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Central Coast Reach Code Policy Workshop

July 14th, 2022

Today’s Agenda

Zoom Orientation

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Introduction to 3C-REN

3C-REN: Tri-County �Regional Energy Network

• Three counties working together to improve energy efficiency in the region
• Services for – 
• Building Professionals: industry events, training, and energy code compliance support  
• Households: free and discounted home upgrades 
• Funded by ratepayer dollars that 3C-REN returns to the region

• Serves all building professionals 
• Three services – 
• Energy Code Coach  
• Training and Support 🡨
• Regional Forums  
• Makes the Energy Code easy to follow

• Serves current and prospective building professionals
• Expert instruction:
• Technical skills
• Soft skills
• Helps workers to thrive in an evolving industry

Multifamily (5+ units)

• No cost technical assistance
• Rebates up to $750/apartment plus additional rebates for specialty measures like heat pumps

Single Family (up to 4 units)

• Sign up to participate!
• Get paid for the metered energy savings of your customers

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Poll

• What industry are you coming from today?
• Current level of familiarity with reach codes?

2022 New Building Requirements

• Electric-ready is the requirement for ALL new single-family and multi-family residential dwellings starting Jan 1, 2022.
• Space heaters, cooktops, and clothes dryers

Reach Codes

• Codes adopted by jurisdictions to “reach” beyond the energy efficiency and electrification standards set in Title 24.

Where to Site

• Title 24 Overlay – CEC Route
• Municipal Code – Jurisdictional Approval

Why now?

• Electrification reach codes are cost effective in Central Coast Climate Zones
• Adopt in time for implementation alongside 2022 Energy Code effective Jan 1, 2023

Context Setting and High-level Resources

Misti Bruceri – California Energy Codes & Standards

Statewide Codes �and Standards

Central Coast Reach Codes Workshop

July 14, 2022

Studies Underway for 2022 Code Cycle

Newly Constructed Buildings

• Single Family & ADUs
• Multifamily (three-story and five-story prototypes)
• Non-Residential (office, retail, hotel, restaurant)

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Existing Buildings (renovation/additions)

• Single Family
• Low-Rise Multifamily

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Electric Pool and Spa Heating

Some Important Energy Code Terms

Cost-effectiveness

Metrics

TDV (code/societal), and “on-bill” (customer)

Utility Tariffs

Most common rate for occupancy type, as �provided by utilities.

All IOUs, plus SMUD and CPAU.

Others upon request.

Cost-effectiveness Results

Net Present Value (NPV) and Benefit to Cost (B/C) Ratio

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Some Considerations

• Analysis is intended to support widely applicable requirements potentially adopted anywhere in the state
• Identify cost-effective, non-preempted path to support policy
• NOT intended to be an example of best design practices or efficiency/electrification solutions
• Generally conservative. Paper/electronic calculations tend to be easier than physical implementation

localenergycodes.com

• Study results for your jurisdiction only
• Results per building and citywide
• Evaluate and develop cost-effective policy options
• Online help

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Cost Effectiveness Explorer

Explorer.LocalEnergyCodes.com

Thank You!

We appreciate your time!

Misti Bruceri

mistib@mbaenergy.com

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info@localenergycodes.com

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LocalEnergyCodes.com

Residential Cost Effectiveness Study Results

Alea German – Frontier Energy

Residential Methodology

Single Family Building Prototypes

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• Single Family (SF): Blended 2,400 ft²
• 50% 1-story / 2100 ft²
• 50% 2-story / 2700 ft²

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• Accessory Dwelling Unit (ADU):
• 625 ft² detached

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Multifamily Building Prototypes

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• 2 of the 4 CEC multifamily prototypes
• 3-story 36-unit loaded corridor
• 5-story 88-unit mixed use

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3-story

• 39,372 square feet slab-on grade
• Wood framed construction
• Individual HVAC systems, central water heating
• Common area support spaces

5-story

• 140,925 square feet
• 4 stories residential, 1 story commercial over parking garage
• Wood framed construction
• Individual HVAC systems, central water heating
• Common area support spaces

Analysis Baseline

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2022 Prescriptive requirements as starting point

• Heat pump baseline
• Single family
• Heat pump water heater in CZs 1,2,5-12,15-16
• Heat pump space heater in CZs 3,4,13,14
• Multifamily
• Heat pump space heating, except
• CZ16 3-story protype has gas furnace
• CZ 1 & 16 5-story protype has dual fuel heat pump
• Gas central water heating with solar thermal
• Minimum efficiency equipment
• In-unit electric cooking and clothes drying
• PV prescriptive standard
• Battery prescriptive standard for 5-story multifamily building

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All-Electric

• Prescriptive
• Efficiency
• Efficiency
• Efficiency & PV
• Efficiency, PV, & Battery

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Packages

Mixed-Fuel (2022 Baseline)

• Efficiency
• Efficiency & PV
• Efficiency, PV, & Battery

Residential Results

Single Family Results

• All-electric c/e based on TDV
• All-electric c/e On-Bill in CZ 6 and 9
• All-electric + efficiency + PV c/e
• Mixed fuel package c/e based on TDV only

ADU Results

• Similar results to single family except…
• Efficiency measures added to all-electric to meet compliance
• Mixed fuel package not c/e with battery

All-Electric Required & All-Electric Preferred

• Slight lift for all-electric in some cases to preserve the 2019 envelope

All-Electric Preferred

• Significant reach for mixed fuel

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• Greatest greenhouse gas savings for all-electric cases

Single Family/ADU Summary

Efficiency EDR2 (TDV) recommendation

• green = positive compliance margin and cost-effective using both On-Bill and TDV approaches.
• yellow = positive compliance and cost-effective results using either the On-Bill or TDV approach.

3-Story Multifamily Results

• All-electric c/e based on TDV, not On-Bill
• All-electric + PV c/e
• Mixed fuel package c/e On-Bill, not TDV

5-Story Multifamily Results

• Mixed fuel not evaluated yet
• All-electric not c/e
• All-electric + PV c/e on TDV, On-Bill in CZ4,5

• Electrification of central water heating cost-effective in some cases, more challenging in others
• More cost-effective based on TDV
• All-electric buildings are generally compliant with the 2022 code
• Adding PV to the packages improves On-Bill cost-effectiveness
• ~10% source energy savings are achievable cost-effectively for mixed fuel design

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Multifamily Summary

Next Steps

Multifamily

• Update results to CBECC 2022.1.0 (or updated version)
• Investigate central HPWH options for larger multifamily buildings (5-story prototype)
• Evaluate efficiency packages for the 5-story prototype & the all-electric packages.

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Next Steps

Single family/ADU

• Report out soon
• Includes additional package results, CARE rate results

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Non-Residential Cost Effectiveness Study Results

Avani Goyal– TRC

• Draft results (current) built in CBECC 2022.0.8 Beta software
• Final results will be updated with compliance software CBECCv1.0

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Nonresidential Prototypes

• Baseline – Title 24 ACM System Map

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HVAC System Selection

• Baseline – Title 24 ACM System Map

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HVAC System Selection

• Medium Office and Retail
• limited water heating use
• electric resistance POUs in both baseline and proposed.

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• Restaurant and Small Hotel
• Water heating electrification, HPWH

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Water Heating System Selection

• Efficiency measures added from 2025 CASE measure list – envelope, lighting, HVAC control
• Efficiency measures list varies by prototype
• Load Flexibility introduced for MO and QSR

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Reach Code Packages

LOAD FLEXIBILITY

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MO: Smart Thermostat + Demand Response Lighting

QSR: HPWH Load shift

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* Two scenarios: HVAC and water heating electrification only, mixed fuel cooking in both baseline and all-electric packages

** Includes electrification of laundry water heating and dryer

DRAFT Cost Effectiveness Results

15-year lifecycle

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• High potential of mixed-fuel plus efficiency measures and/or all-electric policy adoption
• Electrification alone is challenging to be cost effective
• Efficiency measures help
• Fewer efficiency opportunities due to improvements in 2022 state code

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• Load Flexibility improves cost effectiveness considerably for Medium Office

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• TDV metric is generally more often cost-effective than On-bill (except small hotel)

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• Many building types and climate zones can cost-effectively construct all-electric.
• Small hotel, including central water heating and laundry, due to tremendous HVAC cost savings

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• Restaurant all-electric cooking not yet cost-effective

Conclusions

• Improve on-bill cost-effectiveness by adding
• Solar PV/battery above state code req’s

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• Report Source Energy Metric and TDV Compliance Margin
• Currently testing the Standard Design in CBECC 2022 V1.0 Compliance version
• Next iteration will include compliance metrics and c/e results based on CBECC V1.0 software update

Next Steps

Thank You!

Questions?

For further queries, please contact:

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Avani Goyal: agoyal@trccompanies.com

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OR

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info@localenergycodes.com

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10 Minute Break!!

Reach Codes and Utilities

Jay Madden – Southern California Edison

Technical Support for Reach Codes - Utilities�Speaker: Jay Madden, PE� Southern California Edison,� Energy Codes & Standards

State GHG Goals and Clean Energy Policies

• SB 350
• Reduce GHG to 40% below 1990 levels by 2030
• Reduce GHGs to 80% below 1990 levels by 2050
• Double statewide energy efficiency savings in electricity and natural gas end uses by 2030
• How?
• California Air Resources Board (CARB)
• California Public Utilities Commission (CPUC)
• California Energy Commission (CEC)
• Other State Legislation and Executive Orders
• SB 1477, AB 32, SB 100, Executive Order B-55-18

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Utility Commitments to Carbon �Neutrality

• Carbon neutrality by 2045 per SB 100 and Executive Order B-55-18
• SCE’s Pathway 2045
• Carbon-free electricity
• Transportation electrification
• Building electrification
• Local governments are crucial partners
• PG&E’s Climate Change webpage
• SDG&E’s Path to Net Zero
• SMUD’s 2030 Zero Carbon Plan

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California’s GHG Emissions Today – Buildings 24%

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Source: Building Decarbonization Coalition, Amy Rider, January 2021

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Resources

• Local Energy Codes’ website and newsletter
• Cost-effectiveness reports & web-based tool
• Technical Support
• SCE’s newsletter & website
• Email updates from your local governments
• Twitter handles to follow
• @CA_codes
• @SCE_PublicAff
• @SCE_JoshuaT
• @BuildingDecarb

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Reach Codes�Process

All-Electric Reach Codes – Process

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Source: Statewide Reach Codes Program, Reach Codes Newcomers Webinar #1

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All-Electric Reach Codes – California Energy Commission (CEC) Review (If Title 24 Part 6 is Modified)

• Once adopted, local governments need to submit reach codes, supporting materials, and findings to the CEC
• The CEC will have a comment period and consider the local reach code at a business meeting
• The CEC will approve the reach code if the local government demonstrated that it is cost-effective and finds that the reach code will not allow buildings to use more energy than the base code. (2019 Building Energy Efficiency Standards, Section 10-106 and Public Resources Code Section 25402.1(h)2)

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Source: Statewide Reach Codes Program, Reach Codes Newcomers Webinar #1

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All-Electric Reach Codes – Building Standards Commission (BSC) Review (If Any Part of Title 24 is Modified)

• Local governments also need to send adopted reach codes to the BSC for approval
• Must include finding that the amendment is necessary because of local climatic, geological, or topographical conditions (Health & Safety Code, Sections 17958.7 & 18941.5)
• More information can be found here

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Source: Statewide Reach Codes Program, Reach Codes Newcomers Webinar #1

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All-Electric Municipal Code Ordinance – No CEC or BSC Review (Title 24 Not Modified)

• Ordinance is not filed with CEC or BSC
• Not tied to the building code cycle and can be adopted indefinitely
• Must include finding that the amendment is necessary because of local climatic, geological, or topographical conditions (Health & Safety Code, Sections 17958.7 & 18941.5)
• Approximately 11 jurisdictions including Berkeley, San Jose, and Santa Cruz have pursued this route

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Source: https://bayareareachcodes.org/

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All-Electric Reach Codes�Recent Activity

Annual Energy Costs for Residential Households

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Source: SCE Pathway 2045

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Increased Resiliency is One of Our Top Priorities 

• Distributed Energy Resources
• Solar, batteries, EVs
• Grid Investments
• Electric vs gas appliances
• Heat pump water heaters: load shifting, demand response
• As we become more dependent on electricity as a fuel source, how we receive that electricity will diversify
• For more info, see SCE’s Reliability Fact Sheet

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Thank you��For more info, please contact Jay Madden at jay.madden@sce.com

3C-REN Reach Code Support Program

Gray Gauteraux – 3C-REN

Central Coast Jurisdictions with Reach Codes

City of San Luis Obispo

Clean Energy Choice Program (mixed-fuel + PV)

City of Santa Barbara

All-Electric New Buildings Requirement

Ojai

All-Electric New Buildings Requirement

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Currently Considering or Developing Reach Codes with 3C-REN Partnership

City of SLO*

Morro Bay

Goleta

Carpinteria

County of Santa Barbara

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County/Municipal Code Amendment Pathway

(Varies by jurisdiction code adoption procedure)

*3C-REN supported

Reach Codes Support Program

• Launched in January 2022

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• Purpose: To offer support to jurisdictions and counties that need outreach or technical assistance in order to adopt reach codes.

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• Funding: Free to partners. Funded by 3C-REN. ~$10-12k/city

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• Structure: 3C-REN (Outreach) + Franklin Energy (Technical)

Technical Support

• Exploring code types with recommendations tailored by city
• Drafting ordinance language
• Siting new reach codes within existing municipal code
• Conduct fact finding
• Connecting staff or the implementing workforce with educational resources and training opportunities

Outreach

• Develop public engagement plans
• Conducting public engagement and assisting with public comment periods
• Identifying potential opposition and create responsive marketing tactics
• Facilitate staff and stakeholder coordination meetings

Jurisdiction Presentation: City of Santa Barbara

Kristian Hoffland

SANTA BARBARA PROHIBITION OF NATURAL GAS INFRASTRUCTURE REACH CODE

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Sustainability.SantaBarbaraCA.gov

ENERGY & CLIMATE DIVISION

SUSTAINABILTY & RESILIENCE DEPARTMENT

ENERGY & CLIMATE DIVISION

SUSTAINABILTY & RESILIENCE DEPARTMENT

SantaBarbaraCA.gov

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Central Coast Reach Code Policy Workshop: Lessons learned- July 14, 2022

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PROHIBITION OF NATURAL GAS INFRASTRUCTURE �REACH CODE

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Kristian Hoffland

Energy and Climate Analyst�CITY OF SANTA BARBARA, Sustainability & Resilience�(805) 564-5595 | khoffland@SantaBarbaraCA.gov

SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

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• Background
• Opposition
• Defining Scope & Exemptions
• Strategies for Implementation

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

California’s Climate Goals

• 1990 Levels by 2020 – Accomplished!
• 40% below 1990 by 2030
• Carbon Neutrality by 2045

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Santa Barbara city goals:

• Carbon Neutrality by 2035

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Santa Barbara GHG Emissions

• Buildings account for 25% of emissions in California
• Almost 40% in Santa Barbara!
• Buildings account for nearly all energy use in SB

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Benefits

• Climate
• As electric grid becomes more renewable, increased reductions in GHG emissions

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Timeline

• July 27 2021:Ordinance 6014 adopted by council
• January 1^st 2022 the ordinance effective date for new building permit applications
• 4:30 pm Dec 22 2021 building permit submission deadline
• Submissions must be complete
• No exemption for projects in planning process

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Opposition & Public Concerns

• Technology & Availability
• Alternative Technologies
• Cost
• Customer Choice
• Resilience
• Grid Capacity
• Union/jobs

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Technology & Availability

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Induction Cooktops

Electric Fireplaces

Air Source Heat Pump

Heat Pump Water Heater

SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Alternative Technologies

• Renewable Natural Gas
• Supplies are extremely limited and mostly from out of state
• Doesn’t solve for pipeline leakage
• Better for interim and hard to solve applications such as existing buildings, heavy industry and freight
• Hydrogen
• Existing pipeline can only accommodate 5-15% hydrogen blend
• Full transition to hydrogen would require massive infrastructure and appliance upgrades

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Costs

• NC eliminate cost of installing gas infrastructure and no costly panel/service upgrade
• Some efficiency savings
• Natural gas costs slated to increase in coming years
• Health & Safety

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Customer Choice

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Resilience

• Electronic Pilot lights in new equipment

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Grid Capacity

• SCE white papers

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• NREL, BEI, ICF, DOE studies

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Union/Jobs

• Pipe Fitters Union
• Estimated ½ job lost
• Explore a green job training program

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Who else is Doing it?

• Approved Reach Codes:
• Bans: Alameda, Berkeley, Morgan Hill, San Jose
• All-Electric Reach: Windsor, Carlsbad, Menlo Park
• Electric-Preferred: Santa Monica, San Mateo, Davis, Marin
• 50+ are somewhere in the process of developing

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

What is included? New Construction:

• A new structure that has never before been used or occupied for any purpose or removal and replacement of an existing.
• Includes detached ADU’s, not attached ADU’s.
• Does not include additions
• Includes a complete demolish and rebuild
• Includes major demolition and rebuild

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

What is major demolition and rebuild????

Removing more than 75% of any two of the following:

• Structural roof or roof framing
• Structural exterior walls (or are no longer an integral structural component)
• Foundation (or are no longer an integral structural component)

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Exemptions

• Cooking appliances in commercial kitchens
• Medical building laboratory equipment or clean-rooms
• When in the public interest or infeasible

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Resources: pre-ordinance passing

• Webinars-public
• Webinars-targeted
• AIA
• Workshops & Feedback
• Key stakeholders support/champion effort.

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Resources: post-ordinance passing

• Press Release & Webinars
• Website w/ FAQ’s, product resources, webinar recordings, links
• Info Flyer-shared w/ construction, design & permitting professionals
• Notification Letters to current building permit applicants
• Exemption Application & info sheet with substantial Demolition submission guide
• Library: Induction cooktop loaner program

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

QUESTIONS?

Kristian Hoffland

khoffland@santabarbaraca.gov

Sustainability.santabarbaraca.gov/climate-actions/

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SantaBarbaraCA.gov

PUBLIC WORKS DEPARTMENT

Jurisdiction Presentation: City of Ojai

Steve Colome

Jurisdiction Presentation: City of San Luis Obispo

Theresa McClish

CITY OF SAN LUIS OBISPO

Clean Energy Program for New Buildings

2022 UPDATE | DEVELOPERS ROUNDTABLE

1. 2020 policies and program

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2. Approach to 2022 update

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3. July 2022 Council Hearing

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4. Next steps

Path Forward

Current Policies and Program

2020 Climate Action Plan

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Council approved Climate Action Plan establishing the goal of citywide carbon neutrality by 2035.

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Current Program

1. All-electric: build to code, or
2. Mixed fuel:
• increased performance/efficiency
• pre-wiring
1. Solar on all buildings
2. Supported with technical assistance, regulatory flexibility, and incentives

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Approach to 2022 Program Update

Program Performance

Solar EV charger at City Hall

• New projects are selecting a “mixed-fuel” option about half of the time.
• This rate is not sufficient to accomplish City-wide objectives for greenhouse gas reductions.
• Local Incentives are useful tools for supporting all-electric new buildings

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Statewide Trends and Emerging Health and Safety Findings

Solar EV charger at City Hall

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Clean Energy Program for New Buildings (2022 Update)

Solar EV charger at City Hall

1. Avoids new onsite emissions consistent with the Climate Action Plan, adopted policy, and statewide trends.

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• Allows a focused approach to existing buildings.

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3. Supported with resilience considerations and delivers healthier and safer new buildings.

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4. Supported with Outreach.

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2022 Update

Clean Energy Program for New Buildings (2022 Update)

Solar EV charger at City Hall

• On July 5, 2022, the SLO City Council introduced an ordinance to require all-electric new buildings starting January 1, 2023, with reasonable exemptions; and

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• An ordinance providing regulatory flexibility through December 31, 2025 in support of the Clean Energy for New Buildings Incentive Program

• Technical Exemptions
• Back-up power for Critical Infrastructure necessary to protect public health and safety in the event of an electric grid outage (ongoing).
• Process Loads in a Newly Constructed Manufacturing and Industrial Facility (ongoing).
• Commercial Kitchen Equipment in a Newly Constructed Eating and Drinking Establishment (through December 31, 2025).
• Water heating and space heating in an attached Accessory Dwelling Unit where equipment in the existing building is serving the attached Accessory Dwelling Unit. (through December 31, 2025).
• A swimming pool that is provided as a public amenity (through December 31, 2025).
• Public Interest Exemption

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2022 Program Component #1:�Ordinance Requiring All-Electric New Buildings

Extended Regulatory Flexibility

The draft ordinance (Attachment B) amends Municipal Code Section 17.70.095 to extend the provision of temporary incentives in the application of site development standards for new all-electric buildings.

• Adds “parking requirements”
• Extends the incentive term from December 31, 2022, to December 31, 2025.

�Other Incentives

• Technical Assistance
• California Energy Code Training
• Community Forum
• Public Interest Exemption

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2022 Program Component #2:�Incentive Program Including Ordinance Extending Regulatory Flexibility

Public Health and Safety Findings

Solar EV charger at City Hall

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Resilience Considerations

Solar EV charger at City Hall

Nearly all contemporary natural gas appliances require electricity to ignite and operate safely.

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A resilient electrical grid is critical to community well being regardless of Council’s action.

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Organizations at all levels of government and scale are aggressively pursuing grid resilience efforts.

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Equity & Cost Effectiveness

Solar EV charger at City Hall

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Public Engagement

Solar EV charger at City Hall

1. Staff conducted public engagement for the Clean Energy Program for New Buildings Program update from December 2021 through June of 2022.

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• Met with builders and developers, building organizations, energy utilities, and community organizations.

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• Provided a community webinar and hosted an Open City Hall public survey.

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• Community feedback shaped the ordinance and exemptions.

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Next Steps

Solar EV charger at City Hall

1. Adoption of Ordinances

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• Implementing the Program

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• Ongoing community conversations

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• Return to Council by December 2025 to Report on Program Effectiveness of Exemptions and Incentives

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THANK YOU!

(tmcclish@slocity.org)

Round Table – All Participants

Conversation Prompts

• Cost-Effectiveness
• Triggering CEC requirements
• Regional Collaboration Opportunities/Coordination
• Exploring additional resource needs
• Navigating public outreach and public comment
• Identifying opposition
• Reach Codes vs Existing Building approaches

Upcoming 3C-REN Events

Closing

• 1.5 AIA LU’s Available
• 1.5 ICC LU’s Available
• Contact ggauteraux@co.slo.ca.us for any questions regarding LUs
• Coming to Your Inbox Soon!
• Slides, Recording, & Survey – Please Take It and Help Us Out!
• Upcoming Courses
• 7/19 – Passive House Windows
• 7/20 - Electrification Incentive Opportunities and Resources in the Central Coast
• 7/21 – 2022 California Energy Code Regional Forum (*IN PERSON*)
• 7/26 – Whole House Assessment: The Home Energy Audit Explained
• 7/28 – Save Money & Go Green: How to Bring Clean Energy to Affordable Multifamily Housing

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Thank you!

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For more info:

3c-ren.org

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For questions: 

info@3c-ren.org