California Fuel Substitution Test

The California Public Utilities Commission (CPUC) established the Fuel Substitution Test in August 2019 (Decision 19-08-009). The test clarifies how to demonstrate that an existing building measure does not 1) increase total source consumption or 2) adversely impact the environment when compared with the baseline measure using the original fuel. It applies cost effectiveness at the portfolio level, like efficiency measures, and requires that the “new fuel” customers (typically electric) fund the programs. It does not address unregulated fuel switching from wood and propane.

CPUC Decision 18-12-015 approves pilot projects in the San Joaquin Valley meant to replace propane and wood burning appliances with either electric or natural gas alternatives.