Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including gas corporations. Existing law authorizes the PUC to establish rules and to fix the rates and charges for all public utilities, subject to control by the Legislature, and requires that the rates and charges of a public utility be just and reasonable. Existing law requires the PUC and the State Energy Resources Conservation and Development Commission (Energy Commission) to undertake specified actions to advance the state’s clean energy and pollution reduction objectives, including, where feasible, cost effective, and consistent with other state policy objectives, increasing the use of large- and small-scale energy storage with a variety of technologies, including green electrolytic hydrogen, as defined. Existing law requires the PUC, State Air Resources Board, and Energy Commission to consider green electrolytic hydrogen an eligible form of energy storage, and to consider other potential uses of green electrolytic hydrogen.

This bill would authorize a gas corporation that serves an area that will host the 2028 Olympics to identify and propose a renewable green hydrogen project, as defined, or multiple projects, in cooperation with the United States Olympic Paralympic Committee, the City of Los Angeles, or the County of Los Angeles to achieve described purposes. If a renewable green hydrogen project is identified and proposed, the bill would authorize the gas corporation to file an application with the PUC for approval to undertake the project or projects. The bill would require the PUC to approve, or modify and approve, a project or projects and associated investments in renewable green hydrogen and hydrogen-related infrastructure, and to authorize recovery of those expenses incurred through a reasonable cost recovery mechanism.