Summer is nearly half over, but don’t fret! Building decarb wins are a great cure for the ‘August blues’, and we’re celebrating huge ones on both coasts.
On a hotter-than average Friday in July, New York enacted the nation’s first statewide all-electric building code, ensuring all new construction will be fossil fuel-free. Just a few days later, the public-private California Heat Pump Partnership convened to approve a statewide consumer marketing campaign, greenlighting some absolutely electric creative concepts, hundreds of community events, private sector partnerships, and the first ever Heat Pump Week.
And just when you thought I’d run out of steam, I’m thrilled to share BDC’s newest policy brief which covers how data centers, with the help of thermal energy networks (TENs), can power nearby communities with clean, affordable electricity.
There may be a lot of work to do before the summer ends, but I can confidently say that the movement is stronger than ever at the state level, thanks to your contributions. Let’s keep it up!
There are more than 5,000 data centers in the United States, and that number is growing. City and state leaders may wish to attract data center investment to their areas, yet they require solutions to mitigate these facilities’ environmental impacts.
Thermal energy networks (TENs) may be one solution. This is because data centers throw away enough heat to warm entire neighborhoods, and TENs can harness this “waste heat” and use it to reduce building emissions, save water, ease stress on the grid, and help make data centers better neighbors to surrounding areas.
This solution is already used around the world. Our new policy brief, Can Data Centers Heat Our Buildings?, highlights existing examples of data center waste heat recovery and identifies policy tools that can help data centers provide non-emitting thermal energy to surrounding areas through stakeholder engagement and forward-thinking design.
We invite you to join us for our monthly California building decarbonization policy discussion! Learn about legislation, regulation, and what’s on the climate policy horizon as our coalition works to advance neighborhood-scale decarbonization, statewide healthy air standards, and energy affordability.
“We applaud New York’s leadership in ushering in a new era for building decarbonization. By adopting this nation-leading code, the state is sending a strong signal that the future of buildings is cleaner, healthier, and emissions-free. Thank you to Governor Hochul, legislative leaders, NYSERDA, and the Building Code Council for their tireless commitment and turning this vision into reality. At a time when state leadership is essential, this landmark vote sets the pace for the rest of the nation,” said Lisa Dix, New York Director at the Building Decarbonization Coalition.
Canary Media California Governor Gavin Newsom signed AB 130 into law, halting local and statewide residential building code updates, including all-electric reach codes, through mid-2031. BDC’s Beckie Menten told Canary Media the bill removes a key tool cities use to align housing construction with climate goals, though exemptions may still be possible for health and safety.
I now live in an all-electric home. You can, too. Quitting Carbon Justin Gerdes, Quitting Carbon’s publisher, writes that those looking to live in an all-electric home by installing a heat pump, heat pump water heater, induction range and other electrical appliances can use the Contractor Finder at the Building Decarbonization Coalition's The Switch Is On website to find a licensed contractor in California or Long Island, NY that is "specially trained in energy efficiency and electric technologies."
BDC’s California Director, Beckie Menten, joined KQED to break down the heat pump and other building decarbonization federal tax credits that were eliminated in the One Big Beautiful Bill Act and how people across the U.S. can still take advantage of these credits to electrify their homes before they expire in December.
Regarding California Governor Gavin Newsom’s executive order exempting homeowners rebuilding after Los Angeles’ January wildfires from the 2025 building code, BDC’s Beckie Menten said that "Waiving building codes is like waiving seatbelts or air bags to build cars faster… We can't sacrifice Californians' safety in the process of rebuilding."
POLICY UPDATES
Each month, BDC summarizes key building decarbonization policy-related news from the states in which we work. For more details on policy-related news in each state, visit the state’s policy update web page by clicking the 'Learn More' button beneath the state’s summary.
California
California’s gas utilities published maps showing their upcoming pipeline replacement projects, enabling the California Public Utility Commission to begin using these maps to identify priority zones for neighborhood-scale decarbonization pilot projects. The California Energy Commission will host a remote workshop on Friday, August 8, at 9 a.m. to solicit feedback from stakeholders on the development of California’s Home Efficiency Rebates (HOMES) Pay for Performance (P4P) Program. California’s State Assemblymembers and Senators have returned to their home districts for the Legislature's annual Summer Recess, and will not reconvene until August 18.
Following a settlement between Xcel Energy and most of the parties in its thermal energy networks (TENs) pilot project application proceeding, the Colorado Public Utilities Commission approved the selection of South Frisco and Ruby Hill as locations for TEN pilot projects. In addition, the Denver Regional Council of Governments decided to recommend to Colorado’s Department of Regulatory Agencies that HVAC contractor licensing no longer take place at the local level, but instead at the state level, making it easier for contractors to secure the licenses they need to install heat pumps and do other work.
Staff at Illinois Commerce Commission (ICC) included several thermal energy network project proposals on the short-list of decarbonization pilot projects it has developed as part of the state’s Future of Gas proceeding. The final list of Future of Gas pilot project proposals selected for future development will be released by the ICC this fall.
Governor Wes Moore signed the Valuing Opportunity, Inclusion, and Community Equity order, an executive order establishing a more unified approach to promoting environmental justice in Maryland. This order will help foster a whole-of-government approach for engaging with communities that have historically borne a disproportionate burden from environmental pollution—helping ensure that the state’s innovative clean heat standard and zero-emission heating equipment standard policies uplift neighborhoods that have traditionally been left behind.
The Minnesota Department of Commerce selected a joint proposal from BDC, Buro Happold, Slipstream, and Thermal Energy Insights to develop a study assessing the feasibility of building Thermal Energy Networks (TENs) in the state. The Minnesota Public Utilities Commission’s (PUC’s) TENs working group delivered recommendations on how the Minnesota legislature can eliminate statutory barriers to the development of TENs in the state. The PUC will summarize these recommendations and deliver them to the Minnesota legislature by the end of 2025.
The New York State Fire Prevention and Building Code Council approved an update to the state’s Building Code that implements the All Electric Buildings Act (AEBA) of 2023, making New York the first state in the nation to have a statewide energy code that does not allow fossil fuel connections for new construction. The New York State Energy Planning Board released a draft State Energy Plan for public review and feedback. This plan will assess how New York can meet its energy needs through 2040 while implementing the state’s Climate Action Council Scoping Plan. Four utilities filed final engineering plans and customer protection plans for eight pilot projects in the Public Service Commission’s Utility Thermal Energy Network and Jobs Act (UTENJA) docket.
Furthering our commitment to knowledge sharing, we are excited to continue our ‘Report Roundup’ segment, which highlights insightful reports from other organizations in the building decarbonization movement.
Comparing Massachusetts’ current electric rate and the Department of Public Utilities-approved heat pump rate with a proposed deeper seasonal discount rate, this report finds that the proposed rate would improve savings for most homes that switch to heat pumps, with 82% of these homes saving on their winter energy bills, and a median savings of $687. Other states may consider implementing a heat pump rate to encourage heat pump adoption.
Beyond the Building: Strengthening Neighborhood Resilience Through Energy Efficiency Programs American Council for an Energy-Efficient Economy, July 2025 This report analyzes an area in Westchester County, New York, to understand the resilience benefits of coordinating retrofit solutions (such as pairing building envelope measures with heat pump upgrades at the neighborhood scale) and uncovers that this approach avoids exacerbating grid vulnerabilities and helps maintain reliable power. It also recommends steps for regulators, program administrators, and policymakers to take to further integrate resilience impacts into cost-benefit analyses.
Transforming the Housing Sector with Green Industrial Policy Climate & Community Institute, July 2025 To ensure affordable, decarbonized, and climate-resilient housing, this report recommends a new approach called green industrial policy, which aims to coordinate market actors, such as labor, capital providers, and utilities, and shape industrial change to provide affordable decarbonization upgrades to a wide range of homes quickly and effectively.
FROM OUR FRIENDS
Lawrence Berkeley National Lab Have experience with residential electrical panels or service upgrades? Lawrence Berkeley National Lab is seeking input from contractors, engineers, utility staff, and building department professionals to help reduce the costs and challenges of residential electrical work. Complete this short, 20-minute survey by August 31 for a chance to receive a $25 eGift card. Click here to participate.
Copper Curious about cooking on Copper’s induction stove, Charlie? Join chefs Lisa Pinckney and April Dodd on August 6 (that’s tomorrow!) for Cook with Confidence: Making the Switch to Induction, a 30-minute webinar hosted by Copper, featuring live demos, expert tips, and answers to your questions about making the most of Charlie. Register here to attend live or receive the recording.
