CA Review GH
Meeting Date: Sept. 12, 2023
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Katie Hentrich, Senior Program Manager
[email protected], 442-339-2623
Subject: Follow-Up on Electrification of New Buildings in Carlsbad Districts: All
Rec
ommended Action
Receive information on electric-preferred reach codes, review options and provide direction to staff on how to proceed with the next draft Climate Action Plan Update in 2023.
Executive Summary
Staff provided the City Council with an update on the possibility of permitting only electric power, and not natural gas, in new buildings in Carlsbad on July 11, 2023. That update included information about an “electric-preferred” reach code, as shown in Exhibit 2. A reach code is a locally adopted building code that “reaches” above or beyond what the California Building Code already requires.
The City Council directed staff to return on Sept. 12, 2023, with information on:
• Other cities that have an electric-preferred reach code and models the city could follow • How the city could potentially develop an electric-preferred reach code • Options to develop an electric-preferred reach code, including costs and a timeline for its development
This report provides the information the City Council requested along with additional background on how the state plans to update the California Building Code with more energy- saving requirements.
Explanation & Analysis
Background
• The City of Carlsbad adopted a Climate Action Plan, or CAP, in 2015 that outlines strategies and policies to reduce greenhouse gas emissions. • Staff presented the fifth CAP Annual Report to the City Council on April 19, 2022, followed by a report on the electrification of new buildings. At that meeting, the City Council approved a motion directing staff to, “research options to add an ordinance addressing electrification in new buildings in the City of Carlsbad to the next Climate Action Plan draft in 2023.”
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• Staff then worked with the Energy Policy Initiatives Center at the University of San Diego School of Law, or EPIC, to develop a report which provided three options for electrifying new buildings in Carlsbad, that is, making them electric only by adopting a natural gas moratorium prohibiting permits and installations of natural gas plumbing, adopting an electric-only code so that permits would not be issued for mixed-fuel buildings that are newly constructed, or adopting an electric-only code with additional efficiency requirements.
• EPIC’s report was presented to the City Council on May 9, 2023. Staff also briefed the City Council on a decision by the U.S. Ninth Circuit Court of Appeals that has preempted a local government’s power to enact electric-only building codes and natural gas moratoriums, as detailed below, effectively precluding the city from pursuing any of the three options presented in the EPIC report. The City Council asked staff to return with additional information, including options for an “electric preferred” reach code at the July 11, 2023, City Council meeting.
• Staff provided the information the City Council requested at the July 11 meeting, and the City Council approved a motion directing staff to return with this report. • During the period between the City Council’s adoption of the Climate Action Plan in 2015 and the fifth CAP Annual Report in 2022, the State of California has continued to adopt Energy and Green Building Codes on a triennial basis that have considerably increased building regulations to help meet the state’s aggressive greenhouse gas reduction goals consistent with the California Climate Commitment. 1 Ninth Circuit ruling
The Ninth Circuit’s ruling, California Restaurant Association v. City of Berkeley, arose from a challenge to the City of Berkeley’s 2019 ordinance prohibiting natural gas piping in new buildings, with limited exceptions. In its opinion, the Ninth Circuit Court held that Berkeley’s ordinance was preempted by the federal Energy Policy and Conservation Act. Essentially, the court concluded the federal law prohibits a local ordinance, like Berkeley’s, that directly or indirectly prevents covered gas appliances from using gas.
On May 31, 2023, the City of Berkeley filed a petition for a rehearing of the case by the entire court, rather than the three-judge panel that issued the opinion. If the rehearing petition is granted, the case will be heard by an 11-judge panel and potentially take up to a year or more to resolve. Once the Ninth Circuit has made a decision on the rehearing petition, the parties may seek United States Supreme Court review, which could take an additional year or two to resolve. In the interim, the court’s ruling is binding on the City of Carlsbad, unless the Ninth Circuit Court or the U.S. Supreme Court overturn the decision.
1 The California Climate Commitment is a comprehensive plan to cut air pollution by 71%, reduce greenhouse gas emissions by 85% by 2024, transition away from fossil fuels, deliver clean, reliable and affordable energy, create prosperous communities and protect Californians from extreme heat, wildfires and drought.
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Green building standards
The State of California has adopted green building2 standards to foster sustainable development and achieve the state’s ambitious climate and air quality goals. The state’s green building standards – the regulations that some cities have chosen to exceed through reach codes – are found in two parts of the building code: Part 6, the Energy Code, and Part 11, the Green Building Code.
• Building energy efficiency standards are implemented through the Energy Code, which are updated every three years, and are focused on reducing energy consumption. The California Energy Commission has the statutory obligation to set these energy and water conservation design standards for new residential and nonresidential buildings. • The Green Building Code, also known as CALGreen, is focused on reducing environmental impacts and encouraging sustainable construction in residential and nonresidential buildings. It is adopted by the California Building Standards Commission.
These standards are updated every three years, most recently in 2022. The state is already considering a wide range of additional energy-saving requirements for the 2025 update and has begun conducting public workshops, where the public can propose additional energy efficiency measures for consideration.
The California Energy Commission adopted the 2022 Energy Code for newly constructed and renovated buildings last year. The update focused on four key areas:
• Mandating electric-ready requirements for single-family homes to position owners to use cleaner electric heating, cooking and electric vehicle charging options • Encouraging electric heat pump technology for space and water heating, which consumes less energy and produces fewer emissions than gas-powered units • Expanding solar photovoltaic system and battery storage standards to make clean energy available onsite and complement the state’s progress toward a 100% clean electricity grid
• Strengthening ventilation standards to improve indoor air quality In most buildings, the 2022 Energy Code baseline assumes that space heating or water heating will be provided by heat pumps, though buildings may be constructed to use gas, in which case they must install other efficiency and/or renewable measures to offset the incremental energy and emissions impacts of the gas loads. Combined, the requirements described above make the transition to all-electric construction simpler and more affordable. Based on the Energy Commission’s estimates, the 2022 Energy Code is, “estimated to provide $1.5 billion in consumer benefits and reduce 10 million metric tons of GHGs, equivalent to taking nearly 2.2 million cars off the road for a year.”
The City Council adopted the 2022 California Building Standards Code and related codes on Nov. 8, 2022.
2 Green building is the practice of creating structures and using healthier and more -resource efficient models of construction, operation, maintenance and demolition.”
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Local jurisdictions with electric-preferred reach codes applicable to the 2019 Energy Code Several jurisdictions had electric preferred reach codes above and beyond the requirements of the 2019 California Building Code, the version before the code adopted in 2022. The complete list of cities and counties that adopted reach codes exceeding the 2019 code and the subject of those codes is provided as Exhibit 1.
One relevant example is the County of Marin. The County of Marin’s building code allowed both all-electric construction and construction with limited mixed-fuel uses as long as higher energy efficiency could be demonstrated and pre-wiring for future electric appliances was included.
However, the majority of these provisions have since been repealed and supplanted with the 2022 Energy Code, with some local modifications.
Since the adoption of the 2022 California Building Code, there are fewer jurisdictions with California Energy Commission-approved electric-preferred reach codes because the 2022 code now requires new homes to be electric-ready. These requirements include electrical circuits for space and water heating, cooking, and clothes dryers, and dedicated circuits and panels for battery storage and to convert from natural gas to electric in the future.3 The objective of these mandatory state requirements for electric readiness is to facilitate future installations of high efficiency electric equipment and minimize future retrofit costs when gas appliances are replaced with electric appliances.
Most of the jurisdictions that had electric-preferred reach codes prior to the adoption of the 2022 California Building Code either:
• Did not update their local building code to continue with an electric-preferred reach code because the 2022 California Building Code included new, more stringent requirements that fulfilled that objective
• Adopted all-electric requirements that went above and beyond the 2022 California Building Code, although after the Berkeley case local jurisdictions have halted enforcement of their all-electric green building requirements to avoid running afoul of federal preemption challenges.
• Adopted reach codes with considerably narrower measures, which are discussed at greater detail below.
Alternative reach codes adopted by local jurisdictions applicable to the 2022 Energy Code While “electric preferred” reach codes have largely been supplanted by the 2022 Energy Code or have reached too far and are preempted (e.g., natural gas moratoriums), there are still options to pursue reach codes that include more stringent requirements than the 2022 Energy Code. Most of the approved reach codes include additional requirements for solar photovoltaic power, though the California Energy Commission has provided a model ordinance for an intervening electric vehicle measure until these requirements go into effective statewide mid- 2024. Additionally, there are opportunities to enact reach codes to apply the 2022 Energy Code to existing buildings whose owners are seeking permits to make substantial improvements, as well as adopting minimum performance standards (i.e., whole building or performance-based reach codes).
3 See Energy Code sections 150.0(n) and 150.0(t-v).
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The California Energy Commission has approved local energy standards for eight local jurisdictions. The approved ordinances primarily include additional solar photovoltaic power requirements on new nonresidential, multi-family and hotel/motel buildings, cool roofing requirements,4 and increased efficiency requirements for retrofits and additions. The complete list of cities and counties that adopted reach codes exceeding the 2022 code and the subject of those codes is provided as Exhibit 2.
By way of example, the City of Solana Beach adopted an ordinance to amend its building and energy codes to require photovoltaic systems for all newly constructed or substantially remodeled nonresidential and hotel/motel buildings, as well as high-rise residential buildings, with limited exceptions. The County of Marin added a section to its building code that triggers the state mandatory electric-ready measures described above for covered single-family projects. Covered single-family projects include an electrical panel upgrade, a kitchen remodel or a laundry room remodel, as well as newly created accessory dwelling units or junior accessory dwelling units, with limited exceptions.
Additionally, the California Energy Commission has provided a model ordinance to amend CALGreen to adopt voluntary Tier 1 and Tier 2 requirements for electric vehicle charging for the intervening period until the requirements take effect statewide on July 1, 2024. However, the approval process to approve the local reach by both the City Council and the relevant state agencies, discussed at greater length below, would likely coincide with the same frame for the measures to take effect statewide.
While the 2022 Energy Code “electric ready” requirements apply to most new construction buildings, through an adopted and approved reach code, major renovations or substantial improvements
5 that meet pre-defined thresholds could be considered new construction and thus subject to the 2022 Energy Code requirements. The city would need to adopt a reach code to apply the requirements of the 2022 Energy Code to qualifying remodels and renovations of existing buildings in the city.
The city could also consider adopting a reach code based on whole building or performance- based requirements for new construction projects, which leave the individual measure selection to the designer and builder. Specific performance and measure requirements would be based on the project scope, building type and energy systems. While the 2022 Energy Code established three compliance metrics for single-family homes that must be satisfied, a reach code could be established to exceed the state requirements for any, or all, of the three metrics for mixed-fuel buildings. The 2022 Energy Code applies these same three compliance metrics for new single-family homes to nonresidential, multifamily, and hotel/motel buildings, so the
4 Los Angeles County Ordinance 2022-0056 defines a “cool roof” as “a roofing material that reduces heat gain through the roof and has either high thermal emittance and high solar reflectance, or low thermal emittance and exceptionally high solar reflectance.”
5 Chapter 2 of Title 24 of the California Building Code defines “substantial improvement” as "any repair, reconstruction, rehabilitation, alteration, addition, or other improvement of a building structure, the cost of which equals or exceeds 50 percent of the market value of the structure before the improvement or repair is started. If the structure has sustained substantial damage, any repairs are considered substantial improvement regardless of the actual repair work performed,” excluding historic structures and improvements to correct various code violations.
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city could also require higher compliance margins for any or all three metrics for nonresidential and multifamily whole building performance. More restrictive compliance metrics would need to be substantiated by cost-effective documentation for the needed state approval, which is discussed in greater detail below.
6 Alternatively, a reach code could require specific measures for building and process load7, assuming they are shown to be cost-effective in the city’s climate zone. CalGreen has provided the following list as sample energy measures for low-rise residential buildings:
• Roof deck insulation
• High performance walls
• Compact hot water distribution
• Drain water heat recovery
• High performance windows
• Heat pump water heater demand management
For prescriptive energy measures for nonresidential, high-rise residential and hotel/motel projects, CalGreen has provided the following list of building measures:
• Outdoor lighting,
• Service water heating in restaurants
• Warehouse dock seal doors
• Daylight design power adjustments
• Exhaust air heat recovery
• Elevator light and fan controls
• Regenerative drive systems for elevators and escalators • Energy efficient steel framing.
Note that some of these measures have also been identified as proposed measures in the planned 2025 Energy Code update, as discussed in greater detail below.
Developing a reach code
A local jurisdiction may adopt a reach code to amend its Building Code, so long as it is at least as stringent as the statewide code, is cost effective, and approved by the California Energy Commission. For example, in 2019, the city began implementing its first reach code when it adopted an ordinance that established solar or recovered energy requirements for water heating systems, except when economically or physically infeasible (Ordinance No. CS-347).
The City Council’s request to develop options for an “electric preferred” reach code is distinguishable from the ordinance adopted by Berkeley in 2019, in that it could not require all- electric new construction under existing law. Instead, it could require stricter requirements than the state that are established to be cost-effective.
6 Additional information about whole building performance requirements is available from the California Energy Codes & Standards, a statewide utility program, at localenergycodes.com 7 Process loads are the miscellaneous energy loads associated with a building’s energy use and are typically defined based on exclusion – e.g., as everything except for space conditioning, lighting, refrigeration, cooking, and laundry.
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Based on the 2022 California Building Code, the types of new buildings where a reach code could be applied include:
• Single-family homes
• Multi-family homes
• Nonresidential developments
• Accessory dwelling units
Determining what exactly a reach code could include is dependent on:
• What type(s) of buildings are included in the reach code (e.g., single-family, multi-family, nonresidential)
• For each building type, what requirements to include in the reach code (or how “far” would new construction have to “reach” to comply).
• If new construction requirements would also apply to substantial improvements Staff estimate it would take about 14 months to adopt and begin enforcing a reach code, which would include the following milestones:
• Ten months to develop and adopt
• Three months for the California Energy Commission to approve the reach code • One month to file the approved reach code with the state Building Standards Commission.
A cost-effectiveness study for both individual measures and increased whole building performance metrics is required for the state agencies’ approvals, which is discussed in more detail in the Fiscal Analysis section.
2025 Green Building Code
As noted above, the Green Building Code gets updated every three years, so while the 2022 Energy Code is currently being implemented, the development of the 2025 Energy Code is well underway. The 2025 Energy Code changes have been posted for public review and are tentatively scheduled to be adopted by the California Energy Commission in June 2024, with local jurisdictions to begin enforcement on Jan. 1, 2026.
As currently proposed, most of the changes proposed for the 2025 update are focused on non- residential development.
Building type affected by proposed 2025 changes
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Most of the changes proposed for the 2025 update are targeted at improving heating, ventilation and air conditioning (HVAC) performance and the energy-saving qualities of a building’s envelope, primarily for nonresidential buildings.
Proposed measures for the proposed 2025 changes
Some of the proposed measures for single-family homes are:
• Measures for improving heating, ventilation and air conditioning (HVAC) performance • Mandating solar heating requirements for pools and spas • Evaluating the thermal performance of building envelopes • Evaluating the cost-effectiveness of high-performance windows in all of the state’s climate zones.
For multi-family residences, the 2025 update is expected to include such measures as:
• Improving the performance of HVAC systems in new and existing residences • Using heat pump water heater systems for multi-family hot water • Using balanced ventilation as a whole dwelling unit strategy For nonresidential buildings, the update may require:
• Automatic daylighting
• Improved energy and water efficiency for cooling towers • Improved energy efficiency of space heating systems.
The city could develop a reach code for the next code update that could be prepared in alignment with the release of the 2025 California Energy and Green Building Codes. Because the 2025 code cycle is already well underway, staff would be able to start reviewing possible code changes this year, have more time to identify and develop options that will exceed the future code, conduct outreach, and align adoption of the 2025 Energy and Green Building Codes to maximize the full three years of the cycle. This approach would also allow staff to adjust to any changes from a final ruling from the Ninth Circuit in California Restaurant Association v. City of Berkeley, if any.
Fiscal
Analysis
There is no immediate nor direct fiscal impact from this item. However, if the City Council approves pursuing a reach code, there will be associated costs.
The state requires that all reach codes demonstrate cost-effectiveness, or that the money saved from reduced energy costs will cover the initial cost within a reasonable period of time (i.e., the Sept. 12, 2023
Item #12 Page 8 of 24
payback period). The California Statewide Codes and Standards Program provides cost- effectiveness studies for use by local jurisdictions. Most recently, statewide cost-effectiveness studies were prepared for the 2022 California Green Building Code cycle and are available online through a tool, though some individual measures may not be included in these prepared studies.
Beyond the funding needed to prepare the cost-effectiveness study, the city would need to budget for both staff and consultant time to prepare and adopt a reach code. Southern California Edison has published information on tasks and estimated consultant hours to prepare a reach code, which ranges up to 340 hours.
In 2021, the City of Encinitas approved a $20,000 budget for a consultant to help with CAP- related building ordinances. To defray labor costs, technical assistance is available through San Diego Gas & Electric and the California Codes and Standards Program to help with preparation of and outreach and training for reach codes.
Professional services for this work were not included in the Environmental Sustainability Department’s budget for fiscal year 2023-24. Any professional service agreement funds associated with development of a reach code could be funded with a transfer from the City Council’s contingency account. The current balance of the City Council contingency account is $500,000.
Options
Given the requirements of the 2022 Energy Code, proposed changes for the 2025 Energy Code, and the status of the Ninth Circuit Court’s opinion in the Berkeley case staff are requesting the City Council’s direction on next steps. Staff have identified the following options:
1. Continue implementing the City Council’s minute motion from April 19, 2022, and begin developing a reach code for the 2022 Energy Code, subject to necessary budget appropriations.
2. Develop a reach code update to coincide with the city’s enforcement of the 2025 Energy Code and Green Building Code cycle. This could result in a reach code update in a few years and could incorporate updates, if any, to the California Restaurant Association v.
City of Berkeley case.
3. Take no further action on a developing a reach code and participate and follow the 2025 Energy Code and Green Building Code cycle to plan for and identify GHG savings from future green building requirements. This would result in no reach code update.
4. Wait for updates to the California Restaurant Association v. City of Berkeley case to be finally resolved. This could result in a legal option for a natural gas moratorium or all- electric code in the future that would not run afoul of federal preemption, but this assumes a ruling that overturns the existing decision and the timing is uncertain.
5. Proceed with other direction provided by the City Council.
Options that involve the development of a reach code would also include community engagement and the preparation of a cost-effectiveness study.
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Next Steps
Staff plan to provide the City Council with a report on the update to the city’s Climate Action Plan in November 2023. This report will review the findings collected through public outreach and give the City Council and the community an opportunity to provide input on possible measures to include in the update of the plan, as well as the next steps for implementation.
Environmental E valuation
This action to receive information, review options for electric-preferred reach codes, and provide direction does not constitute a project within the meaning of the California Environmental Quality Act under Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
The direction provided by the City Council on this item is not binding, and any possible future actions, if any, would be subject to City Council approval along with a separate environmental finding.
Exhibits
1. Local ordinances exceeding the 2019 Energy Code
2. Local ordinances exceeding the 2022 Energy Code
3. Correspondence
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Exhibit 1
Local Ordinances exceeding the 2019 Energy Code
The following agencies have adopted energy ordinances requiring more stringent energy requirements than those set by California’s Energy Code (Title 24, Part 6). (San Diego County cities highlighted)
Local ordinances Date approved Topics
Alameda 8/11/2021 All-electric, additional photovoltaic solar (PV) Albany 5/12/2021 Electric preferred
Berkeley 2/20/2020 Electric preferred, additional PV
Brisbane 2/20/2020 Electric preferred, additional PV
Burlingame 10/14/2020 All-electric, additional PV (3 ordinances) Campbell 1/25/2021 All-electric
Carlsbad 3/12/2019
Energy efficient remodels & additions, additional
PV, additional EV charging, alternative water
heating
Chula Vista 1/25/2021 Energy efficient remodels & additions Cupertino 4/8/2020 All-electric, Leadership in Energy and Environmental Design (LEED) or GreenPoint1 rated
Daly City 7/15/2021 All-electric, additional PV
Davis 8/12/2020, 1/22/2020 Additional PV, CalGreen Tier 1 East Palo Alto 12/9/2020 All-electric, additional PV
Emeryville 7/13/2022 All-electric, additional PV
Encinitas 7/13/2022 All-electric, additional PV
Half Moon Bay 7/13/2022 additional PV
Hayward 6/10/2020 All-electric, electric preferred
Healdsburg 2/20/2020 Electric preferred
Los Altos 1/25/2021 All-electric (3 ordinances)
Los Altos Hills 12/9/2020 Electric preferred
Los Angeles 9/14/2022 Cool Roofs
Los Angeles County 4/8/2020 Cool Roofs, additional PV
Los Gatos 2/20/2020 All-electric, prewire for battery storage Marin County 12/11/2019 Electric preferred, CalGreen Tier 1 Millbrae 1/25/2021 All-electric, additional PV
Menlo Park 12/11/2019 Electric preferred, additional PV Mill Valley 4/8/2020 Electric preferred, additional PV
Milpitas 2/20/2020 Electric preferred, additional PV or solar thermal
1 GreenPoint Rated is a building rating system “for a sustainable, efficient, durable, and healthier home”. https://www.greenpointrated.com/greenpoint-rated/
Sept. 12, 2023
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Mountain View 2/20/2020 All-electric, additional PV, LEED Rated Pacifica 4/8/2020 All-electric, electric preferred, additional PV Palo Alto 2/20/2020 All-electric, electric preferred, additional PV Piedmont 5/12/2021 All-electric new homes, energy efficient remodels and additions, additional PV
Redwood City 12/9/2020 All-electric, additional PV
Richmond 6/10/2020 All-electric, electric preferred, additional PV San Anselmo 9/9/2010 All-electric, electric preferred
San Carlos 5/12/2021 All-electric, additional PV
San Francisco 4/8/2020 Electric preferred, additional PV, solar thermal, Green Roof, LEED or Green Point rated
San Jose 12/11/2019 Electric preferred, additional PV
San Luis Obispo 8/12/2020 Electric-preferred, additional PV San Mateo 12/9/2020 All-electric
San Mateo County 9/9/2020 All-electric, additional PV
San Rafael 4/8/2020 CalGreen Tier 1
Santa Clara County 8/10/2022 All-electric, additional PV Santa Clara 8/10/2022 All-electric, additional PV
Santa Monica 12/11/2019 Electric preferred, additional PV Santa Rosa 2/20/2020 All-electric, additional PV
Saratoga 4/8/2020 Electric preferred
Solana Beach 7/13/2022 Electric preferred, additional PV Sunnyvale 1/25/2021 All-electric, additional PV
West Hollywood 12/11/2019 Additional PV, solar thermal, Green Roof Windsor 2/20/2020 All-electric
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Item #12 Page 12 of 24
Source: California Energy Commission, https://www.energy.ca.gov/programs-and- topics/programs/building-energy-efficiency-standards/2019-building-energy-efficiency-3 Sept. 12, 2023
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Exhibit 2
Local Ordinances exceeding the 2022 Energy Code
The following agencies have adopted energy ordinances requiring more stringent energy requirements than those set by California’s Energy Code (Title 24, Part 6). (San Diego County cities highlighted)
Local ordinances Date approved Topics
City of Santa Clara 7/26/2023 Solar photovoltaic (PV) on new nonresidential, high-rise residential and motel/hotel buildings
Encinitas 1/25/2023 Residential retrofit efficiency improvements, PV for high-rise and nonresidential additions
Glendale 4/12/2023 PV for high-rise residential, nonresidential, multifamily and hotel/motel buildings
Los Angeles
County 6/16/2023
Cool roofing requirements for residential and
nonresidential buildings including some
additions and alterations
Marin County 4/12/2023
Efficiency Improvements for both new and
renovated single family, multifamily,
hotel/motel and nonresidential buildings
Menlo Park 4/12/2023 PV for hotel/motel, high-rise multifamily, and low-rise nonresidential buildings
Piedmont 1/25/2023
All-electric single family, non-commercial
residential retrofit efficiency improvements,
PV for some additions
Solana Beach 6/16/2023 PV on new nonresidential, high-rise residential and motel/hotel buildings
Source: California Energy Commission (https://www.energy.ca.gov/programs-and- topics/programs/building-energy-efficiency-standards/2022-building-energy-efficiency-0) Sept. 12, 2023
Item #12 Page 14 of 24
From: Cindie McMahon
To: Sheila Cobian; Tammy Cloud-McMinn
Subject: FW: Electric Preferred Ordinance
Date: Thursday, September 7, 2023 7:47:55 AM
Attachments: PDF Electric Preferred Reach Code for Carlsbad.pdf For Item 12 on September 12, 2023.
From: Karl Aldinger <[email protected]>
Sent: Wednesday, September 6, 2023 12:35 PM
To: City Attorney <[email protected]>
Subject: Electric Preferred Ordinance
Hello Ms. McMahon,
My name is Karl Aldinger with SIerra Club San Diego, and we've been advocating for an Electric Preferred new construction ordinance with city council. We understand the legal concerns of such an ordinance and that things are in flux because of the Ninth Circuit ruling.
I just wanted to share a slide deck that we have used with some council members to help try to
explain why an Electric Preferred may be a good option. We know this is a lot of new information for council members and wanted to try to get them up to speed on what an Electric Preferred ordinance has looked like in the past when used in 2019. I'm sharing it with you so that you might understand better the discussions we've had with them and the 2019 ordinances that we have shown as examples. We know the new Title 24 rules for 2022 mean that rules have changed since then.
Sincerely,
Karl Aldinger
Conservation Organizer
Sierra Club San Diego
760-331-7885
Pronouns: He, him, his
CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe.
Exhibit 3
Sept. 12, 2023
Item #12 Page 15 of 24
Electric Preferred Reach
Code for Carlsbad
(and maybe a trigger when/if
All-Electric is once again clearly legal)
Sept. 12, 2023
Item #12 Page 16 of 24
Energy
Policy
Conservation
Act
● 1975
● Prevent chaos from
state rules
● Maintains minimum
efficiency standard for
appliances
● Preemption: federal
rules preemptively
override state’s
intention
Sept. 12, 2023
Item #12 Page 17 of 24
● EPCA has a building code exception clause,
6297(f)(3)
● Create an electric preferred ordinance creating
an ecosystem where builders go all-electric for
ease of compliance
● Requires a performance pathway to allow
non-electric appliances, not as transformative
Alternative to Berkeley Police Powers
Ordinance
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Item #12 Page 19 of 24
Example Electric Preferred
Example Marin County 2019
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Energy
Design
Rating
(EDR)
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EDR
Margin
EDRBaseline
- EDRActual
—--------------------------------------------
EDRMargin
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Tiburon’s Trigger Rule
Is it an option to write a two
stage Ordinance that is Electric
Preferred until it is allowed to
change into All-Electric?
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Additional Reading
Marin County’s 2019 Electric Preferred ordinance
San Mateo presentation (2019) including Performance based ordinance description
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Follow-Up on Electrification
of New Buildings in Carlsbad
Katie Hentrich, Senior Program Manager
Sept. 12, 2023
TODAY’S PRESENTATION
• Background
• Who has reach codes?
• What are “electric-preferred” reach codes?
• California Building Code
• Reach code costs, timing
• Options
• Recommended action
ITEM 12. ELECTRIFICATION OF NEW BUILDINGS
2 PREVIOUS MINUTE MOTION
• Minute motion at July 11, 2023 City Council meeting to return on Sept. 12, 2023 to discuss:
– Other cities that have an “electric-preferred” reach code and models the city could follow
– How the city could potentially develop an “electric-
preferred” reach code
– Options to develop an “electric-preferred” reach code, including costs and a timeline for its development
ITEM 12. ELECTRIFICATION OF NEW BUILDINGS
3 BACKGROUND
• Green building standards are in two parts of the CA building code – Part 6: Energy Code
– Part 11: Green Building Code (or “CALGreen)
• Local jurisdiction may adopt a “reach code” that exceeds these standards, so long as the requirements are:
– As stringent as CA building code
– Cost-effective
– Approved by CEC
• Transition from 2019 to 2022 code cycle changes local reach codes ITEM 12. ELECTRIFICATION OF NEW BUILDINGS
4 WHO HAS REACH CODES?
2019 code
50 CA jurisdictions
with reach codes
(including
Carlsbad)
20 CA jurisdictions
with “electric
preferred” reach
codes
2022 code
8 CA jurisdictions
with reach codes
0 CA jurisdictions
with “electric
preferred” reach
codes
ITEM 12. ELECTRIFICATION OF NEW BUILDINGS
5 Example: County of
Marin “electric-
preferred”
Examples: City of Solana
Beach (additional PV);
County of Marin (electric-
ready triggers) for
substantial remodels
1. 2022 code now
mandates “electric
ready” and
supersedes 2019
“electric-preferred”
reach codes
2. Some jurisdictions updated to all-
electric (on hold by Berkeley)
CRA V. CITY OF BERKELEY
• Jurisdictions have stayed enforcement of all-
electric reach codes because of this case
• Ninth Circuit ruling that natural gas ban
preempted by Energy Policy and Conservation
Act
• Federal law prohibits local ordinances (natural
gas moratorium or all-electric reach code) that
precludes the use of covered gas appliances
from using gas
ITEM 12. ELECTRIFICATION OF NEW BUILDINGS
6 WHAT IS AN “ELECTRIC-PREFERRED” REACH CODE?
• Allows mixed-fuel power sources within a building,
so does not preclude covered gas appliances
subject to federal regulation
• Buildings with natural gas must meet additional
requirements established in reach code
ITEM 12. ELECTRIFICATION OF NEW BUILDINGS
7 8
Whole building
energy performance
• Set minimum
performance
requirements
specified
• Individual measures
decided by
designer/builder, not
city
• Requirements based
on building types,
project scope,
energy systems, etc.
Energy efficiency
measures
• Select specific
measures for
building and process
load
• E.g., Carlsbad 2019
reach code required
solar PV on new
construction
Major renovations as
new construction
• CA building code
requirements are
stricter for new
construction
• Major renovations
could be defined as
“new construction”
• E.g., Carlsbad 2019
reach code permit
valuation
REACH CODE PATHWAYS
CALIFORNIA BUILDING CODE CYCLES
ITEM 12. ELECTRIFICATION OF NEW BUILDINGS
9 2019
Code
• Previous code cycle
• Enforced 2020 – 2022
• City adopted reach code under this code cycle; used for CAP implementation
• Current code cycle
• Enforcing 2023 – 2025
• Some components of city’s 2019 reach code still being enforced, others superseded by 2022 code
2025
Code
• Next code cycle
• Enforce 2026 - 2028
2022 VS. 2025 CALIFORNIA BUILDING CODE
ITEM 12. ELECTRIFICATION OF NEW BUILDINGS
10 • Mandate electric-ready requirements (SF/MF)
• EV charging/EV capable required for new construction
• Electric heat pumps encouraged
• Expanded solar and battery storage requirements
2022
(current code)
• Non-res buildings affected most by proposed changes (e.g., automatic daylighting, EE for cooling towers/space heating) • Most changes proposed for HVAC (e.g., improving HVAC
performance for SF and MF)
• Require solar PV for SF pools/spas
• Require electric heat pumps for MF
2025
(draft code)
ESTIMATED TIMING
ITEM 12. ELECTRIFICATION OF NEW BUILDINGS
11 Est. 14 months to adopt and begin enforcing reach code:
– 10 months to develop and adopt
– 3 months for CEC to approve reach code
– 1 month to file approved reach code with BSC
ESTIMATED COSTS
• Recent estimates to prepare and adopt reach code
– Consultant time estimate: up to 340 hours
– City of Encinitas 2021 consultant budget: $20,000
– Free technical assistance available from SDG&E and CA Codes and Standards Program, used by several local jurisdictions (including Encinitas for work above)
• Not included in FY 23-24 budget
• Could be funded with transfer from City Council
contingency account
ITEM 12. ELECTRIFICATION OF NEW BUILDINGS
12 OPTIONS
1. Continue implementing the City Council’s April 19, 2022 motion and begin developing a reach code for the 2022 Energy Code, subject to necessary budget appropriations
2. Develop a reach code update to coincide with the city’s adoption and enforcement of the 2025 Energy Code and Green Building Code cycle
3. Take no further action and follow 2025 Energy Code and Green Building Code cycle
4. Wait for updates to the California Restaurant Association v. City of Berkeley case to be finally resolved
5. Proceed with other direction provided by the City Council ITEM 12. ELECTRIFICATION OF NEW BUILDINGS
13 RECOMMENDED ACTION
Receive information on electric-preferred
reach codes, review options and provide
direction to staff on how to proceed with
the next draft Climate Action Plan Update in
2023.
ITEM 12. ELECTRIFICATION OF NEW BUILDINGS
14