Initiating a Regulatory Sandbox | |
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| Identify barriers to innovation in the jurisdiction and determine which type of sandbox-type mechanism, sandbox design elements, and other innovation vehicles will best address those specific barriers. | |
| Solicit buy-in from relevant leadership. | |
| Consider establishing an advisory or working group to foster stakeholder buy-in, bring in expertise in new areas, and provide ongoing support for the sandbox. | |
Designing a Regulatory Sandbox | |
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| Identify clear and ambitious sandbox objectives aligned with state and regulatory goals and in consideration of stakeholder input. | |
| Consider learning, speed, and eventual scaling as primary objectives. | |
| Clearly define terminology such as “pilot,” “demonstration,” and “innovative” upfront and with stakeholder input. | |
| Develop clear guidelines on project eligibility, application processes, and selection criteria. | |
| Consider selection criteria that align with sandbox objectives, reward proposals that follow best practices for pilot design and implementation, are relatively simple in structure, and are responsive to customer needs and desires. | |
| Create multiple pathways to participation so that innovators and stakeholders can put ideas forward in addition to or in partnership with utilities. | |
| Establish clear reporting and evaluation requirements using metrics that align with desired outcomes. | |
| Identify go/no-go checkpoints and criteria for selected projects. | |
| Create data and information-sharing requirements as part of reporting by utilities and third party participants. | |
| Clearly identify scaling strategies and processes for projects that go through the sandbox mechanism. | |
Administering a Regulatory Sandbox | |
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| Establish and clearly communicate a calendar of events or other sandbox timelines and key dates. | |
| Design templates or standard format documents for applications and for evaluating proposals to reduce administrative burdens. | |
| Dedicate sufficient staff resources to the sandbox, including cross-functional teams with pre-identified roles and processes for quickly reviewing applications (if relevant), and consider opportunities to engage external technical support, including a third-party program administrator, as resources permit. | |
| Create channels for regular, candid, non-punitive conversations between regulators and utilities, other innovators, and stakeholders, including non-decisional Commission staff. | |
| Create processes for continuous learning and checkpoints to adjust the sandbox mechanism over time. | |
| Establish and maintain multiple communication channels for sharing information on the sandbox, such as an informational webpage, a library of sandbox project results, an innovation idea exchange portal, or a sandbox newsletter. | |