I-2066 passage ensures individuals and businesses may access natural gas
Supporters of Initiative 2066, which reined in a new state law pushing incentives to alternative energy sources, worried that the accompanying limits on natural gas were too much too soon — or shouldn’t exist at all. Its passage with 51.6% of the vote repealed legislative action that incentivized alternative energy sources to reduce greenhouse gas emissions.
The initiative lets individuals and businesses choose their energy source without repercussion. State and local governments cannot place limits, penalize, or enact policies that phase out natural gas use in buildings.
Proponents of the initiative said builders and residents alike need more options.
“What happens when they ban natural gas for homes and businesses? Demand for electricity will rise,” said the Building Industry Association of Washington (BIAW) website in its argument for the only one of four statewide initiatives approved by voters. “Add in increased demand driven by the state’s ban on the sale of new gas-powered vehicles in 2030, and the problem gets worse. How will our utilities produce all this new electricity? Hydropower, solar and wind can’t produce enough reliable energy to keep up.”
Cities whose greenhouse gas reduction goals include phasing out natural gas will need to revise their plans, according to the Association of Washington Cities. Around 45% of Puget Sound Energy’s (PSE) power already comes from clean energy sources, like wind and hydropower, according to 2023 data from PSE.
BIAW worked with Let’s Go Washington, a political action committee, to get I-2066 on the ballot. They gathered the more than half million signatures needed to make the ballot in seven weeks, said Janelle Guthrie, who oversees communications at BIAW, in an email. Founded by millionaire Brian Heywood, Let’s Go Washington proposed the three other initiatives on the ballot, all of which failed.
Eliminating incentives
Opponents of I-2066 are worried its passage is taking away incentives to switch to clean energy sources and placing the burden of maintaining outdated systems on low-income households.
“House Bill 1589, which I-2066 repeals, really did give Puget Sound Energy the ability and tools to help folks living on low incomes make a transition,” said Caleb Heeringa, a spokesperson for No I-2066. It would “help them access additional rebates for electric appliances when their appliances break, etc., and Initiative 2066 really throws a wrench in all those plans.”
The initiative removes requirements to replace natural gas with electric energy through “alternatives to known and planned gas infrastructure projects, including nonpipeline alternatives, rebates and incentives, and geographically targeted electrification,” according to section 4h of I-2066.
Homes are still required to meet a certain amount of energy credits, earned by using renewable energy. But heating a medium-sized dwelling using electric appliances can cost $30,744 compared to the $13,743 it costs with natural gas, according to 2021 RSMeans data, an assessment by BIAW.
Regardless of whether someone rents or owns their home, a natural gas ban would have increased costs, Guthrie said in an email.
“Anything that increases the cost to build or maintain a home or commercial building like an apartment would naturally cause rents to increase because the landlord would need to pass some of the costs to the renter,” Guthrie said in an email. “[Initiative] 2066 restores incentives for energy-efficient gas appliances while retaining other incentives for electrification.” She noted that most energy efficiency rebates for consumers in Washington are provided by the federal government, so I-2066 will not affect those.
Around 5% of voters left I-2066 blank on their ballots, potentially signaling it was confusing to voters, Heering said. The initiative affects many building codes and he contends it could have a significant impact on Washington’s ability to meet its long-term climate goals.
“There’s a pretty clear case to be made that this initiative touches a whole range of subjects, which would make it unconstitutional,” Heeringa said. “Multiple members of the non [I-2066] campaign are looking into their legal options to make sure that an illegal initiative isn’t allowed to stand.”
No legal challenge has been filed, but the state legislature could revisit the bill that was repealed by I-2066 and address some of the concerns raised by opponents.
Six of the 39 counties voted “no” on I-2066, including Whatcom County, according to Washington’s secretary of state’s website. The initiative will take effect on Dec. 5, 2024 when the election results are certified.
— By Jenna Millikan