By Wyatt Page

On January 30, 2025, the California Public Utilities Commission (CPUC) adopted General Order (GO) 131-E, which replaces GO 131-D. GO 131-E sets new rules for permitting, approving, and building electric transmission lines, substations, and generation facilities. These rule revisions comply with SB 529 (Hertzberg) (Chapter 357, Statutes of 2022), which required GO 131-D to be updated. These revisions aim to address issues with the current permitting process timeline, help the process move smoother, and prevent common delays. To start construction for a project, an applicant must obtain a Certificate of Public Convenience and Necessity (CPCN), Permit to Construct (PTC), and submit any other California Environmental Quality Act (CEQA) required documentation. Notably, only some transmission projects require the CPUC permitting and approval due to the Transmission Planning Process (TPP), which the California Independent System Operator (CAISO) oversees. CAISO, through TPP, oversees CEQA compliance and approves most transmission projects using this method, which means most transmission projects are exempt from CPUC review. Therefore, the CPUC only oversees CEQA compliance for some transmission projects.

GO 131-E adds two major additions at the beginning of the transmission project application process. First, transmission project applicants must meet with the CPUC staff at least six months before submitting their applications. This allows the CPUC staff to discuss the requirements with the applicants early on and reduce errors or missing information in their applications. Second, the transmission project applicants may also submit their documentation for CEQA compliance to the CPUC at the same time as their application for the project. This earlier submission of CEQA compliance documents can expedite environmental review by reducing duplication of information and having applicants complete more of the analysis before applying. CEQA compliance can take years because the applicant must conduct studies and environmental impact reports. More about the CEQA compliance process is detailed here.

This order also establishes a pilot program for a new timeline for reviewing Mitigated Negative Declarations and Environmental Impact Reviews, compliance documents an applicant must complete as required by CEQA. The pilot program requires Pacific Gas and Electric Company, San Diego Gas and Electric Company, and Southern California Edison Company to complete one project through this program. Starting in 2026, the CPUC staff must report the results once a year on December 1.

Lastly, when CAISO transmission planning process determines that a project is needed, the CPUC will defer to that determination of need, as required by CEQA. This rule change will remove the requirement that both agencies independently rule whether the project is needed. This creates a “rebuttable presumption” that the project is necessary. This means that if evidence is introduced during public comment or during the application period that the transmission project is unnecessary, the CPUC would not have to defer to CAISO’s need determination.