025 to convene stakeholders and assess data needs, use cases, and desired delivery tools.  This may include examination of data privacy and confidentiality rules, cybersecurity issues, and other issues.  These meetings will culminate in a draft and final report with recommendations for the CPUC to consider.  The final meeting is scheduled for January 27 from 2:00 to 5:00 p.m. P.T.  This meeting will address customer usage data and privacy.  Additional information regarding the DER Working Group is available here, and event registration details are available here.  

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (CAISO)

Stakeholder Initiatives: Upcoming Meetings and Deadlines

Interconnection Process Enhancements 2023.  CAISO posted the Interconnection Process Enhancements 2023 Track 3 Draft Final Proposal to the initiative webpage on January 9, 2025, and will host a public stakeholder call on January 15, 2025 to discuss this proposal.  Related information is available in the meeting notice.  Written comments are due by January 29, 2025.  Further information is available here.

2025 Annual Policy Initiatives Catalog and Roadmap Development Process.  CAISO will begin the 2025 Annual Policy Initiatives Catalog and Roadmap development process, and will host a stakeholder call on January 30, 2025.  Further information is available here.

2026 Flexible Capacity Needs Assessment Process.  CAISO is conducting its 2026 Flexible Capacity Needs Assessment.  The data template is available for scheduling coordinators of LSEs to provide CAISO with the variable energy resources contract data needed for the study.  Scheduling coordinators should submit this data by end of day January 15, 2025.  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, CA.  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.

Greenhouse Gas Coordination.  CAISO has published an Issue Paper for its GHG Coordination working group.  The Issue Paper will be discussed during an upcoming virtual meeting on January 21, 2025.  Written comments are due February 11, 2025.  Further information is available here.

Cluster 15 Interconnection Long Lead-Time(LLT) Resource Points Clarification.  CAISO has clarified that long duration storage is not eligible to receive system need points as a LLT resource in Cluster 15 , available here.

Price Formation Enhancements.  CAISO will hold a Price Formation Enhancements Phase 2 working group call on January 22, 2025.  This session will explore the topic of scarcity pricing.  Further information is available here.

2023-2024 Transmission Planning Process.  CAISO has validated the project sponsor applications for the Humboldt to Fern Road 500 kV Transmission Line Project.  Next, CAISO will consider whether these project sponsors are qualified, and select which qualified project sponsor should finance, construct, own, operate, and maintain each transmission solution.  Further information is available here.

Cluster 15 Interconnection Request Queue.  CAISO has posted the initial resubmitted Cluster 15 Interconnection Request Queue Report to its website, 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.  Upcoming IEPR events include the following (note: the workshop schedule is subject to change):

January 21, 2025: Business meeting to consider adoption of the Electricity Demand Forecast.

January 24, 2025: IEPR Commissioner Hybrid Workshop on Regional Electricity Markets and Coordination.

March 17, 2025: Business meeting to consider adoption of the 2024 IEPR Update.

On November 26, 2024 the CEC released the Draft 2024 Integrated Energy Policy Report Update for public comment.  Comments were due by 5:00 p.m. P.T. on January 2, 2025.

On January 9, 2025, the CEC published a Notice of Availability regarding the California Energy Demand Forecast Update 2024-2040, including a notice of possible adoption of the same.  The CEC will consider adoption of the Forecast Update at the January 21, 2025 Business Meeting.

IEPR Demand Forecast

On January 6, 2025, the CEC released new forms and instructions for retail gas and electric suppliers to use when submitting demand forecasts to the CEC.  The revised forms, which vary by supplier type and are available on docket 25-IEPR-03, extend the submission deadline by approximately one month. 

Offshore Wind

The California Ports and Offshore Wind Symposium (Symposium) will take place on February 21, 2025 at the Port of Long Beach.  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. 

Demand Side Grid Support (DSGS) Program Guidelines

On January 14, 2025, the CEC issued a draft Fourth Edition with proposed changes (redlined version 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 Assembly Bill (AB) 205 (Ting, Chapter 61, Statutes of 2022) and expanded by Assembly Bill 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.

Zero Emissions Vehicles

On December 19, 2025, the CEC announced the availability of up to $107 million in grant funds under the second solicitation pursuant to California’s National Electric Vehicle Infrastructure Formula Program.  The grant funds are designed to deploy high-powered, direct-current fast-charging infrastructure for electric vehicle travel along major corridors of the state highway system.  A pre-application workshop was held on January 14, 2025 from 9:00 to 11:00 a.m. P.T.  Additional information is available here. 

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 may be submitted through Monday, February 17, 2025 by e-filing to the 22-EVI-04 docket.

CEC Business Meetings

The next CEC Business Meeting is scheduled for January 21, 2025.  The agenda and backup materials are available here.

CALIFORNIA AIR RESOURCES BOARD (CARB)

Meetings and Workshops

On January 16, 2025, CARB will hold a public meeting on its updated Community Engagement Model.  Registration and additional information are available here.

On January 21, 2025, CARB will hold an evening community meeting on clean transportation incentives.  Registration is available here.

On January 23, 2025, CARB will hold its next Board meeting.  The agenda is available here.

CARB and the CEC is holding a series of evening community meetings on the state’s Transportation Fuels Transition Plan.  The first meeting will take plan in Richmond, California, on January 29, 2025.  The second meeting will be held in Bakersfield, California on February 4, 2025.  On February 5, 2024, the third meeting will be held in Wilmington, California.  The agencies plan to host a virtual workshop on the Plan in Spring 2025.

On January 30, 2025, CARB will hold a meeting of the Advanced Clean Fleets’ Truck Regulation Implementation Group on outreach.  More information and registration are available here.

On February 10, 2025, CARB will hold a meeting of the Advanced Clean Fleets’ Truck Regulation Implementation Group on infrastructure.  More information and registration are available here.

On February 13, 2025, the Scientific Review Panel on Toxic Air Contaminants will hold a public meeting.  More information is available here.

Notices

CARB is issuing regular updates on Advanced Clean Fleets, with the latest available here.  Subscribe here to receive the “Advanced Clean Fleets Flash” here.

The F-Gas Reduction Incentive Program is accepting applications until January 31, 2025 to receive funding to install climate-friendly refrigerant technologies at commercial and industrial facilities.  CARB has recently amended the Program’s Funding Guidelines to expand applicant eligibility.  Applications and more information are available here.

Opportunities for Public Comment

CARB is accepting public comments on the updated California Climate Investments benefit assessment tool, including strategies to identify priority population needs and potential benefits of a project for priority populations.  Comments may be submitted to CARB here or via email to ggrfprogram@arb.ca.gov through January 17, 2025.

CARB has issued a public solicitation for information to aid in the implementation of new climate-related disclosure laws, Senate Bill (SB) 253 and SB 261.  Comments may be submitted here until February 14, 2025.

WASHINGTON STATE DEPARTMENT OF TRANSPORTATION (WSDOT)

On Friday, January 10, 2025, the WSDOT announced that it has extended the application deadline for grants under the National Electric Vehicle Infrastructure (NEVI) program by two-weeks, now falling to January 31, 2025 and 11:59 p.m. P.T., due to the wildfires spreading across Southern California.  The announcement notes that several companies based in Southern California had expressed an interest in the NEVI program and members of the Southern California community may be unable to timely submit NEVI proposals by the original January 15 deadline due to circumstances well beyond their control. 

PACIFIC NORTHWEST

On January 8, 2025, the Oregon Public Utility Commission (OPUC) issued an order in Docket No. UM 2349 approving Idaho Power Company’s (Idaho Power) revised interconnection procedures, as modified by certain OPUC Staff recommendations.  The revised procedures address how Qualifying Facilities interconnect with Idaho Power’s electrical system within the state of Oregon and transition the process for large generator (20 MW and above) to a “first-ready, first-served” cluster study approach in line with FERC Order No. 2023.

FEDERAL ENERGY REGULATORY COMMISSION (FERC)

At the December 19, 2024 Commission Open Meeting, in 189 FERC ¶ 61,212, FERC issued a Notice of Proposed Rulemaking (NOPR) on Reliability Standards for Frequency and Voltage Protection Settings and Ride-Through for Inverter-Based Resources.  In the NOPR, FERC proposes to approve the first set of new North American Electric Reliability Corporation reliability standards that are intended to address inverter-based resources (IBRs).  The NOPR proposes to accept reliability standards that address IBR data sharing, model validation, planning and operational studies, and performance requirements.  The NOPR concerns the ability of IBRs to “ride through” frequency and voltage excursions.  FERC sought comments on the NOPR, but specifically noted its desire for additional information on: (1) the performance requirements in Requirement R1; (2) the absolute rate of change of frequency in Requirement R3; and (3) the adequacy of exemptions for certain IBRs.  Comments will be due 60 days after publication in the Federal Register.

 

[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.