The California Public Utilities Commission (CPUC) has updated its electric utility transmission siting regulations to modernize and accelerate how transmission infrastructure is planned, permitted, and built. as part of its ongoing efforts to address electricity reliability and meet the state’s clean energy goals.
The new electric transmission process adjustments under General Order (GO) 131-D (now updated to GO 131-E), are part of the CPUC’s process to implement Senate Bill (SB) 529 (Hertzberg, 2022), which requires reforms to the permitting, approval, and construction processes for electric transmission projects.
“I am pleased that these important updates to the CPUC’s permitting processes for electric transmission projects have been adopted today,” said Commissioner Karen Douglas, who is assigned to the proceeding. “These changes will accelerate permitting timelines by reducing redundancy and shifting environmental analysis earlier in the application process. This modernization of the CPUC’s approach to permitting is an important step in preparing the CPUC to address the scale of grid upgrades that will be needed to maintain a reliable electricity system over time and meet the state’s climate goals.”
“This decision adopts thoughtful process improvements to speed up how transmission infrastructure is permitted and constructed,” said CPUC president Alice Reynolds. “I appreciate how this decision strikes a balance between creating government efficiencies while preserving California’s environmental review process.”
What’s changing?
CPUC argues that transmission regulation updates are “essential” as it modernizes infrastructure planning and permitting.
The new regulations include:
- Pre-filing consultation: Transmission project applicants are now required to meet with CPUC staff at least six months before submitting their applications in order to help better prepare applicants and create a smoother review process.
- Applicant-prepared documents: Transmission project applicants are now allowed to submit their own draft versions of California Environmental Quality Act (CEQA) documents with their transmission project applications in order to expedite environmental review by minimizing duplication and enabling applicants to complete more of the analysis before filing an application.
- Pilot program to explore faster environmental review: A pilot program has been created to track CPUC CEQA review timelines and explore the potential for a faster CEQA review process for certain electric transmission projects.
- Presumption of need for projects: A “rebuttable presumption” has been implemented per Assembly Bill (AB) 1373, such that when the California Independent System Operator (CAISO) has determined that a project is needed, the CPUC will defer to that determination of need. This is meant to streamline CEQA review by avoiding duplicative need determinations and “unnecessary” alternative analyses.
“Today’s decision updating General Order 131-E provides for a more efficient and transparent transmission permitting process,” said Commissioner Darcie L. Houck. “Changes to the General Order will promote acceleration of the permitting process, require early coordination between the applicant and the CPUC on environmental documentation, clarify terms, and incorporate a rebuttable presumption as to the need for proposed projects that are CAISO-approved pursuant to Public Utilities Code section 1001.1. These and other provisions of the decision will allow for expedited development of transmission projects to meet California’s clean energy goals.”
More renewables on the horizon
CPUC has a good reason to want to improve its transmission infrastructure: last year, the Commission adopted a plan that mandates the construction of more than 56 GW of renewable generation by 2035, including 4.5 GW of offshore wind, as part of an to reduce statewide annual GHG emissions from the electric sector to 25 million metric tons (MMT) in the same timeframe.
The GHG reduction plan, which CPUC says represents the “most aggressive end” of the range identified by the California Air Resources Board, aims to achieve a nearly 60% reduction compared to 2020 levels. By 2045, CPUC says the portfolio would reduce emissions by 85%, with a level of 113% clean energy – exceeding 100% because it is based on retail sales and includes exported energy.
In addition to mandating the construction of renewables, the CPUC also recommended to the California Independent System Operator (CAISO) that the resource portfolio achieving the 25 MMT GHG goal be the foundation for planning transmission investments – utilized as both the reliability base case and the policy-driven base case for study in its 2024-2025 Transmission Planning Process (TPP). CPUC also recommended that CAISO analyze a policy-driven sensitivity case to test the transmission buildout needed for a grid stress case where 15 GW of natural gas generation is retired by 2039.