SB 1221 Implementation

SB 1221 (Min 2024) Implementation:

Gas Distribution Maps and Pilot Neighborhood Decarbonization

In 2024, the California legislature passed SB 1221 (Min), requiring the California Public Utilities Commission (CPUC) to establish a voluntary zonal decarbonization program and designate priority neighborhood decarbonization zones. Decarbonization zones will be geographic areas where the CPUC may authorize projects facilitating the transition of some customers’ natural gas service to cost-effective, zero-emission alternatives. The voluntary zonal decarbonization program will establish procedures and requirements for these projects. Zero-emission alternatives are ways of providing gas customers with suitable substitute energy service that does not require new investment in gas distribution lines, such as, but not limited to, electrification. 

SB 1221 Summary

SB 1221 established the following requirements:

  • Mapping: Gas corporations provide maps containing certain information by July 1, 2025 (PUC 661)
  • Defining Zones: The CPUC defines priority neighborhood decarbonization zones by Jan 1, 2026 and annually thereafter (PUC 662)
  • Pilot Program: The CPUC establishes voluntary pilot programs for these zones by July 1, 2026 (PUC 663)
    • Utilities may implement up to 30 projects in which they are relieved of the obligation to serve if at least 67% of customers agree to the project; (PUC 451.9)
    • Projects with 100% consent do not count toward the 30-project limit
  • Reporting: The CPUC submits an annual progress report or final report on the pilots to the Legislature by March 1 from 2026 through 2030 (PUC 664)
  • Thermal Energy Network Report: The CPUC evaluates the costs, benefits, and implementation barriers of thermal energy networks (PUC 665)

Gas Utility Map Webpage Links

Request Consideration for a Neighborhood Decarbonization Zone

SB 1221 requires the CPUC to consider certain factors when defining priority neighborhood decarbonization zones, including the “Availability of supportive local government or community partners.”  Local governments or community organizations interested in hosting neighborhood decarbonization zones should monitor this webpage for additional instructions in the coming weeks.

Additional Information

The CPUC’s direction to utilities regarding SB 1221 implementation so far has been conducted within the Long-Term Gas Planning Proceeding, R.24-09-012. Further information about the Long-Term Gas Planning Proceeding, including SB 1221-related proposals and other proceeding developments, are available here.

As the CPUC proceeds in implementing SB 1221, additional information will be added to this webpage.