Objective: Identify the legal and regulatory authority for a sandbox mechanism in your jurisdiction.

PUCs frequently support sandbox implementation by pointing to broad regulatory mandates, including responsibilities related to innovation, public interest, energy planning, and meeting state mandates.

Following are examples of Commissions that cite their broad regulatory authority and obligations as justification to establish a regulatory sandbox.

• The District of Columbia cited its obligation to take meaningful steps to achieve its energy and other District mandate commitments.
• Connecticut cited its broad statutory powers and obligations to oversee electric distribution companies and requirements to partner with third parties for enhanced demand-side management programs.

Following are examples of states that cite more explicit legal authority for sandboxes.

• California preserved an expiring funding carve-out under a Public Goods Charge statute for the EPIC programs.
• Hawaii cited statutes requiring implementation of performance-based regulation (PBR).

Commissions may find that they have sufficient authority to establish a regulatory sandbox under existing mandates. However, in some cases additional legislation may be necessary to formally authorize the creation and implementation of a sandbox, such as in Vermont, where legislation enabled sandbox mechanisms for municipal and cooperative utilities.

Commissions may also have existing frameworks to draw on in the design of regulatory sandboxes, such as other proceedings where the Commission conducts expedited review of utility filings. For example, North Carolina noted a similar expedited approval process for demand-side management and energy efficiency pilots.

See the Map of Sandbox Mechanisms tab for more information on the legal and regulatory foundations for each sandbox mechanism.