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Staff Report - An Ordinance Deleting Chapter 15.30 and Amending Chapter 15.38 of the Sacramento City Code to Adopt Local Amendments to the California Building Standards Code, Relating to New Building Electrification; a Resolution Establishing Infeasibility Waiver Fees; and a Resolution Establishing Infeasibility Waiver Guidelines

Sacramento City Council
November 29, 2022

Document
Staff Report - An Ordinance Deleting Chapter 15.30 and Amending Chapter 15.38 of the Sacramento City Code to Adopt Local Amendments to the California Building Standards Code, Relating to New Building Electrification; a Resolution Establishing Infeasibility Waiver Fees; and a Resolution Establishing Infeasibility Waiver Guidelines
Meeting
November 29, 2022
Body
Sacramento City Council
Pages
6
Original file
2.0 MB
Text extracted from the city's file for reading and search. Open the original on sacramento.granicus.com. That file is the official record.

City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01920 11/29/2022 Public Hearing Item 25.

An Ordinance Deleting Chapter 15.30 and Amending Chapter 15.38 of the Sacramento City Code to Adopt Local Amendments to the California Building Standards Code, Relating to New Building Electrification; a Resolution Establishing Infeasibility Waiver Fees; and a Resolution Establishing Infeasibility Waiver Guidelines. (Passed for Publication 11/15/2022; Published 11/18/2022; Noticed 11/18/2022 & 11/23/2022)
File ID: 2021-01920
Location: Citywide
Recommendation: Conduct a public hearing and upon conclusion: 1) approve Environmental Exemption (per CEQA Guidelines Section 15061(b)(3) - no potential for causing signification effect on the environment; Section 15307 - action by regulatory agency to assure the maintenance, restoration, or enhancement of a natural resource; Section 15308 - action by regulatory agency to assure the maintenance, restoration, enhancement or protection of the environment; and Section 15378(b)(4) - creation of a government funding mechanism that does not involve commitment to any project that may result in a potentially significant physical impact on the environment); 2) adopt an Ordinance deleting Chapter 15.30 and amending Chapter 15.38 of the Sacramento City Code to adopt local amendments to the California Building Standards Code, relating to New Building Electrification; 3) adopt a Resolution establishing infeasibility waiver guidelines; and 4) adopt a Resolution amending the master fee and charges schedule to authorize the establishment of new fees to implement the review of applications for waivers, and cover the cost of appeals of infeasibility waiver decisions related to new building electrification.

Contact: Helen Selph, Associate Planner, (916) 808-7852, [email protected], Matt Hertel, AICP, Principal Planner, (916) 808-7158, [email protected]; Community Development Department
Presenter: Matt Hertel, AICP, Principal Planner, (916) 808-7158, [email protected]; Community Development Department
Attachments:
1-Description/Analysis
2-Ordinance - Redline
3-Ordinance - Clean
4-Resolution Establishing Infeasibility Waiver Fees
5-Resolution Adopting Infeasibility Waiver Guidance Document 6-Exhibit A: Infeasibility Waiver Guidance Document

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File ID: 2022-01920 11/29/2022 Public Hearing Item 25.

Description/Analysis
Issue Detail: On June 1, 2021, City Council adopted the New Building Electrification Ordinance, adding to and amending various provisions of Title 15 (Buildings and Construction) of the Sacramento City Code and making local amendments to the California Building Standards Code.

This established phased requirements for the electrification of new building construction. The first phase of the New Building Electrification Ordinance (for newly constructed buildings that are three stories or less) will take effect on January 1, 2023, and second phase (for newly constructed buildings that are four stories or more) will take effect on January 1, 2026.

The California Building Standards Code is on a three-year cycle. Local amendments are only enforceable for the current California Building Standards Code. When the City Council adopted the New Building Electrification Ordinance on June 1, 2021, the 2019 California Building Standards Code was in effect. The 2022 California Building Standards Code was published on July 1, 2022 and goes into effect on January 1, 2023. In order for the New Electrification Ordinance to be enforceable for the 2022 California Building Standards Code, the New Building Electrification Ordinance needs to be adopted as a local amendment to the 2022 California Building Standards Code. To be effective on January 1, 2023, the Ordinance must be adopted at least 30 days prior.

City Council is being requested to pass a resolution to adopting the Infeasibility Waiver Guidance Document (Attachment 6, Exhibit A) and adopt a resolution to establish and approve new fees to support the implementation of the Ordinance, including an infeasibility waiver application fee and a fee to process appeals of the Building Official’s infeasibility waiver determination to recover staff/consultant costs (Attachment 4). Background on the development of the Infeasibility Waiver Guidance Document is included below.

The updated Ordinance (Attachments 2 and 3) differs from the Ordinance that was adopted on June 1, 2021, as follows:
· Migrates local amendments concerning new building electrification from City Code Chapter

15.30 as local amendments to the California Energy Code to City Code Chapter 15.38 as local amendments to the California Green Building Standards Code that are necessary because of local climatic, topographic, or geologic conditions. · Deletes current City Code sections 15.38.030 and 15.38.040 concerning local amendments to the California Green Building Standards Code relating to electric vehicles. The provisions in the 2022 California Green Building Standards Code relating to electric vehicles are more stringent than the local amendments contained in the current City Code sections 15.38.030 and 15.38.040.

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File ID: 2022-01920 11/29/2022 Public Hearing Item 25.
· Clarifies the definition in the Ordinance from “natural gas” or “propane” to “fuel gas”, which is the term used in the Building Standards Code for natural gas and propane. · Clarifies the definition of “all-electric building” to mean a building that does not have fuel gas piping and the uses electricity as the sole energy source except for emergency power systems when required to serve essential facilities or otherwise required by law. · Clarifies the definition of “mixed-fuel building” as meaning a building that includes fuel gas piping and that may use fuel gas and electricity as a source of energy. · Adds procedures for applicants who wish to file an appeal of the Building Official’s decision within ten (10) business days after the written decision is sent to the building permit applicant. · Clarifies the definition of “Virtual Net Energy Metering” to state that the solar production is fed back to the grid, then allocated to each tenant and common area’s monthly bill. This recommended revision was not included in the Ordinance passed by the Law and Legislation Committee on September 20th and is in response to recent conversations with SMUD to better align the definition with how their Virtual Solar Program operates. Staff recommends that the City Council adopt the below definition of virtual net energy metering as modified as part of the Ordinance adoption.
“VIRTUAL NET ENERGY METERING means a billing arrangement that allows multi ‐
tenant building owners to install a single solar system to cover the electricity load of both common and tenant areas connected at the same service delivery point. The electricity does not flow directly to any tenant meter, but feeds some common area loads and the remainder goes onto the grid. The electricity solar production that is feed back to the grid, is then proportioned allocated to each tenant and common area’sthe tenant’smonthly bill.”
Policy Considerations: Policy Considerations: The 2035 General Plan includes the following key policies related to GHG emissions reduction.

ER 6.1.5 Community Greenhouse Gas Reductions. The City shall reduce community GHG emissions by 15 percent below 2005 baseline levels by 2020 and strive to reduce community emissions by 49% percent and 83% percent by 2035 and 2050, respectively. (RDR)
ER 6.1.7 Greenhouse Gas Reduction in New Development. The City shall reduce greenhouse gas emissions from new development by discouraging auto-dependent sprawl and dependence on the private automobile; promoting water conservation and recycling; promoting development that is compact, mixed use, pedestrian friendly, and transit oriented; promoting energy-efficient building design and site planning; improving the

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File ID: 2022-01920 11/29/2022 Public Hearing Item 25.
jobs/housing ratio in each community; and other methods of reducing emissions. (RDR) City Council committed to carbon neutrality by 2045 with adoption of the 2040 General Plan Vision and Guiding Principles (Resolution No. 2019-0433). The Council also declared a Climate Emergency on December 10, 2019 (Resolution No. 2019-0465), calling for the City to undertake significant action to accelerate the rapid decrease of GHG emissions.

The Preliminary Draft Climate Action Plan, released on July 1, 2022, for a 30-day public review period, includes Measure E-2.1: Develop and adopt and electrification ordinance that requires all new construction under four stories to be all-electric by 2023 and all construction to be all-electric by 2026.

Economic Impacts: The economic impacts of passing an electrification ordinance are anticipated to be reduced construction costs for residential development and increased demand for climate-friendly appliances. Cost-effectiveness studies for the 2019 Building Standards Code indicate that all-electric construction is cost-effective for all low-rise and mid-rise construction prototypes studied. Cost- effectiveness of high-rise residential construction up to eight stories is cost effective, but above eight stories cost effectiveness varies depending on project design. All residential new construction building types are cost-effective when SMUD incentives are considered. Cost effectiveness studies for 2022 Building Standards Code also indicate that all-electric is cost effective for low-rise residential. Cost effectiveness studies for commercial prototypes are anticipated to be available in early December and by the end of December 2022 for mid-rise residential prototypes. Additionally, the Infeasibility Waiver Guidance Document (Attachment 6-Exhibit A) provides for a project applicant to demonstrate infeasibility due to not being cost effective as identified in the California Energy Codes and Standards.

Environmental Considerations:

California Environmental Quality Act (CEQA): The activity (the ordinance, resolution establishing infeasibility waiver fees, and resolution approving guidelines to consider infeasibility guidelines) has no potential for causing a significant effect on the environment and is exempt pursuant to CEQA Guidelines section 15061(b)(3). The activity is exempt pursuant to CEQA Guidelines 15307 and 15308 because it is an action taken to assure the maintenance, restoration, or enhancement of natural resources or protection of the environment where the regulatory process involves procedures for protection of the environment. In addition, the activity, the resolution establishing infeasibility waiver fees, is further exempt pursuant to CEQA Guideline 15378(b)(4) in that it is the creation of a government funding mechanism that does not involve commitment to any project that may result in a potentially significant physical impact on the environment.

Sustainability: SB100 requires California utilities to provide carbon neutral electricity by 2045.

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File ID: 2022-01920 11/29/2022 Public Hearing Item 25.

The Sacramento Municipal Utility District currently provides electricity that is approximately 70% carbon free. SMUD is committed to achieving carbon-neutral electricity by 2030 through implementation of their 2030 Zero Carbon Plan. The substitution of clean, carbon-neutral electricity for natural gas will significantly reduce indoor and outdoor air pollution and GHG emissions.

It is anticipated that the New Building Electrification Ordinance will have a net positive environmental impact because it will reduce GHG emissions and other pollution associated with fossil fuel combustion from gas heating systems, stoves, water heaters, and other appliances. The electrification ordinance will also help improve air quality and further decarbonize Sacramento’s economy. Electrifying buildings is a key strategy to achieve carbon neutrality and advances the recommendations from the City of Sacramento’s Preliminary Draft Climate Action Plan and the Mayors’ Commission on Climate Change (MCCC) Final Report.

Commission/Committee Action: The New Building Electrification Ordinance was originally adopted by City Council on June 1, 2021.

On September 6, 2022, the Budget and Audit Committee passed a Motion forwarding an amendment to the Master Fees and Charges Schedule to establish Building Electrification Infeasibility Waiver Fees, including an appeal fee to City Council for consideration. The Committee requested for staff to work with the restaurant representatives of the Technical Panel when formulating the consultant team to review Infeasibility Waiver Applications. The Background section of this staff report describes the coordination with the restaurant representatives and next steps.

On September 20, 2022, the Law and Legislation Committee passed a Motion forwarding the New Building Electrification Ordinance, updated to align with the 2022 Building Standards Code, to City Council for consideration. The Committee requested staff to continue to work with Local 447 on a just transition for plumbers and pipefitters. In response, on December 6, 2022, staff will ask City Council to consider adopting an Alternate Water Systems (Dual Plumbing) Ordinance.

Rationale for Recommendation: Council has declared a climate emergency and the City’s intent to take bold and immediate action to address climate change. Consistent with the MCCC Final Report and Council direction, staff is recommending adoption of the New Building Electrification Ordinance to align with the 2022 California Building Standards Code.

Financial Considerations: The New Building Electrification Ordinance is not anticipated to have a significant cost impact for the City.

Local Business Enterprise (LBE): Not applicable.

Background: On June 1, 2021, along with the adoption of the New Building Electrification

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File ID: 2022-01920 11/29/2022 Public Hearing Item 25.

Ordinance, Council directed staff to establish a 14-member technical panel to provide input into the development of a guidance document that lays out the process and criteria for the review of infeasibility waiver applications. The technical panel met 6 times since February with the final meeting held on August 22, 2022. The technical panel consisted of manufacturing representatives, business representatives, restaurant representatives, equity and environmental justice representatives, an affordable housing developer, a market-rate developer, a homebuilder representative, and a labor representative. Attachment 6-Exhibit A: Infeasibility Waiver Guidance Document was developed with extensive input from the technical panel.

The review of applications for infeasibility waivers will require a range of specialized technical experts. As noted in Attachment 6-Exhibit A: Infeasibility Waiver Guidance Document, a member of the consultant team will review infeasibility waiver applications using specific criteria identified in the Ordinance and informed by the technical panel. The consultant team member will then make a recommendation to the City’s Building Division and the Building Official will determine whether to approve or deny the infeasibility waiver application.

The City’s Community Development Department (CDD) will amend the existing agreement with Frontier Energy, Inc. to process the infeasibility waiver applications and make recommendations to the Building Official. Frontier Energy, Inc. will bring in specialized subconsultants, as necessary. Staff chose to renew the existing agreement with Frontier Energy due to time constraints, the limited number of consultants who are qualified, and sufficient funds remaining in the existing contract, rather than issuing a new Request for Proposals (RFP). CDD will re-evaluate the need to issue a new RFP for the 2024 implementation year.

The restaurant representatives from the Technical Panel have requested that the consultant team include a sub-consultant that is a trained chef; has at least 10 years of experience working in a kitchen; and understands cooking techniques of ethnic communities. Because cooking equipment in ground-floor food service establishments is exempted from the New Building Electrification Ordinance until January 1, 2026, restaurants will not need to apply for an infeasibility waiver application for the next three years. As stated in the Infeasibility Waiver Guidance Document (Attachment 6), “Prior to December 2025, the City will update the New Building Infeasibility Waiver Guidance Document to reflect changes in the California Building Code and the Sacramento City Code, and to reflect changes to the limited exemptions. As needed, the City will engage with individuals and groups that have expertise in building development, a variety of business types, electric equipment and appliances, and ethnic and cultural traditions to ensure that changes reflect the state of technology and Sacramento’s diversity, economics, and progress toward reducing the impacts of climate change.” Prior to the expiration of the limited exemption for restaurants in new buildings, staff will work with restaurant representatives in the selection of consultants to review infeasibility waiver applications.

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1 ORDINANCE NO.

Adopted by the Sacramento City Co
uncil
Date Adopted
AN ORDINANCE DELETING CHAPTER 15.30 AND AMENDING CHAPTER 15.38 OF THE SACRAMENTO CITY CODE TO ADOPT LOCAL AMENDMENTS TO THE CALIFORNIA BUILDING STANDARDS CODE RELATING TO NEW BUILDING ELECTRIFICATION BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMEN TO:

SECTION 1.

In connecti
on with the local amendments to the 2022 California Green Building Standards Code and pursuant to California Health and Safety Code sections 17958, 17958.5, 17958.7, and 18941.5, the City Council finds and determines that:

A. The amendments are reasonably necessary because of local climatic, geological, or topographical conditions.

B. Under this adopting ordinance, specific amendments are est ablished that are more restrictive than those adopted by the State of California under the State Buildings Standards Code, Title 24 of the California Code of Regulations.

C. Express Finding Number 1:  Climatic
The burning of fossil fuels used to heat structures, to heat water, to cook, to ope rate vehicles, and for other uses significantly contributes to greenhouse gas emissions and consequently, climate change.  “Combustion of natural gas and petroleum products for heating and cooking needs emits carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O).  Emissions from natural gas consumption represent 79% of direct fossil fuel CO2 emissions from the residential and commercial sections in 2020.”1  The burning of fossil fuels releases “the greenhouse gases carbon dioxide (CO2) and nitrous oxide (N2O) into the atmosphere, which intensifies the greenhouse effect (the re‐radiation of heat in the atmosphere), increasing the Earth’s average air temperatures.”2“Long‐lived gases such as carbon dioxide can persist in the atmosphere for more than 100 years, even with efforts to reduce emissions today.”3  “Scientists attribute the global warming trend observed since the mid‐20th century to the human expansion of the 1 United States Environmental Protection Agency, Source of Greenhouse Gas Emissions, as of July 5, 2022, https://www.epa.gov/ghgemissions/sources‐greenhouse‐gas‐emissions#commercial‐and‐residential. 2 Understanding Global Change. A project of the University of California Museum of Paleontology. https://ugc.berkeley.edu/background‐content/burning‐of‐fossil‐fuels/ 3 Houlton, Benjamin, Jay Lund, (University of California, Davis), 2018.  Sacramento Summary Report.  California’s Fourth Climate Change Assessment. Publication number:  SUM‐CCCA4‐2018‐002, page 11.

2 ‘greenhouse effect’ warming that results when the atmosphere traps heat radiating from Earth toward space.”4  Nitrous oxide, carbon dioxide, and methane are gases that contribute to the greenhouse effect.5

“Global climate change imposes substantial local impacts and risks on the Sacramento Valley, including rising temperatures, changing precipitation patterns and amounts, sea level rise, flooding, drought, and wildfire.”6  A general summary of climate risks facing the Sacramento Valley Region, including the City of Sacramento, are as follows:

• Warming air and water temperatures
• More extreme heatwaves
• Drier landscapes
• Less snow
• Variable precipitation and seasonal shifts
• More intense droughts and floods with less predictability • Higher Delta water levels compounded by subsidence
• Increased risk of wildfire
• Loss of ecosystem habitat7

“The Sacramento Region is expected to experience hotter and drier conditions and reduced snowpack that could cause reduced reservoir supplies and Sacramento and American River flows.”8  “Increased flood frequency and elevated flood risk are expected in California as a result of sea level rise, more intense storm events, and shifts in the seasonal timing of rainfall and snow pack runoff.”9  “Higher temperatures and the increased frequency of heat waves associated with climate change are expected to significantly increase heat‐related illness, such as heat exhaustion and heat stroke.”10

Requiring all‐electric construction without gas infrastructure will reduce the amount of greenhouse gas produced in Sacramento and will contribute to reducing the impact of climate change and the associated risks.

Based upon this express finding, the following building standards in the 2022 California Building Standards Code are amended or
added:

4 NASA, Causes of Climate Change, as of July 5, 2022, https://climate.nasa.gov/causes/. 5 NASA, Causes of Climate Change, as of July 5, 2022, https://climate.nasa.gov/causes/. 6 Houlton, Benjamin, Jay Lund, (University of California, Davis), 2018.  Sacramento Summary Report.  California’s Fourth Climate Change Assessment. Publication number:  SUM‐CCCA4‐2018‐002, page 17. 7 Houlton, Benjamin Jay Lund, (University of California, Davis) 2018.  Sacramento Summary Report.  California’s Fourth Climate Change Assessment. Publication number:  SUM‐CCCA4‐2018‐002, page 6. 8 City of Sacramento, Sacramento Climate Action Plan, Expected effects on the Sacramento Region, section 3.3, page 3‐11, January 13, 2012.
9 City of Sacramento, Sacramento Climate Action Plan, Expected effects on the Sacramento Region, section 3‐3, page 3‐13, January 13, 2012.
10 City of Sacramento, Sacramento Climate Action Plan, section 3.3, page 3‐13, January 13, 2012.

3 ● 2022 California Green Building Standards Code sections 101.12, subsections 101.12.1 through 101.12.7, and section 202 (prohibiting gas infrastructure, thereby decreasing the impact of greenhouses gases).

D.  Express Finding Number 2:  Geological

Sacramento is subject to ground tremors from seismic events as the City is located in Seismic Design Category D, which equates to a high risk of earthquakes.  The high‐risk seismic zone is defined based on the proximity to known fault lines, soil type, and known mapped spectral accelerations.  Large portions of Sacramento have very poor soil conditions, including liquefiable soil.  The soil is often expansive in nature and very acidic which leads to premature deterioration of plumbing piping installed in the ground. Although non‐metallic gas pipe is not susceptible to deterioration, there are buildings built with metallic gas pipe infrastructure.

The agricultural history for many parts of Sacramento has resulted in many areas having caustic or “hot” soil conditions due to the heavy use of fertilizers, pesticides, insecticides, etc.

Unprotected metal pipe, when buried in these areas, is subject to corrosion and premature failure.

The elimination of natural gas (fuel gas) infrastructure in buildings would reduce the hazards associated with gas leaks during seismic events.

Based on this express finding, the following building standards in the 2022 California Building Standards Code are amended:

● 2022 California Green Building Standards Code section 101.12, including subsections 101.12.1 through 101.12.7, and section 202 (prohibiting gas infrastructure, thereby decreasing the impact of greenhouses gases).

E.  Health and Safety

Some
subpopulations of Sacramento residents suffer high rates of respiratory illnesses like asthma and cardiovascular disease due to both outdoor and indoor air pollution. The American Lung Association lists Sacramento as one of the most polluted cities in the nation, ranking ninth by ozone pollution, eleventh by year‐round particle pollution, and seventh by short‐term particle pollution.11 Indoor air pollutants that arise from onsite natural gas (fuel gas) combustion further exacerbate health outcomes for Sacramento residents, particularly for people of color, immigrants, indigenous communities, low‐income people, those with disabilities, and the unhoused. Studies have shown that children living in homes with gas cooking are 42% more likely to have asthma, with low‐income households suffering higher

11 American Lung Association, Most Polluted Cities 2022, https://www.lung.org/research/sota/city-rankings/most- polluted-cities.

4 levels of poor indoor air quality and consequent health impacts.12 The elimination of natural gas (fuel gas) appliances and infrastructure will significantly reduce and prevent the public health and safety risks associated with natural gas (fuel gas) combustion and promote the wellbeing of Sacramento’s most vulnerable populations.

SECTION 2.

Chapter 15.30 of the Sacramento City Code is hereby deleted.

SECTION 3.

Chapter 15.38 of the Sacramento City Code is amended to read as follows:

Chapter 15.38 AMENDMENTS TO THE CALIFORNIA GREEN BUILDING STANDARDS CODE

15.38.010 Amendments to the CGC.

The CGC is amended as set forth in this chapter.

15.38.020 Title linesCatchlines of sections.

For the purposes of this chapter, and notwithstanding the provisions of Ssection

1.04.060, the title lines catchlines (or  “catchwords”titles) of sections in this chapter are part of such Ssections.

15.38.030 Local amendments to the CGC.

A.    Tier 2 of Subsection A4.106.8.2 is added to read as follows:

A4.106.8.2 New Multifamily Dwellings

Tier 2. For new multifamily dwellings, twenty (20) percent of the total number of parking spaces on a building site, provided for all types of parking facilities, but in no case less than one, shall be electric vehicle charging spaces (EV spaces) capable of supporting future EVSE. Calculations for the required number of EV spaces shall be rounded up to the nearest whole number. An electric vehicle charging station shall be installed in at least one electric vehicle charging space.

B.     A4.106.8.2.1 is added to read as follows:

A4.106.8.2.1 Technical Requirements

12 California Public Interest Research Group, Gas Stoves: A Hidden Health Risk In Plane Sight, https://calpirg.org/reports/cap/gas‐stoves‐hidden‐health‐risk‐plain‐ sight#:~:text=A%20meta%2Danalysis%20of%2041,a%20doctor%20over%20their%20lifetime.

5 The EV spaces required by Section A4.106.8.2 shall be designed and constructed in accordance with Sections 4.106.4.2.1, 4.106.4.2.2, 4.106.4.2.3, 4.106.4.2.4, and

4.106.4.2.5.

C.     Tier 2 of Subsection A4.106.8.3 is added to read as follows:

A4.106.8.3 New Hotels and Motels

Tier 2. For new hotels and motels, twenty (20) percent of the total number of parking spaces on a building site, provided for all types of parking facilities, but in no case less than one, shall be electric vehicle charging spaces (EV spaces) capable of supporting future EVSE. Calculations for the required number of EV spaces shall be rounded up to the nearest whole number. An electric vehicle charging station shall be installed in at least one electric vehicle charging space.

D.    A4.106.8.3.1 is added to read as follows:

A4.106.8.3.1 Technical Requirements

The EV spaces required by Section A4.106.8.3 shall be designed and constructed in accordance with Sections 4.106.4.3, 4.106.4.3.2, 4.106.4.3.3, 4.106.4.3.4, 4.106.4.3.5, and 4.106.4.3.6.

E.     Tier 2 Subsection 5.106.5.3.2 is amended to read as follows:

A5.106.5.3.2 New Nonresidential

Tier 2. For new nonresidential, twenty (20) percent of the total number of parking spaces on a building site, provided for all types of parking facilities, but in no case less than one, shall be electric vehicle charging spaces (EV spaces) capable of supporting future EVSE. Calculations for the required number of EV spaces shall be rounded up to the nearest whole number. An electric vehicle charging station shall be installed in at least one electric vehicle charging space.

F.     A5.106.5.3.5 is added to read as follows:

A5.106.5.3.5 Technical Requirements

Raceways for electric vehicle charging spaces are required to be installed at the time of construction and shall be installed in accordance with the California Electrical Code Construction plans and specifications shall include, but are not limited to, the following:

6 1.       The type and location of the EVSE.

2.       The raceway(s) shall originate at a service panel or a subpanel(s) serving the area, and shall terminate in close proximity to the proposed location of the charging equipment and into listed suitable cabinet(s), box(es), enclosure(s) or equivalent.

3.       Plan design shall be based upon 40‐ampere minimum branch circuits.

4.       Electrical calculations shall substantiate the design of the electrical system, to include the rating of equipment and any on‐site distribution transformers and have sufficient capacity to simultaneously charge all required EVs at its full rated amperage.

5.       The service panel or subpanel(s) shall have sufficient capacity to accommodate the required number of dedicated branch circuit(s) for the future installation of the EVSE.

A. Section 101.12 is added to read as follows:

101.12 New Building Electrification

101.12.1

For building permit applications filed on or after January 1, 2023, except as provided in subsections 101.12.6 and 101.12.7, all newly constructed buildings that are three stories or less shall be all‐electric buildings.

101.12.2

For building permit applications filed on or after January 1, 2026, except as provided in subsection 101.12.7, all newly constructed buildings shall be all‐electric buildings.

101.12.3

For the purposes of all‐electric building requirements, the term “newly constructed building” as defined in Section 202 does not include additions, improvements, or tenant improvements, to “existing buildings” as defined in the CBC.

101.12.4

Except as provided in subsections 101.12.6 and 101.12.7, building permits shall not be issued to convert all‐electric buildings that are three stories or less into mixed‐fuel buildings when the initial building permit application is filed on or after January 1, 2023.

101.12.5

7 Except as provided in subsection 101.12.7, building permits shall not be issued to convert all‐electric buildings into mixed‐fuel buildings when the initial building permit application is filed on or after January 1, 2026.

101.12.6

Limited exemptions.  For building permit applications filed on or before December 31, 2025, an applicant may request one of the following limited exemptions to construct a mixed fuel building:

a. Ground floor food service establishment for the area of the building with cooking equipment.  The building official shall grant the exemption only for fuel gas piping, fixtures, or infrastructure necessary for cooking equipment within the designated food service area.

b.  Manufacturing or industrial facilities for the area of the building with process loads.

The building official shall grant this exemption only for the area of the building with process loads.

c.  Water‐heating systems and equipment in regulated affordable housing for those portions of the building where virtual net energy metering is unavailable.

If the technology to require construction of an all‐electric building for ground‐floor food‐ service establishments, manufacturing facilities, industrial facilities, or regulated affordable housing is not feasible and available by July 1, 2025, the City Council shall consider extending the building permit application filing deadline for the limited exemption until technology is feasible and available.

101.12.7

Infeasibility.

The building official may waive the requirements of subsections 101.12.1 or 101.12.2 only for those portions of the building if a building permit applicant establishes, to the satisfaction of the building official that it is infeasible to comply with the requirements because of the type of building, physical site conditions, commercial availability of electric appliances or equipment, necessary operational requirements, electrical infrastructure requirements, or the public health, safety, or economic welfare in the event of an electric grid outage.

B.  The following definitions are added to section 202 to read as follows:

ALL‐ELECTRIC BUILDING means a building that does not have fuel gas piping installed on the lot or within the building; and that uses electricity as the sole source of energy,

8 except for emergency power systems that are required to serve essential facilities or are otherwise required by law or regulation.

COOKING EQUIPMENT means equipment, including ovens, ranges, brewing kettles, and cooking appliances, that are intended for commercial use in a restaurant, brewery, or other business establishment where food or beverages are prepared and served for consumption on‐site or off‐site, other than a cottage food operation as defined in California Health and Safety Code section 113758.

EMERGENCY POWER SYSTEM has the same meaning as in California Building Code section 202.

ESSENTIAL FACILITIES has the same meaning as in California Building Code section 202.

FOOD‐SERVICE ESTABLISHMENT means a building with cooking equipment where food or beverages are prepared and served for consumption on‐site or off‐site.

FUEL GAS has the same meaning as in California Mechanical Code section 208 and California Plumbing Code section 208.

MANUFACTURING OR INDUSTRIAL FACILITY means a building with the occupancy classifications defined in the California Building Code, Chapter 3, Section 306, Group F or Section 313, Group L.

MIXED‐FUEL BUILDING means a building that includes fuel gas piping and that is capable of using both fuel gas and electricity as sources of energy.

PROCESS LOAD means an energy load resulting from a process.

REGULATED AFFORDABLE HOUSING means a building to be occupied by low or moderate income households as defined in California Health and Safety Code section 50093; offered at an affordable rent as defined in California Health and Safety Code section 50053 for a period of at least 30 years; and subject to restriction for a period of at least 30 years under a recorded regulatory agreement between the property owner and a local, state, or federal agency.

VIRTUAL NET ENERGY METERING means a billing arrangement that allows multi‐tenant building owners to install a single solar system to cover the electricity load of both common and tenant areas connected at the same service delivery point. The electricity does not flow directly to any tenant meter, but feeds some common area loads and the remainder goes onto the grid. The electricity that is feed back to the grid is then proportioned to the tenant’s bill.

15.38.040 Effective date of local amendments to the CGC.

9 Sections A4.106.8.2 Tier 2, A4.106.8.2.1, A4.106.8.3 Tier 2, A4.106.8.3.1, A5.106.5.3.2 Tier 2, and A5.106.5.3.5 are applicable to building permit applications filed on or after January 1, 2023, for new construction three stories or less and are applicable to building permit applications filed on or after January 1, 2026, for new construction four stories or more.

15.38.040 Infeasibility waiver determination process and appeals.

The building official shall develop guidelines establishing a process to consider infeasibility waivers under section 15.38.030.A.  The guidelines must be developed in consultation with relevant industry experts and practitioners, including the Sacramento Municipal Utility District.  The process must include, but not is not limited to, a meeting during which the building permit applicant can present evidence to support the claim of infeasibility; a timely written decision granting or denying the infeasibility waiver that includes the reasons for the decision; and the ability for a building permit applicant to appeal the infeasibility‐waiver decision in accordance with chapter 1.24 by filing a notice of appeal within 10 business days after the written decision is sent to the building permit applicant.  The guidelines shall not be effective until approved by resolution of the City Council.

SECTION 4.

If any provision of this Ordinance or its application to any person or circumstance is held invalid or ineffective by any court of competent jurisdiction, or by reason of any preemptive legislation, that invalidity shall not affect the validity of the remaining provisions of this Ordinance. The City Council declares that it would have passed this Ordinance and each section, subsection, subdivision, sentence, clause, and phrase, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or words be declared invalid.

Adopted by the City of Sacramento City Council on           by the following vote:

Ayes:

Noes:

Abstain:

Absent:

______________________
MAYOR
Attest:

10 ______________________
City Clerk

Passed for Publication:

Published:

Effective:

1 ORDINANCE NO.

Adopted by the Sacramento City Council

Date Adopted

AN ORDINANCE DELETING CHAPTER 15.30 AND AMENDING CHAPTER 15.38 OF THE

SACRAMENTO CITY CODE TO ADOPT LOCAL AMENDMENTS TO THE CALIFORNIA BUILDING

STANDARDS CODE RELATING TO NEW BUILDING ELECTRIFICATION

BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1.

In connection with the local amendments to the 2022 California Green Building Standards Code and pursuant to California Health and Safety Code sections 17958, 17958.5, 17958.7, and 18941.5, the City Council finds and determines that:

A. The amendments are reasonably necessary because of local climatic, geological, or topographical conditions.

B. Under this adopting ordinance, specific amendments are established that are more restrictive than those adopted by the State of California under the State Buildings Standards Code, Title 24 of the California Code of Regulations.

C. Express Finding Number 1: Climatic

The burning of fossil fuels used to heat structures, to heat water, to cook, to operate vehicles, and for other uses significantly contributes to greenhouse gas emissions and consequently, climate change. “Combustion of natural gas and petroleum products for heating and cooking needs emits carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). Emissions from natural gas consumption represent 79% of direct fossil fuel CO2 emissions from the residential and commercial sections in 2020.”1 The burning of fossil fuels releases “the greenhouse gases carbon dioxide (CO2) and nitrous oxide (N2O) into the atmosphere, which intensifies the greenhouse effect (the re-radiation of heat in the atmosphere), increasing the Earth’s average air temperatures.”2“Long-lived gases such as carbon dioxide can persist in the atmosphere for more than 100 years, even with efforts to reduce emissions today.”3 “Scientists attribute the global warming trend observed since the mid-20th century to the human expansion of the

1 United States Environmental Protection Agency, Source of Greenhouse Gas Emissions, as of July 5, 2022, https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions#commercial-and-residential. 2 Understanding Global Change. A project of the University of California Museum of Paleontology. https://ugc.berkeley.edu/background-content/burning-of-fossil-fuels/ 3 Houlton, Benjamin, Jay Lund, (University of California, Davis), 2018. Sacramento Summary Report. California’s Fourth Climate Change Assessment. Publication number: SUM-CCCA4-2018-002, page 11.

2 ‘greenhouse effect’ warming that results when the atmosphere traps heat radiating from Earth toward space.”4 Nitrous oxide, carbon dioxide, and methane are gases that contribute to the greenhouse effect.5

“Global climate change imposes substantial local impacts and risks on the Sacramento Valley, including rising temperatures, changing precipitation patterns and amounts, sea level rise, flooding, drought, and wildfire.”6 A general summary of climate risks facing the Sacramento Valley Region, including the City of Sacramento, are as follows:

• Warming air and water temperatures
• More extreme heatwaves
• Drier landscapes
• Less snow
• Variable precipitation and seasonal shifts
• More intense droughts and floods with less predictability • Higher Delta water levels compounded by subsidence
• Increased risk of wildfire
• Loss of ecosystem habitat7

“The Sacramento Region is expected to experience hotter and drier conditions and reduced snowpack that could cause reduced reservoir supplies and Sacramento and American River flows.”8 “Increased flood frequency and elevated flood risk are expected in California as a result of sea level rise, more intense storm events, and shifts in the seasonal timing of rainfall and snow pack runoff.”9 “Higher temperatures and the increased frequency of heat waves associated with climate change are expected to significantly increase heat-related illness, such as heat exhaustion and heat stroke.”10

Requiring all-electric construction without gas infrastructure will reduce the amount of greenhouse gas produced in Sacramento and will contribute to reducing the impact of climate change and the associated risks.

Based upon this express finding, the following building standards in the 2022 California Building Standards Code are amended or added:

4 NASA, Causes of Climate Change, as of July 5, 2022, https://climate.nasa.gov/causes/. 5 NASA, Causes of Climate Change, as of July 5, 2022, https://climate.nasa.gov/causes/. 6 Houlton, Benjamin, Jay Lund, (University of California, Davis), 2018. Sacramento Summary Report. California’s Fourth Climate Change Assessment. Publication number: SUM-CCCA4-2018-002, page 17. 7 Houlton, Benjamin Jay Lund, (University of California, Davis) 2018. Sacramento Summary Report. California’s Fourth Climate Change Assessment. Publication number: SUM-CCCA4-2018-002, page 6. 8 City of Sacramento, Sacramento Climate Action Plan, Expected effects on the Sacramento Region, section 3.3, page 3-11, January 13, 2012.
9 City of Sacramento, Sacramento Climate Action Plan, Expected effects on the Sacramento Region, section 3-3, page 3-13, January 13, 2012.
10 City of Sacramento, Sacramento Climate Action Plan, section 3.3, page 3-13, January 13, 2012.

3 ● 2022 California Green Building Standards Code sections 101.12, subsections 101.12.1 through 101.12.7, and section 202 (prohibiting gas infrastructure, thereby decreasing the impact of greenhouses gases).

D. Express Finding Number 2: Geological

Sacramento is subject to ground tremors from seismic events as the City is located in Seismic Design Category D, which equates to a high risk of earthquakes. The high-risk seismic zone is defined based on the proximity to known fault lines, soil type, and known mapped spectral accelerations. Large portions of Sacramento have very poor soil conditions, including liquefiable soil. The soil is often expansive in nature and very acidic which leads to premature deterioration of plumbing piping installed in the ground. Although non-metallic gas pipe is not susceptible to deterioration, there are buildings built with metallic gas pipe infrastructure.

The agricultural history for many parts of Sacramento has resulted in many areas having caustic or “hot” soil conditions due to the heavy use of fertilizers, pesticides, insecticides, etc.

Unprotected metal pipe, when buried in these areas, is subject to corrosion and premature failure.

The elimination of natural gas (fuel gas) infrastructure in buildings would reduce the hazards associated with gas leaks during seismic events.

Based on this express finding, the following building standards in the 2022 California Building Standards Code are amended:

● 2022 California Green Building Standards Code section 101.12, including subsections 101.12.1 through 101.12.7, and section 202 (prohibiting gas infrastructure, thereby decreasing the impact of greenhouses gases).

E. Health and Safety

Some subpopulations of Sacramento residents suffer high rates of respiratory illnesses like asthma and cardiovascular disease due to both outdoor and indoor air pollution. The American Lung Association lists Sacramento as one of the most polluted cities in the nation, ranking ninth by ozone pollution, eleventh by year-round particle pollution, and seventh by short-term particle pollution.11 Indoor air pollutants that arise from onsite natural gas (fuel gas) combustion further exacerbate health outcomes for Sacramento residents, particularly for people of color, immigrants, indigenous communities, low-income people, those with disabilities, and the unhoused. Studies have shown that children living in homes with gas cooking are 42% more likely to have asthma, with low-income households suffering higher

11 American Lung Association, Most Polluted Cities 2022, https://www.lung.org/research/sota/city-rankings/most- polluted-cities.

4 levels of poor indoor air quality and consequent health impacts.12 The elimination of natural gas (fuel gas) appliances and infrastructure will significantly reduce and prevent the public health and safety risks associated with natural gas (fuel gas) combustion and promote the wellbeing of Sacramento’s most vulnerable populations.

SECTION 2.

Chapter 15.30 of the Sacramento City Code is hereby deleted.

SECTION 3.

Chapter 15.38 of the Sacramento City Code is amended to read as follows:

Chapter 15.38 AMENDMENTS TO THE CALIFORNIA GREEN BUILDING STANDARDS CODE

15.38.010 Amendments to the CGC.

The CGC is amended as set forth in this chapter.

15.38.020 Catchlines of sections.

For the purposes of this chapter, and notwithstanding the provisions of section

1.04.060, the catchlines (or titles) of sections in this chapter are part of such sections.

15.38.030 Local amendments to the CGC.

A. Section 101.12 is added to read as follows:

101.12 New Building Electrification

101.12.1

For building permit applications filed on or after January 1, 2023, except as provided in subsections 101.12.6 and 101.12.7, all newly constructed buildings that are three stories or less shall be all-electric buildings.

101.12.2

For building permit applications filed on or after January 1, 2026, except as provided in subsection 101.12.7, all newly constructed buildings shall be all-electric buildings.

12 California Public Interest Research Group, Gas Stoves: A Hidden Health Risk In Plane Sight, https://calpirg.org/reports/cap/gas-stoves-hidden-health-risk-plain- sight#:~:text=A%20meta%2Danalysis%20of%2041,a%20doctor%20over%20their%20lifetime.

5 101.12.3

For the purposes of all-electric building requirements, the term “newly constructed building” as defined in Section 202 does not include additions, improvements, or tenant improvements, to “existing buildings” as defined in the CBC.

101.12.4

Except as provided in subsections 101.12.6 and 101.12.7, building permits shall not be issued to convert all-electric buildings that are three stories or less into mixed-fuel buildings when the initial building permit application is filed on or after January 1, 2023.

101.12.5

Except as provided in subsection 101.12.7, building permits shall not be issued to convert all-electric buildings into mixed-fuel buildings when the initial building permit application is filed on or after January 1, 2026.

101.12.6

Limited exemptions. For building permit applications filed on or before December 31, 2025, an applicant may request one of the following limited exemptions to construct a mixed fuel building:

a. Ground floor food service establishment for the area of the building with cooking equipment. The building official shall grant the exemption only for fuel gas piping, fixtures, or infrastructure necessary for cooking equipment within the designated food service area.

b. Manufacturing or industrial facilities for the area of the building with process loads.

The building official shall grant this exemption only for the area of the building with process loads.

c. Water-heating systems and equipment in regulated affordable housing for those portions of the building where virtual net energy metering is unavailable.

If the technology to require construction of an all-electric building for ground-floor food- service establishments, manufacturing facilities, industrial facilities, or regulated affordable housing is not feasible and available by July 1, 2025, the City Council shall consider extending the building permit application filing deadline for the limited exemption until technology is feasible and available.

101.12.7

6 Infeasibility.

The building official may waive the requirements of subsections 101.12.1 or 101.12.2 only for those portions of the building if a building permit applicant establishes, to the satisfaction of the building official that it is infeasible to comply with the requirements because of the type of building, physical site conditions, commercial availability of electric appliances or equipment, necessary operational requirements, electrical infrastructure requirements, or the public health, safety, or economic welfare in the event of an electric grid outage.

B. The following definitions are added to section 202 to read as follows:

ALL-ELECTRIC BUILDING means a building that does not have fuel gas piping installed on the lot or within the building; and that uses electricity as the sole source of energy, except for emergency power systems that are required to serve essential facilities or are otherwise required by law or regulation.

COOKING EQUIPMENT means equipment, including ovens, ranges, brewing kettles, and cooking appliances, that are intended for commercial use in a restaurant, brewery, or other business establishment where food or beverages are prepared and served for consumption on-site or off-site, other than a cottage food operation as defined in California Health and Safety Code section 113758.

EMERGENCY POWER SYSTEM has the same meaning as in California Building Code section 202.

ESSENTIAL FACILITIES has the same meaning as in California Building Code section 202.

FOOD-SERVICE ESTABLISHMENT means a building with cooking equipment where food or beverages are prepared and served for consumption on-site or off-site.

FUEL GAS has the same meaning as in California Mechanical Code section 208 and California Plumbing Code section 208.

MANUFACTURING OR INDUSTRIAL FACILITY means a building with the occupancy classifications defined in the California Building Code, Chapter 3, Section 306, Group F or Section 313, Group L.

MIXED-FUEL BUILDING means a building that includes fuel gas piping and that is capable of using both fuel gas and electricity as sources of energy.

PROCESS LOAD means an energy load resulting from a process.

7 REGULATED AFFORDABLE HOUSING means a building to be occupied by low or moderate income households as defined in California Health and Safety Code section 50093; offered at an affordable rent as defined in California Health and Safety Code section 50053 for a period of at least 30 years; and subject to restriction for a period of at least 30 years under a recorded regulatory agreement between the property owner and a local, state, or federal agency.

VIRTUAL NET ENERGY METERING means a billing arrangement that allows multi-tenant building owners to install a single solar system to cover the electricity load of both common and tenant areas connected at the same service delivery point. The electricity does not flow directly to any tenant meter, but feeds some common area loads and the remainder goes onto the grid. The electricity that is feed back to the grid is then proportioned to the tenant’s bill.

15.38.040 Infeasibility waiver determination process and appeals.

The building official shall develop guidelines establishing a process to consider infeasibility waivers under section 15.38.030.A. The guidelines must be developed in consultation with relevant industry experts and practitioners, including the Sacramento Municipal Utility District. The process must include, but not is not limited to, a meeting during which the building permit applicant can present evidence to support the claim of infeasibility; a timely written decision granting or denying the infeasibility waiver that includes the reasons for the decision; and the ability for a building permit applicant to appeal the infeasibility-waiver decision in accordance with chapter 1.24 by filing a notice of appeal within 10 business days after the written decision is sent to the building permit applicant. The guidelines shall not be effective until approved by resolution of the City Council.

SECTION 4.

If any provision of this Ordinance or its application to any person or circumstance is held invalid or ineffective by any court of competent jurisdiction, or by reason of any preemptive legislation, that invalidity shall not affect the validity of the remaining provisions of this Ordinance. The City Council declares that it would have passed this Ordinance and each section, subsection, subdivision, sentence, clause, and phrase, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or words be declared invalid.

Adopted by the City of Sacramento City Council on by the following vote:

Ayes:

Noes:

8 Abstain:

Absent:

______________________
MAYOR
Attest:

______________________
City Clerk

Passed for Publication:

Published:

Effective:

RESOLUTION NO.

Adopted by the Sacramento City Council

Amending the Master Fees and Charges Schedule to Authorize the Establishment of New Fees to Implement the Review of Applications for Waivers, and Cover the Cost of Appeals of Infeasibility Waiver Decisions Related to New Building Electrification

BACKGROUND
A. In June 2020, the Mayors’ Commission on Climate Change Final Report recommended the electrification of new and existing buildings, each of which are critical for the reduction of greenhouse gas emissions.

B. On January 19, 2021, City Council adopted Resolution No. 2021-0022 establishing building electrification as a key strategy of the 2040 General Plan by:
a. Requiring all new buildings to be all electric and eliminate the use of natural gas and fossil fuels for building operations.
b. Gradually transition existing buildings away from natural gas to electric and assist low-income residents by offering financial incentives (Resolution No. 2021-0022).

C. On June 1, 2021, Council Adopted the New Building Electrification Ordinance, which allows the Building Official to waive all-electric requirements for the portions of a building were all-electric is infeasible, provided the building permit applicant has established to the satisfaction of the Building Official that it is infeasible to comply with all-electric requirements.

D. On September 6, 2022, the Budget & Audit Committee passed a motion forwarding the proposed amendment to the Master Fees and Charges Schedule to City Council for approval.

E. On November 29, 2022, City Council adopted the 2022 New Building Electrification Ordinance to align it with the 2022 California Building Code.

F. New fees are required to implement the review of applications for waivers for exceptions from all-electric requirements due to infeasibility, and to cover the City’s costs related to appeals of infeasibility waiver decisions.

G. City Council finds that these fees are not “taxes” under Proposition 26 and under Cal. Const. art. XIII C (e)(2) as fees for government services.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. The City of Sacramento Master Fee Schedule is hereby amended as set forth in Exhibit A and Exhibit B, to establish new fees related to infeasibility waiver processing and appeals of infeasibility decisions for new building electrification as provided in section 15.38.030 of the Sacramento City Code.

Section 2. Exhibit A and Exhibit B form parts of this resolution Table of Contents:

Exhibit A – Application Fees
Exhibit B – Appeal Fee

Exhibit A – Application Fees

Fee Name: Infeasibility Waiver Application Fee
Current Fee $0.00
Proposed Fee: $492.00
Justification for Fee: Recover costs associated with administrative processing fee for the infeasibility waiver application. This fee also covers coordination with the technical consultant.

Proposition 26: This charge is not a tax under Proposition 26, as it falls under Exception 3, a regulatory fee. The proposed fee will cover the department’s cost to administer the program.

Fee Name: Infeasibility Waiver Consultant Fee
Current Fee $0.00
Proposed Fee: $1,500.00
Justification for Fee: Recover costs associated with consulting services.

Proposition 26: This charge is not a tax under Proposition 26, as it falls under Exception 3, a regulatory fee. The proposed fee will cover the department’s cost to administer the program.

Exhibit B – Appeal Fees

Fee Name: Infeasibility Waiver Appeal Fee
Current Fee $0.00
Proposed Fee: $1,640.00
Justification for Fee: Recover costs associated with applicant appeal process. This cost covers processing, report writing, consultation with City Council, and presentation to City Council.

Proposition 26: This charge is not a tax under Proposition 26, as it falls under Exception 3, a regulatory fee. The proposed fee will cover the department’s cost to administer the program.

RESOLUTION NO.

Adopted by the Sacramento City Council

ESTABLISHING INFEASIBIITY WAIVER GUIDELINES TO SUPPORT

IMPLEMENTATION OF THE NEW BUILDING ELECTRIFICATION ORDINANCE

BACKGROUND
A. On June 29, 2020, the Mayors’ Commission on Climate Change Final Report recommended the electrification of new and existing buildings, each of which are critical for the reduction of greenhouse gas emissions.

B. On January 19, 2021, City Council adopted Resolution No. 2021-0022 establishing building electrification as a key strategy of the 2040 General Plan by:
a. Requiring all new buildings to be all electric and eliminate the use of natural gas and fossil fuels for building operations.
b. Gradually transition existing buildings away from natural gas to electric and assist low-income residents by offering financial incentives (Resolution No. 2021-0022).

C. On June 1, 2021, City Council adopted the 2021 New Building Electrification Ordinance which adopted local amendments to the California Building Standards Code and added to and amended various provisions of Title 15 (Buildings and Construction) of the Sacramento City Code.

D. On November 29, 2022, City Council adopted the 2022 New Building Electrification Ordinance to align it with the 2022 California Building Code.

E. The New Building Electrification Ordinance allows the Building Official to waive all- electric requirements for the portions of a building where all-electric is infeasible, provided the building permit applicant has established to the satisfaction of the Building Official that it is infeasible to comply with all-electric requirements.

F. The New Building Electrification Ordinance provides that the Building Official shall develop guidelines establishing a process to consider infeasibility waivers.

G. The Infeasibility Waiver Guidance Document (Exhibit A) was developed with extensive input from the 14-member technical panel representing relevant industry experts and practitioners.

H. The Infeasibility Waiver Guidance Document provides a process, criteria, and documentation for the review of requests for infeasibility waivers.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. The New Building Infeasibility Waiver Guidance Document as set forth in Exhibit A to this Resolution is approved.

Table of Contents:

Exhibit A: Infeasibility Waiver Guidance Document

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New Building Electrification Infeasibility Waiver Guidance Document Section 1: Introduction
The City of Sacramento’s New Building Electrification Ordinance establishes phased requirements for the electrification of new building construction. The first phase of the New Building Electrification Ordinance (for newly constructed buildings that are three stories or less) will take effect on January 1, 2023, and second phase (for newly constructed buildings that are four stories or more) will take effect on January 1, 2026.

The New Building Electrification Ordinance does not apply to existing buildings or modifications to existing buildings, including new additions, alterations, retrofits, or tenant improvements.

This document supports the implementation of the New Building Electrification Ordinance by providing a process, criteria and other guidelines for the review and consideration of infeasibility waivers under Section 15.38.030.A of the Ordinance. This guidance document was developed in consultation with relevant industry experts and practitioners.

Section 2: Communication
This section describes methods of communication the City of Sacramento (City) will use to advise the development community and public about the City’s New Building Electrification Ordinance (Ordinance) requirements for building permit applications filed between January 1, 2023 and December 31, 2025.

This period excludes:
 Buildings four stories or more.
 Ground-floor food service establishments for cooking equipment.  Manufacturing or industrial facilities for the area of the building with process loads.  Water-heating in regulated affordable housing where virtual net energy metering is unavailable.

The new building electrification requirements and the infeasibility waiver do not apply to additions, improvements, modifications, alterations, retrofits, or tenant improvements to existing buildings as defined in the California Building Code.

The City of Sacramento Planning Division will advise applicants about all-electric requirements by:
 Advertising: a banner on the Community Development Department webpage, signature line in staff emails, a project webpage, handouts printed at the planning desk upon request, and direct email notifications.
 Advisory language: The City will add advisory language to planning application forms and the Planning Record of Decision for all approved projects.
 Orally: During meetings, including Pre-application Meetings, Subdivision Review Committee (SRC), and Matrix Review Committee (MRC), Planning Division staff will inform applicants about the all-electric requirements.

The City’s 3-1-1 customer service center offers a phone number with translation services for applicants that may need assistance. In addition, Google Translate may be used to translate a document into other languages as needed.

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The media listed above will include links to online information, such as the New Building Infeasibility Waiver Guidance Document, so that project applicants can obtain details about the process of applying for an infeasibility waiver, how the City will review their application, and outcomes that may result from the review. The cost of the infeasibility waiver application will be listed on the website and application form.

Section 3: New Building Electrification Infeasibility Waiver Process This section provides an overview of the application, review, and determination processes for a New Building Electrification Infeasibility Waiver for applicants that believe a new construction project is infeasible to be all electric. The infeasibility waiver does not apply to additions, improvements, modifications, alterations, retrofits, or tenant improvements to existing buildings as defined in the California Building Code.

1. Planning Phase

 Explore options to
achieve
compliance
 Provide referrals to
SMUD
 Provide links to
information
sources (New
Building Institute,
DOE, Energy Star)

2. Waiver
Application
 Applicant obtains,
completes, and
submits waiver
application
 Technical
consultant makes
recommendation
to Building official
 Building Official
makes
determination and
signs report either
approving or
denying waiver.

Building official
sends the decision
to the applicant.

3. Building Permit
Application

 Applicant submits
granted waiver
with formal
building package.

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1. Planning Phase (Planning Division)
During the Planning Phase, Planning Division staff will advise applicants about options that will assist their projects in achieving compliance with the New Building Electrification Ordinance such as energy efficiency to reduce electrical loads, and site and building design to create space for electric infrastructure and equipment.

Planning Division staff will encourage applicants to consult with SMUD about capacity of SMUD infrastructure, grid, and equipment. It is the developer’s responsibility to engage with SMUD’s electrical design process as early as possible by following this link: https://www.smud.org/en/Business-Solutions- and-Rebates/Design-and-Construction-Services/New-SMUD-Construction-Required.

If the applicant believes that solutions for compliance have been exhausted, Planning Division staff will provide a link to the New Building Electrification Infeasibility Waiver Guidance Document and the New Building Electrification Infeasibility Waiver Application on the Building Division webpage, and refer the applicant to the Building Division.

If the building meets one of the limited exemptions, or is four stories or more, the applicant will check a box on the building permit application denoting which limited exemption applies or that the building is four stories or more. For the following new building situations, the applicant will not need to complete a New Building Infeasibility Waiver Application:
 Building is four stories or more.
 Will have ground-floor food service establishments.
 Will be manufacturing or industrial facilities with process loads.  Water-heating in regulated affordable housing where virtual net energy metering is unavailable.

2. New Building Infeasibility Waiver Application (Building Division with Support from Technical Consultant)
a) If the applicant believes that an all-electric building is infeasible according to the criteria in Section 5, the applicant will obtain a New Building Electrification Infeasibility Waiver Application (Application) from the Building Division staff or webpage. The applicant for an infeasibility waiver will need to fully complete the application, including the required supporting documentation.
b) The applicant will submit the application, documentation of evidence necessary to establish that it would be infeasible for the project to comply with all-electric requirements, and all applicable fees to the Building Division. The Application must be submitted before formal submittal to the Building Division for building permit plan check.
c) The applicant may request a meeting with Building Division staff to present documentation and any other evidence to support the applicant’s claim of infeasibility. Building Division staff and/or the City’s technical consultant will meet with the applicant and any applicant representatives if requested.
d) The Building Division will use a qualified technical consultant to review applications and supporting documentation. Following the review of the Application and evidence of infeasibility, the technical consultant will prepare a written report with a recommendation to grant or deny the infeasibility waiver, including justification for the recommendation. The technical consultant will sign the report and submit their recommendation to the City’s Building Division.

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e) The Building Official or Building Official’s designee will make a determination to approve or deny the waiver, then sign and send the report to the applicant with the decision and justification for denial or approval.

3. Formal Building Permit Application/Plan Check Period (Building Division) a) The applicant must submit the New Building Electrification Infeasibility Waiver decision (recommendation, supporting documentation, and report) signed by the Building Official or Building Official’s designee with the formal building submittal package to provide a record that the applicant has established to the satisfaction of the Building Official that it is infeasible to comply with the all-electric building requirements. The Building Official can waive the requirements of the New Building Electrification Ordinance only for those portions of the building or type of equipment that is infeasible to be electric. b) The Building Division will refer to the approved New Building Electrification Infeasibility Waiver in the City’s records for information about the specifics of the waiver and the specific areas of the building or specific types of equipment for which fuel gas piping and fuel gas is allowed. The Building Division will not approve plans that include fuel gas piping except for specific areas of the building or specific types of equipment that are allowed by the approved waiver(s).

Section 4: Appeal Process
A building permit applicant may appeal the Infeasibility Waiver decision in accordance with Sacramento City Code Chapter 1.24 by filing a notice of appeal within 10 business days after the written decision is sent to the building permit applicant.

Section 5: New Building Electrification Infeasibility Waiver Criteria Architects and designers are expected to plan in advance by designing buildings as all-electric early in the project design process through use of strategies such as energy efficiency to reduce electrical loads, and site and building design to create space for electric infrastructure and equipment.

This section describes the criteria by which applicants can apply for an infeasibility waiver for criteria defined in the New Building Electrification Ordinance. It does not address building types and equipment that currently qualify for a limited exemption under the Ordinance. The infeasibility waiver criteria specified in the New Building Electrification Ordinance include:
● Type of building
● Physical site conditions
● Commercial availability of electric appliances or equipment/technology ● Necessary operational requirements
● The public health, safety, or economic welfare in the event of an electric grid outage ● Electrical infrastructure requirements
The following is an initial list of scenarios for which the City will consider infeasibility applications. This may be revised as described in Section 7.
● Fuel gas piping and fuel gas may be used if the physical site constraints of the building site (property’s size, shape, topography, location, or surroundings, but not the building dimensions) make it infeasible for transformers to be located on site in adherence to City of Sacramento Development and Design Standards. Note: Architects and designers are expected to plan in advance by designing the building as all-electric from the start and use strategies such as energy Final November 17, 2022

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efficiency to reduce electrical loads, and site and building design to create space for electric infrastructure and equipment.
● Fuel gas piping and fuel gas may be used in appliances or equipment used for process loads (as defined in the Ordinance) if electric equipment/appliance technology is not available to satisfy the calculated load or if SMUD is not able to supply the required electrical service to meet the calculated load.
● Fuel gas piping and fuel gas may be used in the specific reach code scenarios described as “not cost effective using any metric” in the 2022 Cost Effectiveness Studies that will be available on the California Energy Codes and Standards website.
https://localenergycodes.com/content/resources
● Fuel gas piping and fuel gas may be used if electric appliances or equipment are not commercially available, which is defined as “can be purchased for installation in the United States and is available from more than one established supplier.” Fuel gas piping and fuel gas may be used only for the equipment or appliance that is not commercially available. ● Fuel gas piping and fuel gas may be used if installation and/or operation of electric equipment would impede the operation of the building (disrupt the conduct of business or be disruptive to residents), is in conflict with any applicable laws or regulations, would prohibit a type of business or industry, or would prohibit socio-cultural traditions that communities practice. ● Fuel gas piping and fuel gas may be used if electric equipment will cause undue health, safety, or economic harm during a power outage of hours or days and the building will not have access to an emergency power system as defined in the California Building Code. ● Fuel gas piping and fuel gas may be used if electric equipment is prohibited by State or County public health or safety regulations.

Section 6: New Building Electrification Infeasibility Waiver Documentation The following provides guidance to the applicant about required documentation to submit to the Building Division with the New Building Electrification Infeasibility Waiver application (Application). The applicant is solely responsible for demonstrating infeasibility by submitting all materials to the Building Division for review.

The applicant must submit one or more of the following as documentation with the Application.

Calculations must be completed by a qualified third-party or use industry-standard methods of calculation. The Building Division will engage technical consultants with expertise in the type of building and/or type of equipment to review the supporting documentation and assumptions. ● Electrical load calculations using an industry-standard method to demonstrate that energy needs exceed the capabilities of available electric equipment. Calculations must show all assumptions and formulas.
● Documentation of building design solutions considered to demonstrate all-electric equipment cannot be installed due to size or shape of the equipment and the property. The applicant must demonstrate that there are no building design solutions that will create adequate space for electric equipment or infrastructure and comply with City of Sacramento Development and Design Standards, such as reducing the dimensions of the building, and there is not a technical solution, such as reducing electrical load to reduce the size of infrastructure, or the use of different equipment.

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● Documentation from at least two suppliers that demonstrates electric appliances or equipment is not able to be purchased for installation in the United States in the required quantity at a price that demonstrates cost-effectiveness of purchase, installation, and operation over the expected life cycle of the equipment.
● Documentation that all-electric construction inhibits or prevents compliance with any applicable laws or regulations.
● Documentation with contextual information about the type of business, industry, or socio- cultural tradition(s) and why it would be prohibited by electric equipment or appliances. ● Documentation with contextual information that demonstrates that stand-by emergency power systems as defined in the California Building Code are not available and that an extended power outage will cause significant physical or financial harm.

Section 7: Continuous Improvement
It is the City’s intention to make New Building Electrification Infeasibility Waiver application and review fair and equitable, and to ensure it is not a roadblock to economic development.

On a to-be-determined basis, the City will update the New Building Infeasibility Waiver Guidance Document, Waiver Application, application and review process, and required documentation to incorporate best practices and applicant feedback.

Prior to December 2025, the City will update the New Building Infeasibility Waiver Guidance Document to reflect changes in the California Building Code and the Sacramento City Code, and to reflect changes to the limited exemptions. As needed, the City will engage with individuals and groups that have expertise in building development, a variety of business types, electric equipment and appliances, and ethnic and cultural traditions to ensure that changes reflect the state of technology and Sacramento’s diversity, economics, and progress toward reducing the impacts of climate change.

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