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Bill Banning Natural Gas in New Construction Passes in Washington House

In the lush landscapes of Washington State, where the skyline is often painted with the silhouettes of evergreen trees and modern buildings, a new legislative proposal is stirring the waters of the real estate and construction industries.

House Bill 1589, a piece of legislation that has successfully navigated its way through the Washington State House and is now making its journey through the Senate, could herald a monumental shift in the way new homes are built and powered in certain parts of this picturesque state.


The Bill in Detail

House Bill 1589 is not a blanket ban on natural gas across the state. Instead, it targets a very specific scenario: the provision of natural gas services to new customers, particularly those who would be serviced by Puget Sound Energy (PSE), the behemoth utility serving over 500,000 retail natural gas customers in western Washington. According to the bill, no large gas company meeting this customer threshold as of June 30, 2023, may extend gas services to new commercial or residential buildings that had not applied for such services by this cutoff date.



This legislative move, if it comes to fruition, effectively draws a line in the sand, signaling the end of natural gas hookups for new constructions in PSE's service areas from June 1, 2024, onwards. Exemptions are noted, including medical facilities and government establishments, but the overarching message is clear: a significant pivot towards electrification and away from fossil fuels is on the horizon for parts of Washington.


Implications for the Real Estate and Construction Industry

The implications for the real estate and construction sectors are profound. Developers and builders in the affected regions may soon find themselves navigating a new landscape, where electric heating and appliances become the standard for new homes. This shift could influence everything from construction costs and timelines to market preferences and sustainability standards.



A Call for Balance: Industry Perspectives

Critics and proponents of the bill alike are voicing their concerns and support. Avista, the largest natural gas provider in eastern Washington, serves fewer than 500,000 customers and thus falls outside the bill's current scope. However, their statement, voiced by Josh DiLuciano, Vice President of Energy Delivery, encapsulates the broader industry apprehension: the need for a balanced approach to environmental stewardship that does not compromise the reliability and affordability of energy.


Looking Forward: The New Landscape of Washington's Built Environment

As House Bill 1589 continues its legislative journey, its potential to reshape the fabric of Washington's construction industry cannot be understated. This is not merely a debate about energy; it's about the future of how we build and live in this verdant corner of the United States. For stakeholders in the real estate and construction fields, the coming months will be critical in shaping strategies and adapting to what may well be the dawn of a new era in Washington State's built environment.


Do you think more Natural Gas bans are on the horizon nationwide? Leave a comment below or discuss this with a colleague in an upcoming CE Class!

References

KREM.com. (1 February 2024). Would a bill ban natural gas in Washington? Here's what we can Verify.

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