The California Building Industry Association, Affordable Housing Advocates, and Community Organizations Announce New Findings on the High Cost of Electrifying Homes and Californians Strong Preference for Natural Gas as an Affordable Energy Choice

Switching to all-electric appliances would cost CA consumers over
$7200 upfront, with an estimated total annual increase of $877 in
appliance and energy costs

New poll shows two-thirds of voters in California oppose eliminating
use of natural gas and only one-in-ten would choose solely electric
appliances

LOS ANGELES–(BUSINESS WIRE)–The California Building Industry Association, affordable housing
advocates, and community and business organizations representing
millions of Californians today announced the results of two new studies
that reveal the high cost of electrifying California homes and a strong
preference among voters for more affordable natural gas appliances. The
analysis, conducted by Navigant Consulting found that in homes with
natural gas appliances, swapping those appliances for all electric
alternatives would cost the average household in Southern California
more than $7,200 to upgrade wiring and electrical panels and purchase
new appliances. This, along with higher electricity bills, could
increase energy costs up to $877 per household each year. Across
Southern California’s 7 million single-family homes, the total cost
increase is $4.3 to $6.1 billion per year. A
separate, recent poll conducted by the California Building Industry
Association (CBIA) found that when purchasing a home, only
one-in-ten would choose solely electrical appliances and fully
two-thirds of voters oppose eliminating the use of natural gas in
California. Moreover, recent and proposed updates to residential energy
efficiency standards, mandated by the California Energy Commission
(CEC), could increase the cost of housing by as much as $20,000 –
further impacting affordability for already struggling Californians.

“The cost of housing has been skyrocketing throughout California and
many families are struggling with housing affordability. For decades,
California homebuilders have worked to construct the most efficient and
affordable homes,” said Dan Dunmoyer, the President and CEO of the
California Building Industry Association. “At a time when California
is experiencing the worst affordable housing crisis in the history of
our state, we need to make housing less expensive rather than tacking on
new costs that make homeownership even further out of reach for most
families.”

“Poverty and homelessness are driven by many factors, but one of the
most critical is the precipitous increase in the cost of living in L.A.
County, which includes housing and home expenses. United Way of Greater
Los Angeles has a long-standing relationship with our utility partners
to ensure all families are able to pay their utility bills through the
Utility Assistance Program. These recent studies underscore the
commitment needed to understand all underlying factors that can
contribute to financial instability, potentially forcing struggling
families deeper into poverty and homelessness,” said Elise Buik,
President and CEO, United Way of Greater Los Angeles.

“At Habitat for Humanity we aim to help families attain strength,
stability, and self-reliance through affordable home
ownership. Affordable housing is not entirely about manageable mortgage
payments. It is also about ensuring the cost of actually living in the
house – keeping the water hot, the lights on, and the home warm and
comfortable.” says Matthew Grundy, CEO of Habitat for Humanity in
Fresno County. “The cost of energy is an important concern for our
families and is a key driver of housing insecurity.”

“As the largest Community Development Corporation in the nation, TELACU
builds both new affordable housing and provides energy efficiency
retrofit measures in existing homes of low-income families,” said Michael
Lizárraga, President and CEO for TELACU. “On a daily basis,
we understand firsthand, on the 'ground level,' the increasing hardships
facing low-income families. Legislators must adopt policies that address
climate change. But in so doing, it is absolutely imperative that
lawmakers implement responsible public policies that fully consider and
mitigate the increased economic burden those policies may place upon
California’s growing low-income population.”

“Every Californian deserves to choose from energy options that best meet
their needs. For seniors and retirees living on fixed incomes, the
choice is even more important,” Gary Passmore, President of the
Congress of California Seniors, said. “California’s seniors should
not be forced to choose between needless increases in their energy bills
and other necessities like food and medications.”

“Any increase in construction, including energy costs, is a barrier to
permanent housing solutions, which is an issue we can no longer afford
to ignore,” said Richard Xavier Corral, Interim Executive Director
for the San Gabriel Valley Consortium on Homelessness, an
organization that advocates for appropriate housing and homeless
services.

“We serve our most vulnerable communities, and we see their bills—the
difference between electric and gas bills is day and night,” Andy
Molina, Executive Director of Southeast Churches Service Center
said. “California’s policies should be sensitive to low-income
communities that are already struggling to survive.”

“Like the majority of Californians, Mothers of East Los Angeles supports
choice, especially when it comes to selecting the energy source that
heats our homes,” said Teresa Marquez, President of Mothers of East
Los Angeles. “We believe switching to an all-electric home would
negatively impact the most vulnerable residents in the communities where
we live and serve.”

“In the lives of people living in poverty, there often are few choices.
Even among those who are working, expenses for basic daily living can
exceed incomes. Adding yet another financial burden to these families in
the form of higher energy costs will only compound the problem,” said Janet
Marinaccio President & CEO at MEND-Meet Each Need with Dignity.

“Contrary to the model minority myth, many Asian-American communities
are also low income,” said Hyepin Im, President and CEO of Faith &
Community Empowerment, an organization working to advance the
Asian-American community’s participation, contribution and influence
through faith-based and community partnerships. “As we seek to create
more affordable long-term housing solutions, an effective strategy must
consider ways to lower the cost of living for those in need and provide
affordable, safe energy options.”

According to California Air Resources Board, natural gas consumption in
residential and commercial buildings in California account for only
about 7 percent of greenhouse gas emissions in the state.

“In poll after poll our customers tell us that when it comes to energy
policy, affordability is their top concern,” said Lisa Alexander,
SoCalGas Vice President for Customer Solutions. “Through continued
investments in new technologies and by introducing more renewable gas
into our pipelines we can achieve meaningful greenhouse gas emissions
reductions, preserve customer choice and keep energy bills affordable
for the millions of Californians who overwhelmingly prefer natural gas
for cooking and space and water heating.”

Other key findings from the CBIA-led consumer preference poll, include:

• Voters overwhelmingly prefer natural gas stove tops/ovens, water
  heaters and furnaces over electric versions because they are less
  expensive to purchase and operate;
• Two-thirds of voters oppose eliminating the use of natural gas and 82%
  oppose eliminating the use of natural gas if consumers’ monthly energy
  bills would significantly increase;
• In terms of monthly budgeting, the electric bill is voters’ top
  concern, beating the cable bill by a more than 2 to 1 margin;
• Nearly 60 percent of voters are very or extremely concerned about
  higher housing costs;
• The top reasons voters oppose eliminating the use natural gas are cost
  concerns and the belief that California needs diverse energy choices.

For more information, you can visit www.cbia.org
or click on the hyperlinks to read the energy
choice survey and the study
on the cost of electrification.

Contacts

California Building Industry Association
Erin Shaw, 916-930-0100
[email protected]