CITY COUNCIL STAFF REPORT – CONSENT AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CHRISTABEL SORIA MENDOZA, MANAGEMENT ANALYST I
DATE: JANUARY 15, 2024
SUBJECT: SECOND READING OF ELECTRIC READINESS ORDINANCE (REACH CODE) TO AMEND SECTION 15.19.030 OF THE
ATHERTON MUNICIPAL CODE
CEQA: Adoption of the Ordinance is not subject environmental review under the California Environmental Quality Act (CEQA) in that it is categorically exempt under the CEQA Guidelines, Section 15308, Actions by Regulatory Agencies to Protect the Environment.
RECOMMENDATION
Staff recommends that the City Council conduct the second reading and adopt an ordinance that would amend Chapter 15.19 of the Atherton Municipal Code to align with the 2022 California Green Building Standards Code, incorporating local modifications that enhance electric-ready requirements for new construction and major alterations.
BACKGROUND
The Town adopted the 2022 California Green Building Standards Code (CALGreen), as outlined in Chapter 15.19 of the Atherton Municipal Code, which regulates construction practices to improve public health, safety, and general welfare by promoting sustainable building practices.
The current code integrates environmentally responsible standards, including energy efficiency measures, and applies to all new residential buildings and major alterations within the Town.
The City Council expressed support for local amendments that promote electric readiness in new homes and renovations, ensuring readiness for future electrification. This aligns with State and regional goals to reduce reliance on natural gas and transition to all-electric buildings, as outlined in the Town’s Climate Action Plan. The proposed ordinance expands electric-readiness requirements for new residential construction and major alterations, including infrastructure for future electric appliances such as heat pumps, electric water heaters, and electric cooking appliances.
At the December 18, 2024 City Council meeting, several key revisions to the draft ordinance were presented and discussed. Staff made updates to the proposed ordinance to address Council feedback and improve clarity and feasibility. The revisions included:
1. Clarifying electric readiness requirements for new construction and major alterations to align with the upcoming 2025 California Codes.
2. Expanding electric readiness requirements to include new construction pool/spa installations, outdoor cooking areas, and indoor/outdoor fireplaces, with specific infrastructure requirements such as conduit-only installation for fireplaces, exceeding the 2025 California Building Codes.
3. Addressing panel and service upgrade requirements.
4. Refining circuit and physical space specifications for kitchen, laundry room, and utility room alterations, modifying the trigger from any renovation involving these spaces to any alteration to the branch circuit wiring serving these appliances.
The Council unanimously passed the first reading of the ordinance (5-0) and expressed support for its goals and revisions. Minor changes were requested to be incorporated before the Second Reading. Feedback included concerns about the term "major alterations" in the staff report, which staff clarified refers to specific triggers, primarily those affecting the branch circuit wiring of the appliance in question. Additionally, concerns were raised about the utility room definition, specifically the phrase "... or electrical controls equipment," which staff agreed to remove as it was deemed non-consequential.
Additional revisions requested by the Council include:
1. Adding a purpose statement at the beginning of the ordinance to help the community understand the intent of the reach code and its scope.
2. Changing the alteration definition from "any construction or renovation" to "applicable construction or renovations."
3. Tweaking the utility room definition to provide greater precision.
ANALYSIS
Staff developed the proposed ordinance in response to Council direction on establishing electric readiness standards. The proposed ordinance is modeled on the Electric Readiness Model Reach Code, created in collaboration with Peninsula Clean Energy (PCE) and Silicon Valley Clean Energy (SVCE). The ordinance has been refined based on Council feedback to enhance clarity and feasibility, and it includes new requirements for electric readiness, such as dedicated electrical panels and conduit for future electric systems, with special attention to areas like kitchens, laundry rooms, and utility rooms during major alterations.
As revised, the ordinance incorporates best practices that are both practical and supportive of the Town's goal to meet Statewide electrification mandates. It emphasizes cost efficiency by encouraging electrical readiness at key trigger points, which is significantly less expensive than future retrofitting costs. This approach avoids the need for immediate appliance replacements, reducing potential disruptions and providing homeowners with more flexibility.
As the ordinance does not specify a dollar threshold for triggering electric readiness, it instead focuses on the most economical points during construction and renovation to install the necessary infrastructure. Community outreach and education will be implemented to ensure residents understand the new requirements before enforcement begins. The Community Development Department will oversee compliance during the building permit review process to ensure that the updated code is followed.
By incorporating electric-readiness requirements at key stages of the construction process, the ordinance positions Atherton to meet future electrification mandates while minimizing long-term retrofit costs for homeowners. It promotes a more energy-efficient, healthier community by reducing reliance on gas-powered appliances and supports the transition to all-electric buildings.
FISCAL IMPACT
The adoption of the Reach Code Ordinance will have minimal fiscal and resource impacts on the Town. Costs associated with implementing the new ordinance will include staff training, the development of updated informational materials, and public outreach efforts to inform residents and developers of the new requirements. These expenses are expected to be modest and can be absorbed within the Town’s existing budget allocations. No additional funding or resources are anticipated to be necessary for the successful implementation of the ordinance.
GOAL ALIGNMENT
This report and its contents are in alignment with the following Council Policy Goals:
• Goal D – Enhance Environmental Sustainability
• Goal F – Be Forward-Thinking, Well-Managed and Well-Planned
POLICY FOCUS
The proposed ordinance ensures that new construction and major alterations are equipped for future electrification, reducing retrofit costs for homeowners while advancing the Town’s sustainability and public health objectives. It also aligns with anticipated state and regional electrification and decarbonization mandates, reinforcing the Town’s commitment to proactive climate action.
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically.
ATTACHMENTS
1. Existing Ch. 15.19 Green Building Code of the Atherton Municipal Code
2. Proposed Ordinance Language to Revise Section 15.19.030