2022 Building electrification & ev reach codesCity Council Study SessionCity of South San Francisco DATE: October 26, 2022
SPEAKERS: ID360 & PCE
Recommendations
Receive a presentation regarding the 2022 building electrification and energy efficiency reach code options available for local adoption; and Receive an update on the additional outreach staff conducted to the business and development community regarding a potential building electrification reach code for new nonresidential construction; and Provide direction to staff on the preferred reach code approach for new residential and non-residential construction so staff may proceed with developing the proposed ordinance for new residential and new nonresidential buildings; and Provide direction to staff on the type of EV reach code to adopt for the 2022 code cycle. 2 Why Building Electrification?
Offers financial, health, and environmental benefits.
Better for indoor air quality
Electric appliances are more efficient than gas counterparts (saves money) Electric appliances can be powered by clean energy (carbon-free/renewable) 3 Climate Action Initiatives
Committed to Sustainability
In October 2022, Council passed an update to the Climate Action Plan (CAP).
The CAP sets bold targets and strategies for reducing GHG emissions while increasing resilience.
Two main approaches to reduce emissions in buildings: electrification and improving energy efficiency.
First local reach codes requiring new residential all-electric construction and increased EV charging adopted in 2021.
Joined Peninsula Clean Energy (PCE) to give the community cleaner energy and renewable sources options.
Committed to reducing greenhouse gas (GHG) emissions, protecting community resources, and resiliency. 4 National & Statewide Context
EO 14008: President Biden called for “government-wide approach to climate change” Inflation Reduction Act: Federal rebates and tax credits for decarbonization efforts EO B-30-15: Gov. Brown issued to reduce emissions 40% below 1990 levels by 2030 EO B-55-18: Gov. Brown set statewide goal for carbon neutrality by 2045 EO N-79-20: Gov. Newsom required 100% in-state sales of new passenger cars/trucks to be zero-emission by 2035 CA Climate Commitment: Gov. Newsom signed climate legislation and plan to invest $54 billion to fight climate change SIP Strategy: CARB voted to ban sale of new gas furnaces + water heaters by 2030 CPUC Decision 19-01-011: CPUC voted to eliminate subsidies that incentivize gas lines to new buildings starting July 1, 2023 5 Background
Statewide Code updated every three years.
New commercial requires Solar PV, Battery, and expanded EV infrastructure.
New residential requires electric-readiness and expanded EV infrastructure.
Reach Code is a voluntary code that “reaches” beyond baseline requirements Reach codes could impact new construction and/or existing buildings. 6 Equipment
Space Heating
Water Heating
Cooking
Clothes Drying
Source: BayAreaReachCodes.Org
7 Reach Code Process: Development to Implementation
Staff meetings to discuss priorities and parameters
Cost effectiveness study (state)
Develop the reach code ordinance after 7/1 code release Public engagement meetings
Study session and bring reach code to council
Submit reach code for state agency approval, file with BSC Additional time for CEC approval (2-4 months)
Technical information & analyses
Local stakeholder input & public process
8 Effective date 30 days after adoption
Ordinance Pathways: New Construction
Efficiency
Electric-Preferred
Electric Only
Electric Only
Electric Only Plus Efficiency
Electric Only
Natural Gas Moratorium
Mechanism
Energy Code
Energy Code
CALGreen
Jurisdictional authority
Jurisdictional authority or CALGreen plus Energy Code
Requires
All new construction exceeds minimum energy code
Only mixed fuel buildings exceed minimum energy code
All new construction is electric only
No new gas infrastructure (Hookups or Piping)
All new construction is electric only AND exceeds minimum Considerations
Simplicity, preserves choice, specific measures
Preserves choice, lower GHG savings
Must be renewed
Longest lasting
Biggest impact, must be renewed
9 Building Electrification Reach Code ApproachesExisting Buildings 10 End of Flow Ordinance
Time of Sale Disclosure Ordinance
Burnout Ordinance
In-Lieu Fees
Mechanism
New construction ordinance (i.e., CALGreen) or Declaration New construction ordinance (i.e., CALGreen)
CALGreen
Building Code (i.e., CALGreen, Energy Code)
Requires
By a certain date, fuel gas lines are capped and/or decommissioned in existing buildings Requires disclosure of fossil fuel end uses at time of sale Replace gas counterparts at end of life or during changeout for remodel scope of works Requires owner to pay a fee to keep gas appliances installed Considerations
No-cost signaling policy, long-term planning, provides runway No-cost signaling policy, provides transparency
Electrifies building end uses, may have higher upfront cost for consumers Raise funds for decarbonization, offers choice for building owner
Potential Reach Code Exemptions
Emergency backup power
Swimming pools and spas
Water heating, cooking or space heating for ADU/JADU
MF residential building projects w/ entitlements may use fuel gas for water heating Fireplaces (indoor/outdoor)
Outdoor BBQs
Commercial cooking equipment
Specialized equipment for industrial processes, laboratories, medical uses Technical infeasibility
11 When combustion equipment is allowed, require electric ready.
EV Infrastructure: Terminology
Aggressive Leadership
12 Source: Bay Area Reach Codes Initiative
2022 CALGreen: Nonresidential EV Requirements
13 EV Reach Code Option: 2022 PCE Model Code New Nonresidential Construction 14 Stakeholder & Community Feedback
Phase in requirements or include a grace period for entitled projects.
Include specific exemptions for commercial cooking, labs, industrial.
Concern over power outages and reliability of electric grid.
Lead time is critical due to PG&E requests to bring power to a new area taking up to two years. 15 Large Developers
Stakeholder & Community Feedback
Existing businesses rely on natural gas for ovens, stovetops, water heaters.
Few businesses already use electric appliances and find them easy to use.
Hesitation to transition due to unfamiliarity with electric technology.
Increased EV requirements may increase parking demand.
Concerns about increasing panel capacity to meet EV requirements.
Willingness to transition if City provides incentives or rebates and C/E. 16 Local Business Owners
Discussion
Staff has examined the potential reach code pathways and conducted additional outreach to nonresidential stakeholders.
Staff seeks Council direction on the preferred reach code pathway and exemptions to include for drafting the ordinance. 17 Thank you.
SUPPLEMENTAL SLIDES
2022 California Energy Code: Highlights
New Residential
Heat pumps = prescriptive baseline
Residential: space heating or water heating
Performance credit for all-electric design
Pre-wiring required for gas appliances
Higher ventilation rate for gas stoves
Energy storage systems (ESS) ready
New Nonresidential
Heat pumps = prescriptive baseline
Nonresidential: water and/or space heating for most building types Performance credit for all-electric design
Solar PV prescriptive
Requirements based on building type
Battery Storage system prescriptive
Requirements based on building type
20 Adoption of Electrification Reach Codes
54 California Jurisdictions (as of 12/10/21)
Variety of policy approaches to reach codes:
All-Electric Only Whole Building
All-Electric Only Specific Systems
Electric-Preferred
Electric Vehicle Charging Infrastructure
21