February 2025 Energy Regulatory Update: Key Developments Across the U.S.

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Our energy regulatory team has compiled a summary of recent state and federal energy regulatory developments to keep you informed about key issues across the United States. The Stoel Rives energy regulatory team is always available to answer any questions regarding these developments.

PRESIDENTIAL EXECUTIVE ORDERS

On February 18, President Trump issued the Ensuring Accountability for All Agencies Executive Order. This order mandates that all “independent regulatory agencies,” as defined by 44 USC 3502(5), including the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission, submit all “proposed and final significant regulatory actions” to the Office of Information and Regulatory Affairs within the Executive Office of the President before they are published in the Federal Register. Additionally, the Director of the Office of Management and Budget (OMB) is required to set performance standards and management objectives for the heads of independent agencies and report periodically to the President on their performance and efficiency regarding these standards. The order further necessitates that independent regulatory agency chairpersons consult and coordinate with OMB, the White House Domestic Policy Council, and the White House National Economic Council on policies and priorities. The heads of these agencies must establish a “White House Liaison” position and submit their strategic plans to the OMB for clearance prior to finalization.

CALIFORNIA PUBLIC UTILITIES COMMISSION (CPUC)

Proposed Decisions and Resolutions

No updates to report.

Voting Meeting

The CPUC is scheduled to hold a voting meeting in Sacramento, California, on February 20, 2025, at 11:00 a.m. The agenda includes several energy-related items:

• Item 3: Res G-3612 (SoCalGas Biomethane Contracts)
  This resolution addresses SoCalGas’s request for approval of three biomethane procurement contracts under the Renewable Gas Standard (RGS). It approves SoCalGas’s contract with Organic Energy Solutions (OES) with modifications while rejecting the contracts with Anew Climate. The resolution concludes that the OES contract meets both short-term and medium-term RGS targets and contributes to the organic waste diversion goal at an appropriate price. The Anew Climate contracts were rejected as they did not meet the short-term procurement requirements.

• Item 6: Res E-5363 (PG&E 2024 Local Resource Adequacy Procurement)
  This resolution approves PG&E’s resource adequacy agreement for a new energy storage facility with a 10-year duration, which will help satisfy its procurement obligations for the multi-year local RA program for 2025, 2026, and 2027.

• Item 7: Res E-5373 (SoCalGas, PG&E, SCE, and Center for Sustainable Energy Self-Generation Incentive Program Inflation Reduction Act Tax Credit)
  This resolution modifies a joint proposal regarding the Self-Generation Incentive Program (SGIP) Inflation Reduction Act (IRA) Tax Credit, establishing policies to maximize the federal cost share for SGIP project costs.

• Item 10: Res E-5371 (SCE Mid-Term Reliability (MTR) Energy Storage Contracts)
  Approval is sought for three energy storage contracts totaling 620 MW of capacity, expected to come online from 2026 to 2028.

• Item 15: Res E-5370 (PG&E MTR Renewable Resource Contracts)
  This resolution approves four MTR contracts totaling 750 MW of solar photovoltaic capacity and 578.7 MW of battery energy storage to meet PG&E’s MTR requirements.

CALIFORNIA INDEPENDENT SYSTEM OPERATOR (CAISO)

Stakeholder Initiatives

• Interconnection Process Enhancements
  CAISO has released the final proposal for Interconnection Process Enhancements 2023 Track 3 and will hold a public stakeholder call on February 25, 2025. Comments are due by March 4, 2025.

• 2024 Transmission Plan Deliverability Allocation Report
  The revised report is now available on the CAISO website.

• Cluster 15 Application Status
  All applicants were notified of their application status on February 12, 2025.

• Flexible Capacity Requirement Methodology
  A public stakeholder call will take place on February 24, 2025, to discuss the methodology for 2026 through 2028. Comments are due by March 10, 2025.

CALIFORNIA ENERGY COMMISSION (CEC)

2024 Integrated Energy Policy Report (IEPR) Update

The CEC is working on its 2024 IEPR Update, with policy recommendations based on workshops held through December 2024. The CEC will consider adoption of the 2024 IEPR Update at the March 17, 2025 Business Meeting.

Offshore Wind

The California Ports and Offshore Wind Symposium will be held on February 21, 2025, at the Port of Long Beach, focusing on port upgrades for offshore wind development.

Electrification Summit

The CEC will host its second annual Electrification Summit on March 11 and 12, 2025, in Sacramento, covering themes such as healthy buildings and clean industry.

CALIFORNIA AIR RESOURCES BOARD (CARB)

On February 18, CARB discussed its Clean Transportation Incentives Funding Plan Development Process. A remote public workshop on hydrogen production will be held on February 25, 2025.

MINNESOTA PUBLIC UTILITIES COMMISSION (MPUC)

Hearings regarding Xcel Energy’s integrated resource plan will continue on February 20, 2025, and the MPUC will also discuss establishing ratemaking treatment for early retiring electric facilities at its meeting on February 28, 2025.

FEDERAL ENERGY REGULATORY COMMISSION (FERC)

FERC will hold its Open Meeting on February 20, 2025, at 10:00 a.m. Eastern Time, which will be accessible via webcast.

For further details or inquiries, please reach out to our energy regulatory team.
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