The D.C. council is moving to increase funding for climate and environmental programs, after Mayor Muriel Bowser proposed a 14% cut in her budget for the upcoming 2024 fiscal year. The council is also proposing to restore the original timeline for a key climate program, the building energy performance standards, after the mayor asked for a three-year delay.
“The District has been leading the way on climate action for years. However, I was disappointed to see that the mayor’s proposed FY 24 budget, it lacks significant funding for, or even discussion of the District’s climate goals,” said Councilmember Charles Allen (D-Ward 6), ahead of a committee budget vote.
“We know that climate change results in rapidly escalating hazards including heatwaves, extreme storms, heavier rainfall, and water and food scarcity,” said Allen, who chairs the transportation and environment committee. “The District must make critical investments in addressing this crisis even in tight financial times.”
The mayor’s budget included a proposal to delay by three years implementation of the city’s building energy performance standards, known as BEPS, in an effort to aid struggling building owners. Downtown office building owners, in particular, are facing high vacancy rates and an uncertain post-pandemic future, and some said the energy standards would be an additional burden.
The committee voted Thursday against the mayor’s proposed delay, meaning BEPS will likely remain on its current schedule, with the first energy efficiency deadline coming up at the beginning of 2027.
BEPS was the first program of its kind when it was created in 2018. While there are many policies around the country aiming to make new buildings more efficient, BEPS targets existing buildings, requiring them to use less energy over time. Initially, only buildings larger than 50,000 square feet will be covered by the program. Buildings that are less efficient than the median building in their class are required to make improvements, such as improving insulation or upgrading heating and cooling equipment.
Buildings are the biggest climate polluter in the District, accounting for roughly 75% of emissions. BEPS is one of the three most impactful policies in place in the District to cut emissions, expected to lead to a 10% drop in emissions citywide.
Supporters of BEPS note that existing law includes numerous exemptions for building owners experiencing hardships, and argue that a delay is not needed. In addition, there are various sources of funding to help with upgrades, including the Affordable Housing Retrofit Accelerator, which offers assistance to help owners of affordable housing make efficiency upgrades.
“A delay in BEPS would have devastating impacts on the District’s efforts to meet its climate goals,” said Allen. “Greening our buildings plays a critical role in ensuring a sustainable and resilient future for District residents and businesses, and there is no time for delay.”
The committee also proposes a slight increase in fees on residents’ gas and electric bills. These fees would go to the District’s Sustainable Energy Trust Fund, which helps pay for many clean energy programs in the city. The SETF currently has insufficient funding, according to the committee — and lawmakers want to draw on the fund for new initiatives as well. The additional fees would be roughly 88 cents a month on the average household’s electric bill, and $1.77 on the average gas bill. The increased fees would generate $25 million for the SETF.
New initiatives to be funded by the SETF include a $2 million pilot program to pay for electrifying the homes of residents in Ward 7’s Deanwood and River Terrace neighborhoods, replacing old, polluting gas appliances with new, efficient electric ones. The fund could also pay for similar upgrades for low-income residents citywide, through legislation proposed by Allen.
“Unhealthy homes cause unhealthy people,” said Rev. André Greene, pastor at Varick Memorial AME Zion Church in River Terrace.
Greene and others with the Washington Interfaith Network have been testing homes and outdoor areas for natural gas leaks in recent years, and have been urging the city to do more to transition away from fossil fuels.
“We’re grateful that people would be able to take this money and begin to use it to help repair their homes, to make their homes energy efficient and get in a place where the utility bills are not so high, that they’re able to afford to pay their utility bills,” Greene said.
Households with incomes below 80% of area median income — for example, a family of four making $113,000 — can be exempted from the SETF fees by signing up for utility assistance programs. Currently some 30,000 households are enrolled in such programs in the District.
The budget changes are still pending approval from the full council and the mayor.
Jacob Fenston