If you don't already have one, you need the Lutron Caseta Pro hub. This Pro hub supports local Telnet integration as well as the cloud integration.
Once you confirm you have the correct hub, you can follow the instructions here: Lutron Integrator - Hubitat Documentation
I do have Pro hub. Thanks for the documentation
Does the Pro hub only come as a standalone purchase? It doesn't look like any of the casetta starter packs contain the pro hub, unless Lutron changed something.
I don't think any of the "starter packs" include the Pro hub. It's technically intended for "professional" installation (along the lines of their higher-end systems like RA2), and as such is not intended to be easily available off the shelf like the starter packs are. There are still several places you can find it online, Energy Avenue being one often recommended as having the best price (not sure how strict Lutron is about this or what "pro" means to them here, or if I heard wrong--just repeating what I've been told).
On Amazon and eBay, I have only seen the Pro hub for sale on its own.
I purchased mine as a kit years ago on Amazon. I searched my orders and chose the "buy it again" option which lead me to the below...I can't vouch for it since my purchase was in 2016 but...there it is.
Edit: now that I think of it...I believe I sold this bridge to get the Pro2 version...can't remember the differences at the moment.
Edit 2: see post below.
Note … you need to get the Pro Hub 2 unit. If you get a NEW Pro hub it cannot be set up on the Lutron Caseta app. Evidently there was a Homekit FW update that existing Pro hubs took if there were already set up. When I bought my hub, I bought a Pro hub new on eBay. When I couldn't set it up, I called Lutron support. They were super helpful and nice and sent me a new Pro 2 hub, just had to send back the original Pro hub.
The below link looks the same as what @stephack purchased, but it now shows L-BDGPRO2-WH as the hub in the description. Should I risk it lol
Since it’s fulfilled by amazon, there’s no real financial risk if you don’t get what the item description says it is. But it would still be a hassle to return it if it’s the older version. @Tim-in-Ca is correct, they’re essentially paper weights now, but Lutron customer service is pretty amazing though.
Should be O/k. Plus easy to return with Amazon if it’s not correct.
This appears to be the unofficial Lutron setup thread, so I just wanted to ask - I've programmed my three picos and added all of my Lutron devices to the Lutron App, and I've added my three Lutron dimmers to Hubitat and Alexa.
Is there any point to adding the picos to Hubitat/Alexa? I would think it would be redundant. The only thing I can conceive of is that if you want to make a rule in Hubitat that responds to a pico input, that might be the only reason to add it.
If I were to add a pico to Hubitat, do I select the "push/hold" or the "push/release" version when adding them? What is the difference?
If you don't need the additional options of Hold, use the push/release option. It's faster because it doesn't wait to see if you are holding the button down.
I only add Pico Remotes to Hubitat that are not associated with any Caseta devices directly within the SmartBridge Pro.
I use these as button controllers to trigger rules/automations that involve non-Caseta devices. For example, I have wall-mounted Pico remotes that control table lamps that have Sengled Zigbee bulbs in them. I can control these bulbs just like other Caseta dimmers. This helps with the WAF greatly. 
I don't associate Pico with the Caseta in the Lutron app, the Pico live in their own Pico "room". I do put them all into Hubitat, and most of them are using the push/hold rather than Fast Pico.
So by doing push/hold, I can use the Pico for two or more purposes. I can use the regular button presses to run the Caseta dimmer like normal. But by using the hold buttons, I can do things like hold to turn on/off a basement light that does not have an upstairs switch. I would add another switch or Pico here, but the 4 switches already takes up the whole space that is there, so I cannot expand wider.
I also turn on/off the kitchen sink light from the main kitchen switch. Same for a table light where I have a wall outlet and no easy access to the physical button.
There are way more uses than these, I am not super creative like some on here. But I do think there is some merit to having them in Hubitat and not just Lutron.
Correct. But in the year or so I have had Hubitat, it has never been down, unless the power was out. There is a chance, but there are hardwired switches as backup.
There is another downside. The performance of trying to control a Caséta dimmer via rules triggered in Hubitat via a Pico results in pretty slow performance. Whereas directly associated Picos to dimmers is instant.
I just received a new Caseta L-BDG2 and dimmers, switches and plugs. I cant seem to get this integrated with the app. There is not a Telnet option under the advanced setting in the caseta app??
Does the hub or packaging say say PRO anywhere? Something like L-BDGPRO2
The word pro is not there. So I need to order another one that is PRO?
Yep Pro. The only Pro bridge that is currently sold is the Pro bridge 2, the model I posted above.
Quote from the documentation:
In order to connect your Lutron devices to your Hubitat Elevation® network you will need a Lutron Smart Bridge Pro, RA2 Select Main Repeater or RA2 Main Repeater.
Download the Hubitat app
