California today has more gas-fired industrial boilers than any other state, causing significant climate and air pollution. The California Public Utilities Commission can cut this pollution by upda…
California today has more gas-fired industrial boilers than any other state, causing significant climate and air pollution. The California Public Utilities Commission can cut this pollution by updating electric rates for industrial facilities to incentivize use of electric equipment, according to this report from Industrious Labs, Sierra Club, and the American Council for an Energy-Efficient Economy, in collaboration with Synapse Energy. The report identifies rate improvements that would encourage facilities to transition from gas boilers and focus power use of new electric equipment to nonpeak hours. Because many of California’s industrial facilities only require temperatures up to 200°C, they are good candidates to adopt heat pumps—a cleaner electric alternative to boilers—if the right rates are put in place. Shifting power use to nonpeak hours would spread out electricity demand, reducing the need for expensive grid upgrades and lowering long-term energy costs for all California residents.
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Expanded utility-funded energy efficiency programs can significantly slow rising electricity demand and reduce electricity bills; this report explains how.
This paper highlights a central lesson for policymakers: Industrial innovation requires alignment across government programs (grants, procurement), financing mechanisms (tax credits, loans), and institutional capacity. When these three are backed by sustained commitment from the public sector, private industry, and external stakeholders, the transition from demonstration to deployment becomes viable.
Utility energy efficiency programs have increased investment in low-income households, but significant gaps remain. This report examines spending and savings trends across 48 major U.S. utilities, identifies barriers to expanding low-income programs and highlights policies and program strategies that can improve energy affordability and equitable access to efficiency upgrades.
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