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HomeMy WebLinkAbout6/16/2020 Item 11, Norwood From:Gabby Reynaga < To:E-mail Council Website Subject:CPSA Decarb Testimony_San Luis Obispo Attachments:CPSA Decarb Testimony_San Luis Obispo - Heidi Harmon.docx Please see attached the California Pool and Spa Association testimony regarding Agenda Item 11 of the upcoming city council meeting. PLEASE NOTE NEW SUITE NUMBER. Gabby Reynaga Administrative Specialist 915 L Street, Suite 1100 Sacramento, CA 95814 916-447-5053 E-MAIL NOTICE This e-mail message is for the sole use of the intended recipient(s) and may contain confidential and/or privileged information. Any review, use, disclosure or distribution by persons or entities other than the intended recipient(s) is prohibited. If you are not the intended recipient, please contact the sender by reply and destroy all copies of the original message. Thank you. To reply to our E-mail Administrator directly, please call (916) 447-5053 and delete this email. 1 June 11, 2020 Heidi Harmon San Luis Obispo City Mayor 990 Palm Street San Luis Obispo, CA 93401 Dear Mayor Harmon: Thank you for the opportunity to provide additional comments relative to Agenda Item 11, Consideration of a Resolution Establishing a Policy for Clean Energy Choice for New Buildings And Implementation Measures Including an Ordinance Approving Local Amendments to the Energy Code and an Ordinance Establishing Regulatory Flexibility for a Limited-Term to Support All-Electric New Buildings. I am submitting these comments on behalf of the California Pool & Spa Association (CPSA). CPSA is a statewide trade association that represents all segments of the swimming pool and hot tub industry in California which includes swimming pool builders and service personnel in the San Luis Obispo area. CPSA’s membership includes manufacturers of equipment to operate swimming pools, hot tubs, ancillary equipment, testing and safety products; manufacturers of outdoor kitchens and recreation areas; swimming pool and spa builders and subcontractors; and the swimming pool maintenance and service industry. CPSA supports a balanced energy portfolio for California which includes continued access to clean natural gas for both residential and commerci al consumers, especially as it applies to appliances associated with the swimming pool and spa business where practical alternatives to heat water and provide fuel for associated appliances are not practically available in the marketplace today. Eliminating the use of natural gas in new buildings, providing incentives for home builders to construct new housing tracts or commercial buildings without natural gas lines or hookups, or otherwise phasing out the use of natural gas, will undermine the swimming po ol and hot tub business in California and the San Luis Obispo regional area. The result will be a significant economic blow to your local small businesses who make their living in the swimming pool and spa business; the elimination of choice for homeowners , restaurants, hotels, and schools; and the imposition of a regressive energy tax on the residents of San Luis Obispo due to the much higher cost and inefficiency of electric appliances versus appliances using clean natural gas. The “California Dream,” so to speak, is still a home in the suburbs with a big backyard with a swimming pool. This fact is supported by the last five years of record -breaking pool construction since the nation emerged from the 2009 economic meltdown . This trend is destined to continue in numerous areas of the state for 50% of new home buyers are millennials, many of which desire a home with a backyard that contains a swimming pool, hot tub, or exercise pool. This is especially true given the experiences with the onset of COVID-19 for families are staying at home more than ever. They want and need a staycation environment where they can relax and spend time with family members and/or have a place to exercise. In the swimming pool and spa industry, pool heaters, fire pits, fireplac es, decorative fire features, pizza ovens, barbeques, outdoor ranges, and outdoor space heating all operate on natural gas. Together these elements produce spaces in backyards that provide families a place for recreation, exercise, entertainment, and relaxation. The pool and spa industry do es utilize solar heating and electric heating where possible, especially for hot tubs, but there are no current alternatives to heating swimming pools especially in numerous commercial settings, coastal and mountain residential areas of the state, or at night for homeowners. The same is true for outdoor kitchens and recreational areas relative to fire pits, fireplaces, outdoor space heating, and outdoor cooking equipment. It is hard to believe, in the name of reducing greenhouse gases, public policy leaders are intent on taking barbeques, fire pits, decorative fireplaces , and spas away from consumers. Moreover, these proposed bans on natural gas would effectively shut down every high school, college, and resort swimming pools as there is currently no other alternative but gas to heat these commercial size swimming pools that is affordable. In addition to reducing greenhouse gas emissions, it would seem that one of the major goals in this proceeding is to improve energy and housing affordability. We do not believe the elimination of natural gas in California will accomplish either. Energy costs in California are extremely high as compared to the other Western States. The cost of electricity from both traditional and renewable sources is significantly higher than natural gas and not as efficient. Adding to the electrical grid by manufacturing, transporting, installing , and building the facilities for more renewable electricity creates large amounts of greenhouse gases in and of itself. Moreover, as to remodeled homes, the cost of converting these homes to electricity will add significant costs for consumers. Many homes will require an electrical panel upgrade and new wiring, adding close to $10,000 to the cost of a remodel. Electrical costs for consumers are bound to increase due to the fact that many electrical appliances are simply less efficient as natural gas, and electric utilities will be increasing monthly bills due to the billions of dollars the California State Legislature and Public Utilities Commission are requiring them to invest in new wildfire protections and costs associated with upgrading the electrical grid in California. Wildfire costs alone will add $60 to $90 annually to utility electric bill according to recen t testimony provided to the California Energy Commission. The swimming pool and hot tub industry is an exceptional contributor to the California economy. In 2014, PK Data, Inc. opined that the swimming pool and spa industry contributed roughly $5 billion annually to the California economy. This number did not include costs associated with the pool remodeling industry or the hot tub industry. In fact, California is the largest market in the world for swimming pools and hot tubs. Moreover, the industry provides good-paying jobs in communities throughout California, supports numerous individuals and firms that are in the construction subcontracting business, and employs tens of thousands of people in the pool and hot tub maintenance and service business, estim ated at approximately 60,000 individuals statewide. Swimming pool contractors purchase their construction materials, i.e., steel, cement, tile, sand, lumber, electrical, plumbing, and drainage materials locally, thus supporting other local businesses. The economic effect of this industry is multiplied by the demand for pool/hot tub chemicals, toys, backyard furniture, barbeques, outdoor kitchens, fire pits, fireplaces, and lighting desired by both commercial and residential owners of swimming pools and hot tubs. Swimming pools and hot tubs use only an estimated 4% of the natural gas demand in California, whereas the problem the decarbonization is trying to address stems primarily from how residential and commercial buildings are heated. The swimming pool, spa, and backyard appliance industry should not be the target of these efforts and should be exempted from efforts to reduce the carbon footprint from the way we heat residential buildings and indoor water systems. However, without natural gas hookups in new residential and commercial construction, citizens of this state who reside in these areas will be deprived of all the benefits associated with access to swimming pools and hot tubs. CPSA would urge the City Council to focus the ir decarbonization efforts on the real problem that has been identified and forestall any efforts to eliminate consumer choice by banning clean natural gas in California. Sincerely, John A. Norwood CPSA Director of Government Relations