BDC�Policy Call�(For Decarbonizers and Trailblazers)

May 17, 2022

Membership Overview

Agenda

• Proceedings
• May Revise
• Legislature

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 released 2022 Draft Scoping Plan
• 45-day comment period – written comments due here June 24 at midnight.
• CARB will host a public meeting on June 23 at 9am, which could last 2 days
• Workshop notice here

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• Timeline
• May ‘22: Draft Scoping Plan
• Nov ‘22: Adopt final Scoping Plan

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
• South AQMD released their draft AQMP with proposed building control measures.
• Public comments must be submitted by Tuesday, June 21 to AQMPteam@aqmd.gov or through the online comment submission form
• Hosting an in-person/virtual workshop on May 25 at 1pm and virtual-only workshop on May 25 at 6pm (more info here)

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AQMD Appliance NOx Standards

• Proposed building control measures:
• Residential & commercial water heating / space heating: rule for zero emissions and allow low-NOx as transitional alternative when installing a zero emission unit is determined infeasible + incentives
• Residential + commercial cooking: 1) technology assessment of emissions testing of various cooking devices to establish emissions rates, 2) rule development and incentive programs
• Proposed Dates:
• Residential rules: adoption in 2024, implementation in 2029
• Commercial space/water/cooking: adoption in 2025, implementation in 2031

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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
• SGC released their Round 7 Policy Discussion Document & program proposing to require all-electric construction w/ no natural gas hook-up (!!!)
• Comments due May 31 to AHSC@sgc.ca.gov
• Timeline
• Summer 2022: Draft (Redline) Guidelines
• October 2022: Final Draft Guidelines

Governor’s May Revise

• On May 13, Governor Newsom released an update to his January Budget
• He announced $8 billion over five years to increase the state's energy system reliability and provide consumers with relief from rising electricity rates.
• This is In addition to the $2 billion allocated in the January Budget
• This proposal will move negotiations with Assembly and Senate into high gear

Governor’s May Revise

January Budget

• Other relevant funding in May Revise:�
• $170m for Community Resilience Centers�
• $1.8 billion to repair and restore schools and upgrade inefficient cooling, heating, water, and other energy and resource systems

CA Budget Process: Overview

Key Dates in the Legislature

• May 19 – Legislature will host Senate and Assembly Suspense File Hearings
• May 27 – Last day for each house to pass bills introduced in that house.
• June 15 – Budget Bill must be passed by midnight.
• July 1 – Last day for policy committees to meet and report bills.

On the Suspense Files

• AB 2076 (Rivas): Extreme Heat Resilience Program
• Creates an Extreme Heat Resilience Program at OPR.

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• AB 2597 (Bloom): Mandated Cooling
• Requires homes to maintain adequate cooling.�
• 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.

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• 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 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 2030, establishes the Climate and Equity Trust.

On the Suspense Files

• 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 no later than January 1, 2035 & require them to develop plans by 2025 to achieve this. �
• SB 1261 (Stern): Extreme Heat Assistance Program
• Requires CEC 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 1393 (Archuleta): Require a local government, within 60 days of adopting that ordinance, to submit to the commission a copy of the ordinance. If the commission determines that the local government had not considered the guidance, the bill would require the local government make any modification of the ordinance deemed necessary and resubmit the ordinance to the commission

Questions and Discussions?

Clean Energy Financing Options

• Scope
• PUC examining options to assist customers with investments in clean energy in buildings (more info here)�
• Update
• April 15 was the deadline for stakeholders to submit their clean energy financing proposals.
• In May, the PUC will host workshops for stakeholders to present their submitted proposal.
• Slides from the March 25 workshop can be accessed here – stakeholders presented their proposal summaries.
• Timeline
• Q3 ‘22: Proposed Decision

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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Staff Workshop on Heat Pumps

• Scope
• On April 5, the CEC hosted a staff workshop to discuss next steps in building decarbonization goals with heat pump manufacturers, distributors, program implementers, and interested stakeholders.�
• Update
• Opportunity to support CEC’s proposed 6 million heat pump by 2030 goal.
• Workshop recording and resources available here.
• Written comments due here at 5pm on April 19 – still worthwhile to submit late 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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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

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

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.

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

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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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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