Palo Alto City Council
February 26, 2024

February 26, 2024 www.cityofpaloalto.org
Item 14 – Resolution
Suspending Reach
Code Enforcement
City Council
1 Background
• Since 2019 more than 70 US cities/states have adopted incentives or requirements for all-electric construction • The City adopted its Reach Code Nov 2022, effective Jan 2023 • Requires all-electric design for new buildings with no exceptions • Applies to some types of remodels
• City's existing code exceeds the State's Code, which:
• Requires significant energy efficiency, making it far easier to comply with heat pump space and water heating
• Mixed-fuel homes would require large solar and storage systems • Requires electrification readiness for mixed-fuel homes 1 Legal Challenges to Building Electrification Laws
• California Restaurant Association v. City of Berkeley • Challenge to Berkeley’s ban on gaspiping in new construction • Final 9th Circuit decision (1/2/2024) invalidated Berkeley’s ban • Berkeley has 90 days to seek review in the U.S. Supreme Court • Implications for Reach Codes in 9th Circuit Jurisdiction • 9th Circuit held that Federal Energy Policy and Conservation Act (EPCA) preempts state and local regulations for covered products • All-electric codes are very likely preempted
• Project applicants in Palo Alto are requesting clarification of the City’s regulations
1 Other Cities Actions
• At least seven cities have suspended enforcement of their all-electric Reach Codes
• Staff is not aware of any jurisdiction continuing enforcement • Some cities have adopted alternatives
• Zero NOx Code (Town of Los Altos Hills)
• Uses State code section authorizing local agencies to establish air pollution standards stricter than State/Federal standards • One Margin Code (San Luis Obispo, Santa Cruz, San Jose) • Applies a single efficiency standard to all-electric and mixed- fuel buildings
• Takes source energy into account (easier to meet with all- electric design)
1 Staff Recommendation
• Staff recommends suspending enforcement of Palo Alto’s all-electric Reach Code
• Once enforcement is suspended, new construction would be subject to the State’s Code
• Staff also recommends Council direct staff to pursue the One Margin Code approach for fall adoption
• Staff evaluating resources required
• This code would apply through the end of 2025, when the 2026 – 2028 code cycle begins
• Staff can evaluate alternatives to the One Margin code when developing recommendations for the 2026-2028 code cycle