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Ensuring an Equitable and Sustainable Future
The District has committed to reduce total greenhouse gas emissions (i.e., climate change pollution)
by 60% of baseline emission levels by 2030 and to reach net-zero emissions by 2045. However, infrastructure updates and energy dependency patterns must change if the city is to realize these goals. After the D.C. Council approved the CleanEnergy DC Omnibus Amendment Act of 201856 — one of the country’s most aggressive and impactful clean energy actions to date — the PSC recognized the need for stakeholders to file electrification studies. These studies would be able to identify potential pathways to reduce emissions while considering the equity implications of current and future decarbonization efforts. The commitment to realizing a sustainable and equitable energy future was exemplified through an OPC-commissioned critical study, the “Equity Assessment of Electrification Incentives in the District of Columbia.”
The Office seized this opportunity to champion not just the rights of consumers but also the accessibility of renewable energy in vulnerable communities that are already grappling with the mounting pressure of rising energy costs.
Equitable Electrification: Bridging the Gap
The OPC-commissioned report,57 prepared in December 2021 by the Applied Economics Clinic (AEC), marked a significant milestone in the pursuit of a more sustainable and equitable energy future. This study delved into the concept of “equitable electrification,” a phrase that describes a gradual transition away from fossil fuels while also considering the layers of impact of such a move. Electrification involves switching from the use of fossil fuel–powered stoves, boilers, cars, and buses to those that run on electricity.
To ensure that electrification programs benefited the District’s most vulnerable residents, OPC worked closely with AEC to establish a D.C.-specific definition for “environmental justice community.” These include communities that are more likely to be near environmental hazards, are disproportionately exposed to air pollution, and withstand the worst of climate change. Demographic analysis revealed that a staggering 27% of the District’s total population resided within environmental justice communities.
Understanding the Energy Burden
These studies underscored yet another stark reality: the glaring inequity in the distribution of energy costs. While households of varying sizes and energy consumption patterns paid the same energy rates, households with lower incomes bore the burden of disproportionate costs. For instance, higher-income households spent 2.4% of their annual income on energy costs, whereas lower-income households spent a staggering 7.2% of their annual income on energy costs, leaving less for other essential expenses. To put it in hard numbers, the same $300 energy bill for two households earning $50,000 and $150,000, respectively, highlights the potential impact of such a disparity.
A deeper dive revealed that 1 in 14 District residents fell into the category of “severely” energy-burdened, which is defined as paying more than 10% of their income toward energy expenses. These findings were alarming and begged the question of who exactly would pick up the bill to convert and modernize the energy systems for a more sustainable future.
54 OPC’s Journey to Protect Utility Consumers