USA – CALIFORNIA Law and Practice Contributed by: Nora Sheriff, Gwenneth O’Hara, Samir Hafez, Antonio Carrejo and Timothy Lee, Buchalter LLP
3.2 Obtaining Approvals to Construct and Operate Generation Facilities See 3.1 Constructing and Operating Generation Facilities . 3.3 Approvals to Construct and Operate Generation Facilities California has extensive approval processes for sit- ing, construction and operation of generation facili- ties. Such approvals involve various agencies, such as the CPUC and CEC. Siting Determining which agency has jurisdiction depends on the type of generation facility. Thermal power plants of 50 MW or more fall under the exclusive authority of the CEC; the CEC’s Application for Certification (AFC) includes an environmental assessment that is the functional equivalent to an environmental impact report under CEQA. Other facilities, such as wind and solar, require co-ordination with counties and cities. Land Use Construction of generation facilities requires a full review under CEQA. After an environmental review, the project may require mitigation measures for sig- nificant environmental impacts. The special conditions that may be imposed on a generation facility include protections for biological resources, cultural resourc- es, visual/aesthetic impacts, and air and water quality. The CEQA process requires the opportunity for public participation, which typically involves public hearings and comment periods, Tribal consultation, and inter- venor participation in CEC proceedings. California enacted major CEQA reforms in June 2025 through Assembly Bill 130 (AB 130) and Senate Bill 131 (SB 131), which significantly expand exemptions and streamlined environmental review, particularly for housing, infrastructure, and public-serving projects. Interconnection and Transmission In California, the process requires preliminary agree- ments with CAISO or a local utility. With these agree- ments, there may be a need for grid upgrade or con- gestion conditions.
• community values; • electric and magnetic field (EMF) issues; • environmental impacts; • feasible mitigation measures; and • project alternatives under CEQA.
The next review process is the Permit to Construct, which is necessary before construction begins. This review is narrow compared to the CPCN process, only considering project need, EMF exposure, envi- ronmental impacts, mitigation measures and project alternatives under CEQA. The third process is for electric distribution lines and other substations. While these projects do not require a CPCN or Permit to Construct, the utility must request input from local authorities on land use matters and obtain any necessary non-discretionary local permits required for construction and operation of these projects. Lastly, the project must comply with CEQA, which generally requires California public agencies – both state and local – to inform decision-makers and the public about a proposed project’s potential environ- mental impacts and to minimise any impacts to the extent feasible. California has enacted broader CEQA reforms (AB 130 and SB 131) that introduced new exemptions and streamlining measures across mul- tiple sectors; however, these legislative changes did not specifically target transmission siting and primarily affect CEQA implementation more generally. Operation of Generation Facilities The CPUC’s GO 167-B establishes maintenance and operational standards for electric generating facilities to ensure safe and reliable service to customers. The GO includes: • generator maintenance, generator operator and generator logbook standards; • a programme for audits, inspections and incident investigations; • reports of safety incidents, compliance filings and responding to CPUC staff enquiries; and • enforcement of standards.
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