State Policies and Rules to Enable Beneficial Electrification in Buildings through Fuel Switching_1

To meet ambitious emissions-reduction goals, a small but growing number of states are promoting electrification of space and water heating as an important building decarbonization tool. However, one barrier states face is the need to ensure that fuel-switching and electrification efforts are beneficial; i.e., they must reduce emissions and energy costs while harmonizing with existing energy efficiency policies aimed at reducing demand. This policy brief assesses existing state policies in this rapidly changing area. Our goal is to assist regulators and program administrators seeking to design effective programs that meet their maximum potential to achieve net carbon-reduction benefits. Our last look at these policies, in 2020, saw limited adoption of such programs, mostly limited to northeast states like New York, Massachusetts, and Maine. The new report shows that states in other parts of the country, including Colorado, Illinois, and Minnesota, are now making similar efforts.