Extension Sought for Net Energy Metering Fuel Cell Compliance

Extension Sought for Net Energy Metering Fuel Cell Compliance

by Brad Bartz

Los Angeles CA (SPX) May 15, 2024

Major utilities in California, including Southern California Edison (SCE), Pacific Gas and Electric Company (PG and E), and San Diego Gas and Electric (SDG&E), have formally requested an eight-month extension from the California Public Utilities Commission (CPUC) for implementing the new greenhouse gas emissions standards for net energy metering fuel cells (NEMFC).

This extension pertains to a deadline set in Ordering Paragraph 25 of Decision D.23-11-068, which requires existing NEMFC systems to certify compliance with the current greenhouse gas (GHG) emission standards within a specified timeframe. Initially set for May 21, 2024, the utilities are now proposing a new deadline of February 1, 2025, citing delays in the approval of necessary advice letters which are crucial for communicating new reporting requirements to customer-generators.

The advice letters in question-PG and E 7143-E, SCE 5197-E, and SDG&E 4361-E-are designed to establish the reporting protocols needed to track compliance with the CARB Standards. However, delays in approvals have pushed back the utilities’ schedule for issuing initial notifications to customers, which is a critical first step in the compliance process.

The utilities argue that the extension will allow adequate time for customer-generators to contract with performance data providers, a requirement for maintaining eligibility under the NEMFC tariff. This process is part of a broader effort to ensure that fuel cell technologies contributing to the state’s electrical grid meet stringent environmental standards, reducing greenhouse gas emissions in line with California’s aggressive climate goals.

Background on the NEMFC Program

The NEMFC program is part of California’s broader strategy to integrate clean energy solutions such as fuel cells into the state’s power grid. These systems are required to meet specific GHG emissions standards to qualify for the net energy metering incentives that make such installations economically viable. The program not only supports California’s environmental objectives but also encourages the adoption of innovative technologies in the energy sector.

This request for extension reflects the complex nature of implementing regulatory changes across a diverse and technologically evolving landscape. It also underscores the utilities’ commitment to ensuring that all stakeholders, especially customer-generators, have sufficient time to adapt to new requirements.

The CPUC’s decision on this extension request will be closely watched by both industry stakeholders and environmental advocates, as it will influence the pace at which new environmental standards are implemented in the state’s burgeoning clean energy infrastructure.