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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. Page 161 of 197 Item 6b 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 Page 162 of 197 Item 6b 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 . Page 163 of 197 Item 6b 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. Page 164 of 197 Item 6b 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). Page 165 of 197 Item 6b 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. Page 166 of 197 Item 6b 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/. Page 167 of 197 Item 6b 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. Page 168 of 197 Item 6b 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 Page 169 of 197 Item 6b 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. Page 170 of 197 Item 6b 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. Page 171 of 197 Item 6b Figure 1. Potential PSPS Area (Source: PG&E) Figure 2. Sectionalizing Devices (Source PG&E) Page 172 of 197 Item 6b 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 Page 174 of 197 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. Page 176 of 197 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 Page 180 of 197 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 Page 181 of 197 Ordinance No. _____ (2022 Series) Page 2 O ______ 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. Page 182 of 197 Ordinance No. _____ (2022 Series) Page 3 O ______ 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. Page 183 of 197 Ordinance No. _____ (2022 Series) Page 4 O ______ 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 Page 184 of 197 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. Page 185 of 197 Ordinance No. _____ (2022 Series) Page 6 O ______ 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. Page 186 of 197 Ordinance No. _____ (2022 Series) Page 7 O ______ 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 Page 187 of 197 Ordinance No. _____ (2022 Series) Page 8 O ______ 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. Page 188 of 197 Ordinance No. _____ (2022 Series) Page 9 O ______ 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 AgendaCurrent Policy and ProgramInformation Learned Since Adoption2022 Program UpdateKey ConsiderationsPublic 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 UpdateIn response to Council strategic direction, staff has developed a proposed update that :Requires all-electric new buildingsProvides reasonable exemptions, incentives, and regulatory flexibilityIs aware of resilience considerationsIs developed through extensive community outreach7 2022 Program Component #1:Ordinance Requiring All-Electric New BuildingsAll-Electric New Building RequirementBuilding 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 IncentivesTechnical AssistanceCalifornia Energy Code TrainingCommunity 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 FindingsClimate 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 EngagementStaff 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 WW m heresy given Nat a Gererd Mudiupal Election will 0 had in Me CJry of San WS (Made on TueOay, Mgvembm 8, 2022, her tie tullowing Officers WMmer Full term of larm'. s Fix 2laemoers of Me City Couned Nil term of tour years Ton norminstlad owned for these am began, on July 18, = and dome on Apparel 12. = at 590 p.m. Carol rewuress are available on Na City wedast. order Me alti al Elections and page Ntral/www.sIdA mN povemmm�pmunicioalalecterul or on Me CauMY of San Who Coaled Clerk- BemNer5 wWsi4 under the bond s aad Voting web page thdra yv, Ba tight, i4p J. II ne one or Dory one person is nanNWed par an sleeve olflm, managing', me swerve otfirm may be rnae as presented by sheeted 10229 of eie Hectors Code of the State of Colpamu. say Can Wis CNspo resNent aged 18 or older who is registerell pa ems in the Cary of Elan Luis Obispo, eligible to Was to oath M office, and unless otherwise 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 an widened sol the City ❑ ll Mat at (805) 781-7103 or PhapA� 8ms.gm. Jute 23. 2022 Adm1n & Persora /.NTMG A&ww/NTMG OIGc/Bfa5INP55/Publ. Nuia,/Prodo( Nli