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Cotati City Council
April 25, 2023

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April 25, 2023
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Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: Council Workshop on Potential Reach Code Related to All-Electric Buildings and Electric Vehicle Charging
Date: April 25, 2023
Written by: Autumn Buss, Associate Planner
Recommendation
It is recommended by the Community Development Department that the City Council conduct a workshop and provide direction to staff on potential all-electric building and electric vehicle charging reach code amendments to the Building Code.

I. Background
The State of California adopts updated mandatory building codes every three years, addressing the main branches of construction such as building, fire, plumbing, mechanical, and electrical, as well as codes pertaining to energy consumption and efficiency, green building, and waste reduction.

The mandatory building codes, known collectively as the California Building Standards Code (Building Code), are organized into 13 parts, including the Fire Code, Energy Code, Green Building Standards Code (CALGreen), Plumbing Code, etc. In addition, the State provides options for two levels of voluntary provisions, known as “Tier 1” and “Tier 2,” that set forth a progressively higher baseline of standards than the mandatory minimums established in the Building Code and are generally related to “green” building materials and practices and energy efficiency.

Following state adoption, local jurisdictions are required to adopt the updated mandatory Building Code. The voluntary Tiers 1 and 2 are considered to be “reach codes” in that they “reach” beyond the minimum requirements of the Building Code, and jurisdictions may adopt those in their entirety or in part. Jurisdictions may also adopt custom reach codes with specific provisions that meet the individual needs of their climate, geography, or topography, as long as the provisions are equal to or more stringent than the mandatory Code.

Reach codes are frequently used as a tool to meet climate change goals related to reduction of greenhouse gas emissions. To date, 65 jurisdictions in California having implemented “building electrification” or “all-electric” reach codes prohibiting the use of natural gas or propane in newly constructed buildings. The need to reduce natural gas use is supported by numerous findings of its negative impacts, including the recent action by the Bay Area Air Quality Management District to require the transition of new residential and commercial gas furnaces and water heaters to zero-NOx (nitrogen oxide) starting in 2027 due to the significant air pollution from standard natural gas appliances.

A number of adopted reach codes (44 jurisdictions) have also set forth additional requirements for electric vehicle (EV) charging, in a further effort to reduce fossil fuel use. In addition, six jurisdictions in California have adopted reach codes that require installation of solar photovoltaics (PVs) in excess of the Building Code requirements.

Local jurisdictions that have adopted “all-electric” reach codes to require electric-only infrastructure in new buildings include Santa Rosa, Healdsburg, Petaluma, Corte Madera, Fairfax, San Anselmo, San Rafael, and the Counties of Sonoma and Marin. The same jurisdictions in Marin County have also adopted EV charging requirements in their reach codes, although to date the only Sonoma County jurisdiction to have done so is Cotati. Cotati adopted Tier 1 voluntary measures related to EV charging as part of its adoption of the 2022 State Code, which took effect January 1, 2023.

The goals of this workshop are to clarify the provisions of Cotati’s adopted 2022 Building Code that pertain to building electrification, solar photovoltaics (PV), and electric vehicle (EV) charging facilities; review reach code options to reduce the use of fossil fuels within the City; and for Council to provide direction to staff on reach code amendments that go above and beyond the requirements of the City’s current Code.

In preparation of this report, staff researched a number of other jurisdictions’ reach codes and consulted with the reach code experts at the California Energy Codes and Standards program (www.localenergycodes.com).

II. Analysis/Discussion
A. 2022 California Building Standards Code Requirements The adopted 2022 Building Code currently requires a variety of measures to reduce gas and propane use and reduce climate impacts through building electrification, PVs, and EV charging.

Cotati adopted the State Code’s mandatory measures related to building electrification and PVs, and the Tier 1 voluntary measures related to EV charging.

Building Electrification
• In newly constructed residential buildings, electric heat pumps are required by default under the Code (gas appliances may be installed if other measures are installed to offset the compliance penalty, as the base against which the proposed project is compared assumes a heat pump). Electric heat pump water heaters are required by default for new single family buildings. In new multifamily buildings, any individual gas water heater must be instantaneous and central gas water heating must incorporate solar thermal to cover 20% of the demand. Heat pump space heating is also required by default for new multifamily.
• All new residential buildings must be 100% “electric ready,” which means that they may include gas infrastructure and appliances, but must also be constructed with the infrastructure to accommodate electric stoves, electric clothes dryers, heat pumps, and energy storage systems (in single family only). Electric appliances are not required to be installed; rather, the infrastructure, such as electrical panel, conduits, and chases, is installed so that the building is ready for future installation of electric appliances. Central hot water infrastructure in multifamily buildings is exempt from the electric ready requirement.

Solar photovoltaics (PV)
• All newly constructed single-family homes, duplexes, and low-rise multifamily (3 stories or less) must have a solar PV system installed and be storage “battery-ready,” with some exceptions available for shading, home size, and other circumstances. System size is based on the conditioned areas of the home and the number of dwelling units. In Cotati, the minimum system size required by Code is approximately 1.2W/sqft (2.5kW for a 2,000 sqft home) for single family and 1.8W/sqft for multifamily dwellings. • All newly constructed high-rise (4+ stories) multifamily and certain commercial buildings, including grocery, office, financial institutions, retail, school, warehouse, auditorium, convention center, hotel/motel, library, medical office, building/clinic, and theaters, must have a solar PV system and battery storage system installed. The size of the required PV system ranges from 1.8 to 3.1 W/sqft of conditioned space, according to occupancy (less for warehouses). The battery storage system must be sized in proportion to the PV system.

Electric Vehicle (EV) Charging CALGreen Tier 1
Refer to Attachment 1: EV Charging Glossary for more information and definitions. • One parking space in newly constructed single family and duplex homes must be Level 2 EV Ready
• All newly constructed multifamily or hotel/motel must have 35% of parking spaces EV Ready with Low Power Level 2 EV Charging Receptacles
• New multifamily or hotel/motel with 20+ units/rooms must have an additional 10% of spaces with Level 2 EVSE installed (for a total of 45% spaces equipped to charge EVs) • Existing multifamily: 10% of added or altered parking spaces must be Level 2 EV Capable (requirement also triggered when electrical systems or lighting are added or altered)
• New non-residential: 20% Level 2 EV Capable (Min. 2 spaces) and 10% Level 2 EVSE EV Charging: Intervening Code Change
The California Building Standards Commission is poised to adopt an “intervening,” or mid- cycle, code update that would go into effect July 1, 2024, and would significantly amend the EV charging requirements in the Code, particularly those relating to multifamily and hotels/motels.

The proposed update is still subject to change as it goes through the approval process, but its key provisions are expected to be as shown in the below table:

Proposed Intervening Cycle—Multifamily, Hotel/Motel EV Charging Cotati will need to adopt the updated Code at the mandatory level, or may choose to adopt the Tier 1 or Tier 2 voluntary standards, unless the City decides to adopt a more stringent custom reach code related to EV charging, in advance of July 1, 2024. The proposed changes for nonresidential projects are less significant. The requirements for added and altered spaces (which currently apply only to multifamily) would be extended to nonresidential buildings and the requirements for offstreet medium- and heavy-duty charging would be extended to additional nonresidential occupancies. There are no substantial changes proposed to EV charging requirements for single family homes and duplexes.

Refer to Attachment 2: Summary of EV Charging Reach Code Ordinances for more information.

B. Local Reach Code Examples—All-Electric
Santa Rosa, Healdsburg, Petaluma, and the Counties of Sonoma and Marin provide some local examples of all-electric reach codes. Each of these jurisdictions have gone beyond the minimum electrification requirements and mandated “all-electric buildings,” which means buildings that are built to use electricity only for all the following systems: space heating, water heating (including pools/spas), cooking appliances, and clothes drying appliances, with no natural gas or propane appliances or plumbing in the building or even on the property (outdoor portable appliances excepted). These jurisdictions require that newly constructed buildings—and in some case, substantial renovations and additions—be all-electric, with various restrictions and exceptions.

Santa Rosa 2019 and 2022:
• The City of Santa Rosa 2019 all-electric reach code was a pioneer effort in Sonoma County and is so far the only reach code in the county to be legally challenged and prevail
• Applies to newly constructed low-rise (up to 3 stories) residential buildings • Prohibits gas fireplaces and barbeques as well as all appliances Healdsburg 2022:
• All-electric applies to newly constructed residential and non-residential buildings • Also applies to existing buildings when removal of the structure’s exterior wall and roof/ceiling areas exposes 75% or more of the existing building envelope, or where any portion of a building’s exterior is preserved but the interior is removed • Exception for residential cooking appliances and direct-vent sealed-combustion fireplaces • Exceptions for non-residential: Cooking appliances and direct-vent sealed-combustion fireplaces, correction of health/safety violations, essential facilities; Utility Director discretion for special cases (business-related necessity, public health/safety) • Exceptions are required to be pre-wired for future electric • Prohibits gas decorative appliances
Sonoma County 2022
• All-electric applies to all newly constructed single family residential buildings • .Exceptions: Cooking appliances and generators
• Prohibits gas decorative appliances
Petaluma 2021
• All-electric applies to all newly constructed residential and non-residential buildings • Also applies to substantial building alterations (alteration of an existing building involving removal of 51%+ of exterior walls or addition of 51%+ of gross floor area) • Exceptions: Essential services buildings that are electric-ready, back-up power facilities, portable propane appliances used outdoors, Building Official waiver for special circumstances
Marin County 2022
• All-electric applies to all newly constructed residential and non-residential buildings • Also applies to existing buildings that involve removal or substantial modification of more than 75% of the linear sum of a building’s exterior walls for each story • Exceptions: Emergency generators for essential services and multifamily; portable propane appliances used outdoors; as needed for industrial uses; food service businesses
• Exceptions are required to be electric-ready
• Prohibits gas fireplaces and barbeques
Application of All-Electric Reach Codes to Accessory Dwelling Units (ADUs) Attached ADUs where the existing primary dwelling unit has gas or propane are generally exempted by the above reach codes. In addition, the Energy Code considers attached ADUs to be additions, not new construction. However, attached ADUs may meet the substantial remodel definition depending on size and configuration, which would trigger the all-electric requirement in the above reach codes, as though they were new construction. Detached, newly constructed ADUs are generally subject to the all-electric requirements of these reach codes.

Application of All-Electric Reach Codes to Remodels and Additions to Existing Buildings Whether to apply an all-electric requirement to substantial remodels is one of the decisions jurisdictions may consider when developing a reach code. It should be noted that most of the cost savings from all-electric construction is the result of eliminating gas infrastructure, and these savings may not be available in all remodels and additions. However, a substantial remodel or addition may warrant application of the all-electric requirement, as seen in the above reach codes.

C. Reach Code Examples—EV Charging
While Cotati is the only jurisdiction in Sonoma County to date to have adopted a reach code that addresses EV charging standards, many others in the Bay Area and Southern California have done so. Below are some examples of EV charging reach codes. Refer to Attachment 2:

Summary of EV Charging Reach Code Ordinances for more information about EV charging reach codes in California.

Marin County 2022
• Single Family. The first space in a new home must have a Level 2 EV Ready receptacle (Tier 1). Applies to ADUs when a panel upgrade is needed. • Multifamily. 100% of tenant spaces in new multifamily developments must have access to EV charging (15% with EV Chargers installed and 85% with Low Power Level 2 EV Ready receptacles installed).
• Hotels and Motels. 45% of the spaces in new developments must have access to EV charging (10% with EV Chargers installed and 35% with Low Power Level 2 EV Ready receptacles installed). Another 10% must have capacity and raceways to support future Level 2 chargers.
• Nonresidential. 10% of the spaces in new developments must have EV Chargers installed. Another 20% must have capacity and raceways to support future Level 2 chargers.
• Existing multifamily and nonresidential properties that modify their parking lot and/or electrical panel must follow the requirements for new projects (affected areas only). Modifications include resurfacing and alterations to the curbs (an extension of Code minimum trigger for multifamily projects).

Mountain View 2022
• Single Family. The first space in a new home must have a Level 2 EV Ready receptacle (Tier 1) and the second space must be Level 1 EV Ready (capacity and raceway). Extends to 100% of guest parking in developments (15% with EV Chargers installed, and 85% with Low Power Level 2 EV Ready receptacles installed).
• Multifamily. 100% of tenant spaces in new developments must have access to EV charging (40% with EV Chargers installed and 60% with Low Power Level 2 EV Ready receptacles installed).
• Hotels and Motels. 15% of the spaces in new developments must have EV Chargers installed. Another 30% must have capacity and raceways to support future Level 2 chargers.
• Nonresidential. 15% of the spaces in new developments must have EV Chargers installed. Another 30% must have capacity and raceways to support future Level 2 chargers.
• One of every 100 guest spaces in new multifamily, hotel/motel and single family developments must have a DC fast charger installed.
• Existing multifamily and nonresidential properties that modify their parking lot and/or electrical panel are required to install EV Chargers at 10% of the affected spaces and upgrade existing EV Capable spaces to Level 1 EV Ready.

Daly City 2022
• Single Family. The first space in a new home must have a Level 2 EV Ready receptacle (Tier 1) and the second space must be Level 1 EV Ready (capacity and raceway).
• Multifamily (large, 20 units or more). 100% of tenant spaces in new developments must have access to EV charging. Full power Level 2 EV Ready receptacles must be provided in parking spaces for the first 20 dwelling units and 25% of all additional units. Level 1 EV Ready spaces must be provided for the balance of the units. • Multifamily (small, less than 20 units). 100% of tenant spaces in new developments must have access to EV charging. Spaces must have full power Level 2 EV Ready receptacles for each unit.
• Requirements are lower for affordable housing.
• Office Projects. New projects with more than 10 spaces or more must include EV Chargers for 10% of the spaces and Level 1 EV Ready receptacles for 10% of the spaces. Another 30% must have capacity and raceways to support future Level 2 chargers.

D. Reach Code Options for Cotati
Through research into other jurisdictions’ reach codes and consultation with industry experts, staff have identified its key recommendations related to reach codes, and options for the Council to consider. It is important to note that a reach code, which would amend the CALGreen portion of the Code, would need to be re-adopted every three years with the updated Building Code. This triennial adoption cycle allows for adjustment of reach codes to meet evolving needs over time.

All-Electric Building Reach Code
Staff recommendation:

1. Apply to all newly constructed buildings--residential and non-residential a. Including detached ADUs

2. Apply to substantial remodels/additions--residential and non-residential:
a. Substantial Remodel: An existing building which undergoes any alteration of floor area that is greater than 50% of the existing gross floor area, if the existing gross floor area exceeds 1,200 square feet:
i. Remodeled area must be all-electric; or
ii. Remodeled area must be made electric-ready
b. Substantial Addition: An existing building which undergoes any addition of floor area that exceeds 50% of the existing gross floor area, if the added floor area exceeds 600 square feet, with the added area being made all-electric (i.e., no extension of gas plumbing to the addition)

3. Apply all-electric requirement to entire property, not just buildings

4. No extension of gas plumbing to a new building (as in the case of a new detached ADU) on a property with existing mixed-fuel buildings

5. Define all-electric as no “fuel gas” to preclude plumbed propane

6. Allow certain exceptions, and require that excepted buildings be made electric-ready:

Potential exceptions to All-Electric code:
a. Residential buildings
i. Attached ADUs in existing mixed-fuel residences
ii. Allow other exceptions on a case-by-case basis per Building Official, for extenuating circumstances/infeasibility
iii. Require that excepted buildings be made electric-ready b. Nonresidential Buildings
i. Restaurants, commercial cooking, and food preparation; certain industrial and manufacturing processes; essential facilities (public safety, medical); emergency/backup generators
ii. Allow other exceptions on a case-by-case basis per Building Official, for extenuating circumstances or infeasibility
iii. Require that excepted buildings be made electric-ready EV Charging Reach Code
Staff Recommendation

1. Maintain single family and duplex requirements at the current Tier 1 level (One parking space must be Level 2 EV Ready)

2. Adopt the proposed code changes under the Intervening Cycle Code Update at the Mandatory level for multifamily and nonresidential projects (to take effect in mid2023, in advance of the Update’s July 1, 2024 effective date), including:
a. 50% of multifamily and hotel spaces to have access to EV charging b. Extending charging requirements to certain non-residential additions and alterations
c. Extending requirements for off-street medium and heavy duty charging to offices and manufacturing projects

3. Consider additional EV Charging measures for next Building Code cycle (2025) Photovoltaics
Staff does not feel that a reach code relative to PVs would be useful for Cotati at this time, because most occupancies are now required to have some PV, typically between 1.8 and 3.1 watts per square foot of conditioned floor area based on occupancy (less for warehouses). Furthermore, the extension of PV (and battery storage) requirements to high-rise multifamily and nonresidential buildings is a new requirement in the 2022 code and developers are still learning the logistics of incorporating PV and storage into projects with roof space limitations and multiple electric accounts. In addition, while there is an opportunity to expand PV requirements for new all-electric single family homes, the incremental emissions reductions are relatively small (11%) compared to the costs ($7,000-8,000).

III. Next Steps
After reviewing the reach code options and staff recommendations at this workshop, the Council may provide direction to staff to develop an ordinance to amend the Building Code with provisions relating to all-electric buildings and/or EV charging. This amendment would update the CALGreen section of the Code. If so directed, staff would target a June 2023 Council meeting for the first reading of the ordinance. If adopted, the reach code ordinance would subsequently need to be approved by the California Energy Commission and filed with the California Building Standards Commission.

Summary of City of Berkeley Case
It is worth noting that on April 17, 2023, the Ninth Circuit Court of Appeals, in California Restaurant Association v. City of Berkeley, held that the City of Berkeley’s general prohibition on installing natural gas piping within newly constructed buildings is preempted by the Energy Policy and Conservation Act (EPCA). The facts and analysis outlined in the Ninth Circuit’s decision should be taken into consideration as the City Council discusses the potential Building Code amendments outlined above.

In 2019, the City of Berkeley adopted an ordinance which prohibits Natural Gas Infrastructure in Newly Constructed Buildings, with some exceptions. The Restaurant Association brought an action against Berkeley, alleging that federal and state law preempted Berkeley’s ordinance. In California Restaurant Association v. City of Berkeley, a three judge panel of the Ninth Circuit held that Berkeley’s ordinance is a “regulation concerning…energy use,” supporting the Court’s finding that the ordinance is preempted by a provision of the Energy Policy and Conservation Act (EPCA).

EPCA preempts certain regulations concerning the energy use of covered products, defined as certain consumer products, like refrigerators, dishwashers, and kitchen ovens, many of which are natural gas appliances used in households and restaurant kitchens. The Court found that Berkeley’s ordinance “prohibits the installation of necessary natural gas infrastructure on premises where covered natural gas appliances are used,” and that the ordinance prescribes a quantity of energy by reducing the energy consumed by natural gas appliances in new buildings to zero. Furthermore, the Court highlighted that “[i]nstead of directly banning those appliances in new buildings, Berkeley took a more circuitous route to the same result. It enacted a building code that prohibits natural gas piping into those buildings, rendering the gas appliances useless.” The Court stated that “by using the term ‘concerning,’ Congress meant to expand preemption beyond direct or facial regulations of covered appliances,” and the EPCA preemption includes preemption of building codes, like Berkeley’s ordinance, “that function as ‘energy use’ regulations.” However, a regulation in a local building code for new construction is not preempted if the building code complies with seven requirements, as stated in 42 USCA 6297(f). Ultimately, the Ninth Circuit’s holding establishes that the EPCA preempts Berkeley’s ordinance because EPCA is concerned with the end-user’s ability to use installed covered products at their intended final destinations.

There may be a way to enact a reach code that is consistent with the California Restaurant Association opinion, which staff could explore based on the City Council's policy direction.

Attachments:

1. EV Charging Glossary

2. Summary of EV Charging Reach Code Ordinances
Attachments:

Attachment 1 EV Charging Glossary (PDF)
Attachment 2 Summary of EV Charging Reach Code Ordinances (PDF)

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