Hello Fellow Decarbonizers,

I’m still buzzing with inspiration after our BDC all-staff retreat in Zion National Park last month. The location was a perfect backdrop for meaningful discussion and strategic planning that will guide our work to equitably advance the decarbonization movement in the coming months and years.

Neighborhood Scale Building Decarbonization continues to be a strategic focus for us, and we are thrilled to see how fast the movement is adopting it. This summer in California alone we’ve seen a CEC report highlighting cost benefits, the state moving SB1221 a bit closer to the finish line, and a poll showing consumer excitement for neighborhood scale solutions. Elsewhere, communities in Colorado continue to explore thermal energy networks, while the Pipeline Safety Division of the Massachusetts Department of Public Utilities released guidelines for networked geothermal projects.

To top it off this month we're excited to announce the release of Building Decarbonization Meets Water Conservation: The Potential of Thermal Energy Networks to Cool Buildings & Save Water. It is a short and insightful brief on how thermal energy networks (TENs) can help save water - something especially important when we consider our warming and drought prone regions. BDC will host an engaging discussion on this topic on Aug 29th, so please mark your calendars.   

Yours in decarbonizing, 
Panama

BDC Presents - Building Decarbonization Meets Water Conservation

August 29, 2024 at 10 am PT / 1 pm ET

Join us to discover how thermal energy networks (TENs) combine building decarbonization with water conservation. BDC’s Ashley Besic will unveil findings from our new brief, Building Decarbonization Meets Water Conservation: The Potential of Thermal Energy Networks to Cool Buildings & Save Water. As heat waves increase and droughts persist, more buildings need to stay cool for longer periods of time. You’ll learn how TENs can save millions of gallons of water compared to water-intensive evaporative cooling systems - and why now is the perfect moment to deploy them widely.

California Policy Call

August 20, 2024 at 10 am PT / 1 pm ET

National Policy Call

October 8, 2024 at 10 am PT / 1 pm ET 

After the passage of the historic Utility Thermal Energy Network and Jobs Act (UTENJA) in 2022, New York became the first state in the nation to create a pathway for gas utilities to operate as thermal utilities, decarbonizing buildings by installing pipes for thermal energy networks instead of gas. Today, advocates are working to shape the implementation of several neighborhood-scale, utility-led pilot projects that will help transition communities to clean heating and cooling infrastructure.  

Join us as we explore the progress New York is making on the development of utility and non-utility zero-emission clean heating and cooling projects, and the opportunities and challenges that lie ahead for New York’s neighborhood-scale transition off of the methane gas system. 

Building Decarbonization Meets Water Conservation: The Potential of Thermal Energy Networks to Cool Buildings & Save Water

Water conservation and building decarbonization don’t have to be tackled separately. BDC analyzed water-savings data from ten thermal energy networks (TENs) across the U.S. and Canada, revealing significant savings: just eight sites reported a collective annual savings of 337 million gallons, equivalent to the average annual water use of 3,000 U.S. households. 

Furthering our commitment to knowledge sharing, we are excited to continue our seasonal ‘Report Roundup’ segment to highlight insightful reports from other organizations across the building decarbonization movement and share the latest developments, best practices, and strategies. 

A Comparison of Clean Heat Standards: Current Progress and Key Elements Environmental Defense Fund, February 2024
This report defines and summarizes Clean Heat Standards (CHS), an emerging policy for reducing the emissions of the thermal sector through a performance standard that requires thermal fossil fuel suppliers and other obligated parties to deliver heat via a steadily increasing proportion of decarbonized and low-carbon pathways.The report analyzes Clean Heat Standards in Colorado, Vermont, Maryland, and Massachusetts and outlines the questions and considerations that other states should take into account when designing a CHS. 

Equitable Funding Mechanisms for Climate Action in Minneapolis

Institute for Market Transformation, April 2024
This report identifies two mechanisms for generating funds for equitable climate action and a just transition in Minneapolis: Pollution Control Annual Registration (PCAR) fees and utility Franchise Fees (FF). Though these two funding mechanisms are important, the report also highlights strategies to mitigate inequity on a city level which can be tailored and implemented in other cities.

The Burden of Natural Gas Leaks on Public Sector Emergency Response in the United States

PSE Healthy Energy, July 2024

Analyzing 15 years of gas leak-coded incidents (2003-2018), this report estimates that uncombusted gas leaks conservatively cost U.S. fire departments $564 million in 2018. Following the analysis, it provides recommendations including incorporating these costs into cost-benefit analysis and coordination between emergency response and gas utilities. This report offers further proof that methane gas infrastructure has an outsized social cost that must be accounted for when weighing the costs and benefits of decarbonization against the status quo. 

Avoiding Gas Distribution Pipeline Replacement Through Targeted Electrification in California

E3 for NRDC, June 2024
As California transitions to all-electric appliances, which is the most cost-effective way to reduce pollution from our buildings, state leaders face a pivotal choice: Keep pouring billions into new gas infrastructure that is likely to be underutilized or realign our spending with the clean energy transition. This new analysis shows targeted electrification could save Californians more than $20 billion in gas pipeline costs by 2045 while tackling climate emissions.

The Switch Is On is a consumer inspiration initiative powered by the Building Decarbonization Coalition to educate, inspire, and make switching to electric appliances easier.

The Switch Is On is excited to launch a new resource dedicated to all-electric living in newly built homes, in partnership with the California Electric Homes Program. Visit The Switch Is On All Electric Homes to download our free ebook, "A Homebuyer's Guide to All-Electric Living in a Newly Built Home." 

Subscribe to The Switch Is On YouTube channel to find many shareable videos; from contractors espousing heat pumps, to homeowner tours, to customer testimonials. 

California

CA Budget Updates: Final Budget

• Governor Newsom and the Legislature agreed on a 2024-25 state budget on June 22, and released budget trailer bills, “Budget Bill Jrs,” SB 108 and SB 109. California’s final enacted budget can be found at this link.
• The FY 24-25 budget has been finalized, however there are still budget trailer bills that clarify budget language working their way through the Legislature. BDC will be keeping a close eye for any trailer bill language that may impact building decarbonization or related energy programs. 

Key Sacramento Deadlines:

• August 5th – Legislature reconvenes from Summer Recess.
• August 16th – Last day for fiscal committees to meet and report bills (Appropriations hearings will all have finished by this date). 
• August 19th – Floor session only. 
  August 23rd – Last day to amend bills on the Floor.
• August 31st – Last day for each house to pass bills. Final recess begins upon adjournment. 
• September 30th – Last day for the Governor to sign or veto bills passed by the Legislature before September 1st and in the Governor's possession on or after September 1st.

Colorado

Community Pollution Reduction Grants: The EPA announced CPRG awards on July 22, 2024, and explained that implementation will begin in October of 2024. Colorado received “unprecedented” funding for building decarbonization.

• The State of Colorado received an award of approximately $139M. In the application, Colorado emphasized the importance of building decarbonization and the potential of TENs to help achieve these goals. The award will support energy efficiency and electrification upgrades in commercial buildings and allow the Colorado Energy Office to distribute subawards and technical support to local governments to implement projects that reduce GHG emissions across several sectors including buildings, transportation, electric power, waste and materials management, and land-use. 
• The Denver Regional Council of Governments received an award of approximately $200M. In its application, the coalition stated its intention to provide funding to geothermal systems. The measures include a) providing free home retrofits and upgrade services for low-income and disadvantaged populations, b) offering free energy advising to residential, multifamily, and commercial building owners, c) providing rebates and incentives to accelerate the adoption of energy efficiency and electrification, and d) establishing a building policy collaborative to advance ambitious building policies at the local level.   

Massachusetts

Massachusetts: DPU Establishes Network Geothermal Guidelines. In July, the Pipeline Safety Division of the Massachusetts Department of Public Utilities released guidelines for networked geothermal projects. This formalizes the process for gas utilities and their workers to transition from working on methane gas pipes to safely, reliably, and equitably installing and maintaining geothermal pipes—a key milestone in the Commonwealth’s decarbonization journey. 

New York

Utility Thermal Energy Networks:

The Public Service Commission adopted an initial set of rules in the Utility Thermal Energy Network and Jobs Act Docket.

• These rules represent a major step forward toward the creation of a thermal energy network regulatory framework for New York that will foster competition, protect workers, and ensure market fairness.
• BDC and other members of the UpgradeNY collaboration released this statement applauding the New York Public Service Commission for adopting these initial Utility Thermal Energy Network rules. 

New York State Building Code:

The NYS Fire Prevention and Building Code Council published a notice of rule in development of proposed amendments to Part 1229 and Part 1240 of the state’s Building Code.

• These amendments would fully implement the All Electric Buildings Act of 2023 – a first-of-its-kind statewide mandate to achieve zero-emissions in new buildings beginning in 2026 – by including the requirements as part of the ongoing Building Code update.

• BDC testified at the hearing to offer support for these amendments and encourage additional amendments to the Building Code to implement NYS' Climate Law and the Advanced Codes and Standards Act of 2022.

Northeast Region

A coalition of five states in New England secured $450 million in federal funding to launch a new heat pump accelerator program to drive down consumer costs with new incentives and education initiatives for heat pump installers and distributors. The states include Connecticut, Maine, Massachusetts, New Hampshire and Rhode Island. 

Healey-Driscoll Administration Celebrates $450 Million EPA Award to Rapidly Accelerate Adoption of Heat Pumps. Mass.gov

Oregon

GHG Program V. 2.0: Oregon's long-awaited reboot of the 2021 Climate Protection Program is out for public comment. The original program was struck down following a successful gas industry lawsuit. The Oregon Department of Environmental Quality gave the public until Friday, August 30 to comment on the draft rules.

Community Pollution Reduction Grants:

• The Nez Perce Tribe received $38M (Oregon and Idaho). The buildings portion of the application focused on residential energy efficiency retrofits.
• Oregon Department of Environmental Quality received ~$200M. 

Rental Heat Pump Program: Oregon opened the rental heat pump program again, and again the program quickly spent the funds ($4M) and is no longer accepting applications. 

Washington

Navigator Proviso $3.5M Funding: BDC and Shift Zero coalition are exploring a joint application for the proviso funding to expand the Switch Is On and increase Shift Zero staffing (~1-2 FTE). The RFP is expected this fall, with a decision in January 2025. Additionally, we are meeting with the Department of Commerce to introduce the Switch Is On team and opportunities for state-wide engagement. 

Anti-Decarbonization Ballot Initiative: The Secretary of State certified Initiative 2066, so it will be on the November ballot alongside I-2117 representing a broad attack on climate progress in Washington.

• I-2066 is exceptionally far reaching and seeks to repeal or undermine virtually every aspect of decarbonization. It would have significant impacts on Washington’s nation-leading energy code, building emission performance standards, local efforts that support building electrification, and would repeal key pieces of HB 1589 that enable Puget Sound Energy to plan for decarbonization and affordability.
• A campaign opposing 2066 is currently being established, including many Shift Zero members, and efforts to develop the messaging strategy are in progress. 
• If it does pass, I-2066 will be challenged on multiple fronts (e.g., unconstitutional infringement on home rule, etc.).

Community Pollution Reduction Grants: The EPA awarded King County ~$50M for its Accelerating Equitable Building Decarb program.