Bankrolling Climate Change: Barnacle's Decarbonization 'Nonprofit' Partnered with Newsom's Office, PG&E and CA Energy Commission for $9M Contract to Accelerate Heat Pump Adoption
Despite the conflict of interest, Petaluma Councilman voted to authorize the City Manager to enter into an agreement with Willdan to install heat pump water heaters
On December 18. 2023, Petaluma Councilman Brian Barnacle voted in favor of Adopted Resolution No. 2023-186 N.C.S. Authorizing the City Manager to Enter into an Agreement with Willdan to Install Heat Pump Water Heaters at City Facilities. The Resolution stated the following:
“WHEREAS, the City of Petaluma has set a goal for the entire community to be carbon neutral by 2030; and
WHEREAS, has entered into an agreement with Syserco to examine energy efficiency, conservation, and fuel switching measures; and
WHEREAS, Willdan, PG&E’s contractor selected through a competitive process, contacted staff regarding a program focused on government facility water heater replacement projects; and
WHEREAS, the Government and K-12 program (GK12) serves Federal facilities, local-government facilities and K-12 Schools across the PG&E service territory; and
WHEREAS, this program contributes to PG&E’s efforts to achieve energy efficiency (EE) and greenhouse gas reduction goals set forth by the State of California; and
WHEREAS, the GK12 program provides technical and financial assistance to local government for comprehensive retrofits that save energy, reduce customer demand for electricity, and increase overall operational efficiency; and
WHEREAS, replacing existing gas water heaters with heat pump water heaters are eligible projects for this funding source; and…
WHEREAS, the City’s purchasing rules require the City to formally bid any purchase over the Charter threshold, currently around $31,000; and
WHEREAS, the common law recognizes a bidding exception for circumstances where competitive bidding of public contracts otherwise required by statute may be excused, including circumstances where the contract is such that competitive proposals would be unavailing or would not produce an advantage, and the advertisement for competitive bid would thus be undesirable, impractical, or impossible (Graydon v. Pasadena Redevelopment, Agency (1980) 104 CA3d 631); and
WHEREAS, due to the unique circumstances related to the participating in PG&E’s GK-12 program and the requirement to use PG&E’s selected contractor, Willdan, this agreement with Willdan, and any associated equipment purchases, is eligible for a sole source purchase…”
Staff provided the following discussion as included in the report at the Dec. 18, 2023 Council Meeting:
“Willdan visited all City facilities and identified twenty natural gas water heaters that could be replaced with twenty-one heat pump water heaters. Facilities include 27 Howard St., Cavanaugh Pool and Recreation Center (two units), Community Center (two units), Corporation Yard (three units), Fire Station 1, Kenilworth Teen Center, Marina (three units), Petaluma People Services Center (two units), Police Department, Senior Center, Swim Center, and Water Field Office.
Willdan estimates the total project cost to replace the twenty identified water heaters to be $327,206.44, including a 10% contingency. Incentives from PG&E would total $236,422.40 and incentive from SCP would be $31,000 for a total of $267,422.40. Willdan has identified other potential funding sources (including the California Self Generation Incentive Program) that may close all funding gaps, but in the event those programs are not available or advantageous, staff recommends allocating $59,817.04 toward this project in the event of a worst-case scenario. Costs include the equipment, labor at prevailing wages, any necessary electrical wiring runs, panel upgrades, vents, and custom bases for the unit.”
Mr. Barnacle’s staff bio from his employer, Building Decarbonization Coalition (BDC) stated the following:
“Brian is the Coalition’s Senior Manager of Strategy and Development. He focuses on the intersection of technology, policy, and supply chain strategy, working closely with internal teams and industry experts to improve existing initiatives, expand into new markets, and forge new partnerships.”
As of May 30, 2024, BDC issued the following press release:
“Sacramento, CA – Yesterday, the California Heat Pump Partnership (CAHPP) officially launched with its first convening to bring together state agencies, manufacturers representing more than 90% of the U.S. consumer heat pump market, utilities, and other market actors to help achieve the state’s goal to install six million electric heat pumps by 2030. Launched with a shared vision to catalyze a sustainable, decarbonized future, the public-private partnership will drive forward a clean energy economy and advance California’s climate objectives by propelling widespread heat pump adoption through cross-sector collaboration and strategic partnerships.
“California knows how to scale clean energy. We’ve done this with electric vehicles, solar, wind, and battery storage—and now it’s time to take the benefits of heat pump technology mainstream,” said California Energy Commission Chair David Hochschild. “Heat pumps provide Californians a way to both cool and heat their homes with no pollution. The California Heat Pump Partnership will help government and industry leaders do the barrier-busting necessary to ensure heat pumps are accessible to all Californians.”
“The Building Decarbonization Coalition is uniquely positioned to manage the partnership, and bring together state and industry leaders to rapidly grow the heat pump market in California,” said Terra Weeks, Director for the CAHPP. “Scaling this technology will usher California into a new era of clean electric heating and cooling, and propel the state toward a carbon neutral future.”
The CAHPP will develop a blueprint outlining how to address technical, market, and policy barriers for achieving the state’s heat pump targets. The partnership will also deploy a statewide consumer marketing campaign through The Switch Is On, an initiative launched by the Building Decarbonization Coalition, to educate, inspire, and make switching to electric appliances easier for communities, contractors, and all those who live and work in buildings.
“As California moves toward a carbon-neutral future, it’s crucial to foster close coordination between state and market leaders to achieve our building decarbonization goals,” said California Public Utilities Commission President Alice Reynolds. “The Heat Pump Partnership is a vital step in supporting California’s transition to clean electric heating and cooling. By aligning key stakeholders in the clean energy transition, we can minimize costs and maximize benefits for all Californians, driving us towards a more sustainable future.”
“California has advanced climate and air quality solutions through innovation and collaboration between government, communities, and industry to ensure equitable outcomes,” said California Air Resources Board Chair Liane Randolph. “The heat pump partnership is the latest example of how state agencies and other climate leaders are working together to face the growing threat of extreme heat and the need to decarbonize with action, urgency, and a commitment to addressing the needs of vulnerable Californians.”
California currently has about 1.5 million heat pumps deployed and is on pace to install less than 200,000 heat pumps a year. To close the gap of 4.5 million heat pumps by 2030, heat pump adoption will need to nearly quadruple with about 750,000 units installed annually. Large-scale coordination efforts like the CAHPP are crucial to align major players in the clean energy transition and support California’s climate goals. Scaling heat pump adoption in the world’s fifth largest economy will also act as a global market signal, with the potential of transforming the world’s green economy.
“As a global leader in intelligent climate and energy solutions, Carrier is committed to supporting the installation of six million heat pumps in California’s buildings by 2030,” said Kyle Gilley, Vice President of Government Relations at Carrier. “Electrification continues to be a solution for reducing greenhouse gas emissions and we are proud to be contributing to a greener tomorrow with our high quality, energy efficient, sustainable heat pump systems.”
“The California Heat Pump Partnership represents the public-private collaboration that we need to accelerate the adoption of advanced heat pumps, such as those that utilize inverter technology,” said David Calabrese, Senior Vice President of Government Affairs at Daikin. “As a global leader in providing heat pumps, we are committed to working with the California government, its utilities, the environmental community, and our industry to help meet the state’s six million heat pump target and ensure that this technology is accessible to all Californians.”
The partnership also builds on an agreement made last year by ten of the world’s largest manufacturers, distributors, and suppliers of heating and cooling equipment for buildings to rapidly scale the heat pump market. That agreement outlined commitments to help create manufacturing capacity, enhance efficiency, and incorporate load flexibility to decarbonize California’s buildings.
“As a leading manufacturer serving the California market with efficient electric space, water heating, and pool heat pumps, Rheem is committed to supporting the state’s goals to install six million electric heat pumps by 2030,” said Chris Day, Vice President, Global Product Strategy, Marketing and Training at Rheem. “The objective of the Partnership and Market Advisory Board is to scale heat pump installations through collaboration with the entire supply chain and channel partners. I am excited about the ability of the Partnership to focus the state on the most important policy and market levers to drive heat pump adoption and Rheem’s role in enabling wide-scale building decarbonization.”
“Our company is pleased to participate and contribute its more than twenty years of heat pump water heating expertise to the California Heat Pump Partnership as the state of California embarks on its ambitious goal of installing six million new heat pumps and heat pump water heaters by 2030,” said Joshua C. Greene, Corporate Vice President for Government, Regulatory, and Industry Affairs at A. O. Smith. “Through the leadership of Governor Newsom and the California Energy Commission, these combined efforts will help emphasize the co-benefits that heat pump technology offers—decarbonizing the built environment to help mitigate the impacts of climate change and lowering utility costs that will save consumers money.”
“Decarbonizing the built environment is within reach and comes with improved air quality, lower energy use, and more personal comfort,” said Dana Fischer, Senior Director of Regulatory Strategy at Mitsubishi Electric. “Mitsubishi Electric Trane HVAC U.S. is ready to do our part in achieving ambitious heat pump goals in California. Together we can make changes for the better.”
The California Heat Pump Partnership members include:
Heat pump manufacturers, including A. O. Smith, Bradford White, Carrier, Daikin, Fujitsu General America, Inc., Johnson Controls, Lennox, LG, Mitsubishi Electric, Rheem, and Trane Technologies
Distributor: Ferguson
Electricity providers, including Pacific Gas and Electric, Edison International, Sacramento Municipal Utility District, and Ava Community Energy
Policymakers representing the California Energy Commission, California Air Resources Board, California Public Utilities Commission, and the Office of Governor Gavin Newsom
Innovation leader: Los Angeles Cleantech Incubator
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The California Heat Pump Partnership (CAHPP) is a groundbreaking alliance that brings together leaders in the public and private sectors to rapidly scale California’s heat pump market.”
According to an interactive forum held by BayREN this month:
“California has an ambitious goal of installing 6 million heat pumps by 2030; homeowners can draw on millions of dollars in incentives to switch to heat pumps; and the Bay Area Air Quality Management District (BAAQMD) has adopted rules that will require zero-NOx appliances such as heat pumps. As a result, building departments will see increasing numbers of permit applications for heat pump projects.”
On September 18, 2023, the BAAQMD District sent the following letter to the California Energy Commission. An excerpt stated the following:
“On March 15, 2023 the Air District’s Board of Directors passed amendments to the Building Appliances Rules 9-4 and 9-6, which is the first point-of-sale zero-NOx standards for space and water heating appliances in the country. NOx, or nitrogen oxides, contribute to the formation of ground level ozone and fine particulate matter, in addition to having direct air quality and health impacts. Bay Area emissions from space and water heating appliances are significant, and slightly greater than NOx emissions associated with passenger vehicles or fuel refining facilities. Public health modeling shows that the emissions reductions achieved by these rules will result in health improvements, including potentially avoiding 37-85 premature deaths per year and saving $400-890 million per year in health benefits. In the Bay Area, people of color are most impacted from emissions from space and water heating. Reducing these emissions helps advance environmental justice in the region by improving air quality in overburdened communities. The zero-NOx standards for space heating will phase in starting January 1, 2029…
The Air District strongly encourages the California Energy Commission (CEC) to consider requirements for the replacement of residential central A/C units with heat pumps in the development of the 2025 Building Code Chapter 6. Heat pumps are zero-emission appliances that are consistent with the Air District's zero-NOx and CARB’s proposed zero-emission appliance standards, support the goals of the CEC to increase building energy efficiency cost-effectively, and contribute to the state’s GHG reduction goals. Since heat pumps provide both cooling and heating for space conditioning, the assumption of zero-NOx and zero-emission heating appliance installations upon burn-out of gas furnaces post-2029 in the Bay Area and 2030 statewide should be included in the analysis of the broader costs of the CEC’s decision-making. Residents who install a non-heat pump A/C unit post-2025 and then are required to purchase a zero-NOx or zero-emission heating appliance—most likely a heat pump—upon gas furnace burnout while the A/C unit is still relatively new would incur an avoidable and unnecessary cost burden.
The Air District recommends that the CEC requires the replacement of residential central A/C units with heat pumps in the development of the 2025 Building Code Chapter 6. This will advance coordination and consistency with local clean building efforts, the State’s own active appliance standard rule-making, the State’s 2045 carbon neutrality target, and the State’s goal of installing six million heat pumps by 2030. The Air District looks forward to collaboration in pursuing a cleaner, healthier, and more equitable California.”
Mr. Barnacle ‘s term on the District Board is 02/09/23 - 02/09/25. He is also a Member of the District’s Stationary Source and Climate Impacts Committee.
At the January 24, 2024 California Energy Commission (CEC) Business Meeting, CEC approved an agreement 500-23-002 with Building Decarbonization Coalition for a $9,000,000 contract as follows:
“…authorized by Assembly Bill (AB) 102 (Chapter 38, Budget Act of 2023), to manage a public-private partnership dedicated to achieving Governor Newsom’s goal of installing 6 million heat pumps by 2030 through a consumer technical assistance, education, and outreach program to assist Californians in leveraging federal Inflation Reduction Act incentives and tax credits to decarbonize homes and address heat pump adoption barriers; and…”
Does Councilmember Barnacle’s push to ‘go green’ refer to the climate or stacking hundred dollar bills?
“The stingy are eager to get rich and are unaware that poverty awaits them.”
-Proverbs 28:22