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The landmark Inflation Reduction Act, enacted last month, is simultaneously the most significant U.S. climate legislation and not nearly enough to put the issue to rest.

Climate modelers estimate U.S. emissions will now fall 40% below 2005 levels by 2030. However, California still needs to reach its more ambitious goal of net zero by 2045. State and local leaders should implement additional climate policies, particularly targeting emissions from buildings and transportation, that will leverage the IRA and fill the gaps.

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(7) comments

Dirk van Ulden

The pictures of the LTE authors remind me of the 60s song "they smile in your face, but..." While they mention that federal and state aid will never be enough, there is no mention of who is going to pay the bill. Also, while they rattle off the myriad programs that will assist with paying for the all-electric boondoggle, it would be helpful if they could present at least one case that details the requirements for such program eligibility. The rest is just plain wishful thinking. Remember the smiles when you get your all-electric bill and you sit in the dark when the system is curtailing electricity due to inadequate supplies.

ChrisFrank338

A few additional thoughts.

The IRA provides the following rebates: $8k for heat pump space heaters (that also do cooling), $1,750 for heat pump water heaters, and $2,500 for wiring. For low income households (up to 80% of area median income), these rebates will cover 100% of project costs up to those maximums. For moderate income (80% - 150% of AMI), it will cover 50%. Everyone else gets a $2k tax credit for the installation of each heat pump space and water heater (i.e. $4k for both). For more details, see https://www.rewiringamerica.org/policy/inflation-reduction-act. These IRA subsidies are on top of local incentives up to $1,850 for heat pump space heaters and up to more than $3k for heat pump water heaters that are available to all income levels. For more details, see https://incentives.switchison.org/. For low and moderate income households replacing devices at the end of their useful lives, the combination of the IRA and local incentives will cover the combined cost difference between gas and electric for the installation of space and water heating in most cases.

Grid resilience will be a challenge but one that is manageable given that this transition will occur gradually over the next two decades. And as EVs gain greater adoption, they will enhance grid resilience because they will soak up renewable energy during the day when it is abundant and eventually they will be able to send some of it back to the grid during times of stress. On operating costs, migrating loads from gas to electricity will be roughly a wash because while electricity is more expensive than gas per unit of energy, heat pumps are more efficient at converting that energy into heat. Climate change is such a dire problem that we have to take on this transition despite the manageable challenges. It would be grossly negligent to perpetuate our unsustainable fossil gas dependence.

Dirk van Ulden

Thank you Mr. Frank for the information that I was looking for. I feel a lot more comfortable with the efforts that are underway. I am also looking forward to reports from residential utility customers who have made the switch along with and their pros and cons of the process and enduring experience.

ChrisFrank338

Happy to help, Dirk. I'll be swapping my furnace for a heat pump in the new year when the IRA subsidies kick in. Stay tuned for more...

edkahl

Two things have to happen to accommodate proposed reductions in natural gas electrical generation. The first one is an affordable way to store electricity on a massive scale and the second is a huge build out of electrical transmission lines and capacity. We need a realistic plan based on these realities and so far none has surfaced. In the end rate payers will end up paying for politicians grandiose plans.

Terence Y

Here we go again with the push for electrification but as usual, no comment on where this magic electricity will come from. Here’s where - natural gas or other fossil fuel generation plants, along with fossil fuel-based imported electricity. Until then, a massive taxpayer subsidized pipe dream.

Tommy Tee

Come on, man! It's coming from the magical unicorns.

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