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The new climate politics are all about affordability.

During the August recess, while members of Congress were back home facing their constituents, climate and environmental groups went on the offensive, sending a blitz of ads targeting vulnerable Republicans in their districts. The message was specific, straightforward, and had nothing to do with the warming planet.
“Check your electric bill lately? Rep. Mark Amodei just voted for it to go up,” declared a billboard in Reno, Nevada, sponsored by the advocacy group Climate Power.
“They promised to bring down prices, but instead our congressman, Derrick Van Orden, just voted to make our monthly bills go up,” a YouTube ad told viewers in Wisconsin’s 3rd district. “It removes clean energy from the electric grid, creating a massive rate hike on electricity,” the voiceover says, while the words “VAN ORDEN’S PLAN: ELECTRICITY RATE HIKE” flash on screen. The ad, paid for by Climate Power, the League of Conservation Voters, and House Majority Forward, a progressive campaign group, was shown more than a million times from August 13 to 27, according to Google’s ad transparency center.
Both were part of a larger, $12 million campaign the groups launched over the recess in collaboration with organizations including EDF Action and Climate Emergency Advocates. Similar billboards and digital ads targeted Republicans in more than a dozen other districts in Arizona, California, Colorado, Iowa, Michigan, New York, Ohio, Pennsylvania, and Texas. There were also TV spots, partnerships with Instagram influencers, bus stop posters, and in-person rallies outside district offices — all blaming Republicans in Congress for the increasing cost of food, healthcare, and energy.

As others have observed, including Heatmap’s Matthew Zeitlin back in March, rising utility rates and the broader cost of living crisis are becoming a political liability for Republicans and President Trump. Clean energy advocates are attempting to capitalize on that, trying to get Americans to connect the dots between their mounting electricity bills and their representatives in Congress who voted to cut support for renewable energy.
Some of this is run-of-the-mill politicking, but it’s not only that. It also represents a strategic shift in how the climate movement talks about the energy transition.
It’s not new for green groups to make the argument that renewable energy can save people money. Relying on “free” wind and sun rather than fuels that are subject to price volatility has always been part of the sell, and the plummeting cost of solar panels and wind turbines have only made that pitch more compelling.
But it is new for the affordability argument to come first — above job creation, economic development, reducing pollution, and, of course, tackling climate change.
For most of the past four years, the climate movement has gone all in on trying to build an association in the American mind between the transition to clean energy and jobs. “When I think of climate change, I think of jobs,” then-candidate Joe Biden said during one of his 2020 campaign speeches.
It made sense at the time, Daniel Aldana Cohen, a sociologist at the University of California, Berkeley, told me. Just two years earlier, the Sunrise Movement had emerged as a political force with a headline-grabbing rally in Nancy Pelosi’s office demanding “green jobs for all.” The group was joined by then-newly elected Representative Alexandria Ocasio-Cortez, who soon introduced her framework for a Green New Deal that would offer a “just transition” for fossil fuel workers, ensuring them a place in the new clean energy economy.
The fossil fuel industry had seeded divisions between labor and environmental groups for decades by arguing that regulations kill jobs, and Democrats would have to upend that narrative if they wanted to make progress on climate. But the rationale was also more pressing: Unemployment was skyrocketing due to the COVID-19 pandemic, and whoever won the presidency would be responsible for rebuilding the U.S. workforce.
Fast forward to the end of Biden’s first year in office, however, and the unemployment rate had snapped back to pre-pandemic levels. Meanwhile, inflation was rising fast. Even though the Democrats managed to name their climate bill the “Inflation Reduction Act,” the administration and the climate movement continued talking about it in terms of jobs, jobs, jobs.
Cohen co-directs the Climate and Community Institute, a progressive think-tank founded in 2020, and admitted that “from the very start, we would just model every policy with jobs numbers,” partly because modeling the effects of policies on cost of living was a lot more complicated. Now he sees two issues with that approach. For one, it was always going to take time for new manufacturing jobs to materialize — much longer than an election cycle. For another, when unemployment is low, “everybody experiences inflation, but extremely few people experience a good new green job,” Cohen said.
During a recent panel hosted by the Institute for Policy Studies, Ben Beachy, who was a special assistant to Biden for climate policy, expressed some regret about the jobs push. “It wasn't addressing one of the biggest economic concerns of most people at that point, which was the rent is too damn high,” he said. But Beachy also defended the strategy, noting that all of the policies addressing cost of living in Biden’s big climate bill, like money for housing, public transit, and childcare, had been stripped out to appease West Virginia Democrat Joe Manchin. “So we were left without a strong policy leg to stand on to say, this is going to lower your costs.”
When the moderator asked what message Beachy thinks climate candidates should run on today, Beachy replied, “affordability, affordability, affordability.”
Jesse Lee, a senior advisor at Climate Power who also worked as a senior communications advisor in the Biden White House, echoed Beachy’s account of what went wrong post-IRA. The cost of living crisis makes it almost impossible to talk about anything else now, he told me. “If you don't start off talking about that, you’ve lost people before you’ve even begun,” he said.
Average U.S. electricity rates jumped 10% in just the year from 2021 to 2022, and have continued to rise faster than inflation. All evidence suggests the trend will continue. Utilities have already requested or received approval for approximately $29 billion in rate increases this year, according to the nonprofit PowerLines, compared to roughly $12 billion by this time last year. And these increases likely don’t reflect the expected costs associated with ending tax credits for wind and solar, hobbling wind and solar development, and keeping aging, expensive coal plants online.
In mid-July, Climate Power issued a strategy document advising state and local elected officials how to talk about clean energy based on the group’s polling. A post-election poll found that “more than half of Americans (51%) say the main goal of US energy policies should be to lower energy prices,” and that 85% “believe policymakers should do more to lower energy costs.” A more recent poll found that telling voters that “cutting clean energy means America produces less energy overall, and that means families will pay even more to keep the lights on,” was the most persuasive among a variety of arguments for clean energy.
This tracks with our own Heatmap Pro opinion polling, which found that the top perceived benefit of renewables in the U.S. is “lower utility bills” — though while 75% of Democrats believe that argument, only 56% of Republicans do. An affordability frame also aligns with academic research on clean energy communication strategies, which has found that emphasizing cost savings is a more effective and enduring message than job creation, economic development, or climate change mitigation.
The pivot to affordability isn’t just apparent in district-level campaigns to hold Republicans accountable. Almost every press release I’ve received from the climate group Evergreen Action this month has mentioned “soaring power bills” or “Trump’s energy price hike” in reference to various actions the administration has taken to hamstring renewables. Even clean energy groups, which at first attempted to co-opt Trump’s “energy dominance” frame, can no longer parrot it with a straight face. After Trump issued a stop work order on Orsted’s offshore Revolution Wind project, which is 80% built, the American Clean Power Association accused the administration of “raising alarms about rising energy prices while blocking new supply from reaching the grid.”
Several people I spoke to for this story pointed to the example of Mikie Sherill, the Democrat running for governor in New Jersey, who last week vowed to freeze utility rates for a year if elected. She immediately followed that statement with a promise to “massively expand cheaper, cleaner power generation,” including solar and batteries.
Dan Crawford, the senior vice president of Echo Communications Advisors, a climate-focused strategy firm, declared in a recent newsletter that Democrats should “become the party of cheap electricity.” He mused that we may be at an inflection point “where the old politics of clean-vs.-polluting makes way for a new debate of cheap-vs.-expensive.”
Debate is probably too tame a term — the claim to affordability is becoming a full-on messaging war. Last week, President Trump took to social media to declare that states that get power from wind and solar “are seeing RECORD BREAKING INCREASES IN ELECTRICITY AND ENERGY COSTS,” — a claim that has no basis in reality. The Trump administration is leaning heavily on affordability arguments to justify keeping coal plants open. In defense of canceling Revolution Wind, Interior Secretary Doug Burgum told Fox News that “this is part of our drive to make sure we’ve got affordable, reliable energy for every American … These are the highest electric prices in the country coming off of these projects.” On Thursday, Energy Secretary Chris Wright posted a news story about his agency rescinding a loan for an offshore wind transmission project, writing that “taxpayers will no longer foot the bill for projects that raise electricity prices and ultimately don't work.”
Clean energy proponents aren’t just going up against Trump — the fossil fuel industry has leaned on affordability as a rhetorical strategy for a long time, Joshua Lappen, a postdoctoral fellow at the University of Notre Dame studying the energy transition, told me. Lappen, who lives in California, said cost has been at the forefront of conflicts over climate policy in the state for a while. At the moment, it’s driving a fight over oil refinery closures that threaten to drive up gas prices even more. “I took a trip over the weekend and drove through the Central Valley,” Lappen told me, “and there are placards zip-tied to every gas pump at Chevron stations that are highlighting that state climate policy is increasing the cost of gas.”
I asked Lee, of Climate Power, how the climate movement could make a convincing case when clean energy has become so politically charged. He’s not worried about that right now. “I don’t think we necessarily need to win a debate about what’s cheaper,” he said. “All we have to do is say, Hey, we're in favor of more energy, including wind and solar, and it's nuts, nuts to be taking wind and solar and batteries off the table when we have an energy crisis and when utility rates have gone up 10%.”
That may work for now, at least at the national level. Americans tend to blame whoever is in office for the economic pains of the moment, even though presidents have little influence on prices at the pump and it can take years for policy changes to make their way into utility rates.
But there’s a difference between defensively blaming rising energy costs on the administration’s efforts to block renewables, and making a positive case for the energy transition on the same grounds. While there is an argument for the latter, it’s a lot harder to convey.
The factors pushing up energy prices, such as necessary grid modernization and disaster-related costs, likely aren’t going away, whether or not we build offshore wind farms. Meanwhile, the savings that large-scale wind and solar projects offer won’t be experienced as a reduction in rates — they won’t be experienced at all because they’re measured against a counterfactual world where renewables don’t get built. That’s a lot trickier to communicate in a pithy campaign. People may end up blaming the wind farms either way.
This dilemma is a hallmark of the so-called “mid-transition,” Lappen told me. The term was coined by his advisor, the energy engineer and sociologist Emily Grubert, and Sara Hastings-Simon, a public policy professor at the University of Calgary. The two argue that the mid-transition is a period where fossil fuel systems persist alongside the growing clean energy sector.
“Comparisons of the new system to the old system are likely to rest on experience of a world less affected by climate change, such that concerns about lower reliability, higher costs, and other challenges might be perceived as inherent to zero-carbon systems, versus energy systems facing consequences of climate change and long-term underinvestment,” they write.
To Cohen, advocates need to go a lot further than rhetoric to link clean energy with affordability. “We need to rebuild the brand and then rebuild the investment priorities of climate action so that working class communities see and literally touch direct, tangible benefits in their life,” he said. He described a “green economic populism” with much more public investment in helping renters access green technologies that will lower their bills, for example, or in fixing up homes that have deferred maintenance so that they can eventually make energy efficiency improvements.
It’s not about abandoning industrial policy or research and development, Cohen told me, but rather about a shift in emphasis. He pointed to Sherill’s approach. “She's not just saying, oh, clean energy will automatically lower bills if you just unleash it. She's like, I'm going to assertively use the government to guarantee a price freeze, and then I’m going to backfill that with clean energy policies to bring down prices over time.”
To be fair, the IRA did contain policies that would have produced more tangible benefits. The $7 billion Solar for All program would have delivered the benefits of residential solar — i.e. energy bill savings — to low-income households all over the country. The remainder of the Greenhouse Gas Reduction Fund, of which Solar for All was a part, was set to make a range of other green home upgrades more accessible to the working class, and the Green and Resilient Retrofit Program would have done the same for low-income housing developments and senior living centers. Electric school bus grants and urban tree-planting programs would have brought cleaner, cooler air to communities.
These were big, ambitious programs that were never going to produce results in the span of two years, and now the Trump administration has made every effort to ensure they never do. Whether they would have paid political dividends eventually, we’ll never know. But a successful energy transition may depend on giving it another shot.
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Plus more insights from Heatmap’s latest event Washington, D.C.
At Heatmap’s event, “Supercharging the Grid,” two members of the House of Representatives — a California Democrat and a Colorado Republican — talked about their shared political fight to loosen implementation of the National Environmental Policy Act to accelerate energy deployment.
Representatives Gabe Evans and Scott Peters spoke with Heatmap’s Robinson Meyer at the Washington, D.C., gathering about how permitting reform is faring in Congress.
“The game in the 1970s was to stop things, but if you’re a climate activist now, the game is to build things,” said Peters, who worked as an environmental lawyer for many years. “My proposal is, get out of the way of everything and we win. Renewables win. And NEPA is a big delay.”
NEPA requires that the federal government review the environmental implications of its actions before finalizing them, permitting decisions included. The 50-year-old environmental law has already undergone several rounds of reform, including efforts under both Presidents Biden and Trump to remove redundancies and reduce the size and scope of environmental analyses conducted under the law. But bottlenecks remain — completing the highest level of review under the law still takes four-and-a-half years, on average. Just before Thanksgiving, the House Committee on Natural Resources advanced the SPEED Act, which aims to ease that congestion by creating shortcuts for environmental reviews, limiting judicial review of the final assessments, and preventing current and future presidents from arbitrarily rescinding permits, subject to certain exceptions.
Evans framed the problem in terms of keeping up with countries like China on building energy infrastructure. “I’ve seen how other parts of the world produce energy, produce other things,” said Evans. “We build things cleaner and more responsibly here than really anywhere else on the planet.”
Both representatives agreed that the SPEED Act on its own wouldn’t solve all the United States’ energy issues. Peters hinted at other permitting legislation in the works.
“We want to take that SPEED Act on the NEPA reform and marry it with specific energy reforms, including transmission,” said Peters.
Next, Neil Chatterjee, a former Commissioner of the Federal Energy Regulatory Commission, explained to Rob another regulatory change that could affect the pace of energy infrastructure buildout: a directive from the Department of Energy to FERC to come up with better ways of connecting large new sources of electricity demand — i.e. data centers — to the grid.
“This issue is all about data centers and AI, but it goes beyond data centers and AI,” said Chatterjee. “It deals with all of the pressures that we are seeing in terms of demand from the grid from cloud computing and quantum computing, streaming services, crypto and Bitcoin mining, reshoring of manufacturing, vehicle electrification, building electrification, semiconductor manufacturing.”
Chatterjee argued that navigating load growth to support AI data centers should be a bipartisan issue. He expressed hope that AI could help bridge the partisan divide.
“We have become mired in this politics of, if you’re for fossil fuels, you are of the political right. If you’re for clean energy and climate solutions, you’re the political left,” he said. “I think AI is going to be the thing that busts us out of it.”
Updating and upgrading the grid to accommodate data centers has grown more urgent in the face of drastically rising electricity demand projections.
Marsden Hanna, Google’s head of energy and dust policy, told Heatmap’s Jillian Goodman that the company is eyeing transmission technology to connect its own data centers to the grid faster.
“We looked at advanced transition technologies, high performance conductors,” said Hanna. “We see that really as just an incredibly rapid, no-brainer opportunity.”
Advanced transmission technologies, otherwise known as ATTs, could help expand the existing grid’s capacity, freeing up space for some of the load growth that economy-wide electrification and data centers would require. Building new transmission lines, however, requires permits — the central issue that panelists kept returning to throughout the event.
Devin Hartman, director of energy and environmental policy at the R Street Institute, told Jillian that investors are nervous that already-approved permits could be revoked — something the solar industry has struggled with under the Trump administration.
“Half the battle now is not just getting the permits on time and getting projects to break ground,” said Hartman. “It’s also permitting permanence.”
This event was made possible by the American Council on Renewable Energy’s Macro Grid Initiative.
On gas turbine backorders, Europe’s not-so-green deal, and Iranian cloud seeding
Current conditions: Up to 10 inches of rain in the Cascades threatens mudslides, particularly in areas where wildfires denuded the landscape of the trees whose roots once held soil in place • South Africa has issued extreme fire warnings for Northern Cape, Western Cape, and Eastern Cape • Still roiling from last week’s failed attempt at a military coup, Benin’s capital of Cotonou is in the midst of a streak of days with temperatures over 90 degrees Fahrenheit and no end in sight.

Exxon Mobil Corp. plans to cut planned spending on low-carbon projects by a third, joining much of the rest of its industry in refocusing on fossil fuels. The nation’s largest oil producer said it would increase its earnings and cash flow by $5 billion by 2030. The company projected earnings to grow by 13% each year without any increase in capital spending. But the upstream division, which includes exploration and production, is expected to bring in $14 billion in earnings growth compared to 2024. The key projects The Wall Street Journal listed in the Permian Basin, Guyana and at liquified natural gas sites would total $4 billion in earnings growth alone over the next five years. The announcement came a day before the Department of the Interior auctioned off $279 million of leases across 80 million acres of federal waters in the Gulf of Mexico.
Speaking of oil and water, early Wednesday U.S. armed forces seized an oil tanker off the coast of Venezuela in what The New York Times called “a dramatic escalation in President Trump’s pressure campaign against Nicolás Maduro.” When asked what would become of the vessel's oil, Trump said at the White House, “Well, we keep it, I guess.”
The Federal Reserve slashed its key benchmark interest rate for the third time this year. The 0.25 percentage point cut was meant to calibrate the borrowing costs to stay within a range between 3.5% and 3.75%. The 9-3 vote by the central bank’s board of governors amounted to what Wall Street calls a hawkish cut, a move to prop up a cooling labor market while signaling strong concerns about future downward adjustments that’s considered so rare CNBC previously questioned whether it could be real. But it’s good news for clean energy. As Heatmap’s Matthew Zeitlin wrote after the September rate cut, lower borrowing costs “may provide some relief to renewables developers and investors, who are especially sensitive to financing costs.” But it likely isn’t enough to wipe out the effects of Trump’s tariffs and tax credit phaseouts.
GE Vernova plans to increase its capacity to manufacture gas turbines by 20 gigawatts once assembly line expansions are completed in the middle of next year. But in a presentation to investors this week, the company said it’s already sold out of new gas turbines all the way through 2028, and has less than 10 gigawatts of equipment left to sell for 2029. It’s no wonder supersonic jet startups, as I wrote about in yesterday’s newsletter, are now eyeing a near-term windfall by getting into the gas turbine business.
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The European Union will free more than 80% of the companies from environmental reporting rules under a deal struck this week. The agreement between EU institutions marks what Politico Europe called a “major legislative victory” for European Commission President Ursula von der Leyen, who has sought to make the bloc more economically self-sufficient by cutting red tape for business in her second term in office. The rollback is also a win for Trump, whose administration heavily criticized the EU’s green rules. It’s also a victory for the U.S. president’s far-right allies in Europe. The deal fractured the coalition that got the German politician reelected to the EU’s top job, forcing her center-right faction to team up with the far right to win enough votes for secure victory.
Ravaged by drought, Iran is carrying out cloud-seeding operations in a bid to increase rainfall amid what the Financial Times clocked as “the worst water crisis in six decades.” On Tuesday, Abbas Aliabadi, the energy minister, said the country had begun a fresh round of injecting crystals into clouds using planes, drones, and ground-based launchers. The country has even started developing drones specifically tailored to cloud seeding.
The effort comes just weeks after the Islamic Republic announced that it “no longer has a choice” but to move its capital city as ongoing strain on water supplies and land causes Tehran to sink by nearly one foot per year. As I wrote in this newsletter, Iranian President Masoud Pezeshkian called the situation a “catastrophe” and “a dark future.”
The end of suburban kids whiffing diesel exhaust in the back of stuffy, rumbling old yellow school buses is nigh. The battery-powered bus startup Highland Electric Fleets just raised $150 million in an equity round from Aiga Capital Partners to deploy its fleets of buses and trucks across the U.S., Axios reported. In a press release, the company said its vehicles would hit the streets by next year.
Cities across the state are adopting building codes that heavily incentivize homeowners to make the switch.
A quiet revolution in California’s building codes could turn many of the state’s summer-only air conditioners into all-season heat pumps.
Over the past few months, 12 California cities have adopted rules that strongly incentivize homeowners who are installing central air conditioning or replacing broken AC systems to get energy-efficient heat pumps that provide both heating and cooling. Households with separate natural gas or propane furnaces will be allowed to retain and use them, but the rules require that the heat pump becomes the primary heating system, with the furnace providing backup heat only on especially cold days, reducing fossil fuel use.
These “AC2HP” rules, as proponents call them, were included in a routine update of California building codes in 2024. Rather than make it mandatory, regulators put the heat pump rule in a package of “stretch codes” that cities could adopt as they saw fit. Moreno Valley, a city in Riverside County, east of Los Angeles, was the first to pass an ordinance adopting the AC2HP code back in August. A steady stream of cities have followed, with Los Gatos and Portola Valley joining the party just last week. Dylan Plummer, a campaign advisor for Sierra Club's Building Electrification Campaign, expects more will follow in the months to come — “conversations are moving” in Los Angeles and Sacramento, as well, he told me.
“This is a consumer protection and climate policy in one,” he said. As California gets hotter, more households in the state are getting air conditioners for the first time. “Every time a household installs a one-way AC unit, it’s a missed opportunity to install a heat pump and seamlessly equip homes with zero-emission heating.”
This policy domino effect is not unlike what happened in California after the city of Berkeley passed an ordinance in 2019 that would have prohibited new buildings from installing natural gas. The Sierra Club and other environmental groups helped lead more than 70 cities to follow in Berkeley’s footsteps. Ultimately, a federal court overturned Berkeley’s ordinance, finding that it violated a law giving the federal government authority over appliance energy usage. Many of the other cities have since suspended their gas bans.
Since then, however, California has adopted state-wide energy codes that strongly encourage new buildings to be all-electric anyway. In 2023, more than 70% of requests for service lines from developers to Pacific Gas & Electric, the biggest utility in the state, were for new all-electric buildings. The AC2HP codes tackle the other half of the equation — decarbonizing existing buildings.
A coalition of environmental groups including the Sierra Club, Earthjustice, and the Building Decarbonization Coalition are working to seed AC2HP rules throughout the state, although it may not be easy as cost-of-living concerns grow more politically charged.
Even in some of the cities that have adopted the code, members of the public worried about the expense. In Moreno Valley, for instance, a comparatively low-income community, six out of the seven locals who spoke on the measure at a meeting in August urged elected officials to reject it, and not just because of cost — some were also skeptical of the technology.
In Glendale, a suburb of Los Angeles which has more socioeconomic diversity, all four commenters who spoke also urged the council to reject the measure. In addition to cost concerns, they questioned why the city would rush to do something like this when the state didn’t make it mandatory, arguing that the council should have held a full public hearing on the change.
In Menlo Park, on the other hand, which is a wealthy Silicon Valley suburb, all five speakers were in support of the measure, although each of them was affiliated with an environmental group.
Heat pumps are more expensive than air conditioners by a couple of thousands of dollars, depending on the model. With state and local incentives, the upfront cost can often be comparable. When you take into account the fact that you’re moving from using two appliances for heating and cooling to one, the equipment tends to be cheaper in the long run.
The impacts of heat pumps on energy bills are more complicated. Heat pumps are almost always cheaper to operate in the winter than furnaces that use propane or electric resistance. Compared to natural gas heating, though, it mostly depends on the relative cost of gas versus electricity. Low-income customers in California have access to lower electricity rates that make heat pumps more likely to pencil out. The state also recently implemented a new electricity rate scheme that will see utilities charge customers higher fixed fees and lower rates per kilowatt-hour of electricity used, which may also help heat pump economics.
Matthew Vespa, an senior attorney at Earthjustice described the AC2HP policy as a way to help customers “hedge against gas rates going up,” noting that gas prices are likely to rise as the U.S. exports more of the fuel as liquified natural gas, and also as gas companies lose customers. “It’s really a small incremental cost to getting an AC replaced with a lot of potential benefits.”
The AC2HP idea dates back to a 2021 Twitter thread by Nate Adams, a heat pump installer who goes by the handle “Nate the House Whisperer.” Adams proposed that the federal government should pay manufacturers to stop producing air conditioners and only produce heat pumps. Central heat pumps are exactly the same as air conditioners, except they provide heating in addition to cooling thanks to “a few valves or ~$100-300 in parts,” Adam said at the time.
The problem is, most homeowners and installers are either unfamiliar with the technology or skeptical of it. While heat pumps have been around for decades and are widespread in other parts of the world, especially in Asia, they have been slower to take off in the United States. One reason is the common misconception that they don’t work as well as furnaces for heating. Part of the issue is also that furnaces themselves are less expensive, so heat pumps are a tougher sell in the moment when someone’s furnace has broken down. Adams’ policy pitch would have given people no choice but to start installing heat pumps — even if they didn’t use them for heating — getting a key decarbonization technology into homes faster than any rebate or consumer incentive could, and getting the market better acquainted with the tech.
The idea gained traction quickly. An energy efficiency research and advocacy organization called CLASP published a series of reports looking at the potential cost and benefits, and a manufacturer-focused heat pump tax credit even made its way into a bill proposal from Senator Amy Klobuchar in the runup to the 2022 Inflation Reduction Act. While rules that target California homeowners obviously won’t have the nation-wide effect that Adams’ would have, they still have the potential to send a strong market signal, considering California is the fifth largest economy in the world.
The AC2HP codes, which start going into effect next year, will help smooth the road to another set of building electrification rules that will apply in some parts of the state beginning in 2029. At that point, households in the Bay Area will be subject to new air quality standards that require all newly installed heating equipment to be zero-emissions — in other words, if a family’s furnace breaks down, they’ll have to replace it with a heat pump. State regulators are developing similar standards that would apply statewide starting in 2035. The AC2HP rule ensures that if that same family’s air conditioner breaks between now and then, they won’t end up with a new air conditioner, which would eventually become redundant.
The rule is just one of a bunch of new tools cities are using to decarbonize existing buildings. San Francisco, for example, adopted an even stricter building code in September that requires full, whole-home electrification when a building is undergoing a major renovation that includes upgrades to its mechanical systems. Many cities are also adopting an “electrical readiness” code that requires building owners to upgrade their electrical panels and add wiring for electric vehicle charging and induction stoves when they make additions or alterations to an existing building.
To be clear, homeowners in cities with AC2HP laws will not be forced to buy heat pumps. The code permits the installation of an air conditioner, but requires that it be supplemented with efficiency upgrades such as insulating air ducts and attics — which may ultimately be more costly than the heat pump route.
“I don’t think most people understand that these units exist, and they’re kind of plug and play with the AC,” said Vespa.