NEM Revisit Proceeding (R.20-08-020)

This proceeding revisited California's net energy metering (NEM) program, which is described on the Customer-Sited Renewable Energy Generation webpage, the Rulemaking R.14-07-002 webpage, and the NEM 2.0 evaluation webpage. The proceeding was initiated because the Commission committed in Decision (D.) 16-01-044 to later review the NEM successor (or NEM 2.0) tariff, citing interactive, yet unresolved, policy movements within the Commission, but outside the scope of R.14-07-002. The proceeding is now closed.

Visit this webpage to view documents in the R.20-08-020 proceeding.

Proceeding Foundations

The major focus of this proceeding was the development of a successor to existing NEM 2.0 tariffs pursuant to the requirements of California Assembly Bill (AB) 327 (2013, Perea). The proceeding's scope also included the review and potential modification of all NEM tariff schedules, and issues related to consumer protection.

• An Order Instituting Rulemaking to revisit the existing NEM tariffs was adopted in August 2020.
• A Scoping Memo listing the issues to be determined in this proceeding was issued in November 2020.  
• A decision (D.21-02-007) listing guiding principles for the proceeding was adopted in February 2021

AB 2143 (2022, Carrillo) added two new sections to the Public Utilities Code (769.2 and 913.13). Public Utilities Code Section 769.2 requires contractors to pay prevailing wages for workers and apprentices of certain eligible renewable generation facilities wishing to utilize NEM or net billing tariffs.

• An Amended Scoping Memo added implementation of AB 2143 to the proceeding's scope in March 2023.

Proceeding Outcomes

The CPUC disposed of some of the issues in the original scoping memo by adopting D.22-12-056 in December 2022. This decision did not affect customers who submitted a NEM interconnection application by April 14, 2023. It established the net billing tariff (NBT) as a successor to NEM 2.0 for customers who submit an interconnection application on or after April 15, 2023. The NBT is expected to promote grid reliability, incentivize solar and battery storage, and control electricity costs for utility customers.

The CPUC disposed of the remaining issues in the original and amended scoping memos by adopting D.23-12-068 in November 2023. This decision established the virtual net billing tariff (VNBT), established an aggregation subtariff of the NBT, enhanced solar consumer protections, specified plans for a future evaluation of proceeding outcomes, clarified NEM Fuel Cell tariff requirements, and provided for implementation of the prevailing wage mandate in Public Utilities Code Section 769.2. The VNBT and aggregation subtariff will be in effect for customers submitting interconnection applications after February 14, 2024.

Proceeding Events in 2023

Proceeding events prior to 2023 are described on the NBT decision webpage. 

A ruling was issued on February 1 to notice a workshop and invite responses to questions about consumer protections and the planned evaluation of the net billing tariff.

An online workshop was held on February 8 to obtain information on the current VNEM tariff and NEMA subtariff and to discuss how to synchronize them with related statutes and California climate policies and objectives. (workshop slides | workshop recording)

A ruling was issued on February 28 to invite responses to questions about virtual NEM, NEM aggregation, and fuel cell resources.

A ruling was issued on April 3 to invite responses to questions about the implementation of Public Utilities Code Section 769.2 per AB 2143.

On June 29, the CPUC adopted D.23-06-056 denying applications for rehearing of D.22-12-056.

A proposed decision and fact sheet were issued on August 2 regarding the virtual NEM tariff, the NEM aggregation subtariff, protections for NEM and net billing tariff customers, the future NBT evaluation, the NEM Fuel Cell tariff, and implementation of Public Utilities Code Section 769.2. Parties to the proceeding submitted opening and reply comments on the proposed decision on August 22 and August 28, respectively. The proposed decision's adder for the VNBT is based on analysis published with D.22-12-056, available on the NBT decision webpage. For quick reference, see Energy Division staff's VNBT analysis.

Revised proposed decisions were issued on November 8 and November 13, with the second accompanied by an updated fact sheet. On November 16, the CPUC adopted the revised proposed decision, which was issued as D.23-12-068. (press release)

How to Stay Updated on Proceeding Outcomes

If you want to be notified of events in R.20-08-020, sign up for the proceeding's service list here.

Contact Us

If you have any questions about information on this webpage, please contact the CPUC Energy Division at energy@cpuc.ca.gov.  For press inquiries, please contact the CPUC News and Outreach Office.