2023 sustainability grants

100% zero carbon by 2030

When SMUD developed our 2030 Zero Carbon Plan in 2021, we promised to take bold steps forward to decarbonize our power supply, while maintaining our world-class reliability and affordable rates, which continue to be some of the lowest in California.

We also knew that hundreds of millions of dollars were available nationally because of the federal focus on prioritizing decarbonization.

From the beginning of developing the 2030 Clean Energy Vision and the Zero Carbon Plan, we opened our doors to a variety of partnerships. This includes the local Sacramento community, government, other utilities, public and private sector companies, agencies, foundations and others to explore potential funding sources. We developed a grant strategy to secure funding to tackle carbon reductions in a way that uses more than our customers’ money to get to our goals. Part of this includes working to align regional priorities and bring investments into the region to establish Sacramento as the place where climate friendly businesses want to be.

By pursuing grants, we're seeking not just funding – but also to unlock opportunities for innovation. These grants allow SMUD to explore new solutions, pilot groundbreaking technologies – like carbon capture and sequestration – and push the boundaries of what's possible in the utility industry and beyond.

SMUD has a great track record for attracting grant funding. In 2009, we were awarded $127 million dollars from the Department of Energy’s (DOE) Smart Grid Grant – the largest of any utility. That effort allowed us to accelerate the deployment of more than 600,000 smart meters, digital electricity meters that measure how much electricity is used and when it is used. We were one of the first public power utilities to adopt smart meters, and it laid the foundation for our customers to be a partner in a clean energy future.

In 2023, SMUD and our partners secured an impressive $330 million dollars in grant funding -- all helping to keep costs low for our customers and community. The largest was the $270 million grant from the Department of Energy, in partnership with Calpine Corporation, America’s largest generator or electricity from natural gas and geothermal resources, for their carbon capture and storage project in Yuba City, California.

""The Sutter Decarbonization Project will demonstrate and deploy a commercial-scale carbon capture and sequestration system at the Sutter Energy Center, a 550-megawatt natural gas combined-cycle power plant. The project will then transport the carbon dioxide and sequester it permanently and safely more than a half a mile underground in saline geologic formations. This project will be the first in the world to deploy an air-cooling system at a carbon capture facility, which will eliminate the use of cooling water and significantly minimize freshwater usage—a critical concern of the local community.

In 2023, SMUD also received $50 million from the DOE Grid Deployment Office’s Grid Resilience and Innovation Partnership Program, or GRIP grant, to support advanced smart grid technologies and increase the reliability, efficiency and flexibility of our grid. Receiving this first GRIP grant was critical to set us up for future grid needs. That funding allows SMUD to integrate more renewable sources and partner with our customers for load flexibility.

The GRIP grant will enable SMUD over the next 5 years to: 

  • ""Deploy up to 200,000 next generation smart meters and Distributed Intelligence applications to enable advanced DI at the grid-edge.
  • Deploy Advanced Distributed Energy Resource Management System (DERMS) features with centralized artificial intelligence and integrate Distributed Energy Resources (DERS) to support the transition from a one-way centralized distribution system to a two-way decentralized system.
  • Deploy up to 100 miles of fiber optic cable to facilitate deployment and improve DERMS situational awareness, control and data quality.
  • Implement our new Outage Management System with advanced features to enable operational efficiencies and better customer experience through improved communication, grid automation and modernization.
  • Deploy up to 22,500 intelligent, 2-way load control switches/sensors to cycle air conditioning load on/off during grid emergencies.
  • Deliver 5 minute interval data availability and 15 minute interval data availability for commercial and residential customers.
  • Through this project, SMUD will also collaborate with Wilton Rancheria to holistically evaluate building electrification opportunities and the integration of solar, storage and electrification on Tribal lands into the regional grid. An important workforce development component of the project includes training Wilton Rancheria members in advanced smart meter and other electrification technologies to support our transition to a clean energy future. SMUD will provide Wilton Rancheria with rebates to support electrification efforts in parallel with the GRIP grant.

Other notable grants SMUD received in 2023 that propel our movement forward in sustainability and toward our 2030 Zero Carbon goals include:

  • SMUD electric vehicle in front of a high-speed chargerSMUD is partnering with Mote, Inc. in establishing a biomass-to-hydrogen and carbon sequestration plant. The $1.2 million in funding from the U.S. Forest Service, California Department of Conservation and California Department of Forestry, is part of the California Hydrogen Hub, which goes by the name Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES). Our work with Mote will result in a facility that could produce approximately 21,000 metric tons per year of carbon-negative hydrogen for use in thermal power generation and transportation.
  • $5.3 million for a California Energy Commission Reach 2.0 grant: This California Energy Commission grant will be used to demonstrate replicable and scalable business and technology models for large-scale deployment of EV charging infrastructure capable of maximizing access and EV travel for Multi-Family Housing residents.
  • $5 million for the California Energy Commission’s (CEC’s) Fast and Available Charging for all Californians (FAST): CEC Clean Transportation Program, grant funding goes toward projects that will support EV charging infrastructure for high mileage on-demand transportation services, car sharing enterprises, car rental agencies and the public.
  • $337,000 from the  California Department of Industry Relations Apprenticeship Incentive Program to support new and innovative apprenticeships.
  • $193,000 for a local hazard mitigation plan update: Federal Emergency Management Agency’s Hazard Mitigation Grant Program provides funding for states, territories and tribes to maximize their investment in mitigation measures that result in safer and more resilient communities.