CPUC seeks public input on designating neighborhood decarbonization zones under SB 1221

Alice Busching Reynolds, President at California Public Utilities Commission
Alice Busching Reynolds, President at California Public Utilities Commission - California Public Utilities Commission
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The California Public Utilities Commission (CPUC) has announced two upcoming virtual public forums to collect input on the designation of neighborhood decarbonization zones. These zones could be selected for pilot projects that transition entire neighborhoods from natural gas service to zero-emission alternatives.

The forums are scheduled for August 7, 2025, at 2 p.m. and 6 p.m., and will be held remotely. Participants can join via webcast with English or Spanish captions at www.adminmonitor.com/ca/cpuc, though those wishing to make verbal comments must use the phone line at 1-800-857-1917 with passcode 6032788#. The CPUC will record and archive both sessions for future viewing.

These forums are part of the CPUC’s implementation of Senate Bill (SB) 1221, which was signed into law by Governor Newsom in 2024. The bill requires the CPUC to designate priority neighborhood decarbonization zones by January 1, 2026, and to establish a voluntary program for up to 30 pilot projects by July 1, 2026. The goal is to help customers in these areas move from natural gas service to cost-effective, zero-emission options such as electric appliances.

To support this process, utilities have provided maps showing their natural gas distribution systems, planned pipeline replacements, and recommended decarbonization zones. Under SB 1221’s guidelines, the CPUC may only approve pilot projects in areas where at least two-thirds of natural gas customers give written consent. If approved, utilities would replace natural gas service with zero-emission alternatives and would no longer be required to provide natural gas in those neighborhoods.

On June 6, 2025, the CPUC informed the Disadvantaged Communities Advisory Group (DACAG) about its plans regarding SB 1221 and these public forums. The DACAG evaluates CPUC programs and policies to ensure benefits reach disadvantaged communities across California. In addition to DACAG involvement, the CPUC is working closely with the California Energy Commission and California Air Resources Board on this initiative.

According to the CPUC: “While a quorum of Commissioners and/or their staff may attend the Public Forums (formally called Public Participation Hearings), no official action will be taken on this matter during the Public Forums.”

Specialized accommodations such as non-English or American Sign Language interpreters are available upon request through the CPUC’s Public Advisor’s Office if contacted at least five business days before the event.

For more information about participating or submitting written comments regarding SB 1221 implementation or pilot project selection criteria visit https://www.cpuc.ca.gov/proceedings-and-rulemaking/r2001007 or refer directly to proceeding documents available online.

The CPUC oversees utility services throughout California with a focus on consumer protection and environmental stewardship. More details about its work can be found at https://www.cpuc.ca.gov/.



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