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

Description
Challenge

Regulatory and utility incentive structures block distributed clean energy. CPUC policies, IOU rules, tariffs, and utility business incentives prioritize centralized infrastructure over distributed solutions, discouraging microgrids, community solar, CCAs, and third-party partnerships, slowing decentralized clean energy even when aligned with state goals.

  • Illustrative Example: Existing frameworks restrict multi-meter and cross-parcel configurations, making community microgrid projects spanning multiple parcels or buildings effectively unviable under current rules.

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

Description
Challenge

State investment and cost-benefit frameworks undervalue distributed and community-scale clean-energy benefits. Planning and regulatory analyses fail to fully account for resilience, local reliability, health, and community benefits, causing distributed and infill clean-energy projects to appear artificially expensive and discouraging investment in built-out and community-serving locations.

Region: San Francisco Bay Area, Los Angeles, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Reform CPUC Planning, Tariffs, and Cost-Effectiveness Frameworks to Reflect Local DER Value. The state should reform CPUC policies, tariffs, and planning assumptions to ensure that distributed energy resources, community solar, microgrids, and multi-site DER projects are accurately reflected in system planning and price signals. Cost-effectiveness and procurement decisions should explicitly value resilience, avoided transmission and distribution upgrades, local reliability, and customer-level impacts, avoiding “wrong signal at the wrong time” outcomes that discourage local and community-scale investments.

Region: San Francisco Bay Area, San Diego, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Align Local Clean Energy and Resilience Goals With State and Utility Planning. Local governments can integrate resilience and equity metrics into Climate Action Plans, facility plans, and capital improvement planning while aligning local clean-energy and DER priorities with state policy goals (e.g., SB 100) and utility planning frameworks. Stronger regional coordination helps translate local resilience benefits—often undervalued in state cost-effectiveness tests—into state and utility investment decisions, reducing misalignment and countering fragmented or utility-controlled planning.

Region: San Francisco Bay Area, San Diego, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Document and Advocate for Recognition of Local DER and Resilience Value. Local governments can work with CCAs and regional partners to document and aggregate the resilience and reliability value of behind-the-meter and community-scale DER investments—such as avoided outages, emergency power needs, and public safety benefits—and advocate for their recognition in utility and state planning processes.

Existing Examples of Progress: Ava Community Energy’s local warehouse-roof solar aggregation to demonstrate community benefit.
Region: San Francisco Bay Area, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Leverage trusted local organizations – Work with CBOs and tribal entities to ensure investment decisions reflect community priorities, rather than being top-down utility-driven

Region: San Diego, Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Incorporate social cost of carbon and co-benefits (health, productivity, resiliency) into all state-level cost-benefit analyses.

Region: San Francisco Bay Area, Los Angeles
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

Description
Challenge

Behind-the-meter generation and storage are not “counted” in planning the way communities expect, so utilities plan and build as if these resources do not exist. This can produce “double investment” (utility-scale plus customer-scale) without credit to customers, with customers feeling penalized for adopting technologies that also reduce system needs.

Region: Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Improve transparency and accessibility of state investment data. Develop tools or data portals that show where state climate and energy investments are allocated to support equitable planning and help local governments align their projects with state priorities.

Region: San Francisco Bay Area
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Create or strengthen regional conveners to coordinate planning and investment alignment. Fund regional hubs or governance tables (e.g., through RENs, CCAs, COGs) that support joint planning, share investment data, and align distributed-energy deployment strategies across jurisdictions.

Region: San Francisco Bay Area
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Pursue shared procurement or joint solicitations across cities to reduce per-project costs for solar, storage, or electrification upgrades.

Region: San Francisco Bay Area
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Develop bundled resilience hub and solar+storage projects that concentrate local benefits in a few high-value facilities, making them more competitive and easier to justify.

Region: San Francisco Bay Area
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Fund grid modernization linked to DERs – State-level infrastructure upgrades should prioritize local storage, distributed generation, and smart grid technologies to enable more distributed investment

Region: San Diego
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Provide direct funding for distributed energy – State programs should target funding to distributed resources (e.g., solar, storage, microgrids) instead of primarily subsidizing centralized utility infrastructure

Region: San Diego
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Require data center accountability – Prevent data center growth from driving up rates for households by requiring new energy-hungry facilities to cover their own infrastructure costs

Region: San Diego
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Reform utility incentives – Adjust the regulatory framework so IOUs are rewarded for supporting distributed resources (DERs, VPPs, microgrids) rather than only large transmission projects

Region: San Diego
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Technical assistance for small agencies – Offer ongoing technical and financial support so under-resourced jurisdictions can participate in and benefit from distributed energy investments

Region: San Diego
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

Description
Best Practice

Southern California Regional Energy Network (SoCalREN) Recognized by ACEEE for its Public Sector Energy Efficiency Project Delivery Program (PDP)

The Project Delivery Program helps cities, counties, water agencies, school districts, and others overcome barriers to energy efficiency and eventually lead by example. It does this by filling project management, technical assistance, and financing gaps in existing utility efficiency programs at no cost to the recipient. The program is provided by the Southern California Regional Network (SoCalREN), which offers a wide variety of customized energy efficiency support services to public agencies in Southern California with an emphasis on underserved communities. Eligible customers must receive service from SoCalGas and/or Southern California Edison.

The SoCalREN project implementer works closely with public agency decision-makers and technical experts to support the entire project from identification of a site through completion. This includes conducting audits, developing technically feasible and cost-effective efficiency interventions that will create persistent energy savings (e.g., interior and exterior lighting controls, water controls optimization, retrocommissioning, HVAC upgrades), supporting construction management, and creating project buy-in. Participating agencies also gain access to the collective knowledge and expertise of the SoCalREN network, which provides access to best practices and lessons for reducing costs and overcoming common barriers. For its diverse range of buildings served, high percentage of projects in underserved communities, and variety of services offered, SoCalREN’s Project Delivery Program is a Leader of the Pack.

Key accomplishments and program features:

  • Over 830 energy efficiency projects have been completed.
  • The Project Delivery Program’s energy savings have avoided 34,000 metric tons of annual greenhouse gas emissions.
  • The program has supported an estimated 1,600 construction jobs.
  • Sixty-eight percent of the projects completed so far are located in disadvantaged, rural, or low-income communities.
  •  Participants report being “impressed with [program] responsiveness” and “thrilled with hands-on support.”
Region: Statewide
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

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

Explore carbon tax or strengthened cap-and-trade mechanisms.

Region: Los Angeles
Priority Area: Clean Energy and Building Decarbonization
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Barrier: Investment Decisions
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Challenge/Local/State

Description
Challenge

Ecosystem services models ignored: Economic modeling frameworks that account for people and ecosystems as part of the cost-benefit equation exist but are rarely used, or are even actively downplayed by policymakers

Region: Los Angeles

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