HomeMy WebLinkAboutItem 4a. Amendments to Title 17 (Zoning Regulations) in support of All-Electric New Buildings (CODE-0299-2022)
PLANNING COMMISSION AGENDA REPORT
SUBJECT: Review of amendments to Title 17 (Zoning Regulations) of the Municipal
Code associated with allowable incentives for development standards with the provision
of new all-electric buildings.
PROJECT ADDRESS: City-wide BY: Chris Read, Sustainability Manager
Phone Number: (805) 781-7151
Email: cread@slocity.org
FILE NUMBER: CODE-0299-2022 FROM: Tyler Corey, Deputy Director
RECOMMENDATION
Adopt the attached Planning Commission resolution (Attachment A) recommending that
the City Council introduce and adopt an Ordinance amending Title 17 (Zoning
Regulations) of the Municipal Code regarding temporary incentives for development
standards with the provision of new all-electric buildings with a sunset date of December
31, 2025 and an amendment to the current definition of “all-electric building”.
1.0 COMMISSION'S PURVIEW
The Planning Commission’s role is to review the proposed Municipal Code amendments
to Title 17 in accordance with Government Code Sections 65854 to 65857 and to make
a recommendation to the City Council regarding the proposed amendments.
2.0 SUMMARY
In June of 2020, City Council adopted the Clean Energy Choice Program for New
Buildings.1 The program encourages all-electric new buildings by placing additional
efficiency and building performance requirements on mixed fuel buildings (those that
include natural gas) in support of City Council’s adopted greenhouse gas emissions
reduction goals.
The existing program is paired with incentives to support all-electric new buildings. In
addition to financial incentives and technical assistance, the City added section 17.70.095
(Incentives Related to New All-Electric Buildings) to Title 17 to provide regulatory flexibility
that is limited in term and scope. The Planning Commission adopted a resolution on
February 26, 2020 supporting this addition.2 This addition to Title 17 is set to expire
December 31, 2022. In the same item, the Planning Commission also added a new
definition for “all-electric new buildings” in Title 17.
1 The Agenda Packet for the June 16, 2020 Council meeting is available at:
http://opengov.slocity.org/WebLink/DocView.aspx?id=122344&dbid=0&repo =CityClerk
2 The Agenda Packet for the February 26, 2020 Planning Commission meeting is available at:
http://opengov.slocity.org/WebLink/DocView.aspx?id=104763&dbid=0&repo=CityClerk
Meeting Date: 6/22/2022
Item Number: Click or tap here to enter text.
Time Estimate: 45 Minutes
Page 9 of 19
Item Click or tap here to enter text.
CODE-0299-2022 – Clean Energy Ordinance Update
Planning Commission Report – June 22, 2022
The Clean Energy Choice Program that launched in 2020 is tied to the California Energy
Code and must be updated when the statewide code is updated every three years. The
2020 Climate Action Plan and 2021-23 Financial Plan anticipated this need and directed
staff to update the Clean Energy Choice Program in 2022. At a study session in February
of 2022, City Council gave staff strategic direction to update the program to require all -
electric new buildings starting January 1, 2023, with reasonable exemptions and an
updated incentive program.
Staff has identified the retention and expansion of regulatory flexibility as a key incentive
to ensure program success. In response to this, staff recommends that the Planning
Commission adopt the resolution provided as Attachment A which would add “parking
standards” as a category with limited scope and term regulatory flexibility and would
extend the entirety of the regulatory flexibility section through December 31, 2025.
Staff is also recommending that the current definition of “All-Electric Building” be amended
to remove exemption language. Currently, the definition includes an exemption for
commercial kitchen equipment, but does not refer to the other exemptions. Removing this
sentence from the definition in Title 17 provides clarity by allowing all the exemptions to
live together in the relevant code section and allows for more flexibility to amend
exemptions over time.
3.0 PREVIOUS REVIEW
The topic of all-electric new buildings has been considered by Planning Commission on
several occasions including:
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 Clean Energy Program for New Buildings 2022 update.
4.0 PROJECT ANALYSIS
The project analysis section of this report provides ordinance update background
information, community outreach information, and the proposed Title 17 amendments.
Ordinance Update Background
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. The approach taken under the Clean Energy Choice
Program for New Buildings is referred to as “electric-preferred,” meaning that the more
stringent regulations for mixed-fuel buildings are intended to encourage all-electric
buildings as the preferred option.
Page 10 of 19
Item Click or tap here to enter text.
CODE-0299-2022 – Clean Energy Ordinance Update
Planning Commission Report – June 22, 2022
The City must update and adopt standards if they are to be enforceable as part of the
2022 statewide code (which will be valid January 1, 2023 through December 31, 2025).
The need to update the Clean Energy Choice Program was known in advance and is
included in the 2021-23 Climate Action Major City Goal and explicitly contemplated in
Climate Action Plan Green Buildings Action 1.1 (Adopt and implement the Clean Energy
Choice Program for New Buildings and review opportunities for improvement in the 2022
code cycle).
As part of the update, staff presented information about current program performance,
statewide trends, and options for the update to City Council at a study session on
February 1, 2022. For numerous reasons (as presented to Planning Commission o n June
8), Council provided strategic direction to staff to update the program to require that new
buildings be all-electric via the municipal code based on health and safety findings.
Council also provided strategic direction to return with reasonable exe mptions and an
updated incentive program. While the core components of the Clean Energy Program for
New Buildings are outside the purview of the Planning Commission, the regulatory
flexibility portion of the incentive program and the definition of an “All -Electric Building”
reside in Title 17 and require Planning Commission review and recommendation prior to
amendment.
Community Outreach
In support of identifying reasonable exemptions and incentives, staff invited all builders
currently working in the City to individual meetings. Staff met directly with nonresidential,
market rate housing, and affordable housing developers about their experience
developing all-electric new buildings in the City of San Luis Obispo. Staff also presented
program information and collected feedback at the Developers’ Roundtable, Chamber of
Commerce Legislative Affairs Committee, Central Coast Green Building Council,
American Institute of Architects- Central Coast Chapter, and with Home Builders
Association of the Central Coast.
Through these meetings, staff heard a concern about an increase in footprint for electrical
infrastructure such as transformers, conduit, and larger appliances (e.g., a heat pump hot
water heater with a storage tank is larger than a tankless gas water h eater). In nearly
every instance, these issues are resolvable through design, but particularly in denser infill
developments, in rare occasions, flexibility related to setback, height, and/or parking could
provide the physical space needed to successfully build a project.
Ordinance Amendments
Title 17 of the Municipal Code comprises the zoning code and includes Site Development
and General Development Standards in Chapter 17.70. Included in sections of this
chapter are statements of purposes for standards, specifics on measurement and
calculation, and processes for exceptions that are not proposed to be modified by this
ordinance. The current flexibility ordinance (17.70.095) includes a provision for minor
allowances to specific site development standards in order to provide flexibility for new
all-electric buildings that may be granted by the Director of Community Development
automatically as long as specific circumstances are met. Additionally, findings required
Page 11 of 19
Item Click or tap here to enter text.
CODE-0299-2022 – Clean Energy Ordinance Update
Planning Commission Report – June 22, 2022
for a Director’s Action pursuant to Section 17.108.040 are also required for the purposes
of this ordinance.
Additionally, staff has identified that the current definition of “All-Electric Building” includes
a sentence exempting commercial kitchens. This definition does not refer to the other
exemptions, nor does it allow for new or different commercial kitchen related exemptions
to be enacted. Removing this sentence from the definition in Title 17 provides clarity by
allowing all the exemptions to live together in the relevant code section and allows for
more flexibility to amend exemptions over time.
In sum, staff recommends three substantive amendments to Title 17:
1. Retain the limited term and scope regulatory flexibility through December 31, 2025
(expiring concurrent with the 2022 California Building Code).
2. Add parking standards as a category eligible for limited term and scope regulatory
flexibility.
3. Remove exemption language from the definition of “All-Electric Building.”
These temporary incentives are intended to help facilitate the initial promotion of the City’s
new all-electric requirement and will expire concurrent with the expiration of the 2022
Building Code (December 31, 2025). It is anticipated that designers and builders may not
require such allowances in perpetuity, as incorporating infrastructure and design
considerations for all-electric buildings become more routine over time. Staff will monitor
incentive use and will return to Planning Commission and City Council ahead of
December 31, 2025 with a recommendation to allow the incentive to expire, to extend the
current incentive, or to extend an amended incentive.
General Plan Consistency
The proposed ordinance is supported by policy and program in Chapter 9 of the City’ s
General Plan Land Use Element:
Policy 9.4: The City shall maintain and implement its Climate Action Plan to reduce
community and municipal GHG emissions consistent with State laws and
objectives.
Program 9.13: The City shall consider the feasibility of providing incentives for new
and renovated projects that incorporate sustainable design features such as
constructing new buildings that are solar ready, or off-setting significant operational
energy use through use of solar water heating, photovoltaic systems, geothermal
or wind energy systems.
5.0 ENVIRONMENTAL REVIEW
The proposed code amendments have been assessed in accordance with the authority
and criteria contained in the California Environmental Quality Act (CEQA), the State
Page 12 of 19
Item Click or tap here to enter text.
CODE-0299-2022 – Clean Energy Ordinance Update
Planning Commission Report – June 22, 2022
CEQA Guidelines, and the environmental regulations of the City. Specifically, the
proposed amendments have been determined to be exempt from further environmental
review pursuant to CEQA Guidelines Section 15061(b)(3) because the ac tivity 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 under 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) provides 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.
6.0 OTHER DEPARTMENT COMMENTS
City Administration and Community Development have worked closely on the Clean
Energy Program for New Buildings. No other department comments are provided.
7.0 ALTERNATIVES
1. The Commission may modify the proposed amendments to Zoning Regulation
Sections 17.70.095 and 17.158.006.A.
2. The Commission may continue action, if additional information is needed. Specific
direction should be given to staff.
8.0 ATTACHMENTS
A. Draft PC Resolution Recommending City Council Adoption of Title 17 Amendments
Page 13 of 19
Page 14 of 19
R ______
RESOLUTION NO. PC-_____- 2022
A RESOLUTION TO THE PLANNING COMMISSION OF THE CITY OF
SAN LUIS OBISPO RECOMMENDING THAT THE CITY COUNCIL
INTRODUCE AND ADOPT AN ORDINANCE AMENDING TITLE 17
(ZONING REGULATIONS) OF THE MUNICIPAL CODE IN SUPPORT OF
THE CLEAN ENERGY PROGRAM FOR NEW BUILDINGS (CODE-0299-
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
Page 15 of 19
R ______
WHEREAS, the direct global warming impact of natural gas, which is primarily
composed of methane, is 86 times higher than carbon dioxide over a twenty-year period;
and
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; and
WHEREAS, the requirements specified in this Ordinance were reviewed via public
comment and through a publicly noticed public hearing process.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City
of San Luis Obispo as follows:
SECTION 1. Findings. Based upon all the evidence, the Planning Commission
recommends that 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
amendments are 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.
Page 16 of 19
R ______
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 amendments are 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 ha s 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 possibil ity that the activity in question
may have a significant effect on the environment. The ordinance additionally is
categorically exempt from environmental review under 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 exhibit s characteristics similar to one or more
specific exemptions; and 3) provides 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 17 of 19
R ______
SECTION 3. Recommendation. The Planning Commission does hereby
recommend the City Council introduce and adopt an Ordinance amending Title 17
(Zoning Regulations) of the Municipal Code supporting the Clean Energy Choice Program
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) as set forth in Attachment
A. Be it further recommended that the Ordinance shall be effective for a limited term
beginning January 1, 2023 and concluding December 31, 2025.
Upon motion of ___________________, seconded by ___________________,
and on the following roll call vote
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of ___________ 202 2.
___________________________
Tyler Corey, Secretary
Planning Commission
Page 18 of 19
R ______
RESOLUTION NO. PC-_____- 2022
ATTACHMENT 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 19 of 19
Clean Energy Program for New Buildings:
Proposed Title 17 Amendments
Public Hearing –June 22, 2022
1
Recommendation
Adopt the attached Planning Commission resolution
(Attachment A)recommending that the City Council introduce
and adopt an Ordinance amending Title 17 (Zoning
Regulations)of the Municipal Code regarding temporary
incentives for development standards with the provision of
new all-electric buildings with a sunset date of December 31,
2025 and an amendment to the current definition of “all-
electric building”
2
Agenda
Ordinance Background
Community Outreach
Current Municipal Code
Proposed Amendments
3
Ordinance Update Background
Require all-electric new
buildings via new Title 8 (Health
and Safety) chapter.
Focus exclusively on new
buildings
Support with:
Resilience considerations
Outreach
Reasonable exemptions
Incentives including
regulatory flexibility
4
Community Outreach
Invited all builders currently
working in the City to individual
meetings.
Met directly with nonresidential,
market rate housing, and
affordable housing developers.
Presented to and collected
feedback from key building
associations.
Collective concern about an
increase in footprint for
electrical infrastructure.
5
Current Municipal Code
17.70.095: Incentives related to all-electric new buildings.
6
Recommended Ordinance Amendments
17.70.095: Incentives related to all-electric new buildings.
1.Retain the limited term and scope regulatory
flexibility through December 31, 2025.
2.Add parking standards as a category eligible for
limited term and scope regulatory flexibility.
7
Current Municipal Code
17.158.006: General Definitions
8
Recommended Ordinance Amendments
17.158.006: General Definitions
3.Remove exemption language from the definition of
“All-Electric Building.”
9
Recommendation
Adopt the attached Planning Commission resolution
(Attachment A)recommending that the City Council introduce
and adopt an Ordinance amending Title 17 (Zoning
Regulations)of the Municipal Code regarding temporary
incentives for development standards with the provision of
new all-electric buildings with a sunset date of December 31,
2025 and an amendment to the current definition of “all-
electric building”
10