Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
State Solution
(Type of Activity: Policy/Regulation )

Reform Regulatory and Interconnection Rules to Enable Community-Scale Microgrids and Power Sharing. The state should reform CPUC and utility rules to allow multi-site community microgrids, enable power transfer across parcels and public rights-of-way, streamline interconnection, and support electrification of buildings and transportation using locally produced electricity. Coordinated state and federal action is needed to remove utility-imposed constraints and make community microgrids feasible at scale.

Region: San Francisco Bay Area, Los Angeles, San Diego, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Challenge

Slow and Restrictive Permitting and Interconnection for Microgrids and Distributed Storage. Permitting and interconnection for microgrids and distributed storage are slow, inconsistent, and bureaucratic, with unclear requirements, restrictive rules (such as limits on cross-parcel energy exchange), and prolonged utility reviews causing months-to-years of delays and higher costs for local governments.

Region: San Francisco Bay Area, Los Angeles, San Diego, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Challenge

Communities vulnerable to Public Safety Power Shutoffs (PSPS) see microgrids as a solution, but deployment lags far behind need. As PSPS events grow more frequent, local governments struggle to deliver reliable, cost-effective microgrids fast enough to protect vulnerable communities from prolonged outages.

Region: San Francisco Bay Area, San Diego, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
|

Challenge/Local/State

Description
Challenge

Cost-Benefit and Market Frameworks Fail to Value Microgrid Resilience Benefits. Current cost-benefit analyses and market structures undervalue community resilience benefits—such as wildfire safety, PSPS protection, and emergency services—while preventing developers from capturing the full value of behind-the-meter storage. As a result, community microgrids are rarely financially viable without CCA or public intervention.

Region: San Francisco Bay Area, Los Angeles, Statewide
Priority Area: Clean Energy and Building Decarbonization
|
Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Challenge

Utility-Controlled Regulatory Frameworks and Incentives Undermine Community Microgrids. CPUC processes, IOU rules, tariffs, and utility business incentives prioritize load growth and centralized infrastructure over distributed, community-scale microgrids. These frameworks restrict multi-meter and cross-parcel configurations, discourage DER solutions, and push CCAs and local governments away from viable community microgrid projects.

Region: San Francisco Bay Area, Los Angeles, Statewide
Priority Area: Clean Energy and Building Decarbonization
|
Barrier: Community Microgrid Deployment
|

Challenge/Local/State

Description
Local Solution
(Type of Activity: Policy/Planning/Land Use )

Partner with CCAs to support local DER and resilience project development. Participants explicitly identified CCAs as entities that help local governments plan and implement clean-energy projects, including DER portfolios relevant to microgrids.

Region: San Francisco Bay Area, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Challenge

Lack of coordination across agencies and actors creates confusion and slows project development. Microgrids require interagency alignment across utilities, local governments, DER developers, fleet managers, and regulators—but coordination is weak.

Region: San Francisco Bay Area, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Challenge

Stakeholders emphasized that utilities face no penalties or accountability mechanisms for slow interconnection reviews. Applications can stall indefinitely unless regulations establish clear deadlines. This creates backlogs for community-scale solar, batteries, and microgrids, leaving resilience projects stranded.

Region: San Diego, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Local Solution
(Type of Activity: Construction/Installation/Procurement )

Leverage municipal EV fleets as resilience assets by pairing their batteries with local microgrids. Coordinated planning to reserve capacity for emergencies, alongside stationary storage at critical facilities, can unlock supplemental energy storage during outages and strengthen community resilience.

Existing Examples of Progress: LA Metro’s electric bus fleet demonstrates the potential of EV batteries as supplemental storage for microgrids, but in practice buses often return from routes with depleted batteries, limiting their resilience value. Stakeholders emphasized that realizing this potential will require coordinated planning to reserve capacity for grid use and pairing EVs with stationary batteries at critical facilities.
Region: Los Angeles, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Local Solution
(Type of Activity: Construction/Installation/Procurement )

Deploy solar microgrids with guaranteed battery backup at critical community sites (city halls, libraries, schools, water treatment plants).

Existing Examples of Progress: LA and Ventura Counties microgrid projects where they are guaranteeing battery backup capacity as part of a solar microgrid projects. The first round includes 11 sites focused on city halls, libraries, cooling centers, and emergency operations centers; second round will target critical community sites like school districts, water treatment plants, and transportation headquarters. Projects aim for design and permitting by the end of the year.
Region: Los Angeles, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Challenge

Funding and administrative gaps for microgrid implementation: Even when technical solutions exist, cities often have only “one person” to manage a grant or technical application, creating bottlenecks in project development

Region: Los Angeles, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Challenge

Need for stationary backup for microgrids: Stakeholders stressed that solar + EV fleets are not enough; critical sites require stationary batteries to ensure reliability in emergencies.

Region: Los Angeles, Statewide
Priority Area: Clean Energy and Building Decarbonization
|
Barrier: Community Microgrid Deployment
|

Challenge/Local/State

Description
Challenge

Day-to-day operational complexity: Municipal fleets and other DERs require coordinated planning for battery use across multiple functions (mobility, backup, grid services). Without active management, projects stall because the complexity exceeds most agencies’ capacity.

Region: Los Angeles, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Challenge

CCA role in enabling projects: Some CCAs are able to push microgrid projects forward because they can leverage procurement data and grid advocacy resources that private developers cannot access. Without this support, scalability remains out of reach .

Region: Los Angeles, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
|

Challenge/Local/State

Description
State Solution
(Type of Activity: Program Implementation and Outreach )

State should provide resources to CCAs and RENs to deliver technical assistance on distributed energy strategies (including community solar, storage, and how to stack and leverage available funding) so that small farms, low-income households, and small businesses can access programs that currently require more navigation capacity than they have. 

Region: Central Coast
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Local Solution
(Type of Activity: Community Program Implementation )

CCAs should leverage their existing infrastructure and customer relationships to advance community-scale battery storage programs, making distributed energy storage accessible and affordable to households and businesses that cannot pursue individual storage solutions. 

Existing Examples of Progress: Central Coast Community Energy's battery storage program provides a regional example of a CCA-led model for community-scale storage deployment already underway on the Central Coast.
Region: Central Coast
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Challenge

The Central Coast lacks the leadership and governance structures needed to advance distributed energy models, leaving no accountable entity to drive the transition away from centralized IOU infrastructure at regional scale.

Region: Central Coast
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Challenge

Community solar and distributed energy programs remain unaffordable and inaccessible at the scale needed (particularly for small farms, low-income households, and small businesses) leaving the region dependent on IOU transmission infrastructure despite clear community interest in local generation alternatives.

Region: Central Coast
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Local Solution
(Type of Activity: Community Program Implementation )

Identifying microgrids as priority resilience strategies in plans. Participants described naming microgrids as desired solutions despite barriers.

Region: Statewide
Priority Area: Clean Energy and Building Decarbonization
|
Barrier: Community Microgrid Deployment
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Challenge/Local/State

Description
Local Solution
(Type of Activity: Community Program Implementation )

Pursuing microgrids despite prolonged utility coordination. Local governments described continuing to pursue microgrid projects even amid delays.

Region: Statewide

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