California Energy Journal: Renewables

CPUC Orders 6,000 MW of New Clean Energy and Storage Procurement Through 2032

Wed, 11 Mar 2026 15:31:00 GMT

The California Public Utilities Commission (CPUC) approved a major electricity procurement decision requiring utilities and other retail electricity providers to secure 6,000 megawatts (MW) of new clean energy and storage capacity between 2030 and 2032. The procurement decision aims to accelerate project development before federal clean-energy tax incentives begin phasing down.

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The February 26, 2026 order directs California electricity providers to procure additional zero-carbon electricity resources—including solar, wind, geothermal, and energy storage—to help meet projected electricity demand and maintain grid reliability.(Fossil-fuel generation is not eligible to meet the procurement requirement.) At least 25% of the new procurement must be from resources that have “the attributes associated with clean, firm power and/or long-duration energy storage.”

The procurement will occur in three phases:

2,000 MW of net qualifying capacity (NQC), which is the total amount of power a generating resource can reliably provide to the electrical grid, by June 2030;
An additional 2,000 MW by June 2031;
A further 2,000 MW by June 2032.

The order builds on earlier long-term procurement mandates issued by the commission through its Integrated Resource Planning process, which determines how utilities will meet California’s climate and reliability targets over the next two decades. Load-serving entities will be required to contract for new clean-energy capacity that can come online between 2030 and 2032, expanding the state’s pipeline of renewable generation projects.

Federal Tax Incentives Drive Urgency

A key driver of the procurement timeline is the schedule for federal tax incentives supporting renewable energy development. By ordering utilities to secure projects earlier, regulators hope to give developers enough lead time to begin construction while federal incentives remain available.

Federal production tax credits (PTC) and investment tax credits (ITC) have historically played a major role in financing wind, solar, and other clean-energy projects. However, federal eligibility rules require projects to meet specific construction timelines in order to qualify for full incentives.

California officials have warned that those federal timelines could limit the number of projects able to receive the credits if development schedules slip. Governor Gavin Newsom previously highlighted the issue in an executive order on clean-energy development.

Transmission Planning Integration

As part of the decision, the CPUC will also submit a generation and storage planning portfolio to the California Independent System Operator (CAISO), which is responsible for evaluating and planning new transmission infrastructure across most of the state’s electric grid.

The portfolio will guide CAISO’s transmission planning process by identifying where new clean generation and storage resources are expected to be developed, allowing the grid operator to design transmission upgrades that support those projects while meeting California reliability standards.

State regulators said the approach will help ensure that transmission infrastructure is built where it delivers the greatest system value while supporting California’s broader electric-sector greenhouse-gas reduction goals.

Meeting Long-Term Climate Mandates

The procurement order also reflects California’s broader clean-energy policy framework. Under SB 100, the state must transition to 100 percent carbon-free electricity by 2045, with interim renewable-energy targets for earlier years.

State energy planners expect electricity demand to grow substantially over the next decade as transportation, buildings, and industrial sectors increasingly electrify.

The CPUC said the additional procurement will help ensure sufficient generation capacity is available to maintain grid reliability as demand grows while advancing the state’s climate goals.

Regulators Reject PG&E’s Proposal to Exit Ivanpah Solar Contracts, Keeping Solar Facility Online

Mon, 08 Dec 2025 21:43:00 GMT

The California Public Utilities Commission (CPUC) rejected a proposal by Pacific Gas & Electric Co. to terminate its long-term power purchase agreements with the Ivanpah Solar Electric Generating Station. The decision keeps the high-profile solar-thermal facility operating despite federal support for closing it.

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The CPUC denied PG&E’s request to end cont…

Trump Administration Cancels $1.2 Billion for California Hydrogen Hub

Fri, 03 Oct 2025 19:43:00 GMT

The U.S. Department of Energy (DOE) cancelled $1.2 billion in federal funding for California’s hydrogen hub, known as the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES). The move is part of the Trump administration’s cancellation of $7.6 billion in grants for 223 clean energy projects in 16 states.

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California’s hydrogen hub is a public-pri…

Humboldt Offshore Wind Hit by Funding Withdrawals

Thu, 04 Sep 2025 22:13:21 GMT

The Trump administration is terminating and withdrawing $679 million in funding for 12 offshore wind projects, including a marine terminal project on the coast in Humboldt, California. The Humboldt Bay Heavy Lift Terminal had the largest withdrawal in federal support at almost $427 million. The funding cancellation largely targeted ports and staging are…

Treasury Reduces Solar and Wind Projects Eligible for Remaining Tax Credits

Wed, 20 Aug 2025 01:24:40 GMT

The Treasury Department made it more difficult for wind and solar projects to be eligible for energy tax credits that the One Big Beautiful Bill Act (OBBB) repealed. The beginning construction requirement under the energy tax credits for wind and solar projects will depend on work actually performed rather than on costs.

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New Treasury Department guidance …

California Supreme Court Orders New Review of NEM 3.0 Rooftop Solar Policy

Mon, 11 Aug 2025 19:17:20 GMT

The California Supreme Court ordered a lower court to reconsider a policy decision that reduced utility payments to homeowners for electricity sent to the grid from rooftop solar panels. The court sent the regulations in California’s third iteration of its Net Energy Metering (NEM) subsidy program, known as NEM 3.0, back to the state appeals court for r…

Interior Implements Policies to End Federal Offshore Wind Leasing

Fri, 08 Aug 2025 20:36:33 GMT

The Trump administration issued a series of orders that effectively ended offshore wind leasing in U.S. federal waters. This included implementing policy measures to “end special treatment for unreliable energy sources, such as wind,” rescinding all designated Wind Energy Areas (WEAs) on the U.S. Outer Continental Shelf (OCS), directing agencies to cons…

California Joins Other States in Challenging Trump on Wind Energy Halt

Mon, 12 May 2025 23:27:20 GMT

California Attorney General Rob Bonta joined a coalition of state attorneys general in challenging President Donald Trump’s pause on wind energy development. The lawsuit, filed on May 5, 2025 in federal court in Massachusetts, seeks to block Trump’s directive that temporarily withdraws the Federal Outer Continental Shelf from offshore wind leasing and c…

Trump Withdraws OCS from Offshore Wind Leasing

Fri, 24 Jan 2025 17:48:55 GMT

President Donald Trump issued a memorandum that temporarily withdraws the Federal Outer Continental Shelf (OCS) from offshore wind leasing and calls for a review of the Federal government’s leasing and permitting practices for wind energy projects.

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The memorandum does not immediately affect rights under existing leases in the withdrawn areas but calls fo…

BOEM Releases Offshore Wind Environmental Review

Tue, 10 Dec 2024 20:46:28 GMT

The Bureau of Ocean Energy Management (BOEM) released its draft environmental impact review, analyzing the potential environmental effects of the wind energy projects in federal waters off the coast of California. The Draft Programmatic Environmental Impact Statement (PEIS) is available for a 90-day public comment period beginning November 14, 2024 and …

Newsom Vetoes Solar Bill Benefitting Schools

Philip MacFarlane — Mon, 14 Oct 2024 18:42:04 GMT

On September 27, 2024, Governor Gavin Newsom vetoed SB 1374, which would have increased incentives for shared solar panels on apartment buildings and schools to treat them similarly to homeowners who own their rooftop panels.

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The bill would have required the California Public Utilities Commission (CPUC), by July 1, 2025, to revise electric rate tariffs f…

Legislature Passes Capacity Funding for Offshore Wind

Wed, 04 Sep 2024 19:34:38 GMT

The California legislature passed AB 2537, which authorizes the California Energy Commission (CEC) to provide “capacity building” grants to tribes and local communities to enhance their ability to engage in the planning, development, and mitigation of offshore wind development. A lack of resources is preventing local communities from participating in of…

CEC Approves Plan to Purchase Offshore Wind Power

Wed, 28 Aug 2024 21:04:20 GMT

The California Public Utilities Commission (CPUC) approved a procurement plan that includes up to 7.6 gigawatts (GW) of offshore wind power. The decision is part of the state’s plan for centralized procurement of electricity from capital-intensive projects with long lead-times.

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In addition to offshore wind, the plan includes 1 GW of power from geothermal…

CEC Adopts Offshore Wind Strategic Plan

Tue, 16 Jul 2024 16:01:38 GMT

The California Energy Commission (CEC) adopted a strategic plan to guide the development of offshore wind energy off the central and northern coasts as part of the state’s goal of 100% clean electricity by 2045. The plan calls for two to five gigawatts (GW) of floating offshore wind capacity by 2030 and 25 GW by 2045.

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The three-volume report is the last …

Climate Bond with Offshore Wind Support Makes Ballot

Thu, 11 Jul 2024 18:51:31 GMT

A $10 billion bond for climate-related programs will be up for voter approval in the November 2024 election. On July 3, 2024, Governor Gavin Newsom signed into law SB 867, which, if approved by the voters, would authorize the issuance of bonds to finance projects a variety of programs related to water resilience, clean energy, and climate measure. The b…

CPUC Rejects Net Value Billing Proposal for Community Solar

Tue, 04 Jun 2024 21:34:00 GMT

On May 30, 2024, the California Public Utilities Commission (CPUC) voted to approve a revised decision on the state’s community solar program that rejects the Net Value Billing Tariff (NVBT) that a coalition of solar industry groups, ratepayer advocates, labor unions, and environmental organizations supported. The decision modifies existing “Green Acces…

Tribal Council and Wind Developers Reach Agreement on Morro Bay Sanctuary

Wed, 08 May 2024 21:10:26 GMT

The Northern Chumash Tribal Council and Morro Bay offshore wind leaseholders reached a preliminary agreement that could help wind-energy development off the central coast of California. The agreement, reached in April, would allow for a phased approach to the designation of the Chumash Heritage National Marine Sanctuary (CHNMS) that would allow offshore…

Lawmakers Introduce Bill to Submit Offshore Wind Bond to Voters

Fri, 09 Feb 2024 20:47:40 GMT

Three assembly members introduced a bill to submit to voters a $1 billion bond for seaport infrastructure improvements that would facilitate offshore wind energy projects off the California coast. AB 2208 would declare the intent of the legislature to enact such legislation.

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The California Energy Commission is required to develop a strategic plan for off…

CEC Draft Strategic Plan for Offshore Wind Reports Significant Cost Estimates

Fri, 26 Jan 2024 17:35:31 GMT

The California Energy Commission (CEC) reported that a California offshore wind industry will require significant investment for transmission and port upgrades. The report is available for public comment until March 22, 2024.

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The draft report estimated the cost of transmission upgrades ranging from $7.51 billion to $41.35 billion by 2045. It also estimat…

CPUC Reduces Solar Compensation Rates for Farms, Schools, and Rental Properties

Mon, 20 Nov 2023 21:11:00 GMT

The California Public Utilities Commission (CPUC) issued a proposed decision approving new regulations that restructure onsite solar and storage tariffs and reduce the compensation rates for multitenant properties and customers with adjacent properties. This changes will largely affect farms, schools, and rental properties.

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The changes provide a similar …