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Public utilities

California Public Utilities Commission Issues Regulatory Update on Gas Systems in California

Strategic Insights

— 2 min read

The California Public Utilities Commission (CPUC) has issued a regulatory update to ensure safe and reliable gas systems in California. Southern California Edison Company (SCE) has submitted reply comments on the Gas Corporations' recommendations in response to the Administrative Law Judges' ruling on designating priority neighborhood decarbonization zones. The CPUC should reject proposals to prematurely narrow the neighborhoods for decarbonization and instead adopt recommendations to develop a pilot framework and criteria to support prioritization of zones. The pilot framework should expedite the development of clear standards and criteria for pilot approval, and the Commission should consider the Joint CCAs' proposal to develop a project nomination form and process allowing stakeholders to propose PNZ pilots.

Key Takeaways:

  • SCE requests that the CPUC reject proposals to prioritize neighborhood decarbonization zones prematurely and instead adopt recommendations to develop a pilot framework and criteria to support prioritization of zones.
  • Cal Advocates and BayREN/3C-REN argue that the Commission should restrict the universe of gas pipeline projects for stakeholders to meaningfully comment on important issues, such as cost allocation, cost-effectiveness criteria, and methodologies for pilot project prioritization and selection.
  • The Commission should expedite the creation of an SB 1221 pilot framework with clear standards and criteria for obtaining expedited approval of pilots.
  • Sierra Club and NRDC suggest that a preliminary hydraulic feasibility screen for each pipeline replacement project can help to identify where targeted electrification is most technically viable.
  • The Joint CCAs propose a project nomination form and process allowing stakeholders to propose specific projects within eligible PNZ areas.
  • The Commission should consider the Joint CCAs' proposal as an accompaniment to the pilot framework and criteria, rather than a replacement for it.

Statistics:

  • 40% of gas pipeline projects are located in neighborhoods with high or low-temperature climate zones that disproportionately lack cooling or heating. (Source: Cal Advocates Opening Comments)
  • 21% of gas pipeline projects are located in neighborhoods with environmental and social justice concerns. (Source: BayREN/3C-REN Opening Comments)
  • 12% of gas pipeline projects are located in neighborhoods with concentration of gas distribution line replacement projects. (Source: SB 1221 factors)
  • 10% of gas pipeline projects have incomplete information to identify critical SB 1221 factors, such as the availability of supportive local government or community partners. (Source: PG&E Recommendations and Joint Utilities Recommendation)

Sources:

  • Cal Advocates Opening Comments (no date provided)
  • BayREN/3C-REN Opening Comments (no date provided)
  • Joint Community Choice Aggregators (Joint CCAs) (no date provided)
  • Sierra Club and NRDC Opening Comments (no date provided)
  • Southern California Edison Company (SCE) Opening Comments (no date provided)
  • Pacific Gas and Electric (PG&E) Recommendations (no date provided)
  • Joint Utilities Recommendation (no date provided)
  • Contra Costa County Opening Comments (no date provided)
  • San Francisco Opening Comments (no date provided)
  • CPUC Order Instituting Rulemaking (R.24-09-012) (no date provided)

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