DC Government Should Lead Transition Off Fossil Fuels

Testimony
of
Lara Levison
Sierra Club, Washington DC Chapter
Committee on Transportation and the Environment Oversight Hearing
DC Department of Energy and Environment
Monday, February 22, 2021

Introduction

Thank you, Councilmember Cheh, for the opportunity to testify today about the performance of the DC Department of Energy and Environment (DOEE). My name is Lara Levison, and I’m the Energy Committee Chair for the DC Sierra Club. The Sierra Club is the nation’s oldest, largest and most influential environmental advocacy organization. We have 3,000 dues-paying members in DC, and we work to reduce greenhouse emissions, expand sustainable transportation, reduce waste and ensure safe and clean water.

Though we do not agree with DOEE every issue, the Sierra Club believes DOEE and its director, Tommy Wells, are providing strong leadership across DC agencies on climate, clean energy, and other environmental issues. We appreciate DOEE’s work to implement the Clean Energy DC Omnibus Act of 2018, most recently assisting the Department of Motor Vehicles in adjusting the vehicle excise tax so that it encourages fuel efficient vehicles. We thank Director Wells and the staff at DOEE for regularly seeking feedback from stakeholders on the important environmental issues facing the District and being receptive to our concerns.

WATER

Lead Pipe Replacement

We appreciate DOEE’s commitment to clean water in the District, both to drink and as a resource to enjoy. The Sierra Club was glad to see measures to replace both the public and private sections of lead service lines as a part of Capital Improvement Projects. We believe these and other Capital Improvement Projects should be planned and implemented equitably throughout the District so that communities and residents most in need of assistance are identified and prioritized.

Evaluation of the Lead Service Line Replacement Assistance Program should ensure that the program reaches all District residents equitably. This includes not only accounting for available data on public and private potable water service lines, but also accounting for where data is not available, why this data is not available in some locations, and how to obtain or produce the missing data. This will allow for a more robust evaluation of the program.

We urge examination of the gaps in the assistance program that result in low-moderate income (LMI) residents receiving a lower rate of lead line replacement when compared to non-LMI residents. Methods in assistance must be designed equitably.  We caution against assuming that one method will adequately assist all District residents.

Anacostia River Sediment Project / Clean Watershed Projects

The Sierra Club appreciates the efforts made to date to clean up the Anacostia River, especially the recent production of the Interim Action Plan for the Anacostia River Sediment Project. We ask that DOEE take a more holistic approach to restoring the Anacostia River and its watershed in DC. Specifically, we would like to see more consideration given to the following:

• Hydrologic connectivity: It appears that projects within the Anacostia River and its watershed are based more on property lines than natural, hydrologic boundaries. Segmenting projects in this way can weaken the cumulative efficacy of these projects to restore the river and watershed ecosystem. We would like to see increased efforts to encourage cooperation among property owners and stakeholders to achieve goals that are based more in connected floodplain and habitat.

• Contaminant fate and transport: DOEE should consider performing unique contaminant transport and fate modeling for all projects related to restoring all or any part of the Anacostia River and its watershed. Such analysis may yield more effective remediation methods.

• Climate resiliency planning: We ask that DOEE make use of the National Oceanic and Atmospheric Administration (NOAA) Sea Level Rise maps in both project implementation and code development (such as Floodplains and Wetlands regulations). Remediation measures that account for long-term impacts of increased flooding will be more robust and cost-effective in the long-run.

• Equitable prioritization of projects within the Anacostia River and its watershed: Restoration project prioritization should be carried out in a way that ensures that projects are completed at the same rates and similar quality in underserved LMI neighborhoods as they are in other more affluent neighborhoods.

ENERGY

Budget Request: Financing the EV Readiness Act

We applaud the Council for passing the Electric Vehicle (EV) Readiness Amendment Act of 2020 which will require at least 20 percent of most new and renovated off-street parking in DC to be ready to accommodate an electric vehicle charger. This act was revised from its initial draft to give DOEE the authority to write the code language to implement this provision, which will delay its implementation. We urge funding for this provision and for DOEE to move as quickly as possible on this code change to avoid further delays on getting prepared for the electric vehicle transition. Installing make-ready infrastructure during new construction or renovation will dramatically reduce the costs for a new EV owner to install a charger at work or home. We urge DOEE to move one step further in this rulemaking and expand this provision to cover all off-street parking, including for single-family housing that constitutes many neighborhoods in DC.

Budget Request: Financing the Energy Efficiency Standards Amendment Act

Thank you for your leadership, Councilmember Cheh, in passing the Energy Efficiency Standards Amendment Act of 2020. We are fond of calling appliance efficiency standards “the best climate policy most people never heard of.” We are particularly excited for DC to become the first jurisdiction in the nation to set standards for air purifiers, and we look forward to the Act’s speedy implementation. We appreciate DOEE’s support of this legislation and recognition of its benefits to DC utility ratepayers and the district’s climate commitments.

While we are now looking to the U.S. Department of Energy for new leadership in appliance efficiency standards, the new legislation allows DOEE to follow California’s leadership by implementing similar standards. We believe DOEE should actively pursue its authority in the future as California continues to be a leader in new appliance efficiency standards.

The Act will require appropriations of about $120,000 per year for one FTE staff at DOEE and associated program costs. This is a small investment compared to the estimated benefits of this Act, and we urge DOEE and Council to budget this small amount of money that will save DC’s residents millions of dollars.

Building Energy Performance Standards

The Building Energy Performance Standards (BEPS) program is critical for maximizing energy efficiency in the buildings sector in DC. In its 2018 greenhouse gas (GHG) inventory,^[1] DOEE found that 73 percent of GHG emissions in DC came from the buildings sector. Reducing GHG emissions from this sector is a key goal for our climate policy, and boosting the efficiency of existing buildings through BEPS is an important step to the full decarbonization of buildings through beneficial electrification.

We express our appreciation to DOEE for issuing the BEPS standards by the January 1, 2021 statutory deadline, as well as the work from the members of the BEPS Task Force. This rule sets in motion an important tenet of DC’s climate policy by working to reduce the climate impact of the buildings sector. Though the Sierra Club has some different ideas for where we would like to have landed with these rules, we appreciate the difficulty of even taking the first step towards putting this program in motion and meeting the statutory requirements of the program set forth in the Clean Energy DC Act.

The end goal is full decarbonization of our economy. For buildings, this means ending all fossil fuel combustion. This is a transition that will take time and effort. However, the BEPS program is not currently focused on this end goal, and we believe some of the proposals for the BEPS program might disincentivize a pathway to full decarbonization in favor of some immediate emissions reductions. We plan to share our concerns with DOEE fully in our comments on the proposed BEPS program rules. However, broadly speaking, we believe DOEE should use BEPS  to encourage electrification of building systems, as this is the key to long-term building decarbonization. Given the longevity of building systems and the energy-efficiency investments that BEPS will spur, it is important that electrification be an early focus of this program, particularly by the time DOEE begins reviewing compliance plans from building owners. We will eagerly await DOEE’s report, due on January 1, 2023, on alternative BEPS measures to limit emissions of greenhouse gases, which we hope will move DOEE, the BEPS program, and the buildings sector further towards full decarbonization.

Supermarket Refrigerant Management Program

The Building Energy Performance Standards (BEPS) program has established DC as a leader in the effort to reduce greenhouse gas emissions. This program is effective because a significant amount of greenhouse gases are emitted due to inefficient or poorly maintained equipment within DC’s buildings. Another substantial source of greenhouse gas emissions stems from poorly maintained refrigeration equipment in DC’s supermarkets.^[2] The equipment that maintains refrigerated and frozen temperatures uses refrigerants. When the equipment is poorly maintained or improperly disposed of, these refrigerants leak into the atmosphere and contribute to global warming.

Commonly used refrigerants have global warming potentials that are 1,400 to 3,900 times that of carbon dioxide.^[3] Because of their high global warming potential, one study found that refrigerant management was the most impactful solution to solving climate change.^[4] Approximately 60 percent of refrigerant emissions are the result of leaks from refrigeration and air conditioning equipment, and supermarkets contribute more refrigerant emissions than any other source.^[5] The U.S. Environmental Protection Agency (EPA) has found that supermarkets typically leak about 25 percent of their refrigerant every year, which is equivalent to approximately 1,000 pounds of refrigerant emitted into the atmosphere every year per store.^[6]

The Sierra Club encourages DC to adopt a supermarket refrigerant management program similar to the EPA’s GreenChill program, which established voluntary levels that supermarkets can meet by reducing the amount of refrigerant they emit each year.^[7] The Sierra Club thanks DC for being a leader in reducing greenhouse gas emissions and urges DC to continue to lead through the adoption of a supermarket refrigerant management program.

DC Sustainable Energy Utility Fossil Fuel Subsidies

DOEE is currently re-negotiating the five-year contract for the DC Sustainable Energy Utility (DCSEU), which administers DC’s energy efficiency program and is funded through fees on electricity and gas utility bills. The Clean Energy DC plan states: “Achieving its 2050 GHG carbon neutral target will require the District to eliminate fossil fuel use.”^[8] DCSEU subsidizes upgrades to fossil fuel systems, which is inconsistent with DOEE’s own energy plan. Our understanding is that DOEE plans to eliminate subsidies for new fossil fuels systems but continue subsidies for upgrades to existing fossil fuel systems if such upgrades receive approval. The Sierra Club very much appreciates DOEE’s openness in discussing its plans for the new contract, including in areas where we do not agree with the agency. Nonetheless, we believe DOEE should end all fossil subsidies in the new contract.

Transitioning off Fossil Fuel Combustion in DC’s Buildings

As mentioned above, the Clean Energy DC plan calls for the elimination of fossil fuel combustion over the next 29 years. The Sierra Club believes that overall, DOEE is doing a good job beginning this planning, including commissioning a study on building electrification and developing the Carbon Free DC plan, which models pathways for the District to reduce its greenhouse gas emissions. The plan sets benchmarks for electrification of public and private vehicles, for guaranteeing that newly constructed buildings are fueled by renewable energy instead of fossil fuels, and electrifying DC's homes. The early drafts of the plan seem promising, but we believe further development is necessary. For instance, we believe targets should be set for electrifying all buildings, not merely homes, especially since large commercial, institutional and government buildings are responsible for a greater share of emissions than homes.

The Sierra Club believes that plans for the transition off fossil fuels must include funding  for electrification for low and moderate income residents and the buildings that house them. As we transition away from fuels that are drilled, mined and fracked far from DC, we have an opportunity to invest that money instead in DC, with clean energy and energy efficiency jobs that must be performed locally and cannot be outsourced, unlike dirty energy jobs. We urge DOEE to work with the Department of Employment Services (DOES) and other parts of the DC government to ensure training programs reserve these jobs for DC residents. Additionally, DOEE will need detailed plans to ensure that as we phase out fossil fuels, the load on our electric grid is kept to minimum to save money and instead invest in distributed energy resources, such local solar and energy storage.

It is important that planning for transitioning off gas not be left solely to the utilities, which answer to their shareholders, not to DC residents. Washington Gas, in particular, is resistant to the transition off fossil fuels and has presented farcical plans for mixing fracked gas with gas from sources like animal manure and hydrogen, fuel sources that are in minimal supply but have maximal costs. DC’s Clean Energy future should be left in the hands of DC residents, not corporations headquartered in Chicago or Calgary.

Gas Leaks

As DC moves forward with the transition off gas, we must keep in mind that the gas pipes beneath our city are crumbling and leaking. This represents a huge addition to the District’s climate-damaging emissions because methane gas is 84 times more powerful as a greenhouse gas than carbon dioxide.^[9] It is also a danger to public safety and health because methane gas is a precursor to ozone, which causes inflammation and lung damage.^[10] Gas also explodes, at concentrations of as little as 5 percent (50,000 ppm).^[11] The Sierra Club recently purchased a small hand-held methane detector, and one of our coalition partners was shocked to encounter a leak in the hazardous zone on the very first outing with the methane detector, with a group of Sunday school kids in Northwest.

To remedy this problem, Washington Gas would have DC replace all the pipes, at a cost to DC residents and ratepayers of some $5 billion over the next 30 years. We believe that we need to invest those resources into building a new energy infrastructure for the future based on electrification fueled by increasingly clean, renewable energy.

DOEE should undertake a thorough advanced leak detection study to gain a comprehensive view of the location and size of the leaks emitting methane from the pipes under DC’s streets. Of course the extremely large leaks, which present an immediate hazard, must be repaired. But this information should also be used to assess which buildings, blocks and neighborhoods should be transitioned from gas to 100 percent electric power first, with adequate funding for the required fuel switching. Every block where pipeline replacement can be avoided by moving it off the gas grid represents money saved, and it creates a new area where methane leakage will never again be a concern.

Greenhouse Gas Offsets

The Sierra Club believes that carbon offsets should have no place in the District's plans for decarbonization. Carbon offsets often do not result in additional GHG reductions, but instead simply pay for activities that would have occurred anyway. In many cases, they do not result in long lasting GHG reductions, such as when forests are eventually logged or burned. Most importantly, we believe that allowing for carbon offsets in the District's decarbonization planning may put us on a slippery slope that could prevent deep local greenhouse reductions. We therefore are categorically opposed to carbon offsets.

Grid Modernization

The Clean Energy DC Plan guides the District’s grid modernization efforts. DOEE staff are active participants in the Public Service Commission (PSC) cases and play an important role in maintaining coherence and focus on the District’s greenhouse gas reduction commitments. The DOEE’s motions made on energy efficiency and demand response in the Commission’s Formal Case 1160, which will result in at least 1 percent electricity savings, are good examples of DOEE’s effective advocacy on behalf of District ratepayers. DOEE’ efforts in modeling, planning, and the commissioning of studies such as the Carbon Free DC plan, are providing necessary leadership at the Public Services Commission for the District to reduce its greenhouse gas emissions. DOEE’s work toward local energy development and on-site energy management, along with other grid modernization strategies, will strengthen the reliability of the electric distribution grid, enhance energy services for business and residents and is a crucial part of meeting DC’s climate commitments.

Transportation Electrification Roadmap

We applaud DOEE for creating the Transportation Electrification Roadmap, which will be a vital guide to how DC will address the transportation-related carbon emissions to meet the requirements in the Clean Energy DC Omnibus Act and DC’s commitment of carbon neutrality by 2050. Addressing transportation emissions from passenger, commercial, and public vehicles will require intensive coordination between DC government agencies, as well as with consumer and commercial groups. It is our hope that this roadmap will help facilitate that coordination.

It is our understanding that the first part of the Transportation Electrification Roadmap was due in March 2020, and that the final Roadmap is due July 2021 (as per the Clean Energy DC Act). After a delay in awarding the RFA, the Electrification Coalition was only recently selected and the first stakeholder meeting, which was largely an orientation, was held late last month. We recognize the limits imposed by the pandemic, but we encourage DOEE to prioritize this project, which will lay the foundation for broad electrification in the District. If timelines need to be modified, we request that DOEE consider including stakeholders in establishing a new timeline, and make sure to include updates to the DOEE website.

We have concerns regarding charging infrastructure and rate policies for medium and heavy duty vehicles, DC Circulator, and Metrobus electrification. Our understanding is that charging infrastructure and rate policies set by Pepco and the PSC are key barriers to electrification, including in utilizing the electric capabilities of the District’s existing fleet of plug-in hybrids. We urge DOEE and partner agencies to prioritize the need to address this barrier, and include key steps and metrics in the roadmap where relevant.

DOEE must be well prepared to execute the plan, which will make a measurable impact toward DC’s climate commitments.

Medium and Heavy Duty Zero Emission Vehicles

The District has established itself as a leader in clean transportation initiatives by signing the multi-state Memorandum of Understanding (MOU) for Medium and Heavy Duty Zero Emission Vehicles (MHD ZEVs). Given that the transportation sector is the leading source of greenhouse gas emissions in the country, and MHD ZEVs are the second-leading source of greenhouse gas emissions within the transportation sector, the District’s commitment to a self-sustaining market for MHD ZEVs is a crucial step towards meeting Mayor Bowser’s pledge to cut greenhouse gas emissions by 50 percent by 2032 and make the District carbon neutral by 2050.

To meet the commitments outlined by the Mayor, the District must adhere to the sales targets outlined in the MOU. The stated targets specify that “all new medium- and heavy-duty vehicles in our jurisdictions [be] zero emission vehicles by no later than 2050” and “at least 30 percent of all new medium- and heavy-duty vehicle sales in our jurisdictions [be] zero emission vehicles by no later than 2030.” The Clean Energy DC plan states that 76,000 tons of CO₂ are expected to be reduced annually from electric vehicle adoption.

The Sierra Club greatly appreciates DOEE’s call for stakeholder input in drafting the District’s MHD ZEVs action plan. In our comments, we stated that we agree with the MOU where it suggests that “to lead by example, each Signatory State will progress toward electrification of its government and quasi-governmental agency fleets.”

The Sierra Club’s recommendations for the MHD ZEVs action plan included:

• The District should prioritize low and moderate income and minority communities in deployment of MHDV;
• DC should identify key indicators to track and report out to the broader public on progress annually (e.g., install and/or utilize existing air monitoring stations to track changes in key pollutants);
• And perhaps most importantly, DOEE should work to create binding legal obligations based on quantifiable goals laid out in the Plan.

To date, no draft Action Plan has been shared, so we await the draft plan for review as soon as it is released.

Metrobus Electrification

The Sierra Club recognizes that the District does not have sole jurisdiction over WMATA, but we believe that DOEE can play a key role in electrifying the nation’s sixth largest bus fleet, which has a large footprint across the District.

Many bus authorities across the country are already replacing their fossil fuel fleets with electric buses. Los Angeles, home to the nation’s second largest bus fleet, will electrify its 2,300 buses by 2028; San Francisco’s 1,100 buses will be all-electric by 2035, and New York City, with the nation’s largest bus fleet, will electrify its 5,700 buses by 2040.

Closer to home, the DC Circulator has operated 14 electric buses since 2018 and plans to replace all of its diesel buses with electric models at the end of their useful lives. Montgomery County’s Ride On system added four electric buses this past year and committed to be all-electric by 2035; and Alexandria’s DASH bus system added six electric buses last year, and plans to be all-electric by 2035.

By contrast, WMATA operates one electric bus (and recently procured two additional through the U.S. Department of Transportation's Low or No Emissions program) and has yet to make a time-bound commitment to electrify, let alone establish interim targets. Although WMATA is in the process of planning a two-year pilot project with 12 electric buses and is renovating two bus garages to allow for charging equipment, it signed a contract in 2018 to purchase 694 diesel and compressed natural gas (CNG) buses over seven years and currently plans to install costly new CNG fueling infrastructure at a Maryland garage.

WMATA is lagging behind in electrifying its fleet – in stark contrast with DC’s climate commitments. We strongly encourage the District, through DOEE, DDOT and other agencies,  to prioritize bringing WMATA into alignment with DC’s transportation electrification commitments. In the long run this will benefit both WMATA and the District in terms of coordinated policy, leveraged procurement, and operational cost savings. It will also benefit DC residents by providing quieter streets and cleaner air.

Transportation Climate Initiative

Sierra Club was an early advocate for the concept of the Transportation Climate Initiative but has taken some time to re-evaluate in 2020 and is not supporting the final regional MOU due to the following considerations:

• Solidarity with several environmental justice (EJ) partners recognizing this process fell short and did not put equity and justice at the center;
• The states did not conduct early or enough meaningful public outreach and consultation with communities hardest hit by transportation pollution on the design of this policy;
• The estimated CO₂ emissions reduction of 26 percent by 2032 is too weak;
• There are no meaningful measures to ensure that the funds are not raided for unrelated purposes; and
• There are no guarantees that there will be emissions reductions in communities that have the most pollution burden.

Because DC has signed on to TCI, the Sierra Club DC Chapter intends to work with DOEE to make the implementation of the policy as strong as possible in regards to environmental and equity concerns. Specifically, Sierra Club commends DOEE for meaningful outreach to involve stakeholders, and we strongly urge DOEE to ensure that communities that suffer most from transportation pollution are fully included in the process.

WASTE

Implementation of the Zero Waste Omnibus Act of 2019

We applaud Councilmember Cheh and the full DC Council for unanimously passing the Zero Waste Omnibus Act of 2019. The act will help the District make significant progress toward the goal of 80 percent waste diversion from landfills and incineration by 2032. DOEE is tasked with creating a donation and reuse program, establishing a collection point for glass and a District-wide battery recycling program, as well as enforcing new food service ware requirements. The law’s successful implementation depends on it being fully funded, which we realize may be more challenging due to reduced revenue amid the coronavirus pandemic. The Sierra Club looks forward to working with our partners at DOEE to ensure the law achieves its maximum impact.

Conclusion

Thank you again, Councilmember Cheh, for the opportunity to provide testimony today. The Sierra Club believes DOEE is providing strong leadership. But amid the severity of the climate crisis we face, and the other pressing environmental issues in the District, we believe DOEE needs to make even stronger efforts to ensure a just and sustainable future for the District of Columbia.