In this proceeding, SDG&E, along with SoCalGas, SW Gas, and PG&E, seek authorization to establish hydrogen blending demonstration projects to test the gas infrastructure’s capacity to handle transportation and storage of hydrogen. In December 2022, the Commission issued D.22-12-057 (R.13-02-008) and directed SoCalGas, SDG&E, SW Gas and PG&E, to propose pilot projects that would help fill the gaps in research and understanding from a 2022 UC Riverside study on hydrogen blending in natural gas pipelines.
UCAN protested the Application that requests $205 million for these projects but does not show how the pilots will benefit ratepayers and fails to demonstrate how the pilots will cost effectively decarbonize the energy system. UCAN raised concerns that the Application does not provide an analysis of decarbonization through hydrogen blending compared to all other energy system decarbonization options. Blending of hydrogen into natural gas pipelines does not align with California energy policy. Rather, a CPUC, CEC, and CARB Joint Staff report finds that electrification is the most cost-effective building decarbonization strategy.
Hydrogen blending would also increase the NOx emissions at residential, commercial, and industrial combustion sites negatively impacting human health. Moreover, Hydrogen blending into natural gas pipelines does not support future needs for green hydrogen. Energy end-uses that formerly were considered “hard-to-abate” have seen numerous alternatives to fossil fuels proposed in recent years. The end-uses for which it is appropriate to use green hydrogen are only the end-uses for which there are no alternatives to hydrogen, not the end-uses that would be served by blended hydrogen.
Recently, the CPUC held public hearings recently at which SDG&E officials gave details of their request to spend $21.1 million on its pilot program. Speakers raised concerns about the safety and expense of injecting high percentages of hydrogen into pipelines and say gas companies are just looking for a lifeline to keep their business models viable in light of California’s environmental goals. (See, https://www.sandiegouniontribune.com/2025/10/03/sdges-hydrogen-blending-project-hope-or-hype.)
UCAN, along with other Intervenors, will soon be briefing the issues in this proceeding which may see a decision in early 2026.