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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 Implementation Plan. Read it here (Staff proposal attached).
The Commission voted to approve a decision for Track 4 Phase 2 of the proceeding on April 6, 2023. The decision adopted implementation rules for the Microgrid Incentive Program. Read it here.
Resiliency and Microgrids Working Group
As part of the rulemaking, the CPUC organized a working group to facilitate thoughtful and informed discussions to continue to support the goal of resiliency and the commercialization of microgrids. The working group is not currently meeting, though it may begin meeting again at a future date.
Read the draft Charter here.
For materials and additional information on past 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.
On April 6, 2023, the Commission approved rules for the MIP for Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E). It allocates $79.2 million for PG&E, $83.3 million for SCE, and $17.5 million for SDG&E. Projects selected under the MIP can receive up to $15 million in award funding.
Additional information:
- The approved decision can be read here.
- Program Handbook: The Decision requires the utilities to create and post a Handbook to utility webpages within 180 days of the Commission approval that will guide applicants through the program and explain how potential projects will be evaluated.
Timeline
- April 14, 2023 - Commission Decision approved the MIP Implementation Plan
- Early October 2023 - Within 180 days upon issuance of the decision, the utilities shall make available the Microgrid Incentive Program Handbook.
- Early July 2024 - The first MIP application window opens no later than nine (9) months after the publication of the MIP Handbook.
* IOU Program Administrators will provide community outreach and consultation to interested applicants prior to opening the application window.
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
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