In May 2022, the Los Angeles City Council voted to ban natural gas in new residential and commercial buildings. More than 50 California cities have enacted similar rules banning or limiting natural gas consumption. Specific details about the gas ban were not published until September, but LA plans for the law to take effect by January 2023.
The Los Angeles natural gas ban requires that new construction (residential and commercial) be designed as zero-emissions buildings. This means that they cannot use combustion appliances for purposes such as cooking, space heating and water heating. Electrification can reduce the construction sector's carbon footprint, but energy efficiency is key to avoiding excessive energy bills. This is especially true in states like New York and California, where kilowatt-hour prices are much higher than the US average.
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Decarbonization Plans in LA: A Quick Overview
The natural gas ban in Los Angeles was led by Councilman Nithya Raman. According to the motion presented, buildings are responsible for 43% of greenhouse gas emissions in Los Angeles, surpassing all other sectors of the local economy. For comparison, buildings are responsible for 30% of national emissions and just 25% of California's statewide emissions. The motion also highlights some advantages of all-electric buildings compared to buildings that use gas and electricity:
- Better indoor air quality, as on-site combustion is eliminated.
- Lower construction costs (when properly designed).
- Fewer safety risks, especially during earthquakes.
A detailed ordinance or regulatory framework has not yet been published, but the aim is to enact the gas ban by January 1, 2023, or sooner. Completely eliminating natural gas can be very difficult in some types of buildings, including restaurants and other occupancies that rely on commercial kitchens. A gas ban in Latin America could have different requirements by building type, including a longer phase-out schedule for occupancies that are highly dependent on natural gas.
California has a statewide goal of achieving 100% clean electricity by 2045, and Los Angeles has a more ambitious goal of 100% clean electricity by 2035. The California Energy Commission has also created a $60 million fund to help to electrify the affordable housing sector, and they passed a new building code that establishes electric heat pumps as a basic requirement starting in 2023. California plans to install 6 million heat pumps in new construction and existing buildings by 2030 .
Avoiding excessive energy bills in all-electric buildings: a key challenge
Although natural gas is a fossil fuel, its emissions per unit of energy are lower than those of coal and oil. Natural gas has been an economical energy source for heating appliances across the US and phasing it out of the construction sector requires careful planning to be viable. Professional engineering services are also key: all-electric building systems must provide the same reliability as traditional designs with mixed energy sources.
California has some of the highest electricity prices in the country. According to the latest data from the Energy Information Administration, the average price of electricity for U.S. homeowners was 15.42 cents/kWh in June 2021, but the average rate rises to 28.98 cents/kWh in June 2021. California case.
To avoid excessive energy bills, all-electric buildings must have an energy-efficient design.
- Having a well-insulated and airtight building envelope is essential as it reduces heat loss during the winter months.
- Electric resistance heaters should be avoided, especially with high electricity prices in California.
- A heat pump uses 2 to 6 times less electricity than an equivalent resistance heater (depending on its type and rated efficiency).
Heat pumps can be supplemented with solar power and energy storage , to minimize consumption of expensive electricity from the grid. Thanks to the Inflation Reduction Act, both solar panels and batteries now qualify for a 30% Investment Tax Credit. The law also introduced tax credits and rebates for energy efficiency measures in homes, and heat pumps are eligible for both benefits.
California will soon introduce Net Energy Metering 3.0, which greatly reduces energy bill credits given to solar owners for excess production. Instead of being exported to the grid, this electricity can be stored locally in a battery or used by a heat pump water heater with an insulated storage tank. Both measures take advantage of surplus solar generation, reducing consumption at other times of the day, when homes and businesses depend on the grid.
