The California Energy Commission (Energy Commission) has exclusive jurisdiction to review, and ultimately approve or deny, applications to construct and to operate thermal power plants and related facilities that generate 50 megawatts (MW) or more located in California. For projects that will generate more than 50 MW but less than 100 MW, the Energy Commission may grant the proposed project an exemption from its jurisdiction; this is referred to as the Small Power Plant Exemption (SPPE).
The Energy Commission serves as the lead agency under the California Environmental Quality Act (CEQA) for all SPPE applications. To approve an application for an SPPE, the Energy Commission must find that the proposed project would not create a substantial adverse impact on the environment or on energy resources. If an SPPE is granted, the project proponent must then secure the appropriate licenses and permits from relevant local, state, and federal agencies. If the application for the SPPE is denied, the project proponent would be required to file an application for power plant certification.