By MPCO Staff
The California Energy Commission’s Opt-In Certification Program is a new statewide approach to approving clean energy projects that provides benefits for host communities, project labor parameters for workers, and a defined CEQA timeline for project developers. While the program is new, the CEC has more than four decades of experience in power plant permitting, as the state’s sole siting authority for thermal power plants with a capacity to produce 50 megawatts or more.
Nearly 35,000 megawatts (MW) of renewable resources serve the grid today but estimates show California will need an additional 148,000 MWs to achieve its 2045 goal. Modeling shows meeting the 2045 goal will require sustained record-setting build rates to diversify our energy mix and triple the nameplate capacity of the state’s electric grid.
In 2022, Governor Gavin Newsom signed Assembly Bill 205 as part of his build more, faster agenda which is focused on delivering critical infrastructure upgrades throughout California. The law created the Opt-In Certification Program which allows developers of eligible clean energy projects — including non-fossil fueled generation and energy storage projects — to choose this permitting pathway in lieu of permits that would normally be required by the local land use authority and most state permits.
Already, the CEC has received Opt-In Certification applications for six energy projects and held preliminary meetings with developers for seven additional projects. An application for a project in Fresno County was recently deemed complete and a public meeting is planned as a next step this month. The project is proposed to include 1,150 MW of solar, a 4,600 MW-hour battery energy storage system and an 800 MW green hydrogen generator.
While the CEC makes the final decision on a proposed project, the program requires the CEC to hold local public meetings, gather input from residents, and consult with state agencies, local governments, and California Native American tribes. Additionally, the CEC must determine that a project will have a net positive economic benefit to the local government, such as employment growth, housing development, infrastructure, and local tax revenue. The project developer must also have at least one legally binding community benefits agreement with a local community-based organization and enter into a project labor agreement or pay prevailing wages for the project’s construction jobs.
Aside from these required benefits, the Opt-In Certification Program is unique because it condenses the environmental review and process to a 270-day window, with certain exceptions, starting once the CEC has determined a project application is complete. Agencies that retain their permitting authority are to make their final decisions within 90 days of the CEC approving a project.
For more information about the program, or to schedule an informational meeting with the CEC, visit the Opt-In Certification Program webpage.
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