In addition to a bill requiring utilities to evaluate grid enhancing technologies (GETs) in transmission planning, California Governor Gavin Newsom has signed a bill into law mandating pilot projects to transition certain neighborhoods from gas to electric.

Senate Bill (SB) 1221 would require each gas corporation in the state to submit to the Public Utilities Commission (PUC) a map of all potential gas distribution line replacement projects. The PUC will then establish a voluntary program to facilitate the electrification of “priority” neighborhood decarbonization zones.

The bill stipulates that the program should not exceed 30 pilot projects, affecting no more than 1% of each gas corporation’s customers in its service territory. Gas corporations will need to submit their maps by July 1, 2025, and the PUC will need to designate priority neighborhoods by January 1, 2026. No pilot projects can be established after January 1, 2030, per the bill.

The bill would require the commission to establish various processes, criteria, methodology, and requirements in administering the pilot projects, including determining the cost-effectiveness of zero-emission alternatives and establishing the appropriate rate of return and recovery period that a gas corporation is eligible to receive for their costs to implement zero-emission alternatives.

The bill would authorize a gas corporation to cease providing, and would require the commission to relieve the gas corporation of its obligation to provide, service in an area within the gas corporation’s service territory where a pilot project has been implemented if the commission determines that adequate substitute energy service is reasonably available to support the energy end uses of affected gas corporation customers, as provided.

“With rising gas prices,?expensive?investments in aging gas infrastructure, and the urgent need to address climate change, California must take proactive steps to prevent yet another energy affordability crisis,” said? Edson Perez, California lead at Advanced Energy United. “SB 1221 is a pivotal step in the state’s clean energy future, helping communities move away from a system destined to impose higher costs on residents and instead move toward a more affordable, clean, reliable building future.”

Under SB 1006, also signed into law this week, utilities are required to evaluate grid enhancing technologies (GETs) including dynamic line ratings, advanced power flow control devices, and topology optimization at least as often as every two years in transmission planning.

California utilities will be required to evaluate GETs projects for seven distinct cost-saving, decarbonization, and safety benefits:

Increased transmission capacity

Reduced transmission system congestion

Reduced curtailment of renewable and zero-carbon resources

Increased reliability

Reduced risk of igniting wildfire

Increased capacity to connect new renewable energy and zero-carbon resources

Increased flexibility to reduce risks surrounding technology and permitting uncertainties and improve optionality for load-serving entities