USA – CALIFORNIA Law and Practice Contributed by: Nora Sheriff, Gwenneth O’Hara, Samir Hafez, Antonio Carrejo and Elisa Rivas, Buchalter
5. Distribution 5.1 Constructing and Operating Electricity Distribution Facilities
ing boards, though state environmental laws still apply. The California Public Utilities Code requires the IOUs to apply to the CPUC for a CPCN before constructing new distribution infrastructure. In a formal CPUC proceeding addressing a CPCN application, the public is permitted to participate and provide input as an “intervenor”. Construction of most new distribution facilities, including distribution lines, substations, large- scale storage and microgrids, also requires review under CEQA to assess and mitigate potential environmental impacts. This process is overseen by the CPUC for IOU projects, and by local agencies for POU or private develop- ment projects. The typical timelines to obtain all necessary approvals vary depending on the nature of the project. 5.3 Terms and Conditions Imposed in Approvals to Construct and Operate Electric Distribution Facilities In California, the terms and conditions included in approvals for the construction and operation of electric distribution facilities will depend on the type of project. However, typical terms and conditions generally fall under the following cat- egories: • environmental – a CEQA review and potential mitigation requirements; • safety: the CPUC’s GO-95, GO-128 and local codes; • interconnection and integration – pursuant to CPUC Electric Rule 21; • operational – may involve curtailment pro- visions, export limits, required “islanding”
Standards governing the safe operation of public utilities’ distribution facilities are set forth in the CPUC’s GOs, including: • GO-95 for overhead lines; • GO-128 for underground electric lines; and • GO-165 for inspection cycles. In addition, to mitigate wildfire risk, AB 1054 and SB 901 impose stringent requirements on veg- etation management, grid hardening and opera- tional practices for distribution utilities. In California, the CPUC’s Electric Rule 21 gov- erns how distributed energy resources such as solar, energy storage and microgrid facilities connect to the utilities’ distribution grid (see 3.1 Constructing and Operating Generation Facili- ties ). For storage and microgrids, the California Legis- lature passed AB 2514 (2010) to encourage the incorporation of storage into the electric grid. SB 1339 (2018) directs the CPUC to facilitate the development of microgrids, and to set pro- curement targets for IOUs and requirements for POUs. 5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities The construction and operation of electric dis- tribution facilities in California typically require approval from local and state agencies, though federal agencies can sometimes be involved. For IOUs, regulatory oversight and approval is pro- vided by the CPUC. For POUs, primary approval authority is typically maintained by local govern-
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