California requires permits for large natural gas projects to enable environmental and cost scrutiny

Dive Transient:

• California utilities will need to have state permits to construct pure fuel initiatives costing greater than $75 million or anticipated to worsen air air pollution in communities with critical air high quality issues.
• Every large proposed pipeline or compressor station additionally should embrace an evaluation of its potential environmental impacts in accordance with the California Environmental High quality Act, or CEQA.
• The order unanimously permitted Dec. 1 seeks to scale back greenhouse gasses and poisonous emissions, present particulars about initiatives and cut back the stranding of fuel property because the state strives to decarbonize.

Dive Perception:

A unanimously permitted CPUC resolution requires Pacific Fuel & Electrical, Southern California Fuel and San Diego Fuel & Electrical to have Certificates of Public Comfort and Necessity, CPCN, for important pipeline and compressor station initiatives to assist California decarbonize and cut back clients’ prices. 

The fee has had an analogous order for giant electrical energy initiatives for 25 years, in keeping with Commissioner Cliff Rechtschaffen.

Matt Vespa, Earthjustice senior legal professional, stated the choice is the primary to appropriate “important deficiencies” within the regulation of fuel.

“We’re lastly getting visibility on utility fuel initiatives,” he stated. 

The order “fills an necessary regulatory hole whereas the CPUC develops a long-term fuel technique,” Commissioner John Reynolds stated.

Up to now, utilities have solely been required to incorporate their fuel initiatives of their large basic fee circumstances filed on the fee. These initiatives have been largely misplaced among the many many gadgets earlier than the fee, considerably limiting overview and stakeholder participation, Rechtschaffen stated eventually week’s CPUC assembly. 

Fuel initiatives inside 1,000 toes of colleges, properties or hospitals additionally will need to have permits and be topic to environmental overview.

“The fuel infrastructure Common Order creates safeguards for air high quality in areas close to communities and permits us to stop stranded property as we proceed with the power transition to attain our local weather objectives,” Commissioner Darcie Houck stated.

Fuel use within the state is declining as 50 jurisdictions ban or limit its use in new properties and different buildings and due to the state’s drive for a carbon impartial financial system by 2045. The CPUC expects demand from California fuel utilities to drop by greater than 14% by 2035.

The $75 million venture value threshold targets fuel initiatives anticipated to have probably the most important impression on communities and the surroundings. The utilities pushed for $100 million, saying it will steadiness prices to clients and potential delays with pre-construction overview advantages. Environmental and ratepayer advocates insisted on $25 to $50 million venture thresholds to account for hurt to communities, significantly deprived ones.

Regulatory hole growing controversial

The regulatory hole at challenge turned a serious controversy as Southern California Fuel began pursuing a alternative and enlargement of its Ventura Compressor Station northwest of Los Angeles, Earthjustice’s Vespa stated. The station is subsequent to a faculty in a deprived neighborhood.

The brand new framework requires California’s three fuel utilities to file annual experiences detailing their plans for initiatives costing greater than $50 million over the subsequent 10 years beginning in 2023. Extra detailed annual reporting, together with non-pipeline options, is required for initiatives anticipated to begin inside 5 years.

The CPUC order exempts initiatives that will likely be on-line earlier than 2024 and people required by state or federal companies to make sure the security of fuel infrastructure.