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2020-10-27 Item 13
CITY COUNCILAGENDA REPORT/•^h;ssR^CITY OF MILLBRAE621 Magnolia AvenueMillbrae, CA 94030SUBJECT:Adoption of Amendments to the Energy Code of theMillbrae Municipal Code for Title 24 Part 6 EnergyCode and Part 11 Green Building Code to AdoptLocal Reach Codes to Reduce Greenhouse GasEmissionsATTACHMENTS:1. Ordinance2. 2019 Cost Effectiveness Study: Low-RiseResidential Construction3. 2019 Non-Residential New ConstructionReach Code Cost Effectiveness Study4. Bay Area Exceptions Chart5. Peninsula Clean Energy (PCE) FAQReport No.(<»SSSAgenda Item: t"2>For Agenda of: October 27, 2020Department:Public Works & CommunityDevelopment DepartmentsOriginator:Jane Kao and Khee LimApproved:^cBudget Action: D YesNoFinance Review: N/AREPORT TYPE: S ACTION D INFORMATIONALITEM TYPE: D CONSENT D PUBLIC HEARING D EXISTING BUSINESS B NEW BUSINESSRECOMMENDATION:Staff recommends that the City Council introduce, waive the first reading, and set a public hearing toconsider an ordinance to adopt amendments to the Energy Code of the Millbrae Municipal Code for Title24 Part 6 Energy Code and Part 11 Green Building Code to adopt local Reach Codes to reduce greenhousegas emissions.BACKGROUND:At the February 25, 2020 City Council meeting, staff presented a report on the draft Climate Action Plan(CAP) and provided an update on June 23, 2020 on added measures, outreach, workshops, andcomments received. The most frequent comments received at the February 25, 2020 meeting, includingfrom some City Councilmembers, recommended making more of the measures mandatory—specifically,adopting Reach Codes. Which go beyond the Energy Code and CalGreen Building Code to includebuilding electrification, solar installation, and electric vehicle (EV) charging station infrastructure fornew developments. There is already an existing requirement for solar for new residential developmentsfor single family, low density residential, and subdivisions in the Building Code from previous EnergyCode updates.Page 1 of 1016963981.1 Peninsula Clean Energy (PCE) developed model Reach Codes for agencies to consider adopting, whichencourage building electrification, solar installation, and EV infrastructure readiness for newdevelopments. The model reach codes are based on cost-effectiveness studies prepared by the CaliforniaStatewide Codes and Standards Program and TRC, a consultant to PCE. In 2019, the City received$10,000 from PCE to explore implementing Reach Codes.Building electrification means that buildings use only electric appliances for space heating, waterheating, clothes drying, and cooking. Electrification Reach Codes help to reduce carbon emissionsassociated with new construction, reduce costs in new construction, improve indoor air quality andsafety of buildings, support affordable housing, and increase adoption of electric vehicles. Transitioningto electric appliances is an effective way to reduce greenhouse gases (GHGs), especially in San MateoCounty where PCE is on the path to provide electricity sourced from 100% renewable and carbon freesources by 2021. More than 80% of a building's energy use relates to heating/cooling space and heatingwater. Natural gas is a fossil fuel that is typically used for heating space and water for buildingoccupants. Natural gas usage in buildings is one of the largest sources ofGHG emissions accounting forapproximately 40% of all carbon emissions. Switching to a heat pump water heater can reducehousehold GHG emissions by up to 70% annually, and switching from a gas furnace to a high-efficiencyair-source heat pump can reduce household GHG emissions by up to 54% annually . Reducing oreliminating natural gas usage in the building sector is an important component of climate mitigation toachieve the State's goal of Carbon Neutrality by 2045. Senate Bill 100 requires a 100% clean electricgrid by 2045.Building electrification has also been shown to have positive effects on air quality, safety, resiliency,and more2. Burning gas, propane, and wood in buildings creates harmful indoor air pollution that hasbeen linked to increased risk of respiratory disease and negative effects on people with existingrespiratory conditions3. Natural gas use can be a safety issue, causing significant leaks and explosions,such as in San Bruno in 2010 and San Francisco in 20192. Natural gas is also a risk factor duringearthquakes, responsible for 20-50% of post-earthquake fire ignitions4. All-electric buildings are alsoconsidered resilient. Gas lines and leaks can be dangerous during fires, and typically take longer torestore after a safety shutoff or inspection and repair, compared to electricity2. All-electric appliancescan also be set up to be used with a backup power source like a generator or solar-powered batteries, ifneeded during a disaster .Three types of building electrification ordinances have been adopted by various jurisdictions:Natural gas ban which prohibits gas hookups (City of Berkeley)• All-electric building required with exceptions (City of Menlo Park, and with fewer exceptions bythe County of San Mateo)All-electric building preferred with mixed-fuel option (City of San Mateo)' Natural Resources Defense Council, Expert Blog: "Electric Heat Pumps Can Slash Emissions in CaliforniaHomes." Delforge, Pierre and Anna Brockvvay. November 16, 2018. https://www.nrdc.org/experts/pierre-delforge/electric-heat-DumDS-can-slash-emissions-california-homes2 Building Decarbonization Coalition, Natural Resources Defense Council, and Sierra Club. "BuildingElectrification Talking Points for Advocates and Local Government Staff." 2019.http ://www.buildm£decarb.or£/uploads/3/0/7/3/30734489/zeb talking points for local eovernments 10-2019.0df3 Logue, Jennifer M., et al. "Pollutant Exposures from Natural Gas Cooking Burners: A Simulation-BasedAssessment for Southern California", Environmental Health Perspectives, January 1, 2014.4 California Seismic Safety Commission. "Improving Natural Gas Safety in Earthquakes". July 11, 2002.Page 2 of 1016963981.1 The County of San Mateo and seven jurisdictions in San Mateo County have adopted Reach Codes,including Brisbane, Burlingame, East Palo Alto, Menlo Park, Pacifica, Redwood City and San Mateo.Approximately four jurisdictions in the County are in progress of pursuing Reach Codes (Daly City,Hillsborough, San Bruno and San Carlos), and some of the remaining cities are considering them. Mostcities have adopted the "Menlo Park model" due to its ease of administration and efficiency. ReachCodes are also being adopted in Santa Clara County with 11 jurisdictions adopting them to date.The City ofMenlo Park, using PCE's model template as a base, adopted a hybrid approach that requiresresidential projects to build all-electric for space heating, water heating, and clothes dryers, and allowsfor natural gas to be used for stoves, fireplaces, and other appliances. Prewiring for electric appliances isrequired where natural gas appliances are used. They require non-residential projects to build all-electricbuildings that use electricity as the source of energy for all appliances, including for heating/coolingappliances, cooking appliances, fireplaces, and clothes dryers. Restaurants and food service businessescan appeal to use gas cooking appliances.On September 17, 2020, the City Council Infrastructure Subcommittee met to discuss Reach Codes.There was a discussion on PCE's model Reach Code templates for building electrification and solarinstallation for residential and non-residential buildings, and on Menlo Park's and the County of SanMateo's adapted Reach Codes. Based upon the Infrastructure Subcommittee input and further researchand discussion with PCE, adapted Reach Code provisions based on these various models were includedin the final version of the Ordinance being presented to the Council at this time. As mentioned, thedifferent cities' Reach Codes are all based on PCE's model templates.The City Council Infrastructure Subcommittee also discussed how existing buildings would addressGHG emissions reductions. The CAP contains a variety of measures to reduce GHGs from existingbuildings that complement the Reach Codes, which apply to new building developments. Thesemeasures include: continuing to adopt the latest CalGreen Building Codes; a Residential andCommercial Energy Conservation Program to initially encourage minimum energy efficiency and waterefficiency standards at the time of building sale and transitioning to mandatory residential energyconservation ordinance; a Residential Energy Retrofit Incentives and Rebates Program; a CommercialEnergy Efficiency Program; an Electrical Panel Upgrades Program to leverage incentives; SolarInstallations Promotion Programs such as the SunShares Program; a Pairing Battery Storage with SolarPhotovoltaic (PV) Systems Program; continuing participation in Peninsula Clean Energy; and a TreePlanting Program.ANALYSIS:Local governments are required by law to adopt new changes to the California Building Standards Codeevery three years (known as code cycles) proposed by the State. The next code cycle will take effectJanuary 1, 2022. During this cycle, or independently of it, optional local building code amendments(known as Reach Codes) can be adopted that exceed state code standards to meet local environmentalgoals.Meeting the City's CAP greenhouse gas emissions reduction targets requires looking at all sources ofemissions, including those from new building developments and transportation, and meeting thereductions through Reach Codes, along with reductions from other measures as included in the CAP.Implementing building electrification, solar installation, and electric vehicle infrastructure for newdevelopments will enable the City to reduce GHG emissions by 3,111 metric tons of carbon dioxideequivalent (expressed in CAP as MTC02e). This will help the City to meet the CAP GHG emissionsPage 3 of 1016963981.1 reduction targets of reducing community-wide GHG emissions 49% by 2030, a total reduction of 92,025MTC02e, help towards achieving the State's goal of Carbon Neutrality by 2045, and move towardsmeeting Senate Bill 100's requirement of a 100% clean electric grid by 2045.ProBosed Building Electrificatio_n and Solar Installation RequirementsStaff outlined the various approaches for the Reach Codes based on PCE's model template at previousCity Council meetings and recommend the "Menlo Park Model" as being the most efficient andeffective for Millbrae for building electrification. The proposed Ordinance provides as follows:New single-family homes and low-rise multifamily buildings are required to use electric forspace heating, water heating, and clothes dryers. It provides an exception for the use of naturalgas for indoor and outdoor non-electric cooking appliances and fireplaces.New high-rise residential are required to be built all-electric for space heating, water heating,cooking appliances, fireplaces and clothes dryers.New non-residential buildings are required to be built all-electric for space heating, waterheating, cooking appliances, fireplaces and clothes dryers; however, restaurants and foodservices can appeal for gas cooking appliances.All new buildings must be built to be electric-ready if they are allowed to use natural gasappliances through an exceptions or appeal.For solar systems for high density residential and non-residential, including hotel/motel buildings, theproposed Ordinance requires:A solar photovoltaic system equivalent in size to 50 percent of the roof area, excluding anyskylight area, to be installed on the roof or overhang of the building, or on the roof or overhangof another structure located within 250 feet of the building, or on covered parking installed withthe building project.Table 1 below outlines the building and solar installation requirements and exceptions.Page 4 of 1016963981.1 BINwtiSsw^iNB"il!:,.'i,R;lf: i9^^^^^Table 1: Proposed Energy Code Amendments - Building Electrification »& Solar Photovoltaic (PV) SystemsAll electric building requiredfor space heating, waterheating, and clothes dryers.All electric building requiredfor space heating, waterheating, and clothes dryers.Single Familyand AccessoryDwelling UnitsLow-densityResidential(three storiesor lessmultifamily)• All electric building requiredthat uses electricity as thesource of energy for allappliances, including but notlimited to space heating, waterheating, cooking appliances,fireplaces and clothes dryers.Solar:Solar:•High-densityResidential(high-risemultifamilybuildings -four storiesand greater)Install on-site solar equivalentin size to 50 percent of the roofarea on the roof or overhang,or another structure locatedwithin 250 feet, or on coveredparking within the project.Natural gas can still be used for stoves, fireplacesor other appliances if desired.Prewiring for electric appliances is requiredwhere n'atural gas appliances are used.Natural gas can still be used for stoves, fireplacesor other appliances if desired.Projects that have received entitlements within 1year prior to the ordinance effective date caninstall gas water heating.Prewiring for electric appliances is requiredwhere natural gas appliances are used.Projects that have received entitlements within 1year prior to the ordinance effective date caninstall gas water heating.A modification may be granted if demonstratedthat the required percentage of PV installationwill over-generate the annual kWh required tooperate the proposed building.The PV system size may be reduced in size to themaximum that can be accommodated by theeffective annual solar access due to shading fromexisting permanent natural or manmade barriersexternal to the building, including trees, hills, andadjacent structures. The effective annual solaraccess must be 70 percent or greater of theoutput of an unshaded PV array on an annualbasis. No PV system is required if the effectiveannual solar access is restricted to less than 200contiguous square feet. If the applicantdemonstrates that conditions exist whereexcessive shading occurs, a performanceequivalency approved by the Building Officialmay be used as an alternative.If there is a vegetative roof which meets allrelevant code requirements includingconsiderations for wind, fire, and structuralloads, the solar photovoltaic system may be ]reduced in size that 50% of the roof is covered in jeither photovoltaics or vegetative roof.Table 1 continued on page 6.*Additional Exception for All Building Types:// the applicant establishes that there is not an all-electric prescriptive compliance pathway for the building under the EnergyCode, and that the building is not able to achieve the performance compliance standard applicable to the building under theEnergy Code using commercially available technology and an approved calculation method, then the CommunityDevelopment Director or his/her designee may grant a modification. If the Building Official grants a modification pursuantto this Exception, the applicant must comply with the pre-wiring provision.Page 5 of 1016963981.1 Table 1: Proposed Energy Code Amendments - Building Electrification & Solar PV Systems (cont.)•BilB^B©fll>jte:E|||!rgy tt<i|Kjj"Jjjj|'^||||ig,lut)S||:||»n :fpr,:i;8wB|f'N-i'lE'lhiilStl'Uctiihll.il^lN—w9SSS}s1^All electric buildingrequired that useselectricity as the sourceof energy for allappliances, including butnot limited to spaceheating, water heating,fireplaces and clothesdryers.•Solar:Non-residentialBuildingsInstall on-site solarequivalent in size to 50%of the roof area on theroof or overhang, oranother structure locatedwithin 250 feet, or oncovered parking withinthe project.SolanLife science buildings may use natural gas for spaceheating if desired.Public agency owned and operated emergencyoperations centers (e.g. fire and police stations) mayuse natural gas.Non-residential kitchens (e.g. for-profit restaurantsand cafeterias) may appeal under certain conditions touse natural gas stoves.For all exceptions, natural gas appliance locationsmust be electrically pre-wired for future electricappliance installation.A modification may be granted if demonstrated thatthe required percentage of PV installation will over-generate the annual kWh required to operate theproposed building.The PV system size may be reduced in size to themaximum that can be accommodated by the effectiveannual solar access due to shading from existingpermanent natural or manmade barriers external tothe building, including trees, hills, and adjacentstructures. The effective annual solar access must be70 percent or greater of the output of an unshaded PVarray on an annual basis. No PV system is required ifthe effective annual solar access is restricted to lessthan 200 contiguous square feet. If the applicantdemonstrates that conditions exist where excessiveshading occurs, a performance equivalency approvedby the Building Official may be used as an alternative.If there is a vegetative roof which meets all relevantcode requirements including considerations for wind,fire, and structural loads, the solar photovoltaicsystem may be reduced in size that 50% of the roof iscovered in either photovoltaics or vegetative roof.*Additional Exception for All Building Types:If the applicant establishes that there is not an all-electric prescriptive compliance pathway for the building under the EnergyCode, and that the building is not able to achieve the performance compliance standard applicable to the building under theEnergy Code using commercially available technology and an approved calculation method, then the CommunityDevelopment Director or his/her designee may grant a modification. If the Building Official grants a modification pursuantto this Exception, the applicant must comply with the pre-wiring provision.The exemption for life sciences laboratories is due to these types of buildings containing vulnerable labexperiments, which depend on temperature-controlled rooms. While Millbrae does not currently havelife science laboratories, it is included as a consideration for future developments. These buildingswould be exempt only for space heating and require water heating appliances to be electric.•Page 6 of 1016963981.1 Building Costs and Affordable Housing ConsiderationsThe Statewide Cost Effectiveness Studies act as tools for communities to select different Reach Codeoptions ranging from increased energy efficiency to all-electric requirements. The studies demonstratethe estimated cost savings between new all-electric and natural gas buildings. It costs approximately$5,349 less to build all-electric single family and multifamily buildings of three stories or less than itdoes to build mixed-fuel. Another report found that building new, all-electric, single-family homes saves$1,500-$6,000 in construction costs, and $200-$500 annually in utility bills5.Building Standards CodeThe California Health and Safety Code enables local communities to modify the CaliforniaBuilding Standards Code and adopt different or more restrictive requirements with the caveatthat:The local modifications must be substantially equivalent to or more stringent than the buildingstandards published by the California Building Standards Code; andThe local jurisdiction is required to make specific or express findings that such changes arereasonably necessary because of local geological, climatic, or topographic conditions.These findings are included in the Ordinance in Section 5. If Reach Codes involve energy requirements,cities/counties need to file an application to the CEC to prove that any local amendments related to theenergy code are cost effective and save more energy than those required by the state. This is donethrough submitting a cost effectiveness study to the CEC, which was provided by PCE (Attachments 2and 3). This process takes 30-60 days to gain approval. A cost-effectiveness study is not required foramendments to the Green Building Code (Title 24, Part 1 1).Electric Vehicle fEV) InfrastructureThe Green Building code amendments for consideration would require additional EV charginginfrastructure for the construction of new buildings. PCE and their consultants have recommended thatjurisdictions require 2 EV spaces for single family dwellings, 100% charging access for multifamilydwelling units, and higher percentages of spaces for commercial and office parking lots, which is alsobeing proposed for adoption by the City Council. These requirements would enable more people topurchase, drive, and charge electric vehicles.EV charging requirements in California generally reflect these three categories:EV Charging Station (EVCS): All supply equipment is installed at a parking space, such that anEV can charge without additional equipment.EV Ready Space: Parking space is provided with all power supply and associated outlet, suchthat a charging station can be plugged in and a vehicle can charge.EV Capable: Conduit is installed to parking space, and building electrical system has amplecapacity to serve future load. An electrician would be required to complete the circuit beforecharging is possible.EV charging capacity and speed reflect these three categories:• Level 1: Capable of charging at 120V, 20A. This is an equivalent to a standard home outlet.Level 2: Capable of charging at 240V, 30-40A. This is the service capacity typically used forlarger appliance loads in homes.5 Synapse Energy Economics, "Decarbonization of Heating Energy Use in California Buildings",October 2018.Page 7 of 1016963981.1 " L e v e l 3 ( D C F a s t C h a r g i n g ) : C a p a b l e o f c h a r g i n g a t 2 0 - 4 0 0 k W . T h i s i s t h e t y p e o f c h a r g e r u s e d f o r T e s l a S u p e r c h a r g e r s a n d D C F a s t C h a r g e r s a t s o m e s u p e r m a r k e t s a n d o t h e r l o c a t i o n s . T h e 2 0 1 9 C a l i f o r n i a G r e e n B u i l d i n g C o d e U p d a t e ( T i t l e 2 4 , P a r t 1 1 ) i n c r e a s e d r e q u i r e m e n t s f o r e l e c t r i c v e h i c l e c h a r g i n g i n f r a s t r u c t u r e i n n e w c o n s t r u c t i o n ; i n c l u d i n g : N e w o n e - a n d t w o - f a m i l y d w e l l i n g s a n d t o w n h o u s e s w i t h a t t a c h e d p r i v a t e g a r a g e s : m u s t b e L e v e l 2 E V - c a p a b l e . M u l t i - f a m i l y d w e l l i n g s : 1 0 % o f p a r k i n g s p a c e s m u s t b e L e v e l 2 E V - c a p a b l e . N o n - r e s i d e n t i a l : 6 % o f p a r k i n g s p a c e s m u s t b e L e v e l 2 E V - c a p a b l e . T h e p r o p o s e d E l e c t r i c a l V e h i c l e I n f r a s t r u c t u r e R e a c h C o d e w o u l d a m e n d t h e s e r e g u l a t i o n s a s f o l l o w s : " N e w o n e - a n d t w o - f a m i l y d w e l l i n g s , t o w n - h o u s e s , a n d A c c e s s o r y D w e l l i n g U n i t s w i t h a t t a c h e d p r i v a t e g a r a g e s a r e r e q u i r e d t o i n s t a l l o n e L e v e l 2 E V R e a d y S p a c e a n d a L e v e l 1 E V R e a d y S p a c e f o r e a c h d w e l l i n g u n i t . M u l t i f a m i l y b u i l d i n g s w i t h l e s s t h a n o r e q u a l t o '