Hello Fellow Decarbonizers,

It’s September, kids are back in school, Q4 is around the corner, and somehow California’s legislature is stilllll in session. Keep up the good work, California friends!

Today, I’m thrilled to share BDC’s newest brief, The End of Gas System Subsidies, which explores gas line extension allowances (LEAs) and makes a case for moving toward a single, modern energy system rather than continuing to subsidize two. Utilities in six states, including OR, WA, MN, CA, CO, and NY (pending the governor’s signature), have already moved in this direction, with six more states and DC actively considering it. 

In essence, the brief is about affordability, of which electrification has proved to be a cornerstone. You can read it here, and expect lots more from us in this area in the coming months.

Lastly, federal incentives for heat pumps remain available through December 31st. Let’s spread the word and let everyone know why we ❤️ heat pumps.

Yours in Decarbonizing,

Panama

READ OUR LATEST RESEARCH BRIEF

The End of Gas System Subsidies

Why Gas Line Extension Allowances No Longer Serve Us

Utility customers across the United States could save up to $7 billion annually if policymakers act now to reform gas line extension allowances (LEAs), which are subsidies that cover some or all of the costs associated with connecting a new building to the gas system. In the past three years, LEAs have been reformed or removed completely in six states, while six more and D.C. are considering removing them. 

BDC’s new policy brief offers an overview of the current LEA landscape in the U.S. and recommendations for reforming outdated policies that promote the growth of gas consumption and emissions. It also discusses the benefits and risks of these different venues for reform and offers an overview of where existing gas subsidies remain in place in order to direct future reform efforts.

EVENTS THIS MONTH

BDC California Policy Call

When: September 16, 2025, 1 p.m. ET / 10 a.m. PT

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.

Cash In On Clean Energy

When: September 29, 2025, 8:30 a.m. ET

Where: Baltimore, MD

This half-day event is designed to equip Maryland contractors with:

• The latest innovations in heat pump and electric heating technologies
• A clear understanding of state and utility incentives available to support your work
• Insights into Maryland’s upcoming Clean Heat Standard
• A platform to share your input directly with state leaders
• Networking opportunities with energy agencies, manufacturers, and fellow contractors

IN THE NEWS

Massachusetts Seeks to End Ratepayer-Funded Subsidy for New Natural Gas Connections

Inside Climate News
According to BDC’s Kristin George Bagdanov, Massachusetts is one of six other states that, along with the District of Columbia, are now considering or are in the process of adopting similar measures, while utilities in six other states have already adopted these measures.

Thinking about a heat pump? Some things to know about choosing what’s best for you

The Associated Press
BDC’s Executive Director, Panama Bartholomy, explains how heat pumps do the work of both a gas furnace and a central air conditioner, while BDC’s Senior Technical Lead, Ted Tiffany, describes how ground-source heat pumps use the earth’s steady temperature to more efficiently heat and cool buildings than other types of heat pumps.

Opinion: Transforming Pennsylvania’s energy future by reforming Act 129

The Morning Call
BDC’s Mid-Atlantic Senior Regional Manager, Brian Jenkins, writes that Pennsylvania should update its energy efficiency law, Act 129, so that it supports heat pump adoption, improves homes with health and safety issues, and requires utilities to maximize their investment in energy efficiency measures. Doing so will deliver Pennsylvanians more energy savings, create new HVAC jobs, and make the state’s homes safer, healthier, and more comfortable.

What Drillers Need to Know about Thermal Energy Network Policy in 2025

The Driller
In the world of geothermal heat pumps, state and federal policy in 2025 favored thermal energy networks (TENs) over house-by-house decarbonization incentives. In this op-ed, BDC’s Associate Director of Thermal Networks, Ania Camargo Cortés, and TENs Research and Communications Manager, Jess Silber-Byrne, share notable policy advances in 2025, and propose a growing partnership with geothermal drillers to shape policy that reflects the skills of the drilling profession and sustains neighborhood-scale decarbonization opportunities. 

Increasing amount of homeowners affected by January fires want to go all-electric

Spectrum News 
After the January wildfires, more Los Angeles homeowners are rebuilding all-electric, citing healthier air, lower costs, and improved safety. These decisions reflect recommendations from LA County’s Blue Ribbon Commission. "In LA, where homes and buildings generate more than 40% of the climate pollution, it’s really important that we’re able to build all-electric here," BDC’s Robin Tung told Spectrum News.

A Geothermal Network in Colorado Could Help A Rural Town Diversify Its Economy
Inside Climate News
Facing an economic crisis from the closure of a coal-fired power plant, the town of Hayden, Colorado, plans to attract new investment by developing a business park, which will be affordably heated and cooled by a municipally-owned geothermal network. BDC’s Jess Silber-Byrne joined elected officials, advocates, community members, and workers to witness geothermal drilling in action at the future Northwest Colorado Business Park.

Turning Data Centers Into Community Assets With Thermal Energy Networks

FacilitiesNet 
Instead of draining local resources, data centers connected to thermal energy networks (TENs) can supply clean heat to entire neighborhoods. This approach transforms data centers from energy consumers into energy contributors, while reducing stress on the grid and removing fossil fuels from neighboring homes. BDC’s Associate Manager, Thermal Energy Networks, Ashley Besic, lays out the opportunity for policymakers and officials to attract responsible data center investment with TENs.

Should I Get a Portable Induction Cooktop?

The New York Times
Portable induction cooktops get your pasta water boiling in half the time of a professional gas range, while also doing a much better job of ensuring your pasta pot handles stay cool, says BDC’s Senior Culinary Events & Experiences Lead, Rachelle Boucher. These advantages, along with their other cooking, health, and climate benefits, are why she calls portable induction cooktops “a small but mighty tool.” 

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

The California Legislature is considering several major energy policies ahead of its September 12 adjournment, including energy affordability measures as well as reauthorization of the state’s Cap-and-Invest program and future revenue allocations. Also, the Los Angeles Department of Water and Power has launched its High-performance, Optimized, Modern Electrification for Los Angeles (HOME LA) incentive program to provide financial assistance for wildfire-impacted families rebuilding all-electric homes. In addition, on September 22, the California Public Utilities Commission will host a workshop to review interim actions for implementing Senate Bill 1221’s neighborhood-scale decarbonization pilot projects.

Illinois

Illinois legislators are preparing to take up a power sector omnibus bill this fall that is expected to include financing authority for TENs through the Illinois Climate Bank. To highlight how Illinois has a workforce ready to develop TENs, and TENs' ability to deliver climate-friendly, highly efficient, and affordable heating and cooling to entire neighborhoods, BDC is hosting a legislative tour of Local 150’s William E. Dugan Training Center geothermal training facility in Wilmington, Illinois—the only one of its kind in the nation. 

Maryland

In August, the Public Service Commission initiated formal proceedings to reform gas utility planning practices, and the Maryland Energy Administration launched a $6.8 million grant program aimed at community building electrification. Additionally, the state's Mitigation Working Group finalized recommendations for a comprehensive roadmap to transform the heat pump market. These developments demonstrate Maryland's ongoing leadership in transitioning to clean and affordable heating and cooling solutions.

New York

BDC is preparing to file comments on New York’s draft State Energy Plan (SEP) and working with advocacy partners to highlight the need for the Plan to provide all New York residents with an effective, safe, and equitable transition to clean heating and cooling. Utilities participating in the NYS Clean Heat (heat pump incentive) program have filed new implementation plans for the program, and BDC will review and file comments on these plans with the Public Service Commission (PSC). The PSC is also seeking feedback on the eight Utility Thermal Energy Network (UTEN) pilot project engineering plans that utilities have filed with the PSC. BDC is drafting its comments on these plans and will be hosting a briefing for legislators on the downstate UTEN projects on September 19.

REPORT ROUNDUP

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.

Integrating Equity into Building Performance Standards
Institute for Market Transformation, August 2025
Expanding on existing Building Performance Standard (BPS) reports, this report focuses on BPS policies and complementary programs adopted as of 2025 that attempt to incorporate equity. Equity provisions highlighted in the report include equity-priority buildings, financing, tenant protections, and the workforce.

Decarbonizing Space Heating in Existing Centrally Heated Multifamily Buildings
American Council for an Energy-Efficient Economy, July 2025
Large multifamily buildings with central heating systems are among the hardest to decarbonize, and this report identifies that, in most cases, window-mounted, mini-split, and central air-to-water heat pumps may be the most cost-effective way to decarbonize these buildings. To further complement decarbonizing these large buildings, policymakers and regulators should expand energy efficiency measures, such as improving insulation.

Impacts of Household Electrification on Energy Affordability in Los Angeles
UCLA, August 2025
This report identifies scenarios where electrification will save households money on their energy bills in Los Angeles and provides five recommendations on how decision-makers can support energy affordability through electrification. A key finding is that most electrification upgrades lead to ongoing energy savings and may cut some households’ bills in half, while staying on gas often leads to higher energy spending.

FROM OUR FRIENDS

American Culinary Federation
Thanks to the efforts of BDC Chefluencer Christopher Galarza, the American Culinary Federation (ACF) has launched a new EcoChef Culinarian Accreditation course. The 30-hour self-paced course equips culinary professionals with the knowledge and tools they need to lead the Green Industrial Revolution in hospitality. To learn more and sign up for the course, visit the Specialized Certificate: EcoChef course page on the ACF’s website.

Electrify Now
Organized by Electrify Now, Clean Air Week will take place this year from September 21–27. Clean Air Week will feature multiple events focused on the dangers of fossil gas pollution and the technologies and policies that consumers and communities can use to clean the air we breathe. To learn more and register for these events, visit the Clean Air Week website.

US Heat Pump Summit
Designed to provide valuable information to plumbing and HVAC contractors working with heat pumps, this year’s US Heat Pump Summit is scheduled to take place from November 18–19 in Worcester, MA. Visit the Summit’s website to learn more and register!