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SGC Affordable Housing Sustainable Communities (AHSC)

Scope

AHSC is one of CA’s largest affordable housing development programs, providing grants to projects that are transit-oriented and offer reduced GHG emissions.

Update

Voted to approve new Round 7 Guidelines

Established all-electric construction as the baseline for the program and to no longer fund projects that include natural gas connection.

Timeline

January 17: Notice of Funding Availability (expect around $750m)

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AB 32 Scoping Plan

Scope

AB 32 requires CARB to develop a Scoping Plan that describes the approach California will take to reduce GHGs to achieve the state's climate goals.�

Update

On December 15, CARB approved its 2022 Scoping Plan, which solidified goals including:

ZE new construction: 2026 for res / 2029 for commercial
80% of appliance sales electric for existing resi and commercial buildings by 2030
100% of appliances sales electric for existing resi buildings by 2035
100% of sales are electric for existing commercial buildings by 2045.
Prioritize frontline, low-income, disadvantaged, rural, and tribal communities

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AQMD Appliance NOx Standards

Scope

Bay Area and South Coast AQMDs are investigating the role that zero-NOx appliance standards can play in helping them achieve their Clean Air Act reqs.�

Update

On Dec. 2, SCAQMD voted 9-2 to approve the AQMP.
On March 15, BAAQMD will consider the adoption of proposed amendments to rules 9-4 & 9-6:

Comments are due by 5pm on February 6

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Equitable Building Decarbonization Program

Scope

The CEC is on track to receive ~$1B over the next four years to create an equitable building decarbonization direct-install program to help low-income households transition to zero-emission appliances.

Update

On December 13, CEC held workshop to discuss initial implementation plans and topics to be discussed as part of program scope (workshop recording here)�

Timeline

Request for Information comment deadline extended to January 20 at 5pm here.

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CA Schools Healthy Air, Plumbing, and Efficiency Program (CalSHAPE)

Scope

The CalSHAPE program provides funding to upgrade heating, air conditioning, and ventilation (HVAC) systems in public schools.�

Update

As part of the FY22-23 budget, CalSHAPE received $20m to conduct zero-emission HVAC replacements.
On January 12, CEC held workshop to begin scoping out funds. CEC said they will not fund gas equipment.

Timeline

Workshop comments due here January 26
Draft Guidelines posted March 2023
CEC will adopt Guidelines June 2023

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Key Sacramento Updates

January 4 was the first day of the 2023-2024 Legislative Session for both the Assembly and Senate.�
February 17 is the last day for new bills to be introduced.�
Between now and mid-February, most of the attention in the Legislature will be placed on introducing new legislation. �
Bills introduced this year will have 2 years to make it through the full legislative process.

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CA Budget Process: Overview

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Governor’s January Budget

Based on recent budget projections, the Governor proposed making the following adjustments to the BE money–

Equitable Building Decarbonization Program

A delay of $370m of funds in the current year (originally planned as $665m).
In addition, a reduction of $87m is planned for 2025-26 for this program (originally planned as $92m).
This maintains approximately $835m (91 percent).

Low Global Warming Pollutant Refrigerant

A reduction of $20m in 2023-24 (originally planned as $20m).�

Community Resilience Centers

A delay of $85m to 2024-25.
This program remains fully funded, but the funds would be provided later than initially allocated.

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Questions and Comments?

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Affordable Housing Financing: TCAC & CDLAC

Scope

TCAC and CDLAC are two of the biggest programs that finance the development of affordable housing. The programs' current regulations inadvertently penalize all-electric projects in the funding selection process (see comment letter here).�

Update

Meeting on April 27 to discuss CDLAC

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Clean Energy Financing Options

Scope

PUC examining options to assist customers with investments in clean energy in buildings (more info here)�

Update

Commissioner Vote expected in December, but it’s looking like the PUC might hold off until at least Q1 next year.�

Timeline

Commissioner Vote: December 8th

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Rulemaking on Building �Decarbonization

Scope

A rulemaking to establish a building decarbonization policy framework (more info here).�

Update

CPUC released decision to align TECH program with CARB by delaying requirement for using Low GWP refrigerants from Jan 1, 2023 to Jan 1, 2025.
CPUC seeking input on how they should use new $50m in funding for TECH and whether any changes should be made to implementation / design.�

Timeline

Comments were due October 17.

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EE Natural Gas Incentive Phase Out Staff Proposal

Scope

This staff proposal suggests an orderly transition to phasing out ratepayer-funded energy efficiency (EE) incentives for most natural gas measures over the next 10 years.�

Update

Proposal responds to a motion from the Sierra Club.
Split the proposed policy into four tracks, one for NC, for retrofits, one for custom projects, and one for normalized metered energy consumption (NMEC) programs.
Access Staff Proposal here

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State Implementation Plan

Scope

The 2022 State SIP Strategy details measures and commitments to reduce emissions from state-regulated sources to support attainment of the 70 ppb standard in all federal Clean Air Act nonattainment areas.�

Update

On September 22, CARB Board voted to pass SIP:

Beginning in 2030, 100% of sales of new space and water heaters (for either new construction or equipment replacement of burned-out equipment in existing buildings) would need to meet zero-emission standards.

Timeline

CARB staff committing to engage in a public process and bring an item to the Board by 2025.

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Title 24, 2025 Building Code

Scope

The 2025 Energy Code will set requirements for new construction / alterations to res and nonres buildings, which will go into effect in 2026.�

Update

CEC hosted preliminary workshop to engage w/ stakeholders on cost-effectiveness methodologies.
Enviro stakeholders have voiced concerns that the proposed for the 2025 life-cycle cost hourly factor calculations assumes CA fails to meet climate targets.
This is the first of many workshops to start planning for the 2025 code cycle.

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Self Generation Incentive Program (SGIP)

Scope

SGIP provides incentives to support existing, new, and emerging distributed energy resources.
$84.7 million allocated for HPWHs�

Update

The CPUC voted 5-0 to pass their revised HPWH Program Proposed Decision.�

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BUILD 2.0: CA Electric Homes Program

Scope

The CalEHP program will provide incentives for the construction of new all-electric market-rate residential buildings and installation of energy storage systems.�

Update

The CEC’s grant solicitation to hire a third-party administrator for the CalEHP has been posted and is open for application submission.
The solicitation can be found here and a recording of the pre-application workshop can be found here.�

Timeline

The submission period is until August 1, 2022.

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Governor Action

AB 2204 (Boerner Horvath): Labor/Workforce Development Agency

Establishes the position of Deputy Secretary for Climate within the Labor and Workforce Development Agency (LWDA) to assist in the oversight of CA’s workforce transition to a sustainable and equitable carbon neutral economy.
Signed by the Governor

AB 2446 (Holden): Embodied carbon: construction materials

Requires the CEC develop a framework for measuring and then reducing carbon intensity in the construction to achieve an 40% net reduction below 2020 levels in the carbon intensity of construction and materials used in new construction by 2035, with interim goals.
Signed by the Governor

SB 1020 (Laird): Clean Energy, Jobs, and Affordability Act

Adds interim zero carbon electric sector targets to the existing SB 100 framework, require state agencies to purchase zero carbon electricity by 2045.
Signed by the Governor

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Governor Action

SB 1063 (Skinner): Appliance standards and cost-effective measures

Allows CEC to remove the one-year delay in effective date of new or updated energy and water efficiency standards if the CEC adopts a finding that good cause exists for doing so.
Signed by the Governor�

SB 1112 (Becker): Clean Energy Financing

Provides statutory clarity that the CEC can work with the DOE to use federal funding for innovative and inexpensive financing for zero-emission appliances.
Signed by the Governor

SB 1203 (Becker): Zero Net Emission State Agency Operations

Declares the intent of the Legislature that state agencies achieve zero net emissions of GHGs resulting from their operations by 2035 or soon thereafter & requires them to develop plans by 2026 to achieve this.
Signed by the Governor