While gas stoves have received a lot of attention because of their impacts on indoor air quality, they only account for 1.6% of residential natural gas consumption. The biggest residential gas hogs are space heating and water heating, accounting for 68% and 30% of gas usage, respectively. In fact, Utah has the highest percentage of homes heated primarily with natural gas of any state in the country (77% in 2021). A major challenge with all of that gas usage is that our natural gas extraction and distribution system has major leaks. Methane emissions are a potent greenhouse gas, being 83 times more potent than carbon dioxide over 20 years. A recent study of the Uinta Basin found that 6-8% of the gas produced is wasted through leaks in the gas production infrastructure, some of the highest observed leakage rates anywhere in the world. In addition to emissions from using gas in homes, upstream gas leakage from the gas used for residential space and water heating emits the same amount of pollution as nearly 1.5 million cars! The bottom line is we have excellent, cost-competitive, allelectric options that don’t pollute indoor air and are a critical climate solution. All-Electric New Homes are CostCompetitive with Homes Built to Use Gas Air quality is a constant issue on our minds, and so is home affordability. Eliminating gas combustion from our homes and buildings is an important part of the puzzle to both reduce local air emissions and save homeowners money. However, most Utahns don’t know what all-electric technologies are, or that they are affordable and available today. New reports show that making the switch to all-electric technologies is a win for our wallets and health. A recent study from E3, “The Economics of All-Electric New Construction in Utah,” compared homes built with appliances that only use electricity to homes built using both electricity and gas. The study found that efficient all-electric housing is more affordable over a 15-year lifecycle and that Utahns can build and operate an all-electric home more affordably than a home using gas appliances. Another recent study by the Southwest Energy Efficiency Project found that homes in our region built with highly efficient electric heat pumps will reduce their annual heating cost by 30%, compared with gas while reducing climate emissions by 60%. In short, electrifying our homes is the best option for our pocketbooks and our health. Our entire community benefits when new homes are built to be energy efficient and all-electric. Inflation Reduction Act The Inflation Reduction Act has allocated over $101 million for home energy efficiency and electrification in Utah! These funds will be available for 10 years and we expect to see guidance on the distribution of these funds this summer. The IRA also modified the Sec. 45L Tax Credit for Energy Efficient New Homes. Among other provisions, the modification includes increasing the amount of tax credit and increasing the level of energy performance required to be eligible. The new 45L tax credit took effect on Jan. 1, 2023, and expires after 10 years, in 2032. • $2,500 for homes or housing units that meet the ENERGY STAR New Homes requirements. In 2023–2024, homes will be required to meet ENERGY STAR National Version 3.1 standards. Between 2025-2032, homes will be required to meet ENERGY STAR National Version 3.2 standards. • $5,000 for homes that meet the U.S. Department of Energy’s Zero Energy Ready Home program requirement. For multi-family projects to be eligible for the full tax credits, they must meet prevailing wage requirements. If multi-family projects do not meet the prevailing wage requirement, they are eligible for a $500/unit tax credit for ENERGY STAR and a $1,000/unit tax credit for Zero Energy Ready Homes projects. This requirement does not apply to single-family homes. Finally, the IRA also greatly expanded the federal Sec. 179D Energy-Efficient Commercial Building Tax Deduction. Large multi-family projects that are four stories or taller should be eligible for this tax deduction if they exceed the ASHRAE 90.1 energy standard by at least 25%. The tax deduction can be up to $5 per square foot if a building is 50% more efficient than the ASHRAE standard, and meets other prevailing wage and apprenticeship requirements. The Future is Energy Efficient & Electric We are entering a new era in the building energy transformation as we move from gas to efficient, all-electric buildings. This transition is an important clean air and climate solution. By deploying all-electric technologies and energy efficiency solutions, we can enjoy the benefits of new innovative technologies and affordable energy bills, while reducing air pollution, and addressing climate change. Electrifying our homes is the way forward — for our health and our pocketbooks. 21
RkJQdWJsaXNoZXIy MTg3NDExNQ==