Legislative & Regulatory Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Wednesday, August 28, 2024
10:00am
Visit CPA’s YouTube Channel to view a Live Stream of the Meeting www.youtube.com/@CPApublicmeetings
*There may be a streaming delay of up to 90 seconds. This is a view-only live stream.
Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Members of the public may also participate in this meeting at the following locations:
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
Manhattan Beach City Hall
City Manager Conference Room
1400 Highland Avenue
Manhattan Beach, CA 90266
Carson City Hall
City Manager’s Conference Room
701 East Carson Street
Carson, CA 90745
LA County Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
City of West Hollywood
3rd Floor City Manager’s Conference room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
PUBLIC COMMENT: Members of the public may submit their comments by one of the following options:
• Email Public Comment: Members of the public are encouraged to submit written comments on any agenda item to [email protected] up to four hours before the meeting. Written public comments will be announced at the meeting and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting. • Provide Public Comment During the Meeting: The General Public Comment item is reserved for persons wishing to address the Committee on any Clean Power Alliance-related matters not on today’s agenda. Public comments on matters on today’s Consent Agenda and Regular Agenda shall be heard at the time the matter is called. Comments on items on the Consent Agenda are consolidated into one public comment period. Members of the public who wish to address the Committee at CPA’s Office are requested to complete a comment card and provide it to staff. If you are attending from a remote location, please identify yourself to a CPA representative when your item is called. Each speaker is limited to two (2) minutes (in whole-minute increments) per agenda item with a cumulative total of five 5 minutes to be allocated between the General Public Comment, Agenda Page 1
the entire Consent Agenda, or individual items in the Regular Agenda. Please refer to Policy No. 8 – Public Comment for additional information.
NAVIGATING OUR AGENDA PACKETS
The meeting agenda packets are bookmarked PDFs, which display a list of agenda items to the left of the page and allow you to click to view specific items within the packet. If viewing in your browser, click the "document outline" button in the upper left corner of the screen. If the PDF is downloaded, the bookmark panel (ribbon icon) appears on the left side of the screen.
ACCESSIBILITY: Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least two (2) working days before the meeting at [email protected] or (213) 713- 5995. Notification in advance of the meeting, while not required, will enable us to make reasonable arrangements to ensure accessibility to this meeting and the materials related to it.
CALL TO ORDER AND ROLL CALL
GENERAL PUBLIC COMMENT
CONSENT AGENDA
1. Approve Minutes from the March 27, 2024 Legislative & Regulatory Committee Meeting
REGULAR AGENDA
2. Oral Report on the End of the 2024 California Legislative Session
3. Receive Presentation on Proposition 4 – the Safe Drinking Water, Wildlife Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 and Provide Direction
4. Receive Presentation on the South Coast Air Quality Management District Proposed Amended Rules and Provide Direction
COMMITTEE MEMBER COMMENTS
ADJOURN – NEXT MEETING ON SEPTEMBER 25, 2024
Public Records: Public records that relate to any item on the open session agenda for a regular Board Meeting are available for public inspection. Those records that are distributed less than 72 hours prior to the meeting are available for public inspection at the same time they are distributed to all, or a majority of, the members of the Board. Those documents are available for inspection at CPA Offices, 801 S. Grand Ave, Suite 400, Los Angeles, CA 90017 or online at www.cleanpoweralliance.org/agendas.
Agenda Page 2
Staff Report – Agenda Item 1
To: Legislative & Regulatory Committee
Subject: Approve Minutes from the March 27, 2024 Legislative & Regulatory Committee Meeting
Date: August 28, 2024
RECOMMENDATION
Approve.
ATTACHMENT
1. Minutes
Agenda Page 3
Legislative & Regulatory Committee Item 1
MINUTES
Legislative & Regulatory Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, March 27, 2024, 10:00 a.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee Members participated in this meeting from the following locations:
Agoura Hills City Hall
Planning Conference Room
30001 Ladyface Court
Agoura Hills, CA 91301
Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Manhattan Beach City Hall
City Manager Conference Room
1400 Highland Avenue
Manhattan Beach, CA 90266
Los Angeles County
Hall of Administration
Sybil Brand Conference Room, Room 372
500 West Temple Street
Los Angeles, CA 90012
City of West Hollywood
3rd Floor City Manager’s Conference Room
8300 Santa Monica Blvd.
West Hollywood, CA 90069
CALL TO ORDER & ROLL CALL
Chair Deborah Klein Lopez called the meeting to order at 10:00 a.m. and Gabby Monzon, Clerk of the Board, conducted roll call. Incoming Chair Cedric Hicks presided over the meeting.
Roll Call
Agoura Hills Deborah Klein Lopez Committee Chair Remote Carson Cedric Hicks Committee Member Remote
Los Angeles
County Lindsey Horvath Committee Member Remote
Manhattan Beach Amy Howorth Committee Member Absent
West Hollywood John Erickson Committee Member Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
Agenda Page 4
Legislative & Regulatory Committee Item 1
CONSENT AGENDA
1. Approve Minutes from the February 28, 2024, Legislative & Regulatory Committee Meeting
Motion: Chair Klein Lopez, Agoura Hills
Second: Committee Member Horvath, Los Angeles County
Vote: The consent agenda was approved by a roll call vote.
REGULAR AGENDA
2. 2024 California Legislative Update
Gina Goodhill, Sr. Director, Government Affairs, updated the Committee on the main themes at the legislature, including affordability, building and vehicle decarbonization, transmission and distribution, infrastructure, the climate bond, and the budget deficit.
Regarding the climate bond, Committee Member Horvath expressed the importance of advocating for energy infrastructure as an affordability measure.
Committee Member Horvath also noted that proposed budget cuts shouldn’t cause extended delays in implementing climate goals and emphasized that lack of funding should not delay customer programs addressing extreme heat throughout the county and the state.
3. Provide Direction to Staff on whether CPA should take a Support Position on Assembly Bill 1176 and, if so, recommend that the Board of Directors Approve a Support Position On Assembly Bill 1176.
Gina Goodhill, Sr. Director, Government Affairs, explained that AB 1176 is a planning bill. Overall, the bill aligns with many of CPA’s goals. However, it would require that cities and counties that still need a climate action plan create one, which may be challenging for smaller cities. In CPA’s service territory, about half of member agencies have adopted a climate action plan, a variety of electrification plans, or specific building decarbonization plans; yet there are remaining member communities that have not adopted any plans and would be required to do so under the bill.
Acting Chair Hicks shared concern for communities who did not have a climate action plan or may not have the resources to put one together; asked if CPA was able to assist member agencies in putting a plan together or the availability of other legislative funding for smaller cities. Ms. Goodhill noted that CPA does not have the capacity to assist in creating these types of plans. However, it can help connect member agencies to organizations that specifically draft or model plans that local cities can adopt. Committee Member Horvath added that the Strategic Growth Council and CARB are some entities that can support cities that need it. Committee Member Horvath expressed support for the bill, which aligns with organizational goals, reiterating the importance of supporting cities needing new plans. Chair Klein Lopez asked why the League of Cities has opted to stay neutral, given that it’s in everyone’s interest to have a plan to meet mandated climate goals. Ms.
Goodhill explained that staff discussed with the League, and the League indicated they were able to take a neutral position because the bill was amended to remove several burdensome requirements; however, other additional requirements in the Agenda Page 5
Legislative & Regulatory Committee Item 1
bill and the lack of funding for cities have prompted them to refrain from a support position. Chair Klein Lopez also asked if it were possible for cities without a specific plan to utilize their counties’ climate action plan. Ms. Goodhill indicated the bill did not address that; however, if a county’s plan meets the climate goals and the city adopts the county’s plan, that may fulfill the bill’s requirements.
Chair Klein Lopez expressed support for the bill, noting it will prompt many cities to begin developing climate plans. While CPA is an example of how cities are addressing climate goals, funding is an ongoing concern, and mandating climate action plans can be burdensome for smaller cities. Chair Klein Lopez suggested that if the bill were to be discussed at the Board level, it would be insightful to get the author’s perspective on funding. Ms. Goodhill added that CARB also has a scoping plan with a local action appendix that municipalities may use to start a climate plan. Committee Member Erickson shared that West Hollywood has a climate action dashboard where the public can see its progress, creating a sense of urgency in meeting climate goals.
Acting Chair Hicks summarized the consensus noting the Committee is in support of the bill, noting that smaller cities that cannot afford to adopt plans may utilize their county’s action plans. Acting Chair Hicks also agreed with Committee Member Erickson as far as tracking and making it accessible to the public, showing how it is helping the community.
Motion: Committee Member Erikson, West Hollywood
Second: Chair Klein Lopez, Agoura Hills
Vote: A support position on Assembly Bill 1176 was approved by a roll call vote.
COMMITTEE MEMBER COMMENTS
None.
ADJOURN
Acting Chair Hicks adjourned the meeting at 10:32.
Agenda Page 6
Staff Report – Agenda Item 2
To: Legislative & Regulatory Committee
From: Gina Goodhill, Senior Director, Government Affairs Approved By: Ted Bardacke, Chief Executive Officer
Subject: Oral Report on the End of the 2024 California Legislative Session Date: August 28, 2024
Staff will provide an oral report on the item.
Agenda Page 7
Staff Report – Agenda Item 3
To: Legislative & Regulatory Committee
From: Gina Goodhill, Senior Director, Government Affairs Approved By: Ted Bardacke, Chief Executive Officer
Subject: Proposition 4
Date: August 28, 2024
RECOMMENDATION
Provide direction to staff on position on Proposition 4.
BACKGROUND
In the November 2024 General Election, California voters will vote on Proposition 4, the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024. The measure would authorize $10 billion in general obligation bonds for drought, flood, water resilience, wildfire and forest resilience, biodiversity, climate smart agriculture, park and open space, and more.
The $10 billion would be allocated as follows:
• $3.8 billion for drought, flood, and water supply
• $1.5 billion for forest health and wildfire prevention • $1.2 billion for sea-level rise and coastal areas
• $1.2 billion for land conservation and habitat restoration • $850 million for energy infrastructure
• $700 million for park creation and outdoor access programs • $450 million for extreme heat mitigation programs; and • $300 million for farms and agriculture
Agenda Page 8
Legislative & Regulatory Committee Item 3
Proposition 4 would also require that 40% of the bond revenue be used to fund activities that benefit communities with lower incomes or that are affected by environmental changes or disasters.
Of these allocations, the most relevant to CPA, as detailed in the authorizing legislation SB 867 (Allen), include:
- Energy Infrastructure ($850 million)
o Transmission Lines: $325 million for clean energy transmission projects necessary to meet the state's clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects.
Preference may be given to projects that provide multiple benefits, including reducing the risk of wildfire, reducing reliance on fossil fuel plants in disadvantaged communities, and reducing rate pressure, including reconductoring and other grid enhancing technologies.
o Battery Storage: $50 million to support the Long-Duration Energy Storage Program, including zero-emission distributed energy backup assets, virtual power plants, and demand side grid support.
o Offshore Wind: $475 million to support various activities related to offshore wind, including construction of port facilities for manufacturing, assembly, staging and integration of wind generation components; and expansion and improvements of port infrastructure to accommodate vessels involved in the installation, maintenance, and operation of offshore wind generation. - Wildfire and Forest Resilience ($1.5 billion)
o Uses to reduce wildfire risk related to electricity transmission: $35 million - Extreme Heat ($450 million)
o Community Resilience: $60 million to the Office of Emergency Services and the Strategic Growth Council for competitive grants for the creation of strategically located community resilience centers across diverse regions of the state at eligible community facilities.
o The remainder of the funding will go to activities to minimize the heat island effect, including urban greening; grants for local communities to conduct Agenda Page 9
Legislative & Regulatory Committee Item 3
activities that provide environmental benefits, such as reducing air pollution; and upgrades to fairgrounds to enhance their abilities to act as a resilience center.
The bond would increase state costs by about $400 million annually for 40 years to repay the bond. It is not known if it would directly impact CPA expenses or CPA customer bills, though analysis by the Legislative Analyst finds that Proposition 4 likely would result in savings to local governments. Per CPA’s 2024 Legislative and Regulatory Policy Platform, the Legislative and Regulatory Committee and Board of Directors must review and approve any policy position that would raise taxes. Given the long-term impact on the state’s general fund and the legal requirements surrounding public agencies taking positions on ballot measures (see below), staff believes that for CPA to take a position on Prop 4, the full Board would need to make that decision.
Local public agencies such as CPA may take a position at a public meeting on a ballot measure. After that, they may provide accurate, factual and impartial information to the public about a ballot measure. Regardless of the position they take, public agencies may not expressly advocate for a “yes” or “no” vote on the measure or disseminate information that urges a particular vote.1 Importantly, public resources cannot be used for ballot measure campaign activities but can be used for information activities. Campaign activities support or oppose a ballot measure, while information activities provide accurate context and facts about a ballot measure to voters.
Proposition 4 is currently supported by a diverse array of groups including:
• American Clean Power – California
• Associated General Contractors of California
• Bay Area Council
• CAL FIRE Firefighters
• California Council of Land Trusts
1 Institute for Local Government, “Ballot Measures and Public Agencies.” www.ca-ilg.org/sites/main/files/file-attachments/ballot_measures_and_public_agencies.pdf Agenda Page 10
Legislative & Regulatory Committee Item 3
• California Federation of Labor Unions
• California State Park Rangers Association
• California State Parks Foundation
• California Professional Firefighters
• California Teachers Association
• California Water Association
• City of Long Beach
• Clean Water Action
• Coalition for Clean Air
• League of California Cities
• League of Women Voters of California
• Peace Officers Research Association of California
• Resources Legacy Fund
• San Diego County Water Authority
• Save the Redwoods League
• Silicon Valley Leadership Group
• The Nature Conservancy
• Trust for Public Land
Proposition 4 is opposed by the Howard Jarvis Taxpayers Association. A few CCAs – Ava, Silicon Valley Clean Energy, and San Jose Clean Energy – are considering a support position. Most other CCAs are declining to take a position given the legal restrictions.
DISCUSSION
CPA closely tracked the authorizing legislation for this bond measure, SB 867 (Allen), and educated legislators about the importance of focusing funding on measures that could reduce ratepayer costs, including electricity infrastructure, transmission, and wildfire mitigation. CPA and others were largely unsuccessful in focusing the authorizing legislation on building energy infrastructure that would ultimately slow the momentum of rising customer rates.
Agenda Page 11
Legislative & Regulatory Committee Item 3
Proposition 4 aligns with CPA’s 2024 Legislative and Regulatory Policy Platform, specifically principles 2e, 2f, 3d, 5a, 5c, and 5d.
ATTACHMENTS
1. 2024 Legislative and Regulatory Policy Platform
Agenda Page 12
2024 Legislative and Regulatory Policy Platform
Overview and Purpose
The Clean Power Alliance (CPA) Legislative and Regulatory Policy Platform (Platform) serves as a guide to the CPA Board of Directors and CPA staff in their advocacy efforts and engagement on policy matters of interest to CPA. The Platform allows both members of the CPA Board of Directors and CPA staff to pursue actions at the regional, state and federal legislative and regulatory levels in a consistent manner and with the understanding that they are pursuing actions in the best interest of the organization and its mission, its member agencies, and its customers.
The Platform provides direction to CPA staff on positions that should be taken on regulatory matters and legislative bill proposals. The Platform also provides guidance to the Chief Executive Officer on positions that should be taken on legislative and regulatory matters that come before the California Community Choice Association (CalCCA) Board of Directors.
CPA staff report to the Board monthly on all positions taken on legislative bills. For bills that fall outside the scope of this platform; bills that are likely to attract high-profile supporters and detractors, including bills that would modify the California Environmental Quality Act (CEQA); bills that would raise taxes; or bills that would knowingly put CPA at odds with positions that its member agencies have taken, CPA staff will seek approval of a proposed position to the Legislative & Regulatory Committee and Board of Directors before taking a position.
Policy Principles
The Legislative and Regulatory Policy Platform is centered around five basic principles:
1. Protecting CPA’s local control and competitive position, especially as it relates to rates, finances, power procurement and expansion of its service territory.
2. Pursing power resource planning and procurement that promotes the growth in renewable energy capacity at the local level and reduce fossil fuel dependency, with the goal of combating climate change.
3. Developing and administering customer programs that encourage clean energy adoption by CPA customers.
4. Ensuring fair access to data, particularly as it relates to energy usage, billing, and information needed to develop and administer customer programs.
5. Supporting CPA’s ability to set electric rates and offer programmatic services that are affordable and inclusive for all.
These principles are incorporated throughout the below platform.
Agenda Page 13
Policy Platform
1. Affordability and Local Control
a. Fair rates and cost allocation: CPA will pursue administrative and legislative initiatives that will ensure that non-bypassable charges for CPA customers, including any income-graduated fixed charges, are assessed fairly compared to unbundled customers and that CPA’s customers are not unnecessarily burdened by non-bypassable charges compared to unbundled customers. b. Finances: CPA will pursue administrative and legislative initiatives to ensure that CPA is eligible to apply and receive funding made available to the electricity sector for decarbonization, reliability, and affordability purposes, and that CPA’s financial health are not disparately impacted by new regulations.
c. CCA Expansion: CPA will pursue administrative and legislative initiatives to protect CPA’s ability to expand its service to new member agencies. d. Local Control: CPA will pursue administrative and legislative initiatives to protect CPA Board’s authority over CPA’s procurement, rate-setting, governance, and customer program development activities.
2. Power Resources Planning and Procurement
a. Resource Adequacy and Reliability: CPA will pursue administrative and legislative initiatives that will enable CPA to secure capacity resources to meet its reliability obligations, such as initiatives that evaluate the supply of capacity resources available to load serving entities (LSEs), determine the appropriate market mechanisms for LSEs to procure capacity resources, and develop a durable policy framework that encourages all LSEs to construct their fair share of new capacity resources to maintain grid reliability while pursuing decarbonization efforts. b. Carbon-Free Resources: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to procure carbon-free resources to meet or exceed the needs of CPA’s three product offerings and its long-term carbon-free procurement goal as required by SB 100 and other statutory or regulatory obligations. c. Renewable Resources: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to procure eligible Renewable Portfolio Standard (RPS) resources to meet the needs of CPA’s three product offerings and its long-term RPS procurement goal as required by SB 100 and other statutory or regulatory obligations.
d. Integrated Resource Plan: CPA will pursue administrative and legislative initiatives that will maximize CPA’s ability to plan and procure resources to meet various environmental and reliability goals set by state laws and by its Board of Directors, while offering affordable products and programs to serve its customers, including disadvantaged communities.
e. Transmission: CPA will pursue administrative and legislative initiatives that will expedite new transmission infrastructure needed to meet California’s climate goals, as well as initiatives that will provide CPA adequate access to transmission capacity to maximize its procurement of RPS-eligible or carbon-free resources that meet various statutory and regulatory requirements.
f. Research & Development: CPA will pursue administrative and legislative initiatives that support the research and development of new energy resources that can be procured to meet the reliability and decarbonization goals set by the State and its Board of Directors.
Agenda Page 14
g. Grid Reliability: CPA will pursue administrative and legislative initiatives that support the expansion of a regional grid that improves reliability; accelerates decarbonization; improves transmission planning; reduces costs for ratepayer and load serving entities; maintains California’s ability to set, meet and implement its own climate goals; and protects clean energy jobs within the State.
3. Customer Programs
a. Demand Response, Demand Flexibility and Energy Efficiency: CPA will pursue administrative and legislative initiatives that will enable CPA to pursue demand response programs and opportunities for its customers.
b. Zero-emission vehicles: CPA will pursue administrative and legislative initiatives to promote electrification of the transportation sector in response to state and federal goals aimed at increasing the usage of zero emission vehicles. c. Building decarbonization: CPA will pursue administrative and legislative initiatives that support the ability of CPA to promote statewide building decarbonization, primarily through electrification.
d. Local Grid Management and Resiliency: CPA will pursue administrative and legislative initiatives that supports the ability of CPA and its member agencies to offer local grid management and resiliency solutions to increase local reliability and adaptability that could protect against power outages and extreme heat. e. Distributed Energy Resources: CPA will pursue administrative and legislative initiatives that support the ability of CPA to offer and utilize distributed energy resources as part of its reliability, resiliency and community engagement strategies. f. Research and Development: CPA will pursue administrative and legislative initiatives that support the ability of CPA to explore new opportunities related to behind the meter clean energy resources.
4. Data Access
a. Timely and Accurate Access to Customer Data: CPA will pursue administrative and legislative initiatives that will enable CPA to obtain timely and accurate access to its customers’ data to improve billing accuracy and inform the development and implementation of customer programs.
b. Fair Fees for Data Management Services: CPA will pursue administrative and legislative initiatives to ensure that the fees due to Southern California Edison for data access and management are fairly assessed based on data needs and potential technological improvements.
5. Diversity, Equity, Inclusion
a. Customer Protection: CPA will pursue administrative and legislative initiatives that support the protection of all ratepayers, particularly environmental and social justice communities in CPA’s service territory.
b. Supplier Diversity: CPA will pursue administrative and legislative initiatives that supports supplier diversity in CPA’s contracting activities and through women-owned, minority-owned, disabled-veteran-owned, and lesbian, gay, bisexual, and/or transgender owned business enterprises.
c. Workforce Development: CPA will pursue administrative and legislative initiatives that support workforce development with a focus on new stable, well-paying local jobs, and participation in a just transition to a low-carbon economy.
Agenda Page 15
d. Energy Equity: CPA will pursue administrative and legislative initiatives that supports increased access to clean energy technologies, clean energy and contracting jobs, and clean energy opportunities for environmental and social justice communities in CPA’s service territory.
e. Access to the Electrical Grid: CPA will pursue administrative and legislative initiatives that support reducing timelines in interconnection and service extensions for new construction, critical services, renewable energy, building decarbonization, and other projects in CPA’s service territory.
Agenda Page 16
Staff Report – Agenda Item 4
To: Legislative & Regulatory Committee
From: Gina Goodhill, Senior Director, Government Affairs Approved By: Ted Bardacke, Chief Executive Officer
Subject: South Coast Air Quality Management District Proposed Amended Rules
Date: August 28, 2024
RECOMMENDATION
Receive presentation on the South Coast Air Quality Management District Proposed Amended Rules and provide direction to staff.
ATTACHMENT
1. Presentation on South Coast Air Quality Management District Proposed Amended Rules
Agenda Page 17
South Coast Air Quality Management
District Proposed Amended Rules
Legislative and Regulatory Committee
August 28, 2024
Agenda Page 18
Agenda
2 Background
Proposed regulations
o South Coast Air Quality Management District (AQMD)
Proposed Amended Rules
o Go Zero Rebate Program
o Proposed Implementation Timeline
o Stakeholder Positions
Provide direction to staff on policy position and
approach
SCAQMD Board will be
considering a ban on sales of
new gas furnaces and water
heaters that could go into
effect as soon as 2026 for
new buildings and 2027 for
existing buildings.
CPA staff is seeking
Committee direction on policy
position and engagement
strategy.
Agenda Page 19
Summary
3 The AQMD proposals would require buildings
to transition from natural gas space and
water heaters to electric upon replacement
Rulemaking leverages AQMD’s regulatory
jurisdiction over regional air quality to set
nitrous oxide (NOx) limits to reduce air
pollution from natural gas combustion
CPA provides support to our member
agencies and customers for building
electrification via technical support and
incentives
Section 3.c of the leg/reg platform supports
statewide building decarbonization efforts but
is silent on local/regional engagement
Agenda Page 20
Electrification in Buildings:
Who regulates what
4 California Air Resources Board (CARB): Responsible for the state’s GHG emissions standards re: a range of statewide pollution sources including vehicles, fuels and consumer products.
Air Quality Management District (AQMD): Responsible for regional air quality planning, monitoring, and stationary source and facility permitting.
California Energy Commission (CEC): Responsible for leading the state's energy policy and planning efforts, including energy efficiency, renewable energy growth, building energy standards, energy infrastructure planning, etc.
Local agencies: Local governments can establish local code ordinances for the California Building Standards Code.
Agenda Page 21
Proposed Rules and Requirements
5 AQMD has proposed two rules for NOx emissions:
1. Natural gas fired furnaces for residential and commercial buildings (PAR 1111)
2. Residential natural gas fired water heaters (PAR 1121)
3. Natural gas cooking is not covered by the proposed new rules Effectively requires all furnaces and water heaters sold or installed in AQMD territory to be electric once rule is implemented. o Applies to manufacturers, distributors, retailers, resellers and installers of gas-fired furnaces and gas-fired water heaters. o Only applies at time of appliance replacement.
AQMD is holding workshops in October and expects a vote in December 2024. Stakeholder positions are still forming.
Similar NOx rules for commercial equipment including large water heaters, small boilers and process heaters were adopted in June 2024 (PAR 1146.2) Space & water
heating
represent
~80% of GHG
emissions from
buildings
Agenda Page 22
Go Zero Rebate Program
6 AQMD plans to offer a new program (Nov. 2024)
to support customers with adoption of electric
appliances
Establishing Go Zero Rebate Program with
incentives for space and water heating
o Proposed incentives for single family and multifamily heat pumps for space and water heating.
o Draft single-family incentives of $1,000-$2,000 (water heating) $1,500-$3,000 (HVAC)
o 75% of funds and higher incentives for overburdened
communities (using CalEnviroScreen).
First phase ($20.5M) funded by mitigation fees.
Additional future funding expected.
Agenda Page 23
Proposed Implementation Timelines
7 2027 all residential water
heating replacements must be
electric
2028 all residential space
heating replacements must be
electric
CARB is considering
implementation timelines that
are later than AQMD and that
do not conflict with proposed
or amended rules
Appliance AQMD
Res. water heaters
<75,000 Btu/hr
2026 (new construction)
2027* (existing buildings)
Furnaces
<2,000,000 Btu/hr
2026 (new construction)
2028* (existing buildings)
Instantaneous water heater
<200,000 Btu/hr
2026 (new construction)
2029 (existing buildings)
Instantaneous water heater
>200,000 Btu/hr
2028 (new construction)
2031 (existing buildings)
*2030 for existing mobile homes
Agenda Page 24
CPA Advocacy Scenarios
8 Staff is seeking direction on CPA engagement in AQMD’s PARs rulemaking. Options include:
1. Do nothing
2. Track/attend working group and other sessions but do not provide comments
3. Submit comments that help refine the program in advance of any ruling adoption
4. Submit comments in support of the PARs proposals
Agenda Page 25