California Energy Commission: Navigating the Future of Retail Gas

Reflections from my first month supporting neighborhood decarbonization at the CEC ERDD

Sean Yepez, MSc '26
Graduate Fellow, California Energy Commission

How I Almost Missed This Opportunity

Buried in assignments and exams for winter quarter, I almost missed the opportunity to apply for Stanford’s Shultz Fellowship. Previously, I hadn’t considered public service, but two of my professors, Peter Rumsey and Zachary Ming, both recommended that I look into the Fellowship, and I knew that I had to explore it further.

At first, the list of agencies offering internships felt overwhelming. Reading the project descriptions, the opportunity to work at the California Energy Commission’s Energy Research and Development Division (CEC ERDD) stood out as the perfect complement to my coursework. In my work renovating older homes prior to Stanford, I experienced first-hand how the cost and complexity of retrofits perpetuate California’s persistently high energy burdens. As a Master’s student studying Sustainable Design & Construction, I’m intrigued by the opportunity to decarbonize entire neighborhoods at scale.

Background on Neighborhood Decarbonization

In 2024, California passed Senate Bill 1221, directing the CPUC to establish a voluntary zonal decarbonization program to transition gas service to electrified alternatives. The investor-owned utilities (IOUs) submitted maps to the CPUC who will designate up to 30 priority neighborhood decarbonization zones by January 1, 2026.

The CEC plays a vital role in sponsoring research that helps the state navigate the complexities of energy transitions. One pivotal study was The Challenge of Retail Gas in California’s Low- Carbon Future, conducted in conjunction with E3, which highlights that a targeted, zonal approach can unlock substantial cost savings.

Another key project that demonstrates the benefits of neighborhood decarbonization is the CEC-sponsored Oakland EcoBlock which adopted a zero-net energy master plan by sharing solar, battery storage, and electric vehicle charging resources on a community microgrid, spreading electrification benefits to more households while avoiding redundant investments.

This summer, my role involves helping the CEC ERDD allocate its gas research budget to uncover what additional research investments will help California’s decarbonization pilots be successful. My first month has been focused on understanding current initiatives as a basis for defining the future research direction.

What a typical day looks like

The hybrid role of the internship suits the nature of the research well. My days at Stanford are focused and flexible: typically, I conduct my analysis autonomously and meet with my team members and research mentor weekly for guidance.

However, the most energizing collaboration occurs when the team gathers in Sacramento for Business Meetings. On these days, I wake up at 6am to reach the beautiful California Natural Resources Building by 9am. Team meetings are collaborative and informative, but the most crucial networking opportunities are at lunch, when there are surprising cross-team networking opportunities in the building’s first-floor cafeteria. An unexpected benefit of being in-office has been walking meetings, especially those which involve a stop for great coffee at one of Sacramento’s many shops downtown.

Two-way exchange of ideas

What impresses me the most about the CEC is the diversity of talent and expertise. Jill, a Stanford MS&E PhD, now works on wildfire risk management. Another teammate, Van, uses her Chemistry background to help define the technical details of pilot projects. Finally, Mithra applies her statistics background to address equity challenges empathetically and analytically.

I’m learning a lot from my team, and I’m grateful that they are equally enthusiastic about the frameworks that I bring from Stanford. One topic that attracted particular interest was approaching neighborhood decarbonization from the ISO-compliant Life Cycle Analysis framework which I explored in depth in Autumn 2024 (CEE 226).

Preparing for the Fellowship

In addition to the required course, Energy Policy in the West (CEE 263G), two other courses have been invaluable:

• Electricity Economics (CEE 273S), offered in Winter, teaches how utilities recover the cost of investments in transmission and distribution infrastructure for both gas and electricity systems.
• Decarbonized and Energy Efficient Building Design (CEE 226E), offered in Spring, deepened my knowledge of embodied and operational carbon, helping me evaluate retrofits from both financial and ecological perspectives.

Conclusion

One month in, I’m excited for the opportunity to contribute to the CEC’s growing research on neighborhood decarbonization. A carefully planned transition will be key to minimizing costs, avoiding redundancy, and accelerating adoption of decarbonized technologies.