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State & Local Electrification InitiativesCalifornia

In December 2015, Palo Alto City Manager introduced recommendations to approve work plan to evaluate and implement greenhouse gas reduction strategies by reducing natural gas and gasoline use through electrification. The recommendations cited analysis conducted in 2013, updated in 2015, that found compact electric vehicles and heat pump water heaters (HPWH) are currently the most cost-effective electrification measures in Palo Alto homes. Recommendations include promoting HPWH and heat pump space heaters (HPSH) in existing homes, providing resources for homeowners to convert to all-electric homes, explore building code changes for new construction and remodeling projects to expedite electrification, and explore opportunities to electrify existing and new city buildings. Long term recommendations include facilitating electrification of space heating in existing large commercial buildings. The report estimates that accomplishing recommendations will require 1.6 FTE of staff resources and $380,000 of consulting/equipment over the next 2-3 years. Since 2013, Palo Alto has provided 100% carbon neutral electricity and, as of July 1, 2017, 100% carbon neutral natural gas.

AB 3232 , Zero Emissions Buildings and Sources of Heat Energy Act, seeks to require the California Energy Commission, by Jan. 1, 2020, to develop a plan to achieve the goal that the emissions of GHG from the state’s residential and commercial building stock shall be reduced by at least 40% below 1990 levels by Jan. 1, 2030. The bill requires this plan to include cost-effective strategies to reduce emissions from both new and existing residential and nonresidential buildings. The bill requires the commission to revise standards for the program of electrical load management to optimize building energy use in a manner that reduces the emissions of GHG. The bill requires that the commission include in the 2021 edition of integrated energy policy report and all subsequent reports a progress report on achieving the above-stated goals, recommendations to the Legislature on strategies to remedy any performance gaps in achieving those goals, and the emissions of GHG associated with the supply of energy to residential and commercial buildings. Introduced February 2018 and enacted in September 2018.

The 2018 Advanced Energy Rebuild program, a collaboration between PG&E, Sonoma Clean Power and the Bay Area Air Quality Management District, offers an all-electric-ready option to contractors working on the region’s housing recovery following the 2018 California Wildfires. Homeowners in Sonoma and Mendocino counties eligible for the rebuilding program could receive $12,500 as an incentive if they choose to go the all-electric route. Incentives of $6.250 per unit are available for rebuilding projects of secondary units or multi-family housing destroyed in last year’s fires, with additional $5,000 renewable energy bonuses.

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State & Local Electrification Initiatives In March 2019 the City of Carlsbad adopted an ordinance requiring non-gas water

heating equipment (solar or electric) in all new low-rise residential construction.

On July 16, 2019, the Berkeley City Council unanimously voted for an ordinance that will ban natural gas pipelines in many new buildings beginning January 1, 2020. Public support for the legislation was unanimous as well – the measure received support from University of California’s Office of the President, PG&E and the Sierra Club.

San Luis Obispo City Council wants to update the city building code to require all new residential and non-residential buildings to support only electric. Once approved, the ordinance would take effect in San Luis Obispo at the start of 2020. On September 3, 2019 the San Luis Obispo City Council voted 4-1 to move forward with a new energy policy that paves the way for all-electric new buildings. On September 17 however, conflict-of-interest concerns were raised as one of the city council members who initially voted in favor of the ordinance is a partner in an architecture firm that stood to benefit handsomely from the new code. The new law either mandates constructing buildings with all electric power or, alternately, retrofitting gas-powered buildings to electric elsewhere in the city. A third option is to pay an in-lieu fee in the thousands of dollars to help fund retrofits elsewhere in the city that transition from gas to electric. The in-lieu fee would range from $6,013 for a typical single-family residence up to $88,549 for a large office of 54,000 square feet, according to a city council staff report. On April 7, 2020 the SLO City Council will consider adoption of the Clean Energy Choice Program for New Buildings. The program encourages all-electric new-buildings but does not ban natural gas; new buildings can include natural gas by participating in the Carbon Offset Program.

On September 3 the City of San Mateo adopted a reach code ordinance requiring new construction be either all electric or exceed certain efficiency requirements for mixed-fuel buildings.

On September 4, 2019 the Windsor Town Council voted to adopt a new building code requiring new low-rise residential development (single-family homes, detached accessory dwelling units, and multi-family buildings up to three-stories) to be fully-electric.

The Menlo Park city council decided to ban natural gas in all new commercial, industrial, and high rise apartment buildings within the same timeline (starting in January 2020). The decision is expected to be officially introduced on September 10. The ordinance was adopted on September 24. By Jan. 1, 2020, heating systems in all new homes and buildings in the city must run on electricity, and all new commercial, office and industrial buildings, as well as high-rise residences, must rely entirely on electricity, the Menlo Park City Council decided Tuesday night. Although new one- and two-story homes will be allowed to have natural gas stoves, they must be built “electric ready” with the proper

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State & Local Electrification Initiativeswiring to enable all-electric operation in the future. However, the council decided not to make an exception and mandated that all new restaurants and dryers run fully on electricity and that homes are built “electric-ready.” City staff reversed an earlier proposal to offer restaurants an exemption for natural gas cooking appliances after further researching the benefits of electric-run induction stoves. Natural gas stoves, however, will still be allowed in homes because they are overwhelming preferred by residents. Restaurants and commercial business owners will be able to appeal the electric stove requirement to the city’s environmental equality commission, but the standards for an appeal are still being evaluated by city staff.

On September 11, 2019 the Cloverdale City Council referred the consideration of an all-electric reach code to the Planning and Community Development subcommittee for further consideration and study. The city held a builder’s roundtable on October 15 and the next Planning and Community Development subcommittee meeting will be December 17, 2019.

On September 16 Palo Alto City Manager Ed Shikada told city council he hopes to have an update of the city codes ready for the council’s review by November 4, 2019. On November 4 the city council adopted a resolution declaring the City’s intent to mandate all-electric service for new construction effective July 2020. On December 2, city council adopted a reach code creating an all-electric mandate for new low-rise residential construction effective April 2020. Council also noted plans to engage the Utilities Advisory Commission on scalable, cost-effective rebates for retrofitting existing homes to promote more electric utility service.

On September 17, 2019 with a unanimous vote by the 10-member city council and Mayor Sam Liccardo, San Jose became the largest U.S. city so far to ban natural gas in most new residential buildings beginning next year. As expected, the city council adopted new building codes that favor electrification over natural gas during a meeting. The vote also required the council to return next month with an ordinance that would go further by banning natural gas in most new homes. Mayor Liccardo had pushed for the stricter rules in recent days. San Jose’s measure falls short of an outright ban on natural gas in new buildings such as the one passed by nearby Berkeley, California, earlier this year because it would not include high-rise buildings, but the council voted to study whether to include buildings up to seven stories in coming months.

As of September 18, an effort to propose an all-electric reach code in Monte Sereno has stalled. Public opposition to the reach code proposal outnumbered support at the stakeholder meeting held by the city and Silicon Valley Clean Energy on the 18th. See Attachment C.

On September 24, 2019 the Santa Rosa City Council reviewed a proposal to adopt an all-electric reach code for all new residential construction of buildings up to three-stories high. The first reading is expected to occur on November 12, 2019 and the second on

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State & Local Electrification InitiativesNovember 19, 2019. The resolution received unanimous approval in its first reading. The city’s proposal is not a stand alone ordinance but rather modifies the California Energy Code with local amendments.

o On October 22, Sonoma County developer Bill Gallaher challenged the city’s position that the all-electric code is exempt from the state’s stringent environmental review requirements. Gallaher also questioned the sufficiency of the city’s cost-effective analysis.

o At least one mandatory settlement conference on the litigation against Windsor has taken place, and another such meeting with Santa Rosa is set for early February.

A report issued by the San Jose City Council’s transportation and environment committee expects the following cities to require or consider requiring at least all new low-rise residential (LRR) buildings to be all-electric: Albany (date unknown), Oakland (November 5), and Petaluma (October).

On September 24 San Francisco Supervisor Rafael Mandelman introduced an ordinance to make it more costly and difficult for developers to construct buildings with natural gas. Mandelman also announced that he will propose legislation in the next six months that will ban natural gas in all new residential and commercial buildings in San Francisco. Supervisor Vallie Brown also introduced legislation to ban natural gas in all new construction and major renovations of municipal buildings starting Jan. 1, 2020. The legislation that Mandelman proposed Tuesday would require developers to either build with 100 percent electric energy or add extra insulation to walls, more energy-efficient windows and more energy-efficient equipment, such as water heaters and lights.

On September 24 the San Francisco Board of Supervisors board approved an ordinance that requires existing commercial buildings over 50,000 square feet to begin relying on electricity generated from renewable sources. The ordinance requires buildings larger than 500,000 square feet to only use renewable electricity by 2022. By 2024, buildings from 250,000 to 500,000 square feet will be under the same requirements. Buildings 50,000 square feet or larger must meet the requirement by 2030.

On September 24, 2019 the Davis city council passed its reach code which requires higher energy efficiency standards and electrification readiness in mixed fuel buildings.

In October 2019 Marin County began considering efforts to go above and beyond the state building standards. County supervisors expressed interest in eventually banning natural gas altogether. For now, the county requires buildings to have additional energy efficiency if they are built with natural gas appliances. The county’s current ordinance only distinguishes between all-electric and all-gas appliance homes. Recognizing that many builders and homebuyers are reluctant to giving up gas stovetops, the county is now proposing that buildings with natural gas for stovetops and fireplaces only may have fewer energy-efficiency mitigations. The county’s sustainability planner noted that

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State & Local Electrification Initiativeselectrification is still a new topic for builders and homeowners and that phasing out natural gas completely would warrant a separate public process. 

The city of Cupertino expects to have a draft reach code ordinance ready for a first reading by November. City staff delivered a report to the Planning Commission on September 10. The city’s Sustainability Commission discussed proposed reach codes at its October 24 meeting. At that meeting, staff recommended a mostly-electric residential reach code to limit natural gas to only cooking, outdoor, and fireplace use for residential low-rise new construction. The reach codes under consideration in Cupertino and other Silicon Valley cities are focused on new residential, commercial, and multifamily buildings that will be seeking building permits after January 2020. On November 19 City Council held a study session on proposed reach code and expressed overall support for going all electric. On December 17 city council voted to adopt reach codes that prohibit natural gas/propane use entirely and require all-electric appliances. The reach code applies to new low and high-rise residential, mixed-use, hotel, office, and retail construction. Several categories of buildings are excepted from the all-electric requirement, including factories, restaurants, hospitals, laboratories, and “essential facilities.”

On October 14 the Environmental Commission of the city of Los Altos recommended that the full city council vote to adopt building electrification codes that require either all newly-constructed homes be all-electric or mixed-fuel with enhanced efficiency measures. It is expected a reach code ordinance will be introduced on October 22. The ordinance passed on November 11.

o Relatedly the City of Los Altos expects the following cities to take up reach codes (attachment C from the above hyperlink)

Los Altos Hills voted on September 19th to introduce reach codes at an undetermined future date

On October 21 the Gilroy City Council received a staff report on reach codes from city building officials. City Council directed staff not to include the proposed reach codes in the upcoming building code update.

On October 22, San Mateo County Supervisors heard a recommendation from the county manager’s office of sustainability to provide input and direction to staff on any proposed energy reach code and green building code amendment measures in the Unincorporated County areas for the 2019 California Building Standards Code update. The county is considering following Menlo Park’s lead by requiring all-electric new single family and low-rise multifamily buildings with exceptions for natural gas stoves and fireplaces. Pre-wiring for electric appliances is required where natural gas appliances are used. New high rise multifamily and new non-residential buildings would be all-electric under the Menlo Park model. The sustainability officer ultimately recommended officials move forward with putting reach codes in place first and said staff could present information to them at a future meeting on a natural gas ban. Supervisor Dave Pine

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State & Local Electrification Initiativesasked the San Mateo County Counsel’s Office to look into the legality of enacting a natural gas infrastructure ban.

The city of Healdsburg is set to consider three proposed reach codes for newly constructed single-family and low-rise multi-family units on October 24, 2019 following a period of community engagement. The proposals up for consideration include: 1) a mixed fuel reach code; 2) required electrification of space and water heating; or 3) Required all-electric.

On October 22, 2019 the Mountain View City Council approved reach building codes for all new homes effective next year. The prohibition will also come with steep requirements for electric vehicle charging spaces for future residential and commercial development, and a potential ban on wood stoves and outdoor fire pits. The "reach codes," which will go into effect next year, will require all single-family homes, duplexes, multi-unit housing and commercial development to have electric heating, cooling, water heaters and cooking appliances. Though city building staff initially recommended that single-family homes could continue to use gas for cooking appliances and fireplaces, council members rejected the idea. Despite the crackdown on gas stoves, council members agreed to have a special waiver available for commercial kitchens that require natural gas for cooking appliances to prepare dishes that can't be cooked using electric alternatives. A potential ban on wood-burning stoves and outdoor fire pits is tentatively scheduled to come back to the council for approval next year.

On October 23, the Morgan Hill City Council voted to adopt an ordinance that will require all new housing developments that apply for building permits after March 2020 to be entirely electrically powered and heated, with no natural gas hookups. Mayor Rich Constantine opposed the ordinance. The ordinance includes an exception for developments that can prove to the council that not using natural gas infrastructure in the project “is not feasible.”

On October 30 the Hayward Sustainability Committee received a report from the Director of Public Works on proposed reach codes. As proposed the ordinance would require all new low-rise residential buildings to be all-electric. New non-residential buildings may be mixed-fuel but have to meet certain stringent efficiency requirements. The ordinance was scheduled to be voted on at the December 3 City Council meeting but is not listed in the meeting materials.

On November 4 a majority of the Redwood City Council expressed interest in adopting reach codes requiring only electric appliances in new construction, but ultimately held off on a vote until at least the next regular meeting on November 25. Vice Mayor Diane Howard said she’s uncomfortable moving so quickly on reach codes and suggested a year or more of community engagement is necessary. Another councilmember expressed concern over the reliability of California’s electric grid before becoming wholly dependent on it. A majority of councilmembers agreed to exempt restaurants and

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State & Local Electrification Initiativeslaboratories from the potential new rules because their daily operations might not be possible without natural gas. Reach codes also will not apply to remodels of homes. At the November 25 meeting, staff noted they anticipate bringing a proposed reach code before city council on January 13, 2020.

During a discussion of potential reach codes on November 4, the Burlingame City Council expressed a number of reservations with the potential unintended consequences associated with the effort to ban natural gas usage. While no decision was made during the study session, councilmembers signaled they supported the intent of the initiative but would not consider taking action without more thoroughly examining the potential policy. Burlingame officials inched nearer to establishing reach codes at the behest of environmental advocates at its February 18 city council study session. While no decision was made at the meeting, Mayor Emily Beach along with councilmen Michael Brownrigg and Ricardo Ortiz supported the ban but Vice Mayor Ann O’Brien Keighran and Councilwoman Donna Colson maintained reservations. Recognizing the divergent opinions on the proposal, City Manager Lisa Goldman said more deliberation is required and the issue will return for further exploration later

On November 5 the city of Alameda voted to limit natural gas infrastructure for new residential construction on city-owned property. The resolution declares the city’s intent to minimize, and where possible eliminate, natural gas infrastructure associated with newly constructed residential projects on City-owned land. The city council report notes staff does plan to prepare Citywide ordinances that would limit new gas infrastructure in newly constructed buildings and encourage or require “electrification” in existing buildings. However, these ordinances will take some time to prepare and implement. Staff is currently working closely with residential developers throughout Alameda to learn more about the cost implications to housing construction costs of an outright prohibition on the use of gas in all residential structures. In the meantime, staff is encouraging them to limit the use of natural gas infrastructure in their developments.

In November Milpitas recently voted in favor of an electrification preference ordinance for new construction. Milpitas’ reach code has higher energy efficiency requirements for mixed fuel buildings and has an electrification readiness provisions for a future transition off gas to all electric. While Milpitas’ code does not require all electric new construction, it is designed to push developers towards electrification via the alleged costs savings that will be achieved with all electric appliances, wiring, and piping.

On November 12 the Pacifica City Council introduced a reach code for new construction that has electrification requirements for some appliances and exceptions for others. In new residential buildings, Pacifica’s reach code requires electric fuel sources for space heating, water heating, and clothes drying, though gas can be used for cooking appliances and fire places. In new non-residential buildings, space and water heating/cooling, cooking appliances, fireplaces, and clothes dryers must be all electric, but there is a gas exemption for emergency services public agencies and nonresidential

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State & Local Electrification Initiativeskitchens (such as for-profit restaurants). The ordinance is set for a second reading and vote on November 25, 2019.

Encinitas City Environmental Commissioner James Wang is urging his fellow commissioners to seek City Council approval for an ordinance prohibiting the installation of natural gas infrastructure in new buildings. The proposed natural gas ban met with a mixed reaction at the November 14 commission meeting. Three of his fellow commissioners said they wanted more information about the new heating and cooking equipment options before they would consider backing the proposed ban, and the nine public speakers on the item were roughly evenly divided. Ultimately, the commission decided to collect more information and revisit the proposal at its Dec. 8 meeting.

On November 18 Mill Valley introduced a strong electrification preference ordinance for new construction. A public hearing is set for December 2 to review the ordinance. Mill Valley’s proposed reach code closely resembles Marin County’s recently passed reach code. The ordinance requires new residential mixed-fuel buildings to comply with enhanced energy efficiency requirements.

On November 19 Monte Sereno passed an electrification readiness ordinance requiring prewiring in all new residential buildings.

Saratoga introduced a reach code on November 20 with a final vote scheduled for December 4. The proposed ordinance mandates electric water and space heating in all newly constructed buildings with an exception for emergency centers. Additionally, if natural gas cooking appliances, fireplaces, or clothes dryers are used then electric pre-wiring is also required.

On November 21 the Brisbane City Council introduced a reach code ordinance requiring new residential buildings to have all-electric water and space heating appliances. The proposed ordinance does allow for natural gas cooking appliances but requires electric prewiring. The ordinance also requires new non-residential buildings to be all-electric. There are exceptions for life science buildings and instances where “non-electric building components are essential as a core component of the intended building use, such as a barbeque-themed restaurant, pizza oven, etc.” A final vote on the ordinance is scheduled for December 12.

On December 2 the Mill Valley City Council adopted an electric preference reach code for new construction. Mill Valley’s reach code closely resembles Marin County’s recently passed reach code. The mixed fuel pathway requires the most strict compliance with Cal Green Tier 1 and electrification readiness requirements.

The Healdsburg City Council introduced a reach code on December 2 with a final reading and passage scheduled for December 16. The ordinance requires new construction be all-electric with exceptions for gas cooking and fireplaces. The ordinance

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State & Local Electrification Initiativesalso has a business necessity exception for non-residential buildings. All buildings are required to be pre-wired for future total electrification.

On December 3 the Los Gatos City Council introduced a reach code that would require new low-rise residential construction be all-electric except for cooking appliances. Additionally, all new low-rise residential construction must be pre-wired for all-electric appliances.

On December 3 the Berkeley City Council passed a reach code to complement its natural gas ban ordinance passed in July, The reach code impacts all building permit applications for newly constructed buildings submitted on or after January 1, 2020, including those which already have approved land use permits. The proposed reach code encourages all-electric construction and specifies what is required for electric-readiness to enable future electrification when natural gas appliances are utilized. it provides two pathways for new buildings to demonstrate compliance with the Energy Code: Either new all-electric buildings or new mixed-fuel buildings with enhanced efficiency requirements and prewired for all-electric appliances.

On December the Los Angeles Unified School District School Board voted to adopt a resolution that states that LAUSD will be powered entirely by clean, renewable electricity by 2030, and will electrify its buildings and school buses by 2040. L.A. is the second-largest school district in the country.

At its December 17 meeting the Dublin City Council received an update on the city’s goal to reach net zero emissions by 2045. As part of that goal, city officials have proposed a natural gas ban requiring all new construction to rely only on “carbon-free” electricity and 100% renewable power sources. City staff will be preparing more details on steps the council can take, and assessing their impacts. The council could decide on those by March.

On January 14 the San Francisco Board of Supervisors voted to amend the city and county’s Environment Code. The ordinance requires that new construction and major renovations of municipal buildings to exclude natural gas and include exclusively all-electric energy sources. The board also passed a law to give incentives for all-electric construction, paving the way for a possible gas ban in all new buildings this year.

A Climate Action Commission subcommittee is currently working to draft the city’s climate action and adaptation plan, and early goals include a microgrid pilot, going all electric and requiring solar on new buildings. Commissioners are also scheduled to discuss updating reach codes to include more stringent energy efficiency requirements to minimize greenhouse gas emissions as part of its long-term strategy. The Feb. 13 Climate Action Commission Meeting is expected to discuss electrification. The meeting will also see the presentation of a rough climate action plan that could sketch out how the city will move forward in balancing long-term and short-term resiliency goals with

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State & Local Electrification Initiativessustainability in mind. City staff is gearing up to propose electrification policies to council in late March or early April, with the Climate Action Commission slated to weigh in on the matter in February.

On February 4 the Campbell City Council introduced an ordinance to prohibit the natural gas for heating and hot water in all new residential construction.

On February 11 San Mateo County unanimously approved an all-electric reach code, the strongest passed by a county government to date. The ordinance requires that all new construction be all-electric with a host of carve outs for labs, gas cooking and fireplaces, publicly owned emergency centers. Electric pre-wiring required in all new construction.

On February 18 the Richmond City Council introduced a reach code and approved it on first reading. The final adoption was approved on March 3. The reach codes require specific requirements by building type: New residential buildings less than 3 stories high are required to build all-electric space heating, water heating, and clothes dryer. Natural gas can still be used for stoves, fireplaces or other appliances if desired but pre-wiring for electric readiness is required where natural gas appliances are used. New nonresidential buildings and multifamily buildings greater than 3 stories are required to build all electric and install a minimum amount of on-site solar based on square footage. Residential and nonresidential tenant improvement upgrades require new mechanical and electrical systems. Exceptions include scientific laboratory buildings, emergency centers, and restaurants.

On February 20 the Millbrae City Council unveiled a draft Climate Action Plan proposing a wide range of actions to better align the city’s actions with the state’s climate goals. Proposed measures include adopting reach codes that achieve greater energy efficiency than the CALGreen Code for both residential and non-residential construction. The plan also proposes incentives to encourage all-electric appliances.

On March 3 the City of Hayward, Ca approved reach codes requiring new low-rise residential buildings be all-electric. Non-residential and high-rise residential buildings be either all-electric or be constructed as mixed-fuel, but with extra energy efficiency, solar, and battery storage. The codes will be sent to the CEC for approval following a second vote on March 17.

On March 12 an administrative law judge within the CPUC issued a revised decision March 12, as part of a CPUC docket addressing the PG&E, SoCal Edison, and SDG&E application for approval of a residential rate design proposal, including residential default time-of-use rate along with a menu of residential rate options, followed by addition of a fixed charge. The decision specifically directs PG&E and SDG&E to propose in its next residential rate design an opt-in, un-tiered residential time of use rate with a fixed charge “available to residential customers charging an electric vehicle, utilizing energy storage, or utilizing electric heat pumps for water heating or climate control.” . SDG&E’s rate

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State & Local Electrification Initiativesproposal shall include a plan for customer outreach and education to encourage potentially eligible customers to take advantage of the rate.” The order also directs PG&E to propose an identical rate no later than May 1, 2020. PG&E is directed to hold a workshop on the proposal by April 1, 2020 and SDG&E by May 1, 2020. The decision goes so far as to state “the uncontested interest in promoting beneficial residential electrification using rates with fixed charges” citing support from the Commission and trhe fact that PG&E has expressed interest in beneficial electrification. Therefore, it would be best to “maintain consistency” among the IOUs. According to the decision, these rates will “help the state meet its electrification policy goals.”

On March 24 the Santa Cruz City Council introduced an ordinance banning the use of natural gas in new residential construction by requiring building electrification. The ordinance lists exemptions for projects that are deemed to be in the public interest and for restaurant cooking.

A recent report delivered April 13 by the Palo Alto City Council suggests the city is struggling to make serious progress on its 2016 goal to reduce carbon emissions 80 percent by 2030. The progress report was slammed by environmentalists for overstating its achievements and falling well short of its goals. The city did not meet its targets for building electrification. The city’s sustainability manager attributed this largely to higher expenses of retrofitting gas appliances in existing buildings and higher operational costs of heat pump equipment. In a newly adopted two-year plan to help the city meet its goals, the city’s electric building reach code will be expanded next year to include commercial and high-rise residential buildings. City councilors recognized the all-electric requirement for new buildings may change little given the small number of homes that get constructed every year. On April 20th City Manager Ed Shikada projected the city’s revenue failure could reach $30 million in FY 2021. This will require drastic budget cuts impacting local libraries, the city’s police department, shuttle service, and community centers. Shikada explained the shortfall may also cause the city to halt its building electrification initiative.

On April 23 the cities of Sacramento and West Sacramento released a draft climate plan with the ultimate goal of achieving carbon neutrality by 2045. The plan mandates all-electric construction in new buildings by 2023 and a transition of 25% of existing residential and small commercial buildings to all-electric by 2030. The city’s municipally-owned electric utility will provide incentives to home and business owners to retrofit their buildings. Additionally, the plan has a host of requirements on the transportation side including 70 percent of all new vehicle registrations must be from ZEVs by 2030. The plan also has provisions on food security, green spaces, car-free districts, and telecommuting. The plan does not list the costs for any of its proposals.

Colorado

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State & Local Electrification Initiatives In Denver, a city task force recently recommended to “shift commercial buildings and

200,000 households off of natural gas to heat sources that do not lead to carbon pollution.” The city’s 80x50 Climate Action Plan has goals such as buildings use 30% less energy by 2030, 50% less energy by 2050, new buildings achieve net zero energy by 2035, and 50% less thermal heating emissions by 2040. Additionally, the plan seeks to reduce water and space heating emissions by 50% by the year 2040 or sooner. The city’s yet to be developed Strategic Existing Building Electrification Implementation Plan will also serve as the guiding document to consider how we might achieve carbon neutrality in buildings by 2050 i.e. 100% reduction in water and space heating emissions.

The Colorado Energy Office Has Commissioned A Study Of Building Electrification And The Range Of Policy Options To Support It. “The Colorado Energy Office has commissioned a study that Will Toor, the executive director, said will quantify the technical and economic potential of building electrification in Colorado and also explore the range of policy options to support electrification.”

The Head Of The Colorado Energy Office Also Identified Beneficial Electrification And The Replacement Of “Burning Natural Gas In Buildings” As A “Key Strategy Reaching The Significant Emissions Reductions That Are Required.” “We’ll also be kicking off a beneficial electrification analysis. Just as electricity can replace gasoline and diesel in transportation, electricity can replace burning natural gas in buildings, for their HVAC systems. Buildings are the third largest source of emissions, behind electricity and transportation, and we think that building electrification is going to be a key strategy for reaching the significant emissions reductions that are required.”

The Colorado Chapter Of The Beneficial Electrification League (BEL) Is The Group’s First State Chapter And Was Created To Advance Beneficial Electrification In Colorado. “Tri-State Generation and Transmission Association joins the national Beneficial Electrification League (BEL), the National Rural Electric Cooperative Association (NRECA), Natural Resources Defense Council (NRDC) and others today to announce establishment of the BEL’s first state chapter, which will advance beneficial electrification in Colorado.”

The shift from gas to electricity in Colorado is reflected in policies of the Carbondale-based Community Office for Resource Efficiency. The group encourages the shift to low-carbon energy solutions in the Aspen area. CORE offers $2,500 rebates for fuel switching to electricity. In the Denver suburb of Arvada, developer Norbert Klebl pushes the health benefits of the 20 all-electric homes he has completed in the Geos neighborhood. ‘Putting gas into the home is unhealthy,” he said. ‘It burns up oxygen and also produces carbon monoxide.’ Klebl also talks cost savings. Geos homes cost 8% more up front but save between $1,200 and $2,400 annually on utility bills, he said. Golden-based architect Peter Ewers decided this year to make all-electric buildings the

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State & Local Electrification Initiativessole focus of his practice. ‘We have to stop locking natural gas into the lifetimes of these buildings,’ he said at a recent Colorado Renewable Energy Society meeting. Strides in technology have improved, and he believes all-electric buildings will be the rule, not the exception, by 2030.” (Allen Best, Energy News Network)

A campaign sponsored by the city of Boulder and Boulder County called Comfort 365 encourages residents to transition away from natural gas for heating and other indoor purposes as a way to meet the county and state’s carbon reduction goals.

On February 20 At a hearing held by the Air Quality Control Commission to review the state’s emissions reductions plan, Will Toor, the executive director of the Colorado Energy Office, publicly declared his office is moving aggressively to stop consumers from using fossil-fuel burning products and that the goal is to “electrify the heck out of a lot of other sectors” of the state’s economy. In his presentation to the commission, Toor discussed legislation that will have utilities encouraging their customers to reject gas-fired appliances. “We are working on a beneficial electrification bill that would be modeled after utility demand-side management statutes. So, for those of you that are familiar with these, Colorado for many years has had requirements that electric utilities develop demand-side management plans in which they essentially support their customers in adopting energy-efficient technology to reduce use of electricity. This would be modeled after that to require utilities to develop beneficial electrification plans that the Public Utilities Commission would set targets for beneficial electrification programs and the utilities would submit plans based upon the targets to support their customers in again moving directly burning fossil fuels to using things like electric heat pumps instead of water heaters. Toor then said the state aims to move aggressively towards electrifying as much of the economy as possible.

District of Columbia

The District is committed to achieving carbon neutrality by 2050, with an interim target of a 50% reduction in greenhouse gas emissions by 2032. For the city to meet its 2032 interim emissions target, city staff estimate that 20% of buildings must complete a deep energy retrofit that includes high-efficiency electrification.

Kansas

On February 18 the Lawrence City Commission voted 4-1 to approve an ordinance on first reading that would establish future energy goals/plans committing to municipal as well as communitywide energy goals that would eliminate natural gas by 2035 (amended from 2050) and rely entirely on renewables and other clean energy sources by definition for electric generation. Adopted on second and final reading March 3. In a memo to the commission, city staff state that strategies and actions steps to achieve the goals will be integrated into the development of the city’s Climate Action and Adaptation Plan. The

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State & Local Electrification Initiativescity allocated $75,000 as part of its 2020 budget to update its existing climate protection plan, and that effort will soon get underway.

Maine

In 2016, legislation that allows transmission and distribution utilities to implement programs to provide efficient electric heat pumps to customers was passed. The program’s design and operation is subject to review and regulation but the Public Utilities Commission and may include rates for customers participating in the program to cover program costs, which costs may be paid only by customers participating in the program, and the program must offer customer choice of qualified 3rd-party installers. It also repeals the provision of law that allowed transmission and distribution utilities to develop and implement pilot programs to provide efficient electric heating systems to customers.

In 2019, the legislature passed LD 1766 “An Act to Transform Maine’s Heat Pump Market to Advance Economic Security and Climate Objectives”. LD 1766 establishes a goal of installing 100,000 new high-performance heat pumps in Maine over the next five years. This will be achieved through additional Efficiency Maine Trust (EMT) incentives, funded through Forward Capacity Market revenues, and coordinated programming with Maine State Housing Authority, funded by a portion of the Low-Income Home Energy Assistance Program (LIHEAP).

In 2019 the legislature enacted HP 1071 .This law amends provisions in current law regarding the conservation programs of the Efficiency Maine Trust by clarifying that conservation programs seek to increase the efficiency with which electricity is used and defining "beneficial electrification" as the electrification of a technology that would otherwise require energy from a fossil fuel that provides a benefit to a utility, a ratepayer or the environment by improving the efficiency of the electricity grid or reducing consumer costs or emissions, including carbon emissions. It also requires the Efficiency Maine Trust to conduct a study regarding the barriers to beneficial electrification of the transportation and heating sectors in the State; and requires the Public Utilities Commission to issue a request for proposals from utilities and entities that are not utilities to conduct a pilot program to support beneficial electrification of the transportation sector of the State.

Maryland

Montgomery County has established three workgroups to develop prioritized actions and strategies to help the County meet its GHG emission reduction goals of 80% by 2027 and 100% by 2035. One group is specifically tasked with focusing on emissions from buildings. The process is ongoing (should wrap by year’s end) but initial recommendations include evaluating policies prohibiting the use of natural gas in new, substantially modified, and existing buildings as well as policies requiring the electrification of new, substantially modified, and existing buildings. On March 10 the

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State & Local Electrification Initiativescounty held a stakeholder meeting to receive feedback on the adoption of the 2018 International Green Construction Code. The County plans to ramp up the energy performance of new buildings covered under the IgCC with each code cycle, with a goal of reaching net zero energy buildings by 2030.

In August 2019, The National Governors Association (NGA) announced it will provide assistance to Maryland, New Jersey, New Mexico and Rhode Island to modernize their electric power grids, electrify the heating sector, and improving system resilience.

Massachusetts

In 2017, Senator Marc Pacheco introduced Senate bill 1875, which, in part, seeks to establish specific metrics and related performance incentives to evaluate the progress of the distribution companies toward establishing a grid planning system to utilize and integrate local energy resources to meet customers’ energy needs. Said metrics may include, but are not limited to, reducing the impact of outages, optimizing demand, integrating local energy resources, improving workforce and asset management, and electrification that results in lower greenhouse gas emissions and energy costs savings, after accounting for fuel switching. The bill culminated in a study order on April 30, 2018.

The Health & Environment Committee of the City Council for Cambridge, Massachusetts held an open hearing on Wednesday, September 25 to discuss “banning natural (fracked) gas infrastructure in Cambridge.” Councilman Quinton Zondervan is leading the push to ban natural gas in newly constructed buildings and has been arguing against incentives to encourage buildings to move away from gas. Councilman Craig Kelley stated he would like to explore creating incentives for developers to construct buildings without gas facilities.  Following the hearing, the committee directed City Solicitor Nancy Glowa to research the city’s authority to ban the use of natural gas in newly constructed buildings and report back to the full city council. On October 7, 2019 the full city council voted to direct the City Solicitor, Community Development, Public Works, and Inspectional Services to review the requested prohibition on new natural gas infrastructure. The proposed ordinance is available here beginning on packet pg. 367. The Cambridge Ordinance Committee will hold a public hearing on the proposed ordinance on December 11. Despite an opinion from the city solicitor’s office that state law would likely preempt any local ordinance, the Ordinance Committee voted to advance the gas ban to the full council. Zondervan has sought to quickly pass a gas ban in new construction and renovations with minimal exemptions. He suggested limiting stakeholder meetings to a month during a Jan. 27 city council meeting. However, other councilors noted their preference for several months of meetings to consider additional exemptions and gather expert testimony signaling it could be months before an ordinance is passed. The council ultimately directed the city manager to convene stakeholder meetings to make comments on implementing a gas ban. Councilmember Zondervan is still pushing for a gas ban in place by Jan. 1, 2021 despite the COVID-19 pandemic but the situation remains "extremely fluid."

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On October 8, 2019 Mayor Marty Walsh announced an updated Climate Action Plan that calls for zero net carbon buildings by 2030 and retrofitting and electrifying at least 80 percent of the existing buildings over the next 30 years. The plan further states the City of Boston will lead by example by retrofitting municipal buildings, and will require private building owners to reduce their building emissions by introducing carbon performance standards. The plan seemingly directs the Boston Planning & Development Authority Enact to enact zero net carbon new zoning requirements and a timeline for implementation by 2020. In parallel with updating zoning requirements, the plan also notes the city will advocate at the state level for updating the Massachusetts Stretch Energy Code to a Zero Net Carbon (ZNC) standard.

In Brookline, Massachusetts a natural gas ban on hookups in new buildings will be up for referendum on the ballot in November 2019. The proposed by-law will prohibit installation of fossil fuel piping in new buildings and in major renovations of existing buildings. Consequently, this policy will require heat, hot water, and appliances that are installed during new construction and gut renovation to be all-electric. For situations in which electric is not practical or cost effective, this by-law provides for exemptions, including for fuel piping for backup generators. On October 15, 2019 the Brookline Housing Advisory Board voted to endorse the by-law. In a town vote on November 20 the proposed by-law passed by a vote of 207-3. The new by-law must still be approved by the state attorney general’s office. The bylaw allows for exemptions for the owners of restaurants, medical labs, and others who could prove that they have no viable alternatives to using fossil fuels. It also allows for a new town board to consider waivers. The Brookline co-sponsors included an exemption that allows gas piping for cooking after they encountered opposition within the 240-seat Town Meeting to mandating electric kitchen appliances.

o Worcester, Framingham, and Lexington are looking at similar fossil fuel bans.

Announced in November, a new coalition, led by the mayors of Worcester, Somerville, New Bedford and Easthampton, is calling on state policymakers to transition Massachusetts to meet its heating, transportation and electricity needs entirely through renewable energy. The coalition is chaired by mayors Joseph Petty of Worcester, Joseph Curtatone of Somerville, Jon Mitchell of New Bedford and Nicole LaChapelle of Easthampton. The group plans to extend invitations to mayors of other cities.

On December 27 Sustainable Arlington, an Envision Arlington environment committee, announced plans to host an open meeting on January 5, 2020 to consider enacting a gas ban similar to the one approved in Brookline. The group is hoping to present a similar ban in time for the town’s spring meeting in April.

Arlington, Mass., intends to pursue a ban on natural gas in new buildings, making it the fourth Boston suburb to take up the issue. The town's Clean Energy Future Committee

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State & Local Electrification Initiativesresolved in December 2019 to take a vote in January on advancing a gas ban to Arlington's Town Meeting, its 252-seat legislative body. A gas ban in new buildings is among the many measures the Clean Energy Future Committee is considering as it develops a plan to make Arlington carbon neutral by 2050. On February 27 Arlington’s Clean Energy Future Committee (CEFC), in concert with Sustainable Arlington and Mothers Out Front, held a public information session on a proposed Town bylaw that would prohibit fossil fuel infrastructure in new construction and major renovations. The Select Board has inserted an article for a proposed fossil fuel bylaw on the warrant for Annual Town Meeting, which begins April 27.

In Newton City Council work is moving forward through remote video conferencing, said Councilwoman Emily Norton, one of several lawmakers spearheading a gas ban. That included identifying experts who could give presentations and answer questions about the policy before the Public Facilities Committee, she said. The City Council will continue developing an ordinance prohibiting gas hookups in new buildings but will also submit a so-called Home Rule Petition. This process allows towns and cities to petition the state legislature for authority that local lawmakers currently lack. At the April 22 meeting of the Public Facilities Committee, councilors requested a discussion with the city’s sustainability team to draft an ordinance and clarify the council’s authority to ban natural gas.

Michigan Ann Arbor is in the beginning stages of launching a net zero advisory council which is

considering among other things a natural gas ban and move towards building electrification. This is being organized as the “A 2 ZERO ” campaign. The initial draft of the plan was released in March 2020. The plan calls for over forty actions at a cost of more than $1 billion over the next ten years to achieve carbon neutrality by 2030. The plan hinges on six core strategies, one being swapping appliances from natural gas to electric. By 2030, the plan envisions that 100% of city facilities, 30% of owner-occupied homes (not including the 20% already using electric heat), and 25% of rental properties are fully electrified. Doing all this would reduce GHG emissions community-wide by 3.6% according to the plan. The plan estimates it will cost the city $5.7 million to fully electrify its building stock but does not estimate the cost of residential electrification. The plan also calls for all new construction beginning in 2022 built to net zero energy standards, which includes no natural gas consumption. All new residential and commercial buildings are designed and built to operate without the use of natural gas, reducing the increased cost associated with retrofitting existing systems.

o In a presentation delivered on public television, city staff predicted carbon emissions could increase slightly over the next several years while the city converts vehicles and appliances to electric. The city predicts carbon emissions could increase slightly over the next several years while the city and its partners put various pieces of the plan in place, including converting vehicles and appliances from gas to electric.

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State & Local Electrification Initiativeso On April 20 the Ann Arbor City Council voted 8-3 to reject the city’s proposed $1

billion A2Zero climate action plan. The plan faced opposition due to its cost and rushed nature. After much debate, the council later voted to include a directive to city staff to revisit and adjust the plan to address concerns. Once a funding plan and prioritization framework are complete, A2Zero will be re-presented for consideration. Councilmember Chip Smith said he wanted to move the issue forward and he expects the question of adopting the plan will be back before council in two weeks, with the funding and prioritization work complete. Councilmember Jeff Hayner described the plan as fiscally irresponsible and expressed concerns about bankrupting the city while only reducing a small fraction of emissions. Councilmember Ali Ramwali noted the plan would likely make Ann Arbor even less affordable for residents and does not account for the huge cost businesses and residences would face through electrification.

Minnesota

In August 2019 Sam Rockwell, who is the president of the Minneapolis Planning Commission, wrote to the Star Tribune declaring that natural gas use must be slashed, and encouraged Minneapolis to follow the lead of Berkeley California, and ban the use of natural gas in new construction.

As part of the city of Minneapolis’ goal to achieve an 80% reduction in GHG emissions by 2050, the city will pursue a deep-carbon building retrofit program, including a fuel-switching component that eliminates fossil fuel dependency from all existing buildings and retrofits that eliminate dependency on fossil fuel appliances. To achieve its goals the city explicitly noted it would have to transition from relying solely on fossil fuel-derived natural gas for heating.

New Jersey

The New Jersey Energy Master Plan aims to put the state on a path to achieve 100% clean energy by 2050. A draft of the plan was released in June 2019. The plan states in part “The building sector should be largely electrified by 2050 with an early focus on new construction and the conversion of oil- and propane-fueled buildings.”

In August 2019, The National Governors Association (NGA) announced it will provide assistance to Maryland, New Jersey, New Mexico and Rhode Island to modernize their electric power grids, electrify the heating sector, and improving system resilience.

New Mexico

In August 2019, The National Governors Association (NGA) announced it will provide assistance to Maryland, New Jersey, New Mexico and Rhode Island to modernize their electric power grids, electrify the heating sector, and improving system resilience.

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New York

In September 2017, Mayor Bill de Blasio (D) announced plan to cap fossil fuel use in large buildings. Under his plan, large buildings have until 2030 to get under city mandated fossil fuel caps. If buildings fail to comply, fines proportionate to the size of building and size of violation will be issued. Many of the city’s oldest buildings still burn oil for heat and hot water, and while thousands of building have converted to natural gas heaters, de Blasio wants that fuel to be phased out too. The mayor says that, if enacted, the policy would cut natural gas usage by 14 percent and fuel oil use 20 percent by 2030.

The Environmentally Beneficial Electrification EAM metric would incentivize Niagara Mohawk to reduce carbon emissions by facilitating the use of electric vehicles and heat pumps in the Company’s service territory. It would measure the lifetime metric tons of avoided carbon dioxide from the use of incremental electric vehicles and heat pumps. The electric vehicles metric would measure incremental electric vehicles and plug-in hybrid electric vehicles registered in Niagara Mohawk’s service territory, as compared to those registered in a peer group of other utilities’ service territories. Incremental heat pumps would be measured by the number of rebates provided by the Company for air-source and ground source (geothermal) heat pumps.

In his 2020 state of the city address Mayor DiBlasio declared he would work with the city council to develop legislation prohibiting the use of natural gas and fuel oil in large buildings and stop using gas and other fossil fuels in large building systems by 2040.

North Carolina

In 2017, the City of Statesville is offering rebates to residential customers for installing new, energy efficient water heaters and heat pumps. To qualify for the heat pump rebate, customers must convert from gas or oil to a new electric heat pump, install a heat pump as part of new construction or install a heat pump into existing construction.

The “North Carolina Clean Energy Plan” released October 2019 calls for an analysis of the costs and benefits of using electrification to reduce energy burden and GHG emissions in consumer end-use sectors in NC, such as in homes, buildings, transportation, industrial and agricultural operations.

Ohio

In 2013, the City of Oberlin’s 2013 Climate Action Plan was presented to citizen and describes how the city of residents can work together to address the challenges of climate change. The plan cites that natural gas is widely used in Oberlin for space heating, domestic hot water, and cooking – and should be replaced with electricity or

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State & Local Electrification Initiativescarbon neutral energy sources if the city is to become climate positive. The city aims to reduce natural gas use by 1.5% per year (from 2010 levels) over 10 years, beginning in 2011.

Oregon

Cascadia Consulting Group helped develop the Climate and Energy Action Plan for Ashland, OR, which was published in March 2017 and proposed switching from natural gas and gasoline to low-carbon electricity in the transportation sector and claimed the city can reduce greenhouse gas emissions by 38% by 2050 if it “transitioned 90% of natural gas used in buildings to electricity.”

Activist Group Renew Oregon has sought to Include Three Initiatives On The November 2020 Ballot One of Renew Oregon’s Prospective Ballot Initiatives, Petition 49, Would Require Electric Companies To Conform To “Beneficial Electrification” Standards By 2045. “Initiative Petition 49 would require electric companies to conform to standards of ‘beneficial electrification’ (the definition includes reducing greenhouse gases and saving customer costs over time) by 2045.”

In Eugene, gas foes are using renewal of the city’s franchise agreement with the utility as an opportunity to push for a variety of possible measures, including banning new gas connections.

Rhode Island

The city’s Office of Sustainability and Racial and Environmental Justice Committee on October 25 released a “climate justice plan” that aims to reduce the city’s carbon footprint while taking into account the needs of low-income communities and communities of color. The plan includes clear targets, such as having 100% of municipal buildings’ electricity derived from renewable sources by 2030 and 100% of municipal buildings’ heating will be renewable by 2040. Additionally, the plan recommends that all new buildings and major renovations should be built to be zero energy ready. Other targets include eliminating utility shut offs by 2040, by 2035 having 48% of residential heating and 45% of commercial converted to heat pumps, and by 2050 having 90% of residential heating and 85 percent of commercial converted to heat pumps. Simultaneously, the city plans to reduce the amount low-income households spend on energy to less than 5% of their income by 2040.

In August 2019, The National Governors Association (NGA) announced it will provide assistance to Maryland, New Jersey, New Mexico and Rhode Island to modernize their electric power grids, electrify the heating sector, and improving system resilience.

Utah

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State & Local Electrification Initiatives As part of the Building Electrification Initiative, Salt Lake City is testing the feasibility of

homes powered by 100% electricity for heating, cooling, and appliances. Rocky Mountain Power sought and gained approval for the project through Utah’s Public Service Commission, which had to approve it paying $3.27 million toward the $34 million solar panel and battery cost. Several different developments are detailed here. Salt Lake City wants to reduce greenhouse gas emissions and transition to a renewable electricity supply in the next 10 to 20 years. The BEI report released in November 2019 concluded that it wouldn’t be economically feasible to convert most residential buildings to electric: Most would need electric panel upgrades before they could convert to heat pumps, and it could take up to 16 years for the operational savings to cover the cost of the equipment. Plus, energy bills would be higher, since higher rates of electricity use result in a higher rate charged. As of March 2020 the city had yet to determine or even discuss if it will incentivize or require multifamily developers to go all electric.

Virginia

In July 2019 the city of Alexandria released the “Environmental Action Plan 2040.” The plan calls for by FY2024 to develop an electrification and renewable energy supply transition plan for the City’s non-electricity energy use including the conversion of natural gas and other fossil fuel use in facilities and operations that can be supported by renewable energy supply. The plan also hopes by FY2040 to implement electrification of all City non-electricity energy use.

The Arlington County Board approved an updated “Community Energy Plan” on September 24, 2019. A summary is available here. A deeper dive (and the actual text of the resolution) is available here. The plan cites several policies for future consideration including: Future “reach” building codes, expanded investment in energy efficiency programs, reduced use of gas as an energy resource, and diversification of utility programs and partners. The plan furthers states that by 2050, total building energy usage in Arlington should be, at a minimum, 38% lower than 2016 levels. Additionally, it states government operations will achieve 50% Renewable Electricity by 2022, and 100% Renewable Electricity by 2025 while the community will achieve 100% Renewable Electricity by 2035.

On January 2, 2020 Del. Karrie Delaney (D) prefiled HB 413 to grant localities additional discretionary authority when drafting a subdivision ordinance. The bill would authorize a local governing body to include in its subdivision ordinance provisions for establishing minimum standards of energy efficiency and establishing and maintaining access to sources of renewable energy.

Vermont

In April 2019 state legislators considered H.51, Which Would Ban New Fossil Fuel Infrastructure. H.51, would ban new fossil fuel infrastructure with the aim of reducing the

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State & Local Electrification Initiativesstate’s reliance on fossil fuels and lowering greenhouse gas emissions. As Vermont does not have any oil pipelines, the bill targets natural gas.

In September 2019 Burlington Mayor Miro Weinberger released the City’s Net Zero Energy Roadmap. More than a year in the making, the Roadmap studies what it will take for Burlington to accomplish its goal to become a Net Zero Energy city by 2030, and identifies four key pathways to get there. One of those pathways includes efficient electric buildings via electrification of space and water heating. Burlington is also one of the participating cities in the Building Electrification Initiative.

Washington

In 2011, a report was prepared for the City of Seattle Office of Sustainability and Environment outlining a pathway to a Carbon Neutral Seattle. GHG emissions reducing suggestions include a transition for homes, businesses, and vehicles to lower carbon energy sources like electricity/hydrogen in the long run, biofuels as a bridging strategy for transportation until electric vehicles predominate, and sustainable biomass sources. The report outlines previous GHG emission reductions including the Sound Transit Light Link Rail system and Seattle Steam’s partial conversion from natural gas to biomass. With regard to residential and commercial building design, the report notes that green building design and retrofits achieve deep reductions in energy use, but switching space and water heating from fossil fuels to electric heat pumps and district energy can help ensure that remaining energy use is as carbon-free as possible.

The Seattle City Council will consider a ban on natural gas for newly constructed homes and buildings, favoring the use of electricity for heating and cooking. Councilmember Mike O’Brien (whose term expires at the end of the year and did not seek re-election) plans to introduce legislation this week that would prohibit natural-gas piping systems in new structures, starting next summer. The ban would take effect for permitting on July 1, 2020, according to a draft of the legislation. Restaurants would be exempted from the ban, at least initially. Commercial building would be covered by the ban. Strong opposition to the rushed nature of the ordinance forced O’Brien to delay a vote until December or even later. On March 4 the Seattle City Council adopted its 2020 work plan putting a building electrification ordinance on this year's docket after opposition from a diverse group of regional stakeholders blocked efforts to swiftly implement a building gas ban last fall. The ordinance will be taken up by the newly formed Sustainability and Renters' Rights Committee chaired by Councilmember Kshama Sawant. It is one of several Green New Deal measures the committee plans to tackle this legislative session. The Seattle City Council suspended committee meetings shortly after its Sustainability and Renters' Rights Committee agreed to resume work on a gas ban developed in 2019. Committee Chair Kshama Sawant will likely continue gas ban discussions once meetings resume.

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State & Local Electrification Initiativeso A letter from PSE’s General Counsel detailing how the proposed ordinance

would violate state law is available here.

Bellingham’s Climate Action Task Force has recommended total electrification by 2035 as its primarily objective, developing a list of actions they perceive as necessary to get to this target. At the October meeting, Task Force recommended electrifying new and existing buildings. Essentially bans gas water heaters going forward, any home looking to replace its space or water heating system would have to go electric. 2040 conversion deadline for everyone. Slides from October meeting. The Climate Action Task Force released its final report on December 2 and presented its findings to the Bellingham City Council on December 9. The final report recommends that any replaced space or water heating system must be replaced with an electric heat pump. Any natural gas space and water heating systems that haven’t been replaced with electric heat pump or equivalent systems need to be replaced by 2040. Additionally, all new buildings must use only electric systems and appliances. Space and water heating systems must be electric heat pumps. The City Council unanimously moved to direct staff to provide a comparison between Climate Action Task Force recommendations and the adopted Climate Action Plan by January 13, 2020, as well as create a climate action standing committee. At the City Council meeting on January 13 the city’s comparison was presented listing the electrification of new and existing buildings as a priority for 2020. An informational presentation on the Climate Action Plan was delivered on February 10 highlighting existing conservation efforts and future measures. City Council staff in Bellingham are focused on emergency response, according to Councilman Michael Lilliquist. He could not tell whether the reprioritization would substantially delay lawmakers from considering an electric heating retrofit requirement.

o On January 28, 2020 Cascade sent this letter to Mayor of Bellingham and the city council.

Released October 2019, the City of Everett had Cascadia Consulting Group draft a “Climate Action Plan,” in order to provide a strategic roadmap and menu of climate action options City Council can prioritize for implementation. The plan highlights electrification and eliminating natural gas from buildings and homes through both incentives and mandates. Note that the affordability, feasibility, equity, impact, and co-benefits of this proposal will not be evaluated until after the city’s October 15 meeting, and once the Planning Commission and public have provided input on which strategies and actions to prioritize in the CAP. At an October 15 Planning Commission meeting support for a natural gas ban seemed low.

o “Options such as city mandates, building code updates, or ordinances should be explored as tools for transitioning new construction to all-electric.”

o “Pursue, and develop the legal authority to, increase the Utility User Tax for natural gas. To incentivize the transition to all-electric buildings, a Utility User Tax increase would put a price on carbon and generate revenue for implementing measures in the CAP, such as providing resources for electrification.”

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State & Local Electrification Initiatives Thurston County and the cities of Lacey, Olympia, and Tumwater are working with the

Thurston Regional Planning Council to craft a strategic roadmap for reducing greenhouse gases. While still very much in the planning stage, a draft of the “climate actions menu” as of October 17, 2019 includes proposals such as: updating municipal code to require electric appliances in new construction, ban all new natural gas connections in new buildings, and create a utility fee for natural gas usage to fund electrification programs. The next meeting of the Thurston Climate Mitigation Plan Steering Committee is October 24 where the climate action options will be discussed.

On January 8, 2020 Seattle Mayor Jenny Durkan signed an executive order ordering the transition of all city-owned buildings off of fossil fuels. The mayor’s green new deal directive states that the city will no longer use fossil fuels like natural gas to heat, cool and cook in new and substantially altered city-owned buildings and will come up with a plan by 2021 to transition all city-owned buildings to clean electric systems over time.

Regulatory FrameworksDiscounts for all-electric customers

There are instances where segments of an electric utility’s customer base will subsidize others in order to promote all electric homes. For example, in the wake of the 1970 moratorium on new natural gas installations, the Public Utility Commission of Ohio (PUCO) allowed an electric utility to offer discounted electric rates to customers that lived in all-electric homes. Customers with natural gas would pay higher electric rates, which in effect subsidized the discounted customers. These rates remained in place even after the gas moratorium ended. In the wake of concerns that some electricity customers were subsidizing the discounts of others and in an effort to promote greater energy efficiency, in 2007 the all-electric discount was eliminated for new customers. By 2009 the all-electric customers moved to the standard residential distribution and generation rate but still received a small discount (approximately 1.7 cents/kWh distribution discount, and 1.9 cents/kWh generation). Under pressure from customers who saw their rates rise dramatically during the winter, the utility instituted a residential generation credit (RGC) for its customers in place of the now eliminated all-electric rate cut. This new discount depended on service area and customer usage but went as high as 4.2 cents per kWh (this is in addition to the generation and distribution discounts already mentioned). The fate of the credit and discount rate is currently being decided.1

Seasonal rates

For qualified customers with electric space heating or all-electric households, electric utilities may offer a seasonal rate for service that is less in the winter months relative to the summer. Consumers with an alternative energy source for space heating, such as natural gas, would not have access to these lower rates. Consequently, the higher electric rates paid by customers

1 Squeezing Every BTU: Natural Gas Direct Use Opportunities and Challenges; Richard Meyer, AGA; January 2012

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State & Local Electrification Initiativeswith natural gas heating effectively subsidize the all-electric customers that enjoy lower seasonal rates. Utilities that use seasonal charges and a declining block rate—the more energy a customer uses the less they pay—further incentivize greater electricity usage, adding additional competitive pressure.2

Examples include:

Pennsylvania Duquesne Light CompanyRate RH – Residential Service Heating Available to residential or combined residential and farm customers using the Company’s standard low voltage service for lighting, appliance operation, general household purposes and for commercial or professional activity where associated consumption represents less than 25% of the total monthly usage at the premise, and as the sole primary method of space heating except that the space heating system may be supplemented with renewable energy sources such as solar, wind, wood, or hydro. Available only when supplied at 240 volt (or less) single phase service through a single meter directly by the Company to a single family dwelling or to an individual dwelling unit in a multiple dwelling structure. For the purposes of this rate, a dwelling unit is defined as one or more rooms arranged for the use of one or more individuals for shelter, sleeping, dining, and with permanent provisions for cooking and sanitation. Winter Monthly Rate ¾ for the Billing Months of November through April: Energy Charge.......................................................................3.5845 cents per kilowatt hour Summer Monthly Rate ¾ for the Billing Months of May through October: Energy Charge.......................................................................4.7172 cents per kilowatt hour

VirginiaDominionElectric Heating ScheduleThis schedule is applicable only to Customers electing to receive Electricity Supply Service and Electric Delivery Service from the Company at those Customer locations where electricity is purchased or has been applied for under this schedule prior to July 1, 1972, for water heating, clothes drying, and space heating (not process heating) and where electricity is also purchased for other purposes at the same location in accordance with a general service schedule; or to those Customer locations where electricity is purchased for water heating only and was served prior to July 1, 1970, on a separate water heating schedule.  Where electricity is used for space heating, and the same space is cooled by air conditioning equipment that serves no additional space, the air conditioning equipment may be served on this schedule through the same meter. If service is permanently discontinued at this location or if the two separate services are combined into one metered service at the Customer's option, service under this provision will not again be available under this schedule.For the Billing Months of June – September All Electricity Supply kWh @ 5.803¢ per kWh For the Billing Months of October – May All Electricity Supply kWh @ 3.996¢ per kWh

2 Squeezing Every BTU: Natural Gas Direct Use Opportunities and Challenges; Richard Meyer, AGA; January 2012

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Utility Programs and IncentivesThere are also financial or non-rate side incentives. These are not part of a consumer’s energy rate structure, but financed using shareholder dollars. Electric companies sometimes offer discounts, rebates, tax incentives, payments to builders, and other financial incentives. The dollars to finance the incentives come from the utility’s shareholder dollars—the company’s profit base—and are not embedded into the regulated rate base charged to consumers. The upfront costs to the shareholders are viewed as an investment to ensure the long-term capture of an all-electric customer who will provide a long-term return on the shareholder investment.

In some cases, builders are offered direct incentives to construct homes with only electric appliances. For example, an electric service provider will offer to install electric wiring underground in a housing development, which is viewed as a premium compared to overhead wires, albeit a costly one. However, if the builder agrees to all-electric homes the service fee charges are waived, saving the builder considerable costs. If natural gas appliances are installed the builder must pay the service fee, per agreement with the electric utility. The builder now has considerable incentive to forgo natural gas appliances.3

Examples include:

Colorado

Mountain Parks Electric, Inc., a Touchstone Energy Cooperative, is providing members with a residential rebate of up to $250 for use of electric water heaters in new construction or switch from natural gas or propane to electric water heater in existing homes.

Georgia

Between May 1 – August 31, 2017, Georgia Power is offering incentives for customers to convert to a heat pump from a natural gas furnace. Incentives between $200 and $450 are being offered to customers who make the switch. Funding for the program comes from the Home Performance with ENERGY STAR (HPwES) Program, developed by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE).

o In 2012, similar credits, offered by Georgia Power through the HPwES program, were utilized by the United States Army during the Fort Benning Indianahead Townhome Renovation project.

3 Squeezing Every BTU: Natural Gas Direct Use Opportunities and Challenges; Richard Meyer, AGA; January 2012

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APPENDIX

California Regional Electrification Efforts (per the Los Altos City Council staff 10/14/19)

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