Construction is underway in St. Paul, Minnesota, on a major affordable housing development that will combine solar, geothermal and all-electric appliances to create one of the region’s largest net-zero communities.

Twin Cities Habitat for Humanity broke ground in June on a four-block, 147-unit project on the site of a former golf course that’s being redeveloped by the city and its port authority, which made the decision to forgo gas hookups. 

Affordable housing and Habitat for Humanity builds in particular have become a front line in the fight over the future of gas. The organization has faced criticism in other communities for accepting fossil fuel industry money and partnering with utilities on “net-zero” homes that include gas appliances. It’s also built several all-electric projects using advanced sustainable construction methods and materials.

The scale of the Twin Cities project is what makes it exciting, according to St. Paul’s chief resilience officer Russ Stark. 

“We’ve had plenty of motivated folks build their own all-electric homes, but they’re one-offs,” he said. “There haven’t been many, if any, at scale.”

Stark added that the project, known as The Heights, was made possible by the federal Inflation Reduction Act. 

“I think it’s fair to say that those pieces couldn’t have all come together without either a much bigger public investment or the Inflation Reduction Act, which ended up being that big public investment,” he said.

A vision emerges

Port Authority President and CEO Todd Hurley said his organization bought the property in 2019 from the Steamfitters Pipefitters Local 455, which maintained it as a golf course until 2017. When no private buyers expressed interest in the property, the Port Authority bought it for $10 million.

Hurley said the Port Authority saw potential for light industrial development and had the experience necessary to deal with mercury pollution from a fungicide the golf course staff sprayed to kill weeds.

“We are a land developer, a brownfield land developer, and one of our missions is to add jobs and tax base around the creation of light industrial jobs,” Hurley said.

The Port Authority worked with the city’s planning department on a master plan that included housing, and it solicited developers to build a mix of market-rate, affordable and low-income units. The housing parcels were eventually sold for $20 million to a private developer, Sherman Associates, which partnered with Habitat and JO Companies, a Black-owned affordable and multi-family housing developer.

“Early on, we identified a very high goal of (becoming) a net zero community,” Hurley said. “Everything we have been working on has been steering towards getting to net zero.”

Twin Cities Habitat President and former St. Paul mayor Chris Coleman said the project met his organization’s strategic plan, which calls for building bigger developments instead of its traditional practice of infilling smaller lots with single-family homes and duplexes. The project will be the largest the organization has ever built in the Twin Cities.

Coleman said the Heights offered an opportunity to fill a need in one of St. Paul’s most diverse and economically challenged neighborhoods and “be part of the biggest investment in the East Side in over 100 years.”

The requirement for all-electric homes merged with Habitat’s goal of constructing more efficient and sustainable homes to drive down utility costs for homeowners, he said. Habitat built solar-ready homes and sees the solar shingles on its homes in The Heights as a potential avenue to producing onsite clean energy.

Zeroing in on net zero

Mike Robertson, a Habitat program manager working on the project, said the organization worked with teams from the Minneapolis-based Center for Energy and Environment on energy modeling.

“The Heights is the first time that we’ve dived into doing an all-electric at scale,” Roberston said. “We have confidence that these houses will perform how they were modeled.”

Habitat plans to build the development to meet the Zero Energy Ready Home Program standards developed by the U.S. Department of Energy. Habitat will use Xcel Energy’s utility rebate and efficiency programs to achieve the highest efficiency and go above and beyond Habitat’s typical home standards.

The improved construction only adds a few thousand dollars to the overall costs and unlocks federal government incentives to help pay for upgrades, he said.

The nonprofit will receive free or reduced-cost products from Andersen Windows & Doors and other manufacturers. GAF Energy LLC, a solar roofing company, will donate solar shingles for over 40 homes and roofing materials. On-site solar will help bring down energy bills for homeowners, he said.

Chad Dipman, Habitat land development director, said the solar shingles should cover between half and 60% of the electricity the homes need. Habitat plans to use Xcel Energy incentive programs to help pay for additional solar shingles needed beyond those donated. 

Habitat will install electric resistance heating technology into air handlers to serve as backup heat for extremely cold days. Dipman said that the air source heat pumps will also provide air conditioning, a feature not available in most Habitat properties in Minnesota.  

Phil Anderson, new homes manager at the Center for Energy and Environment, has worked with Habitat on the project. He said the key to reducing the cost of heating and cooling electric homes is a well-insulated, tight envelope and high-performance windows. Habitat will build on its experience with constructing tight homes over the past decade, he said.

“Overall, the houses that we’ve been part of over the last almost ten years have been very tight homes,” Anderson said. “There’s just not a lot of air escaping.”

Habitat’s national office selected The Heights as this year’s Jimmy & Rosalynn Carter Work Project, named after the former president and his wife, two of Habitat’s most famous supporters. The work project begins September 29^th and will receive as visitors Garth Brooks and Trisha Yearwood, who now host the Carters’ program.

Robertson said thousands of volunteers from around the country and the world will help put up the homes. The Heights project “raises a lot of awareness for Habitat and specifically for this development and the decarbonization efforts that we’re putting into it,” he said.

The Heights’s two other housing developers continue raising capital for their projects and hope to break ground by next summer. Habitat believes the project will meet its 2030 completion deadline.

A St. Paul, Minnesota Habitat for Humanity project will offer affordable housing without fossil fuels is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

The Port of Cleveland is going electric.

One of the Great Lakes’ largest shipping ports is transforming part of a large warehouse into an “electrification hub” to anchor its emission-cutting efforts in the coming decades.

The project is among the Cleveland-Cuyahoga Port Authority’s first steps toward its goal of net-zero emissions for its own operations by 2050. The target does not include “Scope 3” emissions from the ships, trains, and trucks that come and go from the port, but officials hope the upgrades will support their emissions cuts as well.

“Upgrading the electric feed into the terminal is not the most exciting thing,” said Carly Beck, the port’s senior manager for planning, environment and information systems, but it’s a necessary foundation for all other parts of the port authority’s climate plan. 

Shipping ports are a major source of not only climate emissions but also harmful air pollution for nearby communities. Fossil fuels power most of the cranes, vehicles, and other equipment used to move commodities and consumer goods around the globe. The United Nations estimates that global shipping is responsible for about 3% of emissions worldwide.

The Cleveland-Cuyahoga County Port Authority became the first port on the Great Lakes to announce a net-zero emissions goal when its board unanimously approved its climate action plan last September. In February, the board approved spending $32 million from state and federal transportation grants to modernize the warehouse and make electrification upgrades. 

Cleveland’s downtown port on Lake Erie handles about 13 million tons of cargo each year, from steel and iron ore to wind turbine parts and heavy machinery. Most goes to or comes from parts of Ohio and neighboring states via rail or truck.

“Lake Erie … sits at a very important position geographically as part of the Great Lakes,” said Dana Rodriguez, a senior analyst on global shipping at the Environmental Defense Fund. 

The Cleveland-Cuyahoga County Port Authority, like many of its U.S. counterparts, is a public entity that owns and maintains infrastructure at the port. It contracts with a commercial operating company, Logistec, to run day-to-day operations.

The port considered multiple approaches for cutting greenhouse gas emissions, including hydrogen power, before deciding to focus its efforts on electrification, Beck said. All told, the port estimates full electrification will require roughly 5 to 7 megawatts of available power, she said. Design work for modernization and the electrification hub at the port’s Warehouse A is underway. 

The port also is working with Logistec on a grant application for funds under the U.S. EPA’s Clean Ports Program, set up under the 2022 Inflation Reduction Act. Roughly $2.8 billion in competitive grants are available for deploying zero-emission technology, with an additional $150 million for climate and air quality planning. The application is due May 28. 

If successful, the port plans to add 2 megawatts of solar capacity on top of Warehouse A, which will provide a significant chunk of its anticipated electrical needs. Other funds would be used to start acquiring electric equipment for port operations, such as a large forklift.

Over time, the port plans to acquire additional equipment as and when machinery and funds become available, including replacements for a large crane and other material-handling equipment. 

“It’s just a matter now of biting off chunks as we can,” Beck said.  Timing for the acquisitions will also depend on when different types of electrical equipment become available, which will involve ongoing review.

Port Authority President and CEO Will Friedman said the electrification push fits with the port’s broader sustainability goals, including reducing water pollution in Lake Erie and managing dredged material more sustainably.

“We’re doing it because it’s the right thing to do. We have a social conscience here,” Friedman said.

The decision also should help the port stay competitive, especially as more companies consider the indirect emissions of their contractors. 

“We think that’s going to be the future if you’re part of the supply chain network,” Friedman said, adding that ignoring greenhouse gas emissions really isn’t an option. “All industries are trying to figure out how they can decarbonize, and maritime shipping is certainly a part of that.” 

The bigger picture

Decarbonization makes sense for Cleveland and Cuyahoga County in the global scheme of things, said Grant Goodrich, executive director for the Great Lakes Energy Institute at Case Western Reserve University.

“Getting products in and out of Europe and being able to advertise and market that you can do it in a more emissions-friendly manner gives you a competitive advantage,” Goodrich said. The European Union already is pushing for the shipping sector to cut greenhouse gas emissions, and Goodrich expects that will ultimately become important in the American marketplace as well. Cutting greenhouse gases also could help attract more cruise ship business to Cleveland, he added.

The port’s regional nature likely will make some aspects of decarbonization easier. For starters, the port generally does not store fuel for ships on site. Ships typically fill up elsewhere, often from barges, depending on where they believe they can get the best deal, Friedman said. If a ship does need extra fuel while in Cleveland, trucks deliver it.

On the other hand, the Cleveland-Cuyahoga County Port Authority has less bargaining power than some much larger ports on the East and West coasts. That limits its ability to increase fees, which makes grants and other types of funding particularly important.

The Cleveland-Cuyahoga Port Authority’s focus on Scope 1 and Scope 2 emissions is consistent with the goals for a majority of other ports included in a March 2024 report from the Environmental Defense Fund and Arup. However, the report noted, the majority of total port emissions driving human-caused climate change generally are not within ports’ direct control and would fall into Scope 3. 

“Action in the broader zone of user and community and industry influence, where impacts are often far greater and where potential benefits are significant, is lacking,” the EDF report said.

The Cleveland-Cuyahoga County Port Authority’s upgrades include planning to provide power for some of those other indirect emissions.

“We don’t want to forget about Scope 3,” Beck said.

She added that the port anticipates offering incentives to encourage ships and others to reduce their emissions.

An example would be for ships to plug into electrical shore power, known as “cold ironing,” instead of running diesel engines while in port. Besides cutting greenhouse gas emissions, the process can also reduce pollution from particulate matter, nitrous oxides, hydrocarbons and carbon monoxide. The port also hopes to encourage independent operators to acquire electric tugboats and similar equipment.

“Port decarbonization is just one key piece of the full decarbonization equation,” said Rodriguez at the Environmental Defense Fund. “It is also up to the trucking and shipping sectors to meet the ports halfway and contribute to the decarbonization efforts. In an effort to reach net zero by 2050, all stakeholders must play their part.”

Cleveland port’s ‘electrification hub’ expected to anchor progress toward net-zero emissions is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Climate activists and legislators in Massachusetts are pushing a series of bills aimed at stopping further expansions of the natural gas system in the state. 

The proposed legislation attempts to build on a groundbreaking order late last year that set the explicit policy goal of transitioning the state from natural gas. The bills include measures to prohibit the construction of more pipelines, stop expansion of service into new cities and towns, and encourage the growth of utility-scale networked geothermal projects. 

“The order said they need legislative changes to fully implement their directives,” said Jess Nahigian, state political director for the Massachusetts Sierra Club. “We need to see something out of the legislature this year that moves us towards meeting our legal reductions mandates.”

Massachusetts has set a goal of going carbon-neutral by 2050. A considerable obstacle, however, is the prevalence of natural gas as a heating source: More than half the homes in the state use natural gas as their primary heating fuel. So in 2020, state regulators launched an investigation into the future of natural gas in the state and what utilities’ role would be in the transition from fossil fuels. 

After two and a half years of filings, arguments, and deliberation, the state released an order in December 2023 that many hailed as transformational for its clear vision of transitioning from natural gas and holding utilities accountable for reducing emissions. The document laid out a set of principles to guide the process, leaving utilities, regulators, and legislators to build out the specifics. 

That’s what some lawmakers are pushing for with the current slate of bills. 

The bills

House Bill 3237 would stop utilities from bringing natural gas into municipalities that don’t already have service. While most cities and towns are already served by gas pipelines, several dozen, largely in central and western Massachusetts, are still without service. The bill would also prohibit state regulators from approving proposals to build new pipelines to import more natural gas until at least 2026.

Another bill proposed in both the House (H.3203) and Senate (S.2105) contains measures to facilitate home electrification and the development of utility-scale networked geothermal, systems that use thermal energy below the earth’s surface to heat and cool  buildings. The legislation redefines a “gas company” as an entity that provides either natural gas or thermal energy, and specifies that the companies’ legal obligation to provide service can be met by natural gas, or alternatives such as heat pumps or networked geothermal. 

The legislation would also create a fund that could be used to help low- and moderate-income residents switch from gas to electric appliances. The fund could also pay to retrain gas utility workers to build and maintain geothermal pipes and infrastructure, creating more secure employment for these workers during the transition away from natural gas. 

“That way they can gradually transition to this new system while not being laid off, while still being able to feed their families,” said Audrey Schulman, co-founder of HEET, a nonprofit that champions networked geothermal developments. 

A third bill, H.3227, would allow any city or town to prohibit fossil fuel use in new construction or major renovations. A 2022 clean energy law created a pilot program allowing these bans in 10 municipalities that had previously voted for the policy. Several additional cities and towns, however, came forward after the law was passed, expressing interest in enacting such rules. Climate activists have long argued these communities — and any additional municipalities that vote for the measure — should be allowed to enact their own bans.

The debate

Supporters of these bills point to the environmental impacts of burning less fossil fuel, but also make an economic argument in favor of restricting the growth of gas. The economics of gas companies’ current course of action just doesn’t make sense, advocates argue. Any new infrastructure built now — when the state has explicitly declared a move away from natural gas — is likely to become unneeded or underused long before the normal end of its lifespan. Ratepayers would be left continuing to pay for an obsolescent system.

“Should we be building this infrastructure now that, as we transition off of gas, will be a stranded asset in the ground?” asked Cathy Kristofferson, board member of the Pipeline Awareness Network of the Northeast. 

At the same time, the utilities recently filed their grid modernization plans, seeking approval to pass on about $2.4 billion in costs to consumers. While these plans are necessary to make the grid ready for the electrified future, they will inevitably increase costs for consumers, said Sen. Michael Barrett, co-chair of the Senate telecommunications, utilities, and energy committee. It makes sense to take steps to keep natural gas costs in check, he said. 

“You do that by making sure that new pipes that take 30 years to pay off don’t go into the ground unless they’re absolutely necessary,” Barrett said. “If you’re going to maximize the electric system you should minimize the gas system. There’s a nice balance there.”

Some, however, argue the push against natural gas is going too far, too fast. Many homebuyers prefer gas for both cooking and hearing, said Emerson Clauss III, a board member and past president of the Home Builders and Remodelers Association of Massachusetts. Though some studies have found minimal cost increases, Clauss says many association members find all-electric homes considerably more expensive to build than houses with gas hook-ups. As the state grapples with a serious housing shortage, new policies should not make it more expensive to build homes, Clauss said. 

“I don’t know how we resolve our housing crisis without some good planning and options — and that’s what they’re taking off the table,” he said. “At the end of the day, we have to get people into housing they can afford.”

Advocates generally expect provisions from these individual bills to be wrapped into an omnibus climate bill. Sen. President Karen Spilka at the end of April declared plans for the Senate to tackle a major, comprehensive climate bill, led by Barrett and majority leader Cynthia Creem, before the session closes at the end of July. 

“I hope large parts will make it into any omnibus bill,” Schulman said. “This is the time.”

Massachusetts legislation seeks to build on state order to phase out natural gas is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

State legislation to halt expansion of natural gas infrastructure in Maine as soon as next year has been cut back into a package of studies that contemplate the role of gas in the state’s energy future. 

Environmental advocates hope these studies will prove that continued reliance on gas is the wrong choice for public health, ratepayer pocketbooks and Maine’s climate goals, while the state’s gas utilities see the new version of the bill as a chance to explore roles for alternative fuels like hydrogen and biogas. 

“The gas utilities are going to make a very strong case that they’re more part of the solution to climate change than part of the problem — [there is] a lot of skepticism about that,” said Bill Harwood, Maine’s Public Advocate for residential utility customers. “If they can’t make the case, then we will look at how we transition away from natural gas and toward wind, solar and electricity.” 

Harwood wrote the initial proposal, which would have barred utilities from including the cost of new gas service lines and mains in residential and commercial customers’ rates starting in 2025 and would have told state regulators not to approve any expanded gas service. 

This plan, which also included studies about the health effects of gas appliances and methane leaks and the economics of a climate-driven transition off it, quickly proved “very controversial,” Harwood said. 

It drew opposition from the gas utilities, building trades, industrial sector and the Maine Governor’s Energy Office, which helps oversee the state’s climate plan. 

Those stakeholders worked with environmental groups and Harwood’s office to craft a compromise amendment eliminating the proposed ban on gas expansions, which narrowly passed in a legislative committee last week. 

The amendment proposes a state Public Utilities Commission inquiry on ways to plan and oversee utilities’ future gas investments in Maine; a Governor’s Energy Office study on the economic impacts of Maine’s existing gas service and its potential role in “supporting the transition to a low carbon future”; and a commission to study ways to ensure a just energy transition for Maine workers.

Jack Shapiro, the climate and clean energy director with the Natural Resources Council of Maine, which supported the original bill and worked on the amendment, said these studies should give legislators the evidence they need to start a real transition from gas and the industry’s favored alternative fuels. 

“Our 2030 goals are six years away, and we’re seeing the impacts of climate change pretty starkly this winter,” Shapiro said. “We can’t go around and say, well, maybe this technology will evolve over time … we need to make sure we’re not chasing shadows here.” 

The new version of the bill now heads to the full Democratically-controlled legislature for a vote and then potential signature by Maine Gov. Janet Mills, also a Democrat. 

Some see conflict with state climate policy

The Mills administration has been nationally lauded for pushing Maine residents to switch from heating oil to electric heat pumps, among other clean energy goals. 

The Governor’s Energy Office declined to answer questions for this story about how the amended gas bill and their opposition to the original version align with state climate policy.

Maine’s targets include using 100% renewable electricity by 2040 and cutting greenhouse gas emissions 45% from 1990 levels by 2030 and 80% by 2050. Maine reached 51% renewable electricity in 2023 and was 25% below 1990 emissions as of 2019.

The Governor’s Energy Office is tasked with studying pathways to the renewable energy goal and is due to recommend one this year. The studies proposed in the amended gas bill would dig into the economics of where gas and pipelines may fit in. 

Right now, Maine uses less gas than almost any other state, especially in the residential sector, where supply is concentrated mostly in the far southern part of the state. Federal data shows gas serves about 8% of Maine’s home heating needs, for example, while heating oil supplies 56%. 

But Maine’s four gas utilities are growing. Analysis by Harwood’s office found they’ve installed more than 100 miles of new pipe, an 8% increase, and added more than 6,000 new customers, a 12% increase, since 2019. 

“We don’t want the gas utilities to continue to expand, business as usual, and then turn around and present the bill to those ratepayers who are taking natural gas once the dust settles,” Harwood said. “What we were trying to do in the original (bill) was stop expansion, but not interfere right now with their (the utilities’) continued ability to deliver gas to those customers who have already made the investment.”

To state Rep. Sophie Warren (D-Scarborough), who sits on the legislature’s energy committee, the amendment marks a pragmatic but disheartening approach to getting anything on this topic passed.

“I feel in some ways ashamed to be voting for something that is so far from what could have been good and useful and necessary,” Warren said to fellow legislators on the committee before voting in favor of the amendment March 7.

Warren, who is in her second term and graduated from college in 2019, said in a later interview that she and others of her generation want to see more urgency and less incrementalism from Maine politicians on issues like this. She raised concerns about how much influence the gas industry had on the amendment, which she sees as in direct conflict with the need to go completely fossil-free to fight climate change. 

“I really fear that we could be getting away from what science demands, what justice demands,” she said. “We can’t be, in this year of 2024, saying that natural gas is a partner in that. We have to understand that our goal must be far more ambitious.” 

Alec O’Meara, the director of external affairs for Unitil, one of Maine’s gas providers, said the state’s outsized reliance on fuels like heating oil means lower-carbon gas can still aid in decarbonization. 

“We have opportunities to help reduce (emissions) today,” he said, “and we see opportunities to use gas infrastructure to help deliver renewable energy in the future as well.” 

Utilities eye roles for new fuels

The governor’s office study in the new version of the bill would be required to be consistent with state climate policy while considering ways to do that, including with green hydrogen (made from water using renewable energy), biogas from farms (sometimes called “renewable natural gas”), and district-scale geothermal electricity. 

“We see our infrastructure really as a pipeline infrastructure,” said Lizzy Reinholt, a senior vice president with Summit Utilities, another of Maine’s gas providers. “Much like we focus on creating policy and regulatory frameworks to reduce the emissions intensity of the electrons running in the wires above us, we think it’s just as incumbent on the state to focus on how we reduce the emissions intensity of the molecules in the pipes.” 

It’s not clear yet whether hydrogen or biogas would be considered “renewable” for Maine’s climate goals. But environmental groups have cast doubt on these fuels’ value as part of the state’s energy transition. 

“We already know that alternative fuels, like hydrogen and renewable natural gas, are not economic, efficient or scalable climate solutions for heating,” said Emily Green, a senior attorney for the Conservation Law Foundation in Maine, another nonprofit that backed the original bill and helped with the amendment. “We are confident that the state’s (proposed) reports will reach that conclusion.” 

A 2019 study from the American Gas Foundation found that Maine could produce about 19.6 trillion Btu of biogas per year if it maxed out production from farms, landfills and more. That would replace about a third of Maine’s already low yearly natural gas consumption, according to federal data. 

Summit spent $20 million on an anaerobic digester in Clinton, Maine, that turns cow manure from dairy farms into biogas — enough to supply nearly half of the company’s residential load in Maine. 

That customer base is a very small part of a small utility sector in the state. Compared to Unitil’s 27,000 residential customers, Summit has fewer than 5,000 in Maine — a third of what the company has built its system for, according to Harwood, who has sparred with Summit over its rates and growth in recent years.

Reinholt argued that Harwood’s original bill would have prematurely limited exploration of these and other approaches as potential “levers that we can pull” in Maine’s climate efforts. 

Still, Harwood and others said the proposed studies in the amendment will take up precious time on the way to Maine’s climate goals and to scientists’ predicted future harms if emissions don’t decline sharply. 

“Time is our enemy, and we’d all like to see these … decisions made sooner rather than later,” Harwood said. “But there’s only so much resources available in state government. This is the best we can get.”

Maine replaces bill to halt natural gas expansions with plan to study industry’s future role is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Environmental agencies in nine states will work together to reduce planet-warming carbon emissions by making electric heat pumps the norm for most new home HVAC equipment sales by 2040. 

The memorandum of understanding, spearheaded by the inter-agency nonprofit Northeast States for Coordinated Air Use Management, or NESCAUM, was released today and signed by officials in California, Colorado, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon and Rhode Island. 

While it is not legally binding and does not commit particular funding, the agreement calls for heat pumps to make up 90% of residential heating, air conditioning and water heating sales in these states by 2040. 

An interim goal of 65% by 2030 is based on last fall’s target from the U.S. Climate Alliance, a group of 25 governors, to quadruple their states’ heat pump installations to 20 million in the same timeframe. 

The residential sector is one of the top two or three contributors to greenhouse gas emissions in most of the East Coast states signing on to the agreement, driven in part by cold climates and a heavy reliance on oil and gas for home heating. Residential emissions rank far lower in the Western states participating.

In a press release, NESCAUM emphasized the harmful smog, haze and ozone driven by nitrogen oxide and particulate emissions from fossil fuel combustion, calling buildings “a hidden source of air pollution.” 

Senior policy advisor Emily Levin said states must move quickly to help residents replace these fossil-fired HVAC and water heating systems with heat pumps in time to limit the harms of global warming. 

“You may only have one more crack at these buildings between now and 2050, because these are long-lived pieces of equipment — they can last 10 or 20 years,” she said. “So we really can’t miss our opportunity.” 

Clear market signals

Matt Casale, senior manager of market transformation with the Building Decarbonization Coalition, said the new agreement’s market-share approach adds specificity to how states will meet existing, number-based goals for heat pump installations. 

“The idea is to send a clear signal to the market that heat pumps are the future of home heating and cooling, while reflecting the urgency with which we need to act to meet GHG emissions reduction targets,” he said. 

Manufacturers have called for this kind of “long-term signal,” said Levin — “they need to plan, they need to make significant investments.” She said agreements like this show companies that “this is the direction we need to go in” and that state governments are committed to helping make the transition happen.

“Greater demand for heat pumps will also put pressure on installers,” Casale added. “We will need policies that both grow and further develop the workforce. The MOU is a great opportunity to bring them in more directly, learn from them, and talk about their needs.” 

Under the new agreement, participating states will “collaborate to collect market data, track progress, and develop an action plan within a year to support the widespread electrification of residential buildings,” according to NESCAUM.

Afton Vigue, a spokesperson for the Maine Governor’s Energy Office, said taking advantage of consolidated industry data will help prevent another new reporting requirement for participating states and will help align with varying state metrics.

The states’ forthcoming action plan is expected to include emphasis on workforce development and supply chain constraints, which have tempered otherwise strong heat pump progress in states like Maine. 

“It really does focus on that element of driving the market and collaborating with manufacturers,” Levin said. “Right now, states don’t really necessarily know … how their heat pump market is developing. Creating systems to bring visibility to that, provide insights into that … it’s a really important element.” 

The agreement tees up annual reports on each state’s progress toward the 2030 and 2040 goals, and schedules a 2028 check-in about any necessary adjustments. 

Collaborative tools for affordability and access

“A greater focus on consumer education, workforce development, and affordability will be critical to the success of the transition,” said Casale. “This means getting the most out of the Inflation Reduction Act and other incentive programs, but we also need to answer the questions of how this solution best serves multi-family buildings, renters and others for whom purchasing a new system isn’t entirely within their control.” 

In the agreement, the states pledge to put at least 40% of energy efficiency and electrification investments toward disadvantaged communities — those facing high energy cost burdens or disproportionate pollution — in line with the federal Justice40 program, which underlies similar rules for the IRA.

Working through NESCAUM and other existing groups, the participating states will brainstorm tools for reaching these goals, potentially including funding for whole-home retrofits, building code enforcement and other uniform standards, data collection, research projects, use of federal resources and more. 

“It’s going to look a little different in every state,” Levin said. “But they’re committing to collaborate and to advance a set of policies and programs that work for their state to accomplish those broader goals.”

This could include adapting or building on each other’s approaches. Levin highlighted Maine and California as having successful models for consumer outreach and heat pump market coordination, and said Maryland has shown strong impact and ambition around clean building performance standards. 

Maine, which relies more on heating oil than any other state, is among the participants with existing heat pump goals in their climate plans. The state surpassed an initial target — 100,000 installations by 2025 — last year, and now aims to install 175,000 more heat pumps by 2027. 

Officials in Maine have said that heating oil use appears to be slowly falling in concert with increasing use of electricity for home heat. Vigue said the new agreement lines up with existing state goals and will help Maine “bolster our ongoing collaboration with other states, share experiences, and see where gaps may exist.” 

Nine states pledge to boost heat pumps to 90% of home equipment sales by 2040 is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.