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HomeMy WebLinkAboutOrdinance 2925 N.C.S. 03/16/2026 Ordinance No. 2925 N.C.S. Page 1 EFFECTIVE DATE OF ORDINANCE March 16, 2026 ORDINANCE NO. 2925 N.C.S. Introduced by: Janice Cader Thompson Seconded by: Karen Nau AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA AMENDING CHAPTER 17.09 OF THE PETALUMA MUNICIPAL CODE, ENTITLED "ALL- ELECTRIC CONSTRUCTION IN NEWLY CONSTRUCTED BUILDINGS," TO CONVERT CHAPTER 17.09 TO A POLICY PROMOTING BUT NOT REQUIRING ELECTRIFICATION IN NEW CONSTRUCTION AND SUBSTANTIAL REMODELS IN SUPPORT OF BUILDING ELECTRIFICATION’S ECONOMIC, PUBLIC SAFETY AND GREENHOUSE GAS BENEFITS, CONTINUING THE CITY’S NON-ENFORCEMENT OF CHAPTER 17.09 SINCE THE RULING IN CALIFORNIA REST. ASS'N V. CITY OF BERKELEY IN APRIL OF 2023,ELIMINATING ALL MANDATORY ELECTRIFICATION REQUIREMENTS IN CHAPTER 17.09, AND DIRECTING STAFF TO CONTINUE TO RESEARCH POTENTIAL POLICIES AND PROGRAMS FOR ACHIEVING THE CITY’S BLUEPRINT FOR CLIMATE ACTION GOALS CONSISTENT WITH APPLICABLE LAW WHEREAS, on January 11, 2021, the City Council adopted a Climate Emergency Framework to guide the City in developing and implementing further climate change response efforts including, among other things, setting a goal for Petaluma to achieve carbon neutrality by 2030; and WHEREAS, the Climate Emergency Framework identifies “Electrification – to eliminate fossil fuel use in buildings (i.e., switch end uses from natural gas or propane to electricity)” as a strategy and action to help achieve the City’s carbon neutrality goal; and WHEREAS, buildings are a significant source of greenhouse gas emissions in California and locally, primarily due to on-site combustion of fossil fuels for space and water heating and cooking;1 and WHEREAS, the City adopted a Blueprint for Climate Action on , which includes greenhouse gas reduction strategies, November 4, 2024; and // // // 1 U.S. Environmental Protection Agency, Commercial and Residential Sector Emissions (last updated Mar. 31, 2025), https://www.epa.gov/ghgemissions/commercial-and-residential-sector-emissions Docusign Envelope ID: 9400E630-5134-434A-A104-56587BF7A596 Ordinance No. 2925 N.C.S. Page 2 WHEREAS, transitioning new buildings to all-electric design avoids long-lived fossil fuel infrastructure, reduces the risk of “lock-in” of future emissions, and supports cost-effective achievement of the City’s carbon neutrality and climate action goals over the life of new development;2,3 and WHEREAS, all-electric building design improves indoor environmental quality by avoiding on-site combustion and associated pollutants, which can contribute to adverse health effects, and therefore supports the public health and welfare of building occupants;4,5 and WHEREAS, On May 17, 2021, the City Council adopted Chapter 17.09 of the Petaluma Code, which enacted local amendments to the California Building Standards Code and was known as the City’s “All-Electric Ordinance,” including provisions requiring the construction of new buildings and substantial remodels with all- electric infrastructure rather than gas infrastructure; and WHEREAS, Chapter 17.09 as enacted included City Council findings that human activities, such as burning natural gas to heat buildings or cook food, release greenhouse gases into the atmosphere6 and contribute to an overall increase in global average temperature, and that increases in global average temperatures cause more extreme and frequent weather events;7 and WHEREAS, Chapter 17.09 also included City Council findings that greenhouse gas emissions from natural gas are a significant contributor to climate change,8 and omitting natural gas fueled appliances in new buildings will reduce the amount of natural gas that is burned, thus reducing the amount of greenhouse gases emitted into the atmosphere9 and helping to avoid further global average temperature increase, resulting more extreme and frequent weather events;10 and WHEREAS, as presented during the introduction and adoption of Chapter 17.09, electric systems are safer for building occupants,11,12 ultimately cheaper than gas systems,13 and better for the environment; and 2 Jared Langevin et al. (Lawrence Berkeley National Laboratory), Demand -side solutions in the U.S. building sector could achieve deep emissions reductions and avoid over $100 billion in power sector costs, One Earth 6, 1005 –1031 (Aug. 18, 2023), https://doi.org/10.1016/j.oneear.2023.07.008 3 U.S. Department of Energy, U.S. Department of Energy Announces Final Rule to Propel Federal Buildings Toward Zero Emissions (Apr. 24, 2024), https://www.energy.gov/articles/us-department-energy-announces-final-rule-propel-federal-buildings-toward-zero- emissions 4 U.S. Environmental Protection Agency, Sources of Combustion Products (last updated Dec. 17, 2025), https://www.epa.gov/indoor - air-quality-iaq/sources-combustion-products 5 California Air Resources Board, Nitrogen Dioxide & Health, https://ww2.arb.ca.gov/resources/nitrogen -dioxide-and-health 6 See, also, U.S. Environmental Protection Agency, Commercial and Residential Sector Emissions (last updated Mar. 31, 2025), https://www.epa.gov/ghgemissions/commercial-and-residential-sector-emissions 7 See, also, U.S. Global Change Research Program, Fifth National Climate Assessment, ch. 2: Climate Trends (2023), https://doi.org/10.7930/NCA5.2023.CH2 8 See, also, Intergovernmental Panel on Climate Change, Climate Change 2023: Synthesis Report, Summary for Policymakers, A.1 (2023), https://www.ipcc.ch/report/ar6/syr/downloads/report/IPCC_AR6_SYR_SPM.pdf 9 See, also, U.S. Department of Energy, Federal Energy Management Program, Quantitative Considerations for Building Electrification Projects (Feb. 2024), https://www.energy.gov/sites/default/files/2024 -05/femp-electrification-decision-tool.pdf 10 See, also, National Oceanic and Atmospheric Administration, State of the Science Fact Sheet: How Human -Caused Climate Change Affects Extreme Events (Jan. 2025), https://repository.library.noaa.gov/view/noaa/69975/noaa_69975_DS1.pdf 11 See, also, U.S. Consumer Product Safety Commission, Carbon Monoxide Fact Sheet (n.d.), https://www.cpsc.gov/safety - education/safety-guides/carbon-monoxide/carbon-monoxide-fact-sheet 12 See, also, Weiwei Lin, Bert Brunekreef and Ulrike Gehring, “Meta-analysis of the effects of indoor nitrogen dioxide and gas cooking on asthma and wheeze in children”, International Journal of Epidemiology, no. 42 (2013); pp. 1724 – 1737. 13 See, also, Pacific, Gas & Electric Company, ‘Company Profile,’ the Pacific, Gas and Electric Company, https://www.pge.com/en_US/about-pge/company-information/profile/profile.page (accessed 13 February 2021) Docusign Envelope ID: 9400E630-5134-434A-A104-56587BF7A596 Ordinance No. 2925 N.C.S. Page 3 WHEREAS, in a case decided after the City Council adopted Chapter 17.09, the U.S. Ninth Circuit Court of Appeals ruled that the federal Energy Policy and Conservation Act (EPCA) preempts local regulations banning the installation of gas appliances or infrastructure in newly constructed buildings, as set forth in the opinion issued by the Ninth Circuit on April 17, 2023, and amended January 2, 2024, ruling in favor of the plaintiffs in a lawsuit brought by the California Restaurant Association that challenged the City of Berkeley's regulations prohibiting natural gas infrastructure in new buildings;14 and WHEREAS, following the Ninth Circuit’s ruling in the City of Berkeley case , the City has not compelled compliance with or enforced the all-electric requirements in Chapter 17.09 for new construction or substantial remodels; and WHEREAS, since the Ninth Circuit ruled in the City of Berkeley case, the City has denied no development entitlements or building permit applications based on Chapter 17.09’s electrification requirements; and WHEREAS, since the Ninth Circuit ruled in the City of Berkeley case, the City has approved and continues to process development project and building permit applications for buildings that include natural gas infrastructure and appliances, consistent with City of Berkeley decision; and WHEREAS, notwithstanding the City’s non-enforcement of the Chapter 17.09 electrification requirements, the City has observed that many applicants and developers continue to voluntarily choose all-electric building designs presumably for the economic, public safety, and carbon neutrality benefits they provide; and WHEREAS, on January 5, 2026, notwithstanding the City’s non-enforcement of Chapter 17.09 electrification requirements, the U.S. Department of Justice filed on behalf of the United States a complaint naming the cities of Morgan Hill and Petaluma as defendants, seeking declaratory and injunctive relief concerning Morgan Hill’s and Petaluma’s electrification regulations, even though neither city has been enforcing or requiring compliance with their electrification regulations following the City of Berkeley ruling; and WHEREAS, the Department of Justice did not contact the cities of Morgan Hill or Petaluma to inquire regarding the cities’ enforcement of their electrification regulations prior to filing suit against the cities; and WHEREAS, to remove any doubt regarding the City’s compliance with the City of Berkeley ruling and its administration of its permitting processes consistent with the City of Berkeley ruling, this ordinance amending Chapter 17.09 of the Petaluma Municipal Code is intended to continue the City’s non-enforcement of Chapter 17.09 since the ruling in the City of Berkeley case in April, 2023, and eliminate all mandatory electrification requirements in Chapter 17.09 to ensure the provisions of the Petaluma Municipal Code expressly align with applicable law and reflect the City’s practices regarding applications for new construction and substantial remodels in the City; and WHEREAS, pursuant to California Health & Safety Code section 17958.7, subd. (c)(5), these changes and modifications are necessary to implement a local code amendment that is adopted to align with a general plan approved on or before June 10, 2025 (here, the City’s General Plan update, including the Blueprint for Climate Action that includes greenhouse reduction strategies, adopted on November 4, 2024), which permits mixed-fuel residential construction consistent with federal law while also incentivizing all-electric construction as part of the City’s adopted greenhouse gas emissions reduction strategy; and 14 California Rest. Ass'n v. City of Berkeley (9th Cir. 2024) 89 F.4th 1094 Docusign Envelope ID: 9400E630-5134-434A-A104-56587BF7A596 Ordinance No. 2925 N.C.S. Page 4 WHEREAS, adoption of this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 (not a project) as the proposed amendments do not approve or authorize any development or physical change in the environment, and codifies City practice since the Ninth Circuit Court of Appeals issued the City of Berkeley decision, and any future City discretionary decisions that may result in physical changes in the environment will be subject to environmental analysis as required by CEQA; and WHEREAS, the City Council of the City of Petaluma held a duly noticed public meeting on March 16, , 2026, at which time all interested parties were given full opportunity to be heard and to be present; NOW THEREFORE BE IT ORDAINED by the Council of the City of Petaluma, as follows: Section 1. Recital Made Findings. The City Council hereby finds and determines the foregoing recitals to be true and correct and hereby incorporates them into this ordinance as findings and determinations of the City Council. Section 2. Exemptions from CEQA. This action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 (not a project) as the proposed amendments do not approve or authorize any development or physical change in the environment, codifies City practice since the Ninth Circuit Court of Appeals issued the City of Berkeley decision, and any future City discretionary decisions that may result in physical changes in the environment will be subject to environmental analysis as required by CEQA Section 3 Amendment of Petaluma Municipal Code Chapter 17.09 currently entitled “All-Electric Construction in Newly Constructed Buildings.” Chapter 17.09 is hereby retitled and amended as follows (strikethrough text is deleted text and bold italic text is added text): CHAPTER 17.09 VOLUNTARY POLICY ENCOURAGING ALL-ELECTRIC CONSTRUCTION IN NEWLY CONSTRUCTED BUILDINGS AND SUBSTANTIAL BUILDING ALTERATIONS 17.09.005 Policy and purpose. A. City policy. It is the policy of the city to encourage newly constructed buildings and substantial building alterations to be designed and constructed as all-electric buildings and, where all-electric construction is not selected, to encourage incorporating electric-ready infrastructure to facilitate future electrification. B. Purpose. This chapter is intended to promote, on a voluntary basis, all-electric building designs that may: 1. Reduce greenhouse gas emissions associated with building energy use and thereby support the city’s environmental and sustainability goals; 2. Provide occupant and resident health and indoor air quality benefits by reducing or eliminating on - site combustion of fuels within buildings; and Docusign Envelope ID: 9400E630-5134-434A-A104-56587BF7A596 Ordinance No. 2925 N.C.S. Page 5 3. Be cost-effective over the life of the building by supporting efficient electric technologies and reducing the need for future retrofit work. C. Voluntary nature. The provisions of this chapter are advisory and voluntary. Nothing in this chapter shall be construed to require as a condition of project approval or otherwise all-electric construction, or to prohibit an otherwise code-compliant fuel choice. Any project applicant’s choice in favor of the building electrification encouraged by this chapter is voluntary and is not a condition of application completeness, permit issuance, inspection approval, or granting of a certificate of occupancy. 17.09.010 Applicability. The requirements policies and recommendations of this chapter shall are intended to apply to all newly constructed buildings and substantial building alterations as defined in Section 17.09.020 at the time the city receives the building permit application for a newly constructed building or substantial building alteration, except as otherwise provided in this chapter. 17.09.020 Definitions. A. "Accessory dwelling unit" shall have the same meaning as specified in Section 65852.2 of the California Government Code, as amended from time to time. B. "All-electric building" is a building that uses a permanent supply of electricity as the source of energy for all space heating, water heating (including pools and spas), cooking appliances, and clothes drying appliances, and has no natural gas or propane plumbing installed in the building. C. "All-electric design" means a plan or plans for a building or portion thereof that uses a permanent supply of electricity as the source of energy for all space heating, water heating (including pools and spas), cooking appliances, and clothes drying appliances, and has no natural gas or propane plumbing installed in the building. D. "Building" shall have the same meaning as "building" as specified in the California Building Standards Code at Title 24, Part 2, of the California Code of Regulations as amended from time to time. E. "Electric-ready" is a building or portion thereof that contains electrical systems and designs that provide capacity for a future retrofit of a mixed-fuel building to an all-electric building. To qualify as electric-ready, buildings and portions of buildings must include sufficient space, drainage, electrical conductors or raceways, bus bar capacity, and overcurrent protective devices to provide capacity for a future retrofit to an all-electric building. F. "Essential services buildings" shall have the same meaning as "essential services buildings," as defined by Health and Safety Code Section 16007, as amended from time to time. For purposes of this chapter, essential Docusign Envelope ID: 9400E630-5134-434A-A104-56587BF7A596 Ordinance No. 2925 N.C.S. Page 6 services buildings are publicly owned and/or publicly operated buildings whose purpose is to safeguard the public health and safety. Essential services buildings generally exclude privately owned residences and/or commercial buildings; except that, privately owned commercial buildings may qualify as essential services buildings to the extent they are publicly operated to safeguard the public health and safety. G. "Junior accessory dwelling unit" shall have the same meaning as specified in Section 65852.22 of the California Government Code, as amended from time to time. H. "Mixed-fuel building" means a building that uses natural gas or propane as fuel for space heating or cooling, exterior heating, decorative uses, lighting, water heating (including pools and spas), cooking appliances or clothes drying appliances, on-site generation of electricity (except where primarily fueled by on-site digestion of organic material), or contains fixtures, piping systems, or infrastructure for natural gas or propane equipment for such uses. I. "Natural gas" shall have the same meaning as "fuel gas" as specified in Section 208.0 of the California Plumbing Code and Section 208.0 of the California Mechanical Code, as amended from time to time. J. "Newly constructed building" shall mean any building that: (1) is proposed to be located in whole or in part within the city; (2) is not an alteration or addition to or repair of an existing building; (3) is subject to the city’s regulatory authority pursuant to the city’s general plan, Implementing Zoning Ordinance, SmartCode and/or any adopted specific plan or other city land use regulation, regardless of whether a discretionary permit is required or not; and (4) has not been granted and/or is not subject to a valid building permit that remains in effect. K. "Substantial building alteration" shall mean an alteration or addition to an existing building involving removal of more than fifty percent of the perimeter of the exterior walls of the existing building or the addition of more than fifty percent of the gross floor area to the existing building. 17.09.030 Requirement Encouragement for all-electric construction in newly constructed and substantially altered buildings. A. The city encourages newly constructed buildings and substantial building alterations to satisfy the definition of an all-electric building and/or have an all-electric design. B. The city encourages applicants to avoid converting an all-electric building to a mixed-fuel building, where feasible. C. The policies in this section are advisory and are intended to express the city’s preferred approach to reducing building emissions, protecting the health and safety of building occupants, improving electric readiness, saving on construction costs and achieving the city’s carbon neutrality goals. Docusign Envelope ID: 9400E630-5134-434A-A104-56587BF7A596 Ordinance No. 2925 N.C.S. Page 7 17.09.040 Reserved Exceptions. The requirements of this chapter shall not apply to: A. Additions and alterations to existing buildings, except for substantial building alterations; and B. The use of portable propane appliances outside of the building envelope, such as for outdoor cooking and outdoor heating appliances; and C. Essential services buildings that are electric ready; and D. Back-up power facilities for essential services buildings; and E. Development projects that have obtained vested rights prior to the effective date of this chapter pursuant to a preliminary affordable housing project application in accordance with Government Code Section 65589.5(o), a development agreement in accordance with Government Code Section 65866, a vesting tentative map in accordance with Government Code 66998.1, or pursuant to the ruling in Avco Community Developers Inc. v. South Coast Regional Communication (1976) 17 Cal. 3d 785, or pursuant to other applicable statutory or case law. 17.09.050 Reserved Infeasibility waiver. A. Grant of Waiver and Waiver Criteria. The chief building official may grant a permit in response to an application to construct a new mixed-fuel building notwithstanding the requirements of Section 17.09.030, if the chief building official, in his or her sole discretion, determines in writing, based on sufficient information submitted by the permit applicant, that the application qualifies for a waiver in accordance with this section, because it is infeasible for the proposed newly constructed building to be an all-electric building and/or to have an all-electric design, in accordance with the following: 1. The proposed newly constructed building cannot satisfy all-electric building or all-electric design prescriptive requirements based on the newly constructed building’s intended use(s) when compared to the same building and intended use(s) modeled with natural gas under the California Energy Code; or 2. The proposed newly constructed building cannot satisfy all-electric building or all-electric design performance requirements based on the newly constructed building’s intended use(s) when compared to the same building and intended uses modeled with natural gas using commercially available technology and an approved calculation method under the California Energy Code; and 3. The installation of natural gas piping systems, fixtures and/or infrastructure in the proposed newly constructed building is strictly limited to the system(s) and/or area(s) of the building regarding which the chief building official has determined that meeting all-electric building and/or all-electric design requirements is infeasible; and Docusign Envelope ID: 9400E630-5134-434A-A104-56587BF7A596 Ordinance No. 2925 N.C.S. Page 8 4. The proposed newly constructed building is electric-ready. B. Cost Not a Factor. Financial considerations are not a basis for determining that it is infeasible for a proposed newly constructed building to meet all-electric building and/or all-electric design requirements. C. Appeals. 1. Any aggrieved applicant may appeal the determination of the chief building official regarding the granting or denial of a waiver pursuant to this section. 2. Appeals must be filed in writing with the building official not later than fourteen days after the date of the building official’s written determination regarding the waiver application. 3. Appeals must clearly state the basis for the appeal and provide adequate documentation of the basis for the appeal. 4. Appeals shall be decided by the building board of appeals at a public hearing in accordance with Chapter 17.08. 17.09.060 Violations No enforcement; voluntary compliance The city’s policies encouraging building electrification in this chapter are voluntary and not enforceable through civil, criminal, or administrative penalties, and no development application may be denied based on the advisory provisions of this chapter. Violations of the requirements of this chapter shall be subject to enforcement and imposition of the civil and administrative remedies in Chapters 1.10, 1.11, 1.13, 1.14, 1.15 and 1.16. 17.09.070 Periodic review and administrative regulations. The building official shall periodically review the requirements policies of this chapter for ongoing consistency with state and federal law and the California Building Standards Code codified in Title 24 of the California Code of Regulations, pursuant to the triennial code adoption cycle and the local amendments in this code and is authorized to promulgate administrative regulations implementing requirements of this chapter. 17.09.080 Energy code not amended. Nothing in this chapter is intended to amend and nothing in this chapter shall be construed so as to amend California Energy Code requirements in Part 6 of Title 24 of the California Code of Regulations. Docusign Envelope ID: 9400E630-5134-434A-A104-56587BF7A596 Ordinance No. 2925 N.C.S. Page 9 17.09.090 No appliance or appliance system requirement. Nothing in this chapter is intended to amend or conflict with and nothing in this chapter shall be construed so as to amend or conflict with any provisions of the National Appliance Energy Conservation Act of 1975 or the Energy Policy and Conservation Act, and nothing in this chapter is intended to impose and nothing in this chapter shall be construed so as to impose a requirement to use or install any particular appliance or appliance system. Nothing in this chapter shall be construed to require the use of electricity rather than natural gas or propane, or to prohibit an otherwise code-compliant fuel choice in newly-constructed buildings or substantial building alterations as defined in this chapter. Section 4. Direction to Research Options. The City Council hereby directs staff to continue its research on potential policies and programs for achieving the City’s Blueprint for Climate Action goals consistent with applicable law. Section 5. Severability. If any section, subsection, sentence, clause, phrase, or word of this Ordinance is for any reason held to be unconstitutional, unlawful, or otherwise invalid by a court of competent jurisdiction or preempted by State legislation, such decision or legislation shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this Ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful other otherwise invalid. Section 6. Posting/Publishing of Notice. The City Clerk is hereby directed to publish or post this Ordinance or a synopsis for the period and in the manner provided by the City Charter and any other applicable law. Section 7. Effective Date. This ordinance shall take immediate effect upon passage by unanimous vote of the City Council members present as an urgency ordinance in accordance with Section 76A of the Petaluma Charter. This ordinance shall automatically be repealed and cease to be in effect without further action by the City Council immediately upon Ordinance no. 2926 N.C.S. taking effect. Section 8. Urgency Findings. Adoption of this ordinance as an urgency ordinance with immediate effect is necessary for the preservation of the public health, safety, and welfare in accordance with Section 76A of the Petaluma City Charter. The facts constituting the urgency include the filing of federal litigation challenging the City’s electrification regulations and the resulting need for immediate clarity and certainty in the City’s permitting standards. Although the City has administered permit applications consistent with the Ninth Circuit’s City of Berkeley decision since its issuance, Chapter 17.09 remains codified in its original form. Leaving the City’s electrification regulations unchanged while litigation is pending creates immediate risk of confusion and inconsistent expectations for applicants and staff, and increases the likelihood of delays, redesigns, and disputes during plan review. Delays in housing delivery exacerbate overcrowding and housing instability, which directly implicate public health and safety. Such delays would be particularly consequential given the City’s and region’s ongoing housing shortage and the State’s emphasis on timely housing production. Uncertainty in permitting standards can slow or stall housing and other development projects currently under review or expected to be submitted in the near term, and may prompt late-stage design changes that complicate inspections and increase the risk of construction errors. Immediate adoption of this urgency ordinance is therefore necessary to provide clear, uniform, and legally defensible permitting standards during the pendency of the litigation, thereby preserving the public peace, health, and safety. Docusign Envelope ID: 9400E630-5134-434A-A104-56587BF7A596 Ordinance No. 2925 N.C.S. Page 10 ADOPTED this 16th day of March, 2026 by the following vote: Ayes: McDonnell, Cader Thompson, DeCarli, Nau, Quint, Shribbs Noes: None Abstain: Barnacle Absent: None Kevin McDonnell, Mayor ATTEST: APPROVED AS TO FORM: Caitlin Corley, City Clerk Eric Danly, City Attorney Docusign Envelope ID: 9400E630-5134-434A-A104-56587BF7A596