HomeMy WebLinkAbout2020.08.13 Climate Policy Agenda Packet ASHLAND CLIMATE POLICY COMMISSION
August 13, 2020—4:00 to 6:30 PM
Via Zoom; if you are a member of the public who wants to watch live, email
c . etl a,ta ...................................lollr° )asf.i..I. iii,.d,,o,,, l before 10 a.m. on Thursday, g g August 13. This meeting will be recorded and
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uploaded to the website to accom any the minutes.
Meeting Preparation Memo
1. Call to Order
2. Consent Agenda(5 minutes)
2.1. February 13, 2020 Minutes
2.2. Process for Requesting Agenda Items for Other Advisory Bodies
2.3. Letter to Downtown Revitalization CAC
3. Announcements(25 minutes)
3.1. Next Meeting: September 10,2020
3.2. Commission Membership Changes & Open Student Position
3.3. Chair and Vice-Chair Election Next Meeting
3.4. Staff Update
3.4.1. Subcommittee Requirements
3.4.2. USDA Energy Retrofit Loan
3.5. Other Announcements from Commissioners
3.5.1. City Status
3.5.2. Water Master Plan Progress
3.5.3. California All Electric Building Regulations
3.5.4. Conservation and Climate Outreach Commission Joint Meeting
3.6. Reports from Representatives of Other Commissions
4. Public Forum must be submitted via the ,. C co ifact toy i.in writing by 10 a.m. on Wednesday,
August 12 to be included in the minutes.
5. Old Business (20 min)
5.1. Decision: Recommendations to Council (15 min)
5.2. Decision: Defer updating CEAP for one year(5 min)
6. New Business (95 min)
6.1. Commission Structure and Operation(10 min)
6.2. Decision regarding focus of Commission's work going forward(20 min)
6.3. Subcommittee Business
6.3.1.Utilities (3 0 min)
6.3.1.1.Appointment of Jeff Wyatt to the Utility Subcommittee
6.3.1.2.Approval of Electric and Gas Utility Representatives Invite and Outline
6.3.1.3. Governor's Executive Order 20-04 Analysis
6.3.1.4. Master Planning
6.3.1.5. On Bill Energy Financing
6.3.2. Built Environment(20 min)
6.3.2.1.Appointment of Bob Kaplan to the Built Environment Subcommittee
6.3.2.2. Building Decarbonization
6.3.2.3. PV Ready Requirements
6.3.3.Administrative/Planning(15 min)
6.3.3.1.Annual Report to Council
• CPC work to date
• Proposed CPC one-year work plan
• Request for quarterly CPC Council meeting
• Request for one-year delay of CEAP update
• Recommendations to Council
6.3.3.2. Commission-Council Interaction Process
ICI
7. (6:25)Wrap Up
Climate Policy Commission
The Climate Policy Commission shall provide climate plan implementation process oversight and
recommend updates to the CEAP in pursuit of meeting the climate recovery goals, objectives, and targets
set forth in AMC Chapter 9.40.
The Climate Policy Commission shall reflect and represent a wide range of community interests and
perspectives. Such interests shall include,but not be limited to, environmental, energy efficiency,
renewable energy, academic,business, low income,health, communities of color, and elderly interests.
Powers and Duties
A. Develop recommendations for the City of Ashland's Climate and Energy Action Plan(LEAP) and
any updates to the LEAP.
B. Recommend modifications to benchmarks, targets, or actions contained in the climate plan as
needed to incorporate the best available science and practices to achieve the City of Ashland's
climate-related goals and targets.
C. Manage a process for considering amendments and updates to the LEAP.
D. Monitor and make recommendations on the implementation of the CEAP for the community and
for City operations
E. Periodically review progress toward achievement of the CEAP's Greenhouse Gases (GHG) and
fossil fuels reduction targets.
F. Recommend changes in City ordinances, administrative rules, and processes that facilitate or
incentivize residents and businesses to reduce GHG emissions.
G. Work to ensure that the CEAP incorporates long-term social, economic, and environmental goals.
H. Work to ensure that the CEAP is socially equitable for all community members including low-
income, young people,persons of color,the elderly, and those living with disabilities.
Memo
To: Climate Policy Commissioners
From: Tonya Graham
Date: August 4, 2020
Re: August meeting preparation
General Focus of the Commission Moving Forward
Given the hiatus of the past several months, it is important that we spend some time at
this meeting deciding how we will focus our time moving forward. You will recall that
we were supposed to have an updated CEAP to Council by September and were just
about to start our process with the Conservation and Climate Outreach Commission
when COVID-19 hit.
Here is the general outline that Stu,. Rick, and I are proposing for how we focus over the
next 12-16 months:
• Request a planning extension from Council so that we can come forward with a
CEAP plan revision next September. We expected about a six-month process and
this allows us to focus on other elements for the next six months and then start
the process next spring when we will know more about what is possible in terms
of public meetings, etc. related to COVID-19. Adaptation planning will be part of
that effort.
• Focus our energy primarily in two areas: electrification and planning processes.
Stu will be bringing forward some programmatic ideas that need commission
support if they are to be put into action. Given that there will soon be financial
resources that can be invested in this work, it will be important that we
recommend investments that assist the City's finances over time. Electrification
does that because of its relationship with the General Fund.
• Move forward with a discrete (smaller) set of recommendations that were
included originally as part of the emergency declaration process that was
underway when the pandemic arrived. Given that the City has been in an actual
declared state of emergency since March, we are recommending that we do not
put the emergency declaration forward, but that we do select a number of
recommendations in that declaration for Council consideration sooner rather
than later. That list of suggested action items is in the following section.
This set of recommended areas of focus will be part of our discussion at the Commission
meeting and is put forward here as a proposal.
Proposed Recommendations to Council:
• Direct staff to collaborate with the Climate Policy Commission to develop a
comprehensive energy plan, including electric and gas utility plans, that charts a
course for Ashland to meet its near and long-term climate mitigation and
adaptation goals. This planning effort will be underway by November 1.
• Direct staff in collaboration with the Climate Policy and Conservation and Climate
Outreach Commissions to develop an outreach and engagement campaign to
track progress against CEAP goals, and demonstrate actions individual citizens,
businesses, and organizations can take to help the Ashland community meet its
climate mitigation and adaptation goals.
• Direct staff to build on existing internal climate education efforts to ensure that
all City staff receive annual training on the climate crisis and the City of Ashland's
climate goals, with the first staff-wide annual training complete by June 30, 2021
and annually by the end of the fiscal year.
• Require that management level hiring decisions prioritize climate knowledge and
demonstrated leadership in helping communities meet climate goals.
Minutes for the Climate Policy Commission
February 13, 2020
Page Iof5
DRAFT MINUTES FOR THE CLIMATE POLICY COMMISSION
Thursday, February 13, 2020
Siskiyou Room, 51 Winburn Way
1. Call to Order
The meeting was called to order at 4:00 p.m. by Chair Tonya Graham. Commissioners Rick Barth, Chris
Brown,Zander Huston, Ray Mallette, Gary Shaff, and Les Stone were present. Staff liaisons Stu Green
and Adam Hanks were also present. Commissioner Talia Shea was absent and Julian Bell arrived shortly
after the meeting started.
2. Consent Agenda
2.1. January 9, 2020 Minutes
Barth/Shaff moved/seconded to approve the minutes as written. Further discussion: none. All ayes.
Motion passed unanimouslX.
3. Announcements
3.1. Next Meeting: March 12, 2020
3.2. Other Announcements from Commissioners
Mallette announced that the Southern Oregon Climate Action Now(SOCAN)Master Climate Protector
ten-week class started at Rogue Community College(RCC). Stone announced that she traveled to Salem
to join over 1,000 people rallying for action on climate change.
3.3. Reports from Representatives of Other Commissions
4. Public Forum
Jeff Sharpe—quoted item F under the Commission's powers and duties. He wanted the Commission to
press the City Council to take immediate action on climate change. This would include finding an
alternative for City Hall and putting more City money into renewable energy projects.
Huelz Gutcheon—emphasized that there are other ways to finance solar. He is also concerned there is a
lack of discussion about the Climate and Energy Action Plan(LEAP) at the Planning Commission and in
the Community Development Department.
Ken Devine—praised the Conservation and Climate Outreach Commission's (CCOC) climate action card
and corresponding article in the Sneak Preview. He also brought the Earth Smart Money Wise guide
created by the Chamber of Commerce from 2000 and referenced a recent opinion editorial from the New
York Times describing that individuals can cut three to four percent of their emissions while corporations
will need to reduce more to help mitigate climate change.
Larry Cooper—wanted clarification on the reports from representatives of other commissions section.
Graham stated that it is for other Commissioners to present items from the whole Commission. He also
spoke about the Water Master Plan comments from the Climate Policy Commission(CPC) and the need
for a system and staff support to analyze the water conservation program. Cooper also explained that the
design and construction of the Water Treatment Plant needs to incorporate greenhouse gas (GHG)
emissions and have community discussion about the size of the plant,which does not take conservation
efforts into account.
5. Decisions
5.1. Water Master Plan Comments
5.1.1. Does the Commission approve the Comments as presented?
Huston stated that the line"some of these actions may already be mentioned in the WMP draft in a
different format"makes the recommendation unclear and specifics would be more helpful. Mallette said
the line was included to acknowledged that some of the actions may be mentioned in the Water Master
Plan(WMP)in a different format,but it does not currently cite specific CEAP actions. Huston suggested
adding explicitly to the sentence and Hanks suggested this line could go in the cover memo. Some
discussions surrounded about when this would need to be approved to go to Council. Barth recommended
Minutes for the Climate Policy Commission
February 13, 2020
Page 2 of 5
that the Commission should make a decision at this meeting since the Public Works Department is
working on an update to bring back to Council at an undetermined time.
Julian Bell arrived at 4:17 p.m.
Shaff reiterated that more specific comments with page numbers referencing WMP would be helpful to
present to Council. Barth stated that staff will have to review the comments and incorporate them in the
plan. More specific requests could be more difficult as staff will have a better idea of where all of the
items fit in the WMP. Hanks further stated that this will be a staff decision on what to incorporate and
there may be items that staff can apply the comments where the Commission has not indicated. Graham
stated item NS3-2 in CEAP has not been completed and asked if it should be still included. Hanks stated
that it is worth keeping in because it can be used later on once complete. Brown/Stone moved/seconded to
approve the Water Master Plan comments. Further discussion: none. All ayes. Motion passed
unanimously. Mallette stated that this is the first master plan document amended with CEAP and the
Utilities Subcommittee will be able to develop a process from this.
5.1.2. Should the Commission request that staff develop a cover memo to the Public Works
Director requesting that these recommendations be incorporated in the final draft document
and also be included as an attachment to the Council Communication when the item comes
back before Council for final approval of the WMP?
Hanks stated the letter could be about the recommendation and the request for Public Works staff to
include the comments in the Water Master Plan. Shaff asked how will the Commission know what has
been accepted. Hanks stated that typically the final version will not come back to the Commission,but he
can look into the process of having more feedback. This could be incorporated in memo sent to Public
Works staff. The general consensus was to move forward with this.
5.2. Downtown All Ages and Abilities(AAA)Bicycle Facilities Plan
Shaff presented the Downtown All Ages and Abilities (AAA)Bicycle Facilities Plan(see attached).
Discussion included:
• Only four types of bikeways are proposed for Ashland in this plan: Woonerf(low-speed shared
streets) for Pioneer Street,bicycle boulevards for Central Avenue, Granite Street,Winburn Way,
and Third Street,buffered and conventional bicycle lanes for portions of B and Oak Streets, and
protected bicycle lanes for Main Street and Lithia Way.
• The impact on current parking downtown including removing parking in high traffic and loading
zone areas and replacing those on streets with less traffic congestion.
Shaff also reminded the Commission of the letter forwarded last month about the importance of a bicycle
all ages and abilities network. Shaff wanted to see the presentation be forwarded to the Citizens' Advisory
Committee Revitalize Downtown Ashland(CAC),the Transportation System Plan Ad hoc Committee (to
be formed),the Transportation Commission, and eventually the Planning Commission and City Council
as they will adopt the plan. Mallette asked if the recommendation presented in the plan will be adopted or
if the overall goals of increasing safety for riders and reducing GHGs would be focused on. Shaff said no
control will be made by the recommendation and that this was a follow up to Graham's request for more
specific details for the letter.
Hanks asked if the Commission wanted to deliver this to the Council and Planning Commission only
when it is on their agenda. Shaff stated providing them earlier on will be fundamental to helping the
adoption of the plan. Barth requested that the letter when sent also gets sent to the Commission as a final
draft.
Bell/Mallette moved/seconded to propose to confirm these plans be sent to the CAC,proposed
Transportation System Plan Ad hoc Committee,the Transportation Commission,Planning Commission,
and the City Council. Further discussion: Graham agreed with Hanks since the Council receives so much
. .v
information on items it would be better to wait until this issue is scheduled for a City Council meeting.
Bell stated that the plan could be,given to Council through the other Committee's recommendations.
Minutes for the Climate Policy Commission
February 13, 2020
Page 3 of 5
Shaff stated his preference for sending the presentation now with background information to Council,but
it is especially important for the CAC,the proposed Transportation System Plan Ad hoc Committee, and
the Transportation Commission to have it now to help with a different approach especially to the
Revitalize Downtown project. Bell revised his motion to confirm the presentation as discussed by the
CPC be sent to the CAC,proposed Transportation Systems Plan Ad hoc Committee,the Transportation
Commission and the Planning Commission. Mallette kept his second of the motion. All ayes. Motion
passed unanimously.
Hanks clarified that Council will still get the presentation and it can even be updated by the CPC as
needed before then.
5.3. Transportation System Plan Appointment
An Ad hoc Committee will be formed for the Transportation System Plan and it has been requested to
have a member of CPC on the Committee. Shaff volunteered to join this committee on behalf of the
Commission. Brown/Stone moved/seconded to appoint Shaff to the Transportation System Plan Ad hoc
Committee. Further discussion: none. All ayes. Motion passed unanimously.
5.4. Next steps for Climate Emergency Declaration/List of Asks to Council
5.4.1.Will the CPC move forward with a climate emergency declaration or just a list of initial
asks to Council?
Graham informed the Commission about the Council wanting more information about specific asks
including cost and impacts on staff work. The Administrative/Planning Subcommittee will prepare the
feedback from Council with staffs input and bring it back to CPC in March.Huston prepared a document
showing the asks and where they overlap with CEAP which will be included in the
Administrative/Planning Subcommittee notes. Hanks emphasized that all items needs to include
information on time, cost, and capacity for Council to make a decision.
5.4.2.How to address remaining feedback regarding any asks that Council members have
concerns about so that we can finalize the request?
5.5. Potential change of meeting start time
Graham stated the time conflicts with some members and asked the Commissioners if they wanted to start
later to avoid having a lack of quorum. Brown stated he does occasionally have a conflict,but would still
rather be done by 6 p.m. As the vacant position will be filled soon which will help with lack of quorum
issues,the Commission decided to not change the time of the meetings.
5.6. Built Environment representative on Administrative Sub-Committee
5.6.1. Request to appoint Julian Bell to the Administrative Sub-Committee
Graham stated that it would be helpful to have a member of the Built Environment Subcommittee on the
Administrative/Planning Subcommittee as the Utilities Subcommittee is represented by Barth. Bell
volunteered and the Commission agreed to him joining the Subcommittee. The members of the
Administrative/Planning Subcommittee are now Bell,Barth, Graham, and Huston.
6. Subcommittee Updates/Questions
Graham announced that typically this section will be a short update on high level current or future items.
Further details of projects will be outlined in the notes of each Subcommittee.
6.1. Utilities
Barth stated that the Subcommittee has been mainly working on the Water Master Plan comments,but
will continue with the other items on their work plan.
6.2. Built Environment
Bell asked about the flexibility of the Oregon Building Codes in regards to phasing out gas water heaters.
Green stated that since Oregon has a uniform building code there is no flexibility and the legality of the
City phasing out of gas water heaters is undetermined. Barth wondered about lobbying through Council to
the state level for dual building codes that would give flexibility. Graham stated that the opportunity
might come as the building codes did just get more progressive with the most recent adoption. Green
Minutes for the Climate Policy Commission
February 13, 2020
Page 4 of 5
stated that there are groups that are lobbying for dual building codes at the state level and he could loop
the Commission in if they have the time and are interested. Graham also stated that she is on the Energy
and Policy committee for the League of Oregon Cities and they are also discussing this.
6.3. Administrative/Planning
6.3.1. Council Study Session Debrief/Outreach Process
This item was discussed after Communication Expectations. Graham and Barth met with Mayor
Stromberg and Kelly Madding, City Administrator, about the Commission. The process for the
Commission presenting items to Council and receiving Council approval was the main topic. Mallette
asked if there would be another Study Session and Graham stated there will be one on the process.
6.3.2. Coordination with Conservation and Climate Outreach Commission
Graham talked about the agenda item"Reports from Representatives of Other Commissions" as a place
for other Commissions to address the CPC. Mallette asked if these announcements need to be approved
by the Commission. Graham said yes,but there might be an opportunity for informal announcements in
the future. Graham also emphasized signing up for email updates via the website on the other
Commissions which includes agendas,minutes, and their calendar.
A joint meeting with Conservation and Climate Outreach Commission(CCOC)will be held in April
where both can discuss each Commission's role in the CEAP update. The Administrative/Planning
Subcommittee will prepare CPC's role in the update in March for approval by CPC. Hanks also stated
that the staff for CCOC and CPC are the same and they can relay information as needed. Green reminded
the Commission of the contact forms on the website that lets you contact each Commission via email.
6.3.3. Communication Expectations
Graham directed the Commissioners to the Mayor's expectations page included in the memo. Mallette
asked for clarification on the conflict of interest stating prejudice and biased. Green stated that it refers to
if you gain financially from a topic. Graham also stated that Commissioners would need to set any bias
aside to make decisions. Shaff asked about speaking at other Commission meetings. Graham explained
that individual needs to make it clear that they are representing their personal views not the views of the
Commission.
6.3.4. CPC Draft Look Ahead
Barth stated that this was a rough draft,but the intent is to keep the Commission on track for future
meetings and long term planning. Graham would like to see the Subcommittee's work added to keep track
of items that need to go back and forth. Barth stated that since the Administrative/Planning Subcommittee
has many items for their next meeting another draft might not be ready for the March meeting.
7. Unfinished Business
7.1. Gas Blower Ordinance
Shaff presented the affects on health, environment, and noise as reasons for the proposed draft ordinance
and explained that it was expanded to equipment beyond two-cycle engines. The only exception is
chainsaws since their electric counterparts are not as powerful. The ordinance proposes initial phase out
for commercial users and public agencies and a secondary phase out for households,which could also
include an incentive program. Barth asked about reaching out to stakeholders and how Council requested
that outreach goes through staff first. Bell stated Ashland Parks and Recreation Commission's (APRC)
view is that more staff and leaf blowers will be needed to do the same work. Graham asked what the
phase out would include and the Subcommittee needs to talk with staff about engagement. Hanks stated
that the phase out for City operations could be similar to what the City of Portland is doing, CCOC could
work on a best practices guide for outreach, and a legal review will be needed to see what authority the
City has on regulating these items. Brown suggested starting a pilot program and getting feedback from
the community.
Minutes for the Climate Policy Commission
February 13, 2020
Page 5 of 5
7.2. Natural Gas Phase-out Ordinance
Shaff clarified that the ordinance is specific to natural gas water heaters. This narrowed scope will help
with an advanced phase out next. Hanks stated that the Commission should also look at incentive
programs, who is financially impacted, and receive comments from staff about the language and practical
legality all of which will help Council make a decision. Brown stated that water heater replacements are
typically done off the record and an incentive program versus regulation would work better especially for
social equity. Shaff suggested coordination with CCOC to help spread the word about the phase out and
explaining any incentives provided. Hanks stated that many take advantage of incentive programs when
an item breaks instead of trading out a working one. Barth asked about incentives to HVAC or plumbing
contractors. Hanks stated that staff meets with contractors for feedback on programs directly at customers,
but directly to contractors will cause more oversight as pricing could be different per contractor based on
the incentive.
Shaff asked about member's terms expiring soon even though the Commission has been formed. Hanks
stated that as this is a new Commission the terms were tiered,but the reappointment process is simple and
done through the City Recorder.
8. Wrap Up
8.1. Items to be added to next agenda
8.1.1. Progress on CEAP Update
Graham stated that the Administrative/Planning Subcommittee will develop next month's agenda. If any
members wish to add items to the agenda,they need to email her and Barth. The meeting was adjourned
by Chair Graham at 6:00 p.m.
Respectfully submitted,
Elizabeth Taylor, Executive Assistant
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Memo
To: Climate Policy Commission
From: Elizabeth Taylor
Date: March 2020
Re: Requesting Agenda Items for Other Advisory Bodies
Since the Commission has been approving items to send to other advisory bodies, it is
important to note that the items CPC approves to send off does not necessarily mean that the
receiving advisory body has to put that item on the agenda of a future meeting. The approved
items are actually received as informational items and completely up to the receiving advisory
body whether or not they would like to bring it back to a future agenda. I'm assuming most will
be willing to review the items, but keep in mind that they all have their own work scheduled for
future meetings.
Also each advisory body has a set agenda in advance of what they will discuss. Items not on the
agenda are typically not discussed as there has been no noticing of those items to the public.
Most advisory bodies have similar deadlines to CPCs; the agenda is sent out a week before the
next meeting and there is preparation for that agenda that occurs a few days if not a week
before. This needs to be kept in mind when requesting items to be placed on the next
scheduled meeting.
A good practice for CPC going forward would be to approve the items to send to other
Commissions with some clarification of expectations. This could include specifically requesting
items to be placed on a future agenda for discussion and offering a representative of CPC to
attend the meeting to help answer any questions that may arise.
March 12, 2020
Dear Downtown Revitalization Committee Members,
This letter is a formal request from the Climate Policy Committee (CPC), that our recommended bicycle
facilities plan, attached, be included for further discussion and evaluation as part of the Revitalize
Downtown planning process. This can be achieved in either of two ways -- by incorporating the CPC
recommendation into another Citizen Advisory Committee alternative or as a distinct and separate
improvement alternative. In any event, we anticipate that improvements recommended by the CPC will be
fully incorporated into the Revitalize Downtown Plan in order to, ultimately, become a part of the City's
updated Transportation System Plan.
The CPC believes it is crucial for the City's future, and for the future of Ashland's downtown, that all modes
of travel be safe and convenient for all ages and abilities. We recognize that there are a multitude of issues
downtown and that bicycle transportation is but one. Yet the transportation system is a citywide (in fact,
regionwide) network. As such, it must provide continuity throughout the City, ensure that every resident is
served, and provide safe and efficient travel from every origin to every destination. Our Commission
detailed why and how that outcome is necessary in our letter of January 15, 2020. A copy is attached for
your convenience.
Transportation accounts for about 30 percent of Ashland's total greenhouse gas emissions. There are three
principal ways to reduce these emissions to achieve the Climate Energy Action Plan, CEAP, greenhouse gas
reduction targets (as approved by the City Council in 2017 -following extensive public input and
consultation). Two options to reduce emissions could come from increasing the share of electric vehicles,
and improving public transportation options. A third important way is to increase the mode share of people
traveling by bicycle (including a-bike and e-scooter). This will require well-designed infrastructure to ensure
that bicycling (and scootering) is safe and convenient for everyone. Investing in safe bicycle transportation
and clean public transport are also important equity considerations, as well, because they provide good
options for lower income residents to get around town.
For more information please see the National Association of City Transportation Officials, NACTO,
document entitled, Designing for All Ages and Abilities. Communities that have embraced this approach
have transformed the bicycle from a toy to a mode of travel that allows everyone to travel from anywhere
to everywhere--SAFELY.
We would be honored to attend a future meeting to answer questions or provide additional background on
the CPC's recommendation.
Thank you,
Climate Policy Committee, Chair
CC: Ashland Transportation Commission
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To: Revitalize Downtown
From: Climate Policy Committee
Date: January 15, 2020
RE: Ensuring Bicycles are a Viable Form of Transportation
Ensuring that transportation facilities are safe for everyone is a fundamental objective of city planning in
Oregon.To achieve that outcome,facilities for people riding bicycle must be designed,funded and constructed
to be usable by people of all ages and abilities.Traffic volumes and speeds of motor vehicles on major roads in
Ashland necessitate that vulnerable road users (bicyclists and pedestrians) be separated from passing motor
vehicles (see Appendix A—NACTO All Ages and Abilities). Separation is the only way to ensure that people riding
or walking on these roads will not be not killed or severely injured if struck by an automobile (see Appendix B—
Injury and Motor Vehicle Speeds).
Improvements on the major roadways must be complimented with a network of bicycle boulevards throughout
the community that serve to connect every neighborhood with the major street network. Completion of this
network will ensure that bicycles are a viable mode of transportation and could lead to enough people riding
bicycles to account for 20 percent of local travel by 2035 (excluding trips that originate or end out-of-town) and,
possibly,40 percent by 2040. Some cities have already achieved these levels of bicycling.They have achieved
this by creating a transportation system that ensures safety for all modes of travel - not just motor vehicles.
The reduction in the community's dependence upon the automobile is an important strategy in the City's overall
plan to have zero net greenhouse gas emissions by 2050.The transportation sector accounts for more than 30
percent of Ashland's carbon emissions.'These emissions,from the transportation sector,can be reduced by
about one percent for each one percent increase in bicycle mode share.2
Additionally, for each one percent increase in bicycle mode share there is a like reduction in traffic congestion
and parking demand. Maximizing bicycle transportation solves a wide range of challenges faced by the City, its
residents, and the environment as a whole.
Average trip lengths for traditional pedal bicycles are around three miles.The longest axis in Ashland, along the
length of OR99, is just under four miles. E-bikes,whose sales are growing at 100 percent per year 3, can travel 20
miles or more between charges.4 With e-bikes, even the streets above the Boulevard are easily ascended.
Almost anyone can travel anywhere in Ashland on a bike provided the transportation system is changed to
ensure their safety. Importantly, people that travel by bike are likely, if not certainly,to shop locally.
Bicycles are a very inexpensive mode of transportation.Traditional bikes cost a few hundred dollars while
electric-bikes vary widely but start around $1,500. Even the most expensive a-bikes are still much less expensive
than the purchase, and cost of operation and insurance for a motor vehicle. In fact,the cost of driving an
automobile accounts for almost 12 percent of average household income in the USA.S Only expenditures for
'Approximate:According to the City GHG emission inventory,seventeen percent of the City's carbon emissions are attributable to
from residential driving. Roughly an equal amount is attributable to energy used in the construction of motor vehicles and auto
emissions from visitors to the City.
2 The U. N. Fourth Intergovernmental Panel on Climate Change,Assessment Report refers to a study of transport policies in Latin
American cities which found that increasing the share of trips by bicycle from 1%to 10% can reduce the amount of greenhouse gas
emissions in the city by 8.4%
3 https://www.npd.com/wps/portal/npd/us/news/press-releases/2017/its-electric-e-bikes-led-by-higher-price-points-drive-bicycle-
sales-in-the-us/
4 https://www.juicedbikes.com/pages/real-world-range-test
5 U.S. Bureau of Labor Statistics: https://www.bls.gov/news.release/cesan.nr0.htm
housing(25% of average household income) account for a larger share of household expenditures.
Transportation costs even exceed the expenditures for food (10%of household income).Transforming the
transportation system to make bicycling a safe and practical form of transportation could increase local
disposable income and thus reduce the cost of living in Ashland. Importantly,those "savings" could also
provide the basis for increased purchases in local stores.
Little data is available on retail sales before and after installation of a protected bike lane. But in one case, the
percentage increase in retail sales was higher than control sites without bike transportation improvements
and grew up to twice as fast over the course of two years.'
Obesity is a public health crisis. Active transportation,walking and bicycling, create opportunities for people to
integrate exercise into their daily routines.'This is especially important among children and youth,where
utilizing modes of transportation that require physical activity, can alter the trajectory of adult obesity and type
2 diabetes.
The City,through the creation of a safe bicycle network, can complement OSF's efforts to diversify the
demographics of its visitors.Young people account for a large percentage of people who visit Ashland to enjoy
mountain and road biking. These visitors often have high disposable incomes. Making bicycling safe throughout
the City can encourage these visitors to explore town instead of simply riding the trails and rural roads.
Similarly, by making bicycling a safe and practical mode of travel,the City can increase its overall attractiveness
to "remote" workers; potentially key to diversifying the local economy. Remote workers are expected to
account for 50 percent of the work force by 20271 and can live anywhere. Boosting Ashland's draw to young
professional workers, especially given their high relative salaries, will help increase our community's social and
economic diversity.
The City Council's adopted 2017 Climate Energy and Action Plan includes the following statement: "each action
of the CEAP should be implemented in an equitable manner that addresses Ashland's unique equity issues and
concerns."The CEAP also explicitly acknowledges that implementation of the CEAP will provide four co-benefits.
These include "benefits: 1)to low-income or disadvantaged communities, 2) benefits local habitats, recreation,
or natural aesthetic, 3) benefits households, local economy, City operations budget, or jobs and 4) benefits
public health (e.g. by enhancing local air quality)."The bicycle strategy, as described here, includes identifiable
benefits in all of these diverse areas.
In summary, making bicycling a safe mode of travel for everyone has the following benefits:
• Reducing carbon emissions from the transportation sector
• Reducing traffic congestion and parking demand
• Increasing the number of residents who shop locally
• Increasing disposable income for residents who bicycle
• Increasing retail purchases
• Reducing the incidence of obesity—especially among children
6 http://www.nyc.gov/htmI/dot/downloads/pdf/2014-09-03-bicycle-path-data-analysis.pdf
Harvard University: https://www.hsph.harvard.edu/obesity-prevention-source/obesity-prevention/physical-activity-
environment/community-design-active-transportation-and-obesity-prevention/
8 Forbes: https://www.forbes.com/sites/samantharadocchia/2018/07/31/50-of-the-us-workforce-will-soon-be-remote-heres-how-
founders-can-manage-flexible-working-styles/#13b0536d5767
• Diversifying the demographics of visitors to Ashland
• Making Ashland a more attractive place to live for young professionals
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https://www.greentechmedia.com/articles/read/california-nears-tipping-point-on-all-electric-
bu i ld i ng-reg u lations
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Cali*forni*a NearsTippingon All=
Electri*c Regulati*ons for New Bui*ldi*ngs
Even utility PG&E,with its thousands of miles of natural-gas distribution pipelines,is calling for
ending gas hookups for new buildings.
Justin Gerdes July 29,2020
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In 2019,California mandated solar on most new homes. Next up: building electrification.
California is readying what could be the next game-changing update to its building-performance
standards.
Building-performance standards have been saving Californians energy and money for four
decades. Occasionally,updates to the standards,which are reviewed every three years,yield
a breakthrough. In 2019,the beneficiary was solar,with regulators approving a requirement for
rooftop PV arrays on most new homes in the state.
In 2022,the game-changer is likely to be new rules to tip the market toward all-electric new
construction.
Much of the work on the 2022 update to what is officially known as California's Title 24
Building Energy Efficiency Standards has so far been done behind the scenes by staff at the
California Energy Commission. But a recent round of letters from key stakeholders signals the
start of the public phase of the process.
Over the past month,letters submitted to the California Energy Commission by some of the
state's largest utilities,including Pacific Gas and Electric Company, Southern California
Edison and Sacramento Municipal Utility District, as well as the California Community Choice
Association,all carried the same message: adopt an updated energy code that accelerates the
transition to all-electric buildings.
"The letters that you are seeing are basically trying to set the stage and influence that process,"
Pierre Delforge,a building decarbonization expert who tracks the proceeding for the Natural
Resources Defense Council, said in an interview.
Stakeholder workshops on the 2022 update are expected to be held in late August or early
September. Commissioners are scheduled to vote on the new standards in July 2021, and they
will take effect on January 1, 2023.
Buildings are the second-largest source of carbon emissions in California, after transportation.
Shifting to all-electric buildings fueled by renewable power would be a huge boost to the state's
decarbonization efforts.
A new analysis from the Rocky Mountain Institute found that delaying an all-electric
construction requirement to the 2025 code cycle would result in 3 million additional tons of
carbon emissions by 2030 and more than $1 billion of spending on new gas infrastructure.
California's utilitiesget behind all-electricpush
The letters from the electric utilities should not come as a surprise: All-electric buildings,with
electric vehicles parked in the garages,would be a source of long-term load growth for the
utilities.
But the letter from PG&E is a new twist. According to analysts at Rocky Mountain Institute,it's
the first time a dual-fuel utility in the United States has formally called for ending gas hookups in
new buildings.
In the letter,Robert Kenney,PG&E's vice president of state and regulatory affairs,wrote that
"PG&E welcomes the opportunity to support the California Energy Commission's efforts to
advance efficient, all-electric new construction,when it is feasible and cost-effective."
Prudently,for a utility emerging from its second bankruptcy in 20 years,the letter takes the long
view.According to Kenney, "PG&E welcomes the opportunity to avoid investments in new gas
assets that might later prove underutilized as local governments and the state work together to
realize long-term decarbonization objectives."
The avoided sunk costs should include not just gas distribution pipes in the ground,but
appliances installed in homes and offices,argued Debra Gerod,president of the California
chapter of the American Institute of Architects.
"Failure to make this course correction early would result in a continuation of the installation of
equipment and infrastructure that will quickly become obsolete and thus have to be replaced
before its end of life," Gerod wrote. "Future renovation and replacement costs must be included
in cost-effectiveness analysis when considering onsite combustion in buildings."
James Willson,executive director of the Los Angeles chapter of the National Electrical
Contractors Association,urn commissioners to "act as aggressively as realistic now.
Retrofitting buildings to all-electric is much more expensive than initially building all-electric
buildings."
Arlen Orchard,Sacramento Municipal Utility District's CEO and general manager,noted that
all-electric homes aren't just cheaper to build than mixed-fuel homes,but that"in SMUD's
service territory and much of California, all-electric buildings are also cheaper for homeowners
to operate."
SMUD's low electricity rates and generous electrification incentive packages — up to $13,500
for retrofits and up to $5,000 for new single-family homes — have already made all-electric
homes the default for new construction in the Sacramento region.
Making the shift work for California's home builders
Together,the letters signal recognition on the part of some of the state's most powerful special
interests that building electrification is a boulder teetering on a precipice in California — one
final nudge could send it hurtling downhill toward inevitability.
"What the letters are saying, and what [NRDC] is saying,is,let's make sure that we have a clear
conversation around this goal of moving the building code toward all-electric," NRDC's
Delforge told Greentech Media.
As far back as 2018,the California Energy Committed had already concluded that"there is a
growing consensus that building electrification is the most viable and predictable path to zero-
emission buildings."
More recently,are ort (PDF) prepared for the California Energy Commission found that
"building electrification is likely to be a lower-cost,lower-risk long-term strategy compared to
renewable natural gas."
Policy drivers,including former Governor Jerry Brown's executive order calling for
economywide carbon-neutrality_by 2045,mean that in California,decarbonization,not energy
consumption,now guides the development of building standards.
"The 2022 and subsequent standards cycles will have building decarbonization as the primary
goal," the Energy Commission's staff said in a March presentation.
The 2019 update to the building standards created a two-track system for compliance for low-rise
residential buildings — an electric baseline for all-electric homes and a natural-gas baseline for
mixed-fuel homes — so fully electric homes could compete on a level playing field with gas
homes.
Energy commission staff have recommended that the 2022 update maintain the separate
baselines for low-rise residential mixed-fuel and all-electric buildings, as "this approach avoids
performance path compliance barriers for building electrification."
The task now before commissioners is to decide whether to maintain the separate baselines or
adopt a single all-electric baseline for new construction and to determine how to develop
compliance incentives for all-electric buildings of every type.
Commissioners may look for guidance to provisions in ordinances adopted by more than 30 local
governments in California that either require or favor the construction of all-electric new
buildings. Some of the ordinances, such as the policy recently approved in the city of San Luis
Obispo,don't ban natural-gas hookups outright in new buildings but instead make it easier to
build all-electric by requiring that mixed-fuel buildings meet more stringent energy performance
standards.
"We have to find a way that works for the builders — that will give them some flexibility to build
faster [and] cheaper, and at the same time make progress with a clear direction toward full-
electric homes," said Delforge. "We need to find a recipe.And the recipe isn't clear yet."
Climate Policy Commission
Utilities Subcommittee
Utility Invitation
Background
The utilities subcommittee is charged with evaluating and reducing GHG production from the electric
and gas utility supplies.As part of executing that charge the subcommittee is developing an
understanding of how those utilities currently work and how they may evolve. The subcommittee would
like to extend an invitation to the Ashland electric utility director and an Avista representative to make a
presentation and discuss possibilities. Initial requested outlines are below. It is expected that these
outlines might evolve somewhat as part of extending the invitations.
Decisions
The decisions requested from the commission are:
1. Does the commission agree that invitations should be extended to the Ashland electric utility director
and an Avista representative to make presentations as proposed and engage in discussion?
2. If the commission chooses to extend invitations should the presentations and discussions be with
the full commission or the utilities subcommittee?
Outlines
Electric
personal background
existing system overview
future vision
his thoughts on how the CPC can be involved in electric utility planning
BPA 2028 contract process and status
Gas
Avista company overview
local facilities
future plans including renewable gas
renewable gas tariff
H2 injection
fossil gas well through appliance GHG emissions
production through consumption renewable gas GHG emissions net of otherwise released to
atmosphere
3/4/20 Page 1 of 1
EXECUTIVE ORDER NO, 20-04
DIRECTING STATE AGENCIES TO TAKE ACTIONS TO REDUCE AND
REGULATE GREENHOUSE GAS EMISSIONS
WHEREAS, climate change and ocean acidification caused by greenhouse gas
(GHG) emissions are having significant detrimental effects on public health and on
Oregon's economic vitality, natural resources, and environment; and
WHEREAS, climate change has a disproportionate effect on the�physical, mental,
financial, and cultural wellbeing of impacted communities, such as Native
American tribes, communities of color, rural communities, coastal communities,
lower-income households, and other communities traditionally underrepresented in
public -processes who typically have fewer resources for adapting to climate
change and are therefore the most vulnerable to displacement, adverse health
effects,job loss, property damage, and other effects of climate change; and
WHEREAS, climate change is contributing to an 'increase in the frequency and
severity of wildfires in Ore on, endangering public health and safety and damaging
9
rural economies; and
WHEREAS,the world's leading climate scientists, 'including those in the Oregon
Climate Change Research Institute, predict that these serious impacts of climate
change will worsen if prompt action is not taken to curb emissions; and
WHEREAS, the Intergovernmental Panel on Climate Change has *identified
limiting global warming to 2 degrees Celsius or less as necessary to avoid
potentially catastrophic climate change impacts, and remaining-below this
threshold requires accelerated reductions 'in GHG emissions to levels at least 80
percent below 1990 levels by 2050; and
WHEREAS, Oregon, as a member of the U.S. Climate Alliance, has committed to
implementing policies to advance the emissions reduction goals of the international
Paris Agreement; and
WHEREAS, GHG emissions present a significant threat to Oregon's public health,
economy, safety, and environment; and
']'P-.,"JXECUTIVEO'ILDN-""ERjlv9O, 20-04
PAGE TWO
WHEREAS, the transition from fossil fuels to cleaner energy resources can
significantly reduce emissions and increase energy security and the resilience of
Oregon communities in the face of climate change; and
WHEREAS, emissions from the transportation sector are the single largest source
of GHG emissions in Oregon; and
WHEREAS, actions to reduce GHG emissions in Oregon's transportation sector
will provide substantial public health co-benefits by reducing air pollutants from
the combustion of gasoline and diesel fuel that are harmful to human health; and
WHEREAS,the rapid transition from internal combustion engines to zero-emission
IP #
vehicles will play a key role in reducing emissions from the transportation sector
and advancing the state's GHG emissions reduction goals; and
WHEREAS, zero-emission vehicles provide multiple benefits to Oregonians,
including lower operating, maintenance, and fuel costs, and lower emissions of
GHGs and other pollutants; and
WHEREAS, the Legislature established ambitious goals for the adoption of zero-
emission vehicles in Senate Bill 1044 (2019); and
WHEREAS, rapid actions and investments by Oregon's utility sector to reduce
GHG emissions and improve the resilience of the energy system in the face of
climate change and wildfire risk can reduce risks for utility customers; and
WHEREAS, transitioning the traditional natural gas supply to renewable natural
gas can significantly reduce GHG emissions; and
WHEREAS, energy efficiency standards in the built environment can reduce
operating costs, save renters and homeowners money on their utility bills, 'improve
the comfort and habitability of dwellings, and reduce GHG emissions; and
WHEREAS, product energy efficiency standards reduce costs for consumers, save
energy, and reduce GHG emissions; and
EXECUTIVE ORDER NO, 20-04
'PAGE THREE
WHEREAS, in the absence of effective federal engagement on these issues, it is the
Nlity of individual states to take 'immediate actions to address climate
responsi 1 1 1
change and ocean acid ificat i*on* ana
WHEREAS, after thorough hearings within the Oregon Legislature, a majority of
both chambers support addressing climate change, and the failure of the Oregon
Legislature to attain quorum has thwarted legislative action to achieve science-
based GHG emissions reduction goals; and
WHEREAS, given the urgency and severity of the risks from climate change and
ocean acidification, and the failure of the Legislature to address these immediate
harms, the executive branch has a responsibility to the electorate, and a scientific,
economic, and moral imperative to reduce GHG emissions and to reduce the worst
risks of climate change and ocean acidification for future generations, to the
greatest extent possible within existing laws; and
WHEREAS, existing laws grant authority to state agencies to take actions to
regulate and encourage a reduction of GHG emissions in a variety of
circumstances; and
WHEREAS, the Legislature through the Emergency Board took action on March 9,
2020, to provide permanent funding to the executive branch to pursue executive
action on reducing GHG emissions; and
WHEREAS, considering climate change in agency planning and decision making
will help 'inform decisions regarding climate change risks and avoid higher
mitigation and adaptation costs in the future; and
WHEREAS, all agencies with jurisdiction over the sources of GHG emissions will
need to continue to develop and implement programs that reduce emissions to
reach the state's GHG goals; and
WHEREAS, all agencies with jurisdiction overhatural and working landscapes 'in
Oregon will need to prepare and plan for the impacts of climate change and take
actions to encourage carbon sequestration and storage; and
�I&CyCblwd
mate,W&
'E!XECUTIVE ORDER NO. 20-04
PAGEFOUR
WHEREAS, the Legislature previously established the goal of achieving GHG
levels "at least 75 percent below 1990 levels"by 2050, and our State has an urgent,
moral obligation to set and achieve more ambitious GHG reduction goals.
NOW, THEREFORE, IT IS HEREBY DIRECTED AND ORDERED.*
1, State Auencies. The following state commissions and state agencies are
subject to the directives set forth in this Executive Order:
A. Business Oregon;
B. Department of Administrative Services (DAS);
C. Department of Consumer and Business Services Building Codes
Division(BCD);
D. Department of Land Conservation and Development (DLCD) and
Land Conservation and Development Commission(LCDC);
E. Environmental Justice Task Force;
F. Environmental Quality Commission(EQC) and Department of
Environmental Quality (DEQ);
G. Oregon Department of Agriculture (ODA);
H. Oregon Department of Energy (ODOE);
1. Oregon Department of Fish and Wildlife (ODFW),
J. Oregon Department of Forestry (ODF);
K. Oregon Department of Transportation (ODOT) and Oregon
Transportation Commission(OTC);
L. Oregon Global Warming Commission;
M. Oregon Health Authority (OHA);
N. Oregon Water Resources Department (OWRD);
0. Oregon Watershed Enhancement Board (OWEB); and
P. Public Utility Commission of Oregon (PUC).
VJIVILCUTIVE ORDER NO, 20-04
PAGE FIVE
2, GHG.Emissions Reduction Goals. Consistent with the minimum GHG
reduction goals set forth in ORS 468A.205(l)(c),this Executive Order
establishes science-based GHG emissions reduction goals, and calls for the
State of Oregon to reduce 'its GHG emissions (1) at least 45 percent below
1990 emissions levels by 2035; and (2) at least 80 percent below 1990
emissions levels by 2050.
3, General Directives to State Agencies. From the date of this Executive
Order, the state commissions and state agencies listed in paragraph I are
directed to take the following actions:
A. GHG Reduction Goals. Agencies shall exercise any and all
authority and discretion vested in them by law to help facilitate
Oregon's achievement of the GHG emissions reduction goals set
forth in paragraph 2 of this Executive Order,
B. Expedited Agency Processes. To the full extent allowed by law,
agencies shall prioritize and expedite any processes and procedures,
0
including but not limited to rulemaking processes and agency
0 0
dockets,that could accelerate reductions 'in GHG emissions.
C. Ag,ency Decisions, To the full extent allowed by law, agencies shall
consider and integrate climate change, climate change impacts, and
the state's GHG emissions reduction goals 'into their planning,
budgets, investments, and policy making decisions. While carrying
out that directive, agencies are directed to:
(1) Prioritize actions that reduce GHG emissions in a cost-
effective manner;
(2) Prioritize actions that will help vulnerable populations and
impacted communities adapt to climate change impacts; and
(3) Consult with the Environmental Justice Task Force when
evaluating climate change mitigation and adaptation
priorities and actions.
D. Report on Pro-posed Actions. The following agencies are directed to
report to the Governor by May 15, 2020, on proposed actions within
their statutory authority to reduce GHG emissions and mitigate
climate change impacts: DEQ, DLCD, ODA, ODOE, ODFW, ODF,
ODOT, OWRD, OWEB,, and PUC.
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EX"E.4CUTIVE, OR-DER NO. 20-04
PAGE SIX
E. P'''artici-pation in Interagency W,orUrogp on Climate Impacts to
Impacted Communities. The Governor's Office will convene an
interagency workgroup on climate impacts to impacted communities
to develop strategies to guide state climate actions, with
participation by the following agencies and commissions-, DEQ,
DLCD, ODA, ODF, ODFW, ODOE, ODOT, OHA, OWEB,
OWRD, PUC, Environmental Justice Task Force, Oregon Global
Warming Commission, Oregon Parks and Recreation Department,
and Oregon Sustainability Board.
4, Directives to the Environmental Quali Commission and the
Department of Environmental Qualily. In addition to the general
directives set forth in paragraph 3, the EQC and DEQ are directed to take
the following actions:
A. Orejwn 1�s Clean Fuel Standards. Pursuant to its authority under
ORS 468A.265 et seq. and other applicable laws, the EQC and DEQ
shall take actions necessary to amend the low carbon fuel standards,
and the schedule to phase in implementation of those standards, with
the goal of reducing the average amount of GHG emissions per unit
of fuel energy by 20 percent below 2015 levels by 2030, and 25
percent below 2015 levels by 2035. -
B. Clean Fuel Credits for Electrification. The EQC and DEQ are
directed to advance methods accelerating the generation and
aggregation of clean fuels credits by utilities that can advance the
transportation electrification goals set forth in Senate Bill 1044
(2019).
C. Sector-specific GHG Cap and Reduce Pro Pursuant to 'its
authority under ORS 468A.005 et seq. and other applicable laws,the
EQC and DEQ shall take actions necessary to:
(1) Cap and reduce GHG emissions from large stationary
sources of GHG emissions, consistent with the science-based
emissions reduction goals set forth in paragraph 2 of this
Executive Order;
(2) Cap and reduce GHG emissions from transportation fuels,
including gasoline and diesel fuel, consistent with the
science-based emissions reduction goals set forth in
paragraph 2 of this Executive Order; and
conWm
EXECUTIVE ORDER NO. 20-04
PAGESEVEN
(3) Cap and reduce GHG emissions from all other liquid and
gaseous fuels, including natural gas, consistent with the
science-based emissions reduction goals set forth in
paragraph 2 of this Executive Order.
D. Rej�,Yulation of Landfill Methane Emissions. The EQC and DEQ
shall take actions necessary to reduce methane gas emissions from
landfills, as defined in ORS 459.005(14), that are aligned with the
most stringent standards and requirements for reducing methane gas
emissions from landfills adopted among the states having a
boundary with Oregon.
E. Reduction of Food Waste. The EQC and DEQ are directed to take
actions necessary to prevent and recover food waste, with the goal
of reducing food waste by 50 percent by 2030,to reduce GHG
emissions resulting from such waste, including but not limited to
engaging with states and other jurisdictions, industry, food retailers,
and brand manufacturers to develop and 'implement strategies to
prevent and recover food waste.
F. Timeline and Imp,lementation.
(1) No later than May 15, 2020, DEQ shall submit a report to the
Governor regarding an estimated timeline for rulemaking
necessary for implementing the directives of paragraph
4(A)—(B) and paragraph 4(D)—(E), above.
(2) DEQ shall submit a preliminary report to the Governor by
May 15, 2020, regarding program options to cap and reduce
emissions from large stationary sources,transportation fuels,
and other liquid and gaseous fuels that can commence no
later than January 1, 2022. A final report shall be due by
June 30, 2020.
(3) Reports submitted pursuant to paragraph 4 of this Executive
Order also should detail DEQ's plans to engage impacted
*ties during the rulemakcing process, in a manner
communi
consistent with ORS chapter 183.
5. Directives to the Public Utiii!�: Commission of Oretion. In addition to the
general directives set forth 'in paragraph 3, the PUC is directed to consider
the following factors and values, consistent with state law:
EXECUTIVE ORDER NO. 20-04
PAGE EIGHT
A. Statement of Public Interest. It is in the 'interest of utility customers
and the public generally for the utility sector to take actions that
result in rapid reductions of GHG emissions, at reasonable costs, to
levels consistent with the GHG emissions reduction goal's set forth
in paragraph 2 of this Executive Order, including transit ioning to
clean energy resources and expanding low carbon transportation
choices for Oregonians.
B. Regulatory Cons iderations. Executive Order 00-06, which ensures
that the PUC maintains its independence in decision making, 'is
reaffirmed. The directives in this Executive Order are consistent
with Executive Order 00-06. When carrying out its regulatory
functions, the PUC is directed to:
(1) Determine whether utility portfolios and customer programs
reduce risks and costs to utility,customers by making rapid
progress towards reducing GHG emissions consistent with
Oregon's reduction goals;
(2) Encourage electric companies to support transportation
electrification infrastructure that supports GHG reductions,
helps achieve the transportation electrification goals set forth
in Senate Bill 1044 (2019), and is reasonably expected to
result in long-term benefit to customers;
(3) Prioritize proceedings and activities, to the extent consistent
with other legal requirements, that advance decarbonization
in the utility sector, and exercise its broad statutory authority
to reduce GHG emissions, mitigate energy burden
experienced by utility customers, and ensure system
reliability and resource adequacy;
(4) Evaluate electric companies' risk-based wildfire protection
plans and planned activities to protect public safety, reduce
risks to utility customers, and promote energy system
resilience 'in the face of increased wildfire frequency and
severity, and in consideration of the recommendations made
by the Governor's Council on Wildfire Response 2019
Report and Recommendations;
EXECUTIVE ORDER NO, 20-04
PAGE NINE
(5) Convening periodic workshops for purposes of assisting
electric companies, consumer-owned utilities, and operators
of electrical distribution systems to develop and share best
practices for mitigating wildfire risk; and
(6) In cooperation with'Oregon Housing and Community
Services, establish a public process to address and mitigate
differential energy burdens and other inequities of
affordability and environmental justice, including rate design
and other programs to mitigate energy burden.
A
6, Directives to the Department of Consumer and Business Services
IluildinLy Codes Division. In addition to the general directives set forth in
paragraph 3, BCD is directed to take the following actions,:
A. Energy Efficiency Goal for New Construction. BCD, through its
advisory boards and committees, and in cooperation with ODOE, is
directed to adopt building energy efficiency goals for 2030 for new
residential and commercial construction. That goal shall represent at
least a 60 percent reduction"in new building annual site consumption
of energy, excluding electricity used for transportation or
appliances, from the 2006 Oregon residential and commercial codes.
B. Code Projzress and Updates. BCD, through its advisory boards and
committees, and in cooperation with ODOE, 'is directed to evaluate
and report on OregoWs current progress toward achieving the goal
for new residential and commercial buildings, pursuant to paragraph
6(A) of this Executive Order, and options for achieving steady
progress toward the goal over the next three code cycles (2023,
2026, and 2029). Pursuant to 'its authority under ORS 455.500,
BCD also 'I's directed to update the Reach Code on the same
timeline. No later than September 15, 2020, BCD should submit a
report to the Governor on current progress and options for achieving
the goals over the next three code cycles. The report should be
updated every three years thereafter.
C. Baseline Metrics and Reductions. BCD, in cooperation with ODOE,
0
is directed to agree on metrics, based on best practice and academic
research, to inform the baseline and reductions associated with the
code updates set forth in paragraph 6(B).
maww'Ps
ti
EXECUTIVE ORDER NO, 20-04
PAGE TEN
7, Directives to the Oregon Department of Eneru, In addition to the
general directives set forth in paragraph 3, ODOE is directed to take the
following actions:
A. Energy Effic'lenc,y,,,,,,,,,,,,,,Standards. ODOE is directed to pursue emissions
reductions by establishing and updating energy efficiency standards
for products at least to levels equivalent to the most stringent
standards among West Coast jurisdictions, including grid-connected
appliances that can be utilized to manage end-use flexible electrical
loads. ODOE also is directed to periodically evaluate and update
those standards, as practicable, to remain at least equivalent to the
most stringent standards among West Coast j urisdictions.
B. Rulemaking. ODOE is directed to takce actions necessary to
establish and update energy efficiency standards for products sold or
installed in Oregon that include but are not limited to the following-,
(1) High CRI fluorescent lamps;
(2) Computers and computer monitors;
0) Faucets;
(4) Shower heads;
(5) Commercial fryers;
(6) Commercial dishwashers;
(7) Commercial steam cookers;
(8) Residential ventilating fans;
(9) Electric storage water heaters; and
(10) Portable electric spas.
C. Timeline. Any rulemaking necessary to implement the directives set
forth in paragraph 7(B) should be completed by September 1, 2020.
D. Third-Party Validation for Cost Sav ODOE, in cooperation
with BCD, 'is directed to contract with a third party consulting firm
to assess cost 'implications, including long-term energy cost savings,
of the energy efficiency and building code actions set forth 'in
paragraph 6(A)—(B) of this Executive Order.
GO C I M
Mlcyc�ed
EXECUTIVE ORDER NO, 20-04
PAGE ELEVEN
8. Directives to the Department of Administrative Services. In addition to
the general directives set forth in paragraph 3, DAS is directed to take the
following actions:
A. Procurement Model for Zero-Emission Vehicles. DAS is directed to
develop a statewide policy and plan for state agencies to follow for
procuring zero-emission vehicles, which local governments and
special government bodies may use as a model program for
furthering adoption of zero-emission vehicles for their fleets. The
model program shall provide for a rate of procurement of zero-
emission vehicles consistent with the findings and goals set forth in
ORS 283.398 and the provisions of ORS 283.327. The model
program may provide for DAS to participate in, sponsor, conduct, or
administer cooperative procurements in accordance with
ORS 279A.200 to ORS 279A.225, under which DAS, local
governments, and special government bodies may procure zero-
emission vehicles.
B. GHG Imp *cations of Contrac DAS is directed to review
existing state procurement laws and practices to identify potential
improvements that can reduce GHG emissions, consistent with the
GHG reduction goals set forth in paragraph 2 of this Executive
Order. DAS shall provide a report to the Governor no later than
September 15, 2020, detailing options.
C. GHG Reduction Goals and Electrification Goals. DAS is directed to
support the state in meeting the GHG reduction goals set forth in
paragraph 2 of this Executive Order, and the zero-emission vehicle
adoption goals set forth in Senate Bill 1044 (2019), through the
rapid conversion of state fleets to zero-emission vehicles, and the,
expansion of electric vehicle charging infrastructure for public
buildings. DAS shall provide a report to the Governor no later than
September 15, 2020, detailing 'its plan.
9. Directives to the Oregon Trans ortation Commission, Ormyon
A A 0
Department of Transportation, Land Conservation and Develo ment
Commission,Environmental Ouality Commissi d Ore
Department of En
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Ma�w I&J,�
EXECUTIVE ORDER NO. 20-04
PAGE TWELVE
A. In a letter from the Governor, dated September 23, 2019, the OTC,
LCDC, EQC, and ODOE were directed to prioritize implementation
of the Statewide Transportation Strategy, adopted by the OTC.
Those agencies are further directed to include the following
elements in their implementation of the Statewide Transportation
Strategy:
(1) Establishment of GHG emissions reduction performance
metrics; and
(2) Amendments to the Transportation Planning Rule that direct
changes to the transportation plans of metropolitan planning
in
areas to meet GHG reduction goats.
B. ODOT and DLCD are directed to identify and 'implement means to
provide financial and technical assistance to metropolitan planning
areas for amendment to transportation and land use plans that meet
the state GHG reduction goals, or more stringent goals adopted by a
metropolitan planning area.
C. Implementation of the directives set forth in paragraph 9(A)—(B)
shall be at the highest level within the agencies, with regular and
direct reporting to the Governor. The first report shall be made to
the Governor no later than June 30, 2020.
10, Pirectives to the Oregon Department of Transportation. In addition to
the general directives set forth in paragraph 3, ODOT is directed to take the
following actions-,
A. In consultation with DEQ, ODOE, other appropriate state agencies,
and public utilities, ODOT 'is directed to conduct a statewide
transportation electrification infrastructure needs analysis, with
particular focus on rural areas of the state, across use types and
vehicle classes, to facilitate the transportation electrification go'a I s
set forthin Senate Bill 1044 (2019). The study should be completed
no later than June 3 O� 202 1.
B. ODOT is directed to develop and apply a process for evaluating the
GHG emissions 'implications of transportation proj-ects as part of'its
regular capital planning and Statewide Transportation Improvement
Program planning processes. ODOT shall-provide a report on the
process to the Governor no later than June 3 0, 202 1.
EMECUTIVE ORDER NO. 20-04
PAGE THIRTEEN
11, Directives to Oregon Health Auth In addition to the general
directives set forth in paragraph 3, OHA is directed to take the following
actions:
A. OHA is directed to deliver a report to the Governor, the Oregon
Global Warming Commission, and the Environmental Justice Task
Force no later than September 1, 2020, on the public health impacts
of climate change in Oregon, with particular emphasis on the risks
faced by vulnerable communities, 'including Oregon's nine federally
recognized Native American tribes, communities of color, low
income communities, and rural communities. OHA is directed to
update the report annually.
B. OHA is directed to study the impacts of climate change on youth
depression and mental health in Oregon and deliver a report to the
Governor no later than June 3 09 202 1.
C. OHA and the Oregon Occupational Safety and Health
Administration(OSHA) are directed to jointly develop a proposal
for standards to protect workplace employees from exposure to
wildfire smoke and excessive heat. The proposal should be
completed no later than June 30, 2021.
12. 'Directives to Oregon Global Warming Comm ission. In addition to the
general directives set forth in paragraph 3, the Global Warming
Commission is directed to take the following actions:
A. In coordination with ODA, ODF, and OWEB, the Oregon Global
Warming Commission is directed to submit a proposal to the
Governor for consideration of adoption of state goals for carbon
sequestration and storage by Oregon's natural and working
landscapes, including forests, wetlands, and agricultural lands, based
on best available science. The proposal shall be submitted no later
than June 30, 2021.
B. Consistent with its reporting requirements in House Bill 3543
(2007), the Oregon Global Warming Commission shall also include
reporting on progress toward the GHG reduction goals set forth in
paragraph 2 of this Executive Order, and the zero-emission vehicle
adoption goals set forth in S13 1044 (2019).
EXECUTIVE ORDER NO, 20-04
PAGE FOURTEEN
13. Effectiveness. This Executive Order will remain 'in effect unless and until
it is superseded by statute or another Executive Order.
Done at Salem, Oregon, this I 6�ly of March, 2020.
Kate Brown
GOVERNOR
ATTEST:
Bev Clamd
SECRETARY OF STATE
At
At ED
AUTHORS & ACKNOWLEDGEMENTS
AUTHORS ACKNOWLEDGMENTS
&�eirir�i [.`.3HHiimoir[ia aind MHke ��..........I e in c��)e in F��e au-fl-iors t[iain�k fl�e "VHowirig iirldividUa��s 'fbir
giradOLIS��y offeirii�ig fl�)eiir iinsig�hts on t[Js woir�k.
Authors li ted olphobeticolly,All outhors from ��ir icWslioin oin flhis Hst does not 11indlicate eindoirseimeint
Rocky Mouritoin 1nstitut(...,.,,.�. unless otherwise r7oted. o--f flne repoirt's flir idii�igs.
Wiichaei Coiviiflin,E nvir-onmentol Defi-nnse Fund
CONTACTS ��Daiin 0iross Caii,Pocky Mountoin Institute
&heirirli sbillimoria#rnj�.or ��acliei Goid,Americon Council for on Energy
M i�ke ��..........leir i&ein, mhenchen4r Efficient-,Economy
Stephanie Greene,Rocky Mountoin Institute
1 611a Guccillone,Pock y Mountoin Institute
SUGGESTED CITATION Ca"te Hiligh"t,Rocky Mountoin Institute
--ory So/utions III itute
&heiriri [.'.3HHiimoir[ia, Mflke ��..........lein&ein,Regulal 1 a uiira 1 1u'tchiiinsoiin,Rocky Mountoin Inst
for Building Decorbonizotion., Tools for Commissions �3e-toiiny Jones,Inclusive Economics
-a Mefia Cuniniiinghaim,Noturol Resources
ond Other Government Agencies, �'.Roc�ky Mouintain Aiejaiindiii, III
�instirtut.e, 2020, rmi.orq/insiqht/requiatory-solutions- Def�qnse Council
for-buildinq-decarbonization., Aiirnaiinda Myeiirs,Energy Innovotion
iiruce N11111es,E nergy Innovotion
Imoges courtesy of iStock ur-Vess otherwise r�oted. I iiiiirno"U�iy O'Coiiniinoiir,Ft wironmentol Deft it�se Fund
Kaja ��,Rebaiine,PockY MOLlntoin Institute
Jess Shiilpiey,PegulotoryAssistonce Project"
ABOUT ROCKY MOUNTAIN INSTITUTE
1'�oc�ky Mouintain �InSti"Wte (1' %�)......................ain iindepeindeint
1110111�pIr0"filt,'bUinded in 1982........................Lira ins--fbirims gbba�� eineirgy
use "to cireate a c��eain, pirospeirous, aind secuire bw
cairboiri -fut.uire. [t ei�igages busIlinesses, (,..oiriiiFnuini'tJes,
11 Ir"IS"UtILTUO ins, aind ei��tirepir'eineuirs"to acce��eirate flhe
adoptJoiri o--f imair�ket �based SO��Utblr")S"Uhat cost &ff ec-flive��y
sN-f"t firoirir-� -fossfl� ft.je��s to ef:fldei�icy and ireinewa�Nes.
Me oirgainlizatioin �has o--fflces iin �'..'.3asa[t aind 01L]Weir,
.......... ....3
Cobirado; �New Yoir�k City;flhe Sain raincisco 1... ay Airea,
WasNingtoin, ).C.; and
Mou
I G�_J I A 10 1,,�NY/ ,D I U I 10 S I��D(j I I I Ni G (7 A I (D\1 I A 11 \i 1 2
1111111111111F A...... 3 .................... E OF CO ""' .............F ..........F........... N.............FS
EXECUTIVESUMMARY....................................................................................................................................04
INTRODUCTION ...................................................................................................................................................11
WHY REGULATORY AND POLICY CHANGES ARE NEEDED ............................................................1
FRAMEWORK FOR BUILDING DECARBONIZATION .............................................................................16
FOCUS ON EQUITY AND INCLUSION ......................................................................................................17
ALIGN DECARBONIZATION REGULATORY WORK ACROSS STATE AND
LOCALAGENCIES .............................................................................................................................................19
ESTABLISH CLEAR GUIDELINES FOR ALTERNATIVE FUELS ...........................................................21
PLAN FOR WORKFORCE DEVELOPMENT ..............................................................................................26
OPTIMIZE CUSTOMER AND MARKET OFFERINGS .............................................................................27
ALIGN EFFICIENCY POLICIES WITH DECARBONIZATION ................................................................30
UPDATE ELECTRICITY RATE DESIGNS .....................................................................................................33
EXPAND ENERGY SYSTEM PLANNING ....................................................................................................35
MODERNIZE UTILITY BUSINESS MODELS ..............................................................................................37
MANAGE INFRASTRUCTURE AND STRANDED ASSET RISK ...........................................................42
CONCLUSION ..........................................o..........................................................................................................46
ENDNOTES ..........................................................................................................................................................47
�G��MOv���2
G(J II A 0.'Y`S(D II U 0 ld'SII (DII IIIU N CA 0 A 0\J II3
TIT
EX ..........F...........CU..............F VE SUMMARY
Uflh'fles,t hell ir iregWa-Loirs, and s L t Ipohcyirnakeirs dog ellheir FIB e scope o-f cha ire ge in sera cad is Ibiroad......M i irepoirt,
firaimework for the compireheinsive ire �a-toiry
Ihave an oppoirl.,uini'ty"to"Lira ins'-foirim Aimeirill('..'ain homes pirovides a Ll
a ir�d Ibusiinesses'11.,o iFuir�oin c11eain eineirgy,eh iron ili na"fling irc forims required"to trainsi'Lion"to cIIeaire eineirgy in
the fossill fueIIs tha-t dir li ve chirna--te cha ire ge and worein the USI bu llilding sec-to ir,abing wi-flh imore-thain 4-0
air IpoH4.j--tioin. Modeirin cIIeain eineirgy sec[iinobgies Hke s peclific ireco inn irT--i e in d a-fli o iris for ac-tion Mos-L of fll iese
ienda-floins aire firairried in hgh-t o-f flne in --to
6Ie(--tir i c h e�a--[ p u irri ps,especi II y whein pai red wi'fl n rec o irri ir"T
efficien't IblLJHldiings,o"ffeir-the Iprospec-t of'ehiiNina'flin c c irl c in ii IbUfldiings, I bUt."they aIIso off it addlrtioinaIl
eimissb ire s whille i inn piroviiing combir-t, [-ie��piirig �integira'te beine-fl-ts iliincLdiing reduced air po�lu--Hoin and impiroved
ire iriewaINe eineirgy,and irnakf ire g eirieirgy imoire&H:birdaINe. Ihea[tlri,ein irgy a-f-foirdaL)ih-ty, in impiroved equi"ty.
And as IpIIa ire s--for eco ire orn lic iFe cove uin-fbIId foHbwing
the COMH) 1 Ipandeimic,eir u&Fgy Upgrades iir i buH iings Mis irc por-L focuses oin eIIec--Lirifllcatbiri as,the cein-tiraII
cain e ait ir ripoir'Lairrt-LooII for job cirea-till o in and ecoillomili c decairboin iliza-tion sok.j"fli oiri, irc pIIaciing gas apphainc caw"
s
devebpiry-)ein't iin co inn ir"y u jinirties aciross'-flhe cot.jin-tiry. wir-th efficien't eIIec'tiric a[teirina-tives.A[teir ire a"tive fueIIs
such as ire inewaINe ina-tuiraII gas" �II::: IN G).......................for exalrTl Ip IIe
I,,,,,,,ossH fu6Is buirined in US buHIdili ire gs coinl-,irbu-te I bill oirne-t1haine, syn-the-Lic gas, and Ihydirogeire......................shoOd
into ill hion ime-tirlic tons o'-fcairboin dioxili iriu 6 ii in ach Ibe evaIW-Led Iby iregUIa-toirs li n II 6gh--L o-f their Wi g h cos.-ts,
year, imos"t o'-f il.,fro inn gas used to Ire space and wa-ter. II iiirni-ted avaHab ili h-ty, air id itisks o-f coir-i-flir-lued hea[tlh and
u i II d i iri g e iron i s s i o ir isire p ire seint.a sigir ii-fli cairi-L por-tion o--f einviroir i irT e n t a II i ir"n Ip a c t s.
oveiraIl e iry-i iss[l(,.)ir is, in they["iave ir io"t Ibeen d(..,_�chir'iiing.
IN ow,wi-th t Ire el girowill ire g urgency-to addiress chiry ia-te cha ire ge Me firaimework is Ike el oin 10 c ha ire ge s"tra"Legies,as
aind ir(-duce air poll utlioin,Ipu MI6 c u-ti hi"Lies commissions(l')UCs)i de pili c-Led iin I""' h b ilr xt 1......F h ireE�ca"Legoiri li es descirbe the
aciross the couin'tiry in take ciruciaII s"Leps Lo support cIIeaineir Ihohis-tic s"[ira"[egies,tJha-t aire II it in ded-,to suppoirt ths
te(,..:h in II og li ire Iphase ou-t.these eir n ilissions. t,it a ir is-fbirirT-ia--[ill)in, i ire cLd li ir ig a focus oiri equi,ty and im-'llusilloin
flna-L is ciril.Jca�l for the success o--f aII o-their s'tir'a"Legies.,
[--ie oIId irnodeII of u-ti hirLyire gWa"Lli o n [i s inot.conducive
or ins"aince, IN 11 lollills'-fillic Ap III piroaches'-to IllI��)ecaiirllboiinll'lza,tll'loiin,., V-i s e
to a in a e��e c"I iF i c ft..j L u ir e. ��.......... - t inn 6�ec-tiric
heat, IplLllrllIPS can Ip irov ii Ih eNa"t Wi"LhOU"t e inn issilloins, Ibu..j-t s"Lire egies s"tair"t wi,th addressing the ep j i ty i ir"y pac"[s
ins u"Lli h,ty e"fflibeincy Ipirograi in Ipo fill cicis aire ino"L
of I.-Ine it irisfill'tilo ire. II UIa-toiry irc.-forims, ire o ins a-t-teir Ihow
w6H desfillgined"to suppoir"t cus"Lo inn eirs swi-tching firom we II II imea ire fill ire g,wfll Ibe IIess e--ff e.. c"t live in achlievilling
in N6I (gas, Ipir(Taine, or oH)t.o aire o-Cheir(6Iec-tiridrty). soc.4I goaIIs if they faHI"to i ire coirpo ire"te coirn ins unill"lly
ra"Le desigins tiradi"LlioinaIHy focused oin IIed decision imaking and eirisuire ain equi-taINe
co ir iseirvilling elec-trili ci-ty imay dissuade cus-Lomers froirn dis"tiribu,tion o--f the Ibeir iefits o"If a trairisirtion"to
goi ng 6I e cl--L ir ic.And s-tairi daird fl in a ir icilia II a ppiroac h es to e irn i s s li o in s firee bi.iHdliings......Mis sec-tilloin aIIso expk)ires
in gas Iiir'i"f'iFas"tir'LIC"LUir'e, such as spreading these cos-ts
over decades, aire ire o b ire geir co ire sills"Lein t,Mth the ire eed the iin"Leirsec"floins O"f L.JlJH'Ly ire gLAIa'floin will"Uh their
--to quick11y eh run irm"Le fo-ssill -�:b6I coinsuimpl fill o ire. agencies, t1he ire d foir cIIairi--Ly oin a[.fie irina-Live fueIIs
--to ina--LuiraII gas, in IpIIains--for the N-tuire work-foirce
ineeded to by it eineirgy soL'floins"to cus"Lomers.
............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
R'ir'OL1glrlOUt t1his palper,we Use t1he teirr n as s1horthand to refeir to stlate agencies that regUlat.,e Irl 101F)OPOly Ll"Witlies,iincluding pulblk
uUhUes commissions,pulbllc service coirnmissioins,uhlfty LiransporlaUoin coirrimissioins,eLc,
.4 Moll
i G(J i A i(D i�'Y`S 0 1 U i 10 IN! II (D i III II II II II IIN G, CA i i���3 0\i 121,A I 10 IIvJ
TIT
Im Near-Term eliiriim Market Olplpoirtuiinill"Itil es: Phese skraLegiies Im Managing t h e 111'iraiinsill"Itilloin l hese sbraLegiles explore
focus or Lira iris foirim Ii ing Loday's progiraims, mairkeLs, Llh(:.:,� c�hainges needed for a k-ing Leirim hrainsiLik.,, 1 away
airid supply&aiiins and UpdaUng Uhe Fules and iraLes from wildespiread gas use in buildings, iincluding
II atgoveirin Ihow cusLoir"neirs ireceive and pay for complex iss[..,ies airot..ji�id Llhe fi..jLi..iire of gas Alfties and
e,ineirgy and services. �how Lo w1lind dowin gas infirasLirucLuire spendir-ig.
Exhibit 1:
Ten Key Strategies to Support Building Decarbonization
,(Moil
TIT
TOP RECOMMENDATIONS
Set a clear direction for aligning the utility Build the market for new clean energy
..........oiF inew so�ttioi�is
system with the climate imperative. UHHI'ty 20 solutions in buildings.
ire gU�a-toiFs ��ave a ciri'ticJ� iro��e to �p��ay hn �flke �nea-t puimps to �pirogiress a"t s�[.,..,,,)eed, irnairlket
flhe futuire of eineiFgy use aciross fl[ie COL.Iin'tiry aind t[le .bra insfo rim a"Hoin is inecessairy I.iin sta-tes wli-t[i II iil.,t]e existing
...... .......... --ice firoin Ve iF im o in t
success or faHuiFe of c�Himate poHcy. as 23 s-tates inn a iF ket fo it-L�h e s e te c i i�io��ogies. ��...........xpeneir
Ihave estaUHsIhed g ire ein[iouse gas iFeductJoin tair,ge'ts, and I w Y(.-)i*Ianas sIhowin fl ia't iiT"flds"Lire aii n iin Abe ir rtives......................
buHIdiing eir--nissioins Ian e inot.decHined. LJUI H-ty ire gu fla.toir.s taiFgeted,to WhoIIesM eN distiribL i-toirs or cointirac"Loirs ira-flheir
can dIairify flhehr in ir-oIIe in acIan evilling flhese cHima-te fl[)ain iindividuM cus-torneirs......................lhave lip ern successft.,,u II ii in
ta it e,ts......................or IpoHlcyima Ike irs can ii,inaIke-ffia..t iroIIe ceair.....................and es--ta UHis Ian ing inasceint Ianea-t IpuqF-) irinai*e-ts Mien coirinNined
cis--LaUHsIh a visioin f0iF flhe futuire o-f-flhe ut li INty sys"teim flha-t Mt[-i suppIly&aiin eingageimen-t.1
is coo ire sis"Leint Mflh flhose goMs.
o...,c-tlive cus'toir'neiF IpirogiFairns MH Mso N..jindIIe eineirgy
h e�in, Ian e-flheir in d c lica-ted decaitoin lizatioin efficiency and de it-naind iresponse, iincoiqpoiral:e oin Ib i II II
piroceedings or in tiradi'flioinM itate cases, iregUIatoirs dii "to aiaIke eineirgy upgirades affoirdaINe,and
cain coinslisteint]y appIIy a decairbo ire iza-tion IIeins f-,o Ikey ern suire Ipairticipatioin of IIow iir"i cry iqie CUS"t0imeirs'1[11M L.JgIan
decisions aind acc6Ieirat.e flhe tirainsft lioin to eimissions tairgel..ed speinding and co ran irflUinity eir"igageiriieirlt.
fiFee I bui11dili it igs. Oirflly wi-t[-i a cIIeair Iloing teiFim visioir"l a bO U"t AddtioinMHly, )L.JCs cait i Migin exis-fling eineirgy efficiieit icy
t[-ie fu-tuiFe of"utHH-ties aind fl ie eineiFgy fl iey deHive ir it I t 1 e p(,)Hi cicis wi,flh decaiFboiriiza-tioin, lby upda-fling eir"ieirgy
ein e�iFgy sys'teir,ri fit ains-foirini oin flhe scMe ineeded. efficiency iresm.jit-ce s-tarndairds lbased oin to--LM eineirgy
or eimissio ire s, and Iby updatingli n cost erimed"fliveiness
is imeaSL.J ire d and used"to einSUire i"t suppoir'ts poHcy
goMs.And WieiFe m..j'tirigIh--t IpiroNbitioir"is m 1 suppoirtiling
'fU e II switc Ian ing exist., 'Uhese iresl..irilic-floir is cain Ibe ire pIIaced
wi l:�n guideHir"ies"to ern su..jir-e fi jeII sM-tc-Ian ing [i s bern eficiM foiF
cus"inc rneirs and.flhe einviiroin ran ein't.
,(MO
i G U i A 10 1 1 V 110\J S 0 II II U i i i'\iI G II D C A i N i IZ A 11('D\1 1 6
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Stop expanding the gas delivery system. Create a path to wind down gas systems
30 ie has d6Hveiry sys"Leirn is expair idir ig 40 safely and affordably. ......o iFeacIh flhe tairgets
ir,�eaidly 10,000 irr-di IIes eacIli year, Ibiris iFigi ire g fbir cair Ire oiri ire eutiraIkrty"Ire at sta"Les it id (J"ties
gas"to hU ire dire ds O"f VrIOUsa ire ds o-f inew bLJHIdiirigS.2 [1 i S aire in adopthrig, dli ire�c't buflIdiirig eirnissioiris MH I�ave
hi Iiras"Liruc'tuire is typicMHy filiriariced tbirougIh u-tJ ii-I-Jes Fat.e --to -f' diraimaticMHy, as wflH gas coire suirnp"Uoiri. As gas
Ibase accouin-tirig,or i-1 lip e expec-tatioire t[-ial..cus"Loirneirs MH use dhm ire lisIhes, i-t wflH [-.-)e ecoirioimicMHy Ibeire e-fl(,.IiM to
Ipay it off-Uh IFO U g Ir I CM il.Jinued gas bHHs--for decades"to corTie. decoimimissilloin sec-floiris of'Uhe ina"LWFM gas sys-teirn.
Co ire-ti iri u..jed spendiri g oire 'f'OS Si II fi.]Efl ......................aind Maiintaiii-flirig VI�e ein'tire sys"Leim to seirve irniirflimM
flhe e x pectatiori -Hia't cus"loimeirs MH coin-flinue Ipayiing gas c L..j s t o irrier bads woL fld c�ha�Heirige a-f-foirdabiHirty air.-Id
bHHIs a-t today's Iev6ls--to Ipay i-t,off....................aire 11 ire coimpa-tHNe w1rUh po-tein-tiaIHy sIriilrf`t cos-ts substairi--UMHy firoim bw usage
flhe ineed--to eHimiina'te"fossiII 'ftjeII coimbUS"HOIn"to add iress (e.g., cookirig oirfl�y) cus-toirneirs"to o,flheirs ��ess a[D��e
k it c��a . s nate irige Aide firoi m tfi e d�irec--[. II i ma-t.e Ji s k, '1[I�s to 6�ecl.,iri--�,`Y-
Cc� -U devek, �p tairge"Ied
tee flir-iainciM iris --for Fa tepaye rsh Wo MHI �be loII&ng IRE?gu..j Itto it iri s ca work M-Uh i..t t i Ikties Ir a.—S
flhe bHH--for iin-firas-tiruc'tu ire flha-t Ibecorries u ire deru.t.11Hzed 6Iec-tiri--fical-Jo in IpIIa ire s iin oirdeir to ire'!Jire segirfle ire-1-.s o--f tfie
� teim aind imainage costs duir-Jing a gas to 6�ec-tiric iri tfie"fu"lu ire. 1?,e gLlII toirs c ai n re"foirim IrLlIIes flha't goveirirl gas sys
kirie exte ire sio ire s(i.e., biririgirig gas t.o inew buHdiings)air)(J "Lira risli"Hoin. )L-JCs wili IH iFieed to es--LaUks[i inew pa--Uhways foir
� ig flhis,Whic�h imay liiric�We tairge-ted ir iceintives air�d iri c ir'ease flh e it II i r i evakia"U i ng air iy in ew gas capaci.t.y doi ir
expainsio ire s II iike pipe Hi ire es. III IpNicies cairi itequire II caII deadHiries--for discoin--Iiir uiiing gas service.
evak..jal-Joiri o--f ir-ioiri pipes aIli~eiririatiVE?s aire ir"riiir'ii IM i Z E?1,:lh e
fliria ire ciM Ibuirdeire it i ita"tepayeirs 1,o ft.1ind iriew iirifir'aSI..IFUC'tU ire.
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r r:( u„ ,,, / r:( ! » e , s;( r,„»„! r,„ rrrrrnrrr. »»»»,rr, r,»„! ( (»»»»�: rrr rrr" � t � o 1 fk r! j (( r J ( ( 1 c t
�rrrrrr/� 1 l� 1, r / �" � 1, ,( � �1, / »r I r / 1, r ! 1, � � rrrrrrrr%,( � /r 1 / i t / ! I r
fJ r I / lr r
r 1rf fI! l � / 111 rrr,/:I J � � ! / � Jr , � rr
/ ol J 1 < � � � � � r r
/ 1, f 1 1 � f f» 1 r ,f ,,
JI � ,1 / rr � 1 11,. II , III��� �������, «»»„r,„» r,,,,,i,III ,�rr„�III IIIrr�rr,�,1,«�"III»,«,rIII ui , rrrrr „ ,,,,J, �r,«�„r�III ll, rrrIII ,,,,rr,,,III r,„„r�„rrr/»,( ,rrr,,,,,,,,,i,,,,,,,„r ,,,,,,III O rrr,., ����������',«a,rr,,r„,r,,,,,r� � ,,,rrrrIII�u���„III�iariii/i�10((��ffliilllllllllllll r,d r,l
110 O irii fy.t he UC irde ii ire de it bo ire 6 fl ire 'Lo in u_.0 ire gas sys"LeIrTIs aire addiressed ii it-u II ii ir�n a to II u i it-u
110 Coord'ina-te wi,th s"ta-le agenciesii t h i p k:,1 irT'i e ins L iry ire II e
110 Coordina-te .L .t ire irk y ire W a fl it a ii.t h c ii uy actioir u
//iirii olJlllri00/
/ , ,, �//rrrrrrrrr„ rrrrr„rrr»,,, ,�,: ,,,,,� �r, r�,,, °� I I r
� �// � ;p,,I�/ /,, f%,,,,,, � r r �� r�ire,»r„ ,rr,,, �r ,�,,,,,, ,r ,r,,r�,,rr,,»,„� 1./ r,,, f%,,,,,,
uuulff„, rrrrr, �,»„1 � u,/;,!1 � 1 r %n r l »i d'rr, %», d m
I"r,,»„ � /J � � �� �III //// 1 III III�� r�1�III i ,r„»,�, �n��„��„»� II»�� � ���� r�y��l ll ��r„���J�III l�r»r
�/"�iaii//f r'u'�n»n�rnn�� �, ��«,,. ,� ��' �. rrr,«,,. �,,, �,,, �r«�- ��,���/%�m »
110 [.Devebp irii g it e uwu u ire it --for cairboin accouirl.-tiling and l i Ire cts on .fie d t c Ik sources
110 Uindeirs-tairid suIppIIy and ec n-fll ii�..:,.t d if'f ire ir.vt uses .f it [t r ire t ii v fu.0 II
110 ia[teirit i a-t ii ve fu d t it iif f pirograims
i
11 II........Z.A II ii h tedhiriicaII t in irc --f r Iliyd iro e in I II ire :u ii ire
11 I[::::::::: II ii Ire irO C Ll ire irn e i 't ir�:� U ii ire i �: in-t it it: u:.a ii ire u...0 II ii it it ii iiaccording to a
irTi 't h ire e irii ii s ii ire s u ire d ird
�I Jr=. �IIIII P Jf !r � � r t r i J r d r 11� // �� r((� ,rmirr� ,/�
! ��IIIIIIIIII IIII �re��I III III"rrrrr�III r�����arr��III rrl�III�iin�III c "umvr �"eve
�1�� rrr!1 ui,(III II�III�rr/'�:III II�+t l/ n /r r, rRJ rn, ri, rmuG r i i« , � vurt rR n
110 II ire a j u u-t.t ra ire ii t ii o ire .f r u it r i "t gas eirripbyees
11 If;;;)evebp the iri ew h e t IP U irn Ire it Ik f rc
1' II I II G J i A 10 1 "'3 0 1 U II 10 1°J!S 0 1 II:U II II II II N G II I II C A II II II V IIA 0II\1 1
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IIIIIIII F Ir t Ipirogiraims andIre e In iI In u Ii.t I II y to reach MH c u t me Irs
IIIIIIIIS u...0 Ip Ire o Ir I., im a Ir Ikea t Ira In Ir im .,li o Ir-i w 6 t V--i u Ip s tIre a im a in d IM li d s tIre a im it Ir"i c e In.t Ii v e s a In d t Ira it in it In
Illllllli ) II In effective C LI .t Irn e Ir,,,,,,,facing Ire Iro Ir Im
IIIIIIII II::::::::In a Ib II e o in Ib it fli in a in c it Iri g f Ir e II e c"t Ir iI ail c a t.it o In
IIIIIIII I[:::: u,..j In II e efficiency a Irk d 6I e ct Ir it ili c '�.iI o In upgrades
IIIIIIII II:::::::: Irk e=Irn Ind Irc Ire c Irk e= I Irc Ir Intl --for aIH 6Iectiric b U 6II l In g s
IIIIIIII u_.0 pp o it. Ir H o-t Ip irc J t t Ih t cain scaIIe quicklly
uai���\\\ Inl�roc�uls��W�
p m!r nuenuao,yu mu � memo my w.n nuu�pl w.n ui.
���oa, nmiti,, m m. a"� �,ni un�v, r otinq mn�nui,. i o,. ,��„ a m w m�tin,� �u.m� lonip om r ,Vi am,; otinN dui,
kl ii�,��,�ii�» � "u�,"ii���„�,,,n iil�n�„�„��iir i �n�n"\\ �M�n�n�� „„ it�I„�,,,�.iil �,u���nu��� ���ii°fin ,)
mu��,�o A,��
IIIIIIII Ire a tc�:� In Ir y ..f"i it n y Ire u_.0 Ir s t In cl Ir (II..........II..........If,,, --to Ibe Ibased oin t t II e In Ir y aciross fu6s or
greenhouse gas eirriissioins
IIIIIIII If f Ir I [,,,,,,,eff ct it v Iness ciri"Leiria aind eve II u t Ih c t Ihey u I I Ir t Ipohcy goa II s SUch a
I u H i in Ir I In it o in
IIIIIIII n c Ir Irk Ir -t di II cost.of c Ir I C Irk II Ir..,i cost,to s.t
IIIIIIII AcC:, L]IFI L"f( Ir 6 Iri Ira Ur u_I d~r;L U Ire c .u,. .t Ih .t c In Ibe avoided d it t[—i aIH c IIe c t Ir it c: Ib Ll iI IId iI Ir i s
IIIIIIII If Intl c ve Ire Irc Ih it b it ail In Iri fu II it-t Ih Ii Ir i
Illllllli I;;) u a e-a a.t a.L II II II ty II Iri c In.t II ve ft)Ir gas apphair-ices
�QIVi@ 110P\ � WB,,J ` te m e cit i a t .a t...e e,s fli s�vN1
Illllllli Consider ' u II ty II m r) cl-ts of( II e C t Ir II c Ir .t chainges
IIIIIIII I[:::::::::II it Ir n it Irk : r Ire d u ce it In :II it in it Ir i g Nock eIIec.tiric r des
Ir u iI Ir n ,,,,,.v Ir it Iru II ..Iris fi.y Ir it C:Ii Ir u it Ih :iI In it ail c,. Ir..�.. Ik,,,,,,,to rr,,,,,,,peak I Ir it c.��e Ira i
o
Illllllli II'. ev .i 'te t hl e u,..,u s e O......II x��" c h Ir e s t s()...[vo�k.�Iry,i e��:Ir II C_ 6 ectiric Ir t(:
Illllllli .........II Irk--II.C e%Irr-mIrk d chairges in eIIectiric ra-tes
t
IIIIIIIICoiru ider inew 6Iectiric Irate Inc ep-t , such as ul Irip-floin Irnod6I s
IIIIIIII If'R v Il a .t e cosh II II .f it in and p it ii a"H o in s h u I .f Ir gas ra"tes hn Ih a in l in y L Irn
,(Moll
s
riTv
l
JLhe Transi-t-ion
M a n aqoftz I n V&,Pv
08 Expand Energy System
r � �
Planning
IN Il in .f it II t it ii ° gird ii i p a c-ts of II t irii ii n tii n
I� I::::::::n Ih a n ce e n irgy y t irn resiheince abing wil.,[-i II (-:.Lirii"fi ca[,i )irI
IN n ite t[...i irde ii ir...i ireviewing ga s c Ip :"y expainsior...i Hike inew p i Ip II ii n
IN [.'. vd Ip p II nul .f it II ii e ira t II Lirisrii Lii n and ire H ire irmn n.t f e .fl ir...i f the gas d II live iry y .t irn
09 Modernize Utility Business Models
IN II n t ii-f pa-thways for gas utflh-ties in e c itb n ii fu_.0 tu ire
IN Il:".".:.".x 1p n revenue dec u Ip II ii in g
IN n L it d u c(: p it f it ins in e incein'tive mechainisims
IN [.'.) v qp shaired savings h n ii s irrTi
IN If exf it irn op ira"H in g expense and Ip ii.t n II expeirlse accou,..0 n"ii n
10 Manage infrastructure and Stranded Asset Risk
IN lRe u ii ire va IW t ii n of in ire,,,,,.pipes sd u--h ire
IN ........D t ii h a process"t ire t ire Iria ire s s e"I
IN ire a-te a gas sy Le im t it in s ii.Lii n W nul d
,(Mot/
�9Z
II II V�� IL 11 II "°���" IL �� II II II If:� III( II II II::'w'II II 1�� If:.II:C- II II 0Il 11 II�� II�� IIv II ""IIII
nnnnnnn Innnnnni
F 0 N
FRODUC
Il...o meet the iiml eira live of cuirl ling clliimai;e change and li:::::or instance, est makes o leakage �o alliing I eircen
irestoriing cIleari aired Iheal-thy air'to our communiiHes, or all gas consumption and callcullaUng emissions
it its ciriitiicall Thal., Ipolliicyimalkers act to elliimiinate iiml ac.s over too years add 133 imiillllfion rrne.,iriic
greenhouse gas ( l..........I ) emissions from the I Uiilldiing ions of CO2 equivalent eimliissiions per year. l..........fiigheir
sector„ IIn the United States, rossill fuels I urned in estimates of u..,iilp to 3.9 I eirceirit II(.:_...1alkage, callcullatiir�g the
residential and corynirnerciiall Ibuildings account roir (:,imiissiions iim ac-tS. oveirjust 20 years, add ar to 465
at. least oO irr-flIllliioiru rnetiric Loins of'of'CO 2 eguivalleirit, imiilllliion r•netiriic ions
einniissiions Ip it yearr; this nurnb it iincireases Ib
Ihur•udired s o ff.i iillllions of imetriic ..or^is wheiri considering ii1..Chiiir'1g r'01M fossil fuel fired devices"to efficient.
vair ling estirmates of me [-sane leakage firorn oiill and ellectiriic devices I oweired I y clean electricity its cIFUciiall
gas supply chaiinsw k to redudng aired eliiirTiiinatiing I uiilldiir..ig eimiissiions. hill
carbon eimiissions rir•om the electric griid have -fallen
I y a third since 20074 eirriiissiions rirom fossil .wells sin
Ibuildings (have iincireased. ......l his stair-ids sin stairlk con'tiras
ii.i.h scenaitios that,Ikeep the uindeit tairge, levels
or airrniin(. , which require eirnbssiions to decline I y
ir0L,ighlly half. by 2030 acid to rie.zero I y 20,11 D c).5
EXHIBIT 2:
Direct Building Emissions Have Remained Flat over the Past Decade
1200
XZ
�m°i
+4
m�mid
T
\
A I
�MaM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MAm M1MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MAm M1MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MAm M1MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPµ MaM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�µ MaM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MAm M1MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MPM�MP.. a fl 11�
800 mw
mnv
1\A�
600
64
400
460
200
0
2010 2011 2012 2013 2014 2015 2016 2017 2018
Gas Combustion m Oil Propane iiiiiiiii Methane Leakage (Low) Methane Leakage (High)
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................."..°. ...............................
INota II.......o lIealkage sceiriairb ire sir ....�c it is. . /-�lIealkage at too year ,..:� II $ II...�iigh ir�..,I�..�iresents 3.9%IIealk age at,. o year G� II.
Sources- 2018,11"hodiiur i G iFo u Ip 2 019,11" IM II anallysfs
II III �V. II A If... II "°"' II V u If...II II II II II:Ty: II II II:��II IIN(1;n II��II �'� A II II Il II II""°°" 1f II�II'" II °"'llll
[ tudlies across vair�ed geographies, lincluding Califo.3L.Knilng gas iiin OU IF bUildings also has serious heall...h S ir ir da
timpacts,Ipaiticullailly on the Treslpiratory systeirn,and aired Ile w Jersey,7§r iow that Ibuilding electrification is fl[le
c[flildirein are especially susceptible.A r r-.Ie..ta analysis of least cost pat[may to decarbonization.
health studies exairT"flinliing the Iknik Ir etween gas cookhg
and childirein's health found that,childireir-i living iiin Irloi es lt is no suirlpiri.ise,t[�ein,that cities aired st.a-tes allike are
wi-th gas stoves(have a 4. Iperceini.itncreased irislk of Ibegilinining to directly addiress elecl,,iriflcatioin. [,,,,,,,,iroim
experiencling ast[-iirna symptoms aired a 24 perceirl-1. electrification focused legislation lin California to Iheat
i r icireased Filsk of being diagnosed wirth asthirrm Iby a Ipuirnlp deployment goals iiin Maine,"I[--iiere is a clear tireind
doctor.1[��.�:.:.�]iimiinatiing gas combustion ire Ibuildings cain --toward electrification.Once new gas in-firastructu ire is
achieve significant pL.ilbllic heal-th Ibeinefits. Ibuilt,it is tylpically expected to have a (long service l[f ,so
theire is a clear irrilpeirative to Ipllan--today lin oirdeir to ireduce
As a growing nuim[.)eir o--i:,sta,tes and ci,ties set aggressive eimissiloins'-firoirin fossil fuel use iin buil&ngs,ain d to kimit.,the
cl[iii-na-te goals,I bulil&r-ig decairbonliza-floin Ibecoirnes gas dis-tirlilbution syst&n.
i r icireasingly impoirtaint........l(his is promptling Ipollitcyirnalkeis to
consider the ireslpective iroIles of'buildir ig electiriflIcation, [���:-uirtheir-,theire is a growing natural imairket trend toward
alternative fi jels,and eineirgy efficileincy in the overall electrificationm utillities cory"irnisslions(l UCs)and
strategy to achieve these goals. otheir state agencies["iave ain impoir-taint irolle to Treslpoind-to
Ibiggeir tireinds, Il oth irnairket,aid Ipollitcy,including Ipirepairing
W[-iile Ipirolposalts to replace fossil gas with I bliorne-thaine for likely Ipollitcy change to imainagefutuire arislk.
or syr ithe-tic gas alteiFir"ia"tilves appear to offer s1limplkicity i1ir i
imair"itainiling existiing appliances air id utility systeir'r"Is,these FNs Ipalper provides ain overairchIlirig firaimework of(key
olp't[1('.',)ns do notNing to addiress t[i e Ih L.j ir-n a ir 1 IheaIltlh ir-npacts oppor"LLInities for state iregulat(,Yrs to suppoirt Ibuilding
of gas cornbUS"LiOn,and the lirnited supply of a.ffbirdable decairboiniza-tion.Additional iresouirces,including r noire
biloiri�ettune iryialkes-these op-tioris veiry expeinslive to scale. detailed M dirte Ipalpers and recommendations firorn
otheir organizations,are available oin lRlMl's welbsite at.
rmi.orq/insiqht/requiatory-solutions-for-bui[OLn
EXHIBIT 3: decarbonization.,
A Growing Share of US Buildings Are All-Electric
Residential prevalence of all-electric buildings Commercial prevalence of all-electric buildings
Whi��ch a���,�e of W..........is iIfiiuJIS Wh iii dh ai�,e 11111110 Oil"LP,
50% 50%
45% uuuiuuuiuiuiuiuuuiuuuiuiuiuiuuuiuuuiuiuiuiuuuiuuuiuiuiuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu45%
40% uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuiuuuuuuuuuuuuuu40%
35% 35% uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuui
400111111111111111111illillilloomoolilIlIllIIIIIIIIIIIIIIIIIIIIII11111111111111111111
30% 30%
25% 25%
20% 20%
15% '15%
Igo!iiil!ll'i I
10% '10%
5% 5%
0% 0%
2005 2009 2015 1999 2003 2012
an Tbl,,M, om South Wesit am INAidweeft Northeast
,(MO
0
.... . .... .. .... '('�\HZ'Wi 0�\J 1 '112
....... .. ........ ... ........
Source: and i G V_I i A 10 1 110 N' 0 1 U i i i i G, i ("_'A i
TIT
How Does Electrification Reduce Carbon Emissions?
EXHIBIT 4:
The US Electricity System Is Reducing Carbon Emissions Substantially,While Emissions from Fuel Use in Buildings is
Flat to Slightly Increasing
11
Electric Power:
Down 34%
since 2007
11
111
Buildings:
Up 11%since
2007
REGULATORY SOLUTIONS FOR BUILDING DECARBONIZATION 1 13
EXHIBIT 5:
Lifetime Emissions Impact by State—Heat Pumps vs. Gas Furnace(Continental United States)
Al
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Steep declines in coal power generation mean that Historically, heat pumps were primarily used in
modern electric heat pumps have become lower mild climates and did not function well in colder
carbon options to gas heating. This is already true temperatures. New technologies such as inverter-
in most of the country today, and since heating driven heat pumps and vapor injection have changed
equipment will likely operate for 15 years or longer, as this dramatically. The Northeast Energy Efficiency
the US electric system continues to get cleaner,the Partnership maintains a database of cold climate heat
lifetime emissions of a heat pump installed today will pumps,' listing hundreds of devices that operate
almost certainly be lower than gas alternatives across efficiently at 5°F,with some operating as cold as
the country, excepting any isolated pockets where -15°F. Ground source heat pumps, while often more
coal continues to dominate into the 2030s. Even expensive, can provide extremely efficient heat at
when electricity is generated by natural gas,the high very cold temperatures.
efficiencies of heat pumps still produce less carbon
than gas appliances or electric resistance devices.
REGULATORY SOLUTIONS FOR BUILDING DECARBONIZATION 1 14
WHY REGU ....................A...........FORYAND
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PO .................... CY C H A N G E S A R E N E E IIIIIIIIIIIII E D
e--iize bufl�diings a-t,sca��e, substaintiM test,"wNi& effe,(:tive��it it y pireven't d usling irateIpayeir
ire gWaloiry cIhainge MH Ibe ire quhre�d, II ire wiffi funds for IbuHIdhng 6IecLirifk:aLioin. IIIany oUheir La Le
s u Ip Ip o ir..i ii v Ip6kcy firoirn s-tate IegisIIatu ire s. ScaHing stflI Ihave piro[i i N'tio iris oin N6 switc[--ii ire g, and flhese
Ib u jiWiing 6Iectirif ii catioin irTwst caire-fuIHy IbaIIa ire ce sIpeed, must I u..,,iIpdated.
equiLy, and III eaL li in g ireHaNH[y. Sta[e iregLflaLoirs Ihave
a II it oIppoirtu ire il,.y"to IIead I ireiron ovi ire g bainrieirs to Mfln eIIecl-.iri'flcatioin of'buHdiings,the grid impacts of
6�ectiri-fleat,ioin MiHe irnainagiing fl[ie risks. �)egUa.toiry increased load must be carefully managed.WhHe
Ow ige [is uirge ire Uy ire eeded for scave iraII ireasons.. ire fliabHfty aire saf'(::::,,Ly ir(:::"irflai.in Ipairair nouint., Uneire is a
II ire to eir isuire flhal,.utiH-Ly sIpe ire diir-ig on Upgrades
Gas utility business models are based on do snot itesu[t,in inegative IbHI iimIpacts for MI 6�ec.tiric
building out long-lived fossil fuel infrastructure. cus[oirr�eirs, esIpeciaIHy[Inose Who cain Ileasl[affbird it.
Firadi-tior iaII cost o-f se rvii itegWal.Join irneains
fl[iat utiHirlies irnake irnoiney Iby investiling ir i caplrtaII o irneet,cHirna-te goak,the gas utility and the
Ipiro,jecLs with a Iloing ffeUirne. .....F[ie iresOftiing IplhyslicaIl gas transmission and distribution system must
[i in"fir aStIrUCLU ire requires oire goi ire g i laves"tir'ne ire ts,"to fundamentally change.Wit'�ou-- N[ �eadeirsIp and a
irn a i in ta i ir i w id oIpeirate sai.OIly aind, eve in"I MH Uy,Lo imainag ed IpIIain,"Uhis trainsirti on MI Ibe imoire cox Ipe ire sive
Ibe deco ire irT-,fli ssio ire ed.MffiouL a II it IreIIaire for a ir id i ire equiLaINe,wi[[i Uhe cosL of irriai ire Laiining Wle
a[tE?iFinaIIves arid sNfts in iFegu jIIal.-Joiri to D.in a Ib II e t h e irri gas dis-tiriN..jtioin sysl:eirri -faflHkirig oin cusl:oirr�eirs, II iikeIIy
irateIp aye ire MI I Ipaying--for-fossflI i ire"fir astirLICILI ire II ow i ire coirne CUS"10inneirs and ireire-ters,Wno aire IIess
for decades to coime- gull irnalc o II irequire aINe to 6Iecbrify. ff iregOaLoirs and IpoH cyan aIke irs
diras-tJcMIy redu di ire g gas u a IIoirigIke e-foire flhe eirld can IpiroactiveIly IpIIaire--for a ima ire aged"Lira ire si'tJI(.-_)ir1,.it-ie
of`flie u se"[UII II iifie of'inew i rive stinne inn s. move towaird decaitoir 1liziling IbuiMhgs cair i Ibe ran(".)ire
equiLaUle and affoirdaINe.
Regulation and policy have always been
intertwined,and they require a refresh. Ilia the past, Mt..j[tilplle st,&Les Ihave beguin to take action Lowaird Unese
a��s. F��oir exairn�p��e, S1 114.........7 7' Caia d i re cted
poHcy expliciHy pirefeirired gas to 6�e(, Liric heaUing, g 11 in Hfoirin
as 1.1he foirimeir was cI�ieapeir air-id imoire e-f-ficien-I.... t1he CI)UC t-,o estabHisIh two IbuiHi ire g eIIectiri'fica'tioire
Iir-i Ipa ire 16I, IpoHcy evoIIved to Ip II c irestirictJoins pirogirairns; flh II U ireII ceire-illy apIpiroved Ibo-t[i Ipiroject.s,
on fu6I swil.cN ire g air id coirT-i Ire IHcaLed cost le s for aIHocaLi ire g $200 irnflHkoin to 6Ie(-Airifi'ca Uioire efforts
efficiency Iprogiraims.As tecIninoIlogies, girid irnixes, targeting in ew CM IS"ITLICUOIn, esIpeciMHy II ow iincoime
and e-f-flicilleincies iave cIhainged, 6Iectiri'ficatioiri i Ihousing, and irnairket trains-foirirnatim i
eime irk i ire g as ffie IIeasL cost IpaL[�way t IbuHIdi ire
g
decairbo ire izal-Joire,and IpoHcy iq-,iust adap't accoirdi ire jy. II in CoIIoirado, ire cein-t IIegisIIatioin diirects flhe uc to
Given flhat 23 sl-.at.es and flhe [".)is"tirict 0-f COIIUiry flbia li incIIude flhe sociM cos--t oi:"cairboin hn decision ni a Ik i in g,
Ihave expIkdL gire eire Ihouse g fireducUoin [airge[s,9 iincIWiing for 6Iectirffica[Jioin. Maine and INew York
I.In Ihave agg ire ssive ieat P U irn p Lairge"t.s.1 1 At Ieast UCs ir-ieed to adapt.iin order t.o SL.IcceSS"N�Hy bo
ili irnpIIeirneint aire ireg0a.gip L[i ii IpoIky outcoirne. 30 cities Ihave Ipassed oird ii n a in c Ipirek,-�ir iris ire g or
ire qu ili iriit ig aIH 6IecLiric in consUrucLio ire.11 As buiWhng
Gi1ven--tod ay's facts and Ipirilloirill"I'Jes, regulation that dec air Ike oinizatiloire i ire cire ases ill in Irnpoirta ire ce, aII s-tal-.es MH
explicitly or implicitly prevents electrification must ineed --to dev6 op s"Lira"Leg lies"to SL]ppoirt t1hese effbirts.
be altered. CaHifoirinia Ihas uIpdaLed Uhe 11h ire e Ip ro in g
A moll
II II II:0\i II Z'A I 10 N IIlli�5 II IIG U IIA 10 1 S i �J i i(D'1�S D IIU II IIII IIN G II II C A II
TIT
FRAMEWORK FOR
BUILDING DECARBONIZATION
C-tors and state policyrnalkeirs s[iould PUrsue f t �ese SOlUtiOins can ai��d shOUld �be Rle-gUla Some o J
refbirim along lei n key strateg lies"to support buildling 11impleimented hmimedliately; others should �be
decarboinizatilon,wirth a central focus on equity and lincorporated kri-to plains fo the ftsture. l Regulators Mll
nth roL..jgh0LTt.. ......l his firaimework provides an ineed to bail irT-iainy piriori"Liles and Lei sideiratJoins as
overview o,f the wide irainge Of'SOlUtiOins regii Alatoir's they consideir these options, soime of''these SOlUtiOlnS
might pursue in suppoirt of bu Mil ing decarboinization, will require policy chainge or policy ccat:irdiiinaIon with
rainging firom ir"iceintives for hrid lividual ap�r_Ali ainces to o-their state agendes. Coordination and a clear visiloin
f the path to b0ldliing decairboiniza-fl oin ciuc II �be rlial
(".onsiderhrig the ineed --for a imairiaged trainsi"floin of the o
gas distribution system. to Success.
EXHIBIT 6:
Ten Key Strategies to Support Building Decarbonization
..........................
Moll
G U i A 10 1�"e,S 0 1 110 N S 0 1 G C A i \i i A 110\1
nnnnnnn
FOCUS ON
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NC
US ON
1 ,0 EQU AND nnnnnnnnnm
and inclusion i u t I e considered t Ih irc u g Ih ru i:.
all -the re e ire i.ia II solutions i ire this.fir irnewo r k y low.......a in d.......
imodeirate incor...n (II.........III II) cus-toirneirs andii s d v in to g c] The San JoaquinDisadvantaged
im im u in i t i e s (IC:::))AC) cannot, Ibe an .l., r iw h u_]g h t a Communities Pilot • -
Without. I irc (...tii v tt iru t ii ire airid actior-1, t Ih ire ii
efforts •rnia's San Joaquin Valley
real irisk that t Ih coirnir.n U ire iitii es will not only i ii s s out
• • example of - community
in Ur-ie potential Ibeiriefits of I u ii II ii n II e c.t it iifii c t ii ire, engagement can look like. The San Joaquin
Ib u_.0 t.U�mu t.they ii II II lip e left..to lip y f ir..t Ihi e irlising costs
f a gas iitiriilui::iin systeirn as weal-Uhyutiir
electrify and stop paying gas bills.
solutions to overcome their challenges. These San
Abseint active planning, II o .......ii ire co me CLIs"tomers aire Joaquin Valley communities have not been served
irru o t II ii Ike II y to be u..j ire I II e to .rfo irk .t II e :t it iify Ure E)ii it by gas infrastructure and instead heat their homes
with propane or wood, with serious cost, health, and
Ih o irn c , oir.t live in irental hou..Jsiing wirthou.it t Ihl c l ii II i y climate impacts.
t o it-t it o II whetheir.t electirify. Any complete"Lira in i ii n
away firom fossil fuels in I uW.0 ii II 'ii n g s ire u_.0 s t,meaningfully .
y partnering with trusted local organizations and
include II II air...0 d II::::)AC c u s Ica irn e it a II ire c it e it to im e(V,..i::
climate goals, eIItirii.�iifliru cannot Ibe onlyfor.the doing deep community engagement, Commissioner
Martha Guzman Aceves and her
wealthy., Specific ire M i e nd tii ire follow. proceeding resulting in electrification pilots in 11
Run inclusive i . IL........III II and l'.'..".)AC communities. Community decision-making made
c irn irn u ire ii ty advocates Ih ve not of..i: ire Ibeein Ip it un clear that the priorities of the residents of these
of energy lip II ii cy im a Ik i ire , and as a result..i,Ih ii it communities revolved around energy affordability,
it iru t ire t [iave suffeired ......II......Ih ire r irc , as regulatory health, and safety, as well as workforce development,
rather than technology or renewable energy. Specific
and 1policy decilsions aire imade, .these iru ir...0.......
considerations, including extended warranties,
traditional stakeholders......................fo it x i I�.)II e, comirnuirlirty.......
o irk ir'u ii :atii o ire , II o .......incoirne advocates, and
iruv ii iro ire irT"u ire L II i u...0 s L ii ce girOUpS......................i u...0 S t Ibe irrru e ire ii in ..fr..0 II II y like access to home broadband, were included in the
included t Ih irc uru Ih u_.0 t.t the Ipirocess. decision as a direct result of community input.
Ili e a in ii in g ru II ii it i c..11 u ii ire ire y ir-iclude inew types of'
outireach and imoire collabora-tive processes, as wefll
Enable community-led decision-ma ki . a tIheir
as active d U tii ire m I t Ih ii iru Ik ii ire g ire u II t iry Ipirocesses
t Ih iru state ag ire c ie it utilities de te it ir..u,..0 ii in ii in g W h a .t Ih
iFn ii g h.t ii in c II u...1 6D,.taking t h e tii ir...n to do irc I u.....0 s t s t. Ih o II d e it
� II u...�.�ii cm>ire ��ire .�c�it l ii.�ii c:� c� i i u_�ire ii�ii Ih ire
u..u.�ir III, choosing ..� it ire��t c�t Ih ^ir...�lhi ire t ire� i�ii ire�"�II
iritt ire coirniments andhearings, a ire ' woirkiiing with
possible, coirnimur...�ii fl s should Ih ve Ui e a I ii II ii ty.L
�i ( their � ir�u ire c�-�� ' a ir�u r� e i ire .�:Ihsolutions
r�u u�u fir II �.�ii II ii ua�is ire ��.�iIre... ire� inii ire�� ii ire u: iry ire ire �� it
�
irc�I it ii � � ..i;lh i m
i I�...i e ii r Ire r ii c;i lip 'tii o ire, a II i f it ir...0 i does, ir....1 e ir...) U ire.that,
o irg a ir....0 i i:ii o ires with "fewer res0L.1irces t Ih iru uw.0 t ii II iitii a ire
If,,,,,,:,o it example,.the Netherlands ii s I ii iru e iris ireg another
ab
II .t rT'i e ire ii ire ru�u II II l � it ti cw ii lip e ii ru l r e d i in u If:::::::: it
irc ire xa rn l II e of �it i u�u n ii�:y.......ll e d d(:�c_ii ii ire ir�i a Ikii ire g n1:�
ire o ire on ilnClUsive regulatory Iprocesses, s e e
Fhe e-thirllini. Ihas a goal of Iliiir...niiinatiin inat.,u..JirIl gas
ire 1p oiti,Process for
....................................................................................................................................... .................m while.t Ibuildings
usage y 2050, y ... Ire it e inn �
MO
IL.II (n j II A 1 0 IR, "S 0 II �J 1f...10 IIv1!") 0 R, Ll II II I[:)II Il14 GA II Ni II 7 ...1...II 0 1°
�'STITv�``
Greenlining Institute's Equitable Building
Electrification
G ree n l i n i n g I nstitute's Equitable Building Electrifi-
cationil report highlights five key steps for aligning
building electrification efforts with equity goals and
provides a more detailed discussion of how to imple-
ment these principles in practice:
1. Assess the Communities' Needs
2. Establish Community-Led Decision-Making
3. Develop Metrics and a Plan for Tracking
4. Ensure Funding and Program Leveraging
5. Improve Outcomes
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As t .Ie,,,,,,, aired c ii.ty,,,,,,II eve II II ii irri to action i irn'te ire ii fii es IM Coordinatei iwith
airouirid flh e CCU u irn.t iry, so MH f;h e qppoirtuinaty i it complementary roles.WIIe `I uJ C I II y" i n i'c it i"t
it e�, it irk ii ire u i irn I e, it n If,,, and :Ih �it irC II ii it n irC u u II ;ii ire u ii II i uii �,,.: it o irn ii [ii o ir�n e ff it[
t .fie e irn�ii e , II e ii II 'h.,u ire , air id i"H e ......II......Ian e scMe ir'eq u_u ii ire.0 h ii s woirk to h I Ipe ire ii rmn co ire C4;e ir..t i i:h.i n e Ip II ii cy
-f..L it in fo it a tii ire irn e e e d t C:f II ii it n ii in .te I u ii II i irn air-id re U ufi C irn Ir n q I e irn ii ire g u u Irn e it a i;e agencies,
e it i ii s ii e irn ii II II ire CCU uw,u ii ire a c6heslive s u iron Le g y aciross iiricbdiing Uhose ire Ipe r n ii IN e for uw,u ii II d ii ing codes,air
eve it irn irfn e iri l..m ......II.....o imaxiia,iize I iro g ire s s ii ire iron e e�ii irn s Ih a ire d q u.,u a II ii uy, a ern Il lh,aind e irnvii iFo iri it-nrn e irn a II c- iri se iry JC in
CCU I j e c a ii ve , li:::: LJ rmn o u h e it Cave it ire irTi e ire. ii C_'.�s c ire
Lake U h e f6Howiing s Le I . a If,,,,,, it exaimIpIIe, u h e [gin l(- a e irn ii Cis respoinsHNe for
i e e t i in c II i ran 'te a it e ins ii iri CaHfbiririia a irn d Ccfloirado
i r i i i r ire t�Ih e C II ii f)irirn ii Air If Rey u u irC e I[.31 o it ' (C ....III If;;;)
gas systems are addressed in climatei irn Uh e Air QUMity Co in[iFo II CC irn i ii ii rrn ( C C ),
o iron i ii s ii n ii u h a dI e it ran irn te"to qp Ip C it t 't 'te ire Ii:)e c t ii ve Il .Yet.success--VI d e it b in ii t ii on s t it a t e y
II i irTi e o II ii cy[--nave g ire a..e it II e e y.t i ir.T..,n I II e i ern, MHI ako ire q u...0 ii ire ii irnn Ire iFove d b[.jHdiing eire e irC y codes
c irea Uv( air--id co i mpIIexII u.A11 CCU ins, ii in c II..i i i irn f Ih ose (i irn C II ii fb irirn i gin, ire u_fl a ue d Iby Uh e C II ii r it ire ii II..........in e it p y
II a i u is ii irn.h ii s ireport.Wheire su& a imait i n ire ii ire o i. Co im ire n ii s s ii irmn) as w6H as qpdated u isii II ii ty ireg u II a u.ii irn,
II ire Cry cII e:n ir, II e i II u; irs it Cave it i n o its irn Ip irC vie -i' II II ii in u�n in e it t h e I u�irvii e rr of i::li n e li:::�U C o li::::: it I um a ii II i it n
i u Ih irC u u Ih irn II ireexecutive ..�irk ir° , irn =,� it Ike irn i uii irn I�.:)irC� ire u u fi C:r lklly, Ir nee ii ffe ire irn L
U C s c ir...i c II e idly II II o uw.0 t gaps in u h e ii it a iwj t lr i o iris i y i.:h in a e ire ii es, ii t Ir n 6��e ir�.�ern is I �u i Cave irll��I Ir:�ii ir...n �u�.h it iri ii �,
lTlIreede IpirogiFess., MHI (have to woirk t eflheit to devebIpn .nIIii dried set
of sLairidairds, i irn ce iri Lives,gun irn d FegL.JaLioiris ulh a L S uJ I I O it u
II rn otb e it woirds, ii f.flh e s ta te Ihas c:I ea it c H irni n te III , the iron l i ' d e iFb o iri ii -J o irn Ci f I u ii N ii n
s is in I-i e case a in irn e it y--two dozer n . e ms i'u
s Ih o u II i Ilse cIIeair U h L I h e u a ii Hly coirflimission is in a Given [I�n e seirbus ii in CCU o it ii it quMfty aind h e a Il h
s o II e II y iri e irn i ii c ire g U II 'o ir, bul,.Ihas an obHgatioiri cm ice it irn s.iro iron Ih uMli i it i g gas ii irn Ih i e , [i e ire
irn d a u_,u t h o ir',ii ty to ta Ike e it M irC in irrn e irn i,u II coinceirins iinl.,o i any Ida e airi i iron I o it.,a in'i;it II e.f it Ih e [Ih a g e irn ii e .te
ce u ri a M n ii II e irn a Ik ii irn g decisioit is. s q I o it a buiUiing e II ec krffi Gwen uii e irn. State ecoinoimic
d eve II I ir'n(:_I irn i. E:'I I a ir'i:ir'Tn e rmn.s Ih ave a vMk...0 I II e iro II:D. .t
it n ii ..i Ih e li:::: ( ..ii irn Ih C ii ii II irevC it n u II y ii irn u n ir,...0 ii irn it Ik b irce eve II C I im e iat..i: it those
Uheim firoim Lakilling u h e actions it n e e d e fir-cHirnaLe dqpbying new Ih e L I um u i IsoIIu[Joins.
Ire iro ire ,"Uhey s li...n o u...n II d cII ern irll y irm rTn U ri i c a ..e .-b C. se
IIeg III irir6eir Ile ii Il ni:uuirC m If:::::( it exai I IIe, � IIII iiirn
in ii irnve Uii C uiive I u II Ik BFocess to e Ip b ire LiFeinds,
tecli...nireoIICCUgiies, air-id (:)IIii-.1ydiriiveits iiin WI e eIIectiriic
e c to ir,'Uh e C: irer o irn JC reques-ted vh e II e ii II tu ire
it irn[UN-- I')LJC Cup I a iri e d aUffioirfty to m Ike C=��c i s ii e irn
a it u_..0 rrvn c II ii im .te c[i a in g e aind eq u ii-ty.11",
A MOv���2
1 u J II II G U II A.1...0 1 "e" S(D II.V_J.I...10IN S II U II II II II G C A II N
State,,,,,,,II eve II Ib U ii II ii ire g codes can a ko Ip II y a sigirifficairl.
iroIIe in Ib U ii II&t q d c ir[)o rn ii a fl ire. We aire aIIiready
seeingflIn e iimIpact of I c a I u ii d ii ire g c-o s-Ih it t...i Ih y
r
codes Uh a L I it fe it oir.ir-eq..j ii it-e aII II,,,,,,, k c tirii ire e
c n S'tIi I u tk_)ir'I a abing wi-fln suppoir"Hing imeasuires Hike
I r.
-f-fii c ii eire y and deimaindTresponse. d iitii ire II Ily as
Ili [Ire u i p Lectinobgy advainces,states c. ire SUppOIFL
flhe saIIer a le a-t Ire u inri Iris.flh a-t use bw gbbaII a it-irfl ii in
Ip to irrtii II (GM ire firii e ira it rt ;,
Coordinate state energy regulation with city
action. r 1 yryt to Ih ve t I e "tte ir rt a v //,,,� � IIi�I�III IIIIIfIIIuIIlIiIlIiI�IIiIlIIIiIIIuIIuII IIII°IIII I�� �����I�i
and ire �.,�it i u v t �Ih � it I ire u z a i.ii in ff( it�
Ire /
a n ;
in a iru � .. ..li...� a�:. II v II R II ;a II,,,, it II
Ire Ir� �- � y y y7
r
g
II a���w�,)iriru a��y �� ���I��� ..�ii ir ..�..t I ��ir.i ire �[u��u ire II a a iru it i e
coins Lituc Uoin.11 I ire J(.fly 2019, [[i e II (-f rIke II y City
C o u ire ii II vo-ted to ire r:i u u ire aIH ire ew s u ir'u II e f ire ii II y
homes and s i a II II apairtiment Ib L ii II i in .t Ih ve
le II e .�irii ii n fir s t it u c Lu ire ira Ii e it Uh it-) ire a lu it II gas. ......a
decision s uw.0 Ire Ire red Iby flhe I c II i ir...iv o ir,,,,,,,owned
u�u II,,,,,,, u�u II u u ii II ii.y, If:::: ���4"f i I[:::::::::IIle ct it i cm
Since I-b in,30 cities in CaH--fbinnia and one in
Iv s s Ih u u s e-tt Ih ve Ipassed imeasuires flh -t lip ire r it
II II eIIecbric consUrucLioiri.20 Sain Jose, fti e Le ir&h,,,,,,,
II irg est ii-ty in t["ie CO u..I it"itiry, FeqUiit"es aIHI new Ib u ii II di ire g
G,
to Ibe aIHI....... II l it u u 01-ties e k li..0 le ire Ih ve t Ike ire ..Uh e ir-
� 4l P
U
x;
a Ire Ire ima&e s, i ire II U ii it i rf iris n g ii ire c iru liiv s for IheaL
0 0
Ire u�u i lips, ii ire s Li'tu�u t a ire u ii N a ire g lip e r o it irn irece s-taindaii-d S,21
or i inte.,it ,ta iu i leIIec'tiri'fl 'tii ire ii ire to home eineirgy
Illull�r
ru�.dvu ur Irire ir ffiese Lypes of city evell
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ire.���, ' i. I ire c t u v.� in ire ire,w�a ire and f� it a it i w ��,,���/�/,�/�,� � ,�
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G�J Ii A 10II 1 II 0 N'S 0 1 Z U II II II 20
�STITV��
L
i
Understanding the Different Alternate Fuels
Biomethane, the fuel most often associated with the
term "renewable natural gas" or RNG, is methane
captured from organic waste sources such as
landfills, wastewater, or dairies, and processed to
be suitable for injection into gas pipelines. The
major limitations of Biomethane are its limited
supply, competing demands, and high cost. The US
Department of Energy's National Renewable Energy
Laboratory has estimated the national potential
supply of Biomethane at 420 billion cubic feet.24
Some of this potential supply may be avoided entirely
with approaches such as landfill waste diversion.
Even if this entire supply were captured, processed,
and distributed to buildings, it would only meet 5
percent oftoday's demand.
Hydrogen could be blended with natural gas in
today's pipes with minimal infrastructure upgrades,
but only to approximately 7 percent blend levels (by
energy content).25 Pure hydrogen could hypothetically
be distributed to homes and businesses, but this
would require major upgrades or replacements to gas
distribution infrastructure and to end-use equipment—
gas furnaces, boilers,water heaters, and more in
millions of buildings would need to be replaced with
devices configured to burn hydrogen.
Synthetic methane can be created in a power-to-
gas application that uses the Sabatier reaction to
produce methane from hydrogen and carbon dioxide.
This process also faces high costs and relies on
immature technology such as direct air capture to
provide carbon dioxide. This approach still requires
producing and distributing methane, so its carbon-
free credentials rely on eliminating leaks.
Methane emissions in today's US oil and gas supply
chain produce global warming impact comparable
to that from combusting the gas itself." In some oil
and gas-producing regions, methane emissions are
especially high, reaching 3.7 percent of gross gas
extraction.27 Any new supply chain developed to
produce and distribute synthetic methane would face
similar risk of leakage impacts. r
AF�h MP, / �'
� ,„-,:I � ( � x
�� ��.,� 4 it ,,,°'"° "n
Al A
Low-methane emissions as is as produced
ip
J,
according to a standard desi ned to curb methane
9 J
emissions at the production site, where over 50 r� �� ��� �� ���°° lY
tk Ali"
percent of methane emissions occur." While this
�'��Y��r � �i � u,;� : �P
ta,
pp"
product is only beginning to become commercially IWO ...........
jl
a av
ailable it presents an opportunity for natural
gas buyers to drive methane reductions at the gas
T,
source, in addition to mitigating leaks in their own
II �U ����1�L
,pipeline networks. Less expensive than alternatives
°�� �,�. Z
woi 4" I An j
like biomethane ands ynthetic methane certified gas
77'7,nI:��k'
0
-term alternative for conventionally produced so
� �"Y 4 ' ��� � � its ,„0 �
is a near It
f", 1 1 llu
T/1/
gas. However, as is the case for other alternative ""i
�,� � W
fuels like biomethane and synthetic methane, the �. S
I!,L
f
benefits of using certified as can be undermined if it
7A,
10 ,P J3
4111
IR
is distributed via leaky infrastructure. fi
V
k1s,
41
A4 40
I
F , 1'4 1,.,: ' tti; '.:,,,,u
W,
JZ
M1
I Mpg
N,
7,11
'1A
4
VE
IN
AAR—
X
EXHIBIT 7:
California Renewable Natural Gas Technical Potential Supply Curve in 2050,Assuming All Biomass is Directed to
Renewable Natural Gas30
90
Conservative . i it l�
M 0
80
SNG its DAC
All
70
�h
{,' ,uuuuw.uuuuuuuuuuuuuuuiliililiiuuuuuuuuuuuuuwilii fin pii kne r�
Y All Biloilnethane
�spmwnssviausu�uwrnwiva
60col
q,
E 50
A
V 4h
4110
j uiiiuui i i i i i i i i iw wl lip mru
�tl '!mamuw�mrtuarmmrsa�n!QerunttoarucgRrtnmuuuarunu�rsAnrrtra�auamR�Mttoarucgs�uusanva�nart��rrtra�asa�ruwrui +�Yf: ,�
30
6 u�
sMMN� d�
V NXY
f
20
i
wwiwiwiooiou�o��iouuuuuuuuuuuuuuuuwouumd��� sa� Ali
Al
AN
10
1 YY
ipefi e a demand
iWX
,s wui s�wu�iu�siwt mm,nuw nw,rle�iuu�N�>,wu,��,�ms�,�uiwi wuu u��mw iu�iw¢wr san uwn�mw wv,�wu aim mr itiv�iww nu ,�oil wu'I wlw IF,IF iiw3 ww,Of mu;an nn wuc uaW;0 aiw uiip Iffil IN 50 PlIp�f l ,0e gwj';',^pi
uitt i R io` J i'er n,a i,Vct,,�n 2O"l 7 �M*�
01 O� 0.25 0.5 0.75 1.0 1.,,2'5 1.5 1 .75 2 0
,R G
siI I ( g ds
Source: E3
ter f Iai , released d el ciiriciy soy. rces while ire aii iir�g gas f. I s meansf;;;;;;;I. ilke ise, Ile JEfsey's Ineirgy as
in early 2020, found that ellectriifiica lion its Ipirefeirired irelliance oin flhe -i:'ew low carbon gas fu....uel olptiioiris, all of
over ireLa6niing gas fuels iri I uilldiings (because iiL is Ihiiclh �;. expensive.
ir(- Iknowin Lo I e very e en.siive. 1
Iboth lower cosh and irT'iore flexible, imeariiing that.
elleci:iriifiica Jon allows (heading via a irIuirnbeit of clean
,�. ... y . IG U I A I I. I � I I I , I I I I M I I I .. I I.I I 23
��STITV��
hn oirdeir to cIIairify L h e iroIIe of'M Leir ire a Live fueIIs, sLa[e IN Understand supply and deconflict different uses
FegLda'toirs shoWd cm isider the foIHowii ire g acl.,Jo iris* for alteirina till vefue III s......Fhe avaHaNhrty o-f a[teirina-flve
-i.u6 , espedMHy Ibioime-thaine, is IhigN1y himirted ait Id
Develop rigorous standards for carbon accounting Ihas coo irripeLiing uses in oLheir secLors. (-Jiveire L[1aL
aind iiiiirnpacts oin feed stock sources. Cuirirein-1-1y, the suppIly o-f a[teirina-tive fueIIs MH r io-t Ibe suffidein-t
theire aire himi-ted air-id ili incm isis'teint,s"ta ire dairds to t o iry uee-t the cuirrein-t ina--IuiraII gas use in IbuHdiit igs,
est,aUhish err III etheir Ikeioirrieffia ire e or oLheir 94 ire in ewa Ib II e the fu6Is aire hk6Iy IbeReir suiled for Ihaird to
iria-tuiraII gas Y) ac[ii eve s i"ts cairIboin r"edLIc"tion goMs. eIIec-tiri-fy sec"Loirs, ilr"IC1kjdiing iindus-tir-[i a II processes,
Coir-poira-te coimimirt ire eints vairy iir i their appiroac[i, a ir id for 6Iect.irid'ty geire eira"Lion t IbMa ire ce seasoinM
-- -,nisima[ches iin deir-nw id and Feinewa�Ne geineirahoin.
i in II ire ir a ece ire c IIa iirri fiFoim [.'. i)orT"fl ini oiF1 I ineirgy ia[ ir
Irt U Ip Ip II UH Ibe cairIboin InE:M_j'tiraII i"f il. P-IrOCUires RegLflIa'toirs sI�--im.Ad undeirs--taind the ciross sector
ts of'IR N G use 11in bufl�diings and eirisuire
lid III equ i va��eiri t,to j us-t 4, perce in't of irls to-tM vo Vrne h mI�.)ac
of gas saIIes, asserhing in Lheillir w6bslle that Ipirogirairi,-is aire consistent,w[Th eco ire oiriiy wide
t[i o in �p, ��a i�is.
"IbecaUse caIPtUires 25 dirnes imoire gire enhouse decairIboiniza
gas thaire i-t it eases, that MH offse"t our custoimer
cairboiri fooLpiri ire t.Iby 100 peirce ire O 1132 IN Evaluate alternative fuel tariff programs. Gas
LINk"Hes Ih av Iproposed vok..j ire t..airy IRI G' Ipirogiraims
Such cIIaiims, iin Ipair-ticOair those tha-t irc Ily on o-ff.se-t-ti ire g in which cu istoimeirs COL.fld OIP't ilr I tO PL.Jirchase
e ire-dissio ire s LhaL continue in the gas sysLeim wli[h Ib iioimeLhairie for their gas suppIly. Such pirogirairns
chi nil ed iteduc-tions eIIsewheire iit i the eco ire oirny, irnus"t WOLJl d ire seimINe voIlw i'tairy ireiriewaINe eIIec-tiricity
b c: Ih6Id"to irigOIFOLIS sl.,a ire dairk s tha"t suppoirt II in Iprograims offered Iby 6IectiriC U"Uhties around t[--ie
e ir ieirgy and eimissions goaIIs. ...... lhese c11aiiais MHI WI I country. ...... he Minnesota UC ire ceiriLlly itejecLed a
shoirt.o--f carboire ire&,.j 1-.iraHt..y goMs i-f su..jIbst.a ire t..iaII direc-t IproposM firoirTi Cein-terpoill ire--t.Gas for ireire ewaUIe
einiissio ire s o"f CO 2 ire irriai ire, and irf offse"t aCCOL]ire ti ire g iriat.uiraII gas Ipirogirair n, ire o-ti ire g tha-t theire was
does no guairainLee LhaL inegaUve eirTilissions aire hsuffideinL veirfficatJoin to einsuire [hat,the gas woUId
additio ina��"to those flhat CO UM have occu irired fl h iro ug[i �be t.irWy ireiriewa�N e.3 4
o-t,Ih e it im e a iri s.,
Cost is aII a coire cue iu i wfth IIRNG Ipirogiraims, II ire
.......... d u. --IrE:l Elin't iak o"f t[--iis ca-se irit Ceerpoill in't'.es"I[Jr-nate d RNG i.woA d co t s-
j it t,In e it irTi o irE?, c a it�b o in firee
bliorrie-tha ire e and syn-the-ti c ime-tha ire eire ly oire CUs"Loirneirs neairlly$4.00 Ipeir theirim,35 coimpa ire
d
ehinillinah ire g Ieaks. )i ire d,eimissio ire s of irneffia ire e wfth ® 1 Ipeir [heirim c[iairged Loday for fossH gas,
3)
Gas Lft.ih'tlies aire kke��y
11 in the uJS oH aind gas su p p 11 y ch ai i n pir oduce a i inCI4.Jsive c'"f dehveiry c[iairges
coirnpairaINe wairimill ire g effect to !.[-ie coimbustion "to intiroduce more Ipirogir"aims piroposiir ig a[teiriria'flve
o
��f.33 F is f L[ie gas it.se risk imay Ibe C011"QPOUnded fueIIs, w id it MHI Ibe iirnpeiraLive for uJCs to esLabhsh
Irf in w mairke-ts--for Ibioimet[iaine dirive cox painded C k:.)air ciriteiria--for 1',hese IpirogirairT'is, iirich..jdiir'lg cos"t
pirodUc-tioire of1bbime-thaine feedstocks, 'fbir the and einviroinime ire-LM accou ire-ti ire g. [t MHI aIIso Ibe
cox p hi dL Ipuirpose of nil effiaine Iproduchoin. Oeair cirfticaII to einsuire any such Ipirogiraims do not himiL
stairidairds shouk-j Ipireverit, Ibioirrie-thaine firoim flhese Ipirogiress oin 6Iecl..iri-flcal.Join,Which imu[tli pIIe Stlidies
inew feedstocks to chirn cairIboiri reduction ciredil.,. [-iav(::�s[iowiri imus-1.Ibe a imajor Ipart o"fa SUccesSfLfl
II n oirdeir Lo suppoirL ah.,eir ire aLive kleIIs, LJCs and decaitoinizaLion Ipaffiway.
(,--u..j s"I o im e it s im u s 1:fe e II c o in fi d e in t"I Ih a 1'.t In e s e fu e II s
ac-h iMHy ire du c e cairboire eimissio ire s.
,(Moli
A R II G V_J i A 10 1 C j 10 N S 0 1 U i i [D i'\1 G 3 0\i i 'A 110 IIN 1 221.
TIT
Establish technicalr hydrogenr
Ilb II e urfi d ii n g. II,,,,e it i e Ire k.::,:.? Ir�y it g ir..,i k Neirided ii in t flr i Il,
u Ip Ip II y f Ip ii Ip II a ire , (-_-oL..,i]d reduce fl c iF b ire
o�u��u ��lm�mumuio,�iuu�lllllllllll�»1�1�1�1�1��11111111111 � i,
uirk'�insfty �gas, r� a Iuir� � Iy � � �iri ll
ii i �u ire a e iri .,�ire ,,,,,,,u� II a in ces is
y I�Ip Ip Ip
uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu
FBI I
cco im rrri to �iydirogeiri.
1�
iruou u.u 'us es"Hirnte-ffie iauirnuim INind
it -tii o -Ire t u it iFe ire t i ire fira tir u i:u iFe coUd accept ,
'irey ri ire Piroit .2 r it eirl[ I yv li (20BE
�%
Ip it e ire is Iby VOI4.JlMe iis e u ii v II ire t to just I p it e iri t
o
3
Iby iri e it y iru iru�.}w II ecNrd c II v II u_u 'fl ir.,.i
woUId Ibe ineeded oiri a systeim I y sysLeim Ibasis �
"to deteirimirie t Ire e IocaIHy Ip Ip it e p r,ii 'i: irn i u uw,u irn R
%I If
I..'..'.fleind ratios above ffi e II v I Wd t q u ii ite I% f
t..ipgirrades to i ire fr s b r U c Lu ir,e aind e ir..,i u,..i s e e u,...i a Ire irri...,u iri L,
irid -ffie costs o f sucIr upgirades woAdineed1 1
to Ibe coir-isideredc irefUI II y, ir..i t.t i in"fl ir..1 .Ur-le
, t
pirac[JcaIk Lies of e ire;�u irii ire a II II u s[ ire e ir,,,,,,,owined
o
u ii p i iri'i.is Ip it p irll u p it i d (,.)ire iincireasiingr`
IhydiFogein Neindiirig.
10,
Establish procurement requirements
ur ii ur III ii it III ur°�ii°ii it ii un
0
d e II ii ire , r u�u II at it- Ir...i ve iri Ip Ip lr`"LL]irl a'ty tO s t.t rl e
Ibair--for 1Jrie type a f gas Ur i a i~eir rteirs eirieiFgy systeirns
ii iri Uh c ii it sLaLes. II.y deimaindiing gas [[i L is Ip iro u c
will- Ih a II it r --Ire ir"u e ii in't iri s ity(iry-ie--Uhaine eirY l i s ii ir"n
divided I y gas p ire Uce ), et^"te it irri Uh a in
irnoinftoiriirig LecNrioIIogy, aind IbesL piracLices Lo Nre
airid it e Ip ii it Ieaks, ire g uM,u II is its c ire Ipus[i iid s c II
c Ir minges ii iri Itie ups-tire aim ii II air id gas ii iri d u .,IF ......II......Ih ii
offeirs a s ii g ire ffi ire[oppoirLuirifty fo it L[l e sLaLe t
ire e iru t ii v ii z e i. it actioins ire i; iN y Iby.i"Ih u..j i".i II ii fl e
wii-flh ii ire i-ts Iboirdeirs, Ibu-t ako fir iai gas U II ii e irs
`I
r ay Ire seveiraIl s[a Le ay.
f
II II �'V�.0 IL 1f... Ire"��° � � IL 1f...II�II°�� III 0 II III r.J II II II)II IN������ II�II ������ II��II'��.....,��II��II II�� 1f...10 II�� II � p�!
'�ST1TV��
noon........
P1...................AN FOR
HHUMMUHM HUHHHUM= HUHHHUM=
HHUMMMM AWANIMM AWANWHIM
W 0 IR 11< IMMMM 0 IR C 11111111111111111111111110 111 IIIVIIIInnnnnnnnnn.. III
As iin o-flheir sec-tors o--f-ffie ecor-ioirny,-ffie trainsirtior I woirlkeirs to re"Hire a't'11 ie iris gIht Uirlie, and ire-traiiire Ju ire oir
"40
to a cairboin fir buH�dliings sector MI boUh cireate woirlkeirs. C A a in IIincLsive I Colnoll"nICS suggest
in eiryipI gay imeirit (eg., iins,-IMHing in deve bpiir ig a"Lira insirtion rug rid for gas woirlkeir re"U....-.1ir i"Hoin
eq jipimeir)t, per-fo rim irig e-f-ficiency L..jpgirades,eingilineeiring in tira insition assis"tair"ice, r ioting flha-t eve in a sIhiri ire kii ire g
aind irna in U fa cLuiri in g ir-iew[(-cNnicaIl soLLiloiris,expanding gas sysLeirn MH ireqUire a skHIed IWboir foirce to
eIIec-tiricirty ge ire eira"Hor i)and eveir'i'tuaIIy reqLliire a iron aire aged imain'tailin sa--fcaty and irepa i IrS.41
tirairisi"tiloin away firoirTi eia-iIpbyirnein-t focused oin diirniinis[fling
.......... .-)f�eaUidng oiI are p��aininiiir g
R.-)ssHI fu6� use(e.g.,eir igineeiring and ir isl[aI11'ing gas in N e w r ig��aind, provideirs I
diis"Liri Ire utJoire in"fir astirUCtUre, iiinst.aHliing gas appHair ices, for II carboir i 'fUklire Iby deve bp ii ire g -11heir a Ire Hit.y
deHveiri ire g o[II in piropaine to Ire oirfles air id bUSilinesses). to offeir t[ueiir cus"toirTiers ir iew F,)rod ucts and seirvices.
I�e OHI II..........leaL IIir is Hi LuLe of'IR Ire ode IIsIIaindire birainded
.......... teirs
State L.THH'ty ireguIlatoirs [iave seveiraIl ireasoins"to einsuire i-tse[f in 2019 to Ibecoime 11he [.".."..".'.'neirgy Mair�ke
flrioirougIh Ipllf t1hese trainsitioin s.......irains�'tioins MI Associia"Lion o--f lRIhode II i d, and Irian adopted
di ire ct]y affect U-ie wor rya irces of itegUaLed WJHI[Jes,aind industry wide coim into iLirrienLs to eHirnii ire aLe g ire e Ire ouse
IpIIainiriiirig MI [i ii-yipirove-ffie Hives o-f affec-ted wor-Reirs gas eimissioins. [t Ir...i a Ipair-tin eired wi-t[i t ie sta-te's Office
..........in e irk y and Che corTir-nuinirtiles iir i Wr-iic[i flhey Hve.Add i-tioir-ia II Ily, 0-f II:::....... lResOL]irces and [.'.)epairtimeint o"f aboir and
success rug I dIra byrT-ieinL of Ire IpuirriIra imair Ike Ls irequ i.I ire s Failinil ire g to deve bp Uhe skHIs and Ibusir iess irriod6Is to
flh a-t wo ilk eirs Ire e flh IkinoW errs ge,skHIs, and abil Hirties Iparticipa-te iin Ihea-t Ipu..jirnp d Ip byrn in.L.42
(KS As)--to ir ripirove t1he ef'-ficiency oi"buiIdiings, IpirqpeirIIy
sii Irieat Ipuimp rq[JIaceimeii-iLs,air id einsuire INgIh quaHLy IN Develop the new heat pump workforce.Second,as
iiris-taIIa-tioin and irnain'teinaince.A skHIed wo ilk.rya irce flrie Iheat Ipuimp ran a ilk et,grows, '11heire imUSt,Ibe a
f
eIrISUires flr'ial. bilds aire aCCUira'te and not in-Ha-fed due t.o sufficileirit and w61 trained woilk--rya irce ready to s6H
u r iceirlainty or IIacIk of IkinoWedge. and li insLaII t1hese devices, Given expected ireU ire iris eirA
of Che cuirirein-1. ..........IVAC woirk"fb1r(_1E?, over 100,000 ir1(.:_'1W
Plana just transition for current gas employees. ..........IVAC coin'trac"tors and workers MI lbe ineeded Iby
CaHfbirinia abine [--ias 10,000 woir Ike its eiaip Faye d in Uhe 2022.43 Ns creates a strong in to train inew
gas dis-t.irli b u"Hoin se ct or.39 )uiring a"Lira irlsi'tiioin away workeirs or upsIk[11 exit s-fli n g woi*eirs to-NI Sri gap, as
firoirn 1.1ne cuirirein't,gas dils"tri Ikea UtJOIrl sys-teim,t[ieire w[HH w61 as an opportunity"to c ire ate w61 paying,caireeir
Ibe IbeLLeir and worse Ipaffiways for woirlkeirs, irnaIkiing LiracIk Ibca Jobs.Supporting contractors to speciaHize
i-t.,cir-uciaII to Ihave oper u pIIa ire iniing cor uveirsa'floins 1.1-ia"t and Ibecoirne§kHIed a-t eIIecl.,irifica-floin un Ir ieat.Ipuimp
i r icI4.jde voices -firoirn Vhe II Idaor coiriiirTIL,14 ii"ty-firoim flIn Ipir(:)jects is ciruciM -for success,as faulty iiins-taIIa--Uoins
sLairt. IIginoiriing workfoirce issu jes and U ie vo licescar MI sbw 6IeckfficaLioin Ipirog ire ss.
or a n ii III ir woUd IIead to Iles itobus"t"Lira insition
pIIaininiing and eingendeir serious opposirtion to State woi*fbirce d eve bpimeint.offices§ii u II Ibegilin'to
builUll iri g decairboinizaLbire effoirLs. Ur-�Jink about,[iralin'ling Ip it it a im inow,iir icLdiing iin Ira iigIr-)
scIhoo11s,"tirade sc[ioo ,appireintice§h i p rpirogiraims,
Mflh Ipiroac-tive IpIIair i in ii r ig,"Uneire is flirTie"to eir isuir'e a and coimirTILJIr fl'ty coIIeges. in cireate ain
just Lira ir isilLion for current gas workeirs.As noted in a qr.)poirLuiniLy to [-16Ip cIbse ffie iincoir'ne gap, Iby c ire aLir ig
recein't irepor-t.-firorn Giris dwoirlks aIre m.i-t flrie gas tira insi"Hoin good paying NgIhit a d Dobs. II..........lowever,'ffiese tiraiiniing
in CaIIi-rya irinia,'Uheire is a ineed to"Ike qp [)igNly skHIed Ipirogiraims ir-rius-t Ibe caire f'UIy caHbira-ted wirfln imairlke-t
peqpIIe woirIkli ire g uirAH [1he eind, linceii-iL Uhe seiniloir deirTiand to ensuire U.ie irflairket,iis ino[flooded wi[In
tra ll in ed iindMdUMs wi"UhOL.StjoIds"to irecelive flheim.
Mot,,
0
i G U i A 1(D i 'Y`S 0 1 VJ 110I II i [:)i IN C A II \i i 11 i C)\J 1 2 6
nnnnnnn
Z E c u s..............roMER
.M HHU A MARKE..............r OFFER NGS
..........
II ire imainy pait o-f`flhe (-.-ou ire"I"iry, imairke-ts ef:"Hicie ire-t, away-f'imim direc"t'IU6I use. Men -ffie New Yoi* I"u Ib II i c
6IecLiric products IIHke IheaL IpuimIces in Iheat Ipuimp Service Coimimissioire a ire inour iced ain h hove saim einL of'
wa-ter Ihea-U....,,..,irs aire ino"I w6H deve Io Ire ed, aind CUS"t0imeirs $454 mHHHoin --for Ihea-L Ireu ins ps firoim 2020................20251 [t
and con-tirac-tors aIIHke -face bairrieirs in iins--LMHing fl�iese II IIfl[--fls -fu ire diir-ig (air-id conrespo ire di ire g tairge,ts)
prodUCLS. Outside of Uh e� SOL.WheasL, awairemess of to (-acIh of Uhe state's i hove sL(,)ir owned uLflfties L itUIn
tfiese piroduc-ts ii s geineir-MHy II ow, con't',irac"loirs imay cus"toimeir, Ire ire gira IMS.45
Ipeirceive irisIks o--f 11 ir u-Liroduchng in -Le&inoIIogiies
N
wilithout c��eair d(:::%imaind sigina��s firoim custor"neirs, Fo ffec[iliv6 y dew.:1flo p imairlkeLs f'oiF 6 echFificatioir i
Woi Ike irs imay IIacIk t.iraiiniir ig or i Che ii.Ifii IreirodUC"IS, SOII U"tio iris, u-tHH--ty ire gUa-toirs airound L[ie COUiri-tiry MH
a ir id suppIIy&aiins imay r io-L I w6H d eve IoIF,)ed. ......o ire eed to eir icouirage iru e Ipirogirair-ris and elFISLJire 't[iey
addiress LN Ise air id offieir Ibainriers, ir u e Ipirogirair"Tis aiFe effecliv6 esigned to Neve Uheiiir g oa I�s.
aiimed a-t deve Io Ire i ire g '[fiese irT'iair Ike"ts, inc ire asi ire g S eve iraII aIre pit-oac[--ies to do so aire desc iris Ida ed IbeIIow-
awa
ire iness, airid inn pirovhng cus"Wimeir air id con'tirac"Loir
expeirieirice wli tfi ire w Lec[iinoIIogies in Ih IIp spur Target programs and spending equitably to reach
Ipirog ire ss towaird eIIectfiiflc,a'fli oin. all customeirs.......II......o eire SUire equitaINe dis"t.iFflbLItion o--f
be ire e"firts, regU la'toirs cairn expH6,Uy t air ge"t Iprograims"to
UWfty and stale ruin IpirogirairT'is cain encourage disadvainLaged coir-n ir-n u ir'i i Llies, as CMffoirinia Ihas doine
cu..js'toir'neirs to eIIec-tirify Cheir �oirir-ies, Ikeol-t--i Iby e6..jcaIAi ire g wi-flh eIIec-tiril'flca'floire Ipik)-t:s iin I-fie Sain Joaquin II II
cus"Loimeirs aIbOU't OIre poir"kffli"UED`s and Iby o-f-feri ire g or es-ta Ike H§h cairve� ou"ts and s"La ire dairds to ensuire
incentives UhaL irnake eIIechrffiicallioire imoire cost L[ia[sig ire ificaM,funding irea&es II in it1lodeiraLe
e
I i eir-ffieir case, pairt.idpa"Hoin ffec-tive and easII y accessHNe. 1"RegL.da"toirs [iave airl iricorne CUS"t0imeirs. Ir
iroIIe"to eInSUire suc[i prograirTis aire weIH a r id i ire IPLYL firoim cus-toimeirs and coimimu ire i'ty Ibased
designed Lo imeeL CUsLoimeir ineeds, heIIp irnairiage organizations MH� sLiFer igffieiri progiraim desligir i I
te��y adap-ting i't"to �oc,M fl ie eIIec-tiricli'ty sys"teim, imaIke Ike isuse of ra-tepayeir appropiria
Winds, ensure flha-t-[Jl�e [De ire e�--Fts o--f inew tec_Ih ire oIIogies
aire distirHbuLed equftaINy airTiong cusLoimeirs, and Support market transformation with upstream
decairIbo ire ize Che bL.JiMi ire g s"tock qu licIkIIy e ire ougIh to in irnilidstiream iiiinceintilves aindtiraiiiiiiniiiiing. IIiri order
imee"t s"ta"te c Hirna--Le rx-flicies. Wrieire iiTiair Ike l..s aire ire o"L -fbiF buHdi ire g 6Iec'tiri'flca'floiri to �irog ire ss a-t.speed,
ir'naLuire, ire g0a[oirs MH aII o ire eed to (,..or isideiF Ihow niai*eL urn ins f(DiFirna[Join is r iec.essairy in states wilith
ul,AiHi-ty pirograims safe is ir-nai Ike L deve opirnein"t r IIi--[-He exis"I.Aing r'nai*e--L ft.)ir iea--t puimp solu.-tions.
�b
.......... -ice firor n Ve iF irT uoir rt air id INew YoirIk ia s sI�owin iroad��y and �how Uriese tecNn6�ogies aire tirea"Led i in ...........xpeineir
exisHing cod(:.%s and sLa indairds. UhaL imidsLirearn ir-icein Lives......................Lair Le to M ioIIesaIIe
dis"tirflbu"Loirs oir,con'tirac"t'.oirs, ital-Iieir-ffiain li ire dividuM
Iin s eve ire s-ta-Les, poHicy and ire gLda'toiry ac"tions cus"Lo inn eirs......................Ih v Ibeen SUccessfU in es-La Ike Hs[-iing
hzwe started to ire IIy on uUH[Jes.....................Iboffi MH 6Iechric iriascein[Vieal.Ireurrip mairke[s,Mien coirnUiried wW i
and coimbi ire ed 6ec-tiric air A gas......................as -Uhe IPiriimairy su Ire pIly cMiin e ire gageirT--ieiriI..II
iir-n III IIeimeiate it-s o--f imairIkea tiFa ire s-forima-floir u f'o it [iea--t
e ieirgy ire irk inewa I N e I r puimps. Veirimoin['s
requires u"HH'fies"to acqu.Aire -fossflI .rug II savi ire gs flhirou jgIh
eneirgy"Lira insi'loirima"tilloire lipirojec-ts Chi a-L swi--Lc[i cus"toimeirs
.4
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II G U i A 10 1 S) I i VJ i i(DII 0 1 II 3(j i i II i IIN G C A 1 II 0\i II 7A I 10 IIN 1 2 7
TIT
Cahifoir ire ia's irieWy Ipirqposed ..........I rpirogirairfl wliIH iri cIIudiing ire Ike II:::::::" I ecbrlic CoopeiraUve and Oircas
owe it a ire ight, aiFe II ire usiir Ike a s i irn H air �p�pir'oac ah, d i iFe c-fling air i iiriiil.,J ta aII1 0 1$ 2 ig or i Ida i 11 II fi in a in c i iri g
rniHhoir budg cat--towairk iri-i li dst:ire airfl li ncein'tives air I d to h6I Ip cus-toirneiFs 6IectiFli fy,50 fli,iiFough irnod6Is
educaLioire and [irali r ding r)irogirair-ris 6ll ffe�c Live irT--iairkeL i ire cI4.jdiing )ay As You Save-,wheiFe L[-ie uHhLy Ipays
tiFa ire s-foiriFna"tioire IpirogiFaia--is aIIso i ire coiqpoiFa1-.e vairied the iins-taIHIeir---for ef-fli bie ire cy up-girades and theire IpIIaces
fuir"idiing sou ire,es beyond ra-tepayeir funded eire eirgy a--fixed chairge on the custoimeir's IbHHI t1hirough a tairii"'f
efficiency. F,,,,,,
or exairnIpIIgip, Cahfoirinia's ..........I Ip ir-o g it a ini i s
ft..j it ided.fir orn cap, and tiFade Ipiroceeds. Maine's [-1ea-t i li s ire co ire ime ire da"UM I [1111CIk,.ides addi iri g oin lb li II II fl iri a iri c i.�iri g
puimp li ncer itives use"fund li n g fiForTi scave iFaII sou rye s, options a't u"Iflities,t[ia-t don't cuirreir i-t]y have theim,air id
LO
li r i cIIudiing ...........I A s ur)IpoirL II ow i r icoiq"ie cusLoirT"ieirs, expar idli ng exisU ire g efficli ency fina ire cli ng offe iri ire
gs
as to i nch..i de 6Iec--Iirt fica-ti o in.Oin bHH fl inainci ing c a n aIIso w6H� as-the 60 �New capaci-ty ir-nairke.t.
Support II ow i r icoirrie cus"tor-neirs or otheire who iris ire o-t
IN Design effective customer-facing programs. have Uhe ciredft ire ecessairy for baink Ioa ire
s.
We desigined CUSLOimeir IpiFogiFaims and incentives
can eire COUiFage 6Iectirifica'tioir i ie Saciraimen'to IN Bundle efficiency and electrification upgrades.
M u it i lic li IpaII Utih[y I'')lIsLiricL(SMUI..'..)) Ihas th e irnost C o iris Ib i it liir-ig buHUiing efficiency upgiFades wiL[i
--
siginifican't'.i in ce in't lives"today, offt.,Niring over$10,000 6�ec-tiriflica'tioiri ii iris piroves custoiry ieir coirnfbirt..a ire d
4 8 ��..........�"f .
for wh oIIe Ihoirne 6Iectir liflicatioir i. Maine, ire duces winteir iimpac'ts oire 6Iec-tirici-ty der naind....... his
and [:�.�:.:.Tficie ire cy Veirimoint., aIIso Ihave ir-oIbusL i ire ceire hve wi ire teir Ipeak iteduchoire is esIpeciaIHy vaLaUIe iin coII
IpirogiFairTis--for Ihea"t.IpL11,11pS.49 Mainy IpiFogira ire s chirT'iates,which imay exIpe iri eirice sli g ir"i lificain't.inc ire ascis
tairgel.,Lhe mos-t ecoinoimicaIHIy attiFac'tive cus"toimeiF i r i 6Iecl.,iFlicli'ty de ire air id duning wi.ire teiF Fesu[tli ing fimim
segimeMs,such as ofll, Ipiropaine,and 6�ecLik a 6�ec Liric heating.
ire sis"t.a ire ce cus'in oirr'ieirs.
COUph ire g 6Iec"tirifica--Uoire wi-th efflclien cy can ensuire
II it i aIH cases, custoin-ieir facing education aind LhaL Iheal Ipuimps air-e Ip ire peirIly sized and co iri figuired,
iniair Ike ting have been iir q[..�.)oirta ire't eire aIII eirs of Saving custoirTieirs imoney ire iredUcling cairbc:)ire
successfO I iea't IpL]imp dqp yimeir il.:....... hese iincLide im iss li o iris and iimIpacl..,s oin Ipeak d(:::::%iMaind. eg0a.toirs
cusLoimeir fir ie ind y videos and IpiroducL oveirviews shoOd evaLaLe Lhe'IiTipoirLaince of this COU phing
on 1t"ie i ire telr"InE?"[, diiFec"toiJes of q..jahfied coir--i-tirac'toiFs, fbiF flheiiF owiri states. IMos-t II ii Ike Ily i1:MHI Ibe iimpeira'tive
and o"their iresOLJM E,�S hnce ire'tives ShOLflId coo ire sideir the iir-i cold chimates wi-th oIIdeir IbUHdiir'ig s"Lock, IbUt IIess
VI I cost,of going aIHl 6IecLiric, i ire cLdi iri g Uhe costs of iri ecessair-y I.�in irnHIdeir ch iri ia[es or those wheire the
any po'tein,t.liaII Ipa ire eII uIpgiFades.MthOLJI.,11 iri ceirl-fli ves.for cox is"I'Jing bUlHIdiing stock is ireh--IiveIly efflidien t aII eady.
pa iri 6I uIpgiFades, cus-t.oirfleiFs ir�iay s-tHH--face fli iri airi c lia II WheiFe UIpg ire des StOIP ShOlFt Of fUHIy 6Iecl..iFli fyli ire
g a
Ida airiFlieir s to 6IecLiFiflicaLli oir i. IbuiUi iri g, UheiFe is a s ligir i li ficainL oppoirLuir iiLy foir"heaL
Ipu..jirnIp iF(....-,..Nady�1 IpiFogiFair-Tis,whc[ii Ih iris c IkeuiNings
Enable on-bill financing for electrification. On bHHI and LJIpgirade 6Iec'tir'li c i iri"fire S"I.IrL,uC"[,L]Ir'('I"to p ire paire'foir
fli ire aincli n g ire k-_�it s to a IIoairi imade Lo a uUHLy cusLoiMeir, 6Iecbr-iflica Lli oiri at IIateir-dat.e.
the Ipiroceeds of which wouIId Ipay fbir-eiri eirgy
e f
i"iclien cy i iri IpiFoveimeints. I'RegLdaiF c iri i:lh II IIoain
payirfler As aire coIHecLed Iby the LAHRY oin the ul li hty IbHHI
the IIoairi ii irepalid. SeveirM eIIec-tirk_coo qpeim"tives,
,(Moil
J J 2
TIT
110 Expand demand response(DR) programs for 110 Support pilot projects that can scale quickly. II ire
a to ��ave widespiFead,SUccess"fU e��ec--�.-.iF�i--fica"t.ic)ir"I III III electirilic bui ldiiings. [.3LJiNi ings ia-L F6ly on 6Iec-tir ic oiFdeir
sIpace and wa-teir Ihea-fli ire g Ili e gire a-teir Ipo"Leir i'UM IpiFogiFaims, u iH'Lies MHI ire eed to tes"I ire env imod6Is air ud
to Ire irovide girid seirvi Abe s, and to ire Luirire vMue to cor iceIpLs Uhiro[.jgIh deirnoins Lira Lion aind IpHbL r:)iFoiec[s.
.......... ..... r einl,.a'floin
cus'toia"�eirs �by ir-noine-I.Jzing tfiese sewlices. 0 IF 1UCs and u-tHi-fles bo-Ch cain Mbw--for ex�peinir
airs e t exaimp��e, Green Mouin-tair lower Pirovides a Whili��e Mso einsuiriling pibts su�p�poirt,c�riainge a scMe.
simairL co ire bi6I device to any Iheat, Ipuimp cusLoimeir o do so, Ipflb[s sIli d Ibe desigined ill Ili exIpHcft
9� 51 is on scaHing up inew imod6Is,
Who eiriim�Hs iin i"Is eCoin-tiFo�F �pirogiFaim. coir"inec"tions"to dedislior
id IIIIail-ty as to Who wflHI make scaHi r ig decisions or I
Soinoima Oeair-i )oweir's GiridSavvy �piFogiFairn a r
a r i d P�) Water Saveir pire gire ir-ri einco[.j ire ge w�h a L Ui irT--i e i in e.
&
CUs"to irneits"to eire iroIH Ihea-t Ipuirrip wal-.eir �ea'Leirs ii in
deimand ires�poinsell
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PO .................... C ES W ..............FH DECARBON ZA..........F 0 '
Mainy eineirgy effic[ien(,.Y Pohi cies and stairidairds weire 110 Reform cost-effectiveness criteria and evaluate
designed is a Lilime whein fueII swiLc[i ii ing was in o[ IIIow they suppoirt 1pol'11cy goals such IIIuili III diiiiing
Cos-t e-f-fectlive or eiriviiror iiriiein-taIHy IbeineficiM choice. decarboinilizatilloin. (Jtihties air id coirniriiissli oinS Use
JIpdal-.Jing flnese Feg[..fla-floins [is ciruc iiM--to einst iiring cost tes,ts"to d e'te irirr'i i ir"i eif''the beinefli-ts o.-f eineirgy
LhaL LJLHHLies Ihave [he coinrecL incentives to SL]ppoirL efficiency Ipir-ogirairns and iron easuires exceed Lh car ilir
eIIecl-,irifica--Hoir--i wheire it SLIppoir"Is po hi cy goaIIs or costs. SucI�i tes"Is aire li qportain"I.,1.,o einsuire ra"tqpayeir
offeirs o--[Jheir beine-fil"[s, in addi'tiloin "to t iradii l.JoinM eneirgy -funds aire sIpeint.Ipiruder i--Hy, bu-t irTiay Ibe II ii ire ited i1ir I
effic.iiency. Il n oiFdeir to einsuire that effilc il ency Ipohcies do ways LhaL e fk_�c[Jv6 y piro[iiibft fueIl switching, even
I.,sup�poirts chirrial..e air�d hea[th goa��s....... �hese
in ot cirea"te bain rieirs t o Ibeir i e-flciaII 6 ectiFi fi ca"Hoir I% uJcs w Ih e in i
s I mOId coinsideiF flr i e foII IIow i in gm tes"Ls imay ei-t[ieir fa HI to fUHy iir icoiqpoiFa-te Ibeir le-fl-t s and
costs aciFoss N6Is.....................foir insLaince,cm..jinliing cusLoir'r ieir
Update energy efficiency resource standards savings firoirn gas or inoin ire gOIa-ted fug II Hi ke oH aind
(III III RS)to Ilbe based ointotaIII eiineiirgy acrossfue III s piropaine......................or uindeirvaLe inoineineirgy beinefil-ts to
oiir gireein Ilan ouse gas eirnilissioins.......oday's efficiency einviiroinimeinL and IheaIfth.
tairge"Is typlicMHy irequ iiFe u"Lihi"Hes"to seIpaira[6� y FedUce
custoimeiF 6Iec'tiricity cor isu ran p-hoin oin tt ne Ibasis o--f A inew Na-tioinM Staindaird If itac-tilce IMainuM cu hire ir it]y
WO Ljde de6qmeir it ail iron L s o pi mviide qp Led da Wn and gaS Use cairn Lhe basils of Lheirims or 1 3 Z). in it v � pi
Often, irf a LTflH11'.Y Ipirogirairn Ih6Ips a cu..js'toir'neiF swi'tch guidaincue oin cos-t beine-fil-t airiMysis--for a irainge o--f
firoim a gas aIpphaince or o-their II live fi j6I to ain dis-tirflbu tted eineirgy iresouirces, air-id r nay seirve as
6Iechric MLeirir iaLive, Lheire iis hi nifted or no qppoirLuiniLy a usefUI guide to these ire fbirims.5:) lRegUIaLoir-s and
-f(.)ir"I.he L]"UH11.,Y tO COURI.,saviings towaird theiir effidleincy Ipohcyima Ike its s III OUN Mso corns ideir how the coincept
ta irg e-ts. ...... Ihe taiFget de-flini'fl oir i and accouirl-tiling cairn o--f cost effectiveir-iess is apIphed"to decilsiloins,tha-t
III e updaLed wN.1 i eftheir LotaII eir ieirgy sav i.ings fire it a I.impad.,Ipohcy goaIIs. II n soime cases, it imay Ibe
f(D S S i II "N II b-a s e II i in e--to a in e II e ct ir i c a II is ir,ir"i a 1.i ve, o it t(")-taII o it t lr'WhHe"to i iron IpIIe iron eint Ipirogir-a iron s tha"t SLIIpIpoirt
gire einhouse gas savings--for the sairrie swi-tch. IpoHcy goak eve�in i-f they do ir--io-t sa"Lis"fy t iron ditioiriaII
cos L effe Lily eness tests.
..........or exa iron IpIIe,"the I w Yoirk [.Depairt ran eiri-t.Gf )L IbII iic
Seirvice[i as uIpda-ted i-ts tedhinicM Tresouirce irnainuaII IN Incorporate a social cost of carbon in cost tests.
with d(:..:1Aaii k:..:)d guidar ice Lo aCCC.)L]inL k')ir MaII eineiFgy A spe('Ji fic exair'npIIe('.')f van IILlilr ig noneineiFgy IIIeir leh[s
savuir igs when swi-tchir ig fimirT--i fbssi .0 [--lea-fling to caime ire ire the aiFado i§ttuire in 2019,11
hea"t PLI,MpS.53Sa airs imeintoIII uinicii IpaII ULih-ty )is-ti1c--[ ire q u i ir ii ir ig the JC to take fl[ne sociaII cost of'cairb cup in
( III JI..)),ain 6Iecuric orfly LI L11 HLY,Ihas shilfted its e�fhcieincry inLo aCCOL11r11 M 1ENn assessing cost e�ffecLliveiness of
ime"liks to im ern suire"avoided cairboin)) it a t h e it t h a in IkW h e II e c t ir i--f i c a t i o r i aind ffii c:ii n c Ipir-og iron ims....... Ihis chainge
saved,aIHowiing--for coin"Hinued iiinves"Lien ein't iin Ibu ii IIdiirig imoire -i:bIHy vaIIues the eimilssions ireductJoir-is of such
.54[ -iese sLairidairds tirainsliLlioiri
[t 6Iechrffica[Join vein as Ipirogiraims aind einaINes AhL ii es Lo set inceinUves it
"to to'taII eirieiFgy or eiron issions,il..imay Ipirove vakANe o-theiF sIpeindiir ig a-t II eve IIs coirnimenst,.i ran"te wil'th the
"to rT"iaiin'taiin 6Iectirici'ty efficileincy sub goah t Ibeine-fil-ts flr iey o-f-1--biF.AIpIpIlyiiirlg such a vaLe MHI ire quiire
einsuiFe ukfties coo inLilinue to IpuiFsue effective cMcOaLion of[he cairboin eimissions of[ieaL I i Ip>
iry n a u irc IIike weal.-IheiFizat.ioin. aind otheir-6Iec-tiric eq..JIp iron eint,which shouH accm.jin.t
fo it t h e coo in t i r wed Ipirog ire ss hn reducing eir n iissioins
firoirn 6Iedirlicily geineir,ahoin.
Moll
II II
G J Ii A 1(D i n i IL i(D i�J, II 0 1 i 3 U i i i IIN G CA 1 Il 0\i i Z A 11 10'�J 1 3 0
A
IN Account for infrastructure costs that can be Iiii-d"Hia"te t I e Ian efl d e r Ipirocess to expk)ire Whe..Uheir
a ided with all electiric 1buildiiings.AinoL[leir voill III III III III conservation d6H&Fs sIhoWd Ibex avaflWNk e fOIr fU6�
qppoirl,.0 jini'ty"to re-foirim co tes"ts is"to c II e a iI y accou i in I. swil.c Ian ing p ire girairris and airriended irt.Jes arep in('Dw
f or aver59 ided in-fir tirt as- ic-h ire cos-ts o--f MH� 6�ec-t iric ire being conside red in piro posed �egiis��a-tiioin
coinshaicUoin oir, in soiFn(- cases, Febrofft projects.
......... 208 egi sItt.i o in aLfUh oit ized u l.JH-t iies
...........or ins"t.'aince, i--f a u-tiHr1,y(-)free a inew co �in MassaC[IL.Jse"Lts, 1 �
6Iect,iri-flca'tioin p ire giraim, i'ts cost tes"t,s[ioWd li iricIWe to i ir icl ude 6Iec-tirirfli ca'tioir i iin ef-ficli ency Ir)irogiraims
Ian avoided cost of gas disLiri III ulion imains,services, UhaL ire duce gire e Ian OUsee gas eire dissions,60 even if
and irne-teits tf ia-t MHI inol-.be ineeded iin ain aII I e II e c t it i Chey inc ire ase 6Iec-tikity coir"isL.jirnp1Join. II in 2019, t[le
"Uhiree �piroing test,"--to c��airi-fy
inew pi it
Ca II i rep IF in ii a L JC a[te ir(�,,,d irts
Ihow N6I i Lc N rn imeasuires cain deirrionsLiraLei cost
Sil in(.-,e a s i.giri ii"fican"I Ipoir"tJoin o"f fl[iese (.Jas sys"Lei inn and eirivir"oninnein-tM bein e-firts, ire iron oviing one Ibairrieir to
ex"Le ir islion cosh s wire fLR ided I ita"tepayers,Cheire is u-tiHirty eI�e c'tirlrflicatioin progiraims.151
a sys Lei im wide savings oppoirLunily for cus Lei rneirs
t Ian a-L c a in Ib e fL.j II II y v a II t.i e d....... 11is app ire acIan (,_(,X.Jd iinck..Jde Phase out utility incentives for gas appliances.
a s(�,,,"t of's"Lair-idaire' cos,ts"Ian a"L cain Ibe appHed aciross IMainy gas efficiency progirair ris--today encourage
a wide variety of situations(e.g., UnaL ain II eI ecbric cLisLoirneirs to puir&ase in ew gas furnaces, bofleirs,
inew �OLJSiing (:Iev6�qpimeiri-t,avoids $5,000 F)e ir r m use an d wa-te ir r i ea'teirs, Ibas e d oin fl�--i e effici e ncy
In gas iin"firas"truc"tu ire)and spe('.111--fi c cep s,ts flha--t cain Ibe ii iron p reeve irnein"ts inew aIr)pHainces offeir corn pin ired--to
il dent,ified li n Lairge[ed situations(eg., i cLirfficaliioin oU app Hw ices......Mis iinves[IMeinL hn a gas app Haince iis
ire't rep"ftts iir-i ttiousainds of Ianoimes avoids irriiHkoiris (,)--f t.i[I.J iaia"[4ly iincoirisis"tein't'.wir[.ln cHirna-te goMs, Ibecaujse
do� HI airs in gas capaCll'ty LJlPgirades). i:lh imodest,e im i ii e irn iFe6_ic-floiri firoim applkaince
efficiency is Insufficient,t Ikeaep Ipace wiffi [[-le
Remove prohibitions on fuel switching.Sonne 8..............1 00 Ipeirceir-i-t gire eNh(-)use a ire(J LJ CtJO iris"Uha.-t MHI
s"La"Les Ian e [1 impHc[rt, or expH(i'tire s"tric"tJo iris oin I required iiri imany s'ta,t(:::_::�s.
uLflHLy suppoirt. of fuel swiLc Ian ing, WhiicIh aire cIIeair
i irTi Ip e d[I ir"n e ir.i t s t.o Ibu..iflWiirig decarboiniza-tiori. IIin a Gas s-toves addi--tioinMHIy Ipose Ianea[Ian itisks firoim
recein-t poHcy Ibiriel-f, Une Aimeiricain CouincH --for ain worsened iind erg or ail ir qL..jaH-ty.11 MH ineed
.. ...�y found Uhat, poHicies Lo -i II it criteria for Whein and Ihow gas
..........in e it g y ffi c I e in[ II::::::::conoirT Ito esLaUHs[
e in a[)I e fU e irieL.TtiraII savings Q6 aire --for I.-Ii e irTios't appHaincep 11 in cep ir"i"tives can Ibe IpIanased OU"t, IkeMainciing
pair-t,s--WH i in --t Ih e i IF i ir-i-fa it icy," aind a-t, Ieast 10 s-tates inear op po r"LL i r"i ii-ties--for irflodes-t carboin ireduc-tim i
explHbHy pir(-.-)hHbiL fueIl swiLcNing nieasuires."I with ffie IlieUlime of applHw ices,Whiille aIIso eir ISUIriiing
--t Ian a is WI cu is"Loimers or o-t Ian eirs M io cainino"t eIIec-tiri-fy
-io-t dis�pirc)�poiF"Iioi�--ia--te��y�buirdeined �by a �p�hase
W ir-i ineso-ta's Coins(-_,.�irva-t li o i n I iri cein.fl v(-_%, )irogira im a ire r
�D �8 - iinsLainc( liinc�Wes uNkLy efficiency - poHcy imay ineed to c�nainge to a�How
(C II ))0 fo it ouL S[a[(
Ip ire giraims and iInCkJdes cairboin dioxide e imilssioins su& a Ip[iase ou"t, pa Ir 1..[1CL.dai1y wheire U-tJH"Hens ait
ire dUct.,iioins airon oing irts goak, bu-t does ino-t II II ireqUi rep d I s"ta"Lu"te'to Ipuirsue aIH cos-t effec-tivet gas
for W6I swiftcNing, even if it su Ire poirLs L[iaL goaIL IIin ireducLim i iMeasuires.
2019, 't Ili e Iv iiinirieso-ta )epair'timeir i-t.o-f Coimime ire e
,(Moil
Z�J I A 10 1 L 1110 ITS 0 1 U I I [�)I N G -'A RZ \i I 'A I 10 N 1 31
TIT
eimiissiioins savii�ig poteir vtiM firom dion targe-1,s Mone, whflle
8 iiindik.lates th(: achileve deep decarboiniza
redirecLing gas furnace iir iceiriLive Iprogiraims L(-.-)waird IheaL Ipuimp reLirofils can (gireen kine). [::vein if IrieaL Ipump
lneat IpL..iirnIp retrofi-!.s. IIin this iIIkjstirative exair,TipIIe, an adop--hoin iis 50 Ipeircenis IIoweir at t[ie sair-Tie ft..jindiing
existing s"Lock of 90,000 gas fi jirinaces pro6 ices oveir IIeveIIs (INk je Iiine), Lhe ['ieat PLITT'ip a[Leirinatilve IprodUces
300,000 meLirilc Loins of'CO 2 Ipeir year.M-iflle soirne g r()aLeir,emissions ilimpaci. Lhain continued focus on
eimissions redUCti0ins are IposskNe from irep acing oM upgrading gas applkaincesa
gas fuirinaces wlth inew oir ies (giray liir-ie), fl[iey cannot
EXHIBIT 8:
Heating Emissions Trajectory Comparing Gas Furnace Upgrades with Heat Pump Retrofits
Metric tans CO 2
350,000
300,000
250,000
200,000Wm
Wm
Wm
150,000
100,000
50,000
2020 2025 2030 2035 2040 2045 2050
1—i"Funnace upgrades" "IF unn t Iheat Ipuimp swiltdhing" "IF unn t Iheat Ipuimp swiltdhing at 50%adolption"
Assi irnp-tions,stock of 90,000 gas-h innaces irelplaced a--11-.a race of 3,000 Ipeir year;average cairlbon llin,teirisi,,[,y of JS electric gird
-iew ga
s fuirnacles 95%
(94.3 Ilbs.CO 2/lMWl[))dedines linearly to cairlboin ineut,,irall-ty iir-) 2050,ex�s,tling gas ftlirinaces 75%All �J 11 a s
.... . ...
........ II:::::::. .....I :
All (J , hea--t purrilp COII)::::::::::2.5
,(Mot/
0 1 U I I I I IN G I C A I I��3 Ni I Z A I 10 IN 1 3 2 I G U I A 10 1 U 1 O�T
.rIT
IIIIIIIIIIIII
7 UPDA..........FE E ................... EC.............FR C .............FY R A..........FE DES GNS
fl& �becoirnes uini�iece ssairy as t1ie
-�c-tiri c and gas ra-te desigin it nay ineed ire--foir irn [I rif iras"t,ir uc"tu ire M
to capture beinefliLs and supIpoirL affoirdabiHty duirIl ing bra insilion away firoirn gas uinfbIIds. �egUIa[oirs irriay
a "lira insitim i firoim gas coinsuimp"tim i 'to 6ectirici'ty in d to§hoirtein flhese ftpireciatioire tiirneH ire es"to ii-nost.
coirisuimIp'tio ire. On t1he 6Iec'tiric side, .III exi Ib IIe der naind accuiraL6Iy aCCOUI[Tt f'.bIF t[le costs o--f gas i in-lira s"tructu ire.
firoirn ire caw II ads can suIppoirL a [iig[i ire inewaINes
girid. WeHI desig ire ed flime varying eIIec-tiric Fal-.e iru d FO Ike e Ip u.ip Mth cI�aingli ire g eir"ieirgy inE:.)E:"ds as IbuiNir-Igs
deii nairid fl cox iNH-ty Ipirogirairy-is cain eIrISUire 'ffia't t["ie f'LflH decairbo ire ize, cornirri lissions cain co ire sid(-_%ir flhe fbIHowiing
vaIlue of 6 e c rffii IbuHdiings [is captured, and ffiaL appiroa&es to Ipuirsue affoirda Ne,sLaU1e 6 eckrlic iraLes
cus"Wimeirs caire IpairtaIke iin flhe eco ire oir'Tii.ic Ibeine-fi-ts o-f -foir MH, as a gas--to 6Iectinc"Lira insi-floin Ibe(.:* -11 in s
flhese a'ttiribu-tes.
IM Consider equity impacts of electric rate changes.
t[i irn e vairyling ra"Les ire �iai�poirtairvt"to [)e'tteir
1."' u i II d i ir i g e c i.iF Ii f i c a t i o ir i als scak....-�% wflH M s o add eIIec-t ir i c irty Wh He
deirnairid hri win'teir, Ipo'te in"HMHy cirea-ting win'ter deirr'iair a ire flec-t fli ie true cos-ts o--f deHveiriing it geir iera-fl ire
g
Icily, as II fir �heat, becoirTies i oire
IpeaIks in ircgioins [1haL CUiF ire inHy exIpeirieinc(- SUIFnimeir 6IecLir nn
IP k's.. ......II......Ihis II girow-tl-i cain Ibe ima ire aged in Ipair"t widesIp ire ad, i-t is cia..I ciaII to ensuire 1.,M-t NgIh Ipince
tfiirougI-i sirnairt.ita"Le design, deimaind -III cox HNH-ty, and d i ffe ire ir vtiMs(da[Iy or seasoir iaII)do inot,cirea"te a
tairge"Led eineirgy effic.iency. As IIoads aire Ibehng sirtua,floin li n WhicIn 6Iec-tirli clrty is uinaf'foirdab 11e duiring
-for ecas-t, l[ie sNirf"I.Jing po'tein-tiaII firoirn SIff"mir"t ir"a"te desigire flhe days irt,wouN Ibe m cis"t ineeaded, -for exarnpIIe,
sIhouW Ibe conside ire d., during fli a coIIdes-t days of win-ter, [f seasoinM cos-ts
sINft to Winter,ci..isloirneirs oin fixed iincm nes irnay Mso
r-
fli OILFI flhe vair�a'flon in
lRal-.e desigin, esIpeci II y w�hein coupIIed wi"Hi deirT"iaind ineed inew irnec��ainisims to sirnoo
fl cox i b i Ht,y Ipirogiraims, car i irnaIke 6Iec-tirirficatioin iry u o irc IbHIs aciross flhe couirse o-f"Uhe year.
cost effec Hi ve i,.. it cus[oirneirs. As is L[ie case witti
eIIectiric ve[-iic , 'ffie additlio ire aII VOIIUime or eIIec-tirlici-ty Eliminate or reduce inclining block electric
sMes care Ipirovide it mir'rfles of'scMe, sIp ire adi it g fii x urates. IlincHii ihr u Ib 11oc k crates(lka -[Jeired ra-tes)cIhairge
girid costs over IIairgeir voIUmes. [,,,,,,,,oir cox air-nIpIIe, IIw ge a [iigI�eir Ipirice for eir ieirgy ccup ire suinipLioir i above a s e L
inew wHd-fiire Hi abiHrty c s-t Iboir ire e Iby CaH--foirirl li a 6Iec-tiric flh ires IhoIId;UhE)se s-t iru,u c'i~u it Ihis-toiricaIIy eire cou..jiraged
u"UHH"Lies can Ibe sIha ire d aciross a IIairgeir v6Ume of1 eineirgy conseirva-tioire Ibu-t now cre e a disincein"Live
6 ecLiric[y sMes, imu[Jing [1heir iimIpac[oin rates. for 6 cbrlifica[Join of IboUh IbuHdiings and v6hic Ile s.
On.flhe gas side,decHini ire g t[iirougIhIput or i the gas sys"teim I ire cIHiniirig NocIk ita-tes Ihave aIIso Ibeein proirno-ted
imay create uIpwaird Ip ire ssuire on gas ra is ii in order for as a Ipirog ire ssive imeans of ire aIkiing eneirgy IbHIs
U t i II i t i e S tO ire c ove it t li ie cos-ts incuirred to iins-taII, irriai ire'tain, ir-Tioire affoirdaINe fbir IIoweir in( cus"toimeirs, Ibu-t
and oIpeira-te flhe exis-ting gas sys"teirri wi-t[--i d ec-H ir-1 11 ing 6Iec_'tirici'ty co ire SUirriptioire is oir-flIy weaIkIIy coir ire Ia-ted
voLimebric saIIes.Co ire suimplioire and cost causation aire wiffi iincoime. IincH ire li ire g Noc k 6Iecbric iraLes rnay
H Ike IIy--to sN-ft aciross cus-toimeir dIasses,cirea-fling a ire ed"to pe ire aHze II ow incoirn e �ouse[iNds wi-flh Ng[i eiriergy
ireaIHoca-te cos,ts airnc,,)ing iresideirv!.JaII,COIMimeirciaII, iindUstiriaII, use, aind o-their aIppiroa&cis su&i as iiricoirTie quaH.-fied
a ir id poweir geirieiral[k,."n cus,loimeirs. diSCOLE Aed ira[es imay Ibe im(.-.)ire eff(..�(-Aive in ac.[fleviing
flhis ou-tcoime.63
AdditioinaIHy, 'Uhe Iloing de� pirecia'tioin sclhedU1es
assig ire ed to gas i ire fir asLiru icLuire dU ir li ire g Wie iraLeimaIkiir ig
Ipirocess........................lypicaIHy irnainy decades......................c o in't it i Ib Ll"I e s t,o
Ike eIpiiing g a ita-tes II ow, Ibut,wiIII ireo-t Ibe ire aHstic--for
A moll
0
0 1 D
i:(j i i
II G U i A 10 1 "1''"!S C)i U i i(D'\1 S i N G C"A i I 10 IIN 1 3 3
TIT
Expand time-varying electricity pricing with &&Fges, iri co u it Ihig[� it cus[oirneir Ibad facLoirs
siligin ilificaint 1peak to off peak II iris iiratios.......o cap'[L.Iire (e.g.,'flttteir II ad Ipiro--MIes), ita-flieiF-ffiair iIb Ipiro-fHes
vMue firoim 6I ec-tiri-fica-flo in's deimairid III exibHH-ty s"Lira'tegicMIy§�iaIped to irriatcIan iris ir ieeds....... Ihey irT--iay
po[einl[iaIl, Uhe Ipirice Off ireinLiaI in a Uirrie of[.,Ise itaLe an so peiriaHze cusLoirneirs for sIpflkes li n eineirgy[.,Ise,
irnusl-.Ibe IIairge eir iougIh 1-.o eincouirage beirle-fidaII II ad ire gairdIIess o-f Ian e-flieir 11hose spikes occur duiring
s Nifting, or a[teirina-te li iriceir n'flves MUS"t,Ibe of-fleired cos--Hy fl ins es foir t1he giFli d. ......II......iime vairying vo u.�ime-Liric
UhirougIn deire and irespoinse Ipirogiran-is. itates Una[ moire accu iron[,6ly eincouirage IbeirieflidaII Ibad
Mi iffli ir-i g iin-to bw cost.IJimes cain ofk�ir'gire a ire ir vak ie
III II airi6Iysis coirripaired Ip iris dir n iron-tios of 31 and f it iiTi deirnaind iFnait iageimein-t WhHIe addiressing tt ne
1.5-1 in CaHfoirinia, air nd f(.-)uind t Ian aL cusLo ran eirs wiffi sair"ne cost ire cove iry objective UriaL deimaind &aiFges
flh IhigIheirpikiirig ralJo COLfld save 1 Ipeircein-t in seek 1:o-rii II.
flheiir Ihea-fling and coo king eineirgy cos-ts, coirqpa ire:
d
to [Ili ose wiffi ttie sirriaIIeir itaLio.61 SucIh a iresUft Consider new electric rate concepts,such as
does Fequiire"Uhat CUS"[0ir-neirs Mve access to flne subscirili ptioin iirnode III s.0-11heir inin ova"Hive itate design
te c Ih in o II o g y t. ia-t can optill imize flhe tilliming o-f flh61F options irnany Ibe we I sui,ted"to III ec-tiri-flica-tioin,iincbdiir ig
e ir ieirgy usage Lo can IpLuire ffiese Ibeir i e fi Ls. subsciripLion ir-nodek L[iaL orye it coinsisLeir it, p fired ic[gin UIe
piFiding(subjec"t"to coinsuirnption kirri lirts or o.flheir
Reevaluate the use of fixed charges to offset guide Hi ines). 1�a-te desigin imay Its 1be 11 incoiqpoira"Led
voIII uirne.uric c eIII irilic irates....... Ihe aIIoca[ioirl of costs iinto Ibusiness imod6� Ihainges su& IheaLing as a
betweein--fixed airid VOkJirnetiric c[iairges oin a seirvice o-ffeiriirigs or dis"tiFic"t.Ihea"t seirvice.
custo ran eir's bHI Ip ire seins bo-fll i qpIpoiFl.,uini-ty ain
risk. Ilincireasiing fixed c hairges oin 6IecLiric IbHHs, As a it L of S[3 1000 in Cakfoirinia, aind SoCaII
WhHe deClt-E asiirig vok irne"tiric ire:l:es, irnay 11 incein'tiv ilize boflh iiritirodu iced inew coirnimeiFdi a II 6Iecl-.iric
6I irisUh
.......... tion irriode�� wi ec-t -flca t.i oin �by dec ire as i ng flh i e m irk i in t v cos-- of 6hi c�� r e a-tes. GM offoirs a SL]bsciFi�p
6Iechridly coinsuir'i-iIpLioin. [.��3uL suc[i a cIhairlge imay aIIso a irnoirtr-iIly&airge for a ceirLallin airnourA of cIan airgiing
disiricein"L li vize CUS"t0imeir sited II it geiriera-flion Iby caIpadrt.y,will"Uh-till ins e va iFy i.ing c Ian irgiing Ipirices.WNIe
c[iaingiing flne ecoino ins ilics o-f irne-t ime"t.eir"ing,or i ins Ipose t[iese ir-a"tes aire sIpedrfic--to iiriin oven tive irriod6Is
undue cosLs on IIIw usage custoirrieirs M--io woOd coUd ako Ibe devebl [.)ed fir bUb ili ng 6 ecbr ffiica[Join.
face hig[--ieir IbflHs.
Reevaluate cost allocation and depreciation
Corn ins issio iris sIhoUId weligIh Uriese Liradeoffs oin a schedules for urates iiiiin a cIII aingii urn g systern.As
case Iby case Ibasis, recognizing ttm-t eIIec't.iri'flca'tioiri gas VO 4.limes (Jec Hl ine,"I[ie ina"tUire o"f cost causa"Hoin
goMs imay ili iritimdUce in coirisideiral.Joins Uhat weiFe rnay aIIso§hift, IpairticUIairlly firoirri ireside in'tiaII airld
noL IpireviousI y appaireinL.Wheire incireased fixed sirnaIH coirriimeirdaI cusLoimeirs Lo Ilairgeir,cusLoimeirs.
&airg(.. ire e ins pIbyed, coirriiaiissi.o n s cain (,_,oinsi.�deir Co ins irnissioir is irT,iay in to ire evaI4.ial:e cos"t.Mbca-tioin
iry-iakiing flhose opt in as a r neains"to iry natbh -Ur-idiF irrie-flhodok)gy�in ir(-_,�s�poinse, imi"Liga"flirig po,teint.iaII Fa-te
65
adqp[i wi cu oin ffi sLoinieirs Who &oose to ado p l. e incireas s for ires idein[JiaIl cuoime sL irs.
6Iecl:iri-flca'floin s'tiral.,eg lies(buHdiiin(� I elec-tiri-ficalJoin as
o irn iron I.issions MioUd iFecoi�isideir flhe
.......... tioinaIIy,w61 as V c��iaiFgii�ig),WhH�e in illimposillir,ig �hig�h fixed Addi
&airges oin II usage cusLoimeiFs. Lan daird Iiii-neHiries for depire pia t'Jing gas assets. in
-HimeHines irni"Liga"te iii npac'ts in gas ra-tes [N I-[i ins pIIy
Limit demand charges in electric rates. )eimaind ain exlpec'ta,tioin fbiF con"UnLied gas use Whi& cain Ibc:.�,
&airges, Ipair[JW1aidly in in coincident,deirri a in d i incoinslis Lein L wit1h cH irri a Le IpoHcy an runt Il in Leirran
fliriairiciaII risk fo it firm"tqp-ayers.
,(Moli
i IIG U IL A 10 1 S IL 110 II\j S II 0 1:(j i i [:)i IIN G C A 1 I II 0 Ni II Z A i II IIN 1 321
TIT
8 . EXPAND ENERGY SYS.............FEM P ....................ANN NG
iradftioiriMHy, gas sysLein-i l pIb ire ire li ire g airid 6Iecbricily IN Enhance energy system resilience along with
sy t i lr IIairiiri ire g lhave Ibeeire co ire dLIc"ted In isoIIa-tioin e�l�ec,-tiirli�'-filica,-tilloiin.M-ffi gire ater reHaince oin eIIectir�bty--for
firoim iea-t, �h(,.,,t wateir, ")- es ire q[.)poirtuini'ty
ea& ot[ie ir. [RegOIatioiri o-f gas a ire 6Ie c't irli c i't y and cookiing c(,.,�ire
[ias fOCLJsed on a II iiirniLed set of objectives, i ire cIWhrig in iirT qeiraUve to i nil pirove Tres Hkeiri ce of eineirgy
eIr'1SUirir igjus--1 iri ireasoiriaINe Fates airid seiry�ice seirvli ce.......oday's eIIectiricity aind gas sys-U.....-,;%ims aire Ibo.-Uh
r6HaNH-ty airid sa-fety. IIiri irc ceirit years, 6Iec--Liricity sys"Leir n h ligNly ire HaINe, Ibt..i-t in iristairices o--f eve ire seirvice
ire gL.flaLk'.)ire Irias Ibeguiri Lo ( irT'ib ire ce a bir(,.)adeir-se[of diSIrUpUoire IboUh imay Ibe% iinLeirirupLed. II ire imosL cases,
goaIIs, i ire cIWiirig cHirina-te irni"[Jga'tioiri aind iresiHe ire ce, Ibu.-I ire ei-flheir gas noir eIIec-t iris c IhealJ ire g eqLl il pimeir"I't."fuinctior"Is
gas u"UH-ty regLflb"Llio in Ir--ias re-thned a Himirted focus oin duiriing 1poweir ou"tagens.
Liradil[ioiriM goaI&
Mtlh Ibo-fln Increased 1piroimiineirice of MHl 6 'tiric
o sup Ire oirt decairbo ire iza-floin o--f flhe ire sideirrtiM airid IbuH iings air id gire a-ter i ire cider ice o--f iria-tuirM disasteirs,
coirnimeirc iii a 11 eir id uses served Iby gas disLirbuUoir I uNkLies aind ire gt..i1b[oirs cain 1pu jirsu je gire aLeir res ili keirice
ul.,JH'fles, iregU tioiri iFy ius"t.evo11ve. 11in 1-1-iis sec-tioire is[--i ro u jgIn [-iiglheir adop-tioire o-f site 11eve11 so11air aind
we descirbe oppoir"Luir d"fles to do so,"focused oiri Lc it coo imimuini'ty imicirog iris ds,aind/oir advain c ed girid
coirnU ire ed 6 ect,iriiciLy and 1p11a ire iniirig, iresHilleince, ttie coirAiro11s Mii& einaINe segirrieiriLaLioin of Uhe 6�echrilic
irneaSL]ir�oo lisot t e ou"t s.age Gffi eir ires iH eirice es 1)LJC iroIIe 'lin capacity pIIaininhng, and pIIaininli ire g --f r gas iris t iii-i-firas-truc-tu ire r"e'd ire imein"I[s. i r i c L 1plhysicM rii Ihardening,M flc[i cain iFeduce
Uhe ir icideirice of outages duiriirig ire a[uira11 disasters.
Plan for electric grid impacts of electrification.
As imoire e ire d uses aire served Iby 6 tirici'ty,flhat IN Increase the PUC role in reviewing gas capacity
weire oince served Iby gas,oHi,or 1pro lair ie, usage of expainsilloins llike iinew pill pel III Ines.W4 e e ecLiric
-ff--ie e11ec-tiridty sys,teinn w�I 1H inc ire ase....... �-flis cain lhave ireC)U11 sell oire i ire c ire asli injy irequires irobus-t i ire-tegira"ted
ic�Wiirig evaLatioir-i o-fir i o in wires
cos--t beir-iefi-ts for 6�e(,.,--t ir�c ra"Lep aye irs........................ i n s"Lain c e, r eso u rce p11airi in iirig, i ir
[if fixed wiWfiire IrTdi ligaUoin costs ir i Ca1Hfbir ire ia aire so11uUoir is, gas u0fty capacilly expa ire sioins lhave r ioL
sp ire ad across a 11airgeir vokirne of IkMu sa11es, Mways fa-ced -Ur ie sairne 11eve11 o-f s(:iru1Jiny. LJCs sIr lm.dd
us��y assess flhe ineed -R-it ir-iew gas capaci'ty iin ra"Le i impa ct MH� Ibe siriria1H eir. L rl I ako a d ds iri(�,�w Fi goiro
i ire fir asbrucLuire irequireime ire ts, for i ire st.a ire ce U l g r ii in II iigM of state 11 ii rn [ 1po1kcies, perhaps coiris lideirli ire
g
in it iris im ii ii iri airid dis-tir ill bul.Joire systeims in coM joiin-t u--HH-ty Ire11ainiriiirig aciross e11ectiric aind gas sys"leirTis
cHi imat,es will-Uri girowilling Mri-teir 1pe Ike "to e ire suire fl"i al,,custo ire eir's hea-fl ire g ain 1poweir ineeds
aiF(:.:,N seirved, eve iri during a gas Lo 6ecLirl'c LiFainsilMoin,
ineirgy Master II iru sI�nowed t1ha--1
IN caw Jersey's ��..................
O�p Che Ie ast c t os" decairboiNza-tio ire pa-Unway iiric1Wes Ii n Mairclri ,"
2020Un �N r e ew Yok C eiried a
6 ochrifyli ire g Uhe vast imajoiriLy ofbU li 11di ire gs iin state, Iproceedi ire g Lo exairT,ii ire e gas p11a ire iniirig pirocedures,
coin'in iribIL]"H ire g"to ire ioire.in hair i o u Ib 11 ii iri Ireeak e11ec-tir li clrly requir li ire g a1H gas p11a ire ire li ire g to iiricLde co ire sideiralJoin o--f
de
66 imaind ai nd a s[iif't firoim suimirfleir"to Winter peaking. in o in plipes so11u-tio ire s.Additio ire a1H y, 'Uhe )SC fOCUses
i a[a riy
Re g U�a[oirs ir-ri usL p11ain t10 imliniliM ize Un e i impac[s of oiri "poHi c y a Hgined gas p11ain in i in g, imearfl in g I t
e11 e c-tirifl ca'!J o ire airid eirisuire 6 c-tiric giJid upgrades aire 11 o in g teirim gas 1p11air i ire i ire g irflUS"t Ibe coinsis"ter 1"t wi..Uh INew
coire duc-ted cos-t e-ffec-tiv6 y. York's aggire ssive c1H ire a'te goa 11S.,61
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II II C'11 A R)I��3 0\J '17 A I 10`�J 1 3 5 I G J I A 10 1 1 U I 10 IN S 0 1 1:U I I [)I IN(j
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IIIDevelop plans for deli i i i III a i ir Lhe eiri sysLeim to seirve imiiriiimaII
iretfireirneint of sections of'' III gas delivery systern. [f ct is"tomer IIoads WOUM chaIIeirige affoirdaNh-ty aire
6Iec--Liri-flca"i Ipirog ire sses it it Ily,M-th sca-t-tershot pote ire ti6Hy§Jft cos subs-Lair riy firoia-� IIow usage
dedis�i o ire s it n IbLJAdi ire g Iby L)u Hd�i it ig aire appha ire ce (eg., cooking oiN�y)cusLoir,is Lo lo[[ileirs IIess la IN
Iby aIre Ire ha ire roe, gas sys-Lern u--U hiza--i wflI faIH aind to leIIec--i �)eOIa-t oir s cc)UId work wi-t1h u'flih"i"to
y I
some cLs-Leits of customeits imay irequire su jIbs-tain--M eve II Lairge-ted 6Ieci:ai IreIIa ire s in Ipirovide
�i in fir asLirucLu ire to seirve irni ire iimaII deima ire ds, 1perhaps foir IreaLhway Lo hm III eirneinL Lheim, lire it it Lo ire L[iire
simaII eind u II ike cook�i irig. segirneiri"Is of-i gas sys--teim aire imait iage costs
dUiriing a gas to 6 eci Lira insiiie.
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MOD ..........F........... R "" Z ..........F........... U..............F .................... ..............FY
BUS ESS MODE ....................S
l oday's gas u-tility business Imodel is not well aligi led l ir i this section we firairne broadly"two po"tein-tial
wiffi decarboinizing Lhe Ibuitllditngs secLoir. ......I Ihe FegullaLe IpaLlhways for gas Wililies i1irl a decarboinizing ecoinoirTiy
gas u"hli"ty business is (based oin Iplalnlnitlng, Ibuitlldiingy aind Irecolrnlrinelnd spedific regulatory rTiechainisir"ns
irT iaiir rLahning, aind opeirating a inetwork of pipes available in the inear telFirn to suppoirt this trair isirtion.
aind otl-leir [i in firasUrUCLU ire to deli vex ir gas to limpoirtain[ly, the oinUS for Lira ins forima Lioin caininoL
busir-iesses, irldustirial fadlirlies, and soime-dirnes Ipoweir lile solely with u"till"Lies,-[l�--ieimsellves. lRegulatoirs,
Ip l a in t s. ......l 1hits st.atus q u o wil l inol., Ibe feasil bl e i in the futu ire-, policyimakeirs, and shaire[iolders irnusin also cireate
c cl)i A es�Ainuing to disk ibuLe aind burn Lhils gas in Lhe saime Vilable Lirairisitilic,)n paLhways L(.-,)geLheir WilL h ili[i Lo
way is iiincoingiruous wi-fl� a decairboinized wor-ld. eve In ia-ialke such tir-air isfoirimatioin Ipossible.
EXHIBIT 9:
Pathways for Gas Utilities in a Carbon-Free Future
Pathways for
1
Gas Utilities in
Gi,as utflifies transform their,bt.isiness mode's to
a CarbonmvFree flv,ive 41 a carbon-free ftftre witl'i new offerings,
Future
..........
W,/
F' 11� jl�
............
-gy to electricfty;
Gas sys te rn �,iei winds down as e M',iftr.
riew earriirigs OPPOrtlinifies for gaS Utilities to marlage
-arisifion;workers supl,),orted with an f.�Wecfive b
transition plan arid secure beriefits.
rrrr
DEAD,mEND �PATHS
PATH 3 Falkire'to mitigate climiate change.
Failure to rriffigate cHniate cl"'iange,,ConfirlLsed widespread gas use
contributes to unsustainable en"flss�ons arid clirnat�change well in
excess of n,ianagleable leve&
PATH 4 Gas utility deat ffal. Ga S UtHity death
spiral.Custonilers def6ct from thie gas systeni,r'aisrng prices,
strauning the Utflity business,chaHenging cur storner affordability,
and leaving eriiployeeS Unsupported,
PATH 5 Overreliance on RNG.utilitiespUrSUe RNG to
m aintain today's business model,leadirig to either path 3(because
avaflable RNG is insufficient to efin,iinate ern�ssions)or path 4
(because high,cost RNG spurs ITIore electrification),
�G��MOv��Z
i II G U i A 10 1 1 (J i i '\1 S II 0 1 t II U i i [�)i IIN G II t IICA i i (D INII 12 A 110 IIN 1 3 7
TIT
[ieire aire IpoLeinLiaII desiiraINe IIoing L it i Ipaffis for imodIII WIL[I ire iriewaIJe ina[,uiraII gas"(1' NG)subsU lino ing for
gas Lltfllities:1)transforming their business model dos sill gas,we d inot consider-ffiis to Ibe a via�Ne imodel�,
to thrive in a zero-carbon future or 2) managing giveir i flh Iliiimii-ted scMe o--f affbirdaINe III ir-esouirces.,10
a gas transition as customers switch from gas to
A�. ....carbon-free electricity for heat,and the gas delivery .Iransform the gas utility business
system as we know it goes away. .....Mese pa-L[i iMay model to thrive in a carbon-free future. Gas j--Wli"Ues
Ibe con-flbined (i.e., a u[flfty imay offeir inew seirvices imay Ibe aINe to cire e inew ireveinue oppoirLu n 1i Lies
dUring a trainsirtion Ipeiriod as irt reduces flhe size o-f t[-le .'to S[li'f't fOCLIS, Iprovidir,ig [iea-tiiing and co cap ing to
gas sys-te ire). cus"to urn eir's in new ways Uhal.,einaINe a cairIboir fire e
LirainsiLim i w[--i ii II e it e irii a ii it ding a viaINe Ibushriess. ...... Nree
0-flheir II cm !,.e it iri i Ipa-flan ways a irc IpossflNe bul.. po-tein-tiaII irnodeIIs aire descirflbed IbeIIow. ...... Ihese
r io-t desiiraINe, as flhey Ipose severe sociie-taII aire Iairg6Iy uin-tes-U-d --for FegWat.ed u--NIIrtiies, Iposing
consequences......................faii IIuire to ire duce gire eirlIrIouse unceirLallir iLy about [Iiehr viaNIIifty and Whettleir ffiese
gas eirT,iissions and SUffeirling "Ifie cor-isequences o--f Ibusiiriess irnodeIIs aire appiropiria"te--for iregWa-ted
unimi"Liga"ted cIIiirnate &ainge and/or a "dea-Uh spiirM" irn o ir-i o Ip o II i e s. ......II Ihese imod6s imay Ibe used ii in
and c[iaoLic co II apse of L[ie gas u l ii 11ifty Ibusiliness. A Conjunction or sequence wiU i oine anoffieir, and Uheire
cNIIapse caw m.jW cause escaIIa'tiing eineirgy cos,ts cirea"[11 ing iry iay Ibe o-Ian eir cirea-tive irnodeIIs ino"t ye"I conceived.
a-ffoirdabiIIi-ty cirises foir cus-toimeirs and s-tirahning flhe
ire IIiaIbflfty of Uhe syst.eim, aind IpooirIIy IpIIairlirled business 110 Heat as a service....... uWfty Ipiroviidens seirvices s u c[I
faiIIu ire s wouN IIeave eimpII cry ees u iris u Ip Ipo irl,.ed aind as fl[IeirirnaII coran-fort,or [iea-t, iron-their t[ian co iron irnodi'fles
Unprepared "to trair"isi'tion. IIiIke cUbic feet o-f gas....... Ihis coWd s-tairt as a inew
seirvilce airraingeimeM with Uhe CUsLoirT"ieir's exisUing
Avoiding IJ�ese m.j'tcoirne sire quhres s'tiral,,egic pIIaininiing hea-tiling equipit n e in t........................fo it[i in s!,.alr ICE), providing
s" --for--fuirinaces boi��eirs air condi"Lioneirs La ir"fling inow. ...... Ihe C Mi-foir in i a 11L JC ire ce in--U y ��au iricIh ed imai n'teinain ce
a Ipiroceeding ahmiling to expIIoire IIoing Leirirri pIIaininhng and water heaLeirs iin U ie sI�oirL LeiriFn, and irqpIIaciing
an d p N icy, wN c lh co O d c ire a-te s u c'[i air i o pport.0 n[I-ty.6 wi-tt-i Iliea't PUIMIPS Waiein existing equipirnent ineairs
ICE w Yoir-R Ihas Mso iir i ii-fli a"Led a Ipiro cc::::%ediing focused m I end o--f IIifie.
na[ui4I IpIIaininj,Fjg,,69
L Jinder-Uhis iq-mdeII flhe cus-toirneir Ipays coin sisl,.e in't
Ili ii tira insitJoin MI II IIooIk veiry dif'feirein-t fbIr LftiIIi'ties imoin--LNly IbiII II t[iiroug Ian mst fl ne tirainsi-tion, coiFrflbinhng
UhaL oinIIy seII II gas, as coirnpaired to coni Ni n ed fu e II Uhe costs of eneirgy Ipir Zvi slion and offieir vMue added
u"N I irtli es,-Uhat seII II Ibo-fln gas and eIIectiridty. Airon oing o-fl�neir services.SU& a imodeII couN einaINe t[ie u--NIi-ty
stra"Legiles, ccup irTi Ni ir-i ed gas and 6Iectir iic u"[ii II irt ii es iri'lay to coord ii ina"le bUiUiing IIev6I equipimeit i't c hairiges
Ibe aINe to wind dowin ffiehr gas dii skribuLion sysLeim, with imw iaged ire[J ire irT ieinLs of gas disLirflbul[ioin
sNirf-tiiing tt-Ie ii ir(---us"to rneirs, ireveinue s"tirearns, and capi.taII iii"fir aS"i.'.IFL..]C"LL]ire, or il-b opportun ii'ties 1'.o coir"Is"tiru
iei tiric-t hea"t SYS"LE:ims as descir�bed below.
hnves't is n'ts to wa rd fl h e 6�ectiri c si dE,"o f''fl heli it bUS i iness. dis ?,
Gas oiNly u"WIIrties, IacIkli ing flhe OIPIpOlr'tLlln ll't y"to s[-iift irevc inue IN Carbon-free district heat.....nhe ul.flIlrty mairiages fl-Ie
to a diffe ire nt IbUSiineSS Uinirt, imust ei"[[Ieir trap ins-forim Iby Ip II a it i it i ii ing, eirigiineeiriit ig, cons"tru c,tilon, opeira"floin aind
adopting eit Aiir6ly inew Ibusiiit iess irTiod6Is or seek to niahLeinaince of d: in diis[iricL IaneaUing and coca IIiirlg
imaxiii n ii Ipiro-fit Moing a irnainaged Mind dowir-I of their i nfir as1.in..jC'tU ire......nhese sysl,.eims irnay iInd4.jde ground
tiriN i"Lion systeims.And Ian iII irTie gas u--NIities aire O u...0 it Iheat,p jirflps oin a§haired irc U irn IIoqp, it o..[Ian(�-,�ir
cuirireinfilly Ipiroposing a coin Unua Lion of today)s Ibu isiin(ass cairlboin free app iron cIr es to disLiricL Ian eat........ [-iis imodcfl
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[����iirsL il MH� �be less costly.A imairiaged hrairisi[Join
cou k-.] Lake advairiLage of exisbrig utHkly capabHiUes,
��foir exairnpIIe, IpIIair u i li irig and execit..iti ire g LE idergiround strategy WOLfld deciF(:.:,Nase sLirwided costs Iby avoidi ire
g
coinstruc,floir i work,opera"Hirig iir i-firastruc-Luire ine-tworks, iFiew gas in fir UFUCLU ire M ieireveir Ipossible and
biHkir ig,and cusLoii neir service. seque ire cir,ig a LairgeLed ireU ire ir,ne ire[IreIIw 1 of exisU ire
g
i ire fir ashrucLuire......................sI�--U[iing dowiri W�oIIe se tioins of
Green hydrogen....... I�--ie gas coimpainy Ipiroduces, to itUhe gas giri.�d coimimuirifty Iby coirnimu ire ity, itatfieir U.iain
and dishribuLes gire eire li�iyd ire geire Iproduced [.Nroug[i opeiral.i ire g [Ihe entire sysLeirn to seirve dliirTflirdsIhed
6Iec-tiro IIysis,Wh i c[-i cain Ibe used as ft,.16I foir Ih ird,,,,,,,to IIoad scattered aciross a ull.,Hfty's seirvice LeiririLoiry. Ilin
abate indus-triM Ire ire cesses or--for seasoinaII eineirgy airi assessimeriL for ffie state of CMiR_)ir ire ia, Giridworks
s[oirage ori Ulf e 6IecLiricity sysLer ri Ihis wou fld eire LaH
a sNf'1-.away firoiiTi IIocaII e ire eirgy dis"tiribLYHOIri to irriany fo t iir-�d UhaL a ita[es wouM Ibe fot..iir Uirries as cos all y
sirnaIHI cus-toimeirs, Lowaird dist.iribu-tioin to--fewer in wiffiouL iriia ire aged [ira ire siLlioiri. Silirnflair]y, ireseair&
firo M ) -ripoirLaint,sLiraLegies for
��airgeir cusLoimeirs. eva�Wtes seveirM illir
imairiagi ire g sLirw�ded asset irlisk as gas use decki iries.11
A managed transition from IN Secoind, a irr�ainaged Lirw isftioiri HI ensure
reliance on the gas system to the electric system for protections and transition opportunities for gas
residential and commercial buildings. Oiri flhis Ipa-t[i,"Uhe utility employees.A skiIHHed gas workfoirce wflHI Ibe
gas disLiribuLlioin sysleffl i S 11"eUired, Ipeit[iaps wiffi II iiimiled ineeded to coinUinue to opeiraLe Uhe sys[eiri-i safeAy
exceptions'-for a sirnaIHIeir gas N isiness t.o dis"tirli bu"le duirf ire g t.Nis tirw isirfloin,and to Ip ire peirlly deco ire ire lisslioire
[-iydirogeire to Ihaird to 6Iect irisfy iindustiriM cus"t.o ins eirs., assets,afteir Whi&workforce ineeds MHI s[iri ire k and
is wo�fld ireq..jiire ��oing teirirri sys"Leirri plaininin -fo g it
sNft......P iis LirairisiUoin cari piroLecL and suppoirl[workeirs
h
siinki ire gas t[iirOL]g�h�PLFI, i lnCkAiiii g a sequence o-f oiI�y if�p��ainined w6H� in advaince.
III it
targeted irekreirnein[s of gas deHveiry iinfirashrucLuire INew peir-foirimair ice Ibased busir-iess irllodeIIs s[ioUId
as c��ust.eirs Of CUS"10irneirs ire coinveir-ted of:f gas
I dev6Iqped Lo offer iinceinLives aind We
eir-i-flireIIy. [t WOLfld aIIso ire e cep ssirtate IpIIait i it lill ire g a II it
tire insiHoire ain d aidirig i ire divi duM cusLoirneirs' bUHIdiirig bair-ir�eirs for u-fli�kties"to PU1FSLje a we�H� imainaged
Iev6I coinve ire ioiris. II ire addi-tioin, evein as fli�--ie aimouin-t o--f "Lira insition, and off or p ro-flirt qppoirti.,uinirfles as iFieeded to
deHveired gas coin"Hinues"to decirease, U"Liki"Llies §hOL1W gas o in IIy L.A HH Lies as Uhey s Ih ir i iri k L h eir Ib t isi ness. ...... I�ese
can iincLde flhe iryie&ain lisiry�s descrI Ilia ed b6Iow......................
e ire suire L[ie gas Uhey Iprocuire is produced Wirth decoupH ire g, Ipeir-foiriFna ire ce incein'tive ime&airiisinris
irniiiiiniiiinnaIII arnethaine leaks.
.........................................................................................................................................................................................................................
If,,,,,)II and sI�aired savill ire gs ime(:[�aNsims(SSMs)......................as
M a n a g i i�ig L[iis LirainsiLim i d6Hbeira[6�y provi.ides weIHI as o-flheir cirea"five iaiod6ls ye--t to Ibe dev6loped.,
sev(..?ire II advairi"Lages, co ire pa ire d will"Uh aIHowi ire g i"I"to I[;3u[a(:)-- LcaLe-d (above:::�, t..Ali Ifty incentives Mo ire e MHI �be
Uinirav(-_,,,II Ih IpIhazairdIIy-
i iris uffi ci e in,t.Addi-roil oinaIl &ainges.to ft.lindaime in'taI iruI ,
-for iiris-taince flhe ob ki ga,floin"to seirve gas cus"Loimeits,
MHI II o I irequired foir Uhis hrainsiUoin is succeed.
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J i A 10 1 0 1� [i3(J i i [�,-)i N G [D A i Ni i A 110 N 39
IT
Near-Term Utility Business 110 Introduce performance incentive mechanisms
Model Opportunities (PIlVls)! IHMs Mbw a Utilk'ty"to earin a re"LL]IFIrl"fOIF
M iflIe Chese II c ir�g terim pa-VrIways -for gas u-tiHt mee"fli
y i n g speci-fi c objectives"Uha"t aire in flhe P UN ic
tirainsi"Hoin aire being considered, we iFecoirT I ins eind illiriLeires[.SoirrIe 1peiriaI ill ze uLili ill ies for w ideiqpeirfbirirnhg
ill iron IpIIeirneintiirig o"t III eir u"111 ill ty bushiness irriodeII ire--foirirris agaiins"t.a Ipair-!JcUair ran e-tiric. Us cain I used
flha-t cain eIrICOUirage IbuHdiing decairboinizatioirI. Il iny of to iinceir"I't u"UHH'ties to desigin Ipirogiraims aind irnake
these aire aII ire ady ili ire 1pIIe ins eiri-ted kin soirfle eIIec-..Liric ain illinveshrneinins Uha[U-Iey woUId noL under a 1puire cos[
gas u"LII ill'ties. of service rnod III.
110 Expand revenue decoupling. gas airId eIIec-tiric [,,,,,,oir exairT-IIpIIe, in I w York, Coirfl[.��::::.'.'d ill soin cain earin a
Ll"HH"Hes reveinues sIhoUId Ibe decoii..jIpIIed fir oirn Ipiro-firt 1-birou..jgIh ain earinings adjr..js"1irT'Ie ire--t irriec III aire ill sini
II es VOIlLflmes.......II Ihis MH� eklimiina-te Che direct Ipiro-fl.t. oin SLIccessf'U I b eiri e-fiiciaIl 6Iect.irifica'floin,wi-flh flrIe
inceir"I"Llive"to iincirease gas saIIes voIIuirnes aind provide qppoirLuinity to eairin up to$14.5 irn ill H ill oin 11in 2020
assurairice of cost iFec(Weiry durill ing a imairiaged "for succeSS"ftd g ire eir iIhouse gas ireducl.Join tbirOL]gIh
"b ran irisirtioin as gas saIIes diim ili in ill sh. )ecoqp ki ing cairl a irn Iheal.Ipu ins Ip dqpbyimeiri--1. Ot[i e r in cue ir rtive
e ir Isuire t[-Ia-t utfli-ty it-eve inues aire as deteiFirr"ill ined ill in a coiricqpLs couU einipIhasilize avoiding addiLioirlaII
ra"te case, iFegairdIless o--f gas saIIes ill in a gi.ve n year. Ipe:*iiri"f'iras1'.iruCtLJ ire,or coWd ireward gas U-1:HH-ties
-for successf'U1 decairbon liza"tioin, even Wheiri flhat.
[,,,��:-uir t[ieir, iin decoupIIed s--La-tes wi-flh incireased imear n II siing custorneirs Who adopt,Ir ieaL Ipu ins ps as
6ec-tiric saIIes firoirri eIIec'tiri'fliczflioin, deCOLJlplHirig cain a[teirir-iatives to gas.
e Ir ISUire"Uha"t ira"tepayers see UrIe lbeir i e rill u: ital.JrIeir t[iain
sIhair6rIoUeirs. [-f ireveinues iiri a live in year aire IhigIheir II in soirne cases,sIIa ire d s avi.ings irne&ainisims coo uU Ibe
Chain exIpec_-ted due to eIIectir[fl ca'tioin, ita"tes MHI ad.iLIS"t use d--to li ncein't a U"Li kI l',Y t. IpLIMLK? inoin P. ipes SOkffloins
dowin Che -fbIHbwli in g year to coirriIpe ins a'te. to avoid in or qpgraded gas in"fir as"tirLICLU ire. 3Y
iirqp11eirrieinLiing eII ec hrffli caLioiri, efficieiricy, oir deirriand
Mainy s-ta-tes aIkready Ihave d e co qp H in IpoIkcies li n itespoir-ise, 'ffie utHi-ty coWd avoid ins w caIp[t.a l
IpIIac e........................Lo da-te, 26 sl..,al..,es aIHbw--for gas decoup ill ir-ig illirwesl..,imeiat, aind Miare flho v ii n g Ibe-tween
airid 17 sta-tes Ihave 6�ectiricity deCOLI�pkiing.13 ��IF, s��Iaire�ho��deirs in raLqpayeirs.
soirrie states, decoupI ill ing [i in u..i a in Ip ir
ClLls"Loimeir lba sill s,WhicIn imeans flha-t u-tlili-ties stHHI have Reform operating expense and capital expenditure
ain incein'tive--to add cus"toinneirs"to flheir sys-teirfl. Su& accounting. WHities lylpicaIHly earin a iteLuirr i cairn ca pi[aIl
po ill cies cain Ibe adJus-ted oin flhe Ibasli )..f to-taII saII Ipe ir'i i tll it IbL.T[ F10"t,0111 qpeira't.iing exIp._eirlditUires,
VOklirrie ra"Uheir tfiair-i Iper c u s--to im e IF VO II Ll ins e. firesu[tiing iiri a lbias toward caIpitaII eve in Whein o--ffieir
SOIlAM IS COL.fld better irT ieeL CU sLoinier ineeds at.IIIweir
L A�so u"[Hi'ties aire oft-.eir-i bairired firoiryi subs"Li'tu"fling
II:::::e ir ft it it T-iain(--e irne&airiis ire s, ilrlCIILjd iir')g P:��) M s, e a it in ill in g cos
adj
,ira'tioina�� expendirk..j ire SOkftbin"for a �pire ain qpe U stirrIe rit, rT--ie&ain[isirrIs airi d sIhaired savi ngs
iron e&air disirns (S&Ms), aire aII I Ibusillincuss imod6I ire-brims aIpIpiroved can 1p ill aII cox 1peindftuire soIIu[Join,even Whein it
flha-t coUId I use(J to encouirage a u"[H ill ty towaird ii Ib it cost.
SL]pIpoir'[ill irig 6Iec-tiri-flcal.Join.
.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
... ... ......
11"eirforirriance incen[ive medhainisms(11")1111\As)are called earin�ngs adjusLirnenL rr'IE)chanisirns ill irl NewYoirlk
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I G U I A 10 1 110 IN S 0 J I I [D I N G C A I Ni I 'A 11(D N 1 140
One s6Iuhori Lo counLeiracL this Ibias woOd aHbw WhiliIIe Lheire imay Ibe iirnpoilairiL shoirL Leirim iroIIes for-these
the Lfflih'ty"to earn a ir'a'te of retuirire ori e r v i c ita-their- sok J.-tior is, '[weaks around the edges abine aire Llirihk6y
t Ih a in i ire Ip II e irri e ir rfling a capi--LaII ill ir ives-timen-t soII floir i........................fo IF .to i r iceiri-t gas utih'ties in'to airi en-fl ire Iy r i e Idausiness
exairnpIIe, a demand Hexibi hifty IpirograirT-i itaLheir than it II, or to enaUIe a uUhLy to c[--ia it L a riew couirse
expanding sys"teirri capac ill-ty. A coir-rpIIe-te cave irt--laW of wi-thout a w6HI d fl iree Ipa-th firom tt"16ir iregLflIatoirs. More
aCCOUir"i"Li ire g "to put opeira"Li ire g and capit,aII cox per ises on fu ire daimeiri--[AI cha ire ge MHI Icy ire eded in t Ih II c ing teirire,
Iev6I foolling......................refeirred to as "LoLex" accou ire h ire g......................c a in for i ire sLa ire c e a LairgeL to Iby whi ch gas wli IH n Ib ire geir Ibe
Mso addiress these cll alHenges. served in a gi.ven area,which MH� require cIleair direc"hon
and vision.arc im s-ta-te IIeadeirshilp.
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MANAG ..........F........... NFRAS..............FRUC.............FURE
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AND S.............F RA N E D ASS E.............F RSK
NatuirM gas u"tHitlies aire cuirirein't]y li nvesting li it I Iirwestirneirit in 'ffie gas d6iveiry systeiron -�'aIHs into a -few
expa ire ding and ire pIIaci ire g gas iin firm sLirucLuire Ibased m I diffe ire inL(,..aLegoiries*
flhe exIpectatioiri o"f co ire tiiir wed gas coirisL.jirylIp'floire for
decades to coir ne, ain expec"Lin tior-i -ffiat is inconslisteir vt Line extensions: Ihe gas distirbL ition sys"t w ',e ir,r) i s
-iing inak.jiraII itfi U�--i e ire Lo decairboinize bL]Hdiings and eHl im inaLe ex�pain&n it
g 9,800 Hes per year t o �bir
G..........IG e iron issioir"is. gas -to Ir irnes and Ibusiriesses fl�--iat IpireviousIIy
did ino-t ice�have seiry .14 Ihe costs o-f most o-f
iese Hine extensions, espec'4Hy for resident"M i ese i nv(:.:I,s1im(,..,:In Ls imay Ib(::� diri vein Iby u Lflki'ty pIIa ininiliing,
cus"Lorneir ireqUesl.,s, or coimIpHaince wirffi sa-fety cus"Loimeirs, aire sociaHi main raise Ipayers,
sta ir idairds, Ibut in MH cases Uhe 30�year deIpireciatioir i bckiing iin cost fbir decades"to coirne, ire gairdIIess
ki feU iron e of ffiese li in vesh rT"i e ir i ts irineans WiaL iryiosL of Uhis of Ian w irnu&i inaWire gas is coinsL..jimed.
inew i in"firas"tirLictu ire wkH ireo-t. con-tJinue -to Ibe Used or
usef'O over a sigin i fica i n't. portior-i o-f i ts H-fe-t ill ime and rili sks 240 Capacity expansion:Whein ire atuiraII gas deimaind
becoimili ng a sLiFainded asset. Continued iinves[ni(.:"IinL in I.inc ire ases, pili Ip6kines,storage f..-idi IH Lies,aind o[tleir
flhis iin'firastirt,.ictuire IbUrde ire s ir'ateIpayeire wi-flh i e f LI t U ire iin-bra stru c tu ire [i ..f.te n qpgraded or b U 11[t inew 11 ir"I
cos-ts o--f t[iese stranded assets. order to safeIly deHveir fli.ie inecessairy quain'tirfles
of inaklire gas. II in INew York State, capaciLy
II in order--to it-riainage I-bese iriisks aind avoid "diggilling exI[_)ainsioin Ihas Ibeein ain oingoing di s c ussion
flhe [ioIIe deqpeir," coirn im issio iris imust Ibe piroac-tive in recein't years,w1rUh ConI..'..'..'..'Aisoin s capacity
in dev6bping cIleair strategies for winding down coinsbraiin[,s in WesL&esLeir County as w6H as
in"I"irastiruc"W ire irivestirn ern t and imainaging cos"ts o"f IHorn IIG ir lid's downs-tate caIpacity coinstiraiin'ts
..... .............. ..........
existing i in"firaStIFLICLU ire., a in d Ip it o Ip o s a II -f'O it t�h e n e w IN S Ip i Ip e II i in e.
3 Replacements: IMucI�i of fl[ inatuiraII yst(Iirn
0
in tbe Unirled States is IpIIainined foir ire pIIaceirTleint
to i ran pirove safety and ireHabflfty irn iredUce
i e-tb nrn IIeakage. Over fline Ias--[decade, 5,600
mHes o-f.in[ie gas dis-tiribu-tion ine-twork Ihave Ibeein
ir gpllace Iper year.
40 Modernization and other upgrades: Gt[�eir
iinves Liar eir-i[s in Uhe gas sys[,e�irrl 1-nodeirinize
in"firaSI',IFUC"ILJ ire wi"Uh autoimation, eir-iaINe inew
iirisIpec'tioin te&iniques, or Ipirovide o-flheir
ire Hi abiHLy and saf(::.::%Iy ein lien ainceirlieinLs offieir [11ain
Fep11aciir ig or adding irnaJoir in"firas fir LICtUre.
Mot,,
I?
TIT
Exhibit :
US Gas Distribution System Expenditures Have Risen Dramatically in Recent Years
LJ S Ilb iii IIII IIII ii o n
1 " 2.2 1
16
14
12
10
8 Ilillillilli�
6
II�IIIII
IIIIIIIIIIIIIIIIIIIII�� � IIIIIIIIIIIIIIIIIIIIIII�����II Illl�l��iiiuiiuii ullulllllllullulllllllllllllll �������������
4
0
1972 1977 1982 1987 1992 1997 2002 2007 2012 2017
............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Sources-A imeikain Gas ss dafl in 201 II'. IM II ainallysis
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can offer ffie oIppoirLuini[y to avoid ffiese Im Require evaluation of non-pipes solutions.
inves-tirneiri-ts, and aCCOLlIn'til ire g "for-[[--iese avoided costs I' a-fllieir flhain cox 1pair,idiir ig IpiIpeH ire e or rei laves"ti ire g
is aire iiiT'iIpoir'ta ire t Ipair-t o--f'de--Leirim'iiir--iiiii-ig cc: s-t effec'flveir iess i ir i in"mire s"tirUCLUire, LstHirties aind commissions§IOL.fld
of eIIeckrifiicaLio ire. Some cases MH Ibe siirnIpIIeir ffian assess opIr)oirl[u ini Lies for 4�in o in pipes Ica LI[ioirls,
ot.Iheirs.......................foir iirisl-.a ire ce, v ii i ii ire II iiine ex"ire irision cos-ts--for jus-t as flhe 6Iec-tirici-ty[i iridusI-.ir-y[ Ibeguire to
ra"tep ayes irs coOd Ibe acN eve d Iby eH ire inating g II iiine piriloirlirtize in ire wires soL-tiioiris over iri uoire exIpeirisive
exLeinslioin aIHowainces aIftogelfieir. Avoiding ffie costs iiri fir ashrucLuire investments. IRegUlaLoirs and uLIHM.Jes
o"f Ii ir"i"fir as"tirL,.]C"IL.I ire reIpIIace iron eiri't Ipirc-)ject.s MH Ib ironore S[IOLIW work toget[ieir"to eirisuire u"Hi Hrties cain off it
coimpIIex, irc Llilrilr I g ir iew Ipirocesses to c6Hect ii v6Iy [ieat IpuimIp in cue ir"i'tives,efficiency iFe"arc firts, deimand
bra ire siLiloin a target giroup of cusLoirneits off gas and irespm ise Ipirogira iron s, or ol[Irieir soI4.koiris aind avoid
ire-tilire §ha ire d a s e i; ita-flheir I-fiairi ire IpIIaciirig 1-.I ieit ri. fuirtfieir iinves"Limeiri-t iin I-be gas i ire"fir as'tirILJCLU ire systeirri.
SIp ii fii itecomime ire datJoins iiiricIWe Cie f6Ho ire g- WhHe flhese OIPIPO irk in i'tli e s imay Ipirove vaLaINe
iiridividuaIHIy, Ibiroadeir Ipirogirairn of eIIecLirfflicaLioin,
Update gas line extension allowances......FyIpicaIHIy,a effl c i e ir icy, and deirriand ires Ire oinse cain u[ti ire at6Iy Ibe
portion of fll ie cost,o--f ire w gas service exteirisim 1 i imos-t effecl.Jve iir i avoidiling gas capacity exIP. eiridi'tu ire
s
paid Iby ffie uWfty(and sociaIHzed air'noing ratepayers), sys[eim wide.
wirffi flhe ire ir-riai ire deir Ipaild Iby flhe cu..jstoimeir or"
dev6Iopeir of t[-ie iru Ipiropeirrya.....Me II iiine exter Isioire Im Establish a process to retir r imore
aIHIowaince......................[Jhe amount ffie ulHk[y can Ir)ay Loward and imoire cusLo iron eits 6Ieclir li fy a ire d gas use
S c t i lis[ies, t MH� �be i�iecessairy"to decomirnissiloin[i[I 0 S"......................is det eirirniir ie d Iby UCs i an d geirieiraIII y i ir
e i ir i
Ibased oin lh Ip ire suimption flriat flie CLIS"t0imeir MHI Ipay secs-tions o-f flhe ina ill iraII gas sys"teirT"i......Mis wii IH
eirioug[i in gas b ii IHs over 30..............60 years to cover ffie require ir iew apIF.)iroacIhe_S to eIrISUire IIairge glrOLIIPS
coos.s I'ba't WE?iFe socia Hized airrio ire g o-flheir ira-teIpayeirs of cu.js-toirneits MH tra ire sitJoire t1heir IbuiNi ire gs Ibe"foirE)
Whein flhe Hirie was extended. a sIha ire d deadHine, aind imay ireqUilire tairge"Led
i ire ceinLives to cusLoimeirs Ibased oire IIoca[ioin on [fi e
W[iHe tt-ie sI�...)ed fic c6ICL.Ja'tioins vairy sta"te'to state, gas ir"ie"twork, aIIo ire g wi-t[i o-flrieir inew SOI411.Jo ire s.
LItHH'ty cus"toirneirs everyWheire face flhe s im itiisk-
[IhaL gaS Use MH d i irT-i i ir i iis[i imuch in it ffiair-1 ffie iJCS S[IOL.fld Ibe Ip iron cLive ii in desilginiling a
kine ext-.einsioire cos"Is cairi Ibe irecove ire d firo 1h Ipairtiicii Ipa'toiry IpiroCE)SS foir I-b ii Ip u it Ip ose® II in oirdeir
cve&airiges imay us-tomeir Who beine-fl-fed firom I-Hie aH o i wanc ....... �h e is wii II "t o re"fl it haire e-t e § d asss, Iegi§I a-Li
II e aIH iratep aye irs oin ffi Ihook fbir ffiese costs. II ire Ib irequired to ire foirim uLliIfties' oUHgaLioiri to seirve
oirdeir--to bo-flh imi'tigal.,e ira'teIr...)aye ir irisk and to u u Ire Iport cus-tomeirs MHIIi ire g t.o �pay ire asoinaINe ra-tes gas
d --f d(:::::1cHining gaS use, irt.iis possflNe ecaitoinizatioir-i poIH cies, )UCs§hoUd it-eevaIUate kine seirvice. Iiri a fUklire o .1
cox Leir isioir i poIkcies and coinsideir eI4irriiiiriaLiiing ffieim. ffia[a sirnaIHI ire uimIbeir of cusLoirneirs deir-flw iding
coo iri-fliim.jed gas seirvice wouW pire('.1k i iret.ii ire irnein't,
o-f it sec-tion of'gas de kveiry i in.fiFas'tir(.,iC'tLJ ire,
iimIposii ir ig Ih ligIh sys[&,n costs dispiroIpoir[ioiriaLe to ffie
bHHI ..Ihey aire Ipaying.
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Create a gas system transition fund.A MH cus[oirneirs bra ire sitioire off,and decorn nilissioirl i Ing
coirnpireheinsive tirw is[rhoin away fir-orn t[le gas cos-ts c)-f i ire-firas-tructu it-e. ...... hese cos-ts aII coime wi-th
distirbutioire sys"ire irn MHI ireSU[t iJ I tra ire sitilloin cos-ts ain the Filisk that the c uw,u t rn e r IIeast aINe to de lip air"t"the
force decisio ire s as to who Ipays these costs. ...... he gas sysLeir n MHI Ibear UheirT"i.
irriagini"tude o--f ths chaIH in cain ain shou11d Ibe
ire duced I ehimill ire a"Lill ire g aIH Ewa ire ces--for extending the o einsuire ep AtaINe MHbca-floire o-f-the costs aind
gas sys Lei m, Ireuirsui ire g noin pipes soIU,Joins iin IpIIace of I beiriefli Ls.....................,IheMffi, eco ire oirT,"i lic, and einviiroinirT,-ie ire LaII.....................,
caIda dirly ex Ire air isio ire s, and estabhshir ig procedures of t[-ie gas"Lira insi-floire, inew ftlindiing sot,.iir-ces wilHH Ibe
to re'dire shaired assets ra-their t[-iair i FqpI�ace theirn, as it ieeded.S-ta"Les cairn es,tabhi s h gas sys"Leim trainsi'doir I
descirili bed above. funds to cIbse this gap, and use va iris ed souirces
to c aplirtahze SUch fi..j ire ds....... lhese 1111CLIde Ireiroceeds
.3 t[i such irneasuires, ts MH� ireima�in* firoirn cairboin piriding �pirogiraims, utJh-ty shaireho��deir Ll't,even wi cos
s[irainded cosl.s of unused assets, oIke iraLlio ire s and coinLirbuLlioins, eIIechrillc irate aye ir cointirbuUoins,aire
irna[l ire,teinaiice costs Of R"iai ire tai ire ire g a gas sys"leim uir.l.fli II geir ieiraII t.axpayeir fuir-idiit i g.
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...................
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31
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7 t`msitior7,11�)OCII<y IMOUnLallin IIInsUk.jte,II airch 2020,acces sed
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13 ......FIhe Girea-t[.Du-tch Gas Fransi'tion,""The Ox-foird Ins"U'W"te mi Weiwei 11 in,11'..3eir-t 11'..3ruirielkireef,and Ulrike GelhirlIng,"Me.ta r
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C nirTiissioneir 11"Zaindolph."11 asL modffied Mairch 26,2020.a lI itfo ir ir-i it 11 neirgy Cor"nimlIssion.A 1pir fl 2020.https.�//ww�2.e-i�neir Cor
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27
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20
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GOLIg[1,"Cali-foirin1la7s Cillies 11 ead the Way."
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