BDC�Policy Call�(For Decarbonizers and Trailblazers)

March 15, 2022

OUR MEMBERS

Membership Overview

Agenda

• Proceedings
• Budget
• Legislature

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
• CEC hosting workshop (March 17, 10-12pm) to solicit public comment and stakeholder feedback on the proposed guiding principles
• Access workshop information here�
• Timeline
• August ‘22: Tentative program launch

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
• ARB hosting workshop today (March 15, 8:30-3pm), covering initial modeling results.
• Access presentations and recordings here�
• Timeline
• May ‘22: Draft Scoping Plan
• Nov ‘22: Adopt final Scoping Plan

Clean Energy Financing Options

• Scope
• PUC examining options to assist customers with investments in clean energy in buildings (more info here)��
• Update
• On March 25 at 9:30am, the IOUs and non-IOU stakeholders will present their clean energy financing proposals at a high level
• Access workshop information here�
• Timeline
• Q3 ‘22: Proposed Decision

Affordability Proceeding

• Scope
• Phase 3 of this proceeding is dedicated to further consideration of strategies to limit and/or mitigate future energy rate increases.�
• Update
• On Feb 28/March 1, the CPUC hosted a 2-day En Banc on Electric and Natural Gas Costs and Rates to further evaluate affordability proposals to ensure California can modernize its energy system while maintaining affordable bills for ratepayers.
• Access presentation and recordings here�
• Timeline
• Q1 ‘22: Staff Proposal
• Q2/Q3 ‘22: Proposed Decision

California Budget

• Now is the time for stakeholders to support Governor's equitable building decarbonization proposed funding:
• $622.4M for low-income direct-install building retrofit program
• $300M for consumer rebates for building upgrades�
• As well as push the state to allocate an additional �$1 billion in funds to support environmental justice communities through the construction of and holistic upgrades to community resilience centers.�
• Coalition members can support this effort by signing on to this budget request letter by March 16 at 2pm.

Introduced Legislation

• AB 1240 (Ting): IAQ Study
• Requires CARB to submit a report to the Legislature on indoor air pollution.
• AB 2076 (Rivas): Extreme Heat Resilience Program
• Creates an Extreme Heat Resilience Program at OPR.
• AB 2238 (Rivas): Extreme Heat Ranking System
• Requires CalEPA to create an extreme heat ranking system and requires Department of Insurance to conduct a study of the costs related to past extreme heat events.
• AB 2597 (Bloom): Mandated Cooling
• Requires homes to maintain adequate cooling.
• SB 560 (Rubio): Low-income Appliance Retrofit Program
• Creates a CEC low-income appliance retrofit program.
• SB 1026 (Wieckowski): Rental Energy Efficiency Disclosure
• Legislation related to solving the “split-incentive” issues that deter landlords from making energy efficiency upgrades for rental housing.
• SB 1039 (Wieckowski): Clean Energy / Pollution Reduction
• Spot bill related to clean energy and pollution reduction goals.

Introduced Legislation

• SB 1112 (Becker): Clean Energy Financing
• Potential vehicle to provide statutory clarity that the CEC can work with the DOE to use federal funding for innovative and inexpensive financing for zero-emission appliances.
• SB 1164 (Stern): Statewide HVAC Installation Compliance Report
• Requires CEC to submit a report to the Legislature to support statewide HVAC installation compliance and permitting.
• SB 1261 (Stern): Extreme Heat Assistance Program
• Requires CEC and CNRA to create a residential building extreme heat mitigation assistance program.
• SB 1297 (Cortese): Embodied Carbon & Carbon Sequestration
• Requires CARB to develop a plan to advance low-carbon materials and methods in building and construction projects
• SB 1301 (Becker): Building Performance Standards
• Intent bill related to enact building performance standards for energy and water efficiency.
• SB 1393 (Archuleta): Limitations on Existing Building Reach Codes
• Requires local jurisdictions to receive approval from CEC before they can move forward with requiring all-electric appliance retrofits for existing building

Questions and Discussions?

State Implementation Plan

• Scope
• CARB is collaborating with local air districts on development of regional SIPs to comply with the Clean Air Act and soliciting stakeholder input on the development of the 2022 State SIP Strategy.�
• Update
• On February 10, CARB hosted a workshop to review their draft State Implementation Plan.
• Draft SIP includes CARB adopting a statewide zero GHG emission standard. Beginning in 2030, 100 percent of sales of new space heaters and water heaters would need to comply with the emission standard.

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• Timeline
• Summer ‘22: Board consideration of final SIP strategy
• If the SIP passes as is, CARB staff proposes to commit to engage in a public process and bring an item to the Board by 2025.

Self Generation Incentive Program (SGIP)

• Scope
• SGIP provides incentives to support existing, new, and emerging distributed energy resources. 
• $44.67M allocated for HPWHs�
• Update
• The CPUC released their Proposed Decision on February 11; comments are due within 20 days (March 3).�
• Timeline
• CPUC can vote on the proposed decision as early as the March 17 Business Meeting.

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SCE Funding Application

• Scope
• SCE filed a $677 million Building Electrification Application with the CPUC for approval of its 2024-2027 programs. The objective of the application is to support the state’s climate goals and the rapid adoption of heat pumps (more info here)��
• Update
• The portfolio adoption targets include installing 250,000 electric heat pumps and providing 65,000 households in SCE’s service area with electrical upgrades.

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• Timeline (proposed)
• September ‘22: Proposed Decision
• November ‘22: Final Commission Decision

AQMD Appliance NOx Standards

• Scope
• Bay Area and South Coast Air Quality Management Districts are investigating the role that ultra-low or zero-NOx appliance standards can play in helping them achieve their Clean Air Act requirements�
• Update
• Bay Area AQMD announced they will be delaying their rule to Q2-Q3 of 2022
• South Coast AQMD released their proposed control measures for their 2022 AQMP
• Includes proposed zero-emission regulatory approaches for residential/commercial space heating, water heating, and dryers.

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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
• In February, SGC released their final guidelines, which:
• Increased the points awarded for all-electric buildings by five (for a total of seven)
• Includes partial points for near-electric projects
• Staff has committed to an all-electric requirement in the next round of guidelines
• Timeline
• February 24: Final guidelines adoption at upcoming Council meeting

CEC Load Management �Standards (SB 49)

• Scope
• CEC to consider amendments to the load management regulations to facilitate the deployment of flexible demand technologies�
• Update
• Dec. 14: CEC hosted a workshop gathering feedback from stakeholders on flexible demand needs and considerations

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• Timeline
• Workshop comments due Jan. 4 at 5pm
• Initial report in IEPR 2020
• Begin rulemaking early next year

Rulemaking on Building �Decarbonization

• Scope
• A rulemaking to implement SB 1477, develop pilot programs for construction in wildfire-damaged areas, coordinate CPUC policies with Title 24 / Title 20, and establish a building decarbonization policy framework (more info here)�
• Update
• The PUC released their final decision on incentive layering, the wildfire and natural disaster resiliency rebuild program, and rate adjustment for HPWHs.

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SB 1477

• Scope
• $80M for BUILD Program (offers incentives �for builders to “build clean from the start”)
• $120M for TECH Initiative (spurs market development for decarbonized technologies)�
• Update
• CEC held workshop on BUILD Program design (access program design and presentation here) – Comments due September 30
• TECH hosted webinar on their Tariffed On-Bill Pilot (link to recording)
• Timeline
• BUILD expected to launch statewide in early Q1 2022

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CA Budget Process: Overview

Integrated Energy �Policy Report (IEPR)

• Scope
• Provides a cohesive approach to identifying and solving the state’s pressing energy needs and issues and develops and implements energy plans and policies.�
• Update
• The CEC released the final IEPR, including Volume I on Building Decarbonization:
• Sets target for 6 million heat pumps by 2030.
• The CEC will vote on Volumes I, II, IV, and the Appendix at their February 16 business meeting.
• Volume III (natural gas section) will be approved at the March 9 business meeting.

PUC Natural Gas Proceeding

• Scope (More info here)
• Examine reliability standards and proposals to mitigate the negative impact of operational issues for the gas transmission system (Track 1A/1B)
• Determine the long-term regulatory solutions �and planning strategy the Commission should implement (Track 2)�
• Update
• Jan 10: CPUC hosted first workshop for Track 2A
• Jan 24: CPUC hosting part 2 of workshop (link here)
• Materials and recordings can be accessed here�
• Timeline
• November 2022: PD for Track 2A

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