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Staff Report #: 19 -187 -CC Background California state building code and local Reach Code opportunity Each local government is required by law to adopt new changes to the California Building Standards Code every three years (known as code cycles) proposed by the State. The next code cycle will take effect January 1, 2020. This creates an opportunity to simultaneously adopt optional local building code amendments (known as Reach Codes) that exceed state code standards. Historically, cities/counties sometimes adopt amendments to the Energy (Title 24, Part 6) and California Green Building Standards — CALGreen (Title 24, Part 11) codes to meet local environmental goals or aspirations. Menlo Park's environmental goal is to meet its greenhouse gas reduction goal of 27 percent below 2005 levels by 2020 as outlined in the City's climate action plan (Attachment B.) New buildings that have energy delivered from burning fossil fuels contribute to climate change by emitting greenhouse gases (GHG). In 2013, energy usage from buildings accounted for 55 percent (196,000 tons) of the total community GHG emissions in Menlo Park. More than 80 percent of a building's energy use relates to heating/cooling space and heating water. Natural gas is fossil fuel that is typically used for heating space and water for building occupants. As increased development occurs in the community, it is important to consider feasible and reasonable policies and regulations that will not increase the community's natural gas usage to achieve or exceed the City's GHG emissions reduction goal. Menlo Park is in a unique position due to its large renewable energy portfolio. Residents and businesses in Menlo Park receive energy from Peninsula Clean Energy (PCE,) which provides 50 percent renewable energy and 90 percent greenhouse gas (carbon) free electricity at a cost slightly less than PG&E. This creates a significant Reach Code opportunity to reduce future GHG in new buildings by discouraging or eliminating the use of natural gas. This can be accomplished by incentivizing and/or requiring new buildings to use more electric appliances to utilize the clean renewable electricity available rather than natural gas. All -electric buildings are defined as having electric appliances for space heating, water heating, clothes - drying, fireplaces and cooking appliances. Based on past building permit trends and the number of new developments in the planning phase, Menlo Park may experience over the upcoming code cycle the replacement and rebuild of 100 new homes and the addition of 21 new buildings that include high-rise residential, retail, office and hotels (if approved.) If these buildings still use natural gas for heating, 212,876 tons of GHG would be emitted over the expected life of the buildings (30 years for residential and 50 years for commercial.) This adds about 5,000 to 6,000 tons each year to the community GHG emissions (equivalent to the weight of 130 humpback whales.) In addition, the majority of development would occur near the bay front, which is vulnerable to sea level rise resulting from climate change. This provides further motivation to avoid additional GHG emissions. PCE has a goal to be 100 percent greenhouse gas free by 2021, which would mean all new all -electric buildings in Menlo Park would be GHG free by 2021. This maximizes the use of clean and renewable energy currently available and ensures that the climate action plan goals are met. It is also important to note that as the State and region quickly move toward renewable energy, future regulation will likely require electrification of buildings, particularly through retrofit requirements. Addressing electrification now for new buildings avoids hardships and costs for building owners in the future. The state is already requiring that power providers achieve 100 percent greenhouse gas (carbon) free electricity by City of Menlo Park 701 Laurel St., Menlo Park. CA 94025 tel 650-330-6600 w .menlopark.org