February is upon us, and while the clairvoyant groundhog has predicted winter will linger on in 2025, I'm finding warmth in “The Land of Enchantment” this week, where a fresh new season has begun for our movement.
In New Mexico, more than 20 stakeholders from around the state – from government agencies, to utilities, to businesses, and nonprofits – have come together to lay out their collective recommendations to eliminate greenhouse gas emissions and pollution. You can read the New Mexico Building Decarbonization Roadmap here.
Though it’s just a starting point, the Roadmap stands as a shared commitment to creating safer, more affordable, and energy-efficient living spaces for all New Mexicans. It’s also a reminder that building decarbonization leadership continues to be strongly expressed at the state level.
The result of a year-long process that BDC sponsored, the Roadmap reflects a collective expression of stakeholder policy recommendations to accelerate the elimination of greenhouse gas emissions from the state’s residential and small commercial buildings by 2050. The aim of the Roadmap is to create affordable, comfortable, healthy, efficient, and resilient homes for all New Mexicans, prioritizing low-income, disadvantaged, and Tribal communities.
Join us on February 25th for BDC’s national policy call featuring Maryland. Hosted by BDC’s Brian Jenkins, Senior Regional Manager, Mid-Atlantic, this call will dive into the landscape of Maryland’s building decarbonization policy. Panelists Lauren Urbanek of Baltimore Gas & Electric, Mark Stewart of the Maryland Department of the Environment, and Ashita Gona of RMI will offer insights and lessons learned from Maryland's efforts to decarbonize its buildings that will benefit advocates and stakeholders across the U.S.
We invite you to join us for our monthly discussion of building decarbonization policy in California! 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.
6 Smart Cities Trends to Watch in 2025 Smart Cities Dive Building decarbonization is cited as a trend to watch in 2025, with BDC’s Panama Bartholomy quoted saying that state and local governments will increasingly implement “building codes 2.0” rules that drive building electrification without being subject to lawsuits related to the Berkeley decision preventing governments from banning the use of natural gas in buildings.
Trump’s Executive Orders Aside, It’s Full Steam Ahead for New York’s Sustainable Infrastructure Projects City & State Lisa Dix, BDC’s New York Director, joined Rick Cotton, Executive Director of the Port Authority of New York and New Jersey, Jamie Torres-Springer, President of the Metropolitan Transportation Authority Construction & Development, and other speakers at City and State’s 2025 Most Significant Infrastructure Projects Summit, where they provided an optimistic view on the development of thermal energy networks and other New York sustainable infrastructure projects.
Heat Pumps Keep Widening Their Lead on Gas Furnaces Canary Media Heat pump sales continue to rise in the U.S., thanks to advances in heat pump technology, growing contractor and consumer familiarity with the technology, and state and local heat pump policies. As BDC’s Market Intelligence Manager, Kevin Carbonnier, notes, these rising sales have made the U.S. a leader in the global transition from oil and gas heating to heat pumps.
Talking Decarbonization with Panama Bartholomy of the BDC LG Pro Cast BDC Executive Director Panama Bartholomy joined LG Pro Cast host Phillip Kriegbaum for a wide-ranging discussion on heat pumps. They examined how the heat pump industry is helping reduce building pollution and the role contractors and heat pump manufacturers can play in shaping an electric future for heat in the United States.
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.
Opportunities for Integrating Electric and Gas Planning Lawrence Berkeley National Lab, January 2025 Currently, processes for planning electricity and gas delivery are largely siloed. This report explores the current state of electric and gas system planning and the benefits and challenges of integrating these planning processes. It also identifies four characteristics of integrated planning and presents indicators that can be used to track progress toward achieving these characteristics.
Insight Brief: Thermal Energy Networks for Utility Carbon Reduction Smart Electric Power Alliance, December 2024 Concerns about peak electric loads and business risks for utilities have led policymakers to explore thermal energy networks (TENs) as a decarbonization solution for heating and cooling. SEPA conducted a study to assess TENs’ potential as a utility decarbonization strategy.
Policy Updates
California
Announcing the Heat Pump Access Act (SB 282): California State Senator Scott Wiener (D- San Francisco) has partnered with BDC, the San Francisco Bay Area Urban Planning and Research Association (SPUR), and the Bay Area Air District to introduce a new bill that will standardize heat pump permitting to help make heat pump installations faster, simpler, and more affordable for homeowners and contractors while supporting California in achieving its heat pump and climate targets.
Rebuilding LA: Governor Newsom and the Legislature mobilized quickly to allocate resources to help Los Angeles rebuild after several devastating and ongoing wildfires. Governor Newsom signed a $2.5 billion package on January 23 to support disaster response, emergency management, and rebuilding efforts.
2025 Legislative Deadlines and Limits: For this 2025-2026 two-year session, legislative leadership has changed the total number of bills a single member can introduce from 50 to 35 each in the Assembly and 40 in the Senate. Legislators have until February 21 to introduce new bills this year.
Gas-Only Utility Required to Support Electrification: The Colorado Public Utilities Commission concluded deliberations on Black Hills Colorado Gas’ first Clean Heat Plan, marking one of the first times in the nation in which a gas-only utility will be required to support electrification for all of its customers.
Colorado Labor Advancing Decarbonization: A group of labor unions representing hundreds of thousands of workers formed Climate Jobs Colorado, a union-led organization dedicated to creating an environmentally sustainable and resilient economy powered by strong union jobs. Working with researchers from the Climate Jobs Institute at Cornell University’s ILR School, the coalition released “Colorado’s Clean Energy Jobs Path,” outlining recommendations to position the state as a national leader in decarbonization.
Communities Initiating Neighborhood Scale Decarbonization Pilots: Colorado Senate Bill 24-1370, Reduce Cost of Use of Natural Gas, establishes a process for local governments in Xcel Energy’s gas service territory to explore neighborhood-scale decarbonization projects. In late January, the Colorado Energy Office closed the request for information to identify up to five eligible communities to participate as gas planning pilot communities.
TENs Bill Submitted: A thermal energy networks pilot bill was submitted to the Illinois Legislative Review Board in January. The bill will mandate that utilities develop at least 1 and up to 3 utility-scale networked geothermal pilots in their Illinois service areas. Advocates are optimistic that the bill will pass thanks to support for the bill from labor and several gas utilities.
Maryland
Ratepayer Protection Act Advances: New legislation aims to reform the Strategic Infrastructure Development and Enhancement Plan (STRIDE program) that has led to soaring gas utility bills, with gas customers seeing delivery rates triple since 2010. The bill would require utilities to ensure their gas infrastructure spending is cost-effective and for them to consider non-pipeline alternatives to gas infrastructure projects.
Legislature Tackles Grid Reliability Crisis: Maryland lawmakers are responding to PJM's agreement to keep 2 GW of coal and oil generation online through 2029 at Brandon Shores and H.A. Wagner plants with multiple bills addressing transmission upgrades and accelerated clean energy deployment, including the New Generation Energy Act to reduce out-of-state energy dependence and the Renewable Energy Certainty Act to streamline clean energy project approvals.
Clean Energy Goals Face Grid Hurdles: Maryland's ambitious Climate Solutions Now Act targets of 60% emissions reduction by 2031 and net-zero by 2045 are being challenged by interconnection delays and transmission constraints, prompting the Maryland legislature to consider how the state can modernize its electric grid. The Resource Adequacy and Planning Act would create an independent office within PSC to improve state-level energy planning and reduce reliance on PJM for forecasting.
Thermal Energy Network Bill Introduced: Senator Cynthia Stone Creem (D-Norfolk and Middlesex) introduced Bill SD.1924, “An Act relative to a tactical transition to affordable, clean thermal energy.” The bill requires electric and gas utilities in shared service areas to submit a joint plan outlining which gas infrastructure can be retired and replaced with TENs or other electrification options. This would help transition TENs from pilot projects to a long-term solution.
Minnesota
Public Utilities Commission To Take Up Line Extension Allowances (LEAs): In a January Notice determining the scope and timeline of Minnesota’s long-delayed Future of Gas Docket, the Commission outlined next steps and a plan to evaluate the role LEAs play in achieving gas system emissions reductions and opportunities for policy changes to align greenhouse gas (GHG) reduction goals and the policy.
Minnesota House Threatens Stall Till March: A tie between House Democrats and Republicans in the November election has led to a stalemate of power in the Minnesota House. With prospects for a power-sharing agreement between Democrats and Republicans unlikely, the hope for any significant legislative action remains dim until March, when a newly elected Democrat can be seated.
BPU Launches Comprehensive Clean Energy Tool: The New Jersey Board of Public Utilities (BPU) unveiled "Find A Program," a new online platform helping stakeholders navigate available clean energy and efficiency programs, including building decarbonization initiatives, appliance rebates, and benchmarking support.
DER Market Integration Takes Shape: The BPU held an important Technical Conference on Distributed Energy Resources (DERs), examining how New Jersey can implement FERC Order 2222 - a landmark federal rule enabling smaller clean energy resources like rooftop solar, batteries, and smart thermostats to participate in wholesale electricity markets - by removing barriers for DER participation in wholesale markets while ensuring grid reliability.
Energy Efficiency Gains Market Recognition: Stakeholders are advocating for energy efficiency to be recognized as a DER aggregator, potentially expanding opportunities for building decarbonization programs to participate in wholesale electricity markets and support grid reliability.
Governor Hochul Unveils Executive Budget: Governor Hochul’s Executive Budget for FY 2026 includes a climate investment commitment of one billion dollars over five years for the decarbonization of SUNY campuses through the adoption of thermal energy networks and other clean energy systems.
Lobbying for NY HEAT Continues: BDC continues to advocate for the NY HEAT Act, which will help New York plan for an affordable, equitable transition to clean heating and cooling, unlock neighborhood-scale transition, and save utility customers money.
Launch of New Yorkers for Clean Air: BDC joined this newly formed coalition to raise awareness about the benefits of the New York Cap and Invest program, despite Governor Hochul’s abrupt pause on this program.
Governor Unveils "Lightning Plan" for Energy Development: Shapiro announced a comprehensive energy plan that includes fast-track permitting through a new Pennsylvania Reliable Energy Siting and Electric Transition (RESET) Board, tax credits up to $100M for power generation facilities, and incentives for hydrogen and sustainable aviation fuel projects. The plan aims to accelerate energy infrastructure development while lowering consumer costs.
PJM Price Cap Agreement Implemented: Following Governor Shapiro's December complaint to FERC, an agreement has been reached to cap capacity auction prices between $175-$325/MW-day through 2028. The agreement, which is also supported by other PJM states like Delaware, Illinois, Maryland, and New Jersey, is projected to save consumers $21 billion over two years.
Electric Bill Reform Under Review: The Consumer Protection Committee held a public hearing examining electric bill components and consumer protection measures under Act 129, demonstrating ongoing legislative attention to energy affordability and transparency.
Permanent Thermal Energy Network Bill Introduced: Rep. Alex Ramel (D-Bellingham) introduced a bill (HB 1514) to establish the regulatory environment for TENs.
Puget Sound Energy Announces Electrification Findings: PSE presented the results of its pilot program to encourage its gas utility customers to electrify via a public webinar. The results showed that adding cooling in the summer was the top reason customers installed a heat pump, replacing gas furnaces with heat pumps reduced overall energy use by 30% on average, and program participants reduced their CO2 emissions by 19.7%.
