State and local governments are increasingly adopting electrification mandates that call for commercial building owners to reduce their greenhouse gas emission by banning the use of natural gas as heating and hot water source.

Issue

The debate on greenhouse gases and climate change is occurring at every level of government. Many state and local governments have initiated mandates that call for commercial building owners to gradually reduce their greenhouse gas emissions and eventually become net-zero by certain dates as part of efforts to address climate change. These mandates have included the electrification of commercial buildings by banning the use of natural gas as a heating and hot water source.

A parallel concern is that these efforts to mandate electrification and increase a building’s energy consumption are not consistent and aligned with energy efficiency standards. Building owners may be unable to implement building electrification mandates and, at the same time, comply with energy efficiency standards. The increased demand for electricity will also require the generation of additional power over a sustainable and reliable transmission system.

The debate on building electrification mandates will continue at the state and local levels. Even if a state, such as Arizona, prohibits local bans on the use of natural gas, municipalities may turn to regulatory processes and building codes that compel building electrification as the only viable option for compliance.

Talking Points

• Electrification mandates should clearly differentiate between commercial building types over a one-size-fits-all approach for emission reductions.
• The adoption of infeasible electrification mandates can hinder economic development and the creation of additional housing.
• Electrification mandates should be aligned with energy efficiency standards and policies.
• The sustainable generation and transmission of electricity must be taken into consideration before adopting building electrification mandates.

Resources

State Governments Adopt Electrification Mandates (NAIOP Blog)

Colorado Energy Benchmarking Statute a Poor Solution (NAIOP Blog)

How Natural Gas Bans Hurts Communities and Customers (American Gas Association)

Arizona’s HB 2686 – Prohibits Local Bans on Natural Gas

Local Natural Gas and Building Monitoring by Quorum (Population over 500,000)