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Today the California Public Utilities Commission made a landmark decision to bring clean, safe, and affordable energy to over 1,600 low-income households across the San Joaquin Valley. Today’s vote is a tremendous step forward, signalling the large-scale transition from fossil fuels to clean energy happening across California.
In a 4-1 vote, the Commission approved over $50 million for Pacific Gas & Electric, Southern California Edison, and third parties to launch clean energy electrification pilots in eleven communities. These pilot programs will save families roughly $1,500 per year by improving household energy efficiency and replacing fossil fuel-powered appliances (like propane furnaces and water heaters) with advanced electric appliances.
The Commission also approved a much smaller budget of $5.6 million for Southern California Gas to extend gas pipelines and install gas appliances to approximately 200 homes in one community, and to seek financing to extend gas pipelines to two other communities. This is a fraction of the $33 million budget originally proposed by the gas company.
This decision is an important signal of California's transition from fossil fuels to clean enegy.
In total, the pilot programs should ease the energy burden faced by the communities, and also provide valuable data for the Commission, utilities, and stakeholders to design a scalable program that provides healthy, clean energy homes across the Valley. Ultimately, in accordance with the guiding legislation AB 2762, the Commission seeks to improve access to affordable energy for not just the pilot communities, but for the over 170 disadvantaged communities that have for generations relied on costly and polluting propane and wood for heating.
Continued investment and attention is greatly needed in the San Joaquin Valley. The region is home to some of the worst air pollution in the country, with all counties consistently flunking the American Lung Association’s report card. Despite being one of the most agriculturally rich regions in the nation, the San Joaquin Valley experiences record rates of poverty with insufficient infrastructure and services. In cold winters, families do not have access to affordable and safe energy to comfortably heat their homes, and come the summer heat waves, lack of efficient air-conditioning can send energy bills skyrocketing.
The clean energy electrification pilots approved today will improve indoor air quality, lower energy bills, and enhance comfort and climate resiliency with no cost to the residents:
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Unlike gas and propane appliances that produce harmful indoor air pollution, electric appliances can operate efficiently without polluting our homes. It’s important that Valley homes be a respite from the region’s toxic air pollution.
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The electrification pilots are also expected to lower total energy bills by roughly $1,500 annually. Residents who opt for a controllable heat pump water heater could see even higher savings by heating water during off-peak periods when electricity is lower cost.
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The electrification pilots are also cost-effective when compared with gas, allowing more homes to be served with a lower overall program budget. For example, efficiency upgrades and electrification are estimated to cost $17,000- $35,000 per house, whereas outfitting homes with gas will cost on average $49,000 per home.
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Advanced electric appliances like heat pumps allow residents to efficiently heat and cool their homes. This will improve health and comfort, and help residents weather the temperature swings that will worsen with a changing climate.
The success of this pilot can also be attributed to the sustained participation of Valley communities over the past three years, supported by environmental justice and community groups who have worked to ensure that the proceeding is rooted in the realities and needs of these frontline communities. Continued community engagement and education as well as local workforce development and training will be another marker of the success of the pilot programs.
While many important details remain to be worked out early in 2019, today’s decision is an important signal of California’s transition from fossil fuels to clean energy. From the electric grid, to cars and buses, to inside our homes, California is on the cusp of a pioneering shift to 100% clean energy. It is most appropriate that low-income communities that live in some of the worst pollution in the state, should be prioritized in this movement to clean and affordable energy.