Building Equity into Building Electrification
By Liana Quiñones
Fossil-fuel combustion associated with residential and commercial buildings accounts for about 29 percent of total carbon emissions. States see this sector as a prime target to reduce their carbon emissions and reach state1 reduction goals. However, blanket policy implementation to reduce emissions from buildings, without consideration of how such goals impact all residents – in other words, without considering equity – risks negatively impacting historically underserved and overburdened communities while cutting these same communities out of the benefits and opportunities of a decarbonized building sector. Equnival is thrilled to work with Northeast States for Coordinated Air Use Management (NESCAUM), state agencies, and environmental justice and community-focused organizations to integrate equity holistically in building electrification policy.
In August 2022, NESCAUM approached us with a question: how can states embed equity into building electrification? Particularly, NESCAUM was interested in how ensure equity in their Multistate MOU to Accelerate the Transition to Zero-emission Residential Buildings. To address this question, Equnival organized a diverse group of environmental justice and community-focused organizations, ranging from emissions to housing focuses, coined the EJAG (Environmental Justice Advisory Group).
NESCAUM provides technical and policy support to state air and climate officials and creates model regulatory structures for states to implement. Read more about NESCAUM.
NEEP Summit
In June, the NESCAUM EJAG hosted an offshoot meeting at the Northeast Energy Efficiency Partnerships (NEEP) Summit to bring together northeastern environmental justice and community leaders and state policymakers in one room to address this question of shaping equitable building electrification policies.
The EJAG enjoys dinner together in downtown New Haven after their first in-person meeting in February.
Building on EJAG conversations to date and considering relevant state needs, the group has thus far identified the following priorities:
Affordability and Funding. Ensure all residents can participate in the transition to zero-emission buildings without the financial burden falling disproportionately on low- and moderate-income households. To circumvent this burden, enact diverse policies on rate design, gas transition, and fund repurposing.
Expanding Community Engagement and Partnership. The discussion emphasized the importance of deeper community involvement in both the creation and implementation of policies.
Housing Nexus. There is a critical intersection between decarbonization policies and broader housing issues, including energy efficiency standards, tenant protections, and the impacts on housing values and enforcement of standards.
Creating a New Economy While Affordably Transitioning Prior Economy. To sustainably transition away from gas infrastructure, it is necessary to efficiently repurpose existing funds, scale electrification efforts, and secure both funding and local political support.
Whole Home Policy Design. A comprehensive approach, addressing legacy issues like mold and moisture alongside efficiency upgrades, is essential to prepare homes for electrification.
The EJAG also discussed expanding access to electrification policies and programs by reevaluating the definition of low and moderate income (LMI) households. EJAG EJAG conversations taught us that existing LMI definitions LMI exclude many middle-income households for whom electrification costs are prohibitive, reducing the number of homes that will take on upgrades to electrify. New research from New Jersey even shows that there is a smaller but existing percentage of higher income communities that also struggle with energy cost burden. Leveraging the influx of new financing is a way to ensure that moderate income households do not take on more debt to electrify, supporting state goals to reduce emissions while protecting household incomes. However, the conversation must also expand beyond income because communities of color are disproportionately impacted by pollution, regardless of income.
Politically, the challenge of electrification lies in creating a new economy while affordably transitioning from the old one. Efficient repurposing of existing funding is essential as current investments in gas infrastructure are not sustainable beyond the next decade. A broader, more ambitious approach is necessary to address these issues effectively, with an emphasis on scaling electrification efforts. Both funding and local political support are critical for successful implementation of building decarbonization initiatives.
Implementing these key discussion points moving forward, NESCAUM, EJAG, and states are working on a new Model Rule on HVAC and Water Heaters, as well as an Action Plan for the Multistate MOU to Accelerate the Transition to Zero-Emission Residential Buildings that centers equity and justice in building electrification. Read more about our work in environmental equity and justice here.
