California’s affordable housing crisis could slow the adoption of affordable clean energy upgrades for residents.
What’s happening?
In June, Gov. Gavin Newsom signed a bill to make new housing construction easier, but it also pulls back ambitious local and state building codes, as Canary Media reported. Instead of updating residential codes with new standards that push electrification, the state will bypass its 2028 update.
Starting Oct. 1, municipalities also won’t be able to update their so-called “reach codes,” which have been used by 74 local governments to mandate or encourage all-electric new construction, per Canary Media.
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These rules have been used to speed up the state’s transition to clean energy in the name of climate action goals, including through installing heat pumps and other inexpensive appliances that don’t produce pollution. For example, San Francisco is “racing to get an all-electric requirement for major renovations on the books before the Oct. 1 deadline,” Canary Media wrote.
Assembly Bill No. 130, however, will make this harder, even if there are loopholes that allow for continuing reductions.
“Some jurisdictions are really looking toward their legal experts to interpret [the exception language],” said Madison Vander Klay, senior manager of government affairs at the Building Decarbonization Coalition (BDC), per Canary Media. “[But still, the moratorium] is a big problem for emissions, affordability, and cost savings.”
Why is this important?
Critics argue that this move to clean energy is saving people money and not creating the expensive homes and rents that lawmakers cite as the reason for the bill. Canary Media noted that studies show energy-efficiency codes and all-electric buildings save thousands of dollars in construction costs.
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The BDC said holding off on an update to the code until 2032 may cost residents tens of millions of dollars in utility savings, according to Canary Media. That’s because it’s easy to lower bills via more efficient appliances. These include heat pump water heaters, induction stoves, and solar panels.
Upfront costs can be high, especially for solar panels, but savings over time make the investments worth it. Canary Media said exceptions to the law — such as the ability to make emergency updates for health and safety as well as to meet state pollution reduction goals — open a window for local governments to continue enacting stricter standards.
What’s being done to make housing more affordable?
The California Energy Commission says building codes have saved Golden Staters $100 billion in energy costs over 50 years, per Canary Media. The next code update, which will take effect Jan. 1, is expected to save $4.8 billion over 30 years.
Vander Klay said, per Canary Media, the state legislature could balance the effects of this bill and further support the electrification of homes by incentivizing efficient upgrades. She added that stricter building codes could ensure affordable housing and energy bills: “We should all be able to have access to clean air and clean water and healthy homes.”
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