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Presentation - Reach Code Options, Timelines and Process

Council Sustainability Committee
April 16, 2024

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Presentation - Reach Code Options, Timelines and Process
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April 16, 2024
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Council Sustainability Committee
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Reach Code Options, Timelines and Next Steps
April 16, 2024
Lindsay Hagan, Assistant Community Development Director Danielle Lee, Chief Sustainability and Resiliency Officer 2 • Reach Codes are local building code amendments that exceed the State Building Code to achieve community
environmental and sustainability goals, including:
• Increase energy efficiency standards
• Expand electric vehicle charging infrastructure
• Water and waste reduction
• Encourage clean energy through solar or electric
equipment
• Reduce greenhouse gas emissions
What are Reach Codes?
Transportation
53%Energy
33%
Off-Road
10%
Waste
3%
Water
0%
2021 Final: 415,114 MT CO2e
3 • 2019 - City adopts Reach Codes that require all-electric new construction and major renovations
• 2022 – City expands Reach Codes to include more solar and electric vehicle (EV) requirements
Main Components of Our Reach Codes
• All-electric appliance/equipment requirement, with limited exceptions • Install solar to accommodate 100% of annual energy consumption of building • Greater EV installation and EV ready requirements
• Bird-safe glass required for nonresidential development City of Mountain View Reach Codes
4 Impact of Our All-Electric Reach Code

BUILDING PERMITS FINALED UNDER ALL-ELECTRIC CODE REQUIREMENTS

DEVELOPMENT TYPE
YEAR Single-Family and Duplexes Townhomes/Rowhomes
and Condominiums
Commercial and
Mixed-Use Buildings Total Per Year
2020 49 67 1 117
2021 98 148 4 250
2022 71 89 12 172
2023 72 29 8 109
2024
(Q1 only) 8 1 2 11
Grand Total 659
5 • November 2019: California Restaurant Association (CRA) sued City of Berkeley for all-electric code.
• July 2021: District Court rejected lawsuit. CRA appealed. • April 2023: Ninth Circuit reversed District Court rejection; determined local jurisdictions cannot directly or indirectly regulate gas appliances.
• May 2023: Berkeley filed a petition for a Ninth Circuit rehearing. • January 2024: Ninth Circuit denied rehearing.
• February 2024: Silicon Valley Clean Energy (SVCE) meets with City Attorneys from its member agencies to discuss court ruling and alternatives
• February/March 2024: SVCE meets with board members and City staff (3 meetings) • Late March 2024: Berkeley settles lawsuit, will rescind code, and is not seeking review by US Supreme Court
Events Leading to Suspension
6 • Ongoing: City participates in regional groups discussing alternative options:
• Silicon Valley Clean Energy (SVCE)
• International Code Council Peninsula Chapter (ICC)
• Santa Clara County Planning Collaborative (SCAPPO)
• Bay Area Regional Energy Network (BayRen)
• Ongoing: Approximately 80 people have approached City Building staff regarding gas appliances in single-family residential projects to:
• Modify their remodel permit to include a gas appliance (e.g. stoves, BBQs, and outdoor firepits)
• Delay the removal of their gas appliance during construction • Are unable to pass final inspection due to non-removal of gas appliance • Inquiries by licensed professionals preparing to submit for a permit • April 9, 2024 – City suspension of natural gas appliance prohibition in Reach Codes; all other components of Reach Codes remain in effect.

Events Leading to Suspension
7 Suspended Enforcement
Several jurisdictions have suspended
enforcement of their all-electric requirements
and do not have an alternative option adopted
yet, including:
• City of Milpitas
• City of Palo Alto
• City of Half Moon Bay
• City of Menlo Park
• City of Atherton
• City of San Mateo
• City of South San Francisco
• City of Belmont
• County of San Mateo
Actions by Other Jurisdictions
Continuing to Enforce:

Some jurisdictions continue to enforce all-
electric requirements, including:
• County of Santa Clara
• County and City of San Francisco
• City of San Jose
8 • Silicon Valley Clean Energy provides clean electricity to 96% of residents and businesses • Bay Area Air Quality Management District (BAAQMD) adopted indoor air quality standards that requires water heaters and space heating equipment to be zero nitrogen oxides (NOx) starting in 2027
• California Air Resource Board (CARB) will consider setting a zero emissions standard for water heaters and space heating equipment similar to BAAQMD for implementation in 2030 • Current 2022 State Building Code requires pre-wiring for new single-family homes to be all- electric in the future and prewiring for heating, clothes dryers, and stoves in multifamily residential buildings
• Upcoming 2025 State Building Code may include additional pre-wiring for multifamily residential; zero-emission standards (zero NOx) are unlikely to be considered in this cycle Regional and State Decarbonization Efforts
9 1. Expanded Pre-Wiring Requirement
• Require pre-wiring of electrical line and outlet to all natural gas appliances, allowing for easy transition to electric appliance/equipment in the future • Include multifamily residential and nonresidential requirements beyond State Code, which currently includes single-family and some multifamily residential • Amends the CalGreen Code

2. Air Quality Approach
• Regulate air quality emissions from equipment/appliances • Example is “Zero Nitrogen Oxide (NOx)” equipment requirement • Amends the CalGreen Code

3. Energy Performance Approach
• Regulate energy performance from equipment at a set percentage above the State Code; can allow gas appliances
• Often referred to as “Single Margin” or “One Margin”
• Amends the California Energy Code, requires Cost Effectiveness Study Exploring Alternatives to Encourage Electrification
10 Minimum State Code Requirements
• Single-Family Residential New
Construction:
• Heat pump water heater
• Solar
• Energy storage
• Stove
• Clothes dryer
• Multi-Family Residential New
Construction:
• Heat pump water heater
• Stove
• Clothes Dryer
Expanded Pre-Wiring Requirements
Phase 1 Updates
Use City’s existing threshold for new
construction (incl. major renovations)
to:
• Expand Single-Family and Multi-
Family Residential requirements
• Add Nonresidential New
Construction
Phase 2 Updates
Evaluate beyond City’s current
threshold:
• Smaller Remodels/Renovations
(Residential and Nonresidential)
• Any residential new gas appliance
at time of upgrade (if you touch
it, you prewire it)
11 • Adopted in February 2024
• Applies to new construction and major renovations of single-family residential • Applies to water heater, heating/cooling (furnace), and clothes dryer • Does not apply to: indoor and outdoor cooking equipment, outdoor fireplaces, generators, and pool/spa heaters
• If indoor cooking appliance is NOx emitting, must be pre-wired, be “240V ready”, and have a circuit breaker labeled in the panel for easy transition to electric • Amendment to CalGreen, no Cost Effectiveness Study Required Air Quality (Zero NOx) – Town of Los Altos Hills

CONSIDERATIONS
• No gas equipment available on the market that meets Zero NOx • No example of multifamily residential or nonresidential development in effect • New York State’s adopted Zero NOx program is a phased requirement over 3-4 years 12 • Suspended all-electric requirements in June 2023
• Adopted Energy Performance approach in November 2023; awaiting California Energy Commission (CEC) approval (4+ months) – not in effect
• Applies to single-family, multifamily, and nonresidential new construction • Does not include existing buildings
• If gas or propane appliance installed, must be pre-wired, have a circuit breaker labeled in the panel for easy transition to electric, and adequate space for appliance • Amendment to Energy Code, required Cost Effectiveness Study and approval by CEC Energy Performance Program – City of Santa Cruz

CONSIDERATIONS
• Will cost the applicant a little more; may extend City permit review time; more complicated regulation to explain • Encourages electric as the simpler alternative to preparing an “energy budget”; allows for gas appliances • Will take staff longer to develop thresholds, particularly for nonresidential and existing buildings Estimated Timelines
13 Energy Performance ApproachAir Quality ApproachExpanded Pre-Wiring Requirements Initial Analysis 1 to 2 months
CSC/Council Direction May/June 2024
Draft, Review & Outreach 6 to 7 months
(with current workload)
Council Adoption 2 months
State CEC Approval Req. 2 to 4+ months
Anticipate Q2 2025
Initial Analysis 1 to 2 months
CSC/Council Direction May/June 2024
Draft, Review & Outreach 3 to 4 months
(with current workload)
Council Adoption 2 months
State Acceptance 1 to 2 months
Anticipate Q1 2025
Phase 1
Pre-Wiring Using Existing City Thresholds
(No Community Outreach)
Draft & Review 2 to 3 months
(with current workload)
Council Adoption 2 months
Anticipate Sept. 2024
Phase 2
Pre-Wiring Beyond Existing City Thresholds
(With Community Outreach)
Additional Analysis 1 to 2 months
CSC/Council Direction May/June 2024
Draft, Review & Outreach 3 to 4 months
(with current workload)
Council Adoption 2 months
State Acceptance 1 to 2 months
Anticipate Q1 2025
14 Ongoing Efforts by City Staff

15 • Continue to work with SVCE in exploring alternative electric requirements • Increase public education/communication on benefits of electrification and encourage use of electric appliances/equipment
• Add topic to the City’s federal and state legislative platform • Return to Council Sustainability Committee for a recommendation on a path forward in May 2024
• Seek Council direction on a path forward in June 2024 Next Steps
Thank you

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