To Meet Climate Commitments, DC Must End Fossil Fuel Subsidies

Director Tommy Wells
Department of Energy and Environment

Dear Director Wells,

Mayor Bowser has set bold climate commitments and made DC a national leader in the fight against climate change. As a result of her efforts and your leadership at the Department of Energy and Environment (DOEE), the District has made significant progress toward DC’s 2032 commitment to reduce greenhouse gas emissions by 50 percent. But DC is not on course to achieve the 2050 commitment of carbon neutrality. Meeting the Mayor’s carbon neutrality commitment requires phasing out the use of all fossil fuels, as is noted in the Mayor’s Clean Energy DC plan.

The Sierra Club wrote to you on July 31, 2019, calling for an end to utility ratepayer subsidies for burning gas. We are pleased that DOEE and the DC Sustainable Energy Utility (DCSEU) altered DCSEU’s contract so that it does not penalize building decarbonization, with increases in electricity use as a result of decarbonization no longer counting against the electricity efficiency goals.

For DC to make meaningful progress toward meeting our climate commitments, the Sierra Club believes DCSEU’s next five-year contract must focus not only on reducing energy use, but also on reducing carbon emissions. The Mayor’s Clean Energy DC plan states: “Achieving its 2050 GHG carbon neutral target will require the District to eliminate fossil fuel use.” Continuing subsidies for gas appliances is inconsistent with DC’s energy plan and the Mayor’s climate commitments.

To meet DC’s clean energy and climate commitments, the next DCSEU contract should substantially increase DCSEU’s incentives for the installation of super-efficient electric heat pumps. States in colder climates than DC are leading the way on heat pumps. Maine has committed to install 100,000 new heat pumps by 2025. New York has substantially increased its rebates for heat pumps, with the state’s utilities now paying between $3,000 and $6,000 for a typical three-ton ducted heat pump installation. The Sacramento Municipal Utility District pays $4,500 per heat pump system.[1] By contrast, DCSEU provides heat pump rebates of a paltry $375 or $575, depending on the system’s efficiency. Other states recognize that heat pumps are the future of climate-friend building heating. DC needs to catch up.

The Sierra Club requests that the next DCSEU contract end all subsidies for gas-fired boilers, furnaces and water heaters and instead set ambitious quantitative targets for heat pump installations. Such targets would require increased financial support for heat pumps in the rebate program.

Mayor Bowser and DOEE have an impressive record on climate change. But the fight is not over, and we must all work together to ensure that the Mayor’s climate vision is realized.

Sincerely,

Mark Rodeffer
Co-Chair, Beyond Gas Subcommittee

Matthias Paustian
Co-Chair, Beyond Gas Subcommittee

CC:
Ted Trabue, Managing Director, District of Columbia Sustainable Energy Utility
Mary Cheh, Chair, DC Council Committee on Transportation and Environment