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Home My WebLink About2022-11-03; New Building Electrification Ordinance Update (Districts - All); Gomez, PazTo the members of the: CITY COUNCIL Dat~3l22.CA ✓cc _L CM ACM L DCM (3)_L" November 3, 2022 Council Memorandum To: From: Honorable Mayor Hall and Members of the City Council Paz Gomez, Deputy City Manager, Public~rks Geoff Patnoe, Assistant City Manager ~ Via: Re: New Building Electrification Ordinance Update (District s -All) {city of Carlsbad Memo ID# 2022115 This memorandum provides a status update of a new building electrification ordinance minute motion made by the City Council. Background At the April 19, 2022, City Council meeting, the City Council carried a minute motion made by Council Member Acosta and seconded by Council Member Bhat-Patel on Item 10 (Electrification of New Buildings in Carlsbad). This motion "direct[ed] staff to research options to add an ordinance addressing electrification of new buildings in the City of Carlsbad to the next Climate Action Plan (CAP) draft in 2023." Discussion Following City Council direction, staff directed the Energy Policy Initiatives Center (EPIC) to prepare a building electrification report through an existing professional services agreement for climate action planning services; EPIC is also currently on contract as one of the two firms preparing the CAP Update. Staff directed EPIC to cover the topics that were discussed in the April 19, 2022, City Council meeting, including: • Overview of the three ordinance options1 to adopt a new construction building electrification requirement • Estimated number of buildings affected over 2023-2025 code cycle • Estimated cost by each pathway • Estimated greenhouse gas emission reductions by each pathway • Cost-effectiveness studies needed for each pathway • Grid reliability • Labor and equity considerations • Pathways pursued by other jurisdictions in the region 1 At this time, the three electrification options for new construction under existing local authority are to either adopt a natural gas moratorium or modify the 2022 Title 24 California Building Code to require all-electric new construction or all-electric new construction plus additional energy efficiency requirements. Public Works Branch Environmental Sustainability Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2729 t Council Memo -New Building Electrification Ordinance Update (Districts -All) November 3, 2022 Page 2 Staff recently received an initial draft of this report for review. As directed in the April 19, 2022, minute motion, the final report will be presented to the City Council with the draft of the updated CAP. Next Steps As part of the CAP Update process, staff will present the building electrification report to the City Council accompanied by the candidate CAP measures. As referenced in the City Council Memorandum on the CAP Update dated September 15, 2022 (Attachment A), due to the delay of receipt of ABM2+ customized data from the San Diego Association of Governments (SAN DAG), staff are unable to prepare a full list of candidate CAP measures with emissions reductions estimates, along with other critical CAP-related calculations. Please refer to the City Council Memorandum dated November 3, 2022, entitled "Housing Element Implementation Status Update" for more information on how the city intends to address the SAN DAG modeling delay. Attachment: A. Council Memorandum dated September 15, 2022 cc: Scott Chadwick, City Manager Cindie McMahon, City Attorney Gary Barberio, Deputy City Manager, Community Services Laura Rocha, Deputy City Manager, Administrative Services Ron Kemp, Senior Assistant City Attorney Tom Frank, Transportation Director/City Engineer Jeff Murphy, Community Development Director Vicki Quiram, Utilities Director Kristina Ray, Communication & Engagement Director James Wood, Environmental Sustainability Director John Maashoff, Public Works Manager Mike Strong, Community Development Assistant Director Eric Lardy, City Planner Nikki Matosian, Community Relations Manager Katie Hentrich, Senior Program Manager To the members of the: ... PT'! COUNCIL Dat:e ~cA _Lcc ✓ CM _.!!_ACM i/ DCM (3) ✓ September 15, 2022 Council Memorandum To: From: Honorable Mayor Hall and Members of the City Council Paz Gomez, Deputy City Manager, Publi~orks Via: Geoff Patnoe, Assistant City Manager (!J-v Re: Status of the Climate Action Plan Update (Districts -All) ATTACHMENT A {city of Carlsbad Memo ID #2022101 This memorandum provides a status update of the city's Climate Action Plan (CAP) Update. Background On September 22, 2015, the City Council adopted a CAP, along with the General Plan Update and associated Environmental Impact Report (EIR), with Resolution Nos. 2015-244 and 2015-242, respectively. The CAP was developed to help the city meet state goals for reducing greenhouse gas (GHG) emissions and to meet the community's goal of promoting a sustainable environment. On July 14, 2020, the City Council adopted Resolution No. 2020-146, approving CAP Amendment No. 1, which revised the GHG inventory, reduction targets and forecasts, updated reductions from existing measures and incorporated Community Choice Energy as a new reduction measure. An Addendum to the EIR was also prepared. Staff are preparing a comprehensive update to the CAP to: (1) continue to align city efforts with updated state legislation and targets, (2) further implement the city's Sustainability Guiding Principles and Community Values of Sustainability, and (3} support the actions identified in the Declaration of a Climate Emergency, which was approved on September 21, 2021, via Resolution No. 2021-215. On November 23, 2021, the city executed a Professional Services Agreement with the Energy Policy Initiatives Center (EPIC) at the University of San Diego, who were selected via a Request for Proposal. On November 30, 2021, a kickoff meeting was held with the consultant team, which includes Ascent Environmental as EPIC's subconsultant. On April 19, 2022, staff presented the CAP Annual Report for Year 5 to the City Council, which covered implementation activities from January 1, 2021, through December 31, 2021. To align data and modeling used to forecast growth assumptions in Carlsbad with other concurrent city efforts, the City Council adopted Resolution No. 2022-094, directing staff to use a customized run of the San Diego Association of Governments (SANDAG)'s most recent Activity Based Model (ABM2+) tailored for Carlsbad in the CAP Update. Public Works Branch Environmental Sustainability Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2729 t Council Memo -Status of the Climate Action Plan Update (Districts -All) September 15, 2022 Page 2 Discussion Since presentation of the CAP Annual Report for Year 5 on April 19, 2022, staff have completed the following work on the CAP Update: • Continued early stakeholder outreach for the CAP Update, targeting environmental advocates, business and industry groups, active transportation groups and community- based organizations representing underrepresented groups; a summary of this first phase of outreach is included as Attachment A • Continued collecting internal and external data for the CAP Update • Met with city staff responsible for implementing the existing CAP to discuss lessons learned from CAP implementation and current activities that could be captured in the CAP Update • Began creating a draft initial list of candidate measures for evaluation to be included in the CAP Update Staff still await SANDAG's delivery of the customized ABM2+ results. Originally, SAN DAG estimated this customizable version would be available in late June 2022. Based on this schedule, SAN DAG indicated it could "run" a Carlsbad-specific model by late July or August 2022, factoring in model run times and similar requests from other jurisdictions. However, SAN DAG did not release the model until July 15, 2022, and now estimates a Carlsbad-specific model run will not occur until this fall. The revised timeline from SANDAG delays the CAP Update by at least a month. However, any SAN DAG Board-directed changes to the 2021 Regional Plan could be prioritized above local jurisdiction requests, which could further delay delivery of the Carlsbad-specific model. Without the ABM2+ customized model run, staff are unable to move forward with the next steps in the CAP Update, which means staff are unable to revise the GHG inventory, projections and targets, and unable to prepare a full list of candidate CAP measures with emission reductions estimates. 2022 California Building Code Updates Later this fall, staff from the Community Development Department will present updates to the city's Building Code to meet new requirements in the 2022 California Building Code (2022 Code) to the City Council. The 2022 Code will become effective on January 1, 2023. Broadly speaking, these new state building code requirements increase various energy efficiency requirements as contained in the current code. As a result of these 2022 Code updates, many of the city's existing reach codes, which are embedded as measures in the existing CAP, will no longer exceed certain state energy efficiency requirements. However, this change in law will in no way invalidate the city's existing reach codes in the CAP. In other words, the city will still be able to meet its established CAP goals and Council Memo -Status of the Climate Action Plan Update (Districts-All) September 15, 2022 Page 3 GHG reduction targets. An update to the city's reach codes may be explored as part of the CAP Update and will be included as an implementation option for the City Council's consideration. Next Steps Once SAN DAG generates the ABM2+ customized results, staff will finalize the list of candidate CAP measures and share the list with the public and the City Council. This list could include a description of a given measure, options for possible metrics, equity considerations, California Environmental Quality Act (CEQA) considerations, a high-level estimate of the reduction amount of GHG emissions related to each measure arid identification of each city department responsible for implementation. Staff will ask the public and the City Council to provide feedback on the list of candidate CAP measures, which staff will use to further refine the GHG emissions reduction measures for inclusion in the public review version of the draft CAP Update. As part of the CAP Update process, staff will also present the City Council with building electrification information that was requested at the April 19, 2022, City Council meeting. Specifically, the City Council directed staff to "research options to add an ordinance addressing electrification in new buildings in the City of Carlsbad to the next Climate Action Plan draft in 2023". Given this direction, an update to the city's reach codes will be explored as part of the CAP Update. This research will accompany the candidate CAP measures and include, but not be limited to, information related to cost, just transition, grid reliability and actions taken by other jurisdictions related to electrification. Staff will continue to implement the existing CAP until the City Council adopts the CAP Update. Staff will also continue to work closely with the Communications Department on public outreach for the CAP Update. Assuming receipt of the ABM2+ customized results in fall 2022, staff expect the CAP Update will be completed by early fall 2023. Staff will also provide status updates to the City Council as appropriate. Attachment: A. Summary of Phase I Public Engagement Climate Action Plan Update (Due to the size of Attachment A, a hardcopy is on file in the Office of the City Council, as reference) cc: Scott Chadwick, City Manager Cindie McMahon, City Attorney Gary Barberio, Deputy City Manager, Community Services Laura Rocha, Deputy City Manager, Administrative Services Robby Contreras, Assistant City Attorney Ron l<emp, Assistant City Attorney Tom Frank, Transportation Director/City Engineer Jeff Murphy, Community Development Director Vicki Quiram, Utilities Director Kristina Ray, Communication & Engagement Director Council Memo -Status of the Climate Action Plan Update (Districts -All) September 15, 2022 Page 4 James Wood, Environmental Sustainability Director John Maashoff, Public Works Manager Mike Strong, Community Development Assistant Director Eric Lardy, City Planner Katie Hentrich, Senior Program Manager Nikki Matosian, Community Relations Manager