CalMTA is pursuing a potential market transformation (MT) idea that seeks to transform the market for more efficient water heating technologies in the foodservice industry. Barriers to that transformation include the high upfront costs of efficient electric water heating systems, outdated sizing guidelines that do not reflect present-day efficiencies and leading to systems two to four times oversized, the need for a holistic approach to complex needs and system designs, and the low-margins foodservice businesses.

Nevertheless, California’s statewide decarbonization goals and regulatory focus, such as the zero-emission space and water heater standards being considered by the California Air Resources Board (CARB), will likely drive higher requirements for electrification and efficiency in the coming years. CalMTA is pursing strategic interventions that include, engaging with leading manufacturers, supply chains, and key active market partners to ensure affordable, tailored product availability for adoption of a system-level approach to water heating as well as working with industry leaders to update water heating sizing guidelines and supporting efforts already underway in California, including Title 20 and Title 24, to ensure that water and electric-efficient appliances and design approaches become the standard in California’s foodservice industry.

Additionally, CalMTA will seek specific strategies focused on environmental and social justice (ESJ) communities, such as identifying financing mechanisms and bundling options that reduce the upfront costs collaborating with manufacturers, vocational schools, and community colleges to influence workforce development initiatives that could empower ESJ communities to engage in high-quality jobs in this market.

CalMTA envisions that by 2045 efficient electric water heating systems capable of minimizing peak demand are the water heating system of choice in both new construction and existing foodservice facilities.