Funding for Building Decarbonization Pilot, Lead Pipe Replacement & Other Environmental Priorities Needed in DC Budget

Testimony
of
Lara Levison
Energy Committee Chair
Sierra Club DC Chapter
on the
FY2022 Budget
Department of Energy and the Environment
Committee on Transportation and the Environment
Monday, June 14, 2020

INTRODUCTION

Thank you, Councilmember Cheh, for the opportunity to testify at this hearing on the budget for the Department of Energy and the Environment (DOEE). My name is Lara Levison, and I’m the Energy Committee Chair for the DC chapter of the Sierra Club, the nation’s oldest and largest environmental advocacy organization, with chapters in every state. Here in DC, we have 3,000 dues-paying members.

The Sierra Club thanks DOEE Director Tommy Wells and his staff their leadership on a range of environmental, climate, and energy challenges and opportunities. Due in large part to the policies enacted under your leadership, Councilmember Cheh, DOEE is becoming a significant driver of the green economy in DC, providing job training and creating green jobs through several programs, including Solar for All, green infrastructure to capture stormwater runoff, and the Building Energy Performance Standard. We also wish to commend DOEE’s advocacy before the Public Service Commission for energy policies to save energy and promote climate solutions.

We also thank Mayor Bowser for committing significant funding from the American Recovery Act toward a number of important DOEE initiatives. However, there are several initiatives passed by the Council that should be added to the FY22 budget, and we also propose a decarbonization pilot project.

WATER AND RIVERS

The Sierra Club supports funding for remediation of Kenilworth Park. While the final plan for the remediation of the contaminants left by the former landfill is determined by the National Park Service and has not yet been finalized, our hope is that the funding will be allocated to engage the public in planning for the future uses and features of Kenilworth Park, including opportunities to incorporate flood mitigation along banks of the Anacostia. Sediment contamination sampling in the Anacostia and at Kenilworth Park has no new funding, though funds remain from past budget cycles. Sampling is a critical part of the Anacostia remediation to ensure we don't have recontamination of the river. Funding for sampling should be included in the budget. We look forward to working with DOEE on this multi-year effort.

The Sierra Club is pleased that the Kingman and Heritage Island restoration project is progressing as planned with FY22 funding sufficient to maintain momentum toward establishing this natural area as a recreational and educational resource for Ward 7 and all of the District. The Sierra Club is strongly supportive of this initiative and encourages the Council to maintain funding to realize the vision for this park and natural habitat area. New funding for wetland mitigation projects is dedicated to compensating for impacts to wetlands at another location. Such programs typically allow developers to fill in and build on top of wetlands and to construct new wetlands in other locations as mitigation for destroying wetlands at the construction site.This funding is a red flag for development in wetlands and low lying areas subject to flooding--where development probably should not take place.. The Sierra Club asks for additional information on the scope of this “WETMI” project area.

MS4 stormwater and other stormwater retrofit projects throughout the District are maintaining budget levels and progressing satisfactorily. The Sierra Club is pleased that project area SWM05 was budgeted for $2 million in the FY22 budget to support green MS4 infrastructure such as green roofs, porous pavements, stormwater re-use systems, bioretention, impervious surface reduction and tree planting.

However, remediation of drinking water infrastructure is not funded satisfactorily. The $10 million for lead pipe replacement falls far short of the Sierra Club’s and others’ request. Although additional funding from the Federal budget could augment this high priority budget item, the District must make this a top priority for the health and well being of marginalized populations. This is a longstanding and well-known health problem and an environmental injustice that must be remediated as quickly as possible. At the current rate of replacement, a new generation of children will be born into the problem and grow up exposed unnecessarily to toxic lead hazards.

ENERGY & CLIMATE

Building Energy Performance Standards

The Sierra Club strongly supports the proposed funding for implementation of the Building Energy Performance Standards (BEPS). Enacted in the 2018 CleanEnergy Omnibus Act, BEPS plays out a process for improving the energy efficiency of DC’s largest buildings, a critical element of our climate strategy, because buildings are the source of three-quarters of DC’s greenhouse gas emissions. Improved energy efficiency also provides immediate benefits by reducing local air pollution and increasing the comfort of building occupants.

We applaud the proposed use of American Rescue Plan funds to enable affordable buildings to come into compliance with BEPS. For the buildings that are in cycle for significant renovations, we recommend full decarbonization. Eliminating all combustion of fossil fuels in these buildings for space and water heating will reduce air pollution indoors and outdoors, as well as reducing greenhouse gas emissions.

We understand there is a total of about $31 million in the budget for implementing BEPS for affordable and under-resourced buildings, which includes $5 million for the DC Housing Authority $8.2 million for under-resourced buildings to be delivered via the DC Sustainable Energy Utility, and $8.3 million for the Green Bank for pre-construction and pre-development loans.

The Sierra Club strongly opposes proposals from building sector trade associations to weaken the implementation of BEPS. These critics have proposed either extending the first compliance period from five to eight years, or lifting penalties for non-compliance. We appreciate that the pandemic has created difficulties for building owners. However, any building owner can apply for an extension, and the law provides additional time for affordable housing buildings to come into compliance. We all hope that DC’s economy will continue its rapid recovery from the pandemic, but if building owners are still struggling toward the end of the first compliance period, that would be the time to consider a blanket extension of the compliance period. Please see our letter to the editor in the Washington Post in support of BEPS implementation.^[1]

Budget Request: Cost-Effective Building Decarbonization Pilot

The Sierra Club asks that this committee allocate $1 million in the FY22 budget to cost-effectively transition buildings from fossil fuel heating systems to heat pumps powered by DC’s increasingly clean electric supply. The Clean Energy DC plan states: “Achieving its 2050 GHG carbon neutral target will require the District to eliminate fossil fuel use.”^[2] This cannot happen unless we initiate steps right now to transition away from the combustion of fossil fuels to heat buildings.

The $1 millon pilot program should fund fuel switching measures exclusively in buildings that are well suited for electrification. DOEE should establish parameters for which buildings can be most cost-effectively electrified. We expect that DOEE would likely find that this includes buildings with existing ductwork, so that only the gas or oil furnace needs to be switched to a heat pump. In the residential sector, buildings housing low- and moderate income residents should be prioritized, as long as their buildings meet the requirements for cost-effective electrification established by DOEE. We recommend that non-residential buildings be included in the pilot as well.

We suggest that the pilot program provide a rebate of $5,000 for each fossil fuel furnace or boiler that is replaced with a heat pump, split between the HVAC contractor and the building owner to provide both parties an incentive to replace fossil fuel heating systems with clean electric heat pumps. We suggest the rebate consist of the following:

• For HVAC installers: A midstream contractor rebate of no more than $2,500 for each fossil fuel furnace or boiler replaced with a heat pump; and
• For building owners: A rebate of no less than $2,500 to owners of homes and other buildings for each fossil fuel furnace or boiler replaced with a heat pump.

Heat pump water heaters can replace fossil fuel water heaters cost effectively in many cases. The Sierra Club recommends that the DOEE pilot program include a rebate of $2,000 for each fossil fuel water heating system replaced with heat pump water heating. This rebate should also be evenly split between the contractor and the building owner.

Though we recommend a separate pilot program within DOEE, the Green Finance Authority (“Green Bank”) should also be allowed to apply the $5,000 space heating and $2,000 water heating heat pump rebates to each qualifying replacement of fossil fuels systems. These rebates should also be split between the installer and the building owner.

For larger buildings, such as some churches, office buildings, schools and other buildings in DC, a large fossil fuel replacement likely cannot be incentivized with a $5,000 rebate. For these larger fossil fuel systems, the DOEE pilot should scale the rebate up according to the rated heat output and pay approximately $5,000 for every 40,0000 BTU of rated heating capacity.

Budget Request: 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 can now look forward to new leadership on national appliance efficiency standards from the U.S. Department of Energy, DC’s 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 the nation 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 the Council to budget this small amount of money that will save DC’s residents millions of dollars. With a requested increase of $27,786,000 from FY21’s budget to FY22 for Energy Efficiency and Conservation (KG0 Code 6010), fully funding the Energy Efficiency Standards Amendment Act of 2020 is attainable.

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.”^[3] DCSEU subsidizes upgrades to fossil fuel systems, which is inconsistent with DOEE’s own energy plan. Our understanding is that DOEE plans to largely eliminate subsidies for new fossil fuel 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.

Support for Solar for All and Energy Efficiency Funding

The Sierra Club strongly supports the $22 million (a 50 percent increase) for the Solar for All program, which brings the benefits of locally-generated solar energy to low- and moderate-income families in the District, as well as providing opportunities for job training in the growing clean energy section. We are concerned about continuing reports from the solar industry about lengthy interconnection delays that add costs to solar projects and delay the benefits of clean solar energy. We support the $9 million in DOEE’s buildings program for weatherization ($5 million) and lead hazard control ($4 million).

TRANSPORTATION ELECTRIFICATION

Electric Vehicle (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.

Medium and Heavy Duty Vehicles

In June of 2020, the DC government signed a memorandum of understanding with 15 other states committing to phase out fossil fuel medium and heavy duty vehicle sales. Ensuring this transition occurs will require addressing numerous needs and will require dedicated staff time in order to ensure a full action plan is produced. We urge that any appropriate funding request from DOEE be fulfilled in order to enable this planning process.

Transportation Electrification Roadmap

DOEE and the Electrification Coalition are currently facilitating a roadmap design process for guiding transportation electrification in the District. We urge the Council to sustain funding related to this ongoing initiative.

ZERO WASTE

Councilmember Cheh, we applaud your leadership in passing the Zero Waste Omnibus Amendment Act of 2020, and we are disappointed that no funding is included in the FY22 budget proposal for its implementation. Given the proposed 69 percent increase in DOEE’s budget, reasonable resources should be allocated for this new law that promises to save the District waste management costs, improve the health and safety of District residents, create green jobs, contribute to achieving the District’s waste diversion goals, and “ensure the District remains a national and international leader in sustainability and climate change” in line with DOEE’s Objective 4 as stated on page 231 of the FY22 budget.

Grants to Implement Reusable Foodware

We urge that funding be provided for grants, as authorized in the Zero Waste Act, to assist food service entities and third-party reusable food service ware providers “to support reductions in the use of disposable food service ware, including to help cover the cost of establishing dishwashing capacity, purchase of reusable food service ware, or the procurement or provision of reusable food service ware services from or by third-party reusable food service ware providers.”

Takeout orders increased dramatically during the pandemic, filled almost exclusively in single use containers.^[4] In the District, takeout containers must either be recyclable or compostable. But the US recycling rate hovers around 9 percent annually, and compostable containers often fail to effectively compost even in commercial composting facilities. Many composters reject them because they degrade their compost.^[5] Meanwhile, as unlike many other US cities of its size DC still lacks a curbside composting program, many well-intended residents place their empty compostable food ware in the recycling bin where they contaminate that waste stream - or like many of the District’s  “recyclable” containers, they often wind up in the trash, headed for a landfill or incinerator. Reusable takeout containers promise to reduce waste management costs for the District, because reusable takeout containers can often be used hundreds if not a thousand times before being recycled or sent to a landfill or incinerator. Each takeout order filled in a reusable container eliminates the waste management costs associated with compostable and recyclable takeout containers.

Moreover, reducing single use takeout containers will contribute to the District’s ability to achieve its waste diversion goals. As long as reusable containers remain in circulation, they prevent takeout containers from entering the waste stream. Another benefit is that adopting reusable takeout food ware will create green jobs for District citizens. Third-party reusable food service ware providers need to hire staff to collect, clean, sanitize and deliver reusable takeout containers. Similarly, restaurants need to hire dishwashing staff to clean reusable food ware for onsite dining.

Implementation of “Upon Request” Requirements

The Sierra Club also requests additional funding in the FY22 budget for implementation of the “upon request” provisions in the Zero Waste Act, ensuring that food service entities and food delivery apps provide customers with disposable food ware, such as condiment packets and disposable utensils, only when the customer asks for them.

The law sets July 1, 2021 as the deadline for third-party food ordering platforms to “provide customers the ability to affirmatively request accessory disposable food service ware, including the ability to select the specific items they need.” January 1, 2022 deadline is the deadline for food service entities to “provide accessory disposable food service ware only upon request by the customer or at a self-serve station” and for take-out or delivery orders to only include accessory disposable food service ware when specifically requested by the customer.

Implementation of these “upon request” provisions will reduce the wasteful distribution of single-use plastic and other single-use products. Few of these single-use products can be recycled, and the “compostable'' versions present the same contamination problems as compostable take out containers. This policy will also save restaurants money, reducing their expenditures on disposable single-use accessory food ware products.

Implementation of Extended Producer Responsibility for Batteries

We urge the Council to also provide funding for the Extended Producer Responsibility (EPR) for Batteries provisions of the Zero Waste Act, requiring battery producers or sellers to finance and run convenient recycling programs in DC for batteries. DOEE is expected, among other things, to create a website for the EPR program, conduct consumer outreach, and approve a battery stewardship plan developed by battery producers.

Implementation of the EPR for batteries provisions are vital for reducing waste and ensuring the health and safety of DC residents. Currently, DC residents are expected to drive their used batteries to a transfer station, open for very limited hours, to dispose of their batteries. The result is that batteries are often thrown in the trash and landfilled or incinerated, which can release toxic substances into the land and air. EPR for batteries places responsibility for the waste management costs associated with batteries where they belong: on the producers, rather than on private citizens and the District government. Implementation will save the District  money and the District achieving its waste diversion goals.

Benning Road Transfer Station

We are pleased to see that the Mayor’s draft budget includes "$100 million to accelerate the Benning Road Transfer Station modernization to begin in FY22, including fully remediating environmental and safety issues at the site, replacing the current facility, and creating new citywide composting capabilities. This site is in dire need of upgrading and renovation. That said, we are frustrated to learn that DPW has no plans to establish a composting facility at the site and no plans for a citywide residential composting program. We urge DOEE to work with DPW to address DC abysmal recycling rate. Ten years after the creation of the DPW Office of Waste Diversion, DC’s residential recycling rate hovers around 25%. Our only District-sponsored composting program relies on citizens to cart their food waste to drop offs at farmers markets. Our compostables and recyclables are being burned and landfilled creating health issues for low income peoples who live near these facilities. DC can and must do better.

Conclusion

Thank you, Councilmember Cheh, for the opportunity to testify today. The Sierra Club believes that over all, DOEE is performing well. But we ask this committee to add funding to the DOEE budget for contamination sampling in the Anacostia River, additional lead pipe replacement, a cost-effective building decarbonization pilot, and Zero Waste Omnibus Amendment Act implementation.