DWGP Summer Series: The Public Utilities Commission of the State of California (CPUC) has Proposed a Rule that Would Create a Permitting Process for Building Battery Storage Facilities

Article By DWGP Summer Associate Kegan Nelson - UC Davis School of Law 2024

On May 18, 2023, the CPUC issued an Order Instituting Rulemaking to amend General Order 131-D. The main focus of the Order is compliance with California SB 529 which requires the CPUC to allow regulated utilities to use the permit-to-construct process to obtain a permit to modify transmission infrastructure, rather than going through the more burdensome process to obtain a Certificate of Public Convenience and Necessity. Overall, the rulemaking is intended to reduce barriers to bolstering transmission infrastructure.

As part of the proposal, the CPUC has suggested creating a permitting process for the construction of battery facilities of greater than 50 MW. This would require developers desiring to build battery facilities to apply for a permit-to-construct from the CPUC; currently there is no specific permitting process for large battery facilities. Developers must seek project-specific exemptions to obtain a permit for large battery projects. Once the rule goes into effect, battery facility developers will be required to adhere to established permitting requirements, including providing maps of the surrounding area, environmental impact information, and proper notice to affected parties.

Smaller projects, under 50 MW, are generally exempt from the CPUC’s permitting procedures, and the CPUC has not suggested changes to smaller project permitting. However, the new rule, if adopted, would pave the way for uniform procedures for permitting utility-scale projects.

With California’s goal of carbon-neutrality by 2045 and increasing reliance on renewable energy generation to achieve that goal, development of large battery storage will be essential to continue to meet grid demands, especially in the evenings when wind and solar generation decrease. This rule, if adopted, would give developers a clear framework with established requirements to apply for permits for battery projects, rather than forcing them to continue to seek permitting exceptions.

Please contact Sean Neal or Keith Gordon for more information on project development, from planning, to permitting, to power purchase agreements.

A link to the Order Instituting Rulemaking is available here.