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  • Microgrids Legislation

    SB 1339, a bill enacted in 2018, directs the California Public Utilities Commission, in consultation with the California Energy Commission and California Independent System Operator, to undertake a number of activities to further develop policies related to microgrids. The legislation added Chapter 4.5, Sections 8370-8372 to California's Public Utilities Code. Read the full bill and statutory language here.

    Microgrids Rulemaking

    The California Public Utilities Commission voted to initiate a new rulemaking to consider how to implement the requirements of SB 1339 at its September 12, 2019 public meeting. The "Order Instituting Rulemaking" (OIR) that formally launched the new proceeding was then officially issued on September 19, 2019. Read it here. The OIR includes a preliminary description of the issues the Commission intends to address in the rulemaking.

    Commissioner Genevieve Shiroma, the Assigned Commissioner for the rulemaking, released a Scoping Memo on December 20, 2019.  Read it here.

    The Commission voted to approve a decision for Track 1 of the proceeding on June 11, 2020. The decision adopted short term actions to accelerate microgrid deployment and related resiliency solutions. Read it here.

    Commissioner Genevieve Shiroma, the Assigned Commissioner for the rulemaking, released a Scoping Memo for Track 2 on July 3, 2020. Read it here.

    Administrative Law Judge Colin Rizzo issued a ruling on July 23, 2020 requesting comment on staff's proposal for facilitating the commercialization of microgrids pursuant to SB 1339.  Read it here.  (Staff proposal and concept paper attached).  

    Commissioner Genevieve Shiroma and Administrative Law Judge Colin Rizzo issued a joint ruling on September 4, 2020 requesting comment related to utility deployment of temporary generation and alternatives to diesel fuel and technology for the purpose of providing power to customers at safe-to-energize substations during transmission outages.  Read it here (Proposal and August 25th Workshop Challenge Statement attached).

    The Commission voted to approve a decision for Track 2 of the proceeding on January 14, 2021.  The decision adopted rates, tariffs, and rules facilitating the commercialization of microgrids pursuant to SB 1339 and resiliency strategies.  Read it here.  

    Commissioner Genevieve Shiroma released an Amended Scoping Memo and Ruling for Track 3 on February 9, 2021.  Read it here.

    The Commission voted to approve a decision for Track 3 of the proceeding on July 15, 2021. The decision adopted a suspension of the capacity reservation component of the standby charge for eligible microgrid distributed technologies.  Read it here.

    Commissioner Genevieve Shiroma released an Amended Scoping Memo and Ruling for Track 4 on August 17, 2021, including an expedited Phase 1 of Track 4 addressing summer 2022 and summer 2023 reliability.  Read it here.

    The Commission voted to approve a decision for Track 4 Phase 1 of the proceeding on December 2, 2021. The decision adopted microgrid and resiliency solutions to enhance summer 2022 and summer 2023 reliability.  Read it here.

    Commissioner Genevieve Shiroma released an Amended Scoping Memo and Ruling for Track 4 Phase 2 and Track 5 of the Proceeding on December 17, 2021, including the Microgrid Incentive Program, a multi-property microgrid tariff, and the value of resiliency.  Read it here.

    Administrative Law Judge Colin Rizzo issued a ruling on July 6, 2022 requesting comment on staff's proposal for the Microgrid Incentive Program. Read it here.

     

    Resiliency and Microgrids Working Group

    As part of the rulemaking, the CPUC is organizing a working group to facilitate thoughtful and informed discussions to continue to support the goal of resiliency and the commercialization of microgrids. Specifically, the Resiliency and Microgrids Working Group (RMWG) will further explore the issues identified in the proceeding thus far which may include but not limited to the standardized metrics for measuring resiliency and reliability values, CAISO wholesale market, critical facilities, and other topics. The topics may be subject to change and reprioritization as the discussions evolve over the course of the working group meetings.

    Read the preliminary schedule here.

    Read the draft Charter here.

    Working Group Scope FAQ

    For past and upcoming working group meetings, please refer to the Resiliency and Microgrid Events and Materials section here.

     

    Microgrid Incentive Program

    In January 2021, the Commission authorized the Microgrid Incentive Program, with a $200 million budget, to fund clean energy microgrids to support the critical needs of vulnerable communities impacted by grid outages and to test new technologies or regulatory approaches to inform future action.  

    The Microgrid Incentive Program is intended to provide funding for community, local and tribal government-driven, reliability and resilience projects with benefits including:

    •  Increased electricity reliability and resiliency in communities that may be at higher risk of electrical outages.
    • Increased reliability for critical infrastructure facilities such as fire stations, schools, and nursing homes that keep communities safe.
    • Reduced impacts of power outages and minimized disruptions for low-income households, individuals who rely on un-interrupted power, utilize assistive and/or medical equipment, or experience other access and functional needs.
    • Reduced Greenhouse Gas emissions by deploying clean generation technologies and expanding the market for resiliency solutions that do not rely upon diesel generation.

    While the program concept is approved, the program design and implementation details still need to be worked out.  Staff and the program administrators will continue to seek input from a wide range of stakeholders via public workshops and other public processes on how to best serve the electrical needs of vulnerable communities with the program investments. 

    The anticipated launch date is in 2023.

    For more information, please click here

     

    Track 4 Phase 2 Calendar of Activities

    Below is the Track 4 Phase 2 schedule for the Microgrids Rulemaking.  This schedule will be refined and adjusted over time.

    Proceeding Milestone
    Date
    Microgrid Incentive Program (MIP) Implementation Plan, Public Workshop
    October 26, 2021
    Joint IOU MIP Implementation Plan, filed and served
    December 3, 2021
    Amended Scoping Memo and Ruling, filed and served December 17, 2021
    Opening Comments on Joint IOU MIP Implementation Plan, filed and served
    January 14, 2022
    Reply Comments on Joint IOU MIP Implementation Plan, filed and served
    January 28, 2022
    ALJ Ruling with Staff Proposal, filed and served
    February 2022
    Comment on the Staff Proposal, filed and served
    March 2022
    Reply Comments on the Staff Proposal, filed and served
    March/April 2022
    Proposed Decision Released in accordance with the Rules
    ALJ Ruling: Draft Multi-Property Microgrid Tariff Guiding Principles
    June 2022
    Opening Comments on Multi-Property Microgrid Tariff Guiding Principles, filed and served
    July 2022
    Reply Comments on Multi-Property Microgrid Tariff Guiding Principles, filed and served
    July 2022
    ALJ Ruling: Guidance to Parties on Submittal of Microgrid Multi-Property Tariff Proposals
    August 2022
    Stakeholder Proposals for Microgrid Multi-Property Tariff, filed and served
    August 2022
    Public Workshop: Stakeholder Presentation on Microgrid Multi-Property Tariff Proposals
    September 2022
    Opening Comments to Stakeholder Microgrid Multi-Property Tariff Proposals, filed and served
    September 2022
    Reply Comments to Stakeholder Microgrid Multi-Property Tariff Proposals, filed and served
    October 2022
    ALJ Ruling with Energy Division Staff Proposal for Microgrid Multi-Property Tariff
    Late October 2022
    Energy Division Public Workshop on Multi-Property Tariff
    November 2022
    Opening Comments to Energy Division Staff Proposal for Microgrid Multi-Property Tariff, filed and served
    November 2022
    Reply Comments to Energy Division Staff Proposal for Microgrid Multi-Property Tariff, filed and served
    November 2022
    Proposed Decision
    Released in accordance with the Rules

     

    Track 4 Phase 1 Calendar of Activities

    Below is the Track 4 Phase 1 schedule for the Microgrids Rulemaking. A decision for Track 4 Phase 1 of the proceeding was adopted on December 2, 2021.

    Proceeding Milestone
    Date
    Amended Scoping Memo and Ruling, filed and served August 17, 2021
    Ruling on Guidance and Expectations for Proposal Submittals
    August 23, 2021
    Microgrid Reliability Proposals, filed and served
    September 10, 2021
    Opening Comments, filed and served
    September 24, 2021
    Reply Comments, filed and served
    October 1, 2021
    Proposed Decision, filed and served October 29, 2021
    Comments on Proposed Decision, filed and served November 10, 2021
    Reply Comments on Proposed Decision, filed and served
    November 16, 2021

     

    Track 3 Calendar of Activities

    Below is the Track 3 schedule for the Microgrids Rulemaking.  A decision for Track 3 of the proceeding was adopted on July 15, 2021.

    Proceeding Milestone
    Date
    Amended Scoping Memo and Ruling, filed and served February 9, 2021
    Comments on Ruling, filed and served March 3, 2021
    Reply comments on Ruling, filed and served March 10, 2021
    Proposed Decision, filed and served June 9, 2021
    Comments on Proposed Decision, filed and served June 29, 2021

     

    Track 2 Calendar of Activities

    Below is the Track 2 schedule for the Microgrids Rulemaking. A decision for Track 2 of the proceeding was adopted on January 14, 2021. 

    Proceeding Milestone

    Date

    ALJ Ruling/Staff Proposal, filed and served July, 23, 2020
    Energy Division Workshop for Track 2 Staff Proposal August 5, 2020
    Comments on the Staff Proposal, filed and served August 14, 2020
    Reply comments on Staff Proposal, filed and served August 28, 2020
    Joint Energy Division and Stakeholder Workshop on Alternatives to Diesel for Substation Power During PSPS in 2021 August 25, 2020
    ACO and ALJ Ruling on Minimizing Emissions from Temporary Generation, filed and served September 4, 2020
    Comments on ACO and ALJ Ruling, filed and served September 25, 2020
    Reply comments on ACO and ALJ Ruling, filed and served October 2, 2020
    Proposed Decision, filed and served December 7, 2020
    Comments on Proposed Decision, filed and served December 28, 2020
    Reply comments on Proposed Decision, filed and served January 4, 2021

    Track 1 Calendar of Activities

    Below is the Track 1 schedule for the Microgrids Rulemaking. A decision for Track 1 of the proceeding was adopted on June 11, 2020.

    Proceeding Milestone Date
    ALJ Ruling/Staff Proposal, filed and served January 21, 2020
    Investor Owned Utility Proposals for Immediate Resiliency Strategies for Outages, filed and served January 21, 2020
    Comments on the Staff Proposal and Utility Proposal, filed and served January 30, 2020
    Reply comments on Staff Proposal and Utility Proposal, filed and served February 6, 2020

    Contact Information

    Jason Ortego, Supervisor

    415-470-0958

    jason.ortego@cpuc.ca.gov