Los Angeles Reduces Green Energy Goal by a Decade

Los Angeles is fast-tracking its green energy plan. The City Council approved a plan for 100% renewable energy by 2035. That’s inline with President Biden’s goal, and a decade sooner than LA’s previous plan. The City Council decision comes after a comprehensive study that looked at everything from greenhouse gas emissions, public health, and cost versus benefit analysis to electricity demand, rooftop solar, and other renewable energy options. Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review. LA hopes to “set the stage for the country” and the rest of the world with LA100. (1) The transition would create about 9,500 clean energy jobs and cost between 57 and $87 billion, but according to LADWP General Manager Martin Adams, much of the investment would also coincide with infrastructure replacement that is already on the city’s “to do” list. He says: “When this study started three-and-a-half years ago… the idea was to be where we want to be by 2045. So we have now shaved a decade off that timetable and we know we have a roadmap that will get us to 100% clean energy by 2035.” Adams says the city is going to “take this very seriously and make this happen.” And Councilman Mitch O’Farrell says that “LA100 is not a utopian gesture. It is a work plan for a world in trouble.” Code Red for Humanity This comes as California firefighters are once again battling three massive wildfires, and just a few weeks after the Intergovernmental Panel on Climate Change published a report called “Code Red for Humanity.” (2) The report states that global warming is “unequivocally caused by human activities” and warns that the average world temperature will likely hit a dangerous threshold within the next 20 years. That threshold is about 2.7 degrees Fahrenheit hotter than a pre-industrial average and is generally viewed as the hottest that humanity could handle. Climate scientists say average temperatures are already 2 degrees hotter, and we are already seeing the impact of that with more extreme weather-related events and wildfires. LA100 Renewable Energy Study Los Angeles partnered with the National Renewable Energy Laboratory to complete the study. (3) It shows that LA can hit an 84 to 100% clean energy goal by 2035 with a 76 to 100% decline in greenhouse gases. Results show the economic disruption would be minimal compared to the creation of jobs, economic output, public health benefits, and greenhouse gas reductions. The transition will require the shutting down of gas-operated power plants, and the massive adoption of solar and wind energy along with measures to improve energy efficiency, and energy storage. One big change will be the need for rooftop solar on homes and multi-unit buildings. The report says that the city has more than 13 gigawatts of solar rooftop potential. Private homes and multi-family buildings account for more than half of that potential, but off-site green energy production and energy storage will be needed to supply enough electricity to multi-unit buildings. LA100 Equity Strategies Another aspect of the plan is to make sure that everyone shares in the benefits, despite income levels. Policy officials say that will require “intentionally designed policies and programs” to ensure a fair distribution of the green energy benefits. A study on “Equity Strategies” was launched in July. (4) It looks at: 1 - Access to these green energy programs 2 - Local power grid upgrades 3 - Assistance for renter participation in these programs 4 - Charging stations for electric vehicles, and 5 - Impacts to housing and transportation, among several other issues. Adams says: “As LADWP expands these programs and adds many more, we must ensure that customers who are impacted by poor air quality, and have the least ability to afford higher electric bills, are able to benefit from the clean energy transformation.” The announcement puts Los Angeles in the forefront of a nationwide effort to address climate change. The LA County website has a chart that shows how many days a year the county hits temperatures over 95 degrees, and a forecast for an increase in those ultra-hot days if we don’t take action to slow climate change now. (5) If you’d like to read more about this, check for links in the show notes at newsforinvestors.com. And please remember to hit the subscribe button, and leave a review! You can also join RealWealth for free at newsforinvestors.com. As a member, you have access to the Investor Portal where you can view sample property pro-formas and connect with our network of resources, including experienced investment counselors, property teams, lenders, 1031 exchange facilitators, attorneys, CPAs and more. Thanks for listening. I'm Kathy Fettke. Links: 1 - https://www.dailynews.com/2021/09/01/la-votes-for-100-renewable-energy-by-2035-a-decade-sooner-than-planned/ 2 - https://www.reuters.com/business/environment/un-sounds-clarion-call-over-irreversible-climate-impacts-by-humans-2021-08-09/ 3 - https://www.nrel.gov/docs/fy21osti/79444-ES.pdf 4 - https://www.ladwpnews.com/ladwp-launches-groundbreaking-la100-equity-strategies-initiative/ 5 - http://publichealth.lacounty.gov/eh/climatechange/ExtremeHeatNClimateChange.htm