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07-18-2024 Final SC Packet SC 07-18-2024 1 of 37 CITY OF CUPERTINO AGENDA lop CUPERTINO SUSTAINABILITY COMMISSION 10185 N Stelling Rd, Quinlan Community Center, Conference Room Thursday,July 18, 2024 4:00 PM Members of the public wishing to observe the meeting may do so in one of the following ways: 1) Attend in person at Quinlan Community Center, 10185 N. Stelling Road 2) The meeting will also be streamed live on and online at https:Hyoutube.com/ecupertinocitycommission Members of the public wishing to comment on an item on the agenda may do so in the following ways: 1) Appear in person at Quinlan Community Center. 2) E-mail comments by 4:00 p.m. on Thursday,July 18 to the legislative body at sustainabilitycommission@cupertino.gov. These e-mail comments will also be posted to the City's website after the meeting. Oral public comments may be made during the public comment period for each agenda item. Members of the audience who address the legislative body must come to the lectern/microphone and are requested to complete a Speaker Card and identify themselves. Completion of Speaker Cards and identifying yourself is voluntary and not required to attend the meeting or provide comments. ROLL CALL APPROVAL OF MINUTES 1. Subject: April 18, 2024 Sustainability Commission Minutes Recommended Action: Approve the April 18, 2024 Minutes A-Draft Minutes POSTPONEMENTS ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the Commission on any matter Page 1 1 SC 07-18-2024 2 of 37 Sustainability Commission Agenda July 18,2024 within the jurisdiction of the Commission and not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will prohibit the Commission from making any decisions with respect to a matter not on the agenda. WRITTEN COMMUNICATIONS STAFF AND COMMISSION REPORTS OLD BUSINESS NEW BUSINESS 2. Subject: New Construction Building Reach Code Alternatives Recommended Action: That the Sustainability Commission Take the Following Actions: 1) Receive report on alternative approaches for building decarbonization policy 2) Recommend that the City of Cupertino replace its current electrification Reach Code for new construction with an alternative regulatory approach Staff Report 3. Subject: Youth Engagement about the Climate Action Plan Recommended Action: Discuss Youth Engagement Opportunities 4. Subject: Zero-emission Vehicles and Chargers, Municipal Plan to Electrify the Fleet Recommended Action: Receive Update FUTURE AGENDA SETTING ADJOURNMENT In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for assistance. In addition, upon request, in advance, by a person with a disability, meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. Any writings or documents provided to a majority of the members after publication of the agenda will be made available for public inspection. Please contact the City Clerk's Office in City Hall located at 10300 Torre Avenue, Cupertino, California 95014, during normal business hours. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section 2.08.100 written communications sent to the Cupertino City Council, Commissioners or City staff Page 2 2 SC 07-18-2024 3 of 37 Sustainability Commission Agenda July 18,2024 concerning a matter on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City's website and kept in packet archives. Do not include any personal or private information in written communications to the City that you do not wish to make public, as written communications are considered public records and will be made publicly available on the City website. Members of the public are entitled to address the members concerning any item that is described in the notice or agenda for this meeting, before or during consideration of that item. If you wish to address the members on any other item not on the agenda, you may do so during the public comment. Page 3 3 SC 07-18-2024 4 of 37 12 CITY OF CUPERTINO CUPERTINO Agenda Item 24-13278 Agenda Date: 7/18/2024 Agenda #: 1. Subject: April 18, 2024 Sustainability Commission Minutes Approve the April 18, 2024 Minutes CITY OF CUPERTINO Page 1 of 1 Printed on 7/11/2024 powered by LegistarTM 4 Attache i@RtIvIf024 37 of DRAFT MINUTES MINUTES OF THE REGULAR MEETING OF THE SUSTAINABILITY COMMISSION April 18, 2024 CUPERTINO Draft Minutes The meeting was called to order at 4:08 p.m. ROLL CALL: Present: Alexander Fung, Susan Hansen (VC), Sonali Padgaonkar (C), Steve Poon, Conny Yang Absent: None Staff: Victoria Morin, Staff Liaison Others Present: Chad Mosley, Director of Public Works, Ursula Syrova, Environmental Programs and Sustainability Manager, Nick Kibilov, Sustainability Fellow APPROVAL OF MINUTES 1. January 18, 2024 Sustainability Commission minutes MOTION:Commissioner Poon moved,seconded by Commissioner Fung to approve the minutes as presented. MOTION PASSED: 5-0 POSTPONEMENTS No Postponements ORAL COMMUNICATIONS None WRITTEN COMMUNICATIONS None STAFF AND COMMISSION REPORTS Victoria Morin, Sustainability Specialist noted that starting with the next Sustainability Commission, all meetings will be live-streamed and held at Quinlan Community Center. There was not going to be remote participation, but anyone was able to watch the meetings live or 1 Sustainability Commission Regular Meeting April 18,2024 5 SC 07-18-2024 6 of 37 recorded. Update two, the next Environmental Recycling Day was April 20, De Anza College, parking lot A from 8 a.m. to 12 p.m. Update three, the City of Cupertino City Council approved the Electrification Study and the Recycled Water Feasibility Study as City Work Program items. Update four, the Environmental Programs Assistant position was open for recruitment. The induction cooking demo happened in coordination with the County of Santa Clara the registration was full. Ursula Syrova, Environmental Programs and Sustainability Manager mentioned that staff was still working on the garbage post-collection management solutions. In preparation for the Advanced Clean Fleet Regulation, the Service Center was working to transition fleet vehicles to Electric Vehicles (EV),including planning for charging stations. Commissioner Poon inquired if the City was required to purchase at least 50% EV's. Chad Mosley, Director of Public Works said 1/1/2024 was the deadline to have 50% EV fleet, 1/1/2027 was the deadline to have 100% EV fleet. Ms. Syrova said the City recently purchased two Ford Lightening F150 trucks,which were all electric.Ms.Morin mentioned the Beam portable charging units that were just received; they were going to be available for use at the Earth and Arbor Day Festival. Commissioner Fung read in the minutes and there was discussion of a Youth Ad Hoc meeting. Vice Chair Padgaonkar hoped there was discussion about this before school started. OLD BUSINESS NEW BUSINESS 2. Election of the Chair and Vice Chair for the Sustainability Commission Victoria Morin, Sustainability Specialist gave a presentation about the Chair and Vice Chair's responsibilities. Commissioner Poon added that the Mayor's meeting was at 5 p.m. Attending the Mayor's Meeting was a duty of the Chair. NOMINATION: Commissioner Fung, seconded by Commissioner Poon nominated Commissioner Padgaonkar as Chair of the Sustainability Commission for 2024. NOMINATION FOR COMMISSIONER PADGAONKAR AS CHAIR OF THE SUSTAINABILITY COMMISSION FOR 2024 PASSED: 5-0 NOMINATION: Chair Padgaonkar, seconded by Commissioner Fung, nominated Commissioner Hansen as Vice Chair of the Sustainability Commission for 2024. NOMINATION FOR COMMISSIONER HANSEN AS VICE CHAIR OF THE SUSTAINABILITY COMMISSION FOR 2024 PASSED: 5-0 3. Update on Building Decarbonization Efforts and Options 2 Sustainability Commission Regular Meeting April 18,2024 6 SC 07-18-2024 7 of 37 Ursula Syrova, Environmental Programs and Sustainability Division Manager gave a presentation on building decarbonization efforts and options. Chair Padgaonkar asked if decarbonization standards were required for remodels as well. Ms. Syrova needed to check. Chair Padgaonkar wanted to know the phone number for the concierge service mentioned in the presentation.Ms.Syrova said the program had not started yet but should be available soon.Chair Padgaonkar asked what Bay Area Renewable Energy Network (BayREN) was. Ms. Syrova explained it was a coalition of Bay Area counties,with a local representative from the County of Santa Clara (County). There were a lot of grant opportunities connected with BayREN, and they had a lot of rebates for people. Commissioner Poon recalled BayREN performed a few workshops,but it was still confusing.He preferred the concierge service method. Vice Chair Hansen questioned if there were solar conversion resources offered with the concierge service. Ms. Syrova only heard talk of the heat pump tech as of now. Vice Chair Hansen mentioned that if everyone converted today there would be a power shortage. Victoria Morin, Sustainability Specialist noted that Pacific Gas&Electric(PG&E) was aware of the grid issues. Commissioner Fung wondered if it was possible to place conditions on new developments,such as performance reviews or benchmarking.Ms. Syrova said the current Reach Code noted all new developments had to be all-electric unless someone asked for an exemption, such as for their restaurant. Commissioner Fung inquired if the nine-circuit decision was going to impact Cupertino's Reach Codes. Ms. Syrova said possibly, that was why staff was exploring an air quality focus or a building performance focus,which was at the development stage. Lausen,public speaker and Sunnyvale resident,wanted to know how much electricity was green energy or what came from solar. Ms. Syrova responded Cupertino and the City of Sunnyvale were under the Silicon Valley Clean Energy umbrella.They purchased green energy for residents unless a person opted out. Ms.Morin suggested some discussion prompts for the Sustainability Commission(Commission) on this subject, to help the Commission think about this item a little more in-depth: 1)Was there anything the Commission thought Cupertino needed to focus on specifically as they did the public engagement survey; 2) Was there something the Commission thought the Cupertino community specifically cared about;3) Regarding the discussion prompts presented on slide 11, were there issues the Commission cared about more than others. Commissioner Fung wanted to know if there were partnerships with the Chamber of Commerce (Chamber) when staff conducted outreach. Ms. Morin asked if Commissioner Fung was asking specifically about the Chamber.The division does not have an agreement with the Chamber.Staff has worked with our Economic Development Manager on outreach, and he works with the Chamber. Commissioner Fung thought it was better to partner with the Economic Development team on the engagement side of things. Ms. Syrova was recently approached by the Economic 3 Sustainability Commission Regular Meeting April 18,2024 7 SC 07-18-2024 8of37 Development Manger regarding hosting a meeting, including inviting businesses, to discuss what rebates were available to them and to help them green their spaces while saving money. Vice Chair Hansen liked the enabling options but promoted solar conversion because then people were likely to convert all their appliances. Ms. Syrova clarified what Vice Chair Hansen was saying,if BayREN and Silicon Valley Clean Energy created these concierge services, they needed to include solar as part of the conversion as well. Vice Chair Hansen said yes. Chad Mosley, Director of Public Works suggested it was the capacity of PG&E to be involved in those projects, there were some long delays right now. Ms. Syrova clarified she was not saying that solar was not able to offset some demand, she was just saying that people were not out of electricity right this minute. Vice Chair Hansen wondered if it could be decreed that people keep their heaters at a certain temperature during the winter. NO ACTION TAKEN 4. 2024 Earth and Arbor Day Festival Nick Kibilov,Sustainability Fellow gave a presentation on the 2024 Earth and Arbor Day Festival. He mentioned a fact sheet that would be provided for people who were going to be working at the booth, and additionally, there was a waste sorting game he debuted. Vice Chair Hansen wanted to know if there was going to be a tree planting on Earth and Arbor Day. Victoria Morin, Sustainability Specialist said the tree planting was at 2 p.m. at Wilson Park. Chair Padgaonkar wondered if there were going to be nametags. Ms. Morin had GreenTeam t- shirts for everyone. NO ACTION TAKEN FUTURE AGENDA SETTING • Youth Engagement Activity • Climate change adult action campaign/hosting a workshop for • Carbon reduction ideas • Opportunities and challenges of recycled water in Cupertino • Discuss zero emission vehicles and chargers. • Municipal plan to electrify fleet • Landfill Agreement/Post-Collection RFP update • Brainstorm funding ideas for the City • Presentation on Recycling: What do we do locally compared to neighboring jurisdictions ADJOURNMENT Meeting adjourned at 5:22 p.m. SUBMITTED BY: 4 Sustainability Commission Regular Meeting April 18,2024 8 SC 07-18-2024 9of37 Victoria Morin, Staff Liaison Note: Any attachments can be found on the Cupertino Website https://www.cupertino.or /og ur-city/agendas-minutes 5 Sustainability Commission Regular Meeting April 18,2024 9 SC 07-18-2024 10 of 37 Sustainability Commission April 18, 2024 1 aj CUPERTINO 10 Chair Elections Victoria Morin �5S.r9s� CUPERTINO m Why are we voting for a Chairperson and Vice Chairperson? 2.94.040 Chairperson. The Commission shall elect its chairperson and vice- chairperson from among its members and shall appoint a secretary. Terms of the chair and vice-chair shall be for one year and shall be complete on January 30th. 12 What is the responsibility of the chair? • Facilitate the Commission Meetings • Start and close the meeting, follow the agenda, call on other commissioners to speak • Work with the Liaison to create the agenda • Represent the Commission at the Mayor' s Commission Meetings (2nd Wednesday every other month) 13 Discussion prompts • Nominate yourself or another member of the commission to be the chair with an explanation why. • Accept or decline the nomination . • More than one nomination can be made. When you are ready, make a motion to vote. 14 Sustainability Commission Agenda Item #3 April 18, 2024 BuildingDecarbonization u date p Ursula Syrova �5-t.r9ss CUPERTINO " ? What is "decarbonization • Carbon-free electric supply + electrified _ things (vehicles, buildings, processes) 'J • We mostly use it to talk about buildings: • Electric heat pump water heaters, space heating/cooling, stoves °I:,°""" eminluunuul, a' 111111klllklllll61111111[FIII. IIII Ik,I,IIkIIIII1111111111Ekllllb I;IIIkiIpFl,II,IIHIIIIIII,lllllllll Illlllllllllllllllllllllllllllllli II In CAP 2.0 as " Cleaningthe Air llllllllllllllllllll!!�"� • �� lllllflllll 1i111141flllllllllllllllllll11 •� IIH ilYl11Il1111H111111111111111111111 by �IINI61'Y1111114111111111klllllll lllll •� �111111111111111111111111kllllllllllll,I,��i ( Renewable Energy and Electrification) BE-2 Residential and BE-3 Commercial '* existin buildings. 16 We have a "reach code" CMC 16.32: Newly constructed a f '� buildings shall be all-electric • Exemption for restaurant stoves allowed d] • If exemption granted , building still must be " electrically pre-wired for future electric appliance installation " 17 The BerkeleygthCircuit Ruling - • Berkeley' s reach code passed in 2019, had no exemption for restaurants • Berkeley was sued by the CA Restaurant ` Association and settled • Banning use of natural gas goes against the federal Energy Policy and Conservation Act ( EPCA)from 1975 18 New BAAQMD Regulations Bay Area Residential Natural Gas Combustion NOx Emissions in For air quality 2019 • Buildings: >25% of all NOx emissions • Zero NOx water heaters starting 1 / 1 /2027 • Zero NOx furnaces starting 1 / 1 /2029 ■.space Heating ■Water Heating Cooking Other 19 Other options for encouraging decarb ❑ Use air quality-based requirement (e.g . no NOx-emitting appliances) ❑ Pass a building energy performance requirement _ ❑ Explore other enabling actions: • Streamlined permitting, creating triggers for electric readiness, - �f promote rebates, etc . 20 Next steps • Review/update Reach Code with CAO direction • Community engagement including survey and workshops • Support SVCE and BayREN " concierge" type heat pump installation service for future • Promote rebates that are available now from BayREN , SVCE, PG&E • Decarbonization Work Program item FY 24-25 21 Discussion Prompts • Which of the options from slide 11 resonate with you and why? • Are there any specific considerations that should be taken for Cupertino residents and businesses? 22 Sustainability Commission Agenda Item #4 April 18, 2024 Earth and Arbor Day Festival Nick Kibilov �5-t.r9ss CUPERTINO 2024 Festival Review riy. • Estimated 4,000 attendees • 135 volunteers l • 95 tabling partners • 7 Performances + Tabling Speakers • Sponsors: , SILICON VALLEY VaLLey Water CLEAN ENERGY �� WTte Hea hY ,o me, Flootl Pro 2ctlon aye ye .. mattress AiiiI A Program oY the Mattress RecYGin9 Council• ,i{ SAN JOSE Recology �— cU ert no I 1 STAR ONE WATER WASTE ZERO 24 Getting there /Rapper r Saturday, April 20 DOiM (M e 11 a.m. to 3 p.m. kIc SikAIION C3 C2 a �'� B nilor C3 Cd Cupertino Library Field C5 n ca C6�' �h u• -�- airy, i C9 CIO cii ciz • Sustainability Commission booth will be table 131 °4 F2 � � C3 ❑A F2 • � D5 ❑fi F3 - - - F5 • City Center Parking Garage Y 09 DID 2 dining oii oiz 20350 Stevens Creek Blvd - °"°'" I7 + � oss ois k8 Y m�ois oi9 oQa Climbing waif 25 Sustainability Commission Booth Morning Shift: 10:30 a.m. - 12:45 p.m. • Susan Hansen - • Alex Fung Afternoon Shift: 12:45 — 3:00 p.m. • Conny Yang • Sonali Padgaonkar �' RIF tlPPY SIOPAV When In da.bf,9 kEcyclable fhfawlf of k empf, Z Clem 26 Talking Points & Activities • Climate Action Planning (CAP) share relevant City programs & policy information • Tips to reduce your footprint ' guided activity • Waste Management guided waste sorting game with prizes 27 Game time ! Waste Sorting SC 07-18-2024 29 of 37 12 CITY OF CUPERTINO CUPERTINO Agenda Item 24-13279 Agenda Date: 7/18/2024 Agenda M 2. Subject: New Construction Building Reach Code Alternatives That the Sustainability Commission Take the Following Actions: 1) Receive report on alternative approaches for building decarbonization policy 2) Recommend that the City of Cupertino replace its current electrification Reach Code for new construction with an alternative regulatory approach CITY OF CUPERTINO Page 1 of 1 Printed on 7/11/2024 powered by LegistarT" 29 SC 07-18-2024 30 of 37 CITY OF PUBLIC WORKS DEPARTMENT CITY HALL 10300 TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408) 777-3354 • FAX: (408) 777-3333 CUPERTINO CUPERTINO.ORG SUSTAINABILITY COMMISSION STAFF REPORT Meeting:July 18, 2024 Subject New Construction Building Reach Code Alternatives Recommended Action That the Sustainability Commission take the following actions: 1) Receive report on alternative approaches for building decarbonization policy. 2) Recommend that the City replace its current electrification reach code for new construction with an alternative regulatory approach. Reasons for Recommendation In April 2023,the Ninth Circuit Court of Appeals found the City of Berkeley's natural gas ban ordinance was preempted by the federal Energy Policy and Conservation Act (EPCA). On January 2,2024, the Ninth Circuit affirmed the April 2023 decision and denied a petition for rehearing en banc. In response to the decision, the Court has determined that cities may not prevent natural gas connections or gas appliances. Given that ruling and the potential legal challenge to Cupertino Municipal Code Chapter 16.32: Local Sustainability Requirements for Newly Construction Buildings' (aka "reach code"), Cupertino has suspended enforcement of Chapter 16.32, and all new construction projects are now able to use natural gas appliances.There are options to continue working toward Cupertino's climate action goals,which include the repeal and replacement of the City's adopted reach code with an alternative approach. Background Cupertino's Previous Reach Code Initiative On December 17, 2019,the City Council voted unanimously to approve an electrification reach code,which became effective January 1, 2020, and was approved again for the 2022 Building Code cycle (Ord.22-2245,2022). The reach code applied to new construction and major remodels for residential buildings defined as new construction. with exemptions for commercial cooking, cases where there is not an all-electric compliance pathway for the building under the Energy Code,emergency facilities, and 1 Text of CMC 16.32 online. 30 SC 07-18-2024 31 of 37 hotels and motels with eighty or more units for commercial clothes drying equipment. The following table summarizes the key differences between the 2022 State Building Code and Cupertino's reach code: Appliance 2022 State Code Cupertino Reach Code Water Heating Gas or Electric Electric Required (All Buildings) Space Heating Encourages Electric Electric Required (All Buildings) Cooking Gas or Electric Electric(Exemptions for Restaurants) Outdoor kitchens and N/A Electric Required fire laces Clothing Drying Gas or Electric Electric(Exemptions for Hotels) Ninth Circuit Ruling on Berkeley's Gas Ban and Electrification Reach Codes In April of 2023, a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit held that the plain text and structure of the Energy Policy and Conservation Act(EPCA) preempts local ordinances "concerning the energy use" of natural gas appliances, including Berkeley's ordinance prohibiting natural gas piping into new buildings and thereby preventing those appliances from using natural gas. On January 2,2024, the U.S. Court of Appeals for the Ninth Circuit denied Berkeley's request for review by the full Ninth Circuit, and the panel's decision was reaffirmed. On May 2,2024, the City received a letter from the attorneys representing the California Restaurant Association (CRA) offering the opinion that Cupertino's reach code is functionally indistinguishable from Berkeley's Ordinance and is therefore not enforceable. Even though Cupertino's reach code offers an exemption for commercial kitchens,the City Manager, on the advice of the City Attorney, determined that it was in its best interest to suspend enforcement of the electrification requirements of the reach code. The suspension went into effect on May 15,2024, and the City responded to the CRA with that information,but also stated that the City continues to be concerned about the adverse health and environmental impacts of natural gas in homes and other buildings and intends to develop a new ordinance that advances the City's adopted policy of pursuing building electrification. Discussion The City is researching regulatory approaches that would maximize environmental gains and continue to work toward climate action plan goals while remaining legally defensible. Staff requests the Sustainability Commission's approval of the plan to bring a workable alternative to the reach code to Cupertino City Council, as opposed to repealing the current code.The option to repeal, as well as two possible regulatory approaches currently under consideration are presented here. 2 31 SC 07-18-2024 32 of 37 Option 1: Repeal Existing Reach Code,Take No Further Action The Commission may advise repealing Cupertino's reach code that prohibits gas appliances and taking no further action at this time.Allowing gas appliances would satisfy the ruling of the Berkley decision;however,it would not advance the City's sustainability goal of reducing greenhouse gas emissions and protecting indoor air quality for the health of residents and workers. Option 2: Energy Performance Standards Approach An alternative approach to a reach code is the implementation of more stringent energy efficiency criteria, leveraging Title 24,Part 6, of the California Building Standards Code. By setting high performance standards for energy use in new construction and major remodels,buildings are encouraged to adopt all-electric designs to meet the required benchmarks. This approach thus encourages electrification, reducing greenhouse gas emissions and improving overall energy efficiency;however, it does not require electrification. Energy Performance Standards can apply only to water heaters and space heating and/or space cooling systems, as those are already regulated by the California Energy Commission,but cannot regulate other appliances (e.g. stoves, ovens, and gas fireplaces). This approach mitigates legal risk by allowing the use of natural gas, as long as the overall energy efficiency of the building meets the compliance margin. This approach requires extensive energy efficiency analysis and will make the building permit review process more complex,requiring additional energy efficiency calculations and reviews. In addition,this approach requires the preparation of a cost effectiveness study by the City and review and approval by the California Energy Commission(CEC). This approach has been taken by other cities including San Jose, Santa Cruz, Los Altos, Piedmont, Santa Clara, and South San Francisco. Option 3:Air Quality Approach Another alternative approach to requiring building electrification is to incorporate a ban on nitrogen oxides (NOx)-emitting equipment inside new buildings. Zero NOx-emitting equipment is defined as any equipment or appliance that emits 0.0 nanograms of nitrogen oxides. Currently,there are no gas appliances that meet this standard. Emissions from natural gas building appliances account for a similar amount of NOx pollution as passenger vehicles in the Bay Area.As a group,building appliances are one of the largest emitters of NOx and are known to contribute significantly to the formation of ground-level ozone and particulate matter(PM2.5) in buildings. Exposure to NOx has been linked to coughing,wheezing, difficulty breathing, asthma, and increased susceptibility to respiratory infections. Exposure to particulate matter has been linked to asthma and other respiratory conditions,neurological disease,heart attack, stroke,lung cancer, and premature death. 3 32 SC 07-18-2024 33 of 37 By focusing on air quality improvements, the City could mandate that all new construction and major remodels utilize only NOx-free appliances and heating systems, thereby eliminating a significant source of indoor air pollution. Zero NOx-emitting equipment can apply to all appliances (e.g. space heating,water heating, cooking, clothes drying). This air quality-based approach has been pursued by cities of Campbell and Los Altos Hills, as well as the Bay Area Air Quality Management District(BAAQMD). BAAQMD's regulations state that only zero-NOx electric water heaters can be sold or installed in Bay Area homes or businesses starting in 2027, and furnaces starting in 2029. Large commercial water heaters will need to be zero-emissions by 2031. BAAQMD estimates that these amendments could prevent up to 85 premature deaths per year, avoid up to $890 million per year in health impacts, and decrease exposure to PM2.5,especially in communities of color. A summary of the options going forward, and the pros and cons of each,is summarized below for ease of reference and comparison. Option Pros Cons 1. Repeal parts of • Avoids legal risk Allows for continued use of the existing reach natural gas, contributing to code and allow greenhouse gas emissions and natural gas in new poor air quality. buildings and major remodels. 2. Repeal parts of Uses established Requires cost effectiveness the existing reach processes through Title study and California Energy code and replace 24 of the California Commission approval. with an alternative Building Standards • Requires additional resources Reach Code using Code. and adds complexity during Energy implementation. Performance • Doesn't address stoves, Standards. dryers, fireplaces,pool heating,etc. Only addresses space and water heating. • Doesn't prohibit new gas infrastructure. 4 33 SC 07-18-2024 34 of 37 3. Repeal the • Covers any appliance • Novel approach. existing reach that uses gas and emits • Doesn't prohibit new gas code and adopt an NOx. infrastructure. ordinance to • Simple to enforce and regulate air conforms with quality by upcoming BAAQMD requiring zero regulations. NOx-emitting • Does not require a cost appliances. effectiveness study or California Energy Commission approval. • Can be an amendment to the City's Title 6, meaning this would not be a reach code. Staff Recommendation and Next Steps Staff recommends moving forward with development of an alternative regulatory approach to building electrification to continue working toward the City's climate action plan goals and for the protection of public health. There is still research to be done about which approach will best achieve those goals, and staff plans to explore the options described above or other options that may be developed that will provide the desired outcomes.The next planned steps are to conduct the necessary consultation and research, develop regulatory language, and bring a draft ordinance to City Council in the fall. Sustainability Impact Pursuing a regulatory alternative to the City's current suspended reach code would align with our City's Climate Action Plan (CAP)2.0 and sustainability initiative to reduce greenhouse gas emissions.The CAP 2.0 does not specifically address a new construction building code as an action item because the reach code was adopted before CAP 2.0 was developed. Reducing NOx emissions aligns with the CAP's target to decrease local air pollutants that affect respiratory health.Additionally,transitioning to electric appliances helps decrease reliance on fossil fuels, further reducing the city's greenhouse gas emissions. Finding an alternative to the current code that achieves desired outcomes not only contributes to achieving the CAP's sustainability objectives but also sets a standard for progressive environmental practices in the region. Fiscal Impact No fiscal impact. 5 34 SC 07-18-2024 35 of 37 California Environmental Quality Act Not applicable. Prepared by: Victoria Morin, Sustainability Specialist Reviewed bv: Ursula Syrova, Environmental Programs and Sustainability Manager Approved for Submission by: Chad Mosley,Director of Public Works 6 35 SC 07-18-2024 36 of 37 12 CITY OF CUPERTINO CUPERTINO Agenda Item 24-13280 Agenda Date: 7/18/2024 Agenda M 3. Subject: Youth Engagement about the Climate Action Plan Discuss Youth Engagement Opportunities CITY OF CUPERTINO Page 1 of 1 Printed on 7/11/2024 powered by LegistarTM 36 SC 07-18-2024 37 of 37 12 CITY OF CUPERTINO CUPERTINO Agenda Item 24-13281 Agenda Date: 7/18/2024 Agenda #: 4. Subject: Zero-emission Vehicles and Chargers, Municipal Plan to Electrify the Fleet Receive Update CITY OF CUPERTINO Page 1 of 1 Printed on 7/11/2024 powered by LegistarTM 37