Administrative Correction for Energy Performance Reach Code Ordinance — Goleta City Council, June 3, 2025 (part 1 of 2)

Agenda Item A.12

CONSENT CALENDAR
Meeting Date: June 3, 2025
TO: Mayor and Councilmembers
SUBMITTED BY: Peter Imhof, Director of Planning & Environmental Review PREPARED BY: Dana Murray, Sustainability Manager
Angeline Foshay, Management Analyst
SUBJECT: Administrative Correction for Energy Performance Reach Code Ordinance
RECOMMENDATION:

Approve correction of Ordinance No. 25-02, “An Ordinance of the City Council of the City of Goleta, California, Amending Title 15, Chapter 15.15 Entitled “Energy Code” of the Goleta Municipal Code to Adopt the 2022 Edition of the California Building and Energy Code and Local Amendments Thereto and Determine the Ordinanc e to be Exempt from the California Environmental Quality Act.”
BACKGROUND:

This item is to correct a clerical error in the Energy Performance Reach Code Ordinance 25-02 adopted by Council on February 18, 2005. Specifically, it will add a table inadvertently omitted from the ordinance listing energy performance requirements for non-residential building types. This table was provided in the materials presented to the City Council regarding this ordinance at the February 18, 2025, public hearing, including the staff report and attachments 2 and 6 of that item.

Since 2022, staff have been developing solutions to improve building performance, encourage electrification, and reduce greenhouse (GHG) emissions in the building sector in Goleta. Reach Codes are a primary lever that cities can use to impro ve the efficiency and design of new construction . After a year of collaboration with the County of Santa Barbara and technical code experts , staff developed and presented an Energy Performance Reach Code to City Council. On February 4, 2025, the Goleta City Council introduced and voted unanimously to approve the Ordinance at First Reading and conducted the Second Reading and public hearing on February 18, 2025. In order for the ordinance to go into effect and be cleared for implementation , the City need s approval from the California Energy Commission (CEC).
1 Meeting Date: June 3, 2025

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DISCUSSION:

Staff submitted the Ordinance 25 -02 for CEC review in early March and w as notified in April of a minor error in the Ordinance in the form of an omitted table breaking down the energy performance requirements of different non -residential building types. In order to implement the Energy Performance Reach Code, staff is requesting that Council approve an administrative correction to formally incorporate the table below, which delineates the building performance requirements for different non -residential building types. The correction is to include Table 140.1 rather than the current language of “at least 7 percent for all nonresidential occupancies.” The original staff report materials from February 2025 repeatedly reference the percentages in Table 140.1 and the intent of the Council to adopt the table was clear (see Ord. 25-02 Staff Report, p. 5 “2-14%”, p. 6 referencing Table 1; PowerPoint presentation to Council; table in Memo, p. 1, p. 5 reference to percentages).

Table 140.1 – A SOURCE ENERGY COMPLIANCE MARGINS
Occupancy Type Source Energy Use Compliance Margin
Hotel 7%
Small Restaurant 2%
Office 14%
All Other Building Types 7%
Following Council approval of this administrative correction in compliance with Gov. Code Section 36934, staff will resubmit the ordinance and relevant documents to the CEC for approval.

GOLETA STRATEGIC PLAN:

City-Wide Strategy: 1. Support Environmental Vitality
Strategic Goal:
 1.1.3. Encourage renewable energy generation and use through installation of solar panels, battery energy storage, electric vehicle charging stations and similar measures
 1.1.4. Adopt a "Reach" Building Code
FISCAL IMPACTS:

There is no fiscal impact associated with this item.

ALTERNATIVES:

Council may choose to 1) direct staff to return with further information; or 2) take no action.

LEGAL REVIEW BY: Isaac Rosen, City Attorney
APPROVED BY: Robert Nisbet, City Manager
2 Meeting Date: June 3, 2025

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ATTACHMENTS:

1. Corrected Ordinance No. 25-02, “An Ordinance of the City Council of the City of Goleta, California, Amending Title 15, Chapter 15.15 Entitled “Energy Code” of the Goleta Municipal Code to Adopt the 2022 Edition of the California Building and Energy Code and Local Amendments Thereto and Determine the Ordinance to be Exempt from the California Environmental Quality Act.”

2. Staff Packet for Energy Performance Reach Code Ordinan ce from February 18, 2025 Performance Reach Code Ordinance

3 ATTACHMENT 1

ORDINANCE NO 25-__

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GOLETA, CALIFORNIA, AMENDING TITLE 15, CHAPTER 15. 15 ENTITLED
“ENERGY CODE” OF THE GOLETA MUNICIPAL CODE TO ADOPT THE 2022 EDITION OF THE CALIFORNIA BUILDING AND ENERGY CODE

AND LOCAL AMENDMENTS THERETO AND DETERMINE THE

ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT

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ORDINANCE NO 25-02

AND LOCAL A MENDMENTS THERETO AND DETERMINE THE

ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS California Health and Safety Code Section 17958 requires that cities adopt building regulations that are substantially the same as those adopte d by the California Building Standards Commission and contained in the California Building Standards; and WHEREAS the California Energy Code is a part of the California Building Standards , which implement minimum energy efficiency standards in building s through mandatory requirements, prescriptive standards, and performance standards; and WHEREAS California Health and Safety Code Sections 17958.5, 17958.7 and 18941.5 provide that the City may make changes or modifications to the building standards contained in the California Building Standards based upon express finding that such changes or modifications are reasonably necessary because of local climatic, geological or topographical conditions; and
WHEREAS the City Council of the City of Goleta finds that each of the amendment additions and deletions to the California Energy Code contained in this ordinance are reasonably necessary because of local climatic, geological or topographical conditions; and
WHEREAS Public Resources Code Section 25402.1 (h)2 and Section 10 -106 of the Building Energy Efficiency Standards (Standards) establish a process which allows local adoption of energy standards that are more stringent than the statewide Standards, provided that such local standards are cost effective and the California Energy Commission finds that the standards will require building to be designed to consume no more energy than permitted by the California Energy Code; and WHEREAS, on or about September 20, 2016, the State of California enacted Senate Bill (SB) 32, which added Health and Safety Code Section 38566 to require greenhouse gas emissions to be reduced to 40 percent below 1990 levels by no later than December 31, 2030; and
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WHEREAS the City’s local amendments to the 2022 California Building Codes, including the California Green Building Code, increase requirements for single -family (e.g., townhomes), multifamily, and nonresidential structures beyond that of the State’s requirement because , base d on local climatic, geological or topographical conditions, they are necessary to reduce demands for local energy and resources, reduce regional pollution, and promote a lower contribution to greenhouse gases emissions; and

WHEREAS the content and details of this ordinance were the subject of a public stakeholder workshop conducted on January 14, 2025 , which included numerous stakeholders; and

WHEREAS staff has reviewed the cost effectiveness studies prepared by the California Statewide Codes and Standards Reach Code Program and associated study data and find them sufficient to illustrate compliance with the requirements set forth under California Administrative Code Chapter 10-106; and

WHEREAS the City’s local amendments will result in designs that consume less energy than they would under the 2022 State Energy Code through the California Statewide Codes and Standards Reach Code Program, has performed cost effectiveness analyses as required by the California Energy Commission for the local amendments to the California Energy Code contained in this ordinance which is hereby incorporated by reference; and

WHEREAS, based upon these analyses, the City Council of the Goleta finds that the local amendments to the California Energy Code contained in this ordinance have at least one cost effective pathway and will require buildings to be designed to consume no more energy than permitted by the California Energy Code; and

WHEREAS the Goleta City Council adopted a determination at a public meeting on February 4, 2025 , that the locally adopted energy efficiency standards contained in Ordinance No. 25-02 are cost-effective; and

WHEREAS adoption of Reach Codes support s the Goleta City Council’s Strategic Plan and climate action goals, which aim to reduce communitywide GHG emissions; and

WHEREAS the Goleta City Council adopted the 2023 -24 and 2024 -25 Planning and Environmental Review Annual Work Programs, which included developing Reach Codes that further building electrification as a top priority; and

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WHEREAS scientific evidence has established that GHG accumulation in the atmosphere as the result of human activity is the primary cause of the global climate crisis; and

WHEREAS, in California alone, the initial impacts of climate change have resulted in unprecedented disasters with consequential human, economic, and environmental costs; and

WHEREAS the climate change crisis is happeni ng now, impacting Goleta in unprecedented ways, and affecting the health and safety of the Goleta community; and

WHEREAS the Intergovernmental Panel on Climate Change estimates that global emissions need to be reduced by 45% from 2010 levels by 2030, and 100% by 2050 to prevent global catastrophe; and

WHEREAS,in 2016, the State of California enacted Senate Bill (SB) 32 to require GHG emissions to be reduced to 40% below 1990 levels by 2030 and in 2018 Governor Brown issued Executive Order B -55-18 establishing a statewide target of carbon neutrality by 2045; and

WHEREAS achieving climate goals will require action at all levels, including individual, community, local and state government, businesses and utilities, in order to protect the health and welfare of the community, while meeting state and federal efforts; and

WHEREAS the City must accelerate our actions to mitigate and adapt to climate change in Goleta, and more quickly move toward a low-carbon, sustainable, and resilient future; and

WHEREAS Goleta is already experiencing and is at risk of more frequently experiencing the devastating effects of extreme heat and weather events and flooding caused by climate change, including increased frequency and magnitude of wildfires and associated air pollution, health impacts, utility and transportation service interr uptions, economic disruption, property loss, dislocation, housing shortages, and increased demand on public sector resources and emergency response capacity; and

WHEREAS the City of Goleta is situated along a wildland-urban interface and as a result is extremely vulnerable to wildfires and firestorms according to the Federal Emergency Management Authority (FEMA) Wildfire Risk Index Map; and

WHEREAS Santa Barbara County is ranked in the 99.4 th national percentile and 84.5 th percentile in California for the natural hazard risk index; and

WHEREAS, because of the City’s unique local climatic, geologic and topographic conditions, the City desires to make amendments and additions to the code.

WHEREAS using electric heating and cooling infrastructure in new buildings fueled by less greenhouse gas intensive electricity is linked to significantly lower greenhouse gas 7

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emissions and is cost competitive because of the cost savings associated with all-electric designs that avoid new gas infrastructure; and

WHEREAS the most cost -effective time to integrate electrical infrastructure is in the design phase of a building project because building systems and spaces can be designed to optimize the performance of electrical systems, and the project can take full advantage of avoided costs and space requirements from the elimination of natural gas piping and venting for combustion air safety; and

WHEREAS it is the intent of the City Council to reduce natural gas emissions in new buildings where all electric infrastructure can be most practicably integrated, thereby reducing the environmental and health hazards produced by the consumption and transportation of natural gas;

NOW THEREFORE THE CITY COUNCIL OF THE CITY OF GOLETA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. RECITALS.

The City Council hereby finds and determines that the foregoing recitals, which are incorporated herein by reference, are true and correct.

SECTION 2. PUBLIC HEALTH AND SAFETY FINDINGS.

Pursuant to California Health and Safety Code Sections 17958.5, 17958.7, and 18941.5, the City of Goleta City Council declares that the following amendments to the Goleta Green Building Code are reasonably necessary due to local climactic, geological, or topographical conditions listed below and as set forth in the Recitals incorporated herein.

Goleta is already experiencing and is at risk of more frequently experiencing the devastating effects of extreme heat and weather events and flooding caused by climate change, including increased frequency and magnitude of wildfires and associated air pollution, health impacts, utility and transportation service interruptions, economic disruption, property loss, dislocation, housing shortages, and increased demand on public sector resources and emergency response capacity.

The City of Goleta is situated along a wildland-urban interface and as a result is extremely vulnerable to wildfires and firestorms according to the Federal Emergency Man agement Authority (FEMA) Wildfire Risk Index Map. Santa Barbara County is ranked in the 99.4 th national percentile and 84.5th percentile in California for the natural hazard risk index.

According to the 100-year and 500-year flood maps provided by FEMA, the City of Goleta has a significant risk of flooding during extreme weather events and flood events can majorly disrupt access to utilities, emergency services, and transportation. Extreme 8

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weather events are expected to increase as the climate warms due to the greenhouse gas effect.

The amendment is in the interests of public health and safety and general community welfare, as City residents suffer from asthma and other health conditions associated with poor air quality exacerbated by burning fossil fuels. Census tract 6083003001, located in Old Town Goleta, is in the 85th percentile for pollution burden in the state, designating this tract as a state recognized Disadvantage Community per SB 535 and indicated in CalEnviroScreen 4.0.

The local amendments to the 2022 California Green Building Standards Code implemented by this ordinance will reduce GHG emissions within the City with the intent to reduce the City’s contributions to climate change and in turn reduce the impacts of climate change.

SECTION 3. ENVIRONMENTAL FINDINGS. The City Council hereby finds and determines that this ordinance has been assessed in accordance with the California Environmental Quality Act (Cal. Pub. Res. Code, § 21000 et seq.) (“CEQA”) and the State CEQA Guidelines (14 Cal. Code Regs. § 15000 et seq.) and is categorically exempt from CEQA under CEQA Guidelines, § 15061(b)(3), which states that CEQA does not apply, "where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment ." These standards are more stringent than the State energy standards, and as such, there are no reasonably foreseeable adverse impacts, and there is no possibility that the Ordinance in question may have a significant effect on the environment. Adoption of the ordinance would not be an activity with potential to cause significant effect on the environment because the adoption and local amendments to the California Energy Code are enacted to provide more protection to the environment and therefore is exempt from CEQA. Therefore, it can be seen with certainty that there is no possibility that the ordinance in question may have a significant effect on the environment; accordingly, the ordinance is categorically exempt from CEQA.

SECTION 4. CODE AMENDMENT.

Chapter 15.15 Energy Code of Title 15 of the Goleta Municipal Code is hereby amended to read in its entirety as follows:

15.15.010 Adoption of Energy Code

15.15.020 Local Amendments to Definitions

15.15.030 Local Amendments to Nonresidential, Hotel/Motel Occupancies and Covered Processes – Mandatory Requirements

15.15.040 Local Amendments to Nonresidential and Hotel/Motel Occupancies – Mandatory Requirements for Lighting Systems and Equipment and Electrical Power Distribution Systems
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15.15.050 Local Amendments to Nonresidential and Hotel/Motel Occupancies – Performance and Prescriptive Compliance Approaches for Achieving Energy Efficiency

15.15.060 Local Amendments to Single-Family Residential Buildings – Mandatory Features and Devices

15.15.070 Local Amendments to Single -Family Residential Buildings – Performance and Prescriptive Compliance Approaches

15.15.080 Local Amendments to Multifamily Buildings – Mandatory Requirements

15.15.090 Local Amendments to Multifamily Buildings – Performance and Prescriptive Compliance Approaches

15.15.010 Adoption of Energy Code

A. The California Energy Code, 2022 Edition including the appendices thereto, except as may be amended by this chapter, are hereby adopted as the Energy Code of the City.

B. One copy of the California Energy Code shall be at all times maintained in the office of the Building Official for use and examination by the public.

15.15.020 Local Amendments to Definitions

A. Chapter 1 "All Occupancies – General Provisions," Section 100.1(b), "Definitions and Rules of Construction," of Chapter 1 of the Energy Code is amended to add the following definitions:

ELECTRIC HEATING APPLIANCE. A device that produces heat energy to create a warm environment by the application of electric power to resistance elements, refrigerant compressors, or dissimilar material junctions, as defined in the California Mechanical Code.

KITCHEN, INSTITUTIONAL COMMERCIAL is a kitchen dedicated to a foodservice establishment that provides meals at institutions including schools, colleges and universities, hospitals, correctional facilities, private cafeterias, nursing homes, and other buildings or structures in which care or supervision is provided to occupants.

KITCHEN, QUICK-SERVICE COMMERCIAL is a kitchen dedicated to an establishment primarily engaged in providing fast food, fast casual, or limited services. Food and drink may be consumed on premises, taken out, or delivered to the customer’s location.

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NET FREE AREA (NFA) is the total unobstructed area of the air gaps between louver and grille slats in a vent through which air can pass. The narrowest distance between two slats, perpendicular to the surface of both slats is the air gap height. The narrowest width of the gap is the air gap width. The NFA is the air gap height multiplied by the air gap width multiplied by the total number of air gaps between slats in the vent.

15.15.030 Local Amendments to Nonresidential, Hotel/Motel Occupancies and Covered Processes – Mandatory Requirements

A. Section 120.2 “Required Controls for Space-Conditioning Systems” of Subchapter 3 is amended to add Section 120.2(l) to be numbered, entitled and to read as follows:

(a) – (k): Subsections 120.2(a) – (k) are adopted without modification.

(l) HVAC Hot Water Temperature. Zones that use hot water for space heating shall be designed for a hot water supply temperature of no greater than 130 °F.

B. Section 120.6 “General” of Subchapter 3 is amended to add Section 120.6 to be numbered, entitled, and to read as follows:

(a) – (j): Subsections 120.6(a) – (j) are adopted without modification.

(k) Mandatory requirements for commercial kitchens. Electric Readiness for Newly Constructed Commercial Kitchens shall meet the following requirements:

1. Quick-service commercial kitchens and institutional commercial kitchens shall include a dedicated branch circuit wiring and outlet that would be accessible to cookline appliances and shall meet all of the following requirements:

a. The branch circuit conductors shall be rated at 50 amps minimum.

b. The electrical service panel shall have a minimum capacity of 800 connected amps.

2. The electrical service panel shall be sized to accommodate an additional either 208v or 240v 50-amp breaker.

EXCEPTION 1 to Section 120.6(k): healthcare facilities.

EXCEPTION 2 to Section 120.6(k): all-electric commercial kitchens. 11

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15.15.040 Local Amendments to Nonresidential and Hotel/Motel Occupancies – Mandatory Requirements for Lighting Systems and Equipment and Electrical Power Distribution Systems

A. Section 130.0 “Lighting Systems and Equipment, and Electrical Power Distribution Systems – General" of Subchapter 4 is amended to read as follows:

a. The design and installation of all lighting systems and equipment in nonresidential and hotel/motel buildings, outdoor lighting, and electrical power distribution systems within the scope of Section 100.0(a), shall comply with the applicable provisions of Sections 130.0 through 130.5130.6.

NOTE: The requirements of Sections 130.0 through 130.5130.6 apply to newly constructed buildings. Section 141.0 specifies which requirements of Sections 130.0 through 130.5130.6 also apply to additions and alterations to existing buildings.

B. Section 130.6 “Electric Readiness Requirements for Systems Using Gas or Propane” of Subchapter 4 is amended to add Section 130.6 to be numbered, entitled and to read as follows:

130.6 Electric Readiness Requirements for Systems Using Gas or Propane Where nonresidential systems using gas or propane are installed, the construction drawings shall indicate electrical infrastructure and physical space accommodating the future installation of an electric heating appliance in the following ways, as certified by a registered design professional or licensed electrical contractor.

a) Branch circuit wiring, electrically isolated and designed to serve all electric heating appliances in accordance with manufacturer requirements and the California Electrical Code, including the appropriate voltage, phase, minimum amperage, and an electrical receptacle or junction box within five feet of the appliance that is accessible with no obstructions.

Appropriately sized conduit may be installed in lieu of conductors; and

b) Labeling of both ends of the unused conductors or conduit shall be with “For Future Electrical Appliance”; and

c) Reserved circuit breakers in the electrical panel for each branch circuit, appropriately labeled (e.g. “Reserved for Future Electric Range”), and positioned on the opposite end of the panel supply conductor connection; and
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d) Connected subpanels, panelboards, switchboards, busbars, and transformers shall be sized to serve the future electric heating appliances.

The electrical capacity requirements shall be adjusted for demand factors in accordance with the California Electric Code; and
e) Physical space for future electric heating appliances, including equipment footprint, and if needed a pathway reserved for routing of ductwork to heat pump evaporator(s), shall be depicted on the construction drawings. The footprint necessary for future electric heating appliances may overlap with non-structural partitions and with the location of currently designed combustion equipment.

15.15.050 Local Amendments to Nonresidential and Hotel/Motel Occupancies – Performance and Prescriptive Compliance Approaches for Achieving Energy Efficiency
A. Section 140.0 “Performance and Prescriptive Compliance Approaches” of Subchapter 5 is amended to read as follows:

Nonresidential and hotel/motel buildings shall comply with all of the following:
a) The requirements of Sections 100.0 through 110.12 applicable to the building project (mandatory measures for all buildings). b) The requirements of Sections 120.0 through 130.56 (mandatory measures for nonresidential and high-rise residential and hotel/motel buildings). c) Either the performance compliance approach (energy budgets) specified in Section 140.1 or the prescriptive compliance approach specified in Section 140.2 for the Climate Zone in which the building will be located.

Climate zones are shown in FIGURE 100.1-A.

NOTE to Section 140.0(c): The Commission periodically updates, publishes and makes available to interested persons and local enforcement agencies precise descriptions of the Climate Zones, which is available by zip code boundaries depicted in the Reference Joint Appendices along with a list of the communities in each zone.

NOTE to Section 140.0: The requirements of Sections 140.1 through 140.10 apply to newly constructed buildings. Section 141.0 specifies which 13

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requirements of Section 140.1 through 140.10 also apply to additions or alterations to existing buildings.

B. Section 140.1 “Performance Approach: Energy Budgets” of Subchapter 5 is amended to read as follows:

A building complies with the performance approach if provided that:

1. The time-dependent valuation (TDV) energy budget calculated for the Proposed Design Building under Subsection (b) is no greater than the TDV energy budget calculated for the Standard Design Building under Subsection (a), and

2. The source energy budget calculated for the proposed design building under Subsection (b) has a source energy compliance margin, relative to the energy budget calculated for the standard design building under Subsection (a), of at least the value specified for the corresponding occupancy type in Table 140.1 - A below. of at least 7 percent for all nonresidential occupancies.

Table 140.1 – A SOURCE ENERGY COMPLIANCE MARGINS

Occupancy Type Source Energy Use Compliance
Margin
Hotel 7%
Small Restaurant 2%
Office 14%
All Other Building Types 7%

EXCEPTION 1 to 140.1 item 2. A source energy compliance margin of 0 percent or greater is required when nonresidential occupancies are designed with single zone space-conditioning systems complying with Section 140.4(a)2.

(a) – (c): Subsections 140.1 (a) – (c) are adopted without modification.

15.15.060 Local Amendments to Single-Family Residential Buildings – Mandatory Features and Devices

A. Section 150.0 “Mandatory Features and Devices” of Subchapter 7 is amended as follows:

Single -family residential buildings shall comply with the applicable requirements of Sections 150(a) through 150.0(v).

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NOTE: The requirements of Sections 150.0 (a) through ( v) apply to newly constructed buildings. Sections 150.2(a) and 150.2(b) specify which requirements of Sections 150.0(a) through 150.0(r) also apply to additions or alterations. The amendments to sections 150.0 (t) do not apply to additions or alterations.

(a) – (s): Subsections 150.0(a) – (s) are adopted without modification.

(t) Heat pump space heater ready. Systems using gas or propane furnace to serve individual dwelling units shall include the following:

1. A dedicated 240 -volt branch circuit wirin g shall be installed within 3 feet from the furnace and accessible to the furnace with no obstructions. The branch circuit
conductors shall be rated at 30 amps minimum. The blank cover shall be identified as “240V ready.” All electrical components shall be installed in accordance with the
California Electrical Code.

2. The main electrical service panel shall have a reserved space to allow for the installation of a double pole circuit breaker for a future heat pump space heater installation.

The reserved space shall be permanently marked as “For
Future 240V use.”

3. A designated exterior location for a future heat pump compressor unit with either a drain or natural drainage for condensate.

(u) – (v): Subsections 150.0(u) – (v) are adopted without modification.

15.15.070 Local Amendments to Single-Family Residential Buildings – Performance and Prescriptive Compliance Approaches

A. Section 150.1 “Performance and Prescriptive Compliance Approaches for Single Family Residential Buildings” of Subchapter 8 is amended to read as follows:

(a) Section (a) is adopted without modification

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(b) Performance Standards. A building complies with the performance standards if the energy consumption calculated for the proposed design building is no greater than the energy budget calculated for the standard design building using Commission -certified compliance soft ware as specified by the Alternative Calculation Methods Approval Manual , as specified in sub -sections 1, 2 and 3 below.

1. Newly Constructed Buildings. The Energy Budget for newly constructed buildings is expressed in terms of the Energy Design Ratings, which are based on source energy and time -dependent valuation (TDV) energy. The Energy Design Rating 1 (EDR1) is based on source energy. The Energy Design Rating 2 (EDR2) is based on TDV energy and has two components, the Energy
Efficiency Design Rating, a nd the Solar Electric Generation and Demand Flexibility Design Rating. The total Energy Design Rating shall account for both the Energy Efficiency Design Rating and the Solar Electric Generation and Demand Flexibility Design Rating. The proposed building s hall separately comply with the Source Energy Design Rating, Energy Efficiency Design Rating and the Total Energy Design Rating. A building complies with the performance approach if the TDV energy budget calculated for the proposed design building is no g reater than the TDV energy budget calculated for the Standard Design Building AND Source Energy compliance margin of at least 5, relative to the Source Energy Design Rating 1 calculated for the Standard Design building.

EXCEPTION 1 to Section 150.1(b)1. A community shared solar electric generation system, or other renewable electric generation system, and/or community shared battery storage system, which provides dedicated power, utility energy reduction credits, or payments for energy bill reductions, to the permitted building and is approved by the Energy Commission as specified in Title 24, Part 1, Section 10-115, may offset part or all of the solar electric generation system Energy Design Rating required to comply with the Standards, as calculated according to methods established by the Commission in the Residential ACM Reference Manual.

EXCEPTION 2 to Section 150.1(b)1. A newly constructed building with a conditioned floor area less than 1,500 square feet shall achieve a Source Energy compliance margin of 2 or greater, relative to the Source Energy Design Rating 1 calculated for the Standard Design building.

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EXCEPTION 3 to Section 150.1(b)1. If due to conditions specific to the project it is technically infeasible to achieve compliance, the Building Official may reduce the compliance margin for a dwelling unit of not more than 1,500 square feet of conditioned floor space.

EXCEPTION 4 to Section 150.1(b)1. A newly constructed Accessory Dwelling Unit, as defined by Goleta Municipal Code Section 17.41.030, shall achieve a Source Energy compliance margin of 0 or greater, relative to the Source Energy Design Rating 1 calculated for the Standard Design building.

2. Section (b)(2) is adopted without modification.

3. Section (b)(3) is adopted without modification.

15.15.080 Local Amendments to Multifamily Buildings – Mandatory Requirements

A. Section 160.4 “Mandatory Requirements for Water Heating Systems” of Subchapter 10 is amended to remove subsection (a) as follows:

(a) Reserved. Systems using gas or propane water heaters to serve individual dwelling units shall include the following components:

1. A dedicated 125 volt, 20 amp electrical receptacle that is connected to the electric panel with a 120/240 volt 3 conductor, 10 AWG copper branch circuit, within 3 feet from the water heater and accessible to the water heater with no obstructions. In addition, all of the following:

A. Both ends of the unused conductor shall be labeled with the word “spare” and be electrically isolated; and
B. A reserved single pole circuit breaker space in the electrical panel adjacent to the circuit breaker for the branch circuit in A above and labeled with the words “Future 240V Use”; and

2. A Category III or IV vent, or a Type B vent with straight pipe between the outside termination and the space where the water heater is installed; and

3. A condensate drain that is no more than 2 inches higher than the base of the installed water heater, and allows natural draining without pump assistance; and

4. A gas supply line with a capacity of at least 200,000 Btu/hr.

Sections (b) to (f) are adopted without amendments.

B. Section 160.9 “Mandatory Requirements for Electric Ready Buildings” of Subchapter 10 is amended to read as follows:

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(a) – (c): Subsections 160.9(a) – (c) are adopted without modification.

(d) Individual Heat Pump Water Heater Ready. Systems using gas or propane water heaters to serve individual dwelling units shall include the following components and shall meet the requirements of Section 160.9(f):

1. A dedicated 125 volt, 20 amp electrical receptacle that is connected to the electric panel with a 120/240 volt 3 conductor, copper branch circuit rated to 30 amps, within 3 feet from the water heater and accessible to the water heater with no obstructions. In addition, all of the following:

A. Both ends of the unused conductor shall be labeled with the word “spare” and be electrically isolated; and

B. A reserved single pole circuit breaker space in the electrical panel adjacent to the circuit breaker for the branch circuit in A above and labeled with the words “Future 240V Use”;

2. A condensate drain that is no more than 2 inches higher than the base of the installed water heater, and allows natural draining without pump assistance,

3. The construction drawings shall indicate the location of the future heat pump water heater. The reserved location shall have minimum interior dimensions of 39”x39”x96”,

4. A ventilation method meeting one of the following:

A. The designed space reserved for the future heat pump water heater shall have a minimum volume of 700 cubic feet; or

B. The designed space reserved for the future heat pump water heater shall vent to a communicating space in the same pressure boundary via permanent openings with a minimum total net free area of 250 square inches so that the total combined volume connected via permanent openings is 700 cu. ft. or larger. The permanent openings shall be:

i. Fully louvered doors with fixed louvers consisting of a single layer of fixed flat slats; or

ii. Two permanent fixed openings, consisting of a single layer of fixed flat slat louvers or grilles, one
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commencing within 12 inches from the top of the
enclosure and one commencing within 12 inches from
the bottom of the enclosure.

C. The designed space reserved for the future heat pump water heater shall include two 8” capped ducts, venting to the building exterior:

i. All ducts, connections and building penetrations shall be sealed.

ii. Exhaust air ducts and all ducts which cross pressure boundaries shall be insulated to a minimum insulation
level of R-6

iii. Airflow from termination points shall be diverted away from each other.

(e) Central Heat Pump Water Heater Electric Ready. Central water heating systems using gas or propane to serve multiple dwelling units shall include the following:

1. The system input capacity of the gas or propane water heating system shall be determined as the sum of the input gas or propane capacity of all water heating devices associated with each gas or propane water heating system.

2. Space reserved shall include:

A. Heat Pump. The minimum space reserved shall include space for service clearances and air flow clearances and shall meet one of the following:

i. If the system input capacity of the gas water heating system is less than 200,000 BTU per hour, the
minimum space reserved for the heat pump shall be

2.0 square feet per input 10,000 BTU per hour of the
gas or propane water heating system, and the
minimum linear dimension of the space reserved shall
be 48 linear inches.

ii. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU per
hour, the minimum space reserved for the heat pump
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shall be 3.6 square feet per input 10,000 BTU per
hour the gas or propane water heating system, and
the minimum linear dimension of the space reserved
shall be 84 linear inches.

iii. The space reserved shall be the space required for a heat pump water heater system that meets the total
building hot water demand as calculated and
documented by the responsible person associated
with the project.

B. Tanks. The minimum space reserved shall include space for service clearances and shall meet one of the following:

i. If the system input capacity of the gas water heating system is less than 200,000 BTU per hour, the
minimum space reserved for the storage and
temperature maintenance tanks shall be 4.4 square
feet per input 10,000 BTU per hour of the gas or
propane water heating system.

ii. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU per
hour, the minimum physical space reserved for the
storage and temperature maintenance tanks shall be

3.1 square feet per input 10,000 BTU per hour of the
gas or propane water heating system.

3. Ventilation shall be provided by meeting one of the following:

A. Physical space reserved for the heat pump shall be located outside, or

Page 17 of 21 ends

future use. The reserved pathway and penetrations through the building envelope shall be sized to meet one of the following:

ii. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU per
hour, the minimum air flow rate shall be 420 CFM per
input 10,000 BTU per hour of the gas or propane water
heating system and the total external static pressure
drop of ductwork and louvers shall not exceed 0.17 inch when the future heat pump water heater is installed.

iii. The reserved pathway and penetrations shall be sized to serve a heat pump water heater system that meets
the total building hot water demand as calculated and
documented by the responsible person associated with
the project.

4. Condensate drainage piping. An approved receptacle that is sized in accordance with the California Plumbing Code to receive the condensate drainage shall be installed within 3 feet of the reserved heat pump location, or piping shall be installed from within 3 feet of the reserved heat pump location to an approved discharge location that is sized in accordance with the California Plumbing Code, and meets one of the following:

A. If the system input capacity of the gas water heating system is less than 200,000 BTU per hour, condensate drainage shall be sized for 0.2 tons of refrigeration capacity per input 10,000 BTU per hour.

B. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU per hour, condensate drainage shall be sized for 0.7 tons of refrigeration capacity per input 10,000 BTU per hour.

Page 18 of 21 ends

C. Condensate drainage shall be sized to serve a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project.

5. Electrical.

A. Physical space shall be reserved on the bus system of the main switchboard or on the bus system of a distribution board to serve the future heat pump water heater system including the heat pump and temperature maintenance tanks. In addition, the physical space reserved shall be capable of providing adequate power to the future heat pump water heater as follows:

i. Heat Pump. For the Heat Pump, the physical space reserved shall comply with one of the following:

A. If the system input capacity of the gas water heating system is less than 200,000 BTU per hour, provide

0.1 kVA per input 10,000 BTU per hour.

B. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU per
hour, provide 1.1 kVA per input 10,000 BTU per hour.

C. The physical space reserved supplies sufficient
electrical power required to power a heat pump water
heater system that meets the total building hot water
demand as calculated and documented by the
responsible person associated with the project.

ii. Temperature Maintenance Tank. For the Temperature
Maintenance Tank, the physical space reserved shall comply with one of the following:

A. If the system input capacity of the gas water heating system is less than 200,000 BTU per hour, provide

1.0 kVA per input 10,000 BTU per hour.

B. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU per
hour, provide 0.6 kVA per input 10,000 BTU per hour.

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(f) The building electrical system shall be sized to meet the future electric requirements of the electric ready equipment specified in sections 160.9 a – e. To meet this requirement the building main service conduit, the electrical system to the point specified in each subsection, and any on-site distribution transformers shall have sufficient capacity to supply full rated amperage at each electric ready appliance in accordance with the California Electric Code.

15.15.090 Local Amendments to Multifamily Buildings – Performance and Prescriptive Compliance Approaches

A. Section 170.1 “Performance Approach” of Subchapter 11 is adopted with amendments as follows:

A building complies with the performance approach if the TDV energy budget calculated for the proposed design building under Subsection (b) is no greater than the TDV energy budget calculated for the Standard Design Building under Subsection (a). Additionally,

1. The energy budget, expressed in terms of source energy, of a newly constructed low-rise multifamily building (three habitable stories or less) shall be at least 7 percent lower than that of the Standard Design Building.

Sub-sections (a) to (d) are adopted without amendments.

SECTION 5. SEVERABILITY.

If any word, phrase, sentence, part, section, subsection, or other portion of this Chapter, or any application thereof to any person or circumstance is declared void, unconstitutional, or invalid for any reason, then such word, phrase, sentence, part, section, subsection, or other portion, or the prescribed application thereof, shall be severable, and the remaining provisions of this Chapter, and all applications thereof, not having been declared void, unconstitutional or invalid, shall remain in full force and effect. The City Council hereby declares that it would have passed this title, and each section, subsection, sentence, clause, and phrase of this Chapter, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases is declared invalid or unconstitutional. 23

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SECTION 6. CERTIFICATION.

The City Clerk shall certify to the adoption of this ordinance and, within 15 days after its adoption, shall cause it to be published in accord with California Law.

SECTION 7. EFFECTIVE DATE.

This ordinance shall take effect following submission to and approval by the California Energy Commission , at least 30 days following adoption by the City Council.

INTRODUCED ON the 3rd day of June, 2025.

PASSED, APPROVED, AND ADOPTED this ________day of ______, 2025.

_________________________

PAULA PEROTTE, MAYOR

ATTEST: APPROVED AS TO FORM:

__________________________ _________________________
DEBORAH S. LOPEZ ISAAC ROSEN

CITY CLERK ACTING CITY ATTORNEY

Page 21 of 21 ends

STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss.

CITY OF GOLETA )

I, Deborah S. Lopez, City Clerk of the City of Goleta, California, do hereby certify that the foregoing Ordinance No. 25 -__ was introduced on _______, and adopted at a regular meeting of the City Council of the City of Goleta, California, held on the _______, by the following roll-call vote, to wit:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

(SEAL)

_________________________
DEBORAH S. LOPEZ

CITY CLERK

25 ATTACHMENT 2

Staff Packet for Energy Performance Reach Code Ordinance from February 18, 2025 26 Agenda Item C.1

PUBLIC HEARING
Meeting Date: February 18, 2025
TO: Mayor and Councilmembers
SUBMITTED BY: Peter Imhof, Planning and Environmental Review Director PREPARED BY: Dana Murray, Sustainability Manager
Angeline Foshay, Management Analyst
SUBJECT: Second Reading of Ordinance Amending Title 15, Chapter 15. 15 of the Goleta Municipal Code for an Energy Performance Reach Code
RECOMMENDATION:

A. Hold a public hearing and conduct the second reading by title only, waiving further reading of Ordinance No. 25-__ entitled, “An Ordinance of the City Council of the City of Goleta, California, Amending Title 15, Chapter 15.15 Entitled “Energy Code” of the Goleta Municipal Code to Adopt the 2022 Edition of the California Building and Energy Code and Local Amendments Thereto and Determine the Ordinance to be Exempt from the California Environmental Quality Act.” B. Find the adoption of Ordinance No. 25 -__ exe mpt from the California Environmental Quality Act and direct staff to file a Notice of Exemption within five (5) business days.

SUMMARY:

An Energy Performance Reach Code would modify the California Energy Code within the City to require a higher level of energy performance for new construction. Staff and the Green Committee recommend that the City Council consider adoption of an Energy Performance Reach Code. The proposed ordinance encourages electrification while still allowing for natural gas in buildings, although they may need to comply with additional energy performance measures. These additional measures may include increased energy efficiency (i.e., higher insulation), increased solar panel system size, and battery storage systems. For newly constructed buildings where fuel gas infrastructure is permitted due to any qualifying exceptions, they would be required to have sufficient electrical capacity, including reserved circuit breakers, electrical conduit, subpanels, panels, switchboards, and transformers, to facilitate future full-building electrification. 1 27
Meeting Date: February 18, 2025

Page 2 of 10 ends

The ordinance would:

 Require higher energy performance for new single -family, low -rise multifamily buildings and non-residential buildings, including pre-fabricated buildings. o Provide for either reduced margins or exceptions for smaller homes and accessory dwelling units.
 Extend electric readiness requirements through:
o Exterior location for space heat pump compressor in single-family; o Space and ventilation requireme nts for in-unit water heaters in multifamily buildings;
o Electrical capacity requirements for multifamily central hot water systems, with an option to include space, ventilation, and condensate requirements.  Be implemented through the submission of Title 24 reports, which are already a standard submission for all new projects.

The ordinance would NOT:
 Prohibit or prevent gas technologies.
 Apply to additions and alterations.
 Apply to unregulated loads such as equipment and appliances for cooking, laundry, and pools.

BACKGROUND:

Definitive climate data has revealed the urgent need for regulatory action. In 2016, California responded to this demand by adopting comprehensive goals to reduce GHG emissions and support local governments in carrying out community-level emissions reductions strategies. With the passage of Senate Bill 32 in 2016, California set targets to reduce statewide GHG emissions to 40% below 1990 levels by 2030 and 80% below 1990 levels by 2050. To reach these state emissions targets , decarbonizing the building sector is essential. The primary method for the decarbonization of buildings is electrification, as escalating renewable portfolio standards have been and will continue to reduce the emissions content of our electricity.

The California Air Resources Board (CARB) 2022 Scoping Plan provides an implementation pathway to meet the State’s carbon reduction goals. Statewide, residential and commercial buildings are responsible for approximately 25% of California’s greenhouse gas (GHG) emissions when accounting for fossil fuels, such as natural gas consumed onsite and via electricity demand. The Scoping Plan recommends all-electric buildings become standard for residential construction starting in 2026 and non-residential construction starting in 2029 to improve indoor air quality and reduce GHG emissions to meet state goals.

In 2020, Goleta’s energy use (from both electricity and natural gas) accounted for 40.4% of the community’s total emissions. Of that total energy use, natural gas use in buildings accounted for 40% of Goleta’s energy emissions. While efforts have been made to decarbonize the natural gas system through the development of renewable natural gas, there are insufficient supplies to properly meet state and local demand, ultimately leaving 2 28
Meeting Date: February 18, 2025

Page 3 of 10 ends

the full decarbonization of the natural gas system infeasible. As stated in the 2021 California Energy Commission (CEC) Integrated Energy Policy Report, “Building electrification is the most promising decarbonization strategy and could result in significant reductions in residential and commercial building gas demand.” Taking action locally, the Goleta City Council voted unanimously to pass an all -electric new construction ordinance on April 18, 2023. However, on April 17, 2023, a three-judge panel of the Ninth Circuit Court of Appeals ruled in CRA v. City of Berkeley , that a Berkeley ordinance requiring all -electric new buildings was pre -empted by the federal Energy Policy and Conservation Act of 1975 (EPCA) and was therefore invalid. Due to the Ninth Circuit’s decision to overturn the City of Berkeley’s natural gas ban for new construction, Goleta’s second reading to pass the ordinance was placed on hold. In January 2024, the full Ninth Circuit panel denied the City of Berkeley’s request for an en banc (full court panel) hearing. In effect, the Ninth Circuit Court of Appeal ruling stands:

Berkeley’s all-electric ordinance is preempted by federal law, and, as a result, all-electric ordinances by any other city would not survive legal challenge.

Based on Council feedback and unanimous interest in pursuing electrification policy from the April 18, 2023 Council meeting, staff added “New Construction Building Electrification:

Evaluate Reach Code Options & Policy Development” to the 2024 -2025 PER Annual Work Program. Since the CRA v. City of Berkeley decision, many cities in California have evaluated alternative policy approaches to support new construction electrification. Staff has monitored new policy developments and collaborated with the Green Cities Network to find alternative pathways to incentivize electrification for new cons truction. Many jurisdictions with previously developed or adopted all -electric Reach Codes have been evaluating alternative options to pursue electrification and decarbonize their new and existing building stock. Notably, the Cities of San Luis Obispo, San Jose, Palo Alto, East Palo Alto, Santa Monica, Brisbane, Encinitas , and Santa Cruz have adopted Energy Performance Reach Codes in late 2023 and throughout 2024, which Goleta staff have been tracking closely.

On November 21, 2024, the Goleta City Council Energy & Green Issues Standing Committee was provided an update on building electrification policy and presented with a recommended pathway to improve new construction building performance. Staff were advised to construct a primer or brief to demonstrate t he process of compliance for a project applicant and conduct further outreach to the community and developers that may be impacted by policy adoption in 2025. The Committee unanimously supported staff in developing an ordinance and bringing an Energy Perfo rmance Reach Code to City Council for review and consideration.

On February 4 th, 2025, the Goleta City Council introduced and voted unanimously to approve the ordinance at First Reading.

DISCUSSION:

Staff recommends the Goleta City Council consider adopting an Energy Performance Reach Code that would increase the performance requirements for newly constructed 3 29
Meeting Date: February 18, 2025

Page 4 of 10 ends

buildings, resulting in a reduction of building emissions. This Reach Code would not ban natural gas systems in new construction but require a uniformly applied increase in building performance to drive building decarbonization . The proposed Ordinance is included as Attachment 1.

With the City’s all -electric ordinance for new construction on pause, supporting policies and programs that incentivi ze and remove barriers to electrification in existing buildings provides an opportunity to reduce carbon emissions and improve indoor air quality for Goleta residents. According to CARB, buildings emit about 66 tons per day (tpd) of NOx to the ambient air, about four times the emissions from electric utilities and nearly two - thirds the emissions from light-duty vehicles statewide. Electric heat pumps for space and water heating are more efficient than their natural gas counterparts and have the added safety benefits of lowering the potential for carbon monoxide poisoning and gas explosions.

The most cost -effective time to electrify is during the development of new construction, and new construction provides the best opportunity to avoid “lock -in emissions” which would be created through the inclusion of natural gas infrastructure in new build ings.

While it will yield less emissions savings than an all-electric Reach Code, the City can still further support all-electric projects by increasing energy efficiency, solar, and/or battery requirements for both mixed fuel and all -electric buildings because it is typically simpler for all-electric buildings to comply.

Based on these observations, staff recommend adopting an Energy Performance Reach Code to reduce greenhouse gas emissions from new buildings.

Proposed Approach

Staff have identified local amendments to the California Energy Code (also known as a “Reach Code”) to reduce greenhouse gas emissions in new buildings as the preferred alternative approach.

The proposed Energy Performance Reach Code would include requir ements for new buildings that would result in higher efficiency and lower operational greenhouse gas emissions. To be consistent with state law, the City must make findings that the proposed Building Code amendments related to building energy performance are cost-effective and use less energy than the standard State Code. The California Energy Commission (CEC) must agree with the City's analysis before the local amendments to the California Energy Code can go into effect.

The California Energy Code establ ishes whole-building efficiency requirements, which account for a building’s water heater, HVAC (heating, ventilation, and air conditioning) system, solar generating system, and insulation, among other things. However, it does not account for cooking equipment, laundry dryers, or other unregulated energy uses. As such, the proposed Energy Performance Reach Code does not regulate cooking equipment, laundry dryers, fireplace, outdoor cooking, or other energy uses not addressed by the California Energy Code.
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California Energy Code Energy Evaluation Metrics

The 2022 California Energy Code provides baseline efficiency and building performance standards that a project must meet before receiving a building permit. The California Energy Code provides different metrics for different types of buildings. These metrics are summarized below, and described in a Memo (Attachment 2). (For more information, visit:
https://energycodeace.com/resources/?itemId=66025)

Under the performance pathway of the 2022 Energy Code, new construction buildings must meet energy standards based on efficiency, emissions, and energy use. Single - family homes are rated using Energy Desi gn Ratings (EDR), which measure energy efficiency, energy costs, solar impacts and more. A key focus of this proposal is the EDR1 metric, commonly known as hourly source energy.

Multi-family and non-residential buildings use similarly intentioned metrics and must meet standards for energy cost, emissions, and solar or battery contributions. The key metric of importance for this proposal is the "Source Energy" metric, which promotes renewable energy and decarbonization.

Proposed Energy Performance Enhancements

Public Resources Code Section 25402.1(h)(2) and Section 10-106 of the Building Energy Efficiency Standards establish a process that allows local adoption of energy standards that are more stringent than the statewide standards. Under this p rocess, the CEC requires any local amendments to the California Energy Code that affect energy use in regulated buildings to be cost -effective and use less energy than the standard requirements.

As noted in Table 1 below, the EDR1 of single -family residential new buildings would be required to be less than the EDR1 of the standard design by a compliance margin of at least 5 points. Smaller single -family homes would have a reduced compliance margin requirement of 2 points due to their smaller size and ener gy usage and thus lower capacity for energy improvements. Accessory dwelling units (ADUs) are exempt.

Table 1 also identifies a Source Energy performance requirement for new multi -family residential buildings (7% better than code for low -rise [three stories or fewer). High-rise [four stories or more] is not included as the State Code prescriptively requires a ba ttery storage system in this building type , making it more difficult to comply with an extended reach beyond the state code.

New non-residential buildings would be required to have a compliance margin of 2% - 14%, depending on the building type. Office facilities have a higher compliance margin of 14% because they tend to have larger conditioned floor areas, which translates to higher savings potential.

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Page 6 of 10 ends

An exemption is available for non-residential projects designed with single -zone space- conditioning systems where California Energy Code Section 140.4(a)2 is applicable because the State Code prescriptively requires the use of heat pumps, making it di fficult for mixed-fuel buildings to comply already.

Due to how EDR1 and Source Energy scores are calculated in the 2022 California Energy Code, the higher standards proposed in the Reach Code would incentivize new buildings to select electric appliances/mechanical systems, while also allowing mixed-fuel buildings that include energy efficiency measures, solar, and/or a battery. The enhanced performance requirements would apply equally to mixed-fuel and all-electric buildings and are cost-effective to achie ve through the Energy Code’s performance pathway without requiring appliances that exceed federal efficiency standards.

Table 1. Proposed Improved Energy Performance Standards Building Type Performance Requirement
Single-Family Residential Buildings > 1,500 sq. ft. - EDR1 compliance margin of at least 5 points
Buildings <1,500 sq. ft .– EDR1
compliance margin of at least 2 points
Multi-Family Residential (Low) Source Energy compliance margin of at least 7%
Non-Residential Source Energy compliance margin of at
least the following:

Hotel – 7%
Small Restaurants – 2%
Office – 14%
All Other Building Types – 7%
Exceptions Single Family: Accessory Dwelling Units
(ADUs)
Non-residential: When non-residential
occupancies are designed with single
zone space-conditioning systems
complying with Section 140.4(a)2.

Electric Ready Requirements

The 2022 California Energy Code currently requires certain mixed -fuel buildings to include “electric -ready” components, including electric outlets near certain natural gas appliances, appropriate ventilation for future heat pump appliances, and reserved and labeled breakers in the electrical panel for future electric appliances.

The proposed Reach Code adds to the 2022 California Energy Code by including electric readiness provisions (which are coming 2025 California Energy Code and will be effective on January 1, 2026 ). This Reach Code essentially brings forward the coming electric readiness regulation by several months.

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Practical Effect of the Energy Performance Reach Code

Because the City is working within the confines of the California Energy Code, the description of the proposed approach above is inherently technical. This section illustrates the practical effect of the proposed approach by providing a simplified example of how a single-family home designer would comply with the Energy Performance Reach Code.

A building designer working on a single -family home built to the State’s Energy Code minimum would likely include high efficiency LED lighting, rooftop solar, an electric heat pump hot water heater, a natural gas furnace, insulated walls, an insulated attic, and efficient windows, among other things. The designer would load the building design into a computer model and estimate its energy performance. The energy modeling software would provide standard reporting metrics, including an EDR1 score. The designer would then compare the EDR 1 score to a standard design building on the CF -1R form. The designed building’s EDR1 score would be equal to the standard design building’s EDR1 score and would comply with that part of the California Energy Code.

With the Reach Code in place, the desig ner would now need to achieve an EDR1 compliance margin that is 5 points better than the standard design building. If this building designer replaced the gas furnace with a commonly available electric heat pump HVAC system, the building would achieve an ED R1 compliance margin that is 5 points better than the State Code’s minimum and would be consistent with the proposed Reach Code requirements. Alternately, the building designer could keep the gas furnace and install a battery storage system, which would also result in an improved EDR1 compliance margin of more than 5 points. The building designer also has the option to develop a package of efficiency and solar measures; so long as the measures lead to an increased EDR1 compliance margin of 5 or more points better than the State Code’s minimum, the new building is consistent with the Reach Code.

This example is similar for the other building types where the compliance margins could be achieved by either installing electric heat pump HVAC equipment or instal ling some package of additional solar capacity and efficiency measures.

Cost-Effectiveness

The California Energy Commission requires any local amendments to the California Energy Code that affect energy use in regulated buildings to be cost-effective and to use less energy than the standard requirements. The CEC requires the local agency to adopt a determination that the energy standards are cost -effective at a public meeting. The determination must subsequently be filed with the Energy Commission. In s upport of Reach Code development, the California Energy Codes and Standards Statewide Utility Program developed and published the following studies:

 2022 Cost -Effectiveness Study: Single Family New Construction Study and the associated cost-effectiveness data;
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Page 8 of 10 ends

 2022 Cost -Effectiveness Study: Multifamily New Construction Study and the associated cost-effectiveness data; and
 2022 Code: Non-residential New Construction Reach Code Cost -effectiveness Study and the associated cost-effectiveness data.

These studies and the associated cost -effectiveness data are highly detailed and are included in the record to support Green Committee and Council’s findings and policy decisions (Attachment 3). These studies and the associated cost -effectiveness data are the basis for staff’s cost-effectiveness findings and are sufficient to illustrate compliance with the requirements set forth under California Administrative Code Chapter 10-106.

Based on these studies, staff finds the proposed local amendments to the 2022 California Energy Code to be cost-effective and consume less energy than otherwise permitted by Title 24, Part 6.

Incentives

Incentive and rebate programs are avail able to support the development of all -electric housing and the adoption of clean energy solutions, contributing to California's decarbonization goals. Notably, Central Coast Community Energy (3CE) provides rebates for housing developers and homeowners to build all-electric housing. Rebates are available for multiple types of housing developments, with enhanced rebates available for homeowners building Accessory Dwelling Units (ADUs) and for Single-family Disaster Rebuilds. See Attachment 4 for more information on rebates and incentives.

Public Engagement

As described in the 2023 Council Agenda reports, extensive outreach was conducted in various community forums and settings affirming that all -electric new buildings are feasible, cost -effective, and supportive of the City’s climate action goals. The City coordinated and collaborated with the County of Santa Barbara, City of Carpinteria, and numerous utilities, consultants and energy -focused organizations to conduct outreach.

The regional group organized an Advisory Committee of stakeholders, hosted multiple public workshops discussing Reach Codes and the benefits of electrification, and conducted targeted outreach to the South Coast Chamber of Commerce, the Joint Affordable Housing Task Group, Santa Barbara Association of Realtors and the Regional Climate Collaborative Equity and Outreach Subcommittee. The work conducted in support of the previous all-electric Reach Code provides a groundwork of understanding around building electrification in the community and supports any future Council policies related to low-emissions new buildings.

Staff has continued to collaborate with the County of Santa Barbara, City of Santa Barbara, and the City of Carpinteria, including recent meetings with regional stakeholders such as the South Coast Chamber of Commerce Public Policy Committee and Santa Barbara Association of Realtors. In addition to targeted stakeholder outreach, on January 14, 2025, staff collaborated with the County of Santa Barbara to conduct additional community outreach on the Energy Performance Reach Code through a public workshop 8 34
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with various stakeholders in attendance , where staff presented on the Reach Code and held a discussion with the public and answered three questions that were asked.

Timing & Next Steps

Should City Council move forward with the second reading and adoption, staff would then submit the ordinance to the California Energy Commission (CEC) and California Building Codes and Standards. Before the Reach Code goes into effect, the CEC must approve the local energy code following the second reading. The CEC ensures that the local energy Reach Code improves building energy performance, is cost -effective and does not pre-empt Federal standards regulating appliance energy us e. It is important to note that the California Building Code, which includes the California Energy Code, is updated every three years. Should City Council adopt the Energy Performance Reach Code, the local Reach Code would expire with the current Building Code on December 31, 2025.

Staff is already coordinating regionally with other jurisdictions in San Luis Obispo County and Santa Barbara County on developing potential Reach Codes for the next cycle.

FISCAL IMPACTS:

There is no fiscal impact associated with this item.

GOLETA STRATEGIC PLAN:

City-Wide Strategy: 1. Support Environmental Vitality

Strategic Goal:
 1.1.3. Encourage renewable energy generation and use through installation of solar panels, battery energy storage, electric vehicle charging stations and similar measures
 1.1.4. Adopt a "Reach" Building Code

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

This ordinance has been assessed in accordance with the California Environmental Quality Act (Cal. Pub. Res. Code, § 21000 et seq.) ("CEQA") and the State CEQA Guidelines (14 Cal. Code Regs.§ 15000 et seq.) and is categorically exempt from CEQA under CEQA Guidelines § 15061(b)(3), which exempts from CEQA any project where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Adoption of the proposed amendment would not be an activity with potential to cause significant effect on the environment. Therefore, it can be seen with certainty that there is no possibility that the ordinance in question may have a significant effect on the environment; accordingly, the ordinance is categorically exempt from CEQA. A copy of the NOE is provided as an Attachment.

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ALTERNATIVES:

1) Amend the ordinance and re-introduce it for first reading; or 2) direct staff to return with further information; or 3) take no action.

LEGAL REVIEW BY: Isaac Rosen, Acting City Attorney

APPROVED BY: Robert Nisbet, City Manager

ATTACHMENTS:

1. Ordinance No. 25 -__ entitled, “An Ordinance of the City Council of the City of Goleta, California, Amending Title 15, Chapter 15.15 Entitled “Energy Code” of the Goleta Municipal Code to Adopt the 2022 Edition of the California Building and Energy Code and Local Amendments Thereto and Determine the Ordinance to be Exempt from the California Environmental Quality Act”

2. Memo on Energy Performance Approach for Goleta Reach Code

3. 2022 Cost Effectiveness Studies (Multifamily, Single-family, Non-residential)

4. Building Performance Incentives

5. CEQA Notice of Exemption

6. Presentation
10 36
ATTACHMENT 1

Ordinance No. 25 -__ entitled, “An Ordinance of the City Council of the City of Goleta, California, Amending Title 15, Chapter 15.15 Entitled “Energy Code” of the Goleta Municipal Code to Adopt the 2022 Edition of the California Building and Energy Code and Local Amendments Thereto and Determine the Ordinance to be Exempt from the California Environmental Quality Act”

11 37
ORDINANCE NO 25-__

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GOLETA, CALIFORNIA, AMENDING TITLE 15, CHAPTER 15. 15 ENTITLED “ENERGY CODE” OF THE GOLETA MUNICIPAL CODE TO ADOPT THE 2022 EDITION OF THE CALIFORNIA

BUILDING AND ENERGY CODE AND LOCAL A MENDMENTS THERETO AND

DETERMINE THE ORDINANCE TO BE EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT

WHEREAS California Health and Safety Code section 17958 requires that cities adopt building regulations that are substantially the same as those adopte d by the California Building Standards Commission and contained in the California Building Standards; and

WHEREAS the California Energy Code is a part of the California Building Standards which implements minimum energy efficiency standards in building t hrough mandatory requirements, prescriptive standards, and performance standards; and

WHEREAS California Health and Safety Code Sections 17958.5, 17958.7 and 18941.5 provide that the City may make changes or modifications to the building standards contained in the California Building Standards based upon express finding that such changes or modifications are reasonably necessary because of local climatic, geological or topographical conditions; and

WHEREAS the City Council of the City of Goleta finds that each of the amendment additions and deletions to the California Energy Code contained in this ordinance are reasonably necessary because of local climatic, geological or topographical conditions; and

WHEREAS Public Resources Code Section 25402.1(h)2 and Section 10 -106 of the Building Energy Efficiency Standards (Standards) establish a process which allows local adoption of energy standards that are more stringent than the statewide Standards, provided that su ch local standards are cost effective and the California Energy Commission finds that the standards will require building to be designed to consume no more energy than permitted by the California Energy Code; and

WHEREAS, on or about September 20, 2016, the State of California enacted Senate Bill (SB) 32, which added Health and Safety Code Section 38566 to require greenhouse gas emissions to be reduced to 40 percent below 1990 levels by no later than December 31, 2030; and

WHEREAS the State of California updates and sets Building Codes and Standards on a triennial cycle for single-family, multifamily and nonresidential structures with the intended purpose to improve building efficiency and reduce greenhouse gas emissions; and 12 38
WHEREAS the City’s local amendments to the 2022 California Building Codes, including the California Green Building Code, increase requirements for single -family (e.g., townhomes), multifamily, and nonresidential structures beyond that of the State’s requirement because , based on local climatic, geological or topographical conditions, they are necessary to reduce demands for local energy and resources, reduce regional pollution, and promote a lower contribution to greenhouse gases emissions; and

WHEREAS the content and details of this ordinance were the subject of a public stakeholder workshop conducted on January 14, 2025 , which included numerous stakeholders; and

WHEREAS the City’s local amendments will result in designs that consume less energy than they would under the 2022 State Energy Code through the California Statewide Codes and Standards Reach Code Program, has performed cost effectiveness analyses as required by the California Energy Commis sion for the local amendments to the California Energy Code contained in this ordinance which is hereby incorporated by reference; and

WHEREAS based upon these analyses, the City Council of the Goleta finds that the local amendments to the California Energy Code contained in this ordinance have at least one cost effective pathway and will require buildings to be designed to consume no more energy than permitted by the California Energy Code; and

WHEREAS adoption of Reach Codes support the Goleta City Council’s Strategic Pla n and climate action goals, which aim to reduce communitywide GHG emissions; and

WHEREAS scientific evidence has established that GHG accumulation in the atmosphere as the result of human activity is the primary cause of the global climate crisis; and

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WHEREAS, in California alone, the ini tial impacts of climate change have resulted in unprecedented disasters with consequential human, economic, and environmental costs; and

WHEREAS the climate change crisis is happening now, impacting Goleta in unprecedented ways, and affecting the health and safety of the Goleta community; and

WHEREAS the Intergovernmental Panel on Climate Change estimates that global emissions need to be reduced by 45% from 2010 levels by 2030, and 100% by 2050 to prevent global catastrophe; and

WHEREAS, in 2016, the State of California enacted Senate Bill (SB) 32 to require GHG emissions to be reduced to 40% below 1990 levels by 2030 and in 2018 Governor Brown issued Executive Order B -55-18 establishing a statewide target of carbon neutrality by 2045; and

WHEREAS the City must accelerate our actions to mitigate and adapt to climate change in Goleta, and more quickly move toward a low-carbon, sustainable, and resilient future; and

WHEREAS, in California alone, the initial impacts of climate change have result ed in unprecedented disasters with consequential human, economic, and environmental costs; and

WHEREAS Goleta is already experiencing and is at risk of more frequently experiencing the devastating effects of extreme heat and weather events and flooding c aused by climate change, including increased frequency and magnitude of wildfires and associated air pollution, health impacts, utility and transportation service interruptions, economic disruption, property loss, dislocation, housing shortages, and increased demand on public sector resources and emergency response capacity; and

WHEREAS Santa Barbara County is ranked in the 99.4 th national percentile and 84.5 th percentile in California for the natural hazard risk index; and

WHEREAS, because of the City’s unique local climat ic, geologic and topographic conditions, the City desires to make amendments and additions to the code.

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WHEREAS using electric heating and cooling infrastructure in new buildings fueled by less greenhouse gas intensive electricity is linked to significantly lower greenhouse gas emissions and is cost competitive because of the cost savings associated with all-electric designs that avoid new gas infrastructure; and

WHEREAS it is the intent of the City Council to reduce natural gas e missions in new buildings where all electric infrastructure can be most practicably integrated, thereby reducing the environmental and health hazards produced by the consumption and transportation of natural gas; and

NOW THEREFORE THE CITY COUNCIL OF THE CITY OF GOLETA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. RECITALS.

The City Council hereby finds and determines that the foregoing recitals, which are incorporated herein by reference, are true and correct.

SECTION 2. PUBLIC HEALTH AND SAFETY FINDINGS.

Pursuant to California Health and Safety Code Sections 17958.5, 17958.7, and 18941.5, the City of Goleta City Council declares that the following amendments to the Goleta Green Building Code are reasonably necessary due to local climactic, geolo gical, or topographical conditions listed below and as set forth in the Recitals incorporated herein.

Goleta is already experiencing and is at risk of more frequently experiencing the devastating effects of extreme heat and weather events and flooding cau sed by climate change, including increased frequency and magnitude of wildfires and associated air pollution, health impacts, utility and transportation service interruptions, economic disruption, property loss, dislocation, housing shortages, and increased demand on public sector resources and emergency response capacity.

The City of Goleta is situated along a wildland-urban interface and as a result is extremely vulnerable to wildfires and firestorms according to the Federal Emergency Management Authority (FEMA) Wildfire Risk Index Map. Santa Barbara County is ranked in the 99.4 th national percentile and 84.5th percentile in California for the natural hazard risk index.

According to the 100-year and 500-year flood maps provided by FEMA, the City of Goleta has a significant risk of flooding during extreme weather events and flood events can 15 41
majorly disrupt access to utilities, emergency services, and transportation. Extreme weather events are expected to increase as the climate warms due to the greenhouse gas effect.

The local amendments to the 2022 California Green Building Standards Code implemented by this ordinance will reduce GHG emissions within th e City with the intent to reduce the City’s contributions to climate change and in turn reduce the impacts of climate change.

SECTION 3. ENVIRONMENTAL FINDINGS. The City Council hereby finds and determines that this ordinance has been assessed in accordance with the California Environmental Quality Act (Cal. Pub. Res. Code, § 21000 et seq.) (“CEQA”) and the State CEQA Guidelines (14 Cal. Code Regs. § 15000 et seq.) and is categorically exempt from CEQA under CEQA Guidelines, § 15061(b)(3), which states that CEQA does not apply, "where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the enviro nment." These standards are more stringent than the State energy standards, and as such, there are no reasonably foreseeable adverse impacts, and there is no possibility that the Ordinance in question may have a significant effect on the environment. Adoption of the ordinance would not be an activity with potential to cause significant effect on the environment because the adoption and local amendments to the California Energy Code are enacted to provide more protection to the environment and therefore is e xempt from CEQA. Therefore, it can be seen with certainty that there is no possibility that the ordinance in question may have a significant effect on the environment; accordingly, the ordinance is categorically exempt from CEQA.

SECTION 4. CODE AMENDMENT.

Chapter 15.15 Energy Code of Title 15 of the Goleta Municipal Code is hereby amended to read in its entirety as follows:

15.15.010 Adoption of Energy Code

15.15.020 Local Amendments to Definitions

15.15.030 Local Amendments to Nonresidential, Hotel/Motel Occupancies and Covered Processes – Mandatory Requirements

15.15.040 Local Amendments to Nonresidential and Hotel/Motel Occupancies – Mandatory Requirements for Lighting Systems and Equipment and Electrical Power Distribution Systems
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15.15.050 Local Amendments to Nonresidential and Hotel/Motel Occupancies – Performance and Prescriptive Compliance Approaches for Achieving Energy Efficiency

15.15.060 Local Amendments to Single-Family Residential Buildings – Mandatory Features and Devices

15.15.070 Local Amendments to Single -Family Residential Buildings – Performance and Prescriptive Compliance Approaches

15.15.080 Local Amendments to Multifamily Buildings – Mandatory Requirements

15.15.090 Local Amendments to Multifamily Buildings – Performance and Prescriptive Compliance Approaches

15.15.010 Adoption of Energy Code

A. The California Energy Code, 2022 Edition including the appendices thereto, except as may be amended by this chapter, are hereby adopted as the Energy Code of the City.

B. One copy of the California Energy Code shall be at all times maintained in the office of the Building Official for use and examination by the public.

15.15.020 Local Amendments to Definitions

A. Chapter 1 "All Occupancies – General Provisions," Section 100.1(b), "Definitions and Rules of Construction," of Chapter 1 of the Energy Code is amended to add the following definitions:

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NET FREE AREA (NFA) is the total unobstructed area of the air gaps between louver and grille slats in a vent through which air can pass. The narrowest distance between two slats, perpendicular to the surface of both slats is the air gap height. The narrowest width of the gap is the air gap width. The NFA is the air gap height multiplied by the air gap width multiplied by the total number of air gaps between slats in the vent.