Reach Codes for Cooling
Upgrades and Planned
Home Renovations
November 3, 2025
City Council
1 Recommendation
Provide direction on reach code options for cooling
upgrades and planned home renovations for the 2025
Code Cycle.
2 What are Reach Codes?
• California Building Standards Code
standardizes the construction of residential
and non-residential buildings in California
• Reach codes = Local amendments to the
state code that reach above the state
requirements
• Upcoming code cycle: January 1, 2026 –
December 31, 2028
3 City Climate Goals
On-road transportation
53%
Commercial/industria
l built environment
16%
Residential built
environment
22%
Off-road equipment
3%
Solid waste generation
4%
Landfill
1%
Rail
1%
Water and wastewater
0.32%
San Mateo GHG Emissions Inventory
4 Bay Area Reach Codes
• Collaboration supporting agencies in adopting Reach Codes for a sustainable future
• Co-led by Peninsula Clean Energy
• Peninsula Clean Energy is San Mateo County’s not for profit locally-led electricity provider, providing 100% carbon free electricity for use in our homes, businesses, and electric vehicles
• Mission: To reduce greenhouse gas emissions by
expanding access to sustainable and affordable energy
solutions
5 Reach Code Options Overview
Single Family, Townhomes, Duplex
Option 1:
Cooling Upgrades
These reach codes…
§ Do not ban the use of any gas appliances or require immediate equipment replacement. § Focuses on elective intervention points to encourage efficiency or add infrastructure. § Must demonstrate cost-effectiveness, as approved by the California Energy Commission (CEC).
Option 4:
Electric Readiness
Option 3:
FlexPath
Nonresidential
Option 2:
Cooling Upgrades
~257 MT CO2e per year by 2030 N/A~730 MT CO2e/yr by 2030~427 MT CO2e per year by 2030 Single Family, Townhomes, Duplex
6 Option 1: Cooling Upgrades Reach Code
Single Family Homes, Duplexes and
Townhomes
When replacing or adding space cooling choose
one of the following:
› Install a heat pump space conditioner at State
Code;
OR
› Install an air-conditioner and other energy
improvements that go above State Code.
This reach code does not impact furnace
replacements.
7 Cooling Upgrades Costs
Up-Front Costs
• Heat pumps can cost $1,000 - $3,000 more than air
conditioner units. Rebates often cover the gap.
Bill Savings
• Heat pumps save residents $200-$400 per year in bill
costs compared to air conditioners.
Lifecycle Costs
• Heat pumps can both heat and cool a home, so only
one piece of equipment needs to be maintained
instead of two.
Sources: Single Family Air Conditioner Replacements Cost-effectiveness Report, Climate Zone 3 & 4 Bill Impacts of Home Electrification Across the Bay Area 8 Heat Pump
Water Heater
$2,500 rebate
Heat Pump
HVAC
$1,500 rebate
Zero Percent
Loan
$10,000 Loan
• $1,000 for CARE/FERA, $1,000 for electrical panel upgrade • No-cost/low-cost full-service home electrification for income-eligible homeowners
Peninsula Clean Energy Rebates
9 • Average 328 permits per year, includes all building types • Average 216 heat pumps installed per year
• Average 20-40 AC projects
• ~257 MT CO2e per year by 2030
• Adopted by Palo Alto, Menlo Park, Mountain View, and
Sunnyvale; currently under review by more Bay Area cities Option 1: Cooling Upgrades Reach Code
Single Family Homes, Duplexes and
Townhomes
10 Option 2: Cooling Upgrades Reach Code
for Nonresidential Buildings
When replacing or adding single zone rooftop
HVAC, choose one to install:
› A single zone heat pump (cooling + heating) and
comply with State Code;
OR
› A single zone air-conditioner (cooling only) and
a heat recovery ventilator
11 Option 2: Cooling Upgrades Reach Code
for Nonresidential Buildings
• Average 328 permits per year, includes all building
types
• Average 216 heat pumps installed per year
• Average 20-40 AC projects
• ~427 MT CO2e per year by 2030
• Has not been adopted by other jurisdictions
12 Option 3: FlexPath for Single Family
Homes, Duplexes and Townhomes
Requires alteration and/or addition projects of a certain size or dollar valuation (e.g., 1,000 ft2) to install energy improvements from a menu of measures to achieve a
target score.
• Does not apply to routine repairs and maintenance,
roof or window only projects, or ADUs.
• If measures have previously been installed, applicants will receive credit.
• Economic hardship and technical infeasibility
exceptions included.
13 FlexPath Example Project Scenario
› Remodel of 1,000 ft2 kitchen and living room in
a single family home
› No existing air conditioning
› Construction cost ~$500,000 ($500/ft2)
How will this comply with a FlexPath
Ordinance?
14 FlexPath Example Project Measures: Target Score = 18 Compliance Path 1
› Project chooses heat pump space conditioner
(18 points) to comply
› Total compliance cost = $12,500
2.5% cost increase
Rebates available to homeowner, not included in FlexPath calculations Compliance Path 2
› Project chooses water heating package (2) +
air sealing (2) + attic insulation (4) + windows
(4) + new ducts + duct sealing (6)
› Total compliance cost = $21,800
4.5% cost increase
Measure Point Value
Induction Cooktop 1
Heat Pump Clothes Dryer 1
Water Heating Package 2
Air Sealing 2
Duct Sealing 3
R-49 Attic Insulation 4
Windows 4
R-15 Wall Insulation 5
New Ducts + Duct Sealing 6
R-19 Floor Insulation 9
R-30 Floor Insulation 10
Heat Pump Water Heater 12
Solar PV + Electric Readiness 13
Heat Pump Space Conditioner 18
15 Option 3: FlexPath Reach Code for Single
Family Homes, Duplexes and Townhomes
• For 1,000 ft2 threshold, average 80-100 permits per year • ~730 MT CO2e per year by 2030
• Cities with FlexPath ordinances:
• Menlo Park: $100,000 or more and projects required to select two measures from list
• Santa Cruz: 350 square feet or greater, projects required to achieve a target score of 9
• Palo Alto: 1,000 square feet or greater and projects required to achieve a target score of 12
16 FlexPath Example Project Measures: Target Score = 12 Compliance Path 1
› Project chooses a heat pump hot water heater
(12 points) to comply
› Total compliance cost = $8,200
2% cost increase
Rebates available to homeowner, not included in FlexPath calculations Compliance Path 2
› Project chooses air sealing (2) + attic
insulation (4) + new ducts + duct sealing (6)
› Total compliance cost = $18,400
4% cost increase
Measure Point Value
Induction Cooktop 1
Heat Pump Clothes Dryer 1
Water Heating Package 2
Air Sealing 2
Duct Sealing 3
R-49 Attic Insulation 4
Windows 4
R-15 Wall Insulation 5
New Ducts + Duct Sealing 6
R-19 Floor Insulation 9
R-30 Floor Insulation 10
Heat Pump Water Heater 12
Solar PV + Electric Readiness 13
Heat Pump Space Conditioner 18 17
FlexPath Example Project Measures: Target Score = 30
Compliance Path 1
› Project chooses a heat pump hot water heater
(12 points) + heat pump space conditioner (18
points) to comply
› Total compliance cost = $20,700
4% cost increase
Rebates available to homeowner, not included in FlexPath calculations Compliance Path 2
› Project chooses air sealing (2) attic insulation
(4) + windows (4) + wall insulation (5) + new
ducts + duct sealing (6) + floor insulation (9)
› Total compliance cost = $37,100
7% cost increase
Measure Point Value
Induction Cooktop 1
Heat Pump Clothes Dryer 1
Water Heating Package 2
Air Sealing 2
Duct Sealing 3
R-49 Attic Insulation 4
Windows 4
R-15 Wall Insulation 5
New Ducts + Duct Sealing 6
R-19 Floor Insulation 9
R-30 Floor Insulation 10
Heat Pump Water Heater 12
Solar PV + Electric Readiness 13
Heat Pump Space Conditioner 18 18
Option 4: Electric Readiness for Single
Family Homes, Duplexes and Townhomes
When doing alterations and additions within three feet of an existing gas appliance or including a new gas appliance:
• Require some electrical infrastructure (e.g., circuits, conduits, reserved breakers) • Covers the following gas appliances: stoves/cooktops, dryers, water heaters, and outdoor appliances
Cost: May range from approximately $150 to $1,000 per appliance Exceptions:
Triggers electrical permit otherwise not required for the project Triggers electrical service and/or panel upgrades
Triggers repairs and/or safety improvements
New attached accessory dwelling units
Mobile homes, manufactured housing
19 • Expands on City’s current reach code
• Permit data not available
• Quantifiable GHG emissions reduction not available
• Adopted by Menlo Park, Mountain View, and Sunnyvale
Option 4: Electric Readiness Reach Code
for Single Family Homes, Duplexes and
Townhomes
20 Date and Time Location Meeting
September 25, 2025, 12:00 - 1:00 pm Zoom Contractor Meeting October 1, 2025, 6:00 - 7:00 pm Main Library – Oak Room 55 W. 3rd Avenue
In-person Community Meeting
October 6, 2025, 7:00 pm City Hall and Zoom Sustainability and Infrastructure Commission Meeting
October 21, 2025, 6:30 - 7:30 pm Zoom Virtual Community Meeting October 23, 2025, 7:00 - 8:00 pm Bayside Academy – Old Gym 2025 Kehoe Avenue
In-person Community Meeting
Reach Codes Outreach and Engagement
21 • Supportive of all four reach code options
• Emphasized importance of rebate availability to support heat pump installations
• For FlexPath: 1,000 ft2 threshold and 12-point or 18-point target score
Sustainability and Infrastructure
Commission Feedback
22 Recommendation
Provide direction on reach code options for cooling
upgrades and planned home renovations for the 2025
Code Cycle.
23 Staff seek City Council direction on the four reach code options:
1) Cooling upgrade requirements for single family homes, duplexes and townhomes
2) Cooling upgrade requirements for non-residential buildings 3) FlexPath for single family homes, duplexes and townhomes a) Defining covered projects
b) Selection of target score
4) Electric-readiness requirements for single family homes, duplexes and townhomes
24 Thank you!
Taylor Taylor
[email protected]
(510) 431-8547
25 Andrea Chow
[email protected]
(650) 522-7007
Title 24 – California Energy Code and CALGreen
• Title 24 California Code of Regulations (California
Building Standards Code) standardizes the
construction of residential and non-residential buildings in California
• Part 6 Energy Code and Part 11 Green Building Code
(CALGreen) of Title 24 govern energy efficiency in
buildings
• It is updated every three years, with an intervening
code adoption 18 months into each update
• Current code cycle:
• January 1, 2023- December 31, 2025
• Upcoming code cycle:
• January 1, 2026 – December 31, 2028
26 Cooling Upgrades - Policy Context
Air Quality Regulations
› Gas equipment creates NOx emissions
› NOx emissions create ozone and PM2.5
› The Bay Area is in “non-attainment” for ozone and particulate matter (PM) › Beginning in 2029, furnace sales will be restricted by California Air Resources Board and the Bay Area Air District.
› Future proofing
» Installing a heat pump now helps residents get homes ready for upcoming Air District rules. » Upgrading to a heat pump when adding or replacing A/C results in cost savings, both over the lifetime of the equipment, and right away for reduced monthly bills. 27 Expire December 31, 2025
› Electric-readiness for home renovations in single family, townhouses, duplexes
»Requires kitchen and laundry area renovation include installation of an outlet to allow for the use of electric appliances in the future »Requires panel replacement and panel upgrade projects to include panel capacity/breaker space for future electrification › Electric vehicle infrastructure for new construction
»Requires enhanced EV charging infrastructure for all building types › Energy Performance Margins for new construction
»Requires performance margins for all building types
City’s Current Reach Codes
28 FlexPath Menu of Measures
Measure Point Value
Induction Cooktop 1
Heat Pump Clothes Dryer 1
Water Heating Package 2
Air Sealing 2
Duct Sealing 3
R-49 Attic Insulation 4
Windows 4
R-15 Wall Insulation 5
New Ducts + Duct Sealing 6
R-19 Floor Insulation 9
R-30 Floor Insulation 10
Heat Pump Water Heater 12
Solar PV + Electric Readiness 13
Heat Pump Space Conditioner 18
29 Typical Reach Codes Adoption Schedule
Month 1
•Reach code
ordinance
introduction and
adoption
Month 2
•Reach code
ordinance
submittal to
California Energy
Commission
(CEC) and
Building Standards
Commission
(BSC)
Month 3 Month 4 Month 5 Month 6
•CEC approval of
City’s reach codes
•City begins reach
code enforcement
30