Sorry, you need to enable JavaScript to visit this website.
Skip to main content
Home
    • Contact Panasonic
    • Save Page
    • Home
    • Green Living
    • Trends & Technology
    • California Nears Tipping Point on All-Electric Regulations for New Buildings
    Back to Resource Center

    California Nears Tipping Point on All-Electric Regulations for New Buildings

    • Contact us
      • Twitter
      • Facebook
      • Linkedin
      • Email
    Electrical circuit breaker panel in new home under construction

    California Nears Tipping Point on All-Electric Regulations for New Buildings

    info@greentechmedia.com

    California's commercial and residential builders prepare for the next change on the road to the Golden State's 2045 carbon neutrality goal. All-electric appliances are expected to be the new standard starting in 2023.

    California is readying what could be the next game-changing update to its building performance standards.

    Building performance standards have been saving Californians energy and money for four decades. Occasionally, updates to the standards, which are strengthened every three years, yield a breakthrough. In 2019, the beneficiary was solar, with regulators approving a requirement for rooftop PV arrays on most new homes in the state.

    In 2022, the game-changer is likely to be new rules to tip the market toward all-electric new construction.

    Much of the work on the 2022 update to what is officially known as California's Title 24 Building Energy Efficiency Standards has so far been done behind the scenes by staff at the California Energy Commission (CEC). But a recent round of letters from key stakeholders signals the start of the public phase of the process.

    Over the past month, letters submitted to the CEC by some of the state's largest utilities, including Pacific Gas and Electric Company (PG&E), Southern California Edison, and Sacramento Municipal Utility District (SMUD), as well as the California Community Choice Association, all carried the same message: adopt an updated energy code that accelerates the transition to all-electric buildings.

    "The letters that you are seeing are basically trying to set the stage and influence that process," Pierre Delforge, a building decarbonization expert who tracks the proceeding for the Natural Resources Defense Council, said in an interview.

    Stakeholder workshops on the 2022 update are expected to be held in late August or early September. Commissioners are scheduled to vote on the new standards in July 2021, and they will take effect on January 1, 2023.

    San Jose, California

    San Jose, CA - capital of Silicon Valley

    Buildings are the second largest source of carbon emissions in California, after transportation. Shifting to all-electric buildings fueled by renewable power would be a huge boost to the state's decarbonization efforts.

    A new analysis from the Rocky Mountain Institute (RMI) found that delaying an all-electric construction requirement to the 2025 code cycle would result in 3 million additional tons of carbon emissions by 2030 and more than $1 billion of spending on new gas infrastructure.

    California's utilities get behind all-electric push

    The letters from the electric utilities should not come as a surprise: All-electric buildings, with electric vehicles parked in the garages, would be a source of long-term load growth for the utilities.

    But the letter from PG&E is a new twist: According to analysts at RMI, it's the first time a dual-fuel utility in the United States formally has called for ending gas hookups in new buildings.

    Electrician engineer work  tester measuring  voltage and current of power electric line in electical cabinet control.

    In the letter, Robert Kenney, PG&E's vice president of state and regulatory affairs, wrote that "PG&E welcomes the opportunity to support the California Energy Commission's efforts to advance efficient, all-electric new construction, when it is feasible and cost effective."

    Prudently, for a utility emerging from its second bankruptcy in 20 years, the letter takes the long view. According to Kenney, "PG&E welcomes the opportunity to avoid investments in new gas assets that might later prove underutilized as local governments and the state work together to realize long-term decarbonization objectives."

    The avoided sunk costs should include not just gas distribution pipes in the ground, but appliances installed in homes and offices, argued Debra Gerod, president of the California chapter of the American Institute of Architects.

    "Failure to make this course correction early would result in a continuation of the installation of equipment and infrastructure that will quickly become obsolete and thus have to be replaced before its end of life," Gerod wrote. "Future renovation and replacement costs must be included in cost-effectiveness analysis when considering onsite combustion in buildings."

    James Willson, executive director of the Los Angeles chapter of the National Electrical Contractors Association, urged commissioners to "act as aggressively as realistic now. Retrofitting buildings to all-electric is much more expensive than initially building all electric buildings."

    Woman preparing dinner.

    Arlen Orchard, SMUD's CEO and general manager, noted that all-electric homes aren't just cheaper to build than mixed-fuel homes, but that "in SMUD's service territory and much of California, all-electric buildings are also cheaper for homeowners to operate."

    SMUD's low electricity rates and generous electrification incentive packages – up to $13,500 for retrofits and up to $5,000 for new single-family homes – have already made all-electric homes the default for new construction in the Sacramento region.

    Making the shift work for California's home builders

    Together, the letters signal recognition by some of the state's most powerful special interests that building electrification is a boulder teetering on a precipice in California – one final nudge could send it hurtling downhill toward inevitability.

    "What the letters are saying, and what [NRDC] is saying is, let's make sure that we have a clear conversation around this goal of moving the building code toward all-electric," NRDC's Delforge told Greentech Media.

    As far back as 2018, the California Energy Committed had already concluded that "there is a growing consensus that building electrification is the most viable and predictable path to zero-emission buildings."

    More recently, a report (PDF) prepared for the CEC found that "building electrification is likely to be a lower-cost, lower-risk long-term strategy compared to renewable natural gas."

    Policy drivers, including former Governor Jerry Brown's executive order calling for economywide carbon neutrality by 2045, mean that in California, decarbonization, not energy consumption, now guides the development of building standards.

    "The 2022 and subsequent Standards cycles will have building decarbonization as the primary goal," the Energy Commission's staff said in a March presentation.

    Professional engineer architect worker with protective helmet and blueprints paper at house building construction site

    The 2019 update to the building standards created a two-track system for compliance for low-rise residential buildings – an electric baseline for all-electric homes and a natural gas baseline for mixed-fuel homes – so fully electric homes could compete on a level playing field with gas homes.

    Energy commission staff have recommended that the 2022 update maintain the separate baselines for low-rise residential mixed-fuel and all-electric buildings as "this approach avoids performance path compliance barriers for building electrification."

    The task now before commissioners is to decide whether to maintain the separate baselines or adopt a single all-electric baseline for new construction and to determine how to develop compliance incentives for all-electric buildings of every type.

    Commissioners may look for guidance to provisions in ordinances adopted by more than 30 local governments in California that either require or favor the construction of all-electric new buildings. Some of the ordinances, such as the policy recently approved in in the city of San Luis Obispo, don't ban natural gas hookups outright in new buildings but instead make it easier to build all-electric by requiring that mixed-fuel buildings meet more stringent energy performance standards.

    "We have to find a way that works for the builders – that will give them some flexibility to build faster, cheaper, and at the same time make progress with a clear direction toward full-electric homes," said Delforge. "We need to find a recipe. And the recipe isn't clear yet."

     

    This article was written by info@greentechmedia.com from Greentech Media and was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to legal@industrydive.com.

    Related Posts

    Joyous Father Pushes Swings with His Cute Little Daughter on Them. Happy Family Spends Time Together one Sunny Summer Day in the Idyllics Backyard.
    Sustainability & Environment

    Shining a light on the true value of solar power

    Like we've been saying: solar power is good for you and great for Earth. Here's why.
    Learn more
    Woman with candle at home because of power cut
    Sustainability & Environment

    Be ready for power outages with renewable technology

    With more of us working, schooling & operating businesses from home, reliable electricity is now a must-have.
    Learn more
    Production of solar panels.
    Trends & Technology

    The rise of solar module OEM and what it means for homeowners

    Why are solar module manufacturers shifting to original equipment manufacturers to make their panels?
    Learn more
    Group of friends sitting on front porch laughing
    Sustainability & Environment

    One third of Oahu homes now solar powered

    How solar energy is powering Hawaii's homes and economy.
    Learn more
    Untouched sandy beach with palms trees and azure ocean
    Sustainability & Environment

    Rooftop solar booming in Hawaii as utility launches Quick Connect

    Aloha State homeowners embrace the sun's abundant energy with a little help from their power company.
    Learn more
    Modern passive house with solar panels and white roof for energy efficiency.
    Homeowner Insights

    6 Key Benefits of Creating a Solar-Powered Home

    Has switching your home to solar power become a no-brainer?
    Learn more
    asian family with one child having fun in the woods
    Homeowner Insights

    Why you should unify your home energy system in 2021

    Purchasing the components of your solar & storage system from a single brand has its benefits.
    Learn more
    Sunset over solar panels
    Trends & Technology

    Solar-plus-storage poised to become more financially attractive, but seasonal solutions remain key

    The current and future state of solar power and energy storage in America.
    Learn more
    Father and son hiking through the mountain at sunrise
    Trends & Technology

    4 home renewable energy predictions in 2021

    Panasonic's Dan Glaser gives his residential renewable energy predictions and outlook for 2021.
    Learn more
    Wooden blocks with the word ROI and green arrow up. High level of business profitability. Return on investment, invested capital, rate. Success. Growth. Analytics. Report
    Financial & Incentives

    How quickly will your solar panels pay for themselves?

    Understanding payback period and return on investment of your solar panel purchase.
    Learn more
    Businesswomen discussing by table in office
    Financial & Incentives

    How to accelerate solar adoption for the underserved

    As solar panels have become more affordable, there's no reason home solar has to be exclusive to upper income households.
    Learn more
    Caucasian family sitting in a teepee, reading stories with the flashlight in dark room with toys and pillows. Caucasian models. Home comfort, family, love, Christmas holidays, storytelling time.
    Homeowner Insights

    How Homeowners Can Prepare For Rolling Blackouts

    Common questions and answers about rolling blackouts and solar-powered homes.
    Learn more
    Back to Trends
     

    Thank you for your submission. A Panasonic representative will contact you.

     

    Thank you for your submission. A Panasonic representative will contact you.

    • About Us
    • News
    • Careers
    • Investor Relations
    • Social Impact
    • Contact Us
    • Do Not Sell My Data

    Get the Latest on Panasonic Trends

    Thanks for signing up!

    Connect with us

    • Twitter
    • Facebook
    • Linkedin
    • Instagram Link
    • Youtube

    Select Country/Language

    • United States - English
    • Canada - English
    • Canada - Français
    © 2020 Panasonic Corporation of North America. All Rights Reserved.
    • Privacy Policy
    • Cookie Policy
    • Terms
    • Panasonic Global
    • Consumer
    • Industrial
    Reviewed by Accessible 360
    Reviewed by Accessible 360