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SC 10-24-2019 (Special)CITY OF CUPERTINO SUSTAINABILITY COMMISSION AGENDA Environmental Education Center, 22221 McClellan Road Thursday, October 24, 2019 4:00 PM Special Meeting NOTICE AND CALL FOR A SPECIAL MEETING OF THE CUPERTINO SUSTAINABILITY COMMISSION NOTICE IS HEREBY GIVEN that a special meeting of the Sustainability Commission is hereby called for Thursday, October 24 , 2019, commencing at 4 :00 p.m. at the Environmental Education Center, 22221 McClellan Road, Cupertino, California 95014 . Said special meeting shall be for the purpose of conducting business on the subject matters listed below under the heading, “Special Meeting ." SPECIAL MEETING PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF MINUTES 1.Subject: Minutes from September 19, 2019 Recommended Action: Approve minutes from September 19, 2019 A - Draft Minutes POSTPONEMENTS ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the commission on any matter 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 listed on the agenda WRITTEN COMMUNICATIONS OLD BUSINESS 2.Subject: Discuss policy options on green building code local amendments, including regional building electrification reach codes and consideration of CALGreen Tier 1 and 2 options Page 1 Sustainability Commission Agenda October 24, 2019 Recommended Action: Recommend that City Council adopt the proposed policies on green building reach codes Staff Report A - Staff Report 9.10.19 Planning Commission Meeting B - Staff Presentation 9.10.19 Planning Commission Meeting C - SVCE Presentation 8.29.19 Sustainability Commission Meeting NEW BUSINESS 3.Subject: Presentation from staff on draft Climate Action Plan progress report Recommended Action: Receive presentation and provide any input to staff on draft report STAFF AND COMMISSION REPORTS ADJOURNMENT In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend the next 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, 48 hours in advance of the meeting to arrange for assistance. 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. Also upon request, in advance, an assistive listening device can be made available for use during the meeting. 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 during normal business hours. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code 2.08.100 written communications sent to the Cupertino City Council, Commissioners or City staff 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. You are hereby admonished not to include any personal or private information in written communications to the City that you do not wish to make public; doing so shall constitute a waiver of any privacy rights you may have on the information provided to the City . 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 2 CITY OF CUPERTINO Legislation Text Subject: Minutes from September 19, 2019 Approve minutes from September 19, 2019 File #:19-6363,Version:1 CITY OF CUPERTINO Printed on 10/21/2019Page 1 of 1 powered by Legistar™ 1 CITY OF CUPERTINO SUSTAINABILITY COMMISSION Environmental Education Center, 22221 McClellan Road Thursday, September 19, 2019 4:00 p.m. MINUTES PLEDGE OF ALLEGIANCE At 4:02 p.m. Chair Weber called the meeting to order and led the Pledge of Allegiance. ROLL CALL Commissioners Present: Anna Weber, Gary Latshaw, Vignesh Swaminathan, Meera Ramanathan (arrived @ 4:05 p.m.). Absent: Angela Chen. Staff: André Duurvoort, Sustainability Manager; Alex Wycoff, Environmental Programs Specialist; Gilee Corral, Sustainability Program Coordinator Guests: Cheri Donnelly 1. APPROVAL OF MINUTES Draft minutes of August 29, 2019 meeting were reviewed. Commissioner Swaminathan moved and Vice-Chair Latshaw seconded to approve the minutes. The motion carried unanimously with Commissioner Chen absent. POSTPONEMENTS - None. ORAL COMMUNICATIONS - None. WRITTEN COMMUNICATIONS - None. Chair Weber moved and Commissioner Swaminathan seconded to reorder the agenda items as follows: Item #5 then agenda resumption at Item #2. The motion carried unanimously with Commissioner Chen absent. NEW BUSINESS 5. Subject: Presentation from Public Works staff on Recology's recycling processing cost increase Alex Wycoff gave a brief overview of China’s National Sword policy and explained how the policy is affecting our franchise agreement with Recology. China has established a limit of 5% contamination for recyclables, which affects paper the most because of moisture. Recology is seeing reduced revenue depending on the level of contamination, and if the contamination exceeds 20%, Recology must pay to have the waste processed. Recology is requesting renegotiation on the franchise agreement to address increased costs in excess of $400,000. Staff is reviewing Recology’s records to ensure the totals reflect increased costs rather than reduced revenue; staff expects to have the final figures in November. The Commission asked questions and discussed the issues with staff: • Staff and Commissioners discussed Zero Waste as a best practices strategy to combat these international risks. • “Empty, clean, and dry” is the message for recycling to prevent contamination. 2 • Cheri Donnelly noted that the City is exploring other possibilities as part of this larger discussion on waste, including dual stream and reviewing the Sunnyvale Smart Station as an option. • The Commissioners briefly discussed organics and potential of switching to a split bin system. • Commission agreed to integrate this issue into the Commissioners’s talking points for the Zero Waste event on Monday. OLD BUSINESS 2. Staff update on reach building codes adoption process, continue discussion on electrification reach codes and CALGreen Tier 1 and 2 options, and provide any feedback to staff André Duurvoort gave an update on the reach code process and answered questions from Commissioners. Locally, cities are adopting more aggressive reach codes (i.e. Menlo Park and San José), but limiting the scope to newly constructed buildings. The Commissioners discussed this topic and related concerns and issues: • New vs renovation: Commissioner Swaminathan noted that with tear down / rebuilds, people may be incentivized to leave a section of the house standing to avoid triggering the reach code. Staff will clarify if the reach code would apply to major remodels and at what point the remodel becomes a new construction. • Gas ban vs mixed fuel reach code: Vice-Chair Latshaw asked for clarification between an outright ban on natural gas and the term “all-electric reach code.” Duurvoort explained that the difference is that the reach code is utilizing the building code, whereas a Berkeley-style ban is using a different process. Cupertino is unlikely to achieve cost effectiveness in our climate zone with an all-electric reach code. • Electric vehicle infrastructure: brief discussion on whether “EV capable” would be enough to incentivize multifamily residents to purchase electric vehicles or if equipment should be installed as a requirement; issues with cost effectiveness for high rise multi-family. • Topics raised from Planning Commission meeting: ADUs, productive roofs, CALGreen Tier 2, off grid considerations, restaurants / electric cooking, gas ban, Level 3 charging. • Upcoming meetings: Oct. 9-11 “Getting to Zero” forum in Oakland, Home Electrification Expo – Oct. 10 in Palo Alto, Oct. 12 in San José. • Oct. 16th public meeting: staff intends to have the draft ordinance ready for review by the Reach Code Subcommittee prior to this public meeting. Duurvoort reviewed the timeline and approval process for the reach code. Commissioner Swaminathan will reach out to developers to come to this Oct. 16 meeting and encourage industry representatives to contact Duurvoort for 1-1 meetings as well. • Other issues and clarifications: rural residents could still purchase propane tanks under the new code; discussed alignment with our neighboring cities, understanding that developers will likely default to the most stringent codes in our area. Commissioner Swaminathan raised a concern of the reach codes increasing the cost of housing and adversely contributing to the Bay Area housing shortage and cost of single-family home construction. He noted that increased costs to developers are pricing out higher rise multifamily construction. He expressed that although he wants the environmental benefits of a reach code, he is concerned that stricter regulations will negatively affect the ability of young people to live in Cupertino. The Commission expressed general sympathy for Swaminathan’s point and discussed the complexities of this issue and trade-offs: 3 • How can cities address the NIMBY (Not In My Back Yard) issues related to housing development but also encourage greener building? • How can policy change the whole production system to become more sustainable? • Does all electric code actually increase cost and price out development? Staff noted that reach code must meet cost effectiveness, and the all electric building types are cheaper to develop at the onset due to a savings in not having to run a gas pipeline to the property. Staff noted that these issues, benefit to society, cost effectiveness, are being considered. • Commissioner Ramanathan encouraged staff to help developers reach our goals through awareness of rebates and Property Assessed Clean Energy (PACE) financing. Commissioner Ramanathan moved and Vice-Chair Latshaw seconded to notice the October 16th building reach codes public meeting as a Special Meeting of the Sustainability Commission. The motion carried unanimously with Commissioner Chen absent. Staff will meet with the Reach Codes Subcommittee before Oct. 16 to discuss the talking points and logistics. 3. Subject: Sustainability Speaker Series Zero Waste home event update and planning for next event • Staff will set up a photo op session in the beginning of the Zero Waste event before the speech. • Commissioner Swaminathan will speak on the China ban issues and connection to Zero Waste. • The Commission is interested in exploring an event co-hosted with the City of Sunnyvale; agreed to invite a Sunnyvale staff member to discuss this at the November meeting. Commissioner Swaminathan moved and Vice-Chair Latshaw seconded to cancel the October 17th Sustainability Commission Special Meeting and reschedule the Special Meeting for October 24th. The motion carried unanimously with Commissioner Chen absent. 4. Subject: Student Green Grants project planning The Commission discussed the draft guidelines document and agreed the following changes: • Change wording on presentation to make it an opportunity instead of a requirement. • Change wording of tabling at the Sustainability Commission table and make it an opportunity instead of a requirement. Staff will finalize the documents and work on distribution of the invitation to apply. Winners for the grants will be determined at the November Commission meeting. STAFF AND COMMISSION REPORTS Commission and Subcommittee updates: • Commissioner Swaminathan announced that a grand jury sued the VTA for not building enough transit and not meeting goals; he also reported on a recent conference he attended. • Gilee Corral clarified that the Commission must form a new subcommittee for each project. Commissioner Swaminathan moved and Vice-Chair Latshaw seconded to establish a Green Grants Subcommittee with Chair Weber and Commissioner Ramanathan as members. The motion carried unanimously with Commissioner Chen absent. Staff updates: 4 - Sep. 3 Ground Stormwater Infrastructure Plan was adopted by Council on consent. - Sep. 14 Fall Festival: staff and Commissioner Latshaw tabled, over 100 attendees at Sustainability / Environmental table. - Oct. 7 Commissioners dinner – 6:00 p.m. to 9:00 p.m., RSVP by Sep. 30 to colleenf@cupertino.org or 408- 777-3163. - Oct. 19 Harvest Festival – Environmental team will table. ADJOURNMENT- 6:34 p.m. CITY OF CUPERTINO Legislation Text Subject: Discuss policy options on green building code local amendments, including regional building electrification reach codes and consideration of CALGreen Tier 1 and 2 options Recommend that City Council adopt the proposed policies on green building reach codes File #:19-6366,Version:1 CITY OF CUPERTINO Printed on 10/21/2019Page 1 of 1 powered by Legistar™ SUSTAINABILITY COMMISSION STAFF REPORT Meeting: October 24, 2019 Subject Discuss policy options on green building code local amendments, including regional building electrification reach codes and consideration of CALGreen Tier 1 and 2 options. Recommended Action Recommend that City Council adopt the proposed policies on green building reach codes. Summary of Staff Policy Recommendation Staff recommends a mostly-electric residential reach code to limit natural gas to only cooking, outdoor, and fireplace use for residential low-rise new construction.1 This would require space heating and water heating to be electric (not natural gas). This is simple for permit applicants and community to understand, and allows the consumer the option for cooking with natural gas to continue if desired. It also will guarantee significant greenhouse gas reductions. Studies show that the significant capital and operating cost savings for all-electric construction will be attractive for developers and therefore offer a market-based incentive for the all-electric building. Staff recommends a non-residential reach code that would encourage all-electric construction, but still allow for mixed-fuel buildings that meet additional energy efficiency requirements as detailed in the Silicon Valley Clean Energy (SVCE) model code and found to be cost-effective by the Statewide studies and by Cupertino’s engineering consultant. The non-residential code provisions would apply for commercial and multi- family buildings above 3 stories tall. Staff further recommends adopting additional electric vehicle (EV) charging infrastructure requirements under the reach code as shown by the Silicon Valley Clean Energy model code. Cupertino has demonstrated strong consumer support for electric transportation, and a local building code requirement will address the systemic barriers for more equitable and widespread adoption of electric passenger vehicles, especially in new multifamily developments. 1 The Cupertino Building Division further defines the scope of new construction as more than 75% of the existing exterior walls, footing, and roofing in a major residential remodeling project. See https://www.cupertino.org/home/showdocument?id=8565 2 Staff also studied the CALGreen Tier 1 and Tier 2 voluntary measures for further environmental performance. However, staff found that the existing Cupertino green building ordinance, which requires third-party green building certification (LEED or GreenPoint Rated) for new construction is already quite robust, and therefore would not be enhanced by any of the CALGreen voluntary tiers. Although an outright natural gas ban is not feasible through this reach code process, there is interest in the community to consider this option. Therefore, staff recommends that the Sustainability Commission take on the discussion of a natural gas ban in its FY 2020/21 Work Program. This report includes an overview of the Statewide cost-effectiveness study, details findings specific to Cupertino, and provides the policy context for the proposed reach codes for the 2019 building cycle. Background The Cupertino City Council took a leadership position when a study of reach codes was included in its FY 2019-20 adopted City Work Program. Staff in the Sustainability and Building divisions are leading the reach code process. The Sustainability Commission’s adopted FY 2019-20 Work Program includes reviewing green reach codes and making a recommendation to Council. The Sustainability Commission has formed a sub-committee to work on this project. The interim City Manager signed a Letter of Intent in April 2019 committing City Staff to participating in the model code development process led by Silicon Valley Clean Energy (SVCE) with the intent of adopting the model code as may be adapted based on local needs and objectives. City Policy Context The Cupertino City Council approved a Green Building Ordinance in 2012, effectively a green building reach code as described in the City Municipal Code chapter 16.58.220. This ordinance requires that new residential projects of nine or more units obtain LEED for Homes or Green Point Rated certification and that non-residential projects larger than 25,000 square feet obtain LEED Certification. Major renovations of residential development of 35,000 square feet or greater are required to earn Green Point Rated or LEED certification and non-residential development of 35,000 square feet or greater are required to earn LEED certification. The City Council also adopted a Climate Action Plan (CAP) in 2015. The CAP is a strategy to put Cupertino on the path to achieve a 15% reduction in carbon emissions by the year 2020, 49% reduction by 2035 and 83% by 2050. The plan builds on the City’s broad past and ongoing environmental efforts and identified opportunities of additional action to 3 achieve emissions reduction and support sustainable programs and practices in the City. The first goal of the Cupertino Climate Action Plan is to increase energy efficiency in homes and buildings, and increase use of renewable energy community-wide. Electric buildings are effectively carbon emissions-free given the 100% clean energy supply from SVCE. In addition, the Cupertino City Council adopted a climate emergency declaration on September 18, 2018, calling for an emergency mobilization effort to end citywide greenhouse gas emissions as quickly as possible, educate residents about climate change, and work to advocate for a mass mobilization effort at the local, state, national, and global level. Findings from the 2018 Cupertino Community Greenhouse Gas Emissions Inventory The City of Cupertino Sustainability Division completes an inventory of greenhouse gas emissions every 3 years. The 2018 inventory makes several findings related to the energy sector trends as shown in Table 1, below. Community-wide natural gas emissions increased 14% from 2010 to 2018 and increased 34% from 2015 to 2018. Natural gas emissions made up 38% of Cupertino’s total community-wide emissions in 2018. Furthermore, the City studied the greenhouse gas emissions forecast for the years from 2010-2050. It was found that local emissions reduction policies are needed (beyond the adopted State policies) between now and 2035 in order to achieve the targets set in Cupertino’s CAP. This finding supports the proposed reach code addressing fossil fuels used in buildings and transportation. Figure 1. Cupertino City-Wide Greenhouse Gas Emissions by Sector, 2018. 4 Table 1. Summary of Key 2010-2018 Community-Wide Emissions Trends Emissions Sector Summary of 2010-2018 Trends Energy Energy emissions decreased 40% from 2010 to 2018. This trend in the energy sector is largely driven by a 95% decrease in total electricity emissions. The launch of Silicon Valley Clean Energy (SVCE) is largely responsible for this decrease in electricity emissions. Transportation Transportation emissions decreased 10% from 2010 to 2018. An 8% increase in total vehicle miles travelled (VMT) was offset by a 17% improvement in on-road vehicle fuel efficiency. Reach Code Scope and Adoption Process The California Building Standards Code (the “Standards”) govern the design and construction of buildings and are enforced by the City’s code enforcement officers. Each local government is required by law to adopt updates to the California Building Standards Code every three years. The next code cycle will take effect and be enforced for buildings seeking a construction permit after January 1, 2020. The Cupertino City Council voted to conduct a first reading of the 2019 California Building, Residential, Electrical, Mechanical, Plumbing, Energy, Fire, Historical Building Code, Existing Building Code, Referenced Standards Code, and Green Building Standards Code with certain exceptions, deletions, modifications, additions and amendments at the October 15, 2019 meeting. The State also allows local building code amendments, known as reach codes, that are optional and exceed State standards. Historically, some jurisdictions have adopted amendments to the energy (Title 24, part 6) and green building standards (Title 24, part 11) to meet local climate and environmental goals. These reach codes must be adopted by the City Council and filed with the State before they can be enforced. In addition, the California Energy Commission (CEC) requires that a cost-effectiveness study be conducted and filed in the case of local amendments to the Energy Code (Title 24, Part 6). It is required that the City demonstrate to the CEC, using a cost-effectiveness study, that the amendments to the code are financially responsible and do not represent an unreasonable burden to the non-residential and residential applicants. A cost- effectiveness study is not required for amendments to the Green Building Code (CALGreen). Even though a cost-effectiveness study is not required for local amendments for CALGreen, SVCE has provided a study on the development costs associated with requiring additional electric vehicle charging infrastructure, which is detailed below. There are currently 50+ cities in California considering or that have adopted reach codes for the next code cycle including Menlo Park, San José, Mountain View, Berkeley, and Palo Alto. This is a marked increase in interest compared to previous code cycles. 5 Model codes and technical guidance are provided by the California Energy Commission and Silicon Valley Clean Energy, the regional community choice electricity provider. Staff has also engaged a consultant to provide analysis for the green building reach options. Table 2. Selected California Cities Code Comparison Matrix as of 10/20/2019. Courtesy of Building Decarbonization Coalition. 6 Table 3. Santa Clara County Code Comparison Matrix as of 10/21/2019. Courtesy of Silicon Valley Clean Energy. Building Reach Code Options defined by: (1) All-Electric inside the building, may still have gas for outdoor applications, unless otherwise restricted. (2) High Reach (electric + natural gas inside), If allowing this option, it is typically paired with a requirement to pre-wire for future electric appliances, an increase in energy efficiency requirements, or an energy resource such as solar thermal or battery storage. (2A) Mostly Electric (electric, except for gas cooking and/or gas drying); If allowing this option, it is typically paired with the requirement to pre-wire at the stove and dryer for future electric appliances. Public Outreach The Sustainability Commission discussed reach codes at its August 29, 2019 meeting and provided feedback to staff to consider options that might encourage higher tiers of green building performance such as CALGreen Tier 1 or Tier 2, or some combination of both, as well as building electrification and additional infrastructure for electric vehicle (EV) charging. At this meeting, commissioners generally expressed a desire to push toward more aggressive all electric measures, but to consider the implications for home renovation and housing affordability. 7 A reach codes outreach website was posted to the Cupertino.org website in September 2019. The website directs interested members of the public to the outreach calendar, regional resources, as well as offers direct contact information for stakeholders to contact the Sustainability division staff in order to provide feedback. In addition, Staff in the Cupertino Building, Planning, and Economic Development divisions have conducted direct outreach for stakeholders in the business, development, architectural/engineering communities. Since the publishing of the website, Sustainability Division staff have had direct stakeholder conversations with two business representatives including a code consultant and a property developer, and have received interest from several others in the development community. A presentation on reach codes, the Cupertino Climate Action Plan, and the most recent community greenhouse gas inventory was provided to the Planning Commission on September 10, 2019. At this meeting Planning Commissioners and the public provided feedback to staff. The approved minutes and video recording of that meeting is available for review. The Planning Commissioners provided feedback and questions on topics including ADUs, productive roofs, CALGreen Tier 2, off grid considerations, restaurants and electric cooking, gas ban, and Level 3 electric vehicle charging. The Cupertino Sustainability Commission again took up the discussion of reach codes in the September 19, 2019 public meeting. Details of the Silicon Valley Clean Energy reach code were discussed including “all-electric” vs. “electric-preferred,” gas ban, and other alternatives being pursued by cities in the region. Staff have worked closely with the Commission's reach code subcommittee to discuss policy options and guide outreach efforts. At the October 15th City Council meeting, the Chief Building Official presented statewide building standards slated for adoption; staff answered Council questions on the reach code process at this meeting. The video recording of that meeting is available for review. The Sustainability Commission reach codes subcommittee hosted a public workshop event on October 16, 2019. A presentation was delivered to the public and table-top discussions were held. Approximately twenty members of the public attended the workshop, including members of the real estate development, architectural, and engineering community, interested residents of Cupertino, corporate representatives, and sustainability advocates. Statewide Cost-Effectiveness Study for Energy Code Reach Codes Funded by the California investor-owned utilities (IOUs), the California Statewide Codes and Standards Program (Statewide Program) led the development of a cost-effectiveness study for energy code reach codes that examined different performance-based approaches for new construction of specific building types. There are two kinds of reach code 8 approaches: performance-based ordinances and prescriptive ordinances. Performance- based ordinances mandate an increase in the overall energy efficiency required but leave flexibility for the builder on how to achieve this goal. In contrast, prescriptive ordinances mandate implementation of a specific measure (such as solar panels or cool roofs). The Statewide Program’s analysis focused on performance-based ordinances but some conclusions about prescriptive measures can be made from the results. Building Prototypes The Statewide Program’s analysis estimated cost-effectiveness of several building prototypes including one-story and two-story single-family homes, a two-story multifamily building, a three-story office building, a one-story retail building, and a four - story hotel. The single-family homes and office building prototypes are directly applicable to Cupertino development. Notably, it was found that all-electric residential construction provides both capital cost and ongoing operating cost savings to the home owner in our climate zone. The Statewide cost effectiveness studies are available for review. In addition, Cupertino staff engaged an engineering consultant to provide further study for building types that may be more representative of buildings seeking permits for construction in the City of Cupertino during the next 3 years. The consultant study found that there are several commercially-available measures that could be mixed and matched by developers to achieve the recommended percent better than code in the case of a mixed-fuel building. Table 4. Building prototypes studied by Cupertino engineering consultant for energy reach code options Parameter Hotel Baseline Office Baseline Mixed-Use 1 Baseline Mixed-Use 2 Baseline Occupancy Hotel Rooms, Lobby, Retail, Gym, Laundry Open Office Residential, Lobby, Dining, Office, Laundry Residential, Retail, Lobby, Lounge, Gym Stories/Units 5 Floors 144 guest rooms 4 Floors 4 Floors 150 Units 22 Floors 80 Units Total SF 100,000 71,500 175,000 110,000 Location Cupertino, CA Cupertino, CA Cupertino, CA Cupertino, CA Weather File San Jose International Airport San Jose International Airport San Jose International Airport San Jose International Airport Climate Zone Title 24 Climate Zone 4 Title 24 Climate Zone 4 Title 24 Climate Zone 4 Title 24 Climate Zone 4 All-Electric Buildings Offer Consumer and Environmental Benefits All-electric buildings are one of the key strategies to decarbonizing Cupertino’s building stock, as found in the most recent greenhouse gas inventory discussed above. The State’s 9 electric system is rapidly becoming cleaner, driven by escalating renewable portfolio standards and cleaner product by Silicon Valley Clean Energy, the retail provider for electric accounts in Santa Clara County. In addition, advances in electric heat pumps and other electrical equipment are yielding much higher overall efficiencies than their natural gas counterparts. Electric heat pumps, unlike traditional electric resistance heaters, do not generate heat, but concentrate and transfer it for end uses such as space conditioning/heating and water heating. This process uses less primary energy and emits much less carbon, particularly when it is powered by renewable energy. In addition, induction cooktops are gaining popularity and are significantly more efficient than gas stoves. On a unit basis, electricity is approximately three times more expensive than natural gas. However, commonly available heat pump equipment is approximately three times more efficient than similar natural gas-powered equipment. The more significant cost savings associated with building electrification come from the avoided infrastructure and plumbing needed to serve a building with natural gas. Electrification, but not a Gas Ban For multiple reasons including health, safety economics and environmental benefits, there is considerable interest in mandating all-electric new construction, which means that the buildings would not have any fossil fuel services. All-electric buildings have electric appliances for space heating, water heating, clothes-drying, and cooking. The interest in building electrification stems from the fact that Silicon Valley Clean Energy is providing 100% carbon-free electricity and eliminating the use of natural gas can greatly reduce greenhouse gas emissions from the building sector. To date, Cupertino does not often see all-electric buildings constructed. Mandating that all new construction be all-electric through the building reach code process has not been chosen as the appropriate path because of legal implications in proving cost-effectiveness of this approach to the CEC. The approach taken by SVCE model codes and recommended by staff is to require electric appliances for all but the cooking stove in residential construction. Further, the proposed ordinance would be “electric-preferred” in non-residential new construction (including high-rise residential). Proposed Building Electrification Reach Codes Staff have worked closely with the SVCE’s consultants to interpret the cost-effectiveness studies and infer what options may or may not be cost-effective for the building types that are prevalent in Cupertino. The proposed reach codes meet the requirements of the CEC for cost-effectiveness, and are also are a cost-effective approach for home owners, contractors, and developers pursuing new construction with the city limits. In addition, the analysis results show that all-electric buildings are typically less expensive to construct. 10 Recommended energy reach code requirements for newly constructed buildings using gas or propane are: • Require newly constructed low-rise residential buildings to provide electric space heating and water heating. No additional efficiency measures are proposed beyond the base code and the existing Cupertino green building requirements. • If the consumer choses to install gas for cooking and/or clothes drying, require a dedicated electric circuit to those appliances for future electric appliances. • Require mixed-fuel non-residential buildings to perform better than the baseline simulated building within the standard CEC-required energy simulation. • Exception: a prescriptive path for energy efficiency improvements has been provided which is laid out in the model ordinance language document • Provide exceptions for community safety facilities or other buildings where gas supports a critical safety or resiliency need. • Require a dedicated 240V, 30-amp circuit with receptacle next to water heaters with breaker space on the panel • Require a dedicated 240V, 40-amp circuit next to clothes dryers with breaker space on the panel • Require a dedicated 240V, 50-amp circuit next to cooktops with breaker space on the panel Electric Vehicle Charging Infrastructure Local residents are showing a significant interest in electric vehicles. For example, the number of registered plug-in vehicles in Santa Clara County increased by 31% in 2018. By comparison, registrations for vehicles powered by fossil fuels shrank in 2018. Since 2016, the number of electric vehicles registered in Cupertino more than doubled. As of October 2018, Cupertino’s electric vehicle ownership rate of 6% is higher than the County’s overall rate of 4%. It is widely known that availability of EV charging infrastructure is a critical component to EV adoption. Meanwhile, it is significantly more expensive to install charging infrastructure as a retrofit than it is during new construction. As such, ensuring that newly constructed residential and non-residential parking has ample EV charging capability will reduce long-term costs of EV infrastructure installation, while helping to increase EV adoption and decrease transportation-related greenhouse gas emissions. While California’s new minimum requirements are a step forward, it is unlikely that the requirements for multi-family dwellings and non-residential buildings are enough to keep pace with expected EV growth looking towards 2030. The Statewide Program’s team reviewed approaches to increase the amount of EV infrastructure in new construction buildings, while keeping construction costs as low as possible. 11 Electric Vehicle (EV) charging requirements in California can generally be broken into three categories: • EV Charging Installed: all supply equipment is installed at a parking space, such that an EV can charge without additional equipment. • EV Ready: Parking space is provided with all power supply and associated outlet, such that a charging station can be plugged in and a vehicle can charge. • EV Capable: Conduit is installed to parking space, and building electrical system has ample capacity to serve future load. An electrician would be required to complete the circuit before charging is possible. EV charging capacity and speed can be summarized as three categories: • Level 1: Capable of charging at 120V, 20A. This is an equivalent to a standard home outlet. • Level 2: Capable of charging at 240V, 30-40A. This is the service capacity typically used for larger appliance loads in homes • Level 3 (DC Fast Charging): Capable of charging at 20-400kW. This is the type of charger used for Tesla Superchargers and DC Fast Chargers at some supermarkets. The 2019 California Green Building Code Update (CALGreen) increases requirements for electric vehicle charging infrastructure in new construction; including: • New one- and two-family dwellings and townhouses with attached private garages: must be Level 2 EV-capable • Multi-family dwellings: 10% of parking spaces must be Level 2 EV-capable • Non-residential: 6% of parking spaces must be Level 2 EV-capable Electric Vehicle Charging Infrastructure Reach Codes Unlike amendments to the Energy Code, a cost-effectiveness study is not required for amendments to Title 24, Part 11, or the Green Building Code “CALGreen” which covers items such as electric vehicle (EV) charging infrastructure. However, to evaluate the financial impact on first costs, PCE/SVCE commissioned an analysis of the total cost of implementing various EV infrastructure measures. Staff have worked closely with Silicon Valley Clean Energy, and the Statewide Program’s team to establish new construction EV requirements which are more in-line with local EV adoption trends, while providing flexibility for the builder and keeping construction costs as low as possible. Recommended requirements for EV infrastructure are: Residential • Single Family Dwelling: One dedicated “plug and play” Level 1 circuit, and one dedicated “plug and play” Level 2 EV circuit. • Multi-Unit Dwelling, <20 units: Per unit, a single “plug and play” Level 2 EV circuit 12 • Exception: Not required for units without parking • Multi-Unit Dwelling, >20 units: 75% of the units, a single “plug and play” Level 1 EV circuit; 25% of the units, a single “plug and play” Level 2 EV circuit • Exception: Not required for units without parking • “plug and play” is defined as a full circuit installed including capacity to deliver electricity and outlet. Non-Residential Office • 10% of the parking spaces, Level 2 EV charging infrastructure installed • 10% of the parking spaces, “plug and play” Level 1 EV circuits • 30% of the parking spaces EV capable at the pinch points utilizing at least Level 2- sized conduit with panel capacity for 2kW per EV capable parking space Non-Residential, Non-Office • 6% of the parking spaces, Level 2 EV charging infrastructure installed • 5% of the parking spaces, “plug and play” Level 1 EV circuits • For parking lots with over 100 spaces, first hundred spaces must adhere to Level 1 & Level 2 requirements, with option to substitute 80kW DC fast charger for subsequent sets of 100 spaces. _____________________________________ Prepared by: Andre Duurvoort, Sustainability Manager Attachments: A – Staff Report 9.10.19 Planning Commission Meeting B – Staff Presentation 9.10.19 Planning Commission Meeting C – SVCE Presentation 8.29.19 Sustainability Commission Meeting PLANNING COMMISSION STAFF REPORT Meeting Date: September 10, 2019 Subject Presentation on possible adoption of reach codes - building codes more stringent than State standard Title 24, part 6 (energy) and part 11 (CalGREEN). Recommended Action Receive presentation and provide any input. Discussion Each local government is required by law to adopt new changes to the California Building Standards Code every three years. The next code cycle will take effect January 1, 2020. The State allows optional, local building code amendments that exceed state code standards (known as “reach codes”). Historically, some jurisdictions have adopted amendments to the energy (Title 24, part 6) and green building standards (Title 24, part 11) to meet local climate and environmental goals. There are currently 50+ cities in California that have either adopted or are considering reach codes for the next code cycle including Menlo Park, San José, Mountain View, Berkeley and Sunnyvale. This is a marked increase in interest compared to previous code cycles. The Cupertino City Council included exploring electrification reach codes and local amendments to the Green Building Code in its adopted FY2019/2020 Work Program. The Council’s adopted FY2019/2020 Work Program is available online at: https://www.cupertino.org/home/showdocument?id=24133. The Sustainability Commission’s adopted FY2019/2020 Work Program also includes reviewing green reach codes and making a recommendation to Council. The Sustainability Commission’s adopted FY2019/2020 Work Program is available online at: https://www.cupertino.org/home/showdocument?id=24589. The Sustainability Commission has formed a sub-committee to work on this project and this study is underway. Staff in the Sustainability and Building divisions are leading the reach code process. A public outreach event is tentatively planned for October 16, 2019, at a location to be determined. The Sustainability Commission discussed reach codes a t its August 29th meeting and provided feedback to staff to consider options that might encourage higher tiers of green building performance (CalGREEN Tier 1 or Tier 2, or some combination of both), building electrification and additional infrastructure for electric vehicle (EV) charging. Model codes and technical guidance are provided by the California Energy Commission and Silicon Valley Clean Energy, the regional community choice electricity provider. Staff has also engaged a consultant, Walker Wells with Raimi and Associates, to provide analysis for the CalGREEN green building reach options. The City’s Sustainability Manager, Andre Duurvoort, will give a brief presentation at the Planning Commission meeting on the context for Cupertino, including an overview of the draft greenhouse gas inventory for 2018 and the city’s Climate Action Plan priorities. In addition, John Supp will give a brief presentation on the reach code efforts throughout Santa Clara County . Mr. Supp is a manager of account services with Silicon Valley Clean Energy, and is presenting information to many communities in the region on the model codes and cost -effectiveness studies. _____________________________________ Prepared by: Andre Duurvoort, Sustainability Manager Reviewed by: Piu Ghosh, Planning Manager Albert Salvador, PE, Assistant Director of Community Development / Chief Building Official Approved for submission by: Benjamin Fu, Director of Community Development Electrification & sustainability Green Reach Codes Andre Duurvoort, Sustainability Manager September 10, 2019 •Cupertino Climate Action Plan (CAP) 2015 •General plan element (2015-2040) •Member agency, Silicon Valley Clean Energy Authority •Cupertino climate emergency resolution 2018 City of Cupertino Sustainability •Sustainability commission work program •Currently no planning impacts recommended •Scope:new construction at time of building permit application •Questions: •How can the reach code best support the Climate Action Plan? •How to best mitigate climate impact of development for next 3 years Green/electrification reach codes •“Reach” beyond the base building code •Support community priorities (CAP) •Includes additional requirements, such as: •Energy/water efficiency •Electric vs. fossil fuels •EV charging infrastructure •Solar PV •Construction waste management What is a local reach code? Statewide approved reach codes Local Ordinances Type Alameda County Solar PV Arcata, City of Efficiency Brisbane, City of Cool Roof, Solar PV Chula Vista, City of Outdoor Lighting Del Mar, City of Efficiency Davis, City of Efficiency, Solar PV Fremont, City of Solar PV, Lighting Healdsburg, City of Efficiency Lancaster, City of Solar PV Los Angeles, County of Cool Roof Marin County Efficiency Mill Valley Efficiency Novato, City of Efficiency Palo Alto, City of Efficiency, Solar PV Portola Valley, Town of Efficiency San Francisco, City of Solar PV or Solar Thermal San Mateo, City of Cool Roofs, Solar Santa Monica, City of Efficiency, Solar PV Cupertino community emissions rate (draft) •Total emissions decreased 24% since 2010 •Electricity emissions decreased 95% since 2010 •Natural gas and transportation growing as percentage of total emissions Transportation Transportation Transportation Natural Gas Natural Gas Natural Gas Electricity Electricity Electricity Off-Road Off-Road Off-Road Wastewater Wastewater Wastewater Solid Waste Solid Waste Solid Waste 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2010 2015 2018Emissions (MT CO2e)2020 Emissions Reduction Target: 287,870 MT CO2e Cupertino community emissions forecast •As of 2018, emissions are 24% below 2010 levels and the 2020 target has been achieved •Emissions with State policies are projected to be 32% / 26% below 2010 by 2035/2050 •Additional emissions reductions will be needed to achieve Cupertino’s 2035 and 2050 targets (49% / 83% below 2010) 309,488 355,791 231,787 249,812258,659 172,723 57,574 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 2010 2015 2020 2025 2030 2035 2040 2045 2050Total Emissions (MT CO2e)Additional emissions reduction needed to achieve target Next Steps •Sub-committee formed in August •Publish draft ordinance –October 9 •Public outreach event –October 16 •Stakeholder outreach –ongoing •Sustainability division staff report –TBD •1st Council reading –TBD •2nd Council reading –TBD •Enforcement begins –early 2020 Reach Codes Cupertino August 29, 2019 1 2 •Support Cities in meeting climate goals o Encourage safer, healthier all-electric buildings within the building code o Install EV charging during building construction commensurate with local needs Purpose 3 1.Provide cost-effective pathways for both All-Electric and Dual-Fuel (electric + gas) construction 2.Establish the highest possible requirements that are still cost- effective for Dual-Fuel construction. 3.Recommendations must comply within CEC energy code guidelines Guiding Principles 4 Reach Code Recommendations Cost-Effective W/in CEC Guidelines Included in SVCE recommendation Base Title 24 Yes Yes Yes All-Electric Yes Yes Yes –Pathway 1 Dual-Fuel Yes Yes Yes –Pathway 2 Mostly Electric (residential only) Not as a standalone pathway Yes Yes –Pathway 2A CalGreen Tier 1 or Tier 2 Not as a standalone pathway Yes No Ban on Natural Gas Yes No1 No 1 A ban utilizes a city’s Police power, not via a local amendment to Energy Code. Item Date Leader Participant(s)Content Coordination Technical Cost Effectiveness Study Feb 2019 Consultant SVCE/PCE Draft Model Codes Mar 2019 Consultant Cities External Stakeholder Input May 2019 Consultant Cities, SVCE/PCE, Community City Staff Recommendation Aug 2019 Cities Consultant, Stakeholders Submit for Council Vote Fall 2019 Cities City Council, Consultant Training City Staff Dec 2020 Consultant City Staff New Code Effective Jan 2020 Cities Consultant Support AvailableStakeholders •Transitioning leadership to the cities •SVCE and Consultants providing support for each of these next steps 5 Summary Timeline Local Engagement To Date 6 City Letter of Intent June All-Hands Meeting City Staff Meeting(s) Commission Meeting Council Briefing Council Reading Council Vote Mountain View X X X Pending Oct 22 Nov 12 Los Altos X X X X Oct 22 Nov 12 Morgan Hill X X X X Oct 23 Nov 6 Milpitas X X X X Sept Oct Cupertino X X X TBD TBD Los Altos Hills X X X Nov Sunnyvale X X X X Pending Monte Sereno Pending X X Pending Gilroy X X X X Pending Saratoga X X Campbell X Los Gatos Oct 15 County of Santa Clara X 7 Single Family Residence –Base Code All-Electric (1)Electric & Gas (2) Meet Title 24 requirements Meet Title 24 requirements, including: •Pre -wire water heater location for future electric heat pump 8 Single Family Residence –Base Reach Code All-Electric (1)Electric & Gas (2) Meet Title 24 requirements Meet Title 24 requirements, including: •Pre -wire water heater for future electric heat pump •Pre -wire for future electric appliances (+$ 750) •Additional Energy Efficiency measures (+$1500) •Solar thermal or Battery Storage (+ $6000) 9 Single Family –Reach Code option All-Electric (1) Electric & Gas (2) Meet Title 24 requirements Meet Title 24 requirements, including: •Pre-wire water heater for future electric heat pump •Pre-wire for future electric appliances (+$ 750) •Additional Energy Efficiency (+$1500) •Solar thermal or Battery Storage (+ $6000) “Mostly Electric” (2A) Meet Title 24 requirements, including: •Pre -wire for future electric heat pump •Install Electric water and space heating (allows natural gas for cooking) •Pre -wire for future electric range (+$ 250) •Additional Energy Efficiency measures (+$1500) •Solar thermal or Battery Storage (+ $6000) Single and Two-family New Construction 10 Performance Path Prescriptive Path 1. All Electric. Demonstrate that the proposed home will be all electric, OR Build All Electric. Meet 2019 Title 24 Part 6. 2. Mixed Fuel Building. Proposed Design Building shall be at least 10 EDR points less than the Total Energy Design Rating calculated for the Standard Design Building, OR Mixed Fuel Building a. Low leakage ducts b. R-10 perimeter slab insulation c. Compact hot water distribution d. Fan efficacy of 0.35 Watts/cfm e. Either 1) 5 kWh battery OR 2) A solar water heating system. 2A. Electrically Heated Building (electric space and water heating, gas cooking and/or clothes drying). Proposed Design Building shall be at least 2 EDR points less than the Energy Efficiency Design Rating calculated for the Standard Design Building, OR Electrically Heating Building a. Low leakage ducts. b. R-10 perimeter slab insulation. c. Compact hot water distribution. d. Fan efficacy of 0.35 Watts/cfm. “Menu options” are formatted with green highlights 1 + 2 OR 1 + 2 + 2A Multifamily New Construction (≤3 stories) 11 Performance Path Prescriptive Path 1. All Electric. Demonstrate that the proposed home will be all electric, OR Build All-Electric and Meet 2019 Title 24 Part 6. 2. Mixed Fuel Building. Proposed Design Building shall be at least 10 EDR points less than the Total Energy Design Rating calculated for the Standard Design Building, OR Mixed Fuel Building a. low leakage ducts in conditioned space b. 0.25 ASR cool roof c. R-10 slab insulation d. compact Hot Water distribution e. 0.35 W/cfm HVAC fan d. Either 1) 2.75 kWh battery/dwelling OR 2) A solar water heating system. 2A. Electrically Heated Building (electric space and water heating, gas cooking and/or clothes drying). Proposed Design Building shall be less than the Energy Efficiency Design Rating calculated for the Standard Design Building Electrically Heated Building Meet 2019 Title 24 Part 6 “Menu options” are formatted with green highlights 1 + 2 OR 1 + 2 + 2A Nonresidential 12 Performance Path Prescriptive Path 1. All Electric. Demonstrate that the proposed building will be all electric, OR Build All Electric and meet 2019 Title 24 Part 6. 2. Mixed Fuel Building, All Occupancies. Demonstrate that the energy use of the proposed building is 9% more efficient than the 2019 State Energy Code, OR Mixed Fuel Building a. Fenestration with a solar heat gain coefficient ≥ 0.22. b. Airflows to be equal to the zone ventilation minimums. c. Economizers in air handlers ≥ 33,000 Btu/h d. Reduced the lighting power density (Watts/ft2) by ten percent (10%) e. In common areas, improve lighting: 1) Daylight dimming plus off AND 2) Institutional Tuning f. Install drain water heat recovery. 2A. Mixed Fuel Building, Office and Mercantile. Demonstrate that the energy use of the proposed building is 15% more efficient than the 2019 State Energy Code Mixed Fuel Building a. Fenestration with a solar heat gain coefficient ≥ 0.22. b. E/W fenestration area is < ½ of the N/S fenestration. c. Airflows to be equal to the zone ventilation minimums. d. Economizers in air handlers ≥ 33,000 Btu/h e. Reduced the lighting Watts/ft2 by 10% f. Improve lighting: 1) Daylight dimming plus off AND 2) Institutional Tuning AND 3) Occupant sensing in open plan offices 1 + 2 + 2A 1 + 2 OR Reach Code –EV Charging To enact a reach code for EV charging, increase the Quantity, Readiness and/or Charging Speed. Building Type Quantity Readiness Charging Speed Residential 1 per dwelling unit Capable Level 2 Multi-Unit Dwelling 10% of total spaces Capable Level 2 Commercial 6% of total spaces Capable Level 2 CalGreen (Part 11) provides minimum requirements for each aspect of EV Charging per building type [above charts simplified for illustration purposes] Building Type Quantity Readiness Charging Speed Residential 1 per dwelling unit 1 per dwelling unit Capable Ready Ready Level 2 Level 1 Multi-Unit Dwelling 10% 25% of total spaces Capable Ready Level 2 Commercial 6% 10% of total spaces Capable Ready Level 2 13 Readiness Installed Ready Capable Speed Level 3 Level 2 Level 1 CITY OF CUPERTINO Legislation Text Subject: Presentation from staff on draft Climate Action Plan progress report Receive presentation and provide any input to staff on draft report File #:19-6367,Version:1 CITY OF CUPERTINO Printed on 10/21/2019Page 1 of 1 powered by Legistar™