HomeMy WebLinkAboutItem 6b. Introduction to two Ordinances supporting the Clean Energy for New Buildings Incentive Program Item 6b
Department: Administration
Cost Center: 4006
For Agenda of: 7/5/2022
Placement: Public Hearing
Estimated Time: 75 Minutes
FROM: Greg Hermann, Deputy City Manager
Michael Codron, Community Development Director
Prepared By: Chris Read, Sustainability Manager; Lucia Pohlman, Sustainability and
Natural Resources Analyst
SUBJECT: CLEAN ENERGY FOR NEW BUILDINGS – 2022 PROGRAM UPDATE
RECOMMENDATION
1. Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San
Luis Obispo, California, amending Title 8 (Health and Safety) of the San Luis Obispo
Municipal Code by adding Chapter 8.10 requiring all-electric new buildings”; and
2. Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San
Luis Obispo, California, amending Title 17 (Zoning Regulations) of the Municipal Code
supporting the Clean Energy for New Buildings Program (PL -CODE-0286-2022)” to
provide regulatory flexibility through December 31, 2025 in support of the Clean
Energy for New Buildings Incentive Program; and
3. Direct Staff to return to Council by December 31, 2025 to report on the effectiveness
and appropriateness of the proposed exemptions and incentives and, if necessary,
propose amendments.
POLICY CONTEXT
1. Resolution 11159 (2020 Series) adopts the Climate Action Plan for Community
Recovery, includes the goal of carbon neutrality by 2035 , and includes a building
sector goal of zero operational greenhouse gas (GHG) emissions from new buildings.
2. Resolution 11133 (2020 Series) states that, “it is the Policy of the City that new
buildings should be all-electric.”
REPORT-IN-BRIEF
This item is on the agenda because the City Council approved a Major City Goal work
program that included analyzing the existing Clean Energy Choice Program for New
Buildings, evaluating its effectiveness, and determining if any changes were warranted to
meet the City’s climate goals. The purpose of this items is for the Council to consider two
ordinances that would implement Council strategic direction provided on February 1,
2022.
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On August 19, 2020, City Council approved the City’s Climate Action Plan for Community
Recovery, and adopted Resolution 11159 (2020 Series), which includes the goal of
carbon neutrality by 2035 and a building sector goal of zero operational greenhouse gas
(GHG) emissions from new buildings by 2020. In support of achieving these goals,
Council also adopted the Clean Energy Choice Program for New Buildings (Program) in
2020, which encourages all-electric new buildings through City policy, local amendments
to the California Energy Code, and incentives.
The current Program is tied to the 2019 California Energy Code, which is set to expire at
the end of 2022. Staff has been working on the update to the Program since Fall 2021
and based on current performance, statewide trends favorin g all-electric new buildings,
public health and safety risks from natural gas infrastructure, strategic City Council
direction, and ongoing community engagement, staff is proposing an all-electric
requirement for new buildings codified in Title 8 (Health a nd Safety) of the Municipal
Code. The Program, now referred to as the Clean Energy Program for New Buildings,
includes reasonable exemptions and is supported with an incentive program that provides
technical assistance, trainings, and regulatory flexibility. Staff’s recommendation also
includes direction to return to Council prior to December 31, 2025 to report on the
effectiveness and appropriateness of the proposed exemptions and incentives .
The updated Program was developed with input from local develop ers, builders,
designers, peer cities, utility partners, and community members. Should Council move
forward with staff’s recommendation, the second reading of the Ordinances would occur
on July 19, 2022 and the Program in its entirety would go into effect on January 1, 2023.
DISCUSSION
The discussion section of this report provides historical background for the Clean Energy
Choice Program for New Buildings, including an overview of program performance during
the past year, an update on statewide building climate policy, and an overview of staff’s
recommendations for the Clean Energy for New Buildings 2022 Program update. The
discussion section concludes with information about public health and safety risk from
natural gas infrastructure, community resilience considerations, and cost effectiveness
information.
Background
Climate Action Plan for Community Recovery
On August 19, 2020, City Council approved the City’s Climate Action Plan for Community
Recovery, and adopted Resolution 11159 (2020 Series), which includes the goal of
carbon neutrality by 2035 and a building sector goal of zero operational greenhouse gas
(GHG) emissions from new buildings by 2020. This new-buildings sector goal is achieved
through all-electric new buildings, which provide a least-cost approach to avoiding the
addition of new emissions sources while the community works to achieve its climate
goals.1
1 See previous discussion explaining why all-electric new buildings with high efficiency appliances
plugged into the California electrical grid are the most cost effective solution for new buildings in the
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The City’s Current Approach to All-Electric New Buildings
The City has discussed all-electric buildings as far back as the public process for the Avila
Ranch and San Luis Ranch Development Agreements in 2017 and 2018. Since then, the
topic has been presented to the City Council and community on numerous occasions. As
a primary implementing action, City Council unanimously approved the Clean Energy
Choice Program for New Buildings on June 16, 2020. The Program, which went into effect
September 1, 2020, includes:2
1. Resolution 11133 (2020 Series) stating that, “it is the Policy of the City that new
buildings should be all-electric.”
2. Ordinance1684 (2020 Series) which requires that mixed-fuel buildings be substantially
higher performing than all-electric buildings and requires solar installations on
nonresidential buildings.
3. Incentives including funding for technical assistance for builders to help them
successfully process permits for all-electric buildings, as well as advocacy with
external partners for additional financial incentives.
4. Ordinance 1685 (2020 Series) allowing limited term regulatory flexibility.
Information Learned Since Clean Energy Choice for New Buildings Program Adoption
In support of the Program update, staff presented a Council Study Session on February
1, 2022 with information about local program participation and statewide building
electrification trends.3 Summary findings, with minor updates, include:
1. Local Program Participation: Based on an analysis of program results between
September 1, 2020, and September 1, 2021, when provided a choice, developers are
selecting a mixed-fuel option about half of the time. This rate is not sufficient to
accomplish City adopted goals for greenhouse gas emissions reductions.
2. Local Incentive Success: Program incentives were well utilized and have facilitated
successful permit review processes. City staff successfully supported the creation of
a program at Central Coast Community Energy (3CE) to provide direct incentives to
developers of multi-family and affordable housing units to choose all-electric buildings.
Of the $1.2 million set aside for the 3CE program in Fiscal Year 2020-21, $844,000 in
incentives supporting 502 units across eight projects were awarded and reserved.
This program continues and is now exclusively focused on affordable housing. The
City also established the Energy Reach Code Virtual Help Desk launched on
September 1, 2020, in parallel with the Clean Energy Choice Program effective date.
Since the launch of the help desk, nearly 100 visitors used the help desk as a
compliance resource.
September 3, 2019 Council Agenda Report, available at:
http://opengov.slocity.org/WebLink/DocView.aspx?id=96415&dbid=0&repo=CityClerk
2 Note that although the Climate Action Plan was adopted after the Clean Energy Choice Program for New
Buildings (adopted June 16, 2020), the two items had been seen is integral to each other’s success since
as early as Fall of 2018.
3 The February 1, 2020 Council Agenda Report is available at:
http://opengov.slocity.org/WebLink/DocView.aspx?id=154251&dbid=0&repo=CityClerk .
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3. Statewide Trends - Local Action: To-date, 55 California local governments have
adopted building electrification ordinances to either encourage or require all-electric
new buildings. Approximately 46 of those approaches outright prohibit natural gas in
new buildings in one or more building sectors. With the recent addition of the City of
Los Angeles, 10 million Californians, or approximately a quarter of the State’s
population now live in a jurisdiction with all-electric new buildings policy.4 Comparable
cities with all-electric requirements include Santa Barbara, Santa Cruz, Petaluma, and
Davis.
4. Statewide Trends - 2022 California Energy Code: In December of 2021, the
California Energy Commission unanimously adopted the 2022 California Energy
Code.5 The 2022 Code reflects a desire by the California Energy Commission to
improve indoor air quality in buildings, reduce emissions, and move to wards all-
electric new buildings. According to the California Energy Commission, the 2022
Energy Code focuses on electrification of new buildings including, encouraging
electric heat pump technology for space and water heating, establishing electric-ready
requirements for single-family housing, expanding solar photovoltaic (PV) system and
battery storage standards, and strengthening ventilation standards to improve indoor
air quality.
5. Statewide Trends - California Air Resources Board 2022 Scoping Plan: In May of
2022, the California Air Resource Board released the draft 2022 Scoping Plan, which
lays out direction to California agencies to achieve statewide greenhouse gas
emissions reduction goals.6 Notably, the draft plan includes a goal of 80% of statewide
residential appliance sales being electric by 2030 and 100% appliance sales being
electric by 2035. The draft 2022 Scoping Plan reflects extensive outreach conducted
across the state and plan is required to be approved by the end of 2022.
6. Public Health and Safety: In addition to the public health and safety findings
identified in the 2020 adopting ordinances, an emerging body of literature has
documented public health and safety risks associated with natural gas infrastructure
and climate change impacts, seismic events, and indoor air quality. The combustion
of natural gas inside buildings and its effect on indoor air quality is the most notable
new finding.7 Natural gas combustion and gas appliances emit a wide range of air
pollutants, such as carbon monoxide (CO), nitrogen oxides (NOx, including nitrogen
dioxide (NO2)), particulate matter (PM), and formaldehyde, which have been linked to
various acute and chronic health effects and exceed national and California-based
ambient air quality standards. More detail about the City’s findings related to public
health and safety are provided below.
4 The Sierra Club maintains a list of adopted policies at:
https://www.sierraclub.org/articles/2021/07/californias-cities-lead-way-gas-free-future.
5 The 2022 California Energy Code is available at: https://www.energy.ca.gov/programs-and-
topics/programs/building-energy-efficiency-standards/2022-building-energy-efficiency.
6 The Draft 2022 Scoping Plan is available at: https://ww2.arb.ca.gov/our-work/programs/ab-32-climate-
change-scoping-plan/2022-scoping-plan-documents.
7 This finding was presented in the February 1, 2022 Study Session.
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2022 Program Update
The local amendments to the California Energy Code made via Ordinance No.1684 apply
to the 2019 version of the triennial statewide code and will be enforceable and valid
through December 31, 2022. As described below, the proposed update is no t tied to the
California Energy Code; however, to support continuity, the proposed update would begin
on January 1, 2023.
On February 1, 2022, in support of this update, staff provided a study session to Council
and received strategic direction to develop an all-electric new buildings program via an
amendment to the City’s municipal code. Council also provided st rategic direction to
update the incentive program, conduct community outreach, and review issues related to
energy resiliency.
In response to this direction, staff has developed two ordinances that will amend the
Municipal Code. One ordinance will amend the Municipal Code with health and safety
findings to require that planning or building permit applications for new buildings be all-
electric starting January 1, 2023 (Attachment A). The other ordinance will amend the
Zoning Regulations (Municipal Code Section 17.70.095) to support the Program by
extending temporary incentives in the application of site development standards, in
support of all-electric buildings (Attachment B). Attachment B also includes a “clean-up”
edit to Chapter 17.158 (General Definitions) that updates the “All-Electric Building”
definition.
2022 Program Component #1: Ordinance Requiring All-Electric New Buildings
All-Electric New Building Requirement
The draft ordinance requiring all-electric new buildings includes a requirement that
building permit applications for new buildings and associated on-site equipment be all-
electric beginning on January 1, 2023. The draft ordinance includes findings related to
the health and safety benefits of requiring all-electric new buildings and, as such, staff
proposes to place the requirements in Title 8 (Health and Safety) of the Municipal Code.
Exemptions
The draft ordinance provides exemptions for natural gas infrastructure for certain end
uses when no viable all-electric alternative is commercially available or viable. Proposed
end uses eligible for ongoing technical exemptions are:
1. Back-up power for Critical Infrastructure necessary to protect public health and
safety in the event of an electric grid outage (ongoing).
2. Process Loads in a Newly Constructed Manufacturing and Industrial Facility
(ongoing).
3. Commercial Kitchen Equipment in a Newly Constructed Eating and Drinking
Establishment (through December 31, 2025).
4. Water heating and space heating in an attached Accessory Dwelling Unit where
equipment in the existing building is serving the attached Accessory Dwelling Unit .
(through December 31, 2025).
5. A swimming pool that is provided as a public amenity (through December 31,
2025).
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The proposed ordinance would require that project applicants provide a description of
how the purpose and intent of the Program is addressed to the maximum extent feasible.
The information must be to the satisfaction of the Community Development Director and
their decision would then become a condition of approval and be noted on the plans
approved in association with the building permit issued for the project.
The draft ordinance also includes a public interest exemption that would allow limited
natural gas infrastructure in certain newly constructed buildings if the Community
Development Director makes findings related to site feasibility, the project’s alignment
with the City’s adopted sustainability and environmental policies, and the project’s
commitment to public health and safety.
Other Considerations
The draft ordinance differs from the previous “reach code” approach in that it uses the
City’s authority under the California Constitution to enact regulations that benefit
community health and safety. Key differences between this approach and the previous
approach include:
1. The proposed approach is not tied to the energy code and explicitly shall not be
construed as amending California Energy Code requirement s under California Code
of Regulations, Title 24, Part 6, nor as requiring the use or installation of any specific
appliance or system as a condition of approval. As a result, the update does not
require California Energy Commission approval, nor does it require that the City make
findings related to cost effectiveness.
2. The proposed approach does not impinge on the California Public Utility
Commission’s (CPUC’s) jurisdiction, whose gas regulatory authority ends at the
building’s gas meter or point of delivery from within any given property.8
3. The proposed approach also does not impinge on the City’s Franchise Agreement
with SoCal Gas, which provides access to City right of way for natural gas
infrastructure but does not make commitments related to extending that infrastructure
onto private property9.
8 Although the legislature empowered the Commission to “require each gas corporatio n to provide bundled
basic gas service to all core customers in its service territory,” it did not require customers to install fuel gas
piping in or in connection with a building, structure or within the property lines of premises behind the gas
meter. See California Code, Public Utilities Code - PUC § 963,
https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PUC&division=1.&title=&part=
1.&chapter=4.5.&article=2
9 The City’s Franchise Agreement with SoCal Gas is codified in Ordinance 770 (1978 Series) and is
available at:
http://opengov.slocity.org/WebLink/DocView.aspx?id=51783&dbid=0&repo=CityClerk&searchid=6f10957c
-313a-4ff0-aeab-0c183d65be73.
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2022 Program Component #2: Incentive Program Including Ordinance Extending
Regulatory Flexibility
A major theme emerging from ongoing outreach with the building and development
community is the importance of incentives and technical support. The section below
provides summary requests from these conversations and staff’s proposals for
addressing the requests:
Extended Regulatory Flexibility
Staff learned that in some higher density infill projects designed prior to awareness of all-
electric requirements, space for electric appliances and related infrastructure can be a
limiting factor. In certain instances, the additional electrical or mechanical equipment
necessary for all-electric development could be challenging to locate given other site
development standards including height and setback limitations and parking
requirements. In response to this information, staff has developed an ordinance to amend
Municipal Code Section 17.70.095 to extend the provision of temporary incentives in the
application of site development standards for new all-electric buildings. The proposed
amendments in this ordinance include the addition of parking requirements to the list of
site development standards eligible for flexibility and the extension of the incentive term
from December 31, 2022, to December 31, 2025. The Planning Commission reviewed
this proposal at its June 22, 2022, meeting and recommended that the City Council adopt
the ordinance (Attachment B).10
Technical Training
Staff learned that there is an interest from the building community to receive trainings
related to all-electric new buildings and new requirements found in the 2022 California
Energy Code. 3C-REN has allocated staff and budget for education and City staff has
connected with 3C-REN to request local trainings about these topics. City staff are
currently working with 3C-REN staff to identify the most relevant trainings and to schedule
those trainings.11
Community Forum
Staff learned that there is interest in the building community to convene builders for the
purpose of discussing best practices for common all-electric building design challenges.
In response, the City is collaborating with 3C-REN to convene a best practices forum for
builders and developers. This forum would cover topics related to equipment, design, and
operations and would meet at a frequency identified by participants.
10 The Planning Commission Resolution (PC-1063-2022) in support of the ordinance is available at
http://opengov.slocity.org/WebLink/DocView.aspx?id=161457&dbid=0&repo=CityClerk
11 3C-REN’s training calendar is available at https://www.3c-ren.org/calendar-of-events-and-trainings/.
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Continued Technical Assistance Help Desk
As mentioned above, the current on-call help desk has provided technical assistance to
nearly 100 community members. In response to the request for ongoing technical
assistance, staff has extended its contract with id360, the current provider of on-call help
desk. The City will provide access to the service at no charge to applicants through the
duration of the contract, which extends through June of 2023. Should the community
identify additional technical assistance as critical, it could be requested and approved
through the 2023-25 Financial Plan process.12
2022 Program Component #3: Definition Amendment
The final component of the proposed Program is an amendment to the current definition
of “All-Electric-Building” as currently codified in Municipal Code Section 17.158.006. The
current definition “All-Electric Building” includes a sentence exempting commercial
kitchens from all-electric requirements. While the 2022 Program retains these
exemptions, staff recommends striking this from the definition since the definition does
not refer to the other exemptions. As identified in Attachment B, staff recommends
removing this sentence from the definition in Title 17 to provide clarity by allowing all the
exemptions to live together in the new relevant code section (Chapter 8.10). The Planning
Commission reviewed this proposal at its June 22, 2022 meeting and recommended that
the City Council adopt the ordinance.
Public Health and Safety
This section describes the three primary public health and safety impacts of natural gas
infrastructure (increasing climate impacts, seismic activity, and indoor air quality), all of
which would be avoided or mitigated by the proposed Program.
Increasing Climate Impacts
According to the 2022 Intergovernmental Panel on Climate Change Summary for
Policymakers Report,13 human-induced climate change has caused concurrent and
repeated climate hazards.14 The City of San Luis Obispo is vulnerable to climate change
impacts, including increases in extreme weather, storms, precipitation, and floods, as well
as drought, extreme heat, and wildfires. These impacts have secondary effects include
loss of critical ecosystem services, species extinction, infrastructure damage, economic
disruptions, agricultural losses, and declines in physical and mental health. These
impacts disproportionately affect vulnerable residents of San Luis Obispo including low-
income, elderly, disabled, and minority community members.15
12 The Green Carpet Help Desk is available at https://www.greencarpetservice.com/slo/.
13 The summary report is available at
https://www.ipcc.ch/report/ar6/wg2/downloads/report/IPCC_AR6_WGII_SummaryForPolicymakers.pdf
14 Ibid.
15 The City is currently assessing community vulnerability to the impacts of climate change in support of a
pending update to the Safety Element of the General Plan. The draft hazards and vulnerability report is
available at www.slocity.org/resilientslo.
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Drastic reductions in greenhouse gas emissions from all sectors, including buildings, are
necessary to prevent increasingly hazardous climate disasters. A rapid reduction in
natural gas is particularly important as it is primarily composed of methane. Methane
(CH4) is a powerful greenhouse gas that warms the atmosphere 86 times as much as
carbon dioxide over a twenty-year period. According to an article published in the journal
Science in 2018, methane emissions from the U.S. oil and natural gas supply chain were
60% greater than the U.S. Environmental Protection Agency estimate.16 Recent studies
from Stanford also identified that leaks in natural gas water heaters and stoves are
substantially higher than previously known.17 Importantly, recent studies also indicate that
a rapid reduction in methane emissions can slow the rate of climate change.18,19,20
Seismic Activity
According to the adopted County of San Luis Obispo 2019 Multi-Jurisdictional Hazard
Mitigation Plan, earthquake damage is San Luis obispo could be critically severe; seismic
hazards are identified as one of the top natural disaster concerns in the region.21 The plan
includes information about active faults near and in the City of San Luis Obispo and notes
that the Los Osos fault, West Huasna fault, Oceanic fault, and Edna fault are all
considered to be potentially active and present fault rupture hazard to developments in
their vicinity. Additionally, the majority of the City is identified as having moderate potential
for liquefaction.
Buried gas pipelines are vulnerable to earthquakes and can leak or break due to strong
shaking, ground transformation, or liquefaction.22,23 When natural-gas mains and lines
break, they leak natural gas and can cause fires if ignited. In a city located along fau lt
lines such as San Luis Obispo, there is a risk of an earthquake causing multiple
simultaneous fires while emergency response capacity is limited by earthquake-damaged
infrastructure.24,25
16 See: https://www.science.org/doi/10.1126/science.abj4351.
17 See: https://pubs.acs.org/doi/10.1021/acs.est.9b07189 and
https://pubs.acs.org/doi/10.1021/acs.est.1c04707 .
18 See: https://iopscience.iop.org/article/10.1088/1748-9326/abf9c8.
19 See: https://www.nature.com/articles/d41586-021-02287-y.
20 See: https://www.weforum.org/agenda/2021/08/tackling-methane-levels-is-the-quickest-way-to-slow-
climate-change-say-scientists/.
21 The 2019 Multi-Jurisdiction Hazard Mitigation Plan is available at
https://www.slocounty.ca.gov/Departments/Planning-Building/Forms-Documents/Plans-and-
Elements/Elements/Local-Hazard-Mitigation-Plan/San-Luis-Obispo-County-Multi-Jurisdictional-
Hazard.pdf.
22 See: https://ascelibrary.org/doi/full/10.1061/AJRUA6.0001202.
23 See: https://www.sciencedirect.com/science/article/abs/pii/S0013795204001073?via%3Dihub.
24 The City has a history of public health and safety regulation as it relates to seismic issues. For
example, a 2004 program required that approximately 100 reinforced mas onry buildings be retrofit
structurally retrofit to be able to withstand shaking from seismic events.
25 The 2018 State Hazard Mitigation Plan also confirms that natural gas leaks after seismic events are a
major source of post-disaster fires. See Table 9.R:
https://www.caloes.ca.gov/HazardMitigationSite/Documents/002-
2018%20SHMP_FINAL_ENTIRE%20PLAN.pdf
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Indoor Air Quality
Natural gas combustion in buildings has been linked to an increase in respiratory
diseases, including increased instances of wheezing and asthma, particularly in
children.26,27 A 2013 Lawrence Berkeley National Laboratory study found that “60 percent
of homes in the state that cook at least once a week with a gas stove” produce toxic levels
of nitrogen dioxide, formaldehyde, and carbon monoxide exceeding federal standards for
ambient air quality. Although electric stoves generate some toxins from cooking,
researchers found that gas stoves are more detrimental to indoor air quality because they
produce fossil fuel combustion byproducts that are not produced by electric stoves.28
These findings were reviewed, tested, and expanded upon in a 2020 report from the
UCLA Fielding School of Public Health titled, “Effects of Residential Gas Appliances on
Indoor and Outdoor Air Quality and Public Health in California.”29 Additionally, in June of
2022, the American Medical Association’s (AMA) policy board adopted Resolution 439,
which recognizes the association between the use of gas stoves, indoor nitrogen dioxide
levels, and asthma.30
Community Resilience
With increasingly severe climate hazards becoming the new normal, energy system
resilience and reliability is a critical issue. A common mis conception is that natural gas
appliances are more resilient than electrical appliances during electrical grid outages.
However, nearly all contemporary natural gas appliances require electricity to ignite and
operate safely. Even cooktops, which can be lit with a match, require electricity for the
hood to properly vent indoor air pollution outside. Regardless of the policy decision made
by Council regarding the Clean Energy Program for New Buildings, most systems in new
buildings, including transportation, will increasingly be electric and require a resilient
electric system. Fortunately, organizations are working at the building, neighborhood, and
grid scale to ensure a resilient electric grid. These activities are described in detail below:
Building Level Resilience
The following efforts are related to building level resilience:
1. The 2022 California Energy Code includes energy resilience requirements including
solar energy systems on all buildings, “Battery Storage Ready” requirements for
single-family homes, and onsite storage requirements for most other buildings.
26 Andee Krasner, MPH & T. Stephen Jones, MD, MPH. Cooking with Gas Can Harm Children: Cooking
with Gas is Associated with Increased Risk of Childhood Respiratory Illnesses, Including Asthma.
27 See: https://pubmed.ncbi.nlm.nih.gov/23962958/
28 See: https://newscenter.lbl.gov/2013/07/23/kitchens-can-produce-hazardous-levels-of-indoor-
pollutants/
29 See: https://ucla.app.box.com/s/xyzt8jc1ixnetiv0269qe704wu0ihif7
30 Resolution 439 and the action to adopt it is described in the AMA House of Delegates Committee
Report: https://www.ama-assn.org/system/files/a22-refcmte-d-report-annotated.pdf.
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2. Emerging innovations such as vehicle to building technologies, wherein electric
vehicle batteries serve a secondary purpose as building energy source. This solution
enables electric vehicles to operate as an energy load management resource during
normal grid operations, as well as provide energy resilience benefits during outages.31
3. The enhanced energy efficiency of new buildings and the storage capacity of tank
storage water heaters means that heat pump space conditioning and water heating
systems act like thermal batteries during power outages. In practice, buildings
developed with all-electric heat pump technology can provide hot water and
conditioned air for hours after an outage.
4. The City is “leading by example” with a 770 kW battery for backup generation at the
Water Treatment Plant and a Microgrid Pilot study underway at Fire Station #1.
Neighborhood Level Resilience
The PG&E Community Microgrid Enablement Program is a pilot program facilitated by
the California Public Utilities Commission that allows community members, businesses,
or public agencies to create a community microgrid so long as they pay for the
infrastructure upgrades through a special tariff. Community microgrids typically pair
renewable energy generation with localized battery storage that can provide the electricity
needs for a subset of users during power outages. Central Coast Community Energy
(3CE) is also pursuing an innovative “front of meter” storage project wherein regional
agencies are siting large battery storage systems on their property for the benefit of the
local distribution grid.
Grid Level Resilience
Staff reached out to PG&E to learn more about local grid resilience issues. In response
to these inquiries, PG&E replied that they are constantly engaging in asset and service
planning analysis to understand performance and grid enhancement nee ds. Their
planning engineers are aware of the impacts to the grid posed by the growth of both
building and transportation electrification. They re-evaluate this load forecast each year,
incorporating into their models local policy changes, technology advan cements, market
data, new load applications, EV charging stations, and a variety of other
expectations. These load forecasts inform rate setting, resource adequacy, integration,
and procurement.
PG&E is also addressing Public Safety Power Shutoff issues through risk mapping, grid
hardening, and vegetation management. Regarding risk mapping, Figure 1, below, shows
PG&E’s risk map. Note that San Luis Obispo is not mapped here as a potential PSPS
area. Figure 2 provides PG&E’s “Sectionalizing Devices” map, wh ich identifies where
improvements to the local distribution grid have been made to allow for a smaller impact
if the grid does go down for a planned or unplanned reason. Figure 3 provides a map of
planned and completed vegetation management projects, which reduce potential wildfire
fuels around power lines.
31 More information about the California Public Utility Commission’s CPUC supports for transpor tation
electrification via the PG&E Vehicle-Grid Integration Pilot Program is available at
https://www.cpuc.ca.gov/news-and-updates/all-news/cpuc-supports-transportation-electrification-with-
approval-of-pge-vgi-pilots.
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Figure 1. Potential PSPS Area (Source: PG&E)
Figure 2. Sectionalizing Devices (Source PG&E)
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Figure 3. Enhanced Vegetation Managed Areas (Source: PG&E)
Ongoing Commitment to Equity
The Climate Action Plan for Community Recovery includes a commitment to implement
actions through an equity lens.32 The relationship between energy and equity is a key
focus area for the City and its sustainability work. The following are examples of how staff
integrated equity considerations into the update:
1. Met with local affordable housing providers and developers to learn from their
experience building and managing all-electric projects.
2. Closely evaluated existing cost-effectiveness studies and initial findings related to
future cost effectiveness studies to confirm that all-electric buildings are expected
to be cheaper to build than mixed-fuel buildings.
3. Continued to advocate for and facilitate access to Central Coast Community
Energy’s all-electric affordable housing unit incentive program.
Cost Effectiveness
The California Energy Codes and Standards Team, composed of staff at the Investor-
Owned Utilities operating in California (PG&E and SoCal Gas, respectively, in San Luis
Obispo’s service territory) drafts and publishes statewide cost effectiveness studies.33
32 See Administrative Action 1.1 of the Climate Action Plan:
https://www.slocity.org/home/showpublisheddocument/27891/637339848339500000 . The action directs staff to
integrate multiple equity considerations into implementation action project plans.
33 For more information about the California Energy Codes and Standards Team, see: https://localenergycodes.com/
Page 173 of 197
Item 6b
The City used the 2019 Cost Effectiveness Studies to make findings related to cost
effectiveness of the current program and the 2019 findings are still the most current and
best available resources.34 Updates to the studies to reflect changes in the 2022 Energy
Code are underway. The initial 2022 cost effectiveness study results for single family
homes are posted and they confirm previous expectations that all -electric buildings are
even more cost effective under the 2022 code given the code’s use of heat pump
equipment as baseline and its requirements for mixed-fuel buildings to be pre-wired for
all-electric appliances.35 It is important to note that these results would allow the City to
make cost effectiveness findings consistent with the California Energy Commission
approval process. However, these findings are not necessary since the City is not
amending California Energy Code requirements under California Code of Regulations,
Title 24, Part 6, nor is the City requiring the use or installation of any specific appliance
or system as a condition of approval.
Previous Council or Advisory Body Action
The topic of all-electric new buildings has been considered by Planning Commission and
City Council on numerous occasions including:
Planning Commission:
May 22, 2019 – Staff provided an informational presentation to Planning
Commission about all-electric new buildings.
February 26, 2020 – Planning Commission approved amendments to Title 17
providing regulatory flexibility for all-electric new buildings and adding a definition
for “all-electric building.”
June 8, 2022 – Staff provided an informational presentation to Planning
Commission about the 2022 update to the Clean Energy Program for New
Buildings.
June 22, 2022 – Planning Commission approved amendments to Title 17
extending regulatory flexibility until December 31, 2025, adding parking as eligible
for the flexibility provisions, and amending the definition an “all-electric buildings”
to better reflect the 2022 update.
City Council:
October 3, 2017, and August 21, 2018 – Avila Ranch and San Luis Ranch
Development Agreements consider all-electric new units.
September 18, 2018 – City Council identified its carbon neutrality goal and directed
staff to research possibility of requiring carbon neutral buildings as part of the City’s
building codes.
February 2019 – City Council provided unanimous direction to develop an
approach to carbon neutral new development.
34 The statewide study includes information for every climate zone and utility; the City is in Climate Zone 5 and received
utility services from Pacific Gas & Electric, and SoCal Gas.
35 For more information about the 2019 Cost Effectiveness Studies and how they informed the City’s policy, see June
16, 2020 Clean Energy Choice Program Council Agenda Report:
http://opengov.slocity.org/WebLink/DocView.aspx?id=122344&dbid=0&repo=CityClerk&searchid=dec3cc80 -f51d-
4826-bc4d-acf9f39433e5
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Item 6b
June 4, 2019 – City Council adopts the Climate Action Major City Goal (MCG) with
a “reach code” as an item in the work program.
September 3, 2019 – City Council adopted the Clean Energy Choice Program for
New Buildings.
June 16, 2020 – City Council rescinded portions of the September 3 action and
readopted the Clean Energy Choice Program.
July 7, 2020 – City Council conducted the second reading of Clean Energy Choice
Program ordinances.
August 18, 2020 – The City adopted the Climate Action Plan for Community
Recovery, which included building sector goals and explicitly identifies the need to
update the Clean Energy Choice Program in 2022.
May 18, 2021 – Staff provided a Climate Action Plan update to City Council, which
included an update on building electrification progress.
June 1, 2021 –City Council adopted the 2021-23 Financial Plan with the Climate
Action Major City Goal that called for updating Clean Energy Choice Program in 2022.
December 13, 2021 – Staff provided the City Council with a memorandum about
the first year of Clean Energy Choice for New Buildings Program implementation.
February 1, 2022 – Staff provided a presentation on the first phase of the Clean
Energy Choice Program and received strategic direction from City Council ahead
of the 2022 Program update.
Public Engagement
Staff conducted public engagement for the Clean Energy Program for New Buildings
Program update from December 2021 through June of 2022. As this policy primarily
impacts the developers and building community re sponsible for designing and
constructing new buildings, staff conducted targeted outreach to all known local builders
and developers. In addition, the City promoted a webinar for the general public and Open
City Hall to gather input from broader community.
Event Date Description
1. Developers’
Roundtable
December
2021
City staff provided an update about the
forthcoming Program update at the
Developers’ Roundtable meeting.
2. Email
outreach
December
and
February
2021
City staff reached out via email about the
forthcoming Program update to all known
builders and developers practicing in the
City, as well as to key community-based
organizations and business groups such as
the Chamber of Commerce and the SLO
Climate Coalition.
3. Individual
Meetings
January –
May 2022
City staff met with several builders and
developers to identify how the current
Program was working for their projects, and
to discuss areas of possible improvements.
Page 175 of 197
Item 6b
Event Date Description
4. Targeted
presentations
to
stakeholder
groups
January –
May 2022
Staff presented about the update to the
Program to several stakeholder
organizations through the spring of 2022 to
raise awareness and gather feedback.
Groups that received a presentation include
the Chamber of Commerce Legislative
Action committee, the Climate Coalition, 3C-
REN, the Central Coast Green Building
Council, and the Home Builders Association
of the Central Coast.
5. Community
Webinar
May 24th
2022
The City hosted a community webinar to
present the 2022 update to the City’s Clean
Energy Program for New Buildings to the
public and collect input. The webinar
continues to be viewed by community
members via Open City Hall and on the
City’s website.
6. Open City
Hall
May 25th
2022 –
June 10th
2022
City Staff prepared a survey on Open City
Hall for community members and
developers to formally provide their
feedback on the Program. The survey
received 14 total responses. 64 percent of
respondents knew about the City’s existing
Program supporting all-electric new
buildings prior to answering the survey.
7. Planning
Commission
June 8th
2022
City staff provided an informational
presentation to Planning Commission about
the 2022 update to the Clean Energy
Program for New Buildings.
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Item 6b
Utility Interaction
The City of San Luis Obispo has a successful history working closely with energy utility
partners. The City has previously partnered with PG&E and SoCal Gas on large scale
efficiency projects at numerous facilities and continues to evaluate opportunities for pilot
programs moving forward. To ensure orderly development, to maintain infrastructure as
it ages and the City becomes denser, and to continue to thrive as a community, it will be
critical to maintain and enhance close working relationships between all partners. Over
the course of this project, staff has worked with PG&E, SoCal Gas, and CCCE staff. Staff
met with PG&E several times to discuss interconnection questions raised during the
outreach process. PG&E provided information about Public Safety Power Shutoffs and
system planning considerations as described in the community resilience section, above .
Staff also met with SoCal Gas in early June to discuss coordination and collaboration on
the City’s climate targets. Finally, staff met with CCCE staff to understand their current
incentive programs and share suggestions for improvements to those program s.
CONCURRENCE
City Administration and Community Development concur on the contents of this report.
ENVIRONMENTAL REVIEW
Staff’s recommendations are found to be exempt from CEQA under the general rule,
15061(b)(3), because it can be seen with certainty that the provisions contained herein
would not have the potential for causing a significant effect on the environment. Further,
this ordinance is also exempt from CEQA under the categorical exemptions in Sections
15307 and 15308 of the CEQA Guidelines in that the proposed ordinance would institute
regulatory requirements intended to protect the environment and natural resources.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $59,442 $0 $0 $0
State -- -- -- --
Federal -- -- -- --
Fees -- -- -- --
Other: -- -- -- --
Total $59,442 $0 $0 $0
Page 177 of 197
Item 6b
Direct costs and staff time to implement the Clean Energy Program for New Buildings
occur in two categories:
1. Code Implementation. The all-electric requirements will be implemented through
the development review and/or building permit review process. The staff time to
review projects is already budgeted and is a core work task of the Community
Development Department. It is expected that the Program may reduce the amount
of staff review time required per project since projects will be streamlined with only
one onsite energy system and will no longer need to be evaluated for consistency
with the current local amendments to the California Energy Code.
2. Incentive Implementation. Proposed incentives include the ongoing “Green
Carpet” on-call helpdesk, capacity building trainings and convenings for local and
regional builders, and regulatory flexibility. The on-call helpdesk is already funded
through the end of Fiscal Year 22-23 with a total available budget of $59,442.
Capacity building trainings and convenings are available through 3C-REN and staff
have already initiated requests for these events, which will occur at no direct cost
to the City. Office of Sustainability and Community Development staff will continue
to engage with builders to identify ongoing technical needs, which is accounted for
in existing staff time and operational budgets. Should an applicant request the
proposed regulatory flexibility provisions, the work would occur through the existing
development review and/or building permit review process described above.
NEXT STEPS
Following receipt of approval from Council, work is expected to proceed on the following
schedule:
Task Timeframe
City Council Meeting for Second
Reading/Adoption of Ordinances
July 19, 2022
Begin Updated Program Implementation January 1, 2023
ALTERNATIVES
1. Council could direct staff not to pursue an update to the Clean Energy Program for
New Buildings, which would cause the Program to expire on December 31, 2022.
Under this alternative, the City would allow the Clean Energy Choice Program to
terminate at the end of 2022 and would adopt the statewide code for implementation
beginning in 2023. Staff does not recommend this alternative as it is inconsistent with
adopted Council policy and the City's climate action goals.
2. Council could amend staff’s approach to exemptions or incentives by adding or
removing exemption or incentive categories or by providing alternative approaches to
the proposed exemptions and incentives.
Page 178 of 197
Item 6b
3. Council could direct staff to return with an all-electric policy implemented through local
amendments to the California Energy Code. Under this alternative, staff would return
with the local amendments concurrent with the planned Building Code update
schedule for September. Staff does not recommend this alternative as it would
achieve the same function as staff’s current recommendation while also requiring work
to update the policy every three years.
4. Council could move forward with staff’s recommendation for the all-electric new
buildings ordinance and direct staff to amend or not pursue the am endments to Title
17 for purpose of regulatory flexibility.
ATTACHMENTS
A – Draft Ordinance adopting all-electric new building requirements
B – Draft Ordinance adopting amended regulatory flexibility incentive
Page 179 of 197
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O ______
ORDINANCE NO. _____ (2022 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING TITLE 8 (HEALTH AND SAFETY)
OF THE SAN LUIS OBISPO MUNICIPAL CODE BY ADDING CHAPTER
8.10 REQUIRING ALL-ELECTRIC NEW BUILDINGS
WHEREAS, greenhouse gas accumulation in the atmosphere as the result of
human activity is the primary cause of the global climate crisis; and
WHEREAS, in California alone, the initial impacts of climate change have resulted
in unprecedented disasters with human, economic, and environmental costs; and
WHEREAS, the Intergovernmental Panel on Climate Change estimates that global
emissions need to be reduced by 45 percent from 2010 levels by 2030, and 100 percent
by 2050 to prevent global catastrophe; and
WHEREAS, the State of California enacted Senate Bill (SB) 32 to require
greenhouse gas emissions to be reduced to 40 percent below 1990 levels by 2030 and
Governor Brown issued Executive Order B-55-18 establishing a statewide target of
carbon neutrality by 2045; and
WHEREAS, City of San Luis Obispo residents and businesses have repeatedly
identified climate action as a top community priority; and
WHEREAS, the City of San Luis Obispo City Council has directed staff to evaluate
strategies and options to achieve community-wide carbon neutrality by 2035; and
WHEREAS, Resolution 11159 (2020 Series) adopts the City of San Luis Obispo
Climate Action Plan for Community Recovery, which includes a communitywide goal of
carbon neutrality by 2035 and sector specific goal of n o net new building emissions from
onsite energy use by 2020; and
WHEREAS, the inventoried greenhouse gas emissions in the City of San Luis
Obispo come from a variety of sources, primarily transportation and energy use in
buildings and facilities; and
WHEREAS, as of January 2020, the community has access to clean electricity
procured by Central Coast Community Energy; and
WHEREAS, as of January 2030, Central Coast Community Energy’s electricity
supply will be carbon neutral and procured through direct investments; and
WHEREAS, the remaining source of greenhouse gas emissions from energy use
in buildings will come from the onsite combustion of fossil fuels, primarily natural gas; and
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Ordinance No. _____ (2022 Series) Page 2
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WHEREAS, the direct global warming impact of natural gas, which is primarily
composed of methane, is considerably higher than previously thought; and
WHEREAS, between September 1, 2020 and September 1, 2021, the City
received building permits for 121 residential units that could choose between all -electric
and mixed- fuel design and of these units, only 51 (approximately 46 percent) were built
all-electric, a rate that is inconsistent Resolution No. 11159 (2020 Series); and
WHEREAS, new natural gas connections pose substantial health and safety risks
to the community by exacerbating climate change impacts; and
WHEREAS, new natural gas connections pose substantial health and safety
issues due to seismic safety risks, indoor air quality risks, and by exacerbating climate
change impacts; and
WHEREAS, in order to mitigate these risks in support of public health and safety,
new sources of greenhouse gas emissions, in particular natural gas, need to be
eliminated; and
WHEREAS, Resolution No. 11133 (2020 Series) establishes a policy preference
for all-electric buildings and Resolution No. 11159 (2020 Series) resolves that there shall
be “no net new building emissions from onsite energy use b y 2020”; and
WHEREAS, California Constitution Article XI, Section 7 and Section 501 of the
City Charter establish the City’s authority to make and enforce within its limits ordinances
and regulations not in conflict with the constitution and laws of the State of California; and
WHEREAS, the Council expressly declares that this proposed Ordinance is
reasonably necessary to protect public health and safety; and
WHEREAS, the requirements specified in this Ordinance were reviewed via public
comment, through a robust outreach process; and
WHEREAS, on February 1, 2022, the City Council held a study session and
provided direction to City Staff to conduct further outreach an d to develop code
amendments; and
WHEREAS, on June 8, 2022, the Planning Commission received an informational
presentation on the proposed ordinance and provided feedback; and
WHEREAS, on June 22, 2022, the Planning Commission received adopted
Resolution PC-1063-2022 recommending that the City Council adopt regulatory flexibility
incentives; and
WHEREAS, on July 5, 2022, the City Council conducted a duly noticed Public
Hearing to consider testimony and input on the proposed ordinance.
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Ordinance No. _____ (2022 Series) Page 3
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NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Purpose. It is the purpose and intent of this Ordinance to update the
Clean Energy Program for New Buildings to protect public health and safety by requiring
all new buildings to be all-electric.
SECTION 2. Action. The Ordinance is hereby adopted by the City of San Luis
Obispo to be codified under Chapter 8.10 as specified in Exhibit A. The Council hereby
adopts the recitals herein as separate and additional findings of fact in support of adoption
of the Ordinance.
SECTION 3. Severability. If any word, phrase, sentence, part, section, subsection
or other portion of this amendment or any application thereof to any person or
circumstance is declared void, unconstitutional, or invalid for any reason, then such word,
phrase, sentence, part, section, subsection, or other portion, or the prescribed application
thereof, shall be severable, and the remaining provisions of this amendment, and all
applications thereof, not having been declared void, unconstitutional or invalid, shall
remain in full force and effect. The City of San Luis Obispo hereby declares that it would
have passed this Ordinance and each section, subsection sentence, clause, and phrase
of this amendment, irrespective of the fact that any one or more sections, subsection,
sentences, clauses, or phrases is declared invalid or unconstitutional.
SECTION 4. Findings. The City Council finds that each of the changes or
modifications to measures referred to herein are reasonably necessary because of local
climatic, geological, or topographical conditions in the area encompassed by the
boundaries of the City of San Luis Obispo, and the City Council adopts the following
findings in support of local necessity for the changes or modifications:
1. Scientific evidence has established that natural gas combustion, extraction,
and transportation produce significant greenhouse gas emissions that
contribute to global warming and climate change.
2. As a city located on the California Central Coast, San Luis Obispo is vulnerable
to the effects of sea level rise and resultant flooding within the San Luis Creek
watershed, and human activities releasing greenhouse gases into the
atmosphere cause increases in worldwide average temperature, which
contribute to melting of glaciers and thermal expansion of ocean water –
resulting in rising sea levels.
3. San Luis Obispo is already experiencing the repercussions of excessive
greenhouse gas emissions as rising sea levels and severe weather events
threaten the City’s nearby shoreline and infrastructure and cause significant
erosion leading to infrastructure failures including the Mud Creek slide resulting
in closure of Highway 1 for repairs, and economic impacts to surrounding
communities.
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Ordinance No. _____ (2022 Series) Page 4
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4. San Luis Obispo is situated along a wildland -urban interface and has been
identified as a Community at Risk from wildfire and is extremely vulnerable to
wildfires and firestorms, and human activities releasing greenhouse gases into
the atmosphere cause increases in worldwide average temperature, drought
conditions, vegetative fuel, and length of fire seasons—contributing to the
likelihood and consequences of fire.
5. The City of San Luis Obispo is situated at the base of a watershed of the Santa
Lucia Mountains and flooding of San Luis, Chorro, Stenner, Old Garden, and
Brizzolara Creeks results in conditions rendering fire department vehicular
traffic unduly burdensome or impossible, as witnessed in major floods that
occurred in 1952, 1961, 1969, 1973, 1978, 1982, and 1995. Furthermore, flood
conditions described above create the potential for overcoming the ability of the
fire department to aid or assist in fire control, evacuations, rescues, and other
emergency task demands inherent in such situations. The resulting
overburdening of fire department personnel may cause a substantial or total
lack of protection against fire for the buildings and structures located in the City
of San Luis Obispo. The afore-described conditions support the imposition of
fire protection requirements greater than those set forth in the California State
Building Standards Code and, in particular, support the imposition of new
development requirements for purpose of reducing the City’s contributions to
Greenhouse Gas Emissions resulting in a warming climate and related severe
weather events.
6. The aforementioned flood and rain events result in conditions wherein
stormwater can inundate the wastewater treatment system as witnessed in
major floods that occurred in 1952, 1961, 1969, 1973, 1978, 1982, and 1995.
Furthermore, rain events and flood conditions described above create a
condition referred to as Inflow and Infiltration (I/I) that allow rain and flood
waters to flow and/or seep into the wastewater system and overcome the ability
of the wastewater collection system and Water Reclamation Facility (WRF) to
convey and treat sewage. The resulting overburdening of the wastewat er
system can result in threats to public health, public and private property and
water quality and violations and fines from the State of California, the
Environmental Protection Agency (EPA) or others. To the extent that climate
change has the potential to make these conditions worse, requirements to
achieve reduced greenhouse gas emissions are necessary.
7. The City of San Luis Obispo is situated near three major faults each capable of
generating earthquakes with a magnitude of 7.5. These are the San Andrea s
to the east of the City, the Nacimiento-Rinconada that crosses Hwy 101 north
of the City then parallels the City to the east, and the Hosgri to the West. Other
faults of importance are the Huasna and West Huasna to the Southeast of the
City, the San Simeon to the Northwest, and the Edna and Edna Extended faults
which enter the southern areas of the City. In as much as these faults are
included as major California earthquake faults, which are subject to becoming
active at any time, the City of San Luis Obispo is particularly vulnerable to
devastation should such an earthquake occur. The potential effects include
isolating the City of San Luis Obispo from the North and South due to the
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Ordinance No. _____ (2022 Series) Page 5
O ______
potential for collapsing of freeway overpasses or a slide on both the Cue sta
and Ontario Grades and the potential for horizontal or vertical movement of the
Edna fault rendering surface travel across the southern extremities of the city
unduly burdensome or impossible. Additional potential situations inherent in
such an occurrence include loss of the City's two main water sources (the
Salinas and Whale Rock reservoirs), broken natural-gas mains causing
structure and other fires, leakage of hazardous materials, the need for rescues
from collapsed structures, and the demand for first aid and other medical
attention to large numbers of people. As a result, the City is pursuing a policy
to discourage additional natural gas extensions and the related, expanded risk
of gas leaks and explosions during seismic events for the protection o f human
life and the preservation of property in the event of such an occurrence.
8. That seasonal climatic conditions during the late summer and fall create
numerous serious difficulties in the control and protection against fire situations
in the City of San Luis Obispo. The hot, dry weather in combination with Santa
Lucia (offshore) winds frequently results in wildland fires in the brush -covered
slopes on the Santa Lucia Mountains, Morros, and the Irish Hills areas of the
City of San Luis Obispo. The aforementioned areas surround the City. When a
fire occurs in said areas, such as occurred in 1985 when the Los Pilitas fire
burned six days and entered the City and damaged many structures, the
entirety of local fire department personnel is required to control, monitor, fight
and protect against such fire situations in an effort to protect life and preserve
property and watershed land. The same climatic conditions may result in the
concurrent occurrence of one or more fires in the more populated areas of the
City without adequate fire department personnel to protect against and control
such a situation. Therefore, the above -described findings support the
imposition of measures reduce greenhouse gas emissions from carbon, and
support reducing the amount of natural gas distributed and used throughout the
City.
9. As described in the City of San Luis Obispo Climate Action Plan for Community
Recovery (2020), rapid actions are required to limit global warming and the
resulting environmental threat posed by climate change, including a policy that
calls for no net new emissions from new buildings. Actions that limit methane,
which is the primary component of natural gas, can slow the rate of climate
change and mitigate the related impacts.
10. Natural gas combustion and gas appliances emit a wide range of air pollutants,
such as carbon monoxide (CO), nitrogen oxides (NOx, including nitrogen
dioxide (NO2)), particulate matter (PM), and formaldehyde, which according to
a UCLA Study, have been linked to various acute and chronic health effects,
and additionally exceed levels set by national and California -based ambient air
quality standards. Therefore, the above-described findings support the
imposition of measures to eliminate natural gas infrastructure in new buildings
and development.
11. All-electric new buildings benefit the health, safety, and welfare, of San Luis
Obispo and its residents.
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Ordinance No. _____ (2022 Series) Page 6
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SECTION 5. Environmental Determination. This Ordinance was assessed in
accordance with the authority and criteria contained in the California
Environmental Quality Act (CEQA) and CEQA Guidelines, and is found to be
exempt from CEQA under the general rule, CEQA Guidelines Section 15061(b)(3),
because it can be seen with certainty that the provisions contained herein would
not have the potential for causing a significant effect on the environment. Further,
this ordinance is also exempt from CEQA under the categorical exemption s in
Sections 15307 and 15308 of the CEQA Guidelines in that the proposed Ordinance
would institute regulatory requirements intended to protect the environmen t and
natural resources, as the Ordinance will require the installation of less natural gas
infrastructure and reduce the amount GHG gas emissions in the City that are
produced form buildings, and reduce the risk of catastrophic infrastructure failure,
including explosions and fires caused by breaks and leaks in the natural gas
distribution system as a result of upset conditions due to deferred maintenance or
following an earthquake.
SECTION 6. Violations. Violation of the requirements of this Ordinance shall be
considered an infraction of the City of San Luis Obispo Municipal Code, punishable by all
the sanctions prescribed in Chapters 1.12 and 1.24.
SECTION 7. Effective Date. This Ordinance shall be effective as of January 1,
2023.
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Ordinance No. _____ (2022 Series) Page 7
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SECTION 8. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final
passage, in The New Times, a newspaper published and circulated in this City. This
ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the ____ day of ____, 2022, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ____ day of ____, 20 22, on the following
vote:
AYES:
NOES:
ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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Ordinance No. _____ (2022 Series) Page 8
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Exhibit A
Chapter 8.10
ALL-ELECTRIC NEW BUILDINGS
8.10.010 PURPOSE AND INTENT
The purpose of this chapter is to prohibit the installation of new natural gas infrastructure
to ensure that new buildings and associated uses:
A. Are consistent with Resolution No. 11133 (2020 Series) stating that, “It is the policy
of the City that new buildings should be all-electric”;
B. Implement Resolution No. 11159 (2020 Series) resolving that there shall be “no
net new building emissions from onsite energy use by 2020”;
C. Implement the Climate Action Plan for Community Recovery and the associated
goal of communitywide carbon neutrality by 2035;
D. Protect public health and safety by avoiding issues related to seismic safety risk,
indoor air quality risk, and impacts associated with climate change.
8.10.020 APPLICABILITY AND EFFECTIVE DATE
A. The effective date of this ordinance shall be January 1, 2023.
B. The provisions contained in Chapter 8.10 are applicable to Newly Constructed
Buildings, including those that are built after a demolition, whose Building Permit
applications have been submitted on or after January 1, 2023.
C. The provisions contained in Chapter 8.10 do not apply to Additions or Alterations.
Residential subdivisions in process of permitting or constructing initial public
improvements for any phase of a final map recorded prior to January 1, 2020 , are
exempt, unless compliance is required by an existing Development Agreement.
Additional exemptions and exceptions to this Chapter are identified in Sections for
outdoor cooking and heating.
D. This Chapter shall in no way be construed as amending California Energy Code
requirements under California Code of Regulations, Title 24, Part 6, nor as
requiring the use or installation of any specific appliance or system as a condition
of approval.
8.10.030 DEFINITIONS
The following words and phrases, whenever used in this Chapter, shall have the
meanings defined in this section unless the context clearly requires otherwise:
A. “ACCESSORY DWELLING UNIT” means an Accessory Dwelling Unit as defined
in City of San Luis Obispo Municipal Code Section 17.156.004.
B. “ALL-ELECTRIC BUILDING” means a building that has no natural gas plumbing
installed within the building and that uses electricity as the source of energy for all
space heating, water heating, cooking appliances, and clothes drying appliances.
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Ordinance No. _____ (2022 Series) Page 9
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C. “COMMERCIAL KITCHEN EQUIPMENT” means equipment intended for use in
“Eating and Drinking Establishments,” including but not limited to commercial
cooking appliances (see California Fire Code, Chapter 2, Definitions) domestic
cooking appliances, and high-capacity dishwashers,
D. “CRITICAL FACILITIES” means a facility that is critical for the health and welfare
of the population and is especially important following hazard events. Critical
facilities include essential facilities, transportation systems, lifeline utility systems,
high potential loss facilities and hazardous material facilities.
E. “EATING AND DRINKING ESTABLISHMENTS" means businesses primarily
engaged in serving prepared food and/or beverages for consumption on or off the
premises as defined in the San Luis Obispo Municipal Code 17.156.012.
F. "MANUFACTURING AND INDUSTRIAL FACILITY" means a building with the
occupancy classification as defined in the California Building Code, Chapter 3,
Section 306, Group F.
G. “MIXED-FUEL BUILDING” means a building that is plumbed for the use of natural
gas as fuel for space heating, water heating, cooking or clothes drying appliances.
H. “NATURAL GAS INFRASTRUCTURE” means natural gas or fuel gas piping, other
than service pipe, in or in connection with a building, structure or within the property
lines of premises, extending from the point of delivery at the gas meter as specified
in California Plumbing Code and Mechanical Code.
I. “NEW LY CONSTRUCTED BUILDING” means a building or space that has never
been used or occupied for any purpose.
J. "PROCESS" means an activity or treatment that is not related to the space
conditioning, lighting, service water heating, or ventilating of a building as it relates
to human occupancy.
K. "PROCESS LOAD" means an energy load resulting from a Process.
8.10.040 ALL-ELECTRIC NEW BUILDINGS REQUIREMENT
A. All Newly Constructed Buildings shall be All-Electric Buildings. Natural Gas
Infrastructure is prohibited in Newly Constructed Buildings and in onsite systems
related to Newly Constructed Buildings.
B. The requirements of this Section shall be deemed objective planning standards
under Government Code section 65913.4 and objective development standards
under Government Code Section 65589.5.
Page 189 of 197
Ordinance No. _____ (2022 Series) Page 10
O ______
8.10.050 TECHNICAL EXEMPTIONS
A. Notwithstanding Section 8.10.040, for purposes of this Section, provision of
Natural Gas Infrastructure for certain end uses is allowed when no all-electric
alternative is commercially available or viable. End uses eligible for technical
exemptions are:
a. Back-up power for Critical Facilities necessary to protect public health
or safety in the event of an electric grid outage.
b. Process Loads in a Newly Constructed Manufacturing and Industrial
Facility. For Manufacturing and Industrial facilities with unknown
tenants, exemptions may be provided pending review of initial tenant
occupancy.
B. Notwithstanding Section 8.10.040, for purposes of this Section, provision of
Natural Gas Infrastructure for certain end uses is allowed through December
31, 2025 when no all-electric alternative is commercially available or viable.
End uses eligible for technical exemptions are:
a. Commercial Kitchen Equipment in a Newly Constructed Eating and
Drinking Establishment.
b. Water heating or space heating in a newly constructed attached
Accessory Dwelling Unit in which new services are provided by systems
from an existing mixed fuel building.
c. A swimming pool that is provided as a public amenity.
C. Concurrent with the Building Permit application, p roject applicants seeking a
technical exemption as identified in 8.10.050A and 8.10.050B must submit an
exemption application to the Community Development Director for approval.
The submittal must include a description of how the purpose and intent of this
Chapter, as outlined in 8.10.010, is addressed to the maximum extent feasible.
The Director's decision shall become a condition of the development or building
permit issued for the project.
8.10.060 PUBLIC INTEREST EXEMPTION
A. Notwithstanding the requirements of this Chapter and the Council's Clean
Energy Program for New Buildings, and other public health and safety hazards
associated with Natural Gas Infrastructure, minimally necessary and
specifically tailored Natural Gas Infrastructure may be allowed in a building
otherwise subject to the requirements of this Chapter if the Community
Development Director makes all of the following findings:
a. The physical site conditions, necessary operational requirements, or the
public health or safety risks in the event of an electric grid outage make
it infeasible to meet the requirements of this Chapter.
b. The project meets the City’s adopted sustainability and environmental
policies and is consistent with Purpose and Intent of this Chapter, as
outlined in 8.10.010.
Page 190 of 197
Ordinance No. _____ (2022 Series) Page 11
O ______
c. The project has mitigated adverse health, safety, or general welfare
impacts as they relate to new Natural Gas Infrastructure to persons
residing or working on the site or in the vicinity to the greatest extent
feasible.
d. The grant of an exemption pursuant to this Section will not constitute a
grant of special privilege—an entitlement inconsistent with the
limitations upon other similarly situated properties in the vicinity with the
same zoning.
B. Concurrent with the Building Permit application, project applicants seeking a
public interest exemption as identified in 8.10.060A must submit an exemption
application to the Community Development Director for approval. The burden
shall be on the applicant to demonstrate the grounds for an exemption and the
submittal must include sufficient evidence for the Community Development
Director to make the findings required in 8.10.060A. The Director's decision
shall become a condition of the development or building permit issued for the
project.
18.10.070 IMPLEMENTATION AND ENFORCEMENT
A. In addition to any other remedy authorized by this code, any violation of the
provisions of this chapter is considered an infraction of the City of San Luis Obispo
Municipal Code, punishable by all the sanctions prescribed in Chapter s 1.12 and
1.24.
Page 191 of 197
Page 192 of 197
O _____
ORDINANCE NO. _____ (2022 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING TITLE 17 (ZONING
REGULATIONS) OF THE MUNICIPAL CODE IN SUPPORT OF THE
CLEAN ENERGY PROGRAM FOR NEW BUILDINGS (PL-CODE-0286-
2022)
WHEREAS, greenhouse gas accumulation in the atmosphere as the result of
human activity is the primary cause of the global climate crisis; and
WHEREAS, in California alone, the initial impacts of climate change have resulted
in unprecedented disasters with tremendous human, economic, and environmental costs;
and
WHEREAS, the Intergovernmental Panel on Climate Change estimates that global
emissions need to be reduced by 45 percent from 2010 levels by 2030, and 100 percent
by 2050 to prevent global catastrophe; and
WHEREAS, the State of California enacted Senate Bill (SB) 32 to require
greenhouse gas emissions to be reduced to 40 percent below 1990 lev els by 2030 and
Governor Brown issued Executive Order B-55-18 establishing a statewide target of
carbon neutrality by 2045; and
WHEREAS, City of San Luis Obispo residents and businesses have repeatedly
identified climate action as a top community priority; and
WHEREAS, Resolution 11159 (2020 Series) adopts the City of San Luis Obispo
Climate Action Plan for Community Recovery, which includes a communitywide goal of
carbon neutrality by 2035 and sector specific goal of n o net new building emissions from
onsite energy use by 2020; and
WHEREAS, the inventoried greenhouse gas emissions in the City of San Luis
Obispo come from a variety of sources, primarily transportation and energy use in
buildings and facilities; and
WHEREAS, as of January 2020, the community has access to clean electricity
procured by Central Coast Community Energy and as of January 2030, Central Coast
Community Energy’s electricity supply will be carbon neutral and procured through direct
investments; and
WHEREAS, the remaining source of greenhouse gas emissions from energy use
in buildings will come from the onsite combustion of fossil fuels, primarily natural gas; and
WHEREAS, the direct global warming impact of natural gas, which is primarily
composed of methane, is 86 times higher carbon dioxide over a twenty-year period; and
Page 193 of 197
Ordinance No. ______ (2022 Series)
O ______
WHEREAS, new natural gas connections pose substantial health and safety risks
to the community by exacerbating climate change impacts , introducing natural gas
infrastructure hazards, and generating indoor air pollution from natural gas combustion;
and
WHEREAS, in order to mitigate these risks in support of public health and safety,
new sources of greenhouse gas emissions need to be substantially reduced or
eliminated; and
WHEREAS, Resolution No. 11133 (2020 Series) establishes a policy preference
for all-electric buildings and Resolution No. 11159 (2020 Series) resolves that there shall
be “no net new building emissions from onsite energy use by 2020”; and
WHEREAS, although all-electric buildings are common in the U.S., local and
regional developers may be designing their first electric building; and
WHEREAS, highly efficient electric appliances may require mechanical equipment
that projects in the building pipeline may not have planned for; and
WHEREAS, local and regional builders have expressed certain design standards
as potential obstacles to designing and constructing all-electric buildings; and
WHEREAS, minor amendments within Municipal Code Section 17.70.095
(Incentives related to new all-electric buildings) would assist local and regional builders
with constructing all-electric buildings that are in the building pipeline; and
WHEREAS, the requirements specified in this Ordinance were reviewed via public
comment and through a publicly noticed public hearing process; and
WHEREAS, on February 1, 2022, the City Council held a study session and
provided direction to City Staff to conduct further outreach and to develop code
amendments; and
WHEREAS, on June 8, 2022, the Planning Commission received an informational
presentation on the proposed ordinance and provided feedback; and
WHEREAS, on June 22, 2022, the Planning Commission adopted Resolution PC-
1063-2022 recommending that the City Council adopt regulatory flexibility incentives; and
WHEREAS, on July 5, 2022, the City Council conducted a duly noticed Public
Hearing to consider testimony and input on the proposed ordinance.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
Page 194 of 197
Ordinance No. ______ (2022 Series)
O ______
SECTION 1. Findings. Based upon all the evidence, the City Council makes the
following findings:
1. The proposed amendments to Title 17 will not significantly alter the character
of the City or cause significant health, safety, or welfare concerns, since the
amendment is consistent with the General Plan and directly implement City
goals and policies to facilitate All-Electric buildings and the Clean Energy
Choice for New Buildings Program.
2. The proposed amendments to Title 17 are consistent with existing zoning
practices by establishing reasonable regulations to authorize the Director of
Community Development to act on certain applications on an administrative
basis due to the minor nature of a proposed improvement, use of land, or
allowed deviation from development standards.
3. The proposed amendment to the text of the Zoning Ordinance is consistent
with the purpose of the Zoning Ordinance to promote the growth of the City in
an orderly manner and to promote and protect the public health, safety, and
general welfare in that the proposed allowances to development standards are
minor in nature and will and otherwise maintain the existing policies, standards
and regulations of the Zoning Ordinance.
4. Periodic amendments, updates, and corrections of the Municipal Code are
consistent with General Plan Policy to maintain regulations which are effective
in implementing policies consistent with the General Plan.
5. The amendment is temporary and includes a sunset date of December 31,
2025.
SECTION 2. Environmental Determination. The proposed code amendment has
been assessed in accordance with the authority and criteria contained in the California
Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental
regulations of the City. Specifically, the proposed amendment has been determined to be
exempt from further environmental review pursuant to CEQA Guidelines Section
15061(b)(3) because the activity is covered by the general rule that CEQA applies only
to projects which have the potential for causing a significant effect on the environment,
and it can be seen with certainty that there is no possibility that the activity in question
may have a significant effect on the environment. The ordinance additionally is
categorically exempt from environmental review un der the Class 3 exemptions for (1)
construction and location of limited numbers of new, small facilities or structures, and (2)
installation of small new equipment and facilities in small structures (§ 15303, CEQA
Guidelines.) Specifically, the amendment to zoning regulations; 1) does not lead to
physical improvements beyond those typically exempt; and 2) is not specifically listed as
a categorical or statutory exemption but exhibits characteristics similar to one or more
specific exemptions; and 3) provide s allowances to specific development standards that
are minor in nature in the area immediately surrounding and attached to approved
structures and existing improvements and is not anticipated to have a significant effect
on the environment.
Page 195 of 197
Ordinance No. ______ (2022 Series)
O ______
SECTION 3. Action. Title 17 (Zoning Regulations) of the Municipal Code is hereby
amended to support the Clean Energy Program for New Buildings by providing temporary
authority to the Community Development Director to grant incentives related to the
standards set forth in various sections of Municipal Code Chapter 17.70 (Site
Development and General Development Standards) and to refine the definition of “All-
Electric Building” in Chapter 17.158 as set forth in Exhibit A. Be it further recommended
that the Ordinance shall be effective for a limited term beginning January 1, 2023 and
concluding December 31, 2025.
INTRODUCED on the ____ day of ____, 2022, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ____ day of ____, 20 22, on the following
vote:
AYES:
NOES:
ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 196 of 197
Ordinance No. ______ (2022 Series)
O ______
Exhibit A
CHAPTER 17.70 SITE DEVELOPMENT AND GENERAL DEVELOPMENT
STANDARDS
Amend Section 17.70.095.A to read as follows:
A. Purpose. The purpose of these regulations is to support the city’s Clean Energy
Choice for New Buildings Program by providing temporary incentives in the
application of site development standards, for the provision of all-electric
buildings.
Amend Section 17.70.095.C to read as follows:
C. Standards. Site development standards included in this chapter for accessory
structures; edge conditions; FAR; fences, walls and hedges; height measurement
and exceptions; hillside development standards; lot coverage; mixed -use
development; parking requirements; and setbacks may be exceeded to the
minimum extent deemed necessary to allow for equipment installations or similar
improvements to accommodate all-electric buildings.
Amend Section 17.70.095.E to read as follows:
E. Term. The provisions in this section shall apply to building permits with an
application date after July 1, 2020, and prior to December 31, 20222025. (Ord.
1685XXXX § 3 (Exh. A (part)), 20202022)
CHAPTER 17.158 GENERAL DEFINITIONS
Amend Section 17.158.006 - A to read as follows:
ALL-ELECTRIC BUILDING” is a building that has no natural gas plumbing installed within
the building and that uses electricity as the source of energy for all space heating, water
heating, cooking appliances, and clothes drying appliances. An All-Electric Building may
be plumbed for the use of natural gas as fuel for appliances in a commercial kitchen.
Page 197 of 197
Clean Energy Program for New Buildings: 2022 UpdateCity Council Public Hearing – July 5, 20221
Recommendations1.Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 8 (Health and Safety) of the San Luis Obispo Municipal Code by adding Chapter 8.10 requiring all-electric new buildings” as amended.2.Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 17 (Zoning Regulations) of the Municipal Code supporting the Clean Energy for New Buildings Program (PL-CODE-0286-2022)” to provide regulatory flexibility through December 31, 2025 in support of the Clean Energy for New Buildings Incentive Program.3.Direct Staff to return to Council by December 31, 2025 to report on the effectiveness and appropriateness of the proposed exemptions and incentives and, if necessary, propose amendments. 2
AgendaCurrent Policy and ProgramInformation Learned Since Adoption2022 Program UpdateKey ConsiderationsPublic Engagement3
Climate Action Plan for Community RecoveryOn August 19, 2020, City Council approved the City’s Climate Action Plan for Community Recovery and adopted Resolution 11159 (2020 Series), which includes:The goal of carbon neutrality by 2035.A building sector goal of zero operational greenhouse gas (GHG) emissions from new buildings by 2020.4
The City’s Current Approach to All-ElectricNew Buildings1.Resolution 11133 (2020 Series) stating that, “it is the Policy of the City that new buildings should be all-electric.” 2.Ordinance 1684 (2020 Series) which requires that mixed-fuel buildings be substantially higher performing than all-electric buildings and requires solar installations on nonresidential buildings. 3.Incentives including funding for technical assistance for builders to help them successfully process permits for all-electric buildings, as well as advocacy with external partners for additional financial incentives.4.Ordinance 1685 (2020 Series) allowing limited term regulatory flexibility.5
Information Learned Since Program Adoption Participation in the current program is not sufficient to accomplish City adopted goals for greenhouse gas emissions reductions. Local Incentives are a useful tools for supporting all-electric new buildings.55 local governments including City of Santa Cruz and City of Santa Barbara have taken local action. The 2022 California Energy Codesupports the transition to all-electric buildings.The California Air Resources Board (CARB) Draft 2022 Scoping Plancenters electrification in the state’s climate action work program.Natural gas infrastructure carries public health and safetyrisks.6
2022 Program UpdateIn response to Council strategic direction, staff has developed a proposed update that :Requires all-electric new buildingsProvides reasonable exemptions, incentives, and regulatory flexibilityIs aware of resilience considerationsIs developed through extensive community outreach7
2022 Program Component #1:Ordinance Requiring All-Electric New BuildingsAll-Electric New Building RequirementBuilding permit applications for new buildings and associated on-site equipment are required to be all-electric beginning on January 1, 2023. Consistent with Council Policy and adopted Climate Action Plan goals.Protects public health and safety by avoiding risks related to climate change, seismic safety, and climate change (located in Title 8 (Health and Safety) of the City’s Municipal Code).8
Technical Exemptions1.Back-up power for Critical Infrastructure necessary to protect public health and safety in the event of an electric grid outage (ongoing). 2.Process Loads in a Newly Constructed Manufacturing and Industrial Facility (ongoing). 3.Commercial Kitchen Equipment in a Newly Constructed Eating and Drinking Establishment (through December 31, 2025). 4.Water heating and space heating in an attached Accessory Dwelling Unit where equipment in the existing building is serving the attached Accessory Dwelling Unit. (through December 31, 2025). 5.A swimming pool that is provided as a public amenity (through December 31, 2025). Public Interest Exemption2022 Program Component #1:Ordinance Requiring All-Electric New Buildings9
8.10.050.A.b: Process Loads in a Newly ConstructedManufacturing and Industrial Facility. For a Manufacturing andIndustrial facilities facility with unknown future tenants, anexemptions may be provided that allows the extension ofNatural Gas Infrastructure into the building at time ofconstruction to support future Process Loads. pending reviewof initial tenant occupancy.2022 Program Component #1:Proposed Amendment to the “Process Loads” Exemption10
2022 Program Component #2:Incentive Program Including Ordinance Extending Regulatory FlexibilityExtended Regulatory FlexibilityThe draft ordinance (Attachment B) amends Municipal Code Section 17.70.095 to extend the provision of temporary incentives in the application of site development standards for new all-electric buildings. Adds “parking requirements” Extends the incentive term from December 31, 2022, to December 31, 2025. Other IncentivesTechnical AssistanceCalifornia Energy Code TrainingCommunity Forum11
2022 Program Component #3: Definition AmendmentThe proposed ordinance (Attachment B) amends the current definition of “All-Electric-Building” as currently codified in Municipal Code Section 17.158.006. The current definition “All-Electric Building” includes a sentence exempting commercial kitchens from all-electric requirements. While the 2022 Program retains these exemptions, staff recommends striking this from the definition since the definition does not refer to the other exemptions. As identified in Attachment B, staff recommends removing this sentence from the definition in Title 17 to provide clarity by allowing all the exemptions to live together in the new relevant code section (Chapter 8.10). 12
Public Health and Safety FindingsClimate Change.Drastic reductions in greenhouse gas emissions from all sectors, including buildings, are necessary to prevent increasingly hazardous climate disasters. A rapid reduction in natural gas is particularly important.Seismic Safety.Buried gas pipelines are vulnerable to earthquakes and can leak or break due to strong shaking, ground transformation, or liquefaction, which can cause explosions and fires if ignited.Indoor Air Quality. Natural gas combustion produces toxic byproducts that accumulate indoors and has been linked to an increase in respiratory diseases. 13
Resilience Considerations Nearly all contemporary natural gas appliances require electricity to ignite and operate safely. A resilient electrical grid is critical to community well being regardless of Council’s action.Organizations at all levels of government and scale are aggressively pursuing grid resilience efforts.14
Equity & Cost Effectiveness1.Staff met with local affordable housing providers and developers to learn from their experience building and managing all-electric projects. 2.The City is committed to advocating for and facilitating access to Central Coast Community Energy’s all-electric affordable housing unit incentive program. 3.Staff closely evaluated existing cost-effectiveness studies and initial findings related to future cost effectiveness studies to confirm that all-electric buildings are expected to be cheaper to build than mixed-fuel buildings.15
Public EngagementStaff conducted public engagement for the Clean Energy Program for New Buildings Program update from December 2021 through June of 2022. Met with builders and developers, building organizations, energy utilities, and community organizations.Provided a community webinar and hosted an Open City Hall public survey. Community feedback shaped the ordinance and exemptions.16
Next StepsTask TimeframeCity Council Meeting for Second Reading/Adoption of OrdinancesJuly 19, 2022Begin Updated Program ImplementationJanuary 1, 202317
Recommendations1.Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 8 (Health and Safety) of the San Luis Obispo Municipal Code by adding Chapter 8.10 requiring all-electric new buildings” as amended.2.Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 17 (Zoning Regulations) of the Municipal Code supporting the Clean Energy for New Buildings Program (PL-CODE-0286-2022)” to provide regulatory flexibility through December 31, 2025 in support of the Clean Energy for New Buildings Incentive Program.3.Direct Staff to return to Council by December 31, 2025 to report on the effectiveness and appropriateness of the proposed exemptions and incentives and, if necessary, propose amendments. 18
THANK YOU!19
Alternatives1.Council could direct staff not to pursue an update to the Clean Energy Program for New Buildings, which would cause the Program to expire on December 31, 2022. Under this alternative, the City would allow the Clean Energy Choice Program to terminate at the end of 2022 and would adopt the statewide code for implementation beginning in 2023. Staff does not recommend this alternative as it is inconsistent with adopted Council policy and the City's climate action goals.2.Council could amend staff’s approach to exemptions or incentives by adding or removing exemption or incentive categories or by providing alternative approaches to the proposed exemptions and incentives. 3.Council could direct staff to return with an all-electric policy implemented through local amendments to the California Energy Code. Under this alternative, staff would return with the local amendments concurrent with the planned Building Code update schedule for September. Staff does not recommend this alternative as it would achieve the same function as staff’s current recommendation while also requiring work to update the policy every three years. 4.Council could move forward with staff’s recommendation for the all-electric new buildings ordinance and direct staff to amend or not pursue the amendments to Title 17 for purpose of regulatory flexibility. 20
1010 Marsh St., San Luis
(805) 546-8208 . FAX
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a resident
of the county aforesaid, I am over the age of
eighteen years, and nor a party interested in the
above entitled matter. I am the principal clerk
of the printer of the New Times, a newspaper
of general circulation, printed and published
weekly in the City of San Luis Obispo, County
of San Luis Obispo, and which has been
adjudged a newspaper of general circulation by
the Superior Court of the County of San Luis
Obispo, State of California, under the date of
February 5, 1993, Case number CV72789: that
notice of which the annexed is a printed copy
(set in type not smaller than nonpareil), has been
published in each regular and entire issue of said
newspaper and not in any supplement thereof on
the following dates, to -wit:
in the year 2022.
I certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at San Luis Obispo, California, this day
of Sylti< 2022.
���4�
Patricia Horton, New Times Legals
Proo
SAN LUIS OBISPO CITY COUNCIL
NOTICE OF PUBLIC HEARING
The Son Luis Obispo City Council invites all interested
persons to attend a public hearing on Tuesday July 5,
20P2 at 6d10 p.m. held in the Council Chambers at City
Hell, 990 Palm Street, San Luis Obispo. Please note that
Zoom participation will not be supported, as this will be
an in -person meeting. Meetings can be viewed remotely
on Government Access Channel 20 or streamed live
from the City's YouTube channel at htm11VO t 11$lo c N.
Public comment, prior to the start of the meeting, may
be submitted in writing via U.S. Mail delivered to the City
Clerk's office at 990 Palm Street, San Luis Obispo, CA 93401
or by email to ema lc nc'I®d cN ro.
PUBLIC HEARING ITEMS:
•. A Public Hearing to introduce the following Ordinances.
as part of the Clean Energy Program for New Buildings
2022 Update:
1. An Ordinance to amend the City of San Luis Obispo
Municipal Code Title 81Health and Safety) to add
Chapter 8.10 IAII-Electric New Buildings) to prohibit
the installation of new natural gas infrastructure and
require all -electric new buildings starting January 1.
2023;and
2, An Ordinance to amend the City of San Luis Obispo
Municipal Code Section 17.70.095 (Incentives
related to new all -electric buildings) to modify
the type of temporary flexibility in the application
of site development standards for the provision
of all electric buildings and emend the term of
the Ordinance to December 31, 2025 and amend
Municipal Code Chapter 17.158 (General Definitional
definition for an all -electric building, with an
exemption from Environmental Review (CEOA).
(Project Address: Citywide; Case 8: CODE-0285-
2MZ City of San Luis Obispo, owner/applicam)
Far more information, you are invited to contact Chris
Read of the City's Administration Department at (805) 781-
7151 or by email at tread®slocituora.
• A Public Hearing to Introduce an Ordinance amending
Title 5 (Licenses, Permits, and Regulations) of the
Municipal Code to amend Chapter 5.50 (Sidewalk
Cafesl to add Chapter 5.51(Pardets), which is intended
to provide opportunities for properly licensed and
permitted restaurants, coffee shops and bakeries to
offer outdoor dining on public sidewalks, in a manner
compatible with pedestrian traffic and surrounding
uses, in commercial zones where such uses are
allowed. The Council will also consider adopting a
Resolution approving the City of San Luis Obispo
Outdoor Dining Guide and adapt new fees for Parklets,
Sidewalk Cafes, and Tables and Chairs Permits.
For more information, you are invited to contact Adam
Fukushima of the City'; Public Works Department at (805)
781-7590 or by email at atakushmagsieft QO.
The City Council may also discuss Other hearings or
business items before or after the items listed above. If
you challenge the proposed project in court, you may be
limited to raising only those issues You or someone else
raised at the public hearing described in this notice, or in
written correspondence delivered to the City Council at, or
prior to, the public hearing.
Council Agenda Reports for this meeting will be available
for review one week in advance of the meeting date On
the City's website, under the Public Meeting Agendas
web page: a city /aovemmenVgoUf r-
d- ' n:l/attend -end-minutes. Please call the
_City Clerk's Office at (805) 781-7100 for more information.
The City Council meeting will be televised live on Charter
Cable Channel 20 and live streaming on the Cdys YouTube
channel buyiu_s haste itv.
June 23, 20n
Admin&Pmong/,N NiG Ad Wl,rTMGO /BUSINFSSINNk Na,iu.M—f fPub
1010 Marsh St., San Luis Obispo, CA 93401
(805) 546-8208 . FAX (805) 546-8641
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a resident
of the county aforesaid, I am over the age of
eighteen years, and not a party interested in the
above entitled matter. I am the principal clerk
of the printer of the New Times, a newspaper
of general circulation, printed and published
weekly in the City of San Luis Obispo, County
of San Luis Obispo, and which has been
adjudged a newspaper of general circulation by
the Superior Court of the County of San Luis
Obispo, State of California, under the date of
February 5, 1993, Can number CV72789: that
notice of which the annexed is a printed copy
(set in type not smaller than nonpareil), has been
published in each regular and entire issue of said
newspaper and not in any supplement thereof on
the following dates, to -wit:
'S�nr 23
in the year 2022.
I certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at San Luis Obispo, California, this day
7. r> ofS! Iowa��_
1_ 2022.
�C�
Patricia Horton, New Times Legals
Proof of Publication of
CITY OF SAN LUIS OBISPO
NOTICE OF ELECTION
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syeciGsalN provided, entitled m vote far me A. ran file nominated papers.
The City Clarks M. will host a group ...a to mview Me Candidate
Pandbaik and issue Nummatan Papers on Menday, July 18. 2022 at 1:00 p.m.
m CRY Hall, 000 Palm Sheet, San Wa OMsowfar more irh rmatlon or to make
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