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DECARBONIZATION AND CONDOMINIUM OWNERSHIP: 2030 as the Deadline for Liquid Hydrocarbons

Eneko Iceta Sánchez

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PUBLIC LAW DIVISION

The gradual decarbonization of the building stock has become one of the fundamental pillars of public policy in the field of energy and the environment. In this context, communal heating systems that use liquid hydrocarbons, such as heating oil (gasóleo C), are now at the center of a process of regulatory transformation that directly affects homeowners’ associations, especially in regions such as the Basque Country, where this type of system has historically been common in residential buildings.

Heating oil, traditionally used in central boilers because of its availability and high calorific capacity, nevertheless has a significant environmental impact, mainly due to its emissions of carbon dioxide and polluting particles. This situation has prompted a gradual shift in the legislator’s approach, aimed at replacing these fuels with more efficient and environmentally friendly energy sources.

Within the Autonomous Community of the Basque Country, Law 4/2019 on Energy Sustainability constitutes the central pillar of this strategy, establishing clear objectives for reducing the consumption of fossil fuels and improving energy efficiency in buildings, both public and private.

Although the law does not immediately and generally require the removal of all existing installations powered by liquid hydrocarbons, it does introduce a series of limitations and obligations that, in practice, inevitably lead to their gradual replacement.

In particular, Article 42 of the aforementioned law establishes that, no later than 31 December 2030, energy systems that use liquid hydrocarbons as a power source must have been replaced by more environmentally friendly energies.

Likewise, the installation of new boilers powered by this type of fuel is conditional upon the absence of viable alternatives based on renewable energy, while existing installations are destined to disappear when they reach the end of their useful life, suffer structural breakdowns, undergo major building renovations, or when there is an intention to access public aid programs for energy rehabilitation.

In all these cases, continuing to use liquid hydrocarbons ceases to be a legally viable option, forcing homeowners’ associations to choose alternative systems, such as high-efficiency natural gas boilers, biomass installations, aerothermal systems, or connection to district heating networks.

This new regulatory scenario has been accompanied by a significant evolution in the interpretation and application of condominium ownership law.

Traditionally, one of the main obstacles to replacing central boilers lay in the requirement of unanimity for adopting community resolutions, which allowed a minority of owners to block decisions of clear general interest. However, legislative changes have considerably relaxed this regime.

When a homeowners’ association proposes replacing an oil-fired boiler with a more efficient system, while maintaining central heating as a common service, the action does not entail a structural alteration of the community regime, but rather the modernization of an existing installation, aimed at adapting it to current technical, regulatory, and environmental requirements. The common service is not eliminated; it is
updated, which justifies a more flexible majority regime.

In this regard, Article 17.7 of the Horizontal Property Law allows these resolutions to be adopted without the need for unanimity. On first call, it is sufficient to have the favorable vote of the majority of all owners who, in turn, represent the majority of the participation quotas.

On second call, the requirement is reduced even further: a majority of those present is sufficient, provided they represent more than half of the quotas present. This regulation follows a clear logic: to prevent the renewal of installations necessary for the proper functioning of the building and compliance with current regulations from being paralyzed by disproportionate requirements.

In short, everything indicates that in the coming years there will be a significant increase in the approval of special assessments in homeowners’ associations in the Autonomous Community of the Basque Country, as a direct consequence of the legislator’s objective that, before 31 December 2030, all energy systems based on liquid hydrocarbons, such as heating oil boilers, be replaced.

In addition, a substantial increase is expected in applications for public aid aimed at improving energy efficiency, which are set to play a key role in partially financing these actions.