USA – CALIFORNIA Law and Practice Contributed by: Nora Sheriff, Gwenneth O’Hara, Samir Hafez, Antonio Carrejo and Elisa Rivas, Buchalter
4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities Certificate of Public Necessity and Convenience (CPCN) In California, an IOU must obtain a CPCN from the CPUC for the construction and operation of any electric power line facilities, substations or switchyards designed for immediate or eventual operation at voltages between 50 kV and 200 kV, or 200 kV or more. GO 131-E provides exemp- tions for the following: • replacement of existing transmission lines or supporting structures; • minor relocation of existing transmission line facilities; • conversion of existing overhead lines to underground; and • placing new or additional conductors, insula- tors or accessories to existing structures. Permit to Construct Pursuant to GO 131-E, a Permit to Construct is required for the extension, expansion, upgrade or modification of existing electrical transmission facilities, except where an exemption applies from Section III(B)(2) or if a utility files a CPCN application. Regulatory Process Once an entity files a CPCN or Permit to Con- struct application, the CPUC assigns an admin- istrative law judge, and a two-track parallel proceeding begins. The first track is the environ- mental review, pursuant to CEQA. The second track is the review of the project’s need and cost, pursuant to the California Public Utilities Code Section 1001 and GO 131-E. The CEQA phase allows for public participation through public meetings and written comment
regulated utility collects decommissioning costs from ratepayers, the CPUC must first make a finding that recovery of those costs is just and reasonable. The CPUC may authorise a utility to record decommissioning costs in a Memoran- dum Account, subject to future review for just and reasonableness. 4. Transmission Lines and Associated Facilities 4.1 Constructing and Operating Transmission Lines and Associated Facilities In California, the ownership, construction and operation of transmission lines and associated facilities are subject to the requirements set forth in the CPUC’s GO 131-E. This GO also governs transmission-level BESS projects. Any quali- fied entity may propose to construct and oper- ate transmission lines if the CAISO approves the proposal via the CAISO TPP, or if the entity obtains a CPCN from the CPUC. The CPUC’s Electric Rule 21 encompasses interconnection, operating and metering require- ments for generation facilities that connect to an IOU’s distribution system and CPUC-juris- dictional transmission system. Rule 21 does not govern CAISO-controlled transmission intercon- nections. FERC issues permits for construction or modi- fication of electric transmission lines, but only for those that are located in National Interest Electric Transmission Corridors (“National Cor- ridors”). FERC will notify stakeholders if a pro- ject requires an environmental assessment or an environmental impact statement pursuant to the National Environmental Policy Act (NEPA).
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