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Natural Gas December 04, 2019 12:30:13 AM

As Bay Area Natural Gas Bans Spreads, Lawsuits Mount

Anil
Mathews
OilMonster Author
The California Restaurant Association challenged Berkeley’s ban in federal court on Nov. 21, arguing it would raise costs and hurt businesses.
As Bay Area Natural Gas Bans Spreads, Lawsuits Mount

SEATTLE (Oil Monster):  With bans on natural gas in new buildings poised to take effect starting in January, lawsuits are mounting from restaurants and developers who argue that they create safety risks or violate the law.

Berkeley kicked off the trend this summer when it banned natural gas in newly built homes; the city intends to also include new commercial buildings. Roughly a dozen municipalities in Northern California quickly followed with similar restrictions, many focused on new homes. The bans have ignited a debate between environmentalists and industries over the most cost-effective and environmentally friendly future energy source — a tension heightened as utilities shut off power to prevent wildfires and the grid becomes less reliable.

The California Restaurant Association challenged Berkeley’s ban in federal court on Nov. 21, arguing it would raise costs and hurt businesses. Two developers also filed suits against Windsor last month after the town passed an ordinance requiring electrical appliances and prohibiting gas installations in new low-rise residential developments. Local home-builder William Gallaher sued the town on Nov. 19, followed by Windsor-Jensen Land Co. LLC on Nov. 22. Both suits are in Sonoma County Superior Court.

Windsor’s ordinance, which does not apply to new commercial development, said the town is “already experiencing the repercussions of excessive greenhouse gas emissions” like hotter temperatures, prolonged droughts and increased fire risks that hit poor communities and the medically vulnerable hardest.

“The town is the first in the county to move forward in this direction, and I believe our council feels strongly that it’s the right thing to do to address the threat of climate change and to also move forward with the state’s own goals for decarbonization,” Town Manager Ken MacNab said Monday.

Windsor’s ordinance, approved in October, is pending review from the California Energy Commission. (Berkeley’s ban doesn’t require commission approval because the city used police powers to adopt the ban.) MacNab said he’s hopeful Windsor will get approval by the end of the year so it can go into effect in January.

But lawsuits argue the town failed to properly review environmental and public-safety hazards of electrification. Electrical equipment sparked the lethal Camp Fire and the more recent Kincade Fire. Pacific Gas and Electric Co.’s preventive shut-offs increased generator use, causing fires and carbon monoxide poisoning. And there’s uncertainty that the grid could “satisfy the demand of all new construction under a 100% electricity standard,” Gallaher’s suit argued.

Studies differed on costs of electrification to consumers. Windsor’s staff report included an analysis that going all-electric would save homeowners money. Windsor-Jensen Land Co.’s lawsuit cited another report that said rising rates would mean higher utility bills over time.

Panama Bartholomy, director of the Building Decarbonization Coalition, said that natural-gas use doesn’t entirely insulate residents from shut-offs, since some gas appliances still require electric ignition. (Some gas ovens, for example, cannot work without electric ignition, according to GE.)

The lawsuits also say bans would increase building costs and raise housing prices for residents. Windsor’s staff report included a statewide cost-effectiveness study that estimated electrification installation and utility cost savings for homeowners, but Windsor-Jensen Land Co.’s lawsuit cited another study that predicted electric home costs could increase based on PG&E raising rates.

A California Building Association-commissioned report in 2018 calculated that most electric appliances except for some water heaters have similar or lower upfront costs than natural-gas appliances. Converting from gas to electric, not currently required under any bans because they focus on new rather than existing construction, would raise costs.

The Windsor lawsuits also questioned the town’s exemption under state law for not undertaking a full environmental review of the new gas ban. Windsor’s report said “there are no reasonably foreseeable adverse impacts. Consequently, there is no possibility that the activity in question may have a significant effect on the environment.”

Gallaher’s lawsuit said the plaintiff “has personal, professional, environmental, and other interests which will be severely injured.” Gallaher did not respond to a request for comment Monday. Bill Botieff of Windsor-Jensen Land Co. referred to his business partner Tom Micheletti, who did not respond to a request for comment.

Some oil and gas representatives argue consumers should be able to choose what energy source they want.

“Natural gas is an affordable and efficient energy source that provides reliability during the on-going transition to more renewable energy sources,” Catherine Reheis-Boyd, president of the Western States Petroleum Association, said in an emailed statement. “Banning its use in municipal buildings, homes or businesses in Berkeley or other cities is not a mindful or inclusive way of planning for our state and nation’s energy future.”

American Gas Association President and CEO Karen Harbert said in an emailed statement that “to see a city eliminate not only the customer choice, but the broader economic benefits and undeniable environmental benefits, is short sighted to say the least.”

Environmentalists and municipalities pushing for natural-gas bans argue the risks of electrification are rooted in climate change, which demands action.

“We’ve been living with electric infrastructure for over half a century and it hasn’t caused us problems. Now record drought, rain, hurricane-force winds in our hills are starting fires. That’s undoubtedly by climate change and climate change exacerbated by the burning of fossil fuels,” Bartholomy said.

“We’re getting to the point now in fighting climate change where we’ll start to have to make change,” he added.

 Courtesy: www.sfchronicle.com


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