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HomeMy WebLinkAboutStaff Report 4.E 07/01/2019L Agenda Item #4..Ers5$ DATE: July 1, 2019 TO: Honorable Mayor and Members of the City Council through City Manager Planning Commissioners FROM: Peggy Flynn, City Manager Heather Hines, Planning Manager Doug Hughes, Chief Building Official SUBJECT: Discuss and Provide Policy Direction on Potential Adoption of Reach Codes. RECOMMENDATION It is recommended the City Council discuss and provide policy direction on potential adoption of Reach Codes for possible later enactment. BACKGROUND The General Plan 2025 is the City's guiding vision document and one of the guiding principles included at the introduction to the document is to "foster a sustainable community in which today's needs do not compromise the ability of the community to meet its future needs. Enhance the built environment, encourage innovation in planning and design, and minimize environmental impacts through implementation of green development standards." Further reinforcing this commitment to sustainability, throughout the recent City goal -setting process there was a resounding focus, on climate protection and environmental stewardship. In keeping with the policy vision of the General Plan and the more recent goals discussion, staff continues to look for options to enhance existing programs and strengthen existing regulations related to sustainability and energy efficiency in the. built environment. Recent discussion has touched upon reach codes as a mechanism to ensure that Petaluma is implementing building regulations at a standard above the base state building code standards in an effort to ensure increasingly energy efficient construction. In California, Title 24 of the Code of Regulations sets the building code standards for all jurisdictions statewide. The Energy Code is Part 6 and the Green Building Code (aka CalGreen) is. Part 11 of Title 24. These two codes together regulate building energy efficiency and greenhouse gas emissions. Building features such as the thermal envelope, mechanical systems, and lighting are regulated. Each jurisdiction is required to adopt the newest Title 24 Building Standards Code as mandated by the state every three years, with the latest round of code revisions coming up for adoption in the fall of 2019. r While -the state establishes minimum code thresholds, -local governments can adopt more stringent requirements, known as "reach" codes that go above and beyond the thresholds of the state mandated Title 24. As part of the last code , update cycle in 2016, the City of Petaluma adopted a reach code in CalGreen. Tier 1 (minus energy code) as local regulation, reaching beyond the base CalGreen Title 24 requirements mandated by the state. The reach code approach was mirrored in of many other Sonoma County jurisdictions and was a recommended approach by the Redwood Empire Association of Code Officials. The primary reason -for. excluding the energy code was due to a large 15% increase in energy efficiency that was part of the mandatory 2016 update. Applying Tier 1 to the base energy code as part of that cycle would have resulted in approximately a 25% increase in efficiency requirements for new construction. Implementation of CalGreen Tier 1 at the local level requires all new buildings to be designed to achieve greenhouse gas reductions above those achieved by the base code standards. The~ - program includes both mandatory and voluntary construction goals allowing local jurisdictions to meet the CALGreen requirement. However, the Tier 1 adoption provides flexibility for how any one project achieves compliance- and enhanced resiliency. Sonoma Clean Power (SCP) is working closely with several Sonoma county jurisdictions to adopt an all -electric reach code in an effort to better address greenhouse gas emissions associated with energy production. As stated by SCP, although the state has legislation in place for energy efficiencies, the legislation has not yet translated to evaluating the building energy code based on its potential emissions. There are different types and a variety of implementation options for adopting a reach code. Generally, reach codes are either structured as prescriptive codes that require one or more specific energy efficiency measures (such as solar or all -electric) or performance codes which require a building to perform at a specified efficiency level but do not mandate what measures are required to get to that efficiency. Sometimes a jurisdiction may adopt a hybrid approach that incorporates elements of different reach codes to better suit the priorities of that community. (Attachment 1) In general terms, a reach code must be at least as stringent as the statewide code and must meet the following requirements: • A reach code must be cost effective - meaning that the money saved from the reduced energy costs needs to be enough to cover the initial cost within the standard lifetime of the additional energy efficiency measures. • A reach code requires a minimum of two public stakeholder meetings prior to adoption. • A reach code must be approved by the California Energy Commission. • A reach code needs to be re -approved every three years with each Energy Code -update. 2 In an ongoing effort to better understand options for ensuring that development occurs at the highest level of sustainability and energy efficiency many local governments in the Bay Area have adopted or are considering adoption of reach codes to go above the base state energy code requirements. There are different options that the Council may wish to consider in their discussion on the topic. CalGreen In January 2010 the California Building Standards Commission approved CalGreen, the country's first statewide voluntary green building code. CalGreen, was developed in 2007 to meet the goals of AB 32 which sought to reduce greenhouse gases to 1990 levels by 2020. CalGreen exists in concert with the latest edition of Title 24 and the last triennial edition of the codes was published in 2016 and became effective in January 2017. When Petaluma adopted the latest edition of Title 24 in 2016 the City also adopted CalGreen Tier 1 (minus energy) for all new construction. Adoption of Tier 1 reaches beyond the mandatory state requirements for new construction (both commercial and residential) and increases building resiliency. The CalGreen program also has a Tier 2 level that local jurisdictions may adopt as a reach code to meet the priorities of the community. Tier 2 further increases energy efficiency and greenhouse gas reduction above that required for Tier 1 in the previous code cycle. While base mandatory CalGreen requirements are the required thresholds for all California jurisdictions, reach codes for Tier 1 and Tier 2 extend beyond the mandatory green building requirements. Implementation is another variation between different jurisdictions. For instance, Petaluma's adopted reach code for CalGreen Tier 1 (minus energy) requirements applies only to new construction. Palo Alto's green building regulations apply CALGreen Tier 1 to commercial tenant improvements, residential additions, and all renovations, but apply CAL Green Tier 2 to all new construction. A benefit of the CALGreen requirements, regardless of the level, is that compliance can be obtained through a variety of methods, without one prescribed approach. This provides greater flexibility to the developer/building while maintaining increased performance standards of the city. All Electric Through a statewide coalition led by the Natural Resources Defense Council and the Building Decarbonization Coalition, Sonoma Clean Power (SCP) has begun to reach out to cities to offer guidance and technical assistance to enable interested jurisdictions to adopt all -electric reach codes. An all -electric reach code eliminates the need for natural gas connections and the electrification of homes has been recognized as providing improved safety, healthier indoor air, and reductions in greenhouse gas emissions. SCP is advocating for an all -electric reach code for all new residential development, including single family homes and low-rise multi -family of three or 3 fewer stories. This would require that all new residential development within these thresholds be designed to be fully electric, including cooking, water heating, and heating and cooling systems. SCP has provided results of initial statewide analysis that indicate that all -electric homes are cheaper to build and save homeowners money on their utility bills. Based on the current statewide estimate, an all -electric, energy efficient home would cost $6,171 less (or $3,361 less in the case of a multifamily home) to build than a home using natural gas. Anticipated Code Changes The California Energy Commission recently adopted mandatory energy code updates that will take effect on January 1, 2020 (Attachment 2). As required, staff is preparing materials for adoption of these updates as part'of the triennial updates. Additionally, staff has been preparing materials to readopt the city's current reach code, requiring compliance with CalGreen Tier 1 (minus energy) for all new construction. The newly adopted mandatory energy code updates includes changes that will be required as part of the mandatory CalGreen requirements, regardless of Petaluma's adoption of a reach 'code. The most notable of these requirements are increases in energy efficiency by approximately 7% and mandatory installation of limited solar photovoltaics for all new residential construction of three or less habitable stories. While it makes sense to adopt any reach code simultaneously with adoption of the new state mandated code updates, it is not a requirement. A reach code can be adopted by .the local jurisdiction at any time. However, prior to becoming effective, the adopted reach code must be approved by the California Energy Commission. Implementation While the discussion and commitment to increasing energy efficiency and decreasing greenhouse gas emissions is occurring in jurisdictions across the bay area, the approach and implementation of reach codes varies widely. The following includes some example of reach codes adopted by local jurisdictions: City. Type of Reach Code Sebastopol Solar PV San Francisco Solar PV Healdsburg Energy Efficiency Novato Energy Efficiency Palo Alto Solar PV , Energy Efficiency San Mateo Cool Roofs Notes New resideintial over 840 sq ft, new commercial, alterations of over 50% and additions over 1,800 sq ft. New construction 10 stories or less with at least 2,000 sq ft require min solar area of 150 sq ft. CALGreen Tier 1 for low rise MF and non- residential CALGreen Tier 1 for all new construction • Required for. single family • Performance Standards • All new MF and commercial with low sloped roofs 11 EV Readiness • Increased requirement for all new MF and non-residential construction Laundry to Landscape ® Mandated valve for all new SF homes to allow for future grey water reuse Solar • Solar PV required on all new construction Oakland EV Charging Readiness MF buildings with 3+ units or non-residential Berkeley Energy Audits Energy efficiency audit and reporting required based on size of buildings In addition, many jurisdictions have expressed interest in adopting reach codes for the code cycle effective January 1, 2020, including, but not limited to the following north bay communities: • Santa Rosa • Cloverdale • Sebastopol • County of Sonoma • Fairfax . • County of Marin • Windsor Next Steps Reach codes can vary considerably in terms of what and how they regulate. This is evidenced by the different reach codes adopted by jurisdictions throughout the Bay Area and provides options to consider in determining the best approach for Petaluma. While there is no action at the meeting on July 1St, feedback from the Council on the desired direction will be helpful to guide further research and preparation of the appropriate documents for adoption. There are several options that would be relatively low cost for applicants, work well with existing state code, and improve efficiency and resiliency, such as: • .Adoption of a Laundry to Landscape provision that would mandate the plumbing code's optional provision to provide a valve for all new single-family homes to allow for future grey water reuse from laundry facilities. • Adoption of a solar reach code to mandate additional solar capacity of at least 200 amps for all new construction to. easily facilitate additional solar panels above what is . mandated by new state code provisions. • Adoption of electric vehicle charging readiness ordinance to mandate wiring in new residential garages f6facilitate installation of EV charging stations above and beyond that required by the building code. Alternatively, or in addition to, the city could either readopt the current CalGreen Tier 1 (minus energy) reach code, or increase efficiency and resiliency requirements by adopting: 0 CalGreen Tier 1 including energy for all new construction, and/or • CalGreen Tier 2 for new residential construction, or • All -electric reach code for all new residential construction, including single family and multi -family in buildings of three stories or less. ENVIRONMENTAL REVIEW No action is being recommended at this time. This item is agendized for discussion and therefore is not a project under GEQA because there is no discretionary action being taken by the City Council. Should policy direction result in discretionary action related to the potential adoption of a reach code that action will be subject to Environmental Review, at which time the appropriate environmental documents, prepared in accordance with the requirements of the California Environmental Quality Act (CEQA), will be presented to the Council for consideration prior to any action being taken. ATTACHMENTS - i 1. BayREN: Reach Code Types 2. California Energy Commission: 2019 Building Energy Efficiency Standards 6. 6/25/2019 Reach Code Types — BayREN Codes & Standards Attachment 1 ABOUT EVENTS SERVICES ® REACH CODES ® RESOURCES - CONTACT n Home ® Reach Code Types Reach codes can require one or more specific energy efficiency improvements (prescriptive reach codes), or can require a building to use less energy than average through a variety of optional measures (performance reach codes). These approaches can also be combined in a hybrid version. In addition, there are a number of related codes which are not specifically energy efficiency measures, but which local governments may consider for other reasons, All of these types are described below. New Construction Reach Code Types and Examples Prescriptive Reach This type of reach code is simplest to understand and enforce. Local governments can use this type of reach code to require new development to include one or more specific features in order to reduce energy use. Examples of prescriptive reach codes in the 2016 code cycle include: o Requiring solar panels on one or more types of new buildings (Sebastopol, Alameda County, Fremont, Brisbane, San Francisco) o Requiring reduced outdoor lighting (Fremont) o Requiring cool roofs (Brisbane, San Mateo) These reach codes are more complicated, but also allow greater flexibility. Together with the Energy Code, the California Energy Commission also determines how much energy different types of buildings are likely to use, Local governments can therefore require new development to use even less energy on average. Examples of performance reach codes in the 2016 code cycle include: o Exceeding minirnuin building energy performance by 15% (Healdsburg, Novato, Mill Valley) https://www.baytenoodes.org/reachcodes/reach-code-types/ 1/3 6/25/2019 Reach Code Types — BayREN Codes & Standards 0 Exceeding minimum building energy performance if solar panels are not installed, by different arnounts for different types of development (Palo Alto) It is possible to combine the prescriptive and performance approaches to reach codes, In Marin County, for example, there are different solar panel. and performance requirements for different sizes of residential buildings, but a home which is all -electric or which is Passive House certified does not need to meet these. M Some related codes don't specifically require increased energy efficiency, but they may cause less energy to be used or they may increase the likelihood of electrification (and reduced greenhouse gas emissions). These codes are different in that they should not require cost-effectiveness studies or approval by the California Energy Commission, although they will need to meet other requirements.. Examples of this type of code in the 2016 code cycle include: • Requiring electric vehicle charging stations (Marin County, San Francisco) • Requiring electric vehicle charging readiness (Marin County, Oakland, Fremont) • Requiring energy audits (Berkeley) • Requiring solar zones (Palo Alto) Most reach codes apply to new buildings only. Because buildings last 30-50 years or even longer, constructing them to be as efficient as possible makes sense and maximizes energy savings. This means that energy efficiency is especially important for new buildings. Existing buildings, however, comprise most of the building stock. These buildings are often inefficient and could be upgraded to save a great deal of energy, while also reducing greenhouse gas emissions significantly. However, requiring these upgrades is complicated by the variety of types among existing buildings and by the financial outlay that some of these upgrades could require. Although all reach codes must be cost-effective and pay for themselves over time, some may require a substantial upfront cost. Key questions to consider in developing a reach code for existing buildings include: o What type and level of project will trigger the reach code? 0 Will there be exceptions for certain types of buildings or residents (historic buildings, senior citizens)? c, Is the cost of complying with the reach code reasonable given the size of the project and the expected return on investment? o Are there incentives which could assist property owners in complying with the reach code? https://www.bayrencodes.org/reachcodes/reach-code-types/ 2/3 6/25/2019 Reach Code Types — BayREN Codes & Standards Some Californian cities have been working to develop a reach code for existing buildings, and a cost-effectiveness study was completed in 2018 that examined several measures and packages of measures. The cost-effectiveness study can be accessed here. Suggest additional links for this page by emailing codes@bayren.org. 2019 © BayREN Codes & Standards. All rights reserved. https://www.bayrencodes.org/reachcodes/reach-code-types/ 3/3 I'he effectivedate ot thp 2019 Building Energy Effirienq Standards is January 1, 2020 What are Building Energy Efficiency Standards? Building energy efficiency standards are designed to reduce wasteful, uneconomic, inefficient or unnecessary consumption of energy, and enhance outdoor and indoor environmental quality. The standards are adopted into the California Code of Regulations (title 24, Part 6). They apply to newly constructed buildings and additions and alterations to existing buildings. "The buildings that Californians buy and live in will operate very efficiently while generating their own clean energy. They will cost less to operate, have healthy indoor air and provide a platform for `smart' technologies that will propel the state even further down the road to a low emissions future." - Commissioner Andrew McAllister Standards ensure that builders use the most energy efficient and energy conserving technologies and construction practices, while being cost effective for homeowners over the 30 -year lifespan of a building. The California Energy Commission is responsible for adopting, implementing and updating the standards every three years. Local city and county enforcement agencies have the authority to verify compliance with all applicable building codes including these standards. How much energy will the 2019 standards save? Single-family homes built with the 2019 standards will use about 7 percent less energy due to energy efficiency measures versus those built under the 2016 standards. Once rooftop solar electricity generation is factored in, homes UUllt UIIUG'I ❑IG GU IJ MQIIUUIUJ VVIII UJG QUUUt JJ PG'I UGIII less energy than those under the 2016 standards. This will reduce greenhouse gas emissions by 700,000 metric tons over three years, equivalent to taking 115,000 fossil fuel cars off the road. Nonresidential buildings will use about 30 percent less energy due mainly to lighting upgrades. How much will the 2019 standards add to the cost of a new home? On average, the 2019 standards will increase the cost of constructing a new home by about $9,500 but will save $19,000 in energy and maintenance costs over 30 years. Based on a 30 -year mortgage, the Energy Commission estimates that the standards will add about $40 per month for the average home, but save consumers $80 per month on heating, cooling and lighting bills. MARCH 2018 What is new to the 2019 standards? The standards require solar photovoltaic systems for new homes. For the first time, the standards establish requirements for newly constructed healthcare facilities. On the residential side, the standards also encourage demand responsive technologies including battery storage and heat pump water heaters and improve the building's thermal envelope through high performance attics, walls and windows to improve comfort and energy savings. In nonresidential buildings, the standards update indoor and outdoor lighting making maximum use of LED technology. For residential and nonresidential buildings, the standards enable the use of highly efficient air filters to trap hazardous particulates from both outdoor air and cooking and improve kitchen ventilation systems. Do the 2019 residential standatds get us to zero net energy? Homes built in 2020 and beyond will be highly efficient and include photovoltaic generation to meet the home's expected annual electric needs. Because smarter buildings perform better and affect the grid less, the standards also include voluntary options to install technology that can shift the energy use of the house from peak periods to off-peak periods. In 2008, California set energy -use, reduction goals targeting zero -net -energy use in all new homes by 2020 and commercial buildings by 2030. The goal meant that new buildings would use a combination of energy efficiency and distributed renewable energy generation to meet all annual energy needs. However, California's energy landscape has changed since then. Two important policies — the Renewables Portfolio Standard (RPS) and net energy metering rules (NEM) — affect the value of rooftop solar generation. The RPS requires utilities to have 50 percent of their electrical resources come from renewables by 2030. As a result, electricity produced for the grid is already much cleaner than 10 years ago. NEM rules limit residential rooftop solar generation to produce no more electricity than the home is expected to consume on an annual basis. If the home generates more, the surplus is compensated at much lower than the retail rate (which can be a difference of $.10 a kilowatt-hour or more). The Energy Commission's standards must be cost effective and bring value to the grid and environment. ' Because the grid is cleaner and residential rooftop solar customer compensation for over -generation is very limited, it is critical that rooftop solar generation does not substantially exceed the home's electricity use. It is ideal to generate the electricity and have it used onsite versus exporting it to the grid at a time it may not be needed. When the rooftop solar generation is entirely used to offset on-site electricity consumption, then the home has virtually no impact on the grid, reducing the home's climate change emissions. Looking beyond the 2019 standards, the most important energy characteristic for a building will be that it produces and consumes energy at times that are appropriate and responds to the needs of the grid, which reduces the building's emissions.