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Home My WebLink AboutCM Green Building Reach Codes PPTGreen Building Reach Code Proposal San Rafael City Council Study Session November 7,2022 1 Agenda 1.Background and Overview 2.Analysis: GHG Reductions 3.Analysis: Cost Impacts 4.Analysis: Resiliency 5.Summary 6.Questions and Discussion 2 San Rafael Electrification Policy Proposal November 7, 2022 Council Study Session Overview Background and Rationale •Triennial building code cycle update is this year •State Programs & Goals: •100% renewable energy by 2045 goal •Zero Net Energy (ZNE)buildings •Provide reach code options and cost effectiveness studies to cities •County Role: •Leads a Model Reach Code process •Convenes all jurisdictions and other stakeholders in development •Dozens of meetings, focus groups, stakeholder convenings and survey since January •County Model Codes adopted October 18 3 San Rafael Electrification Policy Proposal November 7, 2022 Council Study Session Overview Background and Rationale Natural gas from buildings makes up 25% of emissions in San Rafael (Electricity: 7%) 4 Overview Background and Rationale •City goals: •Climate Change Action Plan measure EE-C4 “investigate reach code… all-electric… and County’s… model” •General Plan 2040 "electrification of building systems and appliances in new buildings and those that currently use natural gas . . . “ •Climate Emergency Resolution 5 CCAP: Reduce Emissions 40% by 2030 Reach Code Options 6 1. New Construction All-Electric Requirement Prohibit the use of natural gas for new construction •Most building types •Exceptions/exemptions for certain situations 2. Existing Buildings Consider gas expansion limits now Continue Analysis to 2023 •State conducting analysis for us •Aligns with other cities and towns in Marin •Pair with Resource Hub for building community (Grand Jury) New Construction 7 Electric Vehicle Proposal •SF Homes: Level 2 Ready •Multifamily: 85% EV Ready –Low Level 2 15% EV Chargers –Level 2 •Commercial: 35% EV Ready –Low Level 2 10% EV Chargers –Level 2 10% EV Capable What is Building Electrification? 8 What is Building Electrification? 9 What is a Heat Pump? 10 Primary Analysis Areas 1.Greenhouse Gas Reductions •Will reach codes make a difference in GHG emissions? 2.Cost Effectiveness •What is the cost for different building types? 3.Resiliency •How does all-electric fare during a power outage? •Can the Grid handle the increase in demand? 11 The Big Question Will Green Building Reach Codes be an impediment to affordable housing development? Can we find a way to meet our twin goals: •Housing Production  •Greenhouse Gas Reduction  12 Housing Types 13 Single Family Homes Multifamily Buildings Accessory Dwelling Units (ADU's) 4-8 / year ~350-400 in next 3 years ~20 / year New Construction: GHG Reductions 14 GHG Reductions –State & Utility Power Mix Renewables on the CA electric grid (e.g., solar, wind, biomass): 2017 = 24% 2022 =37% (13% increase) Renewables on the grid during winter peak (Marin: Nov-Feb): 2017 = 20% 2022 = 27% (7% increase) PG&E 2021 Electric Power Mix: 50% Renewable*39% Nuclear 4% Hydro 7% Gas 93% from GHG-free resources in 2021 -MCE 49 Megawatts of local solar -2,500 solar rooftop projects in San Rafael 15 GHG Reductions –Local Context –Targeting 2030 Single Family and ADU San Rafael ~ current growth rate (.25%): Emissions Saved: 1160 MTCO2e -over 8 years (2030) (265 units) San Rafael ~ RHNA targets (1%): Emissions Saved: 4640 MTCO2e -over 8 years (2030) (1061 units) CCAP 2030 emissions goal: ~92,000 MTCO2e •Low = 1.2% of 2030 goal •High = 5 % of 2030 goal 16 GHG Reductions –Local Context –Targeting 2030 Multifamily & Non-Residential Multifamily -current projects in pipeline (~400 built by 2025): Emissions Saved: 1,308 MTCO2e -over 5 years ~1.4% of 2030 goal Adding Northgate (1,400 units): 3,664 MTCO2e -over 4 years:~5.4% of 2030 goal Non-Residential (10 year avg.): Emissions Saved: 230 MTCO2e -over 8 years ~.3% of 2030 goal CCAP 2030 emissions goal •Low = 1.7% of 2030 goal •High = 5.7% of 2030 goal 17 Total New Construction: 2.9 –10.7% of 2030 Goal New Construction: Cost Impacts 18 New Construction: Single Family Cost 19 Construction Costs: $3,000-30,000 less to build Estimated ~$7000 less for Climate Zone 2 Utility costs: $100-200 more per year* Total cost of energy / peak energy savings: Shows as cost-effective New Construction: Costs –PG&E Incentives 20 *Inflation Reduction Act to add $14,000 New Construction: Multifamily Cost Multifamily Cost Studies •Upfront costs •Heat pumps less costly than gas HVAC, across most building types •Avoid gas infrastructure, saves costs •Sometimes more costly due to increase in load capacity & transformers •Many incentives and technical assistance programs to offset costs •Utility and total energy costs may differ by building type •2/3 of homes would have bill savings •25% would have bill increases under $100/year •10% would have bill increases over $100/year 21 New Construction: Multifamily Cost 22 •For low-income housing (single and multifamily) •Up to $2 million per multifamily property •Technical assistance •Grant application assistance •Stackable with other utility and federal incentives •Inflation Reduction Act includes more incentives in 2023 New Construction: Multifamily Examples 23 Centertown Apartments, C Street The Neighborhood at Los Gamos Ascend at Hamilton Field New Construction: Non-residential Cost State Cost Studies Upfront costs: Differs by building type •Medium offices and retail typically see savings compared to mixed fuel •May have marginal upfront costs, mainly due to EV charging infrastructure •State offsetting EV cost by requiring utilities to provide infrastructure Utility (on-bill) costs: •All-electric minimum may see small increases in utility costs •Most can increase their bill savings with energy efficiency •Most restaurants likely to see high costs,even with more efficiency 24 New Construction: Resiliency & Grid Impacts 25 Resiliency / Power Outages PG&E outage info and trends: o Power outages 17% (2019 –2021) o Customers impacted 88% (2019 –2021) o Average hours of power outage 53% (~ 3 hours) PG&E resiliency efforts and dispatchable power o 12 x the amount of utility-scale backup power installed in 2021 over 2020 o 3,160 MW on the grid now = 2,370,000 homes o Continually adding more 26 Resiliency / Power Outages 27 Resiliency / Power Outages California •$385 million in 2022 budget on resource and transmission planning and long duration storage projects to serve the grid •$3 billion for transmission to deal with load growth and ensuring clean, renewable generation (CAISO) •$173 million Community Energy Resilience program to bolster local solar + storage •State code requires solar + battery for most 28 Summary 29 Primary Analysis Areas 1. Will reach codes that preference or require electrification make a difference in GHG emissions? Analysis shows reduction of GHG emissions above the 2022 base code toward CCAP 2030 GHG goals (~2.9% -~10.7%) *Doesn’t take into account solar + battery storage (unknown, hard to quantify) 30 Primary Analysis Areas 2. What is the cost of compliance with these codes for different building types? Analysis shows a range of costs and savings depending on building type and particulars. •Single family homes significantly cheaper to build; more expensive on-bill •MF homes vary to build, many opps for cost savings; often, less expensive on-bill •Multiple incentives available to mitigate up-front costs •Commercial –shows cost savings during build in many cases; variable on-bill costs depending on type 31 Primary Analysis Areas 3. How does all-electric fare during a power outage? & Can the Grid handle the increase in electric demand? Analysis shows some small but decreasing potential for impacts depending on circumstances. •California has committed $ billions in grid & infrastructure upgrades to meet the demand and solve for this issue •Despite historic heat waves, the Grid held (no blackouts) •Rate of uptick in all-electric compared to rate of resiliency efforts to the grid 32 Primary Analysis Areas Can we find a way to meet our twin goals of housing production and GHG reduction? Unknown, but we’ve crafted the proposal to do so: •Numerous stakeholder meetings and input •Resulted in many changes and improvements •Exemptions and Exceptions targeted at housing production, mainly ADU and MF •Developer community: “give us flexibility” and “help us with a learning hub” 33 New Construction Reach Code Recommendations 34 Key Policy Components •New Building electrification requirement •Apply to almost all building types, residential and commercial •Includes detached ADU’s •Prohibits conversion to mixed-fuel later •Effective date: January 1, 2023 New Construction 35 Key Policy Components –Exemptions & Exceptions •Permits already applied for •Attached ADUs •Food service establishments •Approved industrial •Commercial laundry facilities •Hardship / Infeasibility •Exceptions: Emergency backup power for MF, essential facilities New Construction 36 Rationale 1.Reduces GHG emissions between 25% and 70% 2.Mostly cost-effective and much cheaper than retrofitting later 3.Exemptions can be applied to more challenging situations 4.Electrification is becoming common/prevalent in California 5.State already requires most new buildings to be electric-ready 6.Battery backup and solar installation is required for most new construction 7.Plethora of incentives out and more coming 8.Electricity can be sourced by renewables, and they are growing 9.Every action in the CCAP is necessary to get to our 40% reduction target 10.Developers and building community stakeholders generally support Existing Buildings Proposal 37 Gas Expansion Prohibition •Prohibits gas piping expansion & meter size •Applies to single family and duplex only •Similar to San Mateo, Palo Alto •Addresses big expansions for luxury item installations Existing Buildings Proposal 38 2023 Work Plan 1.Work with State to perform common remodel analysis 2.Consider energy efficiency "flex tool" 3.Consider prescriptive requirements such as •Duct sealing •Appliance replacement on burnout 4.Develop countywide resource hub New Construction 39 Simplicity & Ease of Permitting •Simple language in codes •Aligns with County for consistency feedback from MBA •Maintains our reputation for being easy to work with •Solar and EV Permitting already streamlined •Seeking regional technical assistance program for builders Summary TIMING –Next Steps: •Bring to City Council November 21 •Goes into effect January 2023 •Jan –June 2023 develop tech assistance incentive plan/materials •Jan –June 2023 complete analysis and recommendations for existing buildings 40 Council Study Session •Are there any other thoughts or concerns you have about how we are proposing to balance our GHG reduction goals with our affordable housing goals? •Do you need any more information prior to this item coming to City Council for consideration? •Are you supportive of including a natural gas limit for existing buildings at this time? •Other questions? 41 42 Reach Code Options 43 1. New Construction All-Electric Requirement Prohibit the use of natural gas for new construction •Most building types •Exceptions/exemptions for certain situations 2. Existing Buildings Consider gas expansion limits now Continue Analysis to 2023 •State conducting analysis for us •Aligns with other cities and towns in Marin •Pair with Resource Hub for building community (Grand Jury) New Construction 44 Electric Vehicle Proposal •SF Homes: Level 2 Ready •Multifamily & Hotels: 85% EV Ready –Low Level 2 15% EV Chargers –Level 2 •Commercial: 35% EV Ready –Low Level 2 10% EV Chargers –Level 2 10% EV Capable BASE CODE 2023: 25% Level 2 EV Ready (low-power) 15% Level 2 EV Chargers 60% Level 1 EV Ready (common plug) New Construction 45 Community Engagement •Steering Committee with County, San Anselmo, Fairfax, MCE •Chief Building Officials in Marin •Builders, developers, nonprofits, Marin Builders Assoc. •Environmental organizations •Utility Partners •General Public •County survey •Individual discussions •Statewide Codes Team and other local jurisdictions Feedback informed proposal and Model Codes