For Immediate Release August 15, 2024
Media Contact:
Robin Tung, Building Decarbonization Coalition
robin@buildingdecarb.org
California Assembly advances bill to pilot neighborhood-scale decarbonization pilots
SB 1221 will empower California to make responsible utility investments and pave the way for pilot programs that advance zero-emission solutions and the state’s affordability, air quality, and climate goals.
(SACRAMENTO, CA) – Today, the California Assembly Appropriations Committee passed a bill that will advance zero-emission solutions like neighborhood-scale building decarbonization and thermal energy networks aimed at ensuring long-term energy affordability for Californians through responsible infrastructure planning and investments. Senate Bill (SB) 1221, authored by Senator Dave Min (D-Irvine), will stabilize rates for gas utility customers, provide life-saving cooling for low-income households, support the state’s workforce, and advance heat pump adoption to help achieve the state’s heat pump and climate goals.
“We have an opportunity to make greener investments in our homes and energy infrastructure with SB 1221,” said Senator Dave Min (D-Irvine). “Rather than replace aging gas pipelines, neighborhood-scale decarbonization redirects utility investments toward zero-emission alternatives that Californians actually want. That’s why this approach has garnered such wide support across the state and why it’s high time that we deliver on better access to cooling, lower energy costs, and concrete solutions to the climate crisis.”
Replacing aging gas pipelines in California costs on average $3 million per mile, which is billed to gas utility customers. With more than half of the state’s gas pipelines nearing the end of their useful life, ratepayers across the state could expect to pay $20 billion to repair and replace gas infrastructure in the next decade. This could mean that gas bills rise as much as $600 per month by 2050 for the average household. With neighborhood decarbonization, utilities can redirect these investments towards clean energy infrastructure instead, which are aligned with the state’s goal of achieving carbon neutrality by 2045. Investing in neighborhood decarbonization could save impacted gas utility customers about $32,000 in 2024 alone, and ratepayers across the state $20 billion in the next decade, according to a new analysis.
A broad majority (62%) of California voters said that they support a policy to pilot a program enabling residents and businesses to upgrade their neighborhoods to run on 100 percent clean electricity. Additionally, voters (62%) are concerned about the high costs associated with maintaining and replacing aging gas pipelines in California.
“SB 1221 will protect Californians against extreme heat and help low-income communities build climate resilience in the face of worsening extreme heat events,” said Jose Torres, California Director at the Building Decarbonization Coalition. “This bill will make energy more affordable for Californians by empowering the state to invest in clean energy infrastructure. Advancing SB 1221 is a win for all Californians. We thank Senator Min and state policymakers for their leadership.”
Extreme heat threatens all Californians, especially vulnerable populations like children, the elderly, those with underlying health conditions, and the 25% of California households that do not have access to cooling. In the last decade, heat-related mortality has been estimated to range between 460 and 4,000 people, with great impacts on low-income households and communities of color, especially Black Californians. Starting in 2025, heat-related mortality could result in 4,300 premature deaths annually starting in 2025 as extreme heat events could increase by twenty-fold unless the state can curb carbon emissions.
In the wake of steep budget cuts this year for equitable decarbonization to upgrade low-income households with clean cooling—including the exclusion of the Equitable Building Decarbonization Program (EBD) from the state’s climate bond—these clean energy investments are critical now more than ever. Zero-emission appliances like heat pumps provide clean cooling as well as heating, filter the air, and can cut climate emissions because they do not rely on fossil fuels.
SB 1221 is sponsored by the Building Decarbonization Coalition, Earthjustice, and the National Resource Defense Council, and supported by a coalition of utilities, environmental justice and environmental organizations. Next, SB 1221 will be heard on the California Assembly Floor by August 30, 2024.
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The Building Decarbonization Coalition (BDC) aligns critical stakeholders on a path to transform the nation’s buildings through clean energy, using policy, research, market development, and public engagement. The BDC and its members are charting the course to eliminate fossil fuels in buildings to improve people’s health, cut climate and air pollution, prioritize high road jobs, and ensure that our communities are more resilient to the impacts of climate change. Learn more at www.buildingdecarb.org.