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Building Electrification on the Central Coast

CARROTS & STICKS

This Photo by Unknown Author is licensed under CC BY-SA-NC

Central Coast Sustainability Summit UCSB 2022

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Agenda

Overview
Reach Codes
Incentives
Q&A

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Speakers

Lucia Pohlman- City of San Luis Obispo
Alelia Parenteau- City of Santa Barbara
Gray Gautereaux- 3C-REN
April Price- 3C-REN
Jon Griesser- Central Coast Community Energy

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Electrification: Why?

https://ww2.arb.ca.gov/ghg-inventory-graphs

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Electrification: Why?

Source: 3cenergy.org/building-programs/

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Electrification: Why?

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Electrification: Why?

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Electrification: Why?

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Carrots vs Sticks

This Photo by Unknown Author is licensed under CC BY-SA

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Carrots: Incentives

Pay people to electrify.

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Sticks: Reach Code

Reach Code: Local requirement to exceed state code

Mainly Addresses: New Construction

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Two Local Cities that passed Reach Codes

City of San Luis Obispo
City of Santa Barbara

Agency that supports Reach Code Development

Tri-County Regional Energy Network (3C-REN)

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CITY OF SAN LUIS OBISPO

Policy Approaches for Building Decarbonization

2022 Central Coast Sustainability Summit

Good evening and welcome to the Clean Energy Program for New Buildings Community Webinar. We will give folks 5 minutes to join and will begin at 5:35.

Good evening and welcome to the Clean Energy Program for New Buildings Community Webinar; my name is Chris Read and I am the Sustainability manager for the City of San Luis Obispo. We are here this evening to discuss the role all-electric new buildings play in helping achieve the community’s climate action and other major city goals. We have an existing program that encourages all electric new buildings and are developing an update to this program that would require new buildings to be all-electric starting in 2023. We are scheduled to present that update to City Council for their consideration on July 5, 2022.

Tonight’s webinar is intended to be an educational presentation sharing background and context and identifying what could be included in the 2022 update. We want to hear from you, please send questions to the moderators via the Zoom chat function and at the end of this presentation we will provide next steps for further feedback.

Finally, this webinar is intended for non-technical audiences and will be a short overview of the work so you can get the info you need and get back to your evening. If you have expertise or deeper interest in this topic and you or a group you belong to would like to talk with us in greater detail, we’d love to talk with you further and will describe how to do so later.

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San Luis Obispo’s Climate Action Plan

2. Electric-preferred approach

(2020 policy)

3. All-electric new building

requirement (2022 policy)

Agenda

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2020

Climate Action Plan

Establishes the citywide goal of reaching carbon neutrality by 2035.

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Solar EV charger at City Hall

“No net new emissions from buildings’ onsite energy use by 2020”

The plan includes a portfolio of actions, including actions to rapidly clean up the grid, invest in active transportation and clean mobility, reduce the amount of waste that ends up in the landfill, and support our open spaces. This image is provided to give a sense the broad nature of the work underway, we will provide a link to the plan in our follow up if you’d like to dig into further detail. The plan also focuses on how greenhouse gas emissions are generated by building energy use and includes a goal of [slide] “no net new emissions from buildings’ onsite energy use by 2020”, I’ll say that again, the adopted goal is no net new emissions from buildings onsite energy use by 2020. The plan also includes a goal for existing buildings, and while we are hard at work on both goals, tonight’s presentation focuses exclusively on new buildings. New buildings are a critical part of achieving the community’s carbon neutrality goals. To give a sense of scale, between 2023-2035, we could see 3,000 to 4,000 new housing units and have capacity for over 1 million square feet in new nonresidential buildings. Those buildings can either provide new climate action challenges or be climate action solutions.

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Electric-Preferred Approach

SAN LUIS OBISPO’S 2020 BUILDING DECARBONIZATION POLICY

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“It is the Policy of the City that new buildings should be all-electric.”

2020 Clean Energy Choice Program for New Buildings

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Solar EV charger at City Hall

Local amendments to California Energy Code (Reach Code)

Enhanced efficiency/performance requirements for new mixed-fuel buildings
Pre-wiring requirements for new mixed-fuel residential buildings
Solar requirements for all new non-residential and mid-rise residential buildings
Cost-effective and uses less energy

Incentive Program

Technical Support
Financial Incentives
Regulatory Flexibility
Telling the Story

Policy Summary

2020 Clean Energy Choice Program for New Buildings

The Clean Energy Choice Program for New Building's consist of three components: 1) a policy resolution stating Council’s preference for all-electric new buildings, 2) local amendments the California Energy Code for new buildings, and 3) a new incentive program. The local amendments to the California energy code include requirements for buildings with natural gas to be more efficient than standard code requirements, requires low rise and single family residential buildings with natural gas to include outlets for future electric appliances, and requires solar panels on mid-rise, high-rise, and nonresidential buildings.

Under state law, the City may make local amendments to the California Energy Code after it makes findings that the proposed amendments are cost effective and that the proposed amendments would use less energy than the standard California Energy Code. The City’s technical studies, provided as Attachment E and F in the Council Agenda Report, illustrate that the proposed amendments are cost effective and use less energy than the standard California Energy Code. Finally it is important to note that there are numerous exemptions, including for commercial kitchens and backup generators, as outlined in the Council Agenda Report.

The final component of the Clean Energy Choice Program is the incentive program. From our extensive public outreach, meeting directly with builders, affordable housing developers, and the Chamber of Commerce, among many others, it was clear that incentives were heavily desired. Staff worked with stakeholders to understand what incentives would be most useful and will be providing access to the following 1) technical support for first time electric building designers and builders, 2) access to a direct incentive program provided through Monterey Bay Community Power, 3) support with marketing new all electric buildings, and finally 4) limited term regulatory flexibility for certain mechanical equipment and appliance needs. The ordinance providing limited term regulatory flexibility, which was unanimously supported by the Planning Commission, is provided as Attachment C.

EXEMPTIONS

WHAT IS NEW:

Commercial kitchens exemptions, development of incentive program (

Encourages all-electric new buildings.

New definition of all-electric building allows for use of natural gas in commercial kitchens.

The incentives package was created to facilitate a successful transition to all electric buildings and has been vetted by developers and stakeholders.

Carbon offset program put on hold.

Findings – cost effective and use less energy.

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Solar EV charger at City Hall

Low-rise residential and single-family residential

2020 Clean Energy Choice Program for New Buildings

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Solar EV charger at City Hall

Nonresidential Policy Approach

2020 Clean Energy Choice Program for New Buildings

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Solar EV charger at City Hall

New projects were selecting a “mixed-fuel” option about half of the time.

Rate was not aligned with City policy that new buildings should be all-electric.

Not sufficient to accomplish citywide objectives for GHG reductions.

Program Performance

2020 Clean Energy Choice Program for New Buildings

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Rising Trends in 2022

Local Action

California

Building Code

State Budget

State Regulation

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All-Electric Requirement

SAN LUIS OBISPO’S 2022 BUILDING DECARBONIZATION POLICY

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Solar EV charger at City Hall

Requires all-electric new buildings starting January 1, 2023

Amended Title 8 (Health and Safety) of the City’s Municipal Code
Reasonable technical exemptions for end uses and building types that truly don’t have all-electric alternatives such as manufacturing and industrial processes and commercial kitchen equipment
Extended regulatory flexibility in the application of site development standards

Programmatic support for

Grid resilience considerations
Outreach

Policy Summary

2022 Clean Energy Program for New Buildings

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Solar EV charger at City Hall

Policy Impact

2022 Clean Energy Program for New Buildings

Avoids new onsite emissions consistent with the Climate Action Plan, adopted policy, and statewide trends.�
Allows a focused approach to existing buildings. �
Delivers healthier and safer new buildings.

The proposed update would provide several key benefits and outcomes.

First, the approach is consistent with adopted policy and the adopted Climate Action Plan. While achieving these ambitious goals, this emissions reduction program also happens to be cost effective and delivers buildings that are ready for the future. There is a saying that the best way to get out of a hole is to stop digging. We know that our community will be working hard over the next decades to rapidly reduce greenhouse gas emissions and at the same time, we will continue to build housing and new buildings. Those buildings can include natural gas and grow the problem, or we can stop digging and require the new buildings to be part of the cost effective solution.

Second, there have been some comments from the community that this should include policy requiring existing buildings to retrofit. We believe that retrofits are substantially more challenging and require a much more nuanced approach over a longer period of time. By requiring all-electric new buildings in 2023 and separating that work from existing buildings, we can take the time to develop resources, incentives, and equitable solutions for retrofits that are aligned with community needs.

Finally, the proposed approach delivers a consistent health and safety benefit across new buildings as previously discussed, including improved indoor air quality.

The proposed approach has been developed in response to feedback from the community, builders and developers, and our Council. And we want to hear from you.

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THANK YOU!

lpohlman@slocity.org

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CITY OF SANTA BARBARA NATURAL GAS PROHIBITION

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Alelia Parenteau, Sustainability & Resilience Director

ENERGY & CLIMATE DIVISION

SUSTAINABILTY & RESILIENCE DEPARTMENT

ENERGY & CLIMATE DIVISION

SUSTAINABILTY & RESILIENCE DEPARTMENT

SantaBarbaraCA.gov

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WHY: AIMING FOR ZERO

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SantaBarbaraCA.gov

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A Climate in Crisis

Irreparable damage will occur if global temperatures rise >1.5°C
California has carbon neutral goal by 2045
Santa Barbara - carbon neutral goal by 2035

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SantaBarbaraCA.gov

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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

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Achieving Carbon Neutrality

Will require multi-pronged approach

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SantaBarbaraCA.gov

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THE ROLE OF BUILDINGS

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SantaBarbaraCA.gov

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Building Sector

Buildings significant source of GHG emissions
As long-term assets, lock in infrastructure (and emissions) far into the future
Significant advances in building system technology make transition possible and more attractive

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SantaBarbaraCA.gov

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Decarbonizing Electricity

Natural gas currently makes up a large portion of electricity production
State mandates that the electric grid become cleaner
Santa Barbara Clean Energy defaults at 100% carbon free content

Provides pathway for carbon-free buildings

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2022

SantaBarbaraCA.gov

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Decarbonizing Natural Gas?

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

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CONSIDERATIONS

What about the grid?!

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SantaBarbaraCA.gov

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Can the Electric Grid Handle It?

Electric grid is a summer peaking system

Increase in demand would be mostly in winter months for space & water heating when lots of capacity is available

CCAs building substantial amount of energy supply and storage infrastructure around state
Energy assurance efforts ongoing to bolster our local grid

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SantaBarbaraCA.gov

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The Grid of Tomorrow is Smart

Electric grid’s biggest vulnerability is demand spikes
Buildings can act as mini power plants
Modern, all electric buildings can be grid adaptive
Demand Response

Can use energy in smarter way

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SantaBarbaraCA.gov

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When the Power Goes Out

Most modern gas appliances do not work without electricity

Gas stove is an exception, but dangerous to indoor air quality without hood fan

Electricity supply is easier and faster to reinstate, and backup options are considered safer

Pipeline outages and restrictions often take months (or years) to repair and reinstate

Best approach is to build local energy resources

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SantaBarbaraCA.gov

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Not the Electric Appliances of Your Youth!

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Induction Cooktops

Electric Fireplaces

Air Source Heat Pump

Heat Pump Water Heater

SantaBarbaraCA.gov

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Modern Electric Appliances

Higher efficiency – use up to 4 times less energy than natural gas appliances

Keeps utility bills roughly the same despite difference in electric and natural gas rates

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SantaBarbaraCA.gov

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Too Soon?

Some concerned that building sector isn’t ready

25% of all US homes are already all-electric
Affordable housing projects successfully being built all-electric

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SantaBarbaraCA.gov

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Additional Benefits

Avoid investment into a carbon intensive system
Cost/benefits in terms of GHG reductions

Improved public health
Reduced impacts of climate change

Green jobs

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SantaBarbaraCA.gov

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Support for All-Electric Reach Codes

Dual-fuel utilities support building electrification

PG&E Sent 27 letters of support to City Councils, “welcome opportunity to avoid further investment”

Zero carbon buildings are a necessary component of State’s GHG reduction initiatives

2018 & 2019 Integrated Energy Policy Reports (CEC)

Coupled with efficiency, building electrification presents most cost-effective pathway to decarbonization

Residential Building Electrification Report (CEC)

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SantaBarbaraCA.gov

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WHAT: NATURAL GAS PROHIBITION

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SantaBarbaraCA.gov

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Learning from Others

Leaned heavily on pioneer jurisdictions
Needed something with flexibility to adapt to future conditions
Were ready for adversity
Carefully considered requests for changes

Applicability threshold
Exemptions…

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SantaBarbaraCA.gov

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City Opts for Muni Code Change

Doesn’t sunset every three years
More far reaching
Doesn’t require CEC review
More effective, less administrative burden
Health and safety justification predicated on climate change and its impacts locally

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SantaBarbaraCA.gov

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Cost Effectiveness

Avoided costs – not installing gas infrastructure
New construction homes don’t require electric panel upgrades (built with adequate capacity)
Appliance efficiencies

Especially with increased demand for air conditioning
Solar mandate on new buildings

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SantaBarbaraCA.gov

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NEW Buildings Only

Ordinance only affects

NEW buildings

Existing buildings, including additions, alterations, remodels, etc would not be subject to the proposed code amendments

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SantaBarbaraCA.gov

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Exemptions

Adopted:

Restaurants
Clean Rooms/Laboratories
Infeasibility

Considered

Fireplaces (indoor and outdoor)
Swimming pools
Hotels

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SantaBarbaraCA.gov

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NEXT STEPS

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SantaBarbaraCA.gov

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Updating the Code

Ultimately will want to update the code to accommodate City goals

As market matures
As incentives become available
Provide make ready infrastructure
Exemptions become unnecessary

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SantaBarbaraCA.gov

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Existing Buildings

Approach for existing buildings is different

Develop incentives and programs to encourage all-electric transition
Couple with incentives and resources to install solar and battery storage systems
Provide education and testing opportunities for new technologies

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SantaBarbaraCA.gov

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THANK YOU

Aparenteau@SantaBarbaraCA.gov

Sustainability.SantaBarbaraCA.gov

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SantaBarbaraCA.gov

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Technical Support for Reach Codes�UCSB Sustainability Summit

Gray Gautereaux

10/19/22

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3C-REN Reach Code Support Program

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Reach Codes Adopted

City of San Luis Obispo

All-Electric New Buildings Requirement – Health & Safety Code Amendment

City of Santa Barbara

Natural Gas Prohibition – Environmental Policy & Construction Code Amendment

Developing Reach Codes with 3C-REN Partnership

Morro Bay

All-Electric New Residential Building Requirement – Building Code Amendment

Goleta

Under Development

Carpinteria

Under Development

County of Santa Barbara

Under Development

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Services

Technical Assistance

Outreach & Education

Creation of outreach materials
Outreach and education for staff, council members, industry professionals, and the public.
Workforce education and training for contractors, code officials, and real estate professionals

Modeling reach code pathways
Development and review of draft ordinance language and technical reports
Letters of support from subject matter experts

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Direction from Council

(start)

Present and seek Council/BOS direction for an ordinance

Technical Development

(2-3 months)

Explore code scope options*
Determine where to site*
Review cost-effectiveness data*
Draft ordinance*
Legal review

Public Outreach

(1-2 months)

Create outreach campaign*
Host forums for public comment*
ID/Engage potential opposition*
Record engagement and feedback*

Return to Council

Develop staff report*
Return to council for decision or further direction

Implementation

(ongoing)

Conduct workforce and household education and training*

County/Municipal Code Amendment Pathway

(Varies by jurisdiction code adoption procedure)

*3C-REN supported

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Case Study

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General Purpose

Develop local codes that “reach” beyond or exceed the State code for new construction

To be effective in:

County of Santa Barbara (unincorporated area)
City of Goleta
City of Carpinteria

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Local Goals & Policies

Local Goals and Policies

County of Santa Barbara: 50% emissions reduction by 2030
City of Goleta: 100% renewable electricity use by 2030

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Phase 1: Reach Code Working Group�July - August

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Jurisdictions Developing Policy

NegaWatt

Technical Assistance

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Phase 2: Outreach�Aug-Nov

Advisory Committee Meetings
Public Workshops
Chambers of Commerce Public Policy Committee
Board of Supervisors
Goleta Green Committee
City Council

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Phase 3: Adoption & Implementation�Dec-Ongoing

Final review of draft ordinances
City Council meetings, Board hearings
Planning meeting for implementation
Development and delivery of workforce training program

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Thank you!

For more info:

3c-ren.org

For questions:

ggautereaux@co.slo.ca.us

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Carrots (Incentives)

NATIONAL, STATE AND LOCAL

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National Programs

Inflation Reduction Act is big news for Electrification

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State Program

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State Program��TECH- What to expect next

Much more funding to come in Q1 2023 from:
California Energy Trailer Bill:

TECH Clean California will receive $50 million in FY 22/23, and $95 million in FY 23/24 to increase heat pump installations and reaching more Californians in need, growing the contractor workforce, and continuing to create broader market transformation to heat pumps.

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State Program��

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Local Program

In development:

Incentives to Replace Fireplaces with Heat Pumps

2023: Plans to implement a program to replace woodburning fireplaces or stoves with an electric heater such as a an electric fireplace insert or heat pump.

This Photo by Unknown Author is licensed under CC BY-NC

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Local Program��Single Family Home Energy Savings Program�

Single Family Program

Pays contractors incentives based on the metered energy savings of their customers.

Highest incentives are paid for “Hard to Reach Customers”

Program pays for energy efficiency and specific electrification projects

This Photo by Unknown Author is licensed under CC BY

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Local Program��Single Family Home Energy Savings Program�

Half of these incentives are paid upfront, half paid based on measured savings

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Local Program��Single Family Home Energy Savings Program�

This Photo by Unknown Author is licensed under CC BY

Goals:

-Local residents get competitive/discounted pricing from participating contractors

-”Hard to Reach” customers are prioritized by contractors

-Local contractors can grow their businesses (economic development, jobs, industry growth)

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Multifamily Home Energy �Savings Program

Multi-measure, whole-building EE rebate program

Minimum GHG savings must be achieved with 3 or more measures
Base incentive level determined by number of units in building
Bonus incentives available for preferred measures
No-cost technical assistance provided
Current incentives up to $1,500/unit

Local Program

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Multifamily Home Energy Savings Program

Launched in October 2021
6 projects currently in construction or finalizing scope of work

116 units
~$285k in 3C-REN rebates
2 other incentive programs leveraged

34 active projects
77 leads in pipeline

Local Program

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Building Electrification Programs

Jon Griesser

Director of Energy Programs

Central Coast Community Energy

Central Coast Sustainability Summit

October 19, 2022

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Agenda

01

03

02

04

Reach Code Program

Electrify Your Home Program

New Construction Electrification Program

Q & A

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Member Agency Services

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Charge Your Fleet

Broadband Access

Electrify Your Fleet

Plan Your Fleet

REACH Codes

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Reach Code

Technical Assistance and Stakeholder Outreach and Engagement Support

CCCE Member Agencies

Help cities and counties meet sustainability goals

centralcoastreachcodes.org

Services

Eligibility

Benefits

Apply

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Community Energy Programs

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Ag Electrification

New Construction Electrification

Electrify Your Ride

Electrify Your Home

Electric School Bus

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Electrify Your Home

Electric HVAC and HPWH and panel replacement $1,000 - $3,800

Single Family, Low-income, and Multi-family

Reduced GHG Emissions, Improved indoor air quality, Safety

3cenergy.org/rebates/electrify-your-home

Incentives

Eligibility

Benefits

Apply

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New Construction Electrification

$2,500 - $5,000 per unit

Affordable Housing, Farmworker Housing, and ADUs

Reduce GHG Emissions in Underserved Communities

3cenergy.org/rebates/new-construction-electrification-program

Incentives

Eligibility

Benefits

Info

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THANK YOU!

https://3cenergy.org/rebates-incentives/

Jon Griesser

Director of Energy Programs

Central Coast Community Energy

831.901.3071

jgriesser@3ce.org