CEC Proposes Emergency Amendments to Opt-In Certification Program Regulations

On September 29, 2026, the California Energy Commission (CEC) released proposed emergency amendments to the regulations governing its Opt-In Certification Program. The Opt-In Certification Program allows developers of certain clean and renewable energy facilities to obtain CEC certification in lieu of most state and local permits. Of particular note, the Opt-In Certification Program covers solar photovoltaic and terrestrial wind projects generating 50 megawatts or more, energy storage systems capable of storing 200 megawatt-hours or more, green hydrogen production facilities, and geothermal power plants. To date, the CEC has approved three Opt-In projects.

The proposed amendments would incorporate statutory changes enacted in 2025 through Senate Bills (SB) 254 and 283 and revise several aspects of the program, including the following:

• • Community Benefits Agreement Filing Requirements. Under existing regulations, applicants must submit supplemental information supporting the required community benefits finding within 45 days after an Opt-In application is deemed complete or by a later date set by the executive director. (Cal. Code Regs., tit. 20, § 1878(c).) The proposed amendments would expressly require at least one executed community benefits agreement within 120 days after the Opt-In application is deemed complete, unless the executive director approves a different date. Agreements used to satisfy the statutorily-required community benefits agreement (per Public Resources Code section 25545.10) or otherwise evidence the project’s community benefits would be filed in the project’s public docket without redactions. (Proposed Cal. Code Regs., tit. 20, § 1879.5(a)-(b).)
  • Community Benefits Funding and Post-Approval Reporting. Existing law requires a qualifying Opt-In project to provide at least one community benefits agreement, but does not prescribe minimum funding amounts for that agreement. (Pub. Resources Code, § 25545.10(a); Cal. Code Regs., tit. 20, § 1877(g).) The amendments would require the community benefits agreement to provide aggregate funding of at least $2,500 per megawatt for energy generation projects, $550 per megawatt-hour for energy storage projects, $55 per square foot for manufacturing facilities, or $1,400 per ton per day of hydrogen production capacity for hydrogen production projects. Projects combining multiple facility types (e.g., solar generation plus battery storage) would be subject to the aggregate minimum funding requirement applicable to each project component. The Commission would also consider the number of community benefit agreements and diversity of benefits provided to local communities when evaluating project approval. After approval, project owners would provide monthly and annual compliance reporting on the administration of their community benefits agreements. (Proposed Cal. Code Regs., tit. 20, § 1879.5(c)-(d); (f).)
  • Expanded Pre-Filing Consultation. Under existing regulations, applicants must meet with CEC staff at least 30 days before submitting an Opt-In application. The amendments would expand the identified subjects for that meeting to include significant project impacts, local concerns, grid connectivity, water supply, and site access, and would expressly allow staff to invite California Native American tribes to participate. (Proposed Cal. Code Regs., tit. 20, § 1876.5(a)-(b).)
  • Property Rights and Fire Authority Consultation. Opt-In applications would be required to provide evidence of sufficient real property rights to access, construct, and operate the proposed facility. An applicant’s affirmation and description of those rights would constitute sufficient evidence unless conflicting evidence is presented to the CEC by other parties. For projects on federal land, applicants would describe the status of their efforts to obtain a right-of-way or similar entitlement from the applicable federal agency and the manner in which the applicant will access the project site. For energy storage systems, the application would also document the applicant’s consultation with the authority having jurisdiction over fire suppression consistent with SB 283. (Proposed Cal. Code Regs., tit. 20, § 1877(h)-(i); Pub. Resources Code, § 25545.19.)
  • Suspension and Early Termination of Opt-In Applications. The amendments would establish a process for applicants to suspend an Opt-In proceeding by filing a written request that meets specified requirements. If CEC staff determines that a project has one or more specified significant deficiencies, the executive director would be required to submit a request for early termination for the Commission’s consideration. The Commission would consider specified factors concerning project viability, the steps and timing needed to resolve identified barriers, the cost of continued review, the number of applications before the Commission, and any other factors it deems relevant. (Proposed Cal. Code Regs., tit. 20, § 1877.5(d); (e).)
  • Information Requests and Investigatory Authority. After an application is deemed complete, the executive director could request additional information needed to complete CEC staff’s assessment, including information addressing issues raised by public agencies or the public and, if needed, information supporting the required net positive economic benefit findings. The amendments would also expressly provide for the executive director’s use of existing regulatory investigatory powers, including subpoenas and interrogatories, to facilitate project review and understanding of potential environmental or health and safety impacts. (Proposed Cal. Code Regs., tit. 20, § 1878(c)-(d); Pub. Resources Code, § 25545.9.)
  • Local Agency Reimbursement. The amendments would restructure the existing reimbursement framework by tying reimbursement to local agency services performed within the scope of the CEC’s request for agency review and comment. Eligible costs would include those associated with review of the complete application, preparing comments within the scope of staff’s request, and certain permit fees for related work performed by the agency. Expenses incurred to advocate for or against project approval outside the scope of the CEC’s requested agency review and comment would not be reimbursable. As an alternative to the existing reimbursement process, the amendments would permit the Opt-In applicant and agency to instead enter into their own reimbursement agreement without seeking Commission approval. (Proposed Cal. Code Regs., tit. 20, § 1878.1(b)-(c).)
  • Net Positive Economic Benefit.The proposal would remove the current requirement for preliminary economic benefit information in the application. The Staff Assessment would instead address whether sufficient evidence has been entered into the record to overcome the statutory rebuttable presumption that the facility will have an overall net positive economic benefit to the relevant local government. (Proposed Cal. Code Regs., tit. 20, § 1879(a)(7).)
  • BESS Testing and Operation. For Opt-In applications filed after January 1, 2026, that include a battery energy storage system (BESS), the proposed regulations would prohibit the CEC Compliance Project Manager from authorizing BESS testing or operation until the responsible fire authority completes an inspection or does not complete the inspection within 90 days after receiving notice that the system is ready for inspection. The project owner would be responsible for coordinating the inspection and submitting any inspection results to the CEC within 48 hours. (Proposed Cal. Code Regs., tit. 20, § 1881.5.)
  • Post-Certification Changes in Ownership or Operational Control. The amendments would establish requirements for transferring ownership or operational control of a certified facility, including identification of the new owner or operator and any parent organization and confirmation that the new owner or operator understands the necessity of compliance with the project’s certification conditions. (Proposed Cal. Code Regs., tit. 20, § 1882(f).)
  • Additional Appendix B Requirements for Opt-In Applications. Originally drafted to address thermal projects under the CEC’s Application for Certification authority, Appendix B currently sets out detailed technical and environmental information requirements that must be included as part an of Opt-In project application. CEC staff evaluate fulfillment of these technical criteria and other parts of the Opt-In project application before deeming an application complete. The amendments would update Appendix B to expressly cover Opt-In applications and provide specific additional requirements for BESS and solar photovoltaic projects, including:
    • • Site Control. Applicants would need to submit proof of site control proving possession of sufficient real property rights to “currently” access, construct, and operate the proposed project site, gen-tie line, and all ancillary elements of the proposed project. (Proposed App. B, § (a)(4)(i).)
      • BESS Design, Operations, and Closures. Additional information would include battery technology and manufacturer information, specified manufacturer failure incident history, site plans equivalent to at least 30% design plans, information concerning non-operation and system augmentation, and decommissioning and permanent closure. (Proposed App. B, § (b)(1)(E); (e)(2).)
      • BESS Environmental, Health, and Safety Information. Applicants would provide extensive air quality and greenhouse gas analyses, worst-case thermal runaway dispersion modeling, fire protection and emergency response information, hazard mitigation, and information concerning potential impacts on biological resources and water quality. (Proposed App. B, § (g)(8)(L)-(11)(D); (g)(13)(I); (g)(14)(F); (g)(19)(D).)
      • Solar Photovoltaic Projects. Solar photovoltaic submissions would address operating controls, whether the system is designed to energize the grid or an associated BESS or both, remote monitoring and emergency response, fire detection, potential effects on birds and bats, and wildfire vegetation management. (Proposed App. B, §§ (b)(1)(F); (g)(11)(E); (g)(13)(J); (g)(19)(E).)

The CEC will hold a remote-only public workshop on the proposed amendments on November 2, 2026, and is accepting written comments through November 10, 2026. If approved by the CEC, the amendments would be subject to review by the Office of Administrative Law and would take effect upon filing with the Secretary of State, unless a later date is ultimately specified in the adopted regulations. (Pub. Resources Code, § 25545.12(a); Gov. Code, § 11346.1(d).) At that time, interested parties may challenge the validity of the adopted regulations in court. (Gov. Code, § 11350.)

If you have questions regarding the proposed amendments or would like assistance preparing or submitting comments to the CEC, please contact either of the authors.