California Dreamin’

California has long been at the forefront of technological change and societal trends. The Golden State’s sheer size (40 million people; 163,000 square miles) ensures what happens in California doesn’t stay there, and this includes energy policy. California was the first state to pass a cap-and-trade program and enact a low-carbon fuel standard (LCFS). Since then, two other states have adopted a version of cap-and-trade and three others have authorized the equivalent of a LCFS. And for the last decade, California (and localities and counties within it) has pushed forward a very prescriptive policy to try to reduce greenhouse gas (GHG) emissions: restricting access to conventional fuels while simultaneously pursuing aggressive electrification efforts. The California Air Resources Board’s (CARB) Zero-Emission Space and Water Heater Standards is an obvious example of this approach. Of course, these GHG reduction efforts affect the price of energy paid by consumers. But they also impact the availability of energy products, as well as the overall security, reliability, and resilience of our energy delivery systems.

As state and local officials focus on converting every traditional combustion application to electricity, they are altering the shape and demand of the aggregate electric load. In response, utility companies must make new investments in generation assets and transmission and distribution infrastructure to ensure an adequate supply of electrons and their safe movement across the grid. However, we are artificially increasing demand on a bulk electric system that is already badly in need of basic maintenance and modernization efforts.

Space heating is the most energy-intensive application in a typical home. In California 29 percent of households rely on grid electricity for space heating purposes. Or, put another way, 71 percent of Californians use an energy source besides utility electricity for their space heating needs. These households use thermal fuels, including propane and natural gas, to keep their homes warm and comfortable during the heating season. An underappreciated fact about propane is that it reduces stress on the electric grid and helps it cope with peak demand, especially during the winter months when aggregate energy demand crests. Fuel diversity truly strengthens the reliability and resilience of our bulk energy systems. If, however, officials continue to take steps to eliminate non-electric energy sources from the market and force more residential homes and commercial buildings to all-electric, they will exacerbate existing infrastructure and load issues that already plague the electrical system.

Notably, electrical infrastructure has been the ignition source for numerous deadly and destructive wildfires in the state, including the second largest ever, the 2021 Dixie Fire. Earlier this year, wildfires devastated portions of Los Angeles County. And, once again, electrical equipment is being investigated as a likely culprit. Los Angeles County recently filed a lawsuit against Southern California Edison, claiming that the company’s equipment was responsible for igniting the Eaton Fire, which devasted communities in the San Gabriel Valley. In addition to destroying lives and livelihoods, wildfires also release a tremendous amount of carbon dioxide and methane into the atmosphere. This, of course, undermines the GHG reduction efforts that electrification proponents are chiefly focused on.

Sacramento’s priorities are backwards. Instead of spending an enormous amount of time and money dedicated to forcing new demand onto the electric grid, state officials (and utility companies) should get back to basics: preventive system maintenance, digital and physical asset hardening, grid modernization, and, of course, wildfire prevention efforts.

According to the 2023 sales report, California is the largest state market in the country, with 535 million gallons of fuel sold. Furthermore, 469,000 Golden State households rely on propane for their primary household space heating needs, which is the most of any state. For more information, contact NPGA’s Senior Director of State Affairs, Jacob Peterson.