California is facing a severe housing shortage. And in some places, namely Los Angeles, the need for new construction is even more dire because of recent wildfire destruction.
So in late June, Gov. Gavin Newsom (D) prioritized faster construction over cleaner buildings with a law that pauses updates to state building codes for six years. It’ll also stop local jurisdictions from enacting their own stricter standards, Canary Media’s Alison F. Takemura reports. The move comes after LA suspended its all-electric building requirements to speed its post-wildfire rebuilding efforts.
As it stands, California already has some of the strongest efficiency standards in the country. But this law will make it harder for progress to continue, stopping municipalities from implementing new rules that could, for example, encourage heat-pump adoption in multifamily buildings or mandate all-electric renovations.
And it may not even help the state cut home prices or speed construction. A 2015 study showed no significant correlation between California’s efficient building codes and construction costs, while a 2019 analysis estimated that building an all-electric home cost less than a gas-powered home in most parts of the state. A more efficient home also typically means lower power bills, which translate to even more savings.
On the other coast, a Massachusetts town is further boosting the case for efficient building codes, Canary’s Sarah Shemkus reports. In 2024, the Boston suburb of Lexington banned gas hookups in new construction and adopted an efficiency-boosting building code. The move hasn’t stymied development: Over the last two years, the town of 34,000 has still permitted around 1,100 new units of housing, 160 of which will be affordable. That aligns with a 2022 RMI study that found all-electric homes in Boston are slightly less expensive to build and operate than mixed-fuel homes.
Another state will soon test the balance between affordable and clean construction, Alison reports. New York just approved an all-electric building code that bars gas and other fossil fuels in most new buildings. State officials estimate the new standards will end up raising construction costs, but the lowered energy bills they lead to should offset that increase within a decade.
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Solar for none?
The U.S. EPA says it will roll back more federal clean energy funding, this time targeting $7 billion earmarked for states, cities, tribes, and nonprofits under the Solar for All program. The program was created under the Biden administration to help low- and moderate-income households tap into solar power that can help lower their electricity bills.
The clawback comes just as grant awardees were starting to spend their federal dollars. Just this week, Georgia launched a program to let homeowners lease rooftop solar panels for free. Colorado is meanwhile finalizing three programs to boost solar deployment and workforce development. And as Canary Media’s Jeff St. John reports, burgeoning projects all across the country could lose their funding, threatening new power generation that the U.S. needs if it wants to lower electricity prices and meet rising demand.