CPUC Proposes Major BioMAT Changes

In early March, the CPUC released a revised Staff Proposal on the BioMAT program.  The Staff Proposal contains 15 separate and significant proposals to revise the BioMAT program.  Generally, the proposals are quite helpful and some – extending the program end date – are absolutely critical.  The most significant recommendations in the Staff Proposal would:

  • Extend the BioMAT program end date from December 31, 2020 to December 31, 2025;
  • Make the program statewide, allowing other purchasers of BioMAT power, instead of limiting it to the three investor-owned utilities;
  • Provide greater operational flexibility and reduce some of the excessive penalty provisions;
  • Extend the time allowed for projects to begin commercial operation;
  • Set deadlines for utilities to execute contracts; and
  • Require projects to provide lifecycle greenhouse gas emissions analyses

See CPUC’s BioMAT Staff Proposal (March2020)

BAC Comments on CPUC Microgrid Proposal

BAC’s comments on the CPUC Staff Proposal on Microgrids focus on the need to include bioenergy and biogas in microgrids.  Relying on solar and batteries alone limits the duration that microgrids can operate.   Bioenergy can extend the duration of microgrids and make them much more reliable by providing a fuel source for backup generators, flexible generation that can fill in around solar and batteries, energy storage, and other grid services.

See R.19-09-009 BAC Comments on ALJ Ruling and Staff Proposal

CPUC Releases Staff Proposal on Microgrids

SB 1339 (Stern 2018) requires the California Public Utilities Commission to adopt a measures to accelerate the development of microgrids to ensure reliable electricity supplies during Public Safety Power Shutoffs and other grid disturbances.  Microgrids are especially important to keep the power on for emergency and essential services.  The CPUC Staff Proposal for short-term actions that can help microgrids before the 2020 fire season focuses very narrowly on microgrids powered by solar and batteries, which are not sufficient for long-duration outages and will not be effective under all circumstances.

See the ALJ Ruling and Staff Proposal on Microgrids Track 1

BAC Comments on CPUC Microgrid Proceeding

BAC submitted comments in late October on the CPUC’s Order Instituting Rulemaking.  BAC urged the Commission to address the need for baseload and flexible generation, to consider opportunities to convert local organic waste to local energy supplies, to include renewable gas for microgrid reliability, to consider the importance of Short-Lived Climate Pollutant reductions, and to consider other upstream benefits like wildfire mitigation and landfill reduction.  BAC’s comments are on BAC’s website.

The CPUC is expected to issue the Scoping Ruling in early 2020 and to complete the development of the microgrid framework by the end of 2020.

See R.19-09-009 BAC Comments on OIR

CPUC Opens New Proceeding on Microgrids

In September, the CPUC launched a new proceeding to develop a policy framework for microgrids.  Microgrids are defined areas of the grid that can operate as part of the larger grid and can also be completely disconnected from (operate independently from) the larger electricity grid.  Microgrids include the energy producers, transmission and distribution lines, and energy end users that are within a defined electricity boundary.  The goal of establishing microgrids is to enable communities to have a fully independent grid that can operate even when there are disturbances to the regional grid.  The recent Public Safety Power Shutoffs have underscored the urgency of developing microgrids, especially for essential services like firefighters and police, hospitals, wastewater treatment, communications, and more.

The CPUC launched the new proceeding to develop the framework for commercializing microgrids.  It will consider the appropriate standards, eligible technologies, rates, tariffs and other issues for microgrid development in California.

See the CPUC’s Order Instituting this new Rulemaking:  OIR on Microgrids Rulemaking (R.19-09-009)

CPUC Proposes Changes to BioMAT Program

CPUC staff has proposed some major changes to the BioMT program, including a five-year extension of the program from 2021 to 2026, changes to the pricing mechanism, fuel requirements in the forest BioMAT category, contract changes due to interconnection delays, and more.  Comments on the Staff Proposal are due to the CPUC on November 29.

Read BioMAT Program Review Staff Proposal

California Legislature Adopts 60 Percent RPS !!

In late August, the California Legislature passed SB 100 (de Leon), which increases California’s renewable electricity (RPS) requirement from 50 to 60 percent by 2030.  SB 100 also requires the California Public Utilities Commission to plan for 100 percent of the state’s electricity to come from RPS eligible or zero carbon power by 2045.  These two provisions will help to keep renewable power growing in California and will force the CPUC to plan for a more diverse portfolio of resources to meet the 100 percent target in 2045.

See SB 100 (de Leon, 2018) – RPS Targets