City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01367 8/27/2024 Consent Item 5.
Authorization to Apply for Two Grants through the United States Department of Energy Inflation Reduction Act of 2022 Assistance for the Adoption of the Latest and Zero Building Energy Codes Program
File ID: 2024-01367
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or City Manager’s designee to submit two joint grant applications for up to $30 million in total project funding through the U.S.
Department of Energy (DOE) Inflation Reduction Act of 2022 Assistance for the Adoption of the Latest and Zero Building Energy Codes program.
Contact: Vic Randall, Senior Planner, (916) 808-5530, [email protected]; Laura Tuller, Associate Planner, (916) 808-3546, [email protected]; Matt Hertel, AICP, Assistant Director, (916) 808-7158, [email protected]; Community Development Department Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
Description/Analysis
Issue Detail: The United States Department of Energy (DOE) issued a Funding Opportunity Announcement for the Assistance for the Adoption of Building Energy Codes program in December 2023. The City’s Community Development Department (CDD) is seeking approval to submit two proposals for funding, prior to the second-round application deadline of September 13, 2024. If approved, the City of Sacramento would be the lead applicant on one proposal developed jointly with the Sacramento Municipal Utility District (SMUD), which would support the development of a Building Performance Standards program within the City of Sacramento that would facilitate the decarbonization of buildings 50,000 square feet and larger within Sacramento. The City would also be the lead applicant on a second proposal developed jointly with the County of Sacramento, City of Elk Grove, and SMUD, which would support the development, adoption, and implementation of aligned building energy reach codes to facilitate accelerated regional decarbonization of new and existing buildings. Both proposals will also support workforce development, staff training, public
File ID: 2024-01367 8/27/2024 Consent Item 5.
awareness campaigns, and provide resources and guidance to builders and property owners on code compliance.
Policy Considerations: Applying for, and implementing projects funded by these grants would be consistent with the 2040 General Plan and Climate Action & Adaptation Plan (CAAP), which were adopted on February 27, 2024, and set policy direction to decarbonize Sacramento’s building stock by 2045, including requiring that newly constructed buildings exceed the State Building Energy Efficiency Standards. These projects would also be consistent with and implement the Existing Building Electrification Strategy, which was adopted on May 14, 2024, and outlines various actions to increase energy efficiency standards and support building electrification including the development of energy efficiency reach codes and a Building Performance Standards Program, in alignment with CAAP direction.
Economic Impacts: These grants are anticipated to support workforce development and employer development, assisting Sacramento residents and businesses in positioning themselves in the building electrification and energy efficiency market, which is anticipated to grow significantly over the coming decade as the city, region, and state continue to invest in building decarbonization to achieve our climate goals.
Environmental Considerations: The activity to apply for grant funds and execute all agreements and documents of compliance related to the grant is not a project pursuant to California Environmental Quality Act (CEQA) Guidelines 15378(b)(4). The activity is the creation of a government funding mechanism which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is not subject to CEQA.
Sustainability: These grants would support the decarbonization of Sacramento’s building stock, contributing to the City’s goal of achieving carbon neutrality by 2045.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: City Council approval is required to apply for, receive, or establish operating grant projects of more than $250,000. This grant funding will positively impact the City’s ability to decarbonize Sacramento’s built environment, support workforce development efforts that uplift our community by creating new career pathways that support this work and support economic development by supporting local businesses in developing a leadership position in the energy transition, and benefit residents and businesses by supporting the cost-effective efficiency investments in building energy systems. Each of these activities will contribute to the City’s goal of achieving carbon neutrality by 2045.
Financial Considerations: There is no match requirement for these grants.
File ID: 2024-01367 8/27/2024 Consent Item 5.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO. 2024-XXXX
Adopted by the Sacramento City Council
August 27, 2024
Authorization to Apply for Two Grants through the United States Department of Energy Inflation Reduction Act of 2022 Assistance for the Adoption of the Latest and Zero Building Energy Codes program
BACKGROUND
A. The federal Department of Energy (DOE) published a Funding Opportunity Announcement (FOA) for the Inflation Reduction Act of 2022 Assistance for the Adoption of the Latest and Zero Building Energy Codes program in December 2023. This program provides $1 billion in competitive grants nationwide, to support state and local governments implement innovative building energy codes to decarbonize new and existing residential and commercial buildings.
B. The City of Sacramento adopted a Building Electrification Memorandum of Understanding (MOU) with the County of Sacramento, City of Elk Grove, and SMUD in 2022. The MOU calls for collaborative planning and aggregation of resources to achieve the decarbonization of new and existing buildings.
C. The Climate Action & Adaptation Plan (CAAP), which was adopted in February 2024, set policy direction to decarbonize Sacramento’s building stock by 2045, including requiring that newly constructed buildings exceed the State Building Energy Efficiency Standards.
D. The City’s Existing Building Electrification Strategy (EBES), which was adopted in May 2024, outlines various actions to increase energy efficiency standards and support building electrification, in alignment with CAAP direction.
E. Applications for the DOE Inflation Reduction Act of 2022 Assistance for the Adoption of the Latest and Zero Building Energy Codes Program are due by September 13, 2024.
F. The grant applications will not exceed $30 million in total for both proposals.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or City Manager’s designee is hereby authorized to submit two joint grant applications for up to $30 million in total project funding through the U.S. Department of Energy Inflation Reduction Act of 2022 Assistance for the Adoption of the Latest and Zero Building Energy Codes program.