BDC�Policy Call�(For Decarbonizers and Trailblazers)

January 18, 2022

OUR MEMBERS

Membership Overview

Agenda

• Administration
• Proceedings
• Legislature

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Governor Newsom’s January Budget

The Governor proposed the following budget allocations for 2022:�

• $622.4M for low-income direct-install building retrofit program�
• $300M for consumer rebates for building upgrades�
• $40M for low-GWP refrigerants�
• $300M extreme heat set aside for cooling schools and building climate smart workforce�
• $25M for Low-Income Weatherization Program�

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
• CEC released their draft IEPR, which CEC is now accepting comments on.

CARB 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
• CARB hosted their Building Decarbonization workshop on Dec. 13 (access recording and slides here), which had 3 panels:
• (1) Existing building decarb efforts �(2) Consumer costs and market trends�(3) Opportunities to advance decarb
• Comments due January 21�
• Timeline (CARB released updated timeline)
• May ‘22: Draft Scoping Plan
• Nov ‘22: Adopt final Scoping Plan

Self Generation Incentive Program (SGIP)

• Scope
• SGIP provides incentives to support existing, new, and emerging distributed energy resources. 
• $44.67M allocated for HPWHs�
• Update
• CPUC considering additional $40M for HPWH program�
• Timeline
• CPUC anticipates PD on HPWH program in Q1 of 2022

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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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Legislature

• January 3 – Legislature reconvened�
• February 18 – Last day for bills to be introduced�
• Relevant legislation moving/introduced:
• AB 1240 (Ting): Indoor Air Pollution
• Requires CARB to update their report on indoor air pollutants and their associated health impacts
• SB 833 (Dodd): Community Energy Resilience Act of 2022
• Requires CEC to implement a grant program for local governments to develop community energy resilience plans

Questions and Discussions?

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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CARB 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 October 19 (3-6pm), CARB will host a workshop to review their draft measures.
• Draft measures include 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.�
• Timeline
• Winter ‘22: Release draft SIP strategy
• Summer ‘22: Board consideration of final SIP strategy

Clean Energy Financing Options

• Scope
• PUC examining options to assist customers with investments in clean energy in buildings (more info here)�
• Update
• Scoping memo released here, including scoping around:
• How to best support clean energy resources
• What specific goals and topics should be adopted
• Marketing, education, and outreach
• How to design scalable financing options
• Alignment with existing programs
• Potential rate impacts�
• Timeline
• May 10, ‘21: SCE-led overview of existing IOU financing programs
• Q3/Q4, ‘21: Potential workshop on scalability or expansion of existing programs; will also seek new financing proposals
• Q3, ‘22: Proposed Decision

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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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Electrification Rates

• Scope
• En Banc centered around CPUC-authored whitepaper on California electric and gas cost and rate trends over the next decade.
• Update
• En Banc highlighted important role building decarb will play in stabilizing rates in the coming years for low-income households (page 81 of the report)
• Stakeholders can access the webinar at this link.

Announcements

• Join us for a Members Only Happy Hour with California Natural Resources Secretary Wade Crowfoot
• Tomorrow, Nov 17, 2021 04:00 PM
• Register here!

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• No Policy Call December 2021
• Register for next year’s Policy Calls - now via Zoom

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