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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State and local representatives have good policy levers to tackle emissions from buildings that come from burning fossil gas, mostly for space and water heating. The IRA provides incentives to install electric appliances and there are local incentives too. Programs for low- to moderate-income households are even more generous and, when combined with local incentives, will cover the extra costs of electric space and water heating in most cases; also, costs will likely fall as installations scale. This should give local policymakers the confidence to require that when owners replace gas appliances they do so with electric equivalents, and state lawmakers should set an end date for their sale like the California Air Resources Board recently did for fully gas-powered cars. Most households can electrify using existing electrical panels, but, for those who need service upgrades, the state should ensure low costs and require utilities to respond within days, not months. California should leverage the new federal green bank to expand its own green bank to provide financing for clean technology projects, allowing property owners to spread the cost of retrofits over time at low interest rates. Finally, city councils should set an end date for the flow of gas. Half Moon Bay set an end date of 2045 so property owners and businesses have certainty about the sunset period, giving them time to prepare.
Transportation is California’s top emissions source so policy should encourage people to use climate-friendly modes of transportation as much as possible and to electrify their remaining personal vehicle miles. Cities should continue advocating for robust public transit to minimize wait times and transfers. Not only is this good climate policy, but it is essential for social justice and economic development. E-bikes are an environmentally beneficial substitute for cars, and rebates are a cheap and effective intervention; they fell out of the IRA during negotiations so state and local policymakers should create their own programs. When more people ride, everyone is better off, including drivers. Cities also need to create networks of slow green streets to create corridors for bicyclists and pedestrians to move about confident in their safety. Finally, EV charging will be critical, especially for people who live in multifamily housing who also deserve the chance to benefit from the EV subsidies in the IRA, lower operating costs, enhanced convenience and better performance. Currently, rate plans incentivize charging overnight, but infrastructure should be sited to enable transitioning to daytime charging when renewables are abundant. In the future, EVs will be able to send some of that electricity back to the grid during the evening when we sometimes have flex alerts, enhancing grid resilience.
A number of IRA grant programs are also available and Californians should get their fair share. They include grants for environmental justice projects in disadvantaged communities, zero emissions school and transit buses, pollution reduction at ports, and urban forests and parks. Finally, our public universities should find ways to access the research funding in the IRA.
From the passage of the IRA, to California’s EV transition, to the nearly 60 cities and counties in the state that have adopted some form of all-electric building codes, the tide has turned in favor of climate action. The World Health Organization found that the health benefits associated with mitigating the impacts of air pollution alone far outweigh the costs of meeting the goals of the Paris Agreement. These benefits are in addition to the economic, national security and social justice gains. In a recent survey, the Public Policy Institute of California found that 68% of likely voters favor the state making its own climate policy, separate from the federal government. Climate is a winning issue in California and the Bay Area and our leaders should seize the initiative. Let’s go!
Chris Frank is a Sierra Club Loma Prieta Chapter Climate Action Leadership Team volunteer; Kristel Wickham is the chair of the Sunnyvale Sustainability Commission and Sierra Club Loma Prieta Chapter Climate Action Leadership Team lead; and Lauren Weston is executive director, Acterra: Action for a Healthy Planet.
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.
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.
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.
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.
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.
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(7) comments
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.
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.
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.
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...
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.
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.
Come on, man! It's coming from the magical unicorns.
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