MURIEL BOWSER MAYOR December 11, 2024 The Honorable Phil Mendelson Chairman Council of the District of Columbia 1350 Pennsylvania Avenue, N.W., Suite 504 Washington, DC 20004 Dear Chairman Mendelson: Enclosed for consideration by the Council is proposed emergency legislation entitled the “Climate Commitment Clarification Emergency Declaration Resolution of 2024” and the “Climate Commitment Clarification Emergency Amendment Act of 2024” This legislation will clarify that the Department of General Services (DGS) is allowed to repair and replace units and component parts of fossil fuel-based heating and cooling systems. The current law mandates that the District may not install fossil fuel-based space or water heating appliances. The law is intended to advance electrification, decreasing fossil fuel consumption across the District. It is unclear, however, how DGS will continue to maintain existing fossil fuel- based systems without replacing each system through a modernization or planned whole system HVAC replacement project. A modernization or whole system HVAC replacement project for any site requires multiple years to formulate and request a budget; develop, solicit, and evaluate proposals; perform design review; engage stakeholders; swing occupants to an empty building; and build or install the project -- all of which must be strategically planned. To date, the District has over 300 fossil fuel-based space heating appliances alone. There is insufficient time, budget, and materials to switch every building to an all-electric system. There would also be significant embodied carbon emissions associated with doing so. Hundreds of fossil fuel-based systems possess many additional years of useful life to provide heating to the District through the winter season and beyond. To wisely steward the District government’s limited resources and achieve the useful life of existing systems, DGS will replace fossil fuel-based systems with all electric once these systems are beyond repair or when deemed fully inoperable and appropriate for HVAC replacement. Approval of the enclosed emergency declaration and approval of the emergency legislation will facilitate the ongoing maintenance of existing fossil fuel-based systems throughout the District. I look forward to your prompt and favorable consideration of this resolution. In order to facilitate a response to any questions you may have, please have your staff contact Director Delano Hunter. Sincerely, Muriel Bowser Enclosures ~ ~ 3 at the request of the Mayor 4 5 6 A BILL 7 8 9 10 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 11 12 13 14 15 To amend, on an emergency basis, the District Department of the Environment Establishment Act 16 of 2005 to clarify that this act does not apply to the replacement of components or units of 1 7 existing space or water heating systems that rely on the combustion of natural gas, oil, or 18 other fossil fuels. 19 20 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 21 act may be cited as the "Climate Commitment Clarification Emergency Amendment Act of 22 2024". 23 Sec. 2. Section 109e(a) of the District Department of the Environment 24 Establishment Act of 2005, effective September 21, 2022 (D.C. Law 24-176; D.C. 25 Official Code§ 8-151.09e(a)), is amended as follows: 26 (a) The existing text is designated as paragraph (1). 27 (b) Paragraph (1) is amended by: 28 (1) Striking the word "appliances" and inserting the word "systems" in its 29 place; and 30 (2) Striking the word "appliance" and inserting the word "system" in its 31 place. 32 (c) A new paragraph (2) is added to read as follows: “(2) This subsection does not apply to the replacement of components or 33 units of existing space or water heating systems that rely on the combustion of natural 34 gas, oil, or other fossil fuels at the site of the system.”. 35 Sec. 3. Fiscal impact statement. 36 The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal 37 impact statement required by section 4a of the General Legislative Procedures Act of 1975, 38 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code §1- 301.47a). 39 Sec. 4 Effective date. 40 This act shall take effect following approval by the Mayor (or in the event of veto by the 41 Mayor, action by the Council to override the veto), and shall remain in effect for no longer than 42 90 days, as provided for emergency acts of the Council of the District of Columbia in section 43 412(a) of the District of Columbia Home Rule Act approved December 24, 1973 (87 Stat. 788; 44 D.C. Official Code §1- 204.12(a)). 45 Government of the District of Columbia Office of the Chief Financial Officer Glen Lee Chief Financial Officer 1350 Pennsylvania Avenue, NW, Suite 203, Washington, DC 20004 (202)727-2476 www.cfo.dc.gov MEMORANDUM TO: The Honorable Phil Mendelson Chairman, Council of the District of Columbia FROM: Glen Lee Chief Financial Officer DATE: November 26, 2024 SUBJECT: Fiscal Impact Statement – Climate Commitment Clarification Emergency Amendment Act of 2024 REFERENCE: Draft bill provided to the Office of Revenue Analysis on November 22, 2024 Conclusion Funds are sufficient in the fiscal year 2025 through fiscal year 2028 budget and financial plan to implement the bill. Background Beginning January 1, 2025, current law 1 prohibits the District from installing, in District-owned buildings, space- or water-heating appliances that rely on the combustion of natural gas, oil, or other fossil fuels at the site of the appliance, except in cases where compliance would be technically infeasible. The bill modifies the law to apply to the installation of building systems, not the individual components or units within existing systems. Financial Plan Impact Funds are sufficient in the fiscal year 2025 through fiscal year 2028 budget and financial plan to implement the bill. Narrowing the application of the requirement from all components of a building system to the replacement of the whole system does not have an added cost. 1 D.C. Official Code § 8-151.09e(a). ______________________________________________________________________________________________________ 1350 Pennsylvania Avenue, N.W., Suite 409, Washington, D.C. 20004 Phone (202) 735-7589 Email: benjamin.moskowitz1@dc.gov GOVERNMENT OF THE DIST RICT OF COLUMBIA Office of the Attorney General BRIAN L. SCHWALB A TTORNEY GENERAL Legal Counsel Division TO: Tomás Talamante Director Office of Policy and Legislative Affairs FROM: Ben Moskowitz Acting Deputy Attorney General Legal Counsel Division DATE: November 20, 2024 RE: Legal Sufficiency Review of Draft Legislation, the “Climate Commitment Clarification Emergency Amendment Act of 2024” and the “Climate Commitment Clarification Temporary Amendment Act of 2024”, and Draft Resolution, the “Climate Commitment Clarification Emergency Declaration Resolution of 2024” (AE-24-397) This is to Certify that this Office has reviewed the above- referenced draft legislation and draft resolution and found each to be legally sufficient. If you have any questions in this regard, please do not hesitate to call me at (202) 735-7589. _________________________________ Ben Moskowitz