Groups head to California Supreme Court, seeking to upend solar rules
SAN DIEGO - In a few days, three environmental groups - including one from San Diego - get their chance to try to persuade the California Supreme Court to overturn a controversial rooftop solar policy issued by the California Public Utilities Commission nearly three years ago.
"We've been working on this for a long time and we hope the court makes the right decision," said Roger Lin, senior attorney for the Center for Biological Diversity.
The hearing is scheduled for Wednesday in Los Angeles.
The case centers on whether the utilities commission, known as the CPUC, made the legally correct call when it changed the rules regarding how the estimated 2 million rooftop solar customers in California get compensated when their systems generate more electricity than they consume.
In December 2022, the CPUC's five commissioners unanimously voted to approve the third iteration of the state's Net Energy Metering program, dubbed NEM 3.0.
The complex 260-page decision included incentives to encourage customers to pair their solar installations with battery storage systems.
But the portion of the decision that raised the most hackles revised the rules so that new rooftop solar customers would no longer be credited at the retail rate of electricity when their systems generated surplus energy. Instead, they get paid at the "actual avoided cost," which is lower.
The CPUC's decision, which went into effect in April 2023, said the change sends "more accurate price signals that encourage electrification" across the state.
The commission determined that changes need to be made, agreeing in large part with California utilities who said the earlier NEM rules were too generous.
They argued that the growing number of rooftop installations leads to a "cost shift" that leaves customers who don't have solar paying an unfair share of the fixed costs that come with maintaining the electric system - substations, transformers, poles and wires, etc.
But opponents of the CPUC decision have long disputed the cost-shift argument, saying that it does not properly take into account the benefits of rooftop solar, such as reducing the need for utilities to spend ratepayer dollars on building more infrastructure.
They also argue that the lower compensation rate undercuts the incentive for potential customers to put solar on their roofs because it will take longer for new customers to recoup the cost of spending thousands of dollars on their installations.
Shortly after the CPUC decision, the Center for Biological Diversity, the Environmental Working Group and San Diego-based Protect Our Communities Foundation tried to overturn NEM 3.0's rules.
After the CPUC rebuffed the groups' request for a rehearing, the trio took their case to the California Court of Appeals. But in a 40-page ruling in December 2023, Associate Justice Victor Rodríguez authored a 3-0 decision upholding the CPUC's decision, saying, "We must give 'great weight' to the Commission's interpretation of the provisions of the Public Utilities Code."
Rodríguez went on to write, "This uniquely deferential standard of review is accorded the Commission because of its status as 'a constitutional body with broad legislative and judicial powers.' "
Undeterred, the three groups petitioned the California Supreme Court to hear their case, and last year the high court agreed. It's on the docket for oral arguments before all seven justices during Wednesday's morning session.
"This case revolves around whether the Public Utilities Commission actually looked at the cost and benefits of rooftop solar, specifically," said Lin of the Center for Biological Diversity, citing a statute passed by the state Legislature that calls on the CPUC to promote the growth of renewable power in the state.
The petitioners also argue the appeals court gave too much deference to the CPUC and the ruling did not go far enough to help disadvantaged communities.
A spokesperson for the CPUC declined to comment on the commission's defense of its NEM 3.0 ruling, citing the "ongoing litigation," but referred to the arguments made in the appeals court ruling.
Court observers say it's very unlikely the California Supreme Court will issue a ruling on Wednesday; rather, a decision is expected in about month or so.
With more than 2 million solar systems atop homes, businesses and other locations, California has more rooftop installations than any state in the nation.
As the new rules are currently written, solar customers who had their systems installed under earlier iterations of NEM still get compensated at the retail rate for 20 years from the time their systems were installed before they are switched to the new rules.
For example, a customer who had a system installed in 2018 gets credited at the retail rate until 2038. But after that, the customer will be credited at the lower NEM 3.0 rate.
Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
San Francisco Chronicle
15 minutes ago
- San Francisco Chronicle
Diplomatic breakthrough elusive as Israel-Iran war stretches into second week
TEL AVIV, Israel (AP) — Hours of talks aimed at de-escalating fighting between Israel and Iran failed to produce a diplomatic breakthrough as the war entered its second week with a fresh round of strikes between the two adversaries. European ministers and Iran's top diplomat met for four hours Friday in Geneva, as President Donald Trump continued to weigh U.S. military involvement and worries rose over potential strikes on nuclear reactors. European officials expressed hope for future negotiations, and Iranian Foreign Minister Abbas Araghchi said he was open to further dialogue while emphasizing that Tehran had no interest in negotiating with the U.S. while Israel continued attacking. 'Iran is ready to consider diplomacy if aggression ceases and the aggressor is held accountable for its committed crimes,' he told reporters. No date was set for the next round of talks. Israeli Prime Minister Benjamin Netanyahu said Israel's military operation in Iran would continue 'for as long as it takes' to eliminate what he called the existential threat of Iran's nuclear program and arsenal of ballistic missiles. Israel's top general echoed the warning, saying the Israeli military was ready 'for a prolonged campaign.' But Netanyahu's goal could be out of reach without U.S. help. Iran's underground Fordo uranium enrichment facility is considered to be out of reach to all but America's 'bunker-buster' bombs. Trump said he would put off deciding whether to join Israel's air campaign against Iran for up to two weeks. The war between Israel and Iran erupted June 13, with Israeli airstrikes targeting nuclear and military sites, top generals and nuclear scientists. At least 657 people, including 263 civilians, have been killed in Iran and more than 2,000 wounded, according to a Washington-based Iranian human rights group. Iran has retaliated by firing 450 missiles and 1,000 drones at Israel, according to Israeli army estimates. Most have been shot down by Israel's multitiered air defenses, but at least 24 people in Israel have been killed and hundreds wounded. Worries rise over the perils of attacking Iran's nuclear reactors Addressing an emergency meeting of the U.N. Security Council, the head of the International Atomic Energy Agency warned against attacks on Iran's nuclear reactors, particularly its only commercial nuclear power plant in the southern city of Bushehr. 'I want to make it absolutely and completely clear: In case of an attack on the Bushehr nuclear power plant, a direct hit would result in a very high release of radioactivity to the environment,' said Rafael Grossi, chief of the U.N. nuclear watchdog. 'This is the nuclear site in Iran where the consequences could be most serious.' Israel has not targeted Iran's nuclear reactors, instead focusing its strikes on the main uranium enrichment facility at Natanz, centrifuge workshops near Tehran, laboratories in Isfahan and the country's Arak heavy water reactor southwest of the capital. Grossi has warned repeatedly that such sites should not be military targets. After initially reporting no visible damage from Israel's Thursday strikes on the Arak heavy water reactor, the IAEA on Friday said it had assessed 'key buildings at the facility were damaged,' including the distillation unit. The reactor was not operational and contained no nuclear material, so the damage posed no risk of contamination, the watchdog said. Iran previously agreed to limit its uranium enrichment and allow international inspectors access to its nuclear sites under a 2015 deal with the U.S., France, China, Russia, Britain and Germany in exchange for sanctions relief. But after Trump pulled the U.S. unilaterally out of the deal during his first term, Iran began enriching uranium up to 60% — a short, technical step away from weapons-grade levels of 90% — and restricting access to its nuclear facilities. Iran has long maintained its nuclear program is for peaceful purposes, but it is the only non-nuclear-weapon state to enrich uranium up to 60%. Israel is widely believed to be the only Middle Eastern country with a nuclear weapons program but has never acknowledged it. Israel says 'difficult days' ahead Israel said its warplanes hit dozens of military targets across Iran on Friday, including missile-manufacturing facilities, while an Iranian missile hit Israel's northern city of Haifa, sending plumes of smoke billowing over the Mediterranean port and wounding at least 31 people. Iranian state media reported explosions from Israeli strikes in an industrial area of Rasht, along the coast of the Caspian Sea. Israel's military had warned Iranians to evacuate the area around Rasht's Industrial City, southwest of the city's downtown. But with Iran's internet shut off — now for more than 48 hours — it's unclear how many people could see the message. The Israeli military believes it has destroyed most of Iran's ballistic missile launchers, contributing to the steady decline in Iranian attacks. But several of the roughly three dozen missiles that Israel said Iran fired on Friday slipped through the country's aerial defense system, setting off air-raid sirens across the country and sending shrapnel flying into a residential area in the southern city of Beersheba, a frequent target of Iranian missiles where a hospital was hit Thursday.
The Hill
30 minutes ago
- The Hill
Diplomatic breakthrough elusive as Israel-Iran war stretches into second week
TEL AVIV, Israel (AP) — Hours of talks aimed at de-escalating fighting between Israel and Iran failed to produce a diplomatic breakthrough as the war entered its second week with a fresh round of strikes between the two adversaries. European ministers and Iran's top diplomat met for four hours Friday in Geneva, as President Donald Trump continued to weigh U.S. military involvement and worries rose over potential strikes on nuclear reactors. European officials expressed hope for future negotiations, and Iranian Foreign Minister Abbas Araghchi said he was open to further dialogue while emphasizing that Tehran had no interest in negotiating with the U.S. while Israel continued attacking. 'Iran is ready to consider diplomacy if aggression ceases and the aggressor is held accountable for its committed crimes,' he told reporters. No date was set for the next round of talks. Israeli Prime Minister Benjamin Netanyahu said Israel's military operation in Iran would continue 'for as long as it takes' to eliminate what he called the existential threat of Iran's nuclear program and arsenal of ballistic missiles. Israel's top general echoed the warning, saying the Israeli military was ready 'for a prolonged campaign.' But Netanyahu's goal could be out of reach without U.S. help. Iran's underground Fordo uranium enrichment facility is considered to be out of reach to all but America's 'bunker-buster' bombs. Trump said he would put off deciding whether to join Israel's air campaign against Iran for up to two weeks. The war between Israel and Iran erupted June 13, with Israeli airstrikes targeting nuclear and military sites, top generals and nuclear scientists. At least 657 people, including 263 civilians, have been killed in Iran and more than 2,000 wounded, according to a Washington-based Iranian human rights group. Iran has retaliated by firing 450 missiles and 1,000 drones at Israel, according to Israeli army estimates. Most have been shot down by Israel's multitiered air defenses, but at least 24 people in Israel have been killed and hundreds wounded. Addressing an emergency meeting of the U.N. Security Council, the head of the International Atomic Energy Agency warned against attacks on Iran's nuclear reactors, particularly its only commercial nuclear power plant in the southern city of Bushehr. 'I want to make it absolutely and completely clear: In case of an attack on the Bushehr nuclear power plant, a direct hit would result in a very high release of radioactivity to the environment,' said Rafael Grossi, chief of the U.N. nuclear watchdog. 'This is the nuclear site in Iran where the consequences could be most serious.' Israel has not targeted Iran's nuclear reactors, instead focusing its strikes on the main uranium enrichment facility at Natanz, centrifuge workshops near Tehran, laboratories in Isfahan and the country's Arak heavy water reactor southwest of the capital. Grossi has warned repeatedly that such sites should not be military targets. After initially reporting no visible damage from Israel's Thursday strikes on the Arak heavy water reactor, the IAEA on Friday said it had assessed 'key buildings at the facility were damaged,' including the distillation unit. The reactor was not operational and contained no nuclear material, so the damage posed no risk of contamination, the watchdog said. Iran previously agreed to limit its uranium enrichment and allow international inspectors access to its nuclear sites under a 2015 deal with the U.S., France, China, Russia, Britain and Germany in exchange for sanctions relief. But after Trump pulled the U.S. unilaterally out of the deal during his first term, Iran began enriching uranium up to 60% — a short, technical step away from weapons-grade levels of 90% — and restricting access to its nuclear facilities. Iran has long maintained its nuclear program is for peaceful purposes, but it is the only non-nuclear-weapon state to enrich uranium up to 60%. Israel is widely believed to be the only Middle Eastern country with a nuclear weapons program but has never acknowledged it. Israel said its warplanes hit dozens of military targets across Iran on Friday, including missile-manufacturing facilities, while an Iranian missile hit Israel's northern city of Haifa, sending plumes of smoke billowing over the Mediterranean port and wounding at least 31 people. Iranian state media reported explosions from Israeli strikes in an industrial area of Rasht, along the coast of the Caspian Sea. Israel's military had warned Iranians to evacuate the area around Rasht's Industrial City, southwest of the city's downtown. But with Iran's internet shut off — now for more than 48 hours — it's unclear how many people could see the message. The Israeli military believes it has destroyed most of Iran's ballistic missile launchers, contributing to the steady decline in Iranian attacks. But several of the roughly three dozen missiles that Israel said Iran fired on Friday slipped through the country's aerial defense system, setting off air-raid sirens across the country and sending shrapnel flying into a residential area in the southern city of Beersheba, a frequent target of Iranian missiles where a hospital was hit Thursday.
Boston Globe
31 minutes ago
- Boston Globe
Diplomatic breakthrough elusive as Israel-Iran war stretches into second week
'Iran is ready to consider diplomacy if aggression ceases and the aggressor is held accountable for its committed crimes,' he told reporters. No date was set for the next round of talks. Advertisement Israeli Prime Minister Benjamin Netanyahu said Israel's military operation in Iran would continue 'for as long as it takes' to eliminate what he called the existential threat of Iran's nuclear program and arsenal of ballistic missiles. Israel's top general echoed the warning, saying the Israeli military was ready 'for a prolonged campaign.' But Netanyahu's goal could be out of reach without U.S. help. Iran's underground Fordo uranium enrichment facility is considered to be out of reach to all but America's 'bunker-buster' bombs. Trump said he would put off deciding whether to join Israel's air campaign against Iran for up to two weeks. The war between Israel and Iran erupted June 13, with Israeli airstrikes targeting nuclear and military sites, top generals and nuclear scientists. At least 657 people, including 263 civilians, have been killed in Iran and more than 2,000 wounded, according to a Washington-based Iranian human rights group. Advertisement Iran has retaliated by firing 450 missiles and 1,000 drones at Israel, according to Israeli army estimates. Most have been shot down by Israel's multitiered air defenses, but at least 24 people in Israel have been killed and hundreds wounded. Worries rise over the perils of attacking Iran's nuclear reactors Addressing an emergency meeting of the U.N. Security Council, the head of the International Atomic Energy Agency warned against attacks on Iran's nuclear reactors, particularly its only commercial nuclear power plant in the southern city of Bushehr. 'I want to make it absolutely and completely clear: In case of an attack on the Bushehr nuclear power plant, a direct hit would result in a very high release of radioactivity to the environment,' said Rafael Grossi, chief of the U.N. nuclear watchdog. 'This is the nuclear site in Iran where the consequences could be most serious.' Israel has not targeted Iran's nuclear reactors, instead focusing its strikes on the main uranium enrichment facility at Natanz, centrifuge workshops near Tehran, laboratories in Isfahan and the country's Arak heavy water reactor southwest of the capital. Grossi has warned repeatedly that such sites should not be military targets. After initially reporting no visible damage from Israel's Thursday strikes on the Arak heavy water reactor, the IAEA on Friday said it had assessed 'key buildings at the facility were damaged,' including the distillation unit. The reactor was not operational and contained no nuclear material, so the damage posed no risk of contamination, the watchdog said. Iran previously agreed to limit its uranium enrichment and allow international inspectors access to its nuclear sites under a 2015 deal with the U.S., France, China, Russia, Britain and Germany in exchange for sanctions relief. But after Trump pulled the U.S. unilaterally out of the deal during his first term, Iran began enriching uranium up to 60% — a short, technical step away from weapons-grade levels of 90% — and restricting access to its nuclear facilities. Advertisement Iran has long maintained its nuclear program is for peaceful purposes, but it is the only non-nuclear-weapon state to enrich uranium up to 60%. Israel is widely believed to be the only Middle Eastern country with a nuclear weapons program but has never acknowledged it. Israel says 'difficult days' ahead Israel said its warplanes hit dozens of military targets across Iran on Friday, including missile-manufacturing facilities, while an Iranian missile hit Israel's northern city of Haifa, sending plumes of smoke billowing over the Mediterranean port and wounding at least 31 people. Iranian state media reported explosions from Israeli strikes in an industrial area of Rasht, along the coast of the Caspian Sea. Israel's military had warned Iranians to evacuate the area around Rasht's Industrial City, southwest of the city's downtown. But with Iran's internet shut off — now for more than 48 hours — it's unclear how many people could see the message. The Israeli military believes it has destroyed most of Iran's ballistic missile launchers, contributing to the steady decline in Iranian attacks. But several of the roughly three dozen missiles that Israel said Iran fired on Friday slipped through the country's aerial defense system, setting off air-raid sirens across the country and sending shrapnel flying into a residential area in the southern city of Beersheba, a frequent target of Iranian missiles where a hospital was hit Thursday. Advertisement
