1 City of Santa Monica
Existing Building
Electrification Roadmap
2023
Prepared by the City of Santa Monica’s
Office of Sustainability and the
Environment
2 TABLE OF CONTENTS
1.0 INTRODUCTION...............................................................................................................3
2.0 BACKGROUND................................................................................................................4
2.1 WHY ELECTRIFY? ........................................................................................................4
2.2 ELECTRIFICATION TECHNOLOGIES................................................................6
2.3 BARRIERS TO ELECTRIFICATION.......................................................................7
3.0 EQUITABLE COMMUNITY ENGAGEMENT ........................................................7
4.0 BUILDING STOCK ANALYSIS..................................................................................10
5.0 COST ANALYSIS ............................................................................................................11
6.0 POLICY OPTIONS .........................................................................................................11
7.0 A CALL TO ACTION....................................................................................................13 3 1.0 INTRODUCTION
Santa Monica’s Existing Building Electrification Roadmap outlines policy recommendations to electrify Santa Monica’s existing buildings to help achieve emissions reduction goals in the Climate Action & Adaptation Plan. The roadmap includes priority areas from local stakeholders and outlines equity principles and funding goals. This roadmap also includes an analysis of Santa Monica’s existing building stock to guide local fuel-switching strategies. Expanded sections on electrification technologies, equity & stakeholder engagement, and building stock/cost analysis are linked in this Roadmap.
Disclaimer: The Roadmap does not include adopted policies nor has this document been officially approved by Santa Monica City Council. Further stakeholder engagement and review by commissions and City Council will take place before any requirements are considered for adoption.
The following benefits highlight the importance of existing building electrification that are central to this roadmap:
• Health and Safety – Improving indoor air quality and appliance safety for residents.
• Housing and Energy Costs –Ensuring that electrification projects do not present a cost burden for Low-Income residents (upfront and long-term with gentrification and rent-increase concerns).
• Greenhouse Gas (GHG) Reductions – Meeting Climate Action & Adaptation Plan (CAAP) & statewide goals to reduce GHG emissions in the building sector. • Comfort – Improving indoor comfort for residents with Heat Pump technology.
Community Co-developed Goals
The City developed a timeline and goals for existing building electrification. These goals are supported by policies and programs that will accelerate existing building electrification. The City worked with community stakeholders (identified in section 3.0) to iterate on goals outlined in this roadmap. The following goals are consistent with other state and local building electrification goals. The 2022 California Air Resources Board Scoping Plan includes a measure for a statewide zero-emission GHG standard for new appliances. If adopted by the state, starting in 2030, new space and water heaters sold for new and existing buildings would need to comply with the standard.
Table 1. Existing Building Electrification Goal Timeline Goal Timeline
Implement Building Performance Standards & benchmarking (for buildings <50k square feet) for existing buildings
End of 2024
4 Implement time of sale policy By 2028
Implement time of replacement policy By 2030
Fully electrify all multifamily affordable housing By 2030 Prohibit the installation of new fossil fuel appliances By 2030 Transition every existing building within City limits to all-electric By 2045 Above policies are outlined in section 6.0 of this roadmap.
Figure 1. Sample Timeline for Building Electrification Policies *This is a sample timeline and does not reflect adopted or council-approved policies.
2.0 BACKGROUND
2.1 WHY ELECTRIFY?
Electrification is the process of transitioning from gas-powered appliances to more efficient all-electric alternatives. Electrification is beneficial because of the inherent reduction in greenhouse gas emissions, improved electrical grid resiliency, and reduced indoor air pollution.
5 HEALTH: IMPACTS, INEQUITY AND RELIEF
Burning natural gas for heating and cooking indoors can release dangerous levels of air pollutants like ozone, nitrogen dioxide (NO2), carbon monoxide (CO), and small particulate matter (PM5, PM10, or PM25), particularly if the space is not well ventilated.
Recent studies have found that gas stoves can increase indoor concentrations of NO2 by 50%-400%. These pollutants are linked to significant respiratory, cardiovascular, and developmental health impacts, especially in at-risk populations such as children, the elderly, or those with asthma. By removing gas appliances from indoor areas, these health impacts can be minimized.
Figure 2.0 All-Electric Home
SAFETY
Natural gas, and the infrastructure needed to transport and deliver it to homes, places communities and households at avoidable risk of injury, fire, and property damage when reliable and safer electric options are available. Natural gas appliances like stoves, ovens, water heaters, space heaters, and central heat systems can also cause fires and explosions.
6 CLIMATE CHANGE
Residents of Santa Monica are feeling the impacts of a rapidly changing climate.
With 30% of Santa Monica’s GHG emissions coming from burning fossil fuels in buildings, it is important to be aware of the underlying fossil fuel infrastructure that is also contributing to climate change. Pipelines that transport methane gas used as fuel in our buildings are known to leak; with 2.5% or more of gas leaking while in transport between extraction to the gas meters at the point of the end user. Methane (the chemical form of natural gas) is a potent greenhouse gas that has 86 times the warming power of CO2. Electrifying existing buildings will accelerate the decommissioning of gas infrastructure that is contributing to climate change.
2.2 ELECTRIFICATION TECHNOLOGIES
Currently, more than 70% of single-family and small multifamily buildings in Santa Monica use natural gas as their primary fuel type. The predominant uses of natural gas are space heating, water heating, cooking and clothes-drying. Water heating and space heating account for approximately 38% of total greenhouse gas emissions from buildings. There are now all-electric appliance alternatives for each of these uses available today.
Electric alternatives are typically much more energy efficient than their gas counterparts. As renewable energy becomes increasingly abundant, transitioning to electric appliances ensures that buildings are operating using clean energy. Coupling building electrification with efficiency upgrades like weatherization improvements can reduce indoor air pollution, maximize comfort, and reduce energy usage. The following are common building electrification technologies that can replace natural gas-powered counterparts.
HEAT PUMPS
Heat pumps use electricity to circulate heat from outdoor air, water or the ground into an indoor space. The process uses the same technology as refrigerators (refrigerators use refrigerants that absorb and release heat), but the process can be reversed to heat spaces instead of cooling them. Heat pumps are 2-3x more efficient than their gas appliance counterparts. Heat Pump technology can be used for water heating, HVAC & clothes-drying.
7 d
INDUCTION/ELECTRIC COOKING
Gas ranges and stovetops can be replaced by either induction stoves, or by traditional electric ranges. Induction stoves use an electromagnetic field below the surface of the cooktop to heat metal pots and pans while electric ranges use metal coils to transfer heat to cookware. Induction stoves are safer, and provide improved performance compared to their gas counterparts.
OTHER TECHNOLOGIES
• Energy Efficiency Upgrades
• On-site Solar PV & battery
• Smart Controls
2.3 BARRIERS TO ELECTRIFICATION
Although there are significant market and regulatory barriers preventing widespread adoption of building electrification, equity barriers such as the landlordtenant split incentive and high upfront costs present the greatest barrier. • Landlord-Tenant Split Incentive - The split incentive problem describes divergent interests and benefits for landlords vs. tenants. For example, if tenants push for an energy retrofit or electrification upgrade, landlords usually bear the upfront cost of installation, while benefits such as decreased utility bills favor the tenants. This is especially problematic in a community like Santa Monica, which is 75% renter occupied.
• Upfront Costs - Although both costs of equipment and installation are on the decline, electrification retrofits are expensive. This is a major barrier to lowincome residents who do not have the capital to afford upfront costs. 29% of Santa Monica households fall below 60% AMI and many of these households already face significant energy burden. Reducing these upfront costs provides an opportunity to electrify equitably.
Click here for more information on the technology and benefits of electrification.
3.0 EQUITABLE COMMUNITY ENGAGEMENT
Transitioning existing buildings to all-electric offers an opportunity to address economic and health inequities and is therefore consistent with Santa Monica’s 8 commitment to overcoming and correcting racial inequities. Santa Monica’s existing building electrification strategy must be rooted in equity and access. Building electrification efforts must directly address systemic inequities seen in the building sector.
Low-income, marginalized communities are in areas that face disproportionate burdens of air pollution, extreme heat and other environmental problems. ‘ As the most impacted stakeholders, these communities must be engaged early on to help create and shape electrification policies. The Office of Sustainability and the Environment has begun this process, working closely with three key organizations to cooperatively develop strategies and goals for building electrification in Santa Monica. With the help of these organizations, the City will be able to carry out a public community engagement process to ensure that disadvantaged community members codevelop electrification policies and programs. • Santa Monica Black Lives Association (SMBLA)
• Community Corporation of Santa Monica (CCSM)
• Climate Action Santa Monica (CASM)
Figure 3. The Spectrum of Community Engagement to Ownership (Image credit: Facilitating Power)
9 The Spectrum of Community Engagement to Ownership (Figure 3) provides an important framework for engaging the Santa Monica community when developing existing building electrification policies & programs. It will be increasingly important to collaborate with and defer to a diverse set of Santa Monica community members as the City approaches building electrification goals outlined in this roadmap.
Through an iterative process working with the above organizations, the following equity and funding principles have been Identified:
Prioritize access to health and safety benefits provided by electrification • Ensure that marginalized and low-income communities are prioritized to receive benefits like improved indoor air quality and comfort from electrification
Support anti-displacement & housing affordability
• Work across City departments to develop tenant protection policies that eliminate the risk of displacement in response to building electrification projects • Educate property owners and renters about the benefits of electrification, and empower them to pursue electrification retrofits
•
Provide funding and financing
• Maximize incentives for marginalized communities to ensure equitable access to affordable funding mechanisms
• Work with Federal, State and Regional program providers to stack electrification funding options, especially for marginalized communities Support electrification jobs
• Work with industry groups, non-profits and schools to develop workforce training programs
Simplify installation process
• Streamline permitting process to decrease complexity for residents • Develop technical assistance program(s) to support all stages of electrification projects
Click here for more information on the City’s Equity & Stakeholder Engagement process. 10 4.0 BUILDING STOCK ANALYSIS
This roadmap includes an analysis of the City’s existing building stock, based on data from the E3 2019 California Residential Building Electrification Study. The breakdown of Santa Monica’s buildings in table 3.0 highlight the challenges of the City’s existing building stock for electrification.
• Many buildings in Santa Monica are built before 1978 and may require electric panel upgrades (due to limited panel capacity) to electrify:
o 78% of residential buildings in Santa Monica were built before 1978 o 72% of Single-Family homes were built before 1978
o 93% of multifamily homes were built before 1978
• Most residents are renters in multifamily homes. Multifamily homes present a challenge due to split incentives (section 2.3) between tenants and landlords. o 71% of all residential buildings in Santa Monica are renter-occupied o 84% of multifamily buildings are renter occupied.
Table 2. Key Statistics on Santa Monica’s Building Stock Key Statistics Single-family Multi-family Total
Number of buildings 9,081 (69%) 4,053 (31%) 13,138
Number of households 11,592 (26%)
32,068
(73%) 44,142
% of houses built before 1978 72% 93% 78%
% of units renter occupied 30% 84% 71%
% of households with A/C 55% 42% 46%
% of population in disadvantaged community - - 7%
% of total roofs viable for solar - - 81%
% of households in 0-100% AMI 30% 46% 42%
% of households in 0-30% AMI 9% 18% 16%
Area Median Income (AMI) $77,300
Avg. energy burden of households in 0-30% AMI 18% 5% 7% Many older buildings built before 1978 in Santa Monica likely have the following problems that will make electrification more costly:
• Poor envelope insulation/sealing
• Leaky HVAC ducts
• Lower capacity electric panels
• Knob-and-tube wiring
• Asbestos
11 The building stock analysis reveals that that there are complex challenges involving residential electrification in Santa Monica. With these challenges, a variety of creative tactics and policies will be needed to make residential electrification feasible.
5.0 COST ANALYSIS
The City also used the E3 2019 California Residential Building Electrification Study to input data into a cost model that tests assumptions about the costs of residential electrification in Santa Monica’s climate zone (CZ6). The cost model showed that over a span of 30 years, residential building electrification has potential to be the more costeffective option between gas and electric. Improved efficiency brought by new electric appliances can generate savings on annual utility bills. Over time, these utility bill savings were found to cover the incremental capital cost of switching from gas to electric appliances in all electrification scenarios.
There are many factors that will continue to improve the economic viability of residential electrification projects in the future:
• Gas utility rates - Gas utility rates are projected to increase 22% between 2020 and 2030. These price increases are factored into the above model. • Capital cost reductions - Installation and product costs of electric appliances such as heat pumps and solar PV systems are expected to decrease in the future. Increased workforce availability also has potential to reduce the demand for currently-limited trained workers and therefore reduce installed costs.
• Electric rate tariffs - Electrification may provide higher utility bill savings to customers who take advantage of time of use rates and utilize demand management software.
• On-site Solar - Rooftop or other onsite solar provides additional benefits to electrification by adding resiliency and removing electrical utility costs.
Click here to learn more about Santa Monica’s existing building stock and costs of electrifying.
6.0 POLICY OPTIONS
A Phased Policy Approach
12 Modeled after other cities (such as Berkeley and San Jose) that have adopted building electrification strategies for existing buildings, Santa Monica plans to use a 3- phased approach to develop and implement building performance standards and electrification programs and policies.
The policies highlighted below are not yet adopted. This is a roadmap that outlines policy options that will be discussed in stakeholder workshops and commission meetings before any policies are presented to city council for adoption.
Table 3. Phases of Building Electrification
Phase 1
Phase 1 actions lay the foundation for implementation of future policies. In order to support the rate of
electrification needed to achieve goals outlined in this roadmap, the City will work with a range of stakeholders to expand equitable funding, develop technical
assistance programs to improve accessibility, ensure
workforce availability, design electrification pilot
projects, collaborate on regional and state policies, and continue to analyze equity impacts and costeffectiveness.
Phase 2
Phase 2 marks the beginning of implementation for core
policies outlined above. A strategic and communitydriven approach will determine the most viable policy options for the City. Phase 2 may include building
performance standards, benchmarking policies, and
energy efficiency standards.
Phase 3 Phase 3 may include time of replacement or upgrade requirements.
Table 4. Policy Options to Reduce Emissions and Electrify Existing Buildings Policy Description Timeline Phase
Building Performance
Standards
Establishes targets for
buildings to electrify or
reduce GHG emissions by
certain dates.
2024
2 Minimum Efficiency
Standards for Rentals
Requires property owners
to meet minimum
efficiency standard before
2028 or later
2- 3
13 renewal of rental license.
Time of Sale Require prescriptive
upgrades at time of sale for
a property.
2028 or later
2- 3
Time of Replacement
at Major renovation
Prescriptive requirements
for allowable electric
building systems at the
time of major renovation of
a building.
2030 or later
2- 3
Appliance Emissions
Standards
Establishes rules limiting
the GHG emissions from a
certain appliance.
50% reduction
by 2037 (TBD) 3
7.0 A CALL TO ACTION
What Santa Monica Residents can do right now
There are many short-term actions that residents can do to be part of the solution.
Table 5. Actions you can take to Electrify
Apply for an Electrify Santa
Monica appliance rebate
If you are planning on switching out a gas appliance
in your home for a more efficient all-electric one, fill out an application to receive an Electrify Santa
Monica appliance rebate.
Work with a TECH Clean
California contractor
Find a TECH certified contractor through the Switch
is On to get a discount on your next heat pump
installation.
Explore additional
funding/financing opportunities.
Visit SantaMonica.gov to discover more
funding/financing opportunities.
Understand where your energy
comes from
If you live in Santa Monica and have not made any
changes to your utility bill, you are already enrolled in in the Clean Power Alliance, California’s largest
Community Choice Aggregator, which supplies 100%
clean electricity.
Learn what types of energy heat
your home, water & stove.
Energy awareness can help you make lifestyle
choices that can save money and reduce pollution in
14 your home and the environment. E.g. washing your
clothes in cold water, hang drying your clothes,
turning off your lights, keeping your thermostat low…
Take advantage of CPA’s time of
use rates
Time of use rates offer lower rates during “off-peak
hours” and higher rates during “peak” hours. Use less
energy doing “peak” hours and save money on your
next utility bill. Just remember this simple rule: If you can, use energy when the sun is shining bright! It will help you save money and be good for the planet.
Ventilate your kitchen while
cooking
If you cook with a gas stove, make sure to turn on the
fan while cooking or open windows to reduce indoor
air pollution. If you want to know more about your
indoor air quality, you can purchase a device that
monitors indoor air quality. If the flames in your stove are burning orange, rather than blue, your stove is
creating more pollution than necessary & it’s time for
a tune up!
Weatherize your home Make future electrification upgrades more effective by adding insulation and sealing air leaks. You can
save 5-15% on your energy and heating bills by
weatherizing your home.
Improve your indoor air quality Ask a contractor about adding air filters to your existing gas systems to reduce indoor air pollution.
Adjust the temperature on your
water heater
Water heating in Southern California could be your
largest energy expense. Turn down the temperature
on your water heater to save on gas bills.
Check out SoCalREN for more
electrification resources
SoCalREN offers incentives on efficiency upgrades
for multifamily buildings and has resources and
information for building owners and renters.
Visit SwitchisOn.org Learn more about the benefits of electrifying by visiting the Switch is On website. Find contractors
and rebates in your area to make your next energy
upgrade easier.
Complete our survey on
electrification
Have you made the switch to electrify your car or
appliance(s) in your home? Sharing your story can
help us improve the experience for you and others
who continue to electrify their lives moving forward.
15 Interested in learning more? Check out the roadmap briefs below:
• Electrification Benefits & Technology
• Electrification Equity & Stakeholder Engagement
• Santa Monica’s Existing Building Stock + Electrification Cost Analysis