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HomeMy WebLinkAboutAdministrative Order No. 01 (2023 Series) Temporary suspension of enforcement of Chaper 8.11 (All-Electric New Buildings) ADMINISTRATIVE ORDER NO. 01 (2023 SERIES) AN ADMINSTRATIVE ORDER OF THE COMMUNITY DEVLEOPMENT DIRECTOR TEMPORARILY SUSPENDING ENFORCEMENT OF CITY OF SAN LUIS OBISPO MUNICIPAL CODE CHAPTER 8.11 WHEREAS, on July 19, 2022, the San Luis Obispo City Council adopted Ordinance 1717 (2022 Series) now codified as City of San Luis Obispo Municipal Code Chapter 8.11 (All-Electric New Buildings); and WHEREAS, on April 17, 2023 a three-judge panel of the Ninth Circuit Court of Appeals issued a decision holding that the City of Berkeley’s ordinance that prohibits natural gas piping in new buildings is preempted and prohibited by the federal Energy Policy and Conservation Act (California Restaurant Association v. City of Berkeley (9th Cir. 2023) 65 F.4th 1045)(the “Ruling”)); and WHEREAS, the City of San Luis Obispo’s All-Electric New Buildings ordinance is substantially similar to the invalidated Berkeley ordinance, in that it is a non-Building Code ban on natural gas infrastructure, with limited exemptions, including for newly constructed commercial kitchens and other specified facilities, as well as a general public interest exemption; and WHEREAS, the City of Berkeley timely filed a petition for rehearing of the Ruling by a panel of eleven Ninth Circuit judges on May 31, 2023; WHEREAS, it is the City of San Luis Obispo’s position that, while repealing Chapter 8.11 outright would be premature prior to final resolution of the Ruling, temporarily staying enforcement of Chapter 8.11 is the appropriate action pending final resolution; and WHEREAS, on April 18, 2023, the City Council authorized the City Manager and the Community Development Director to suspend enforcement of Chapter 8.11, consistent with, and only as required by, the Ninth Circuit Court of Appeal’s Ruling in California Restaurant Association v. City of Berkeley and any subsequent judicial proceeding and/or order of the Court related to the timing and application of the Ruling (Resolution No. 11414 (2023 Series)) and has been operating in accordance with City Council’s action since that time. NOW, THEREFORE, BE IT ORDERED by the Community Development Director of the City of San Luis Obispo that: SECTION 1. Enforcement of San Luis Obispo Municipal Code Chapter 8.11 (All- Electric New Buildings) shall remain temporarily paused pending final resolution of the California Restaurant Association v. City of Berkeley Ruling. DocuSign Envelope ID: 5DCEC053-92DE-4CE8-A00F-8E04979EEA6E Administrative Order of the Community Development Director No. 1 (2023 Series) Page 2 SECTION 2. Effective Immediately Upon Notice of this Order and Until Rescinded: A. Applications for newly constructed buildings, as defined in Section 8.11.030 of the San Luis Obispo Municipal Code, that include use of natural gas infrastructure, as defined, shall not be denied solely on that basis. B. Given the known potential for this Order to be lifted, and enforcement of Chapter 8.11 to resume if the Ruling is vacated, applicants for building permits subject to Section 2, Subdivision A of this Order will be required to execute an agreement in the form attached hereto as Exhibit A upon submission of the building permit application, acknowledging that the City may, as allowed under current or subsequently decided law, at any time prior to the time at which an applicant has both been issued a building permit and performed substantial work and incurred substantial liabilities in good faith reliance on the issued permit, or at such other time prior to development rights lawfully vesting, require applicant to modify their building plans or construction to bring development into compliance with Chapter 8.11. SECTION 3: Nothing in this Order modifies the City’s otherwise applicable rights and obligations regarding the issuance of building permits, including the allowable time for the City to complete its review of submitted applications. SECTION 4: Nothing in this Order modifies or limits the City’s right to negotiate and execute Development Agreements pursuant to San Luis Obispo Municipal Code Chapter 17.128 that require all-electric buildings. SECTION 5. Nothing in this Order modifies the City Council’s policies preferring that all new buildings within the City should be all-electric and that there shall be no net new building emissions from onsite energy use by 2020 (Resolution No. 11133 (2020 Series); Resolution No. 11159 (2020 Series)). The City remains committed to implementation of the Climate Action Plan for Community Recovery and the associated goal of communitywide carbon neutrality by 2035 consistent with the limitations, if any, imposed by the final resolution of California Restaurant Association v. City of Berkeley. SECTION 6: This Order is automatically rescinded upon any judicial decision which overturns or otherwise vacates the Ruling. DocuSign Envelope ID: 5DCEC053-92DE-4CE8-A00F-8E04979EEA6E Administrative Order of the Community Development Director No. 1 (2023 Series) Page 3 SECTION 7. A copy of this Order shall be made publicly available for review and posted on the City’s website and shall also be provided to affected development applicants in the City at the time of application, or as otherwise necessary to provide direct notice to applicants regarding the impacts of such actions on the processing of their applications. The foregoing Administrative Order of the Community Development Director No. 1 (2023 Series) was approved this _____ day of June 2023. ____________________________________ Derek Johnson, City Manager ____________________________________ Michael Codron, Community Development Director 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 DocuSign Envelope ID: 5DCEC053-92DE-4CE8-A00F-8E04979EEA6E for 28th 6/28/2023 | 9:16 AM PDT Building & Safety Division Clean Energy Program for New Buildings Community Development Temporary Suspension Acknowledgement Form 919 Palm Street, San Luis Obispo, CA 93401-3218. T: 805.781.7180 F: 805.781.7182 Page 1 of 2 Exhibit A ALL-ELECTRIC NEW BUILDINGS TEMPORARY SUSPENSION ACKNOWLEDGEMENT FORM EFFECTIVE DATE: June [X], 2023 APPLICABLE PROJECTS: All Newly Constructed Buildings (SLMC § 8.11.030(I)) APPLICABLE CODES: 2022 CEnC, CEC, CBC, and SLOMC Chapter 8.11 All newly constructed buildings, as defined in San Luis Obispo Municipal Code Section 8.11.030, including residential and nonresidential buildings, submitting for building permit on or after June [X], 2023, shall carefully read the following information and acknowledge your understanding by signing this form. On July 19, 2022, City Council adopted Ordinance No. 1717 (2022 Series) updating the Clean Energy Program for New Buildings to protect public health and safety by requiring all new buildings to be all -electric, banning gas infrastructure with limited exceptions, in Title 8 (Health and Safety) of the Municipal Code. The ordinance went into effect on January 1, 2023. On June [X], 2023, pursuant to Resolution No. 11414 (2023 Series), the Community Development Director Issued Administrative Order No. 01 (2023 Series) (the “Order”) temporarily suspending enforcement of Chapter 8.11 (All-Electric New Buildings) pending final resolution of California Restaurant Association v. City of Berkeley (9th Cir. (2023) 65 F.4th 1045) (the “Ruling”), which held that a similar ordinance adopted by Berkeley was pre-empted by federal law and, therefore, could not be enforced. The suspension of enforcement of Chapter 8.11 allow s permit applications for newly constructed mixed-fuel buildings to start the building permit review process. However, should the Ruling be vacated, the City will immediately reinstate enforcement of Chapter 8.11. Consistent with applicable law, building permits will be processed based on ordinances, standards, and regulations in place at the time of building permit issuance and the permit holder’s demonstration that it has performed substantial work and incurred substantial liabilities in good faith reliance on such permit, or at such other time development rights may vest according to law. Absent such showing of good faith reliance on a building permit issued during the suspension of enforcement of Chapter 8.11, the City may require applicant to modify their building plans or construction to bring development into compliance with Chapter 8.11, should enforcement resume. By signing this form, you acknowledge that you have read, understood, and agree to the following: a. The City of San Luis Obispo has temporarily paused enforcement of San Luis Obispo Municipal Code Chapter 8.11 via Administrative Order No. 01 (2023 Series) and will not deny a building permit application or otherwise require compliance with Chapter 8.11 as allowed under applicable law until such time the Order is rescinded and enforcement resumes. b. Any actions taken, or decisions made during this temporary enforcement pause are undertaken at your own risk, and the City disclaims any liability for any future enforcement of Chapter 8.11 as allowed by law and any resulting consequences, including but not limited to costs associated with potential re - design or any other related expenses. DocuSign Envelope ID: 5DCEC053-92DE-4CE8-A00F-8E04979EEA6E Building & Safety Division Clean Energy Program for New Buildings Community Development Temporary Suspension Acknowledgement Form 919 Palm Street, San Luis Obispo, CA 93401-3218. T: 805.781.7180 F: 805.781.7182 2 Failure or refusal of applicant to sign this Acknowledgement in no way modifies or limits the City’s rights, consistent with applicable law, set forth herein. Acknowledgement: __________________ Applicant __________________ Owner __________________ Signature __________________ Signature __________________ Phone __________________ Phone DocuSign Envelope ID: 5DCEC053-92DE-4CE8-A00F-8E04979EEA6E