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7.A. - Page 7 of 285 As previously noted, the goal of the Reach Codes is to reduce fossil fuel usage. The proposed Reach Codes in Attachment A and B only apply to newly constructed buildings. Reach Codes will not apply to additions or remodels that may fall under the requirement for fire sprinklers or to tenant improvements in existing buildings. Reach Code Approaches and Exceptions Reach codes are local amendments that exceed the State Energy Code and/or Green Building Standards Code. In order to adopt the local amendments, the additional requirements must be cost effective as it relates to the incremental cost of the additional requirement compared to the energy cost savings over the life of 15 years. PCE recommended a cost-effectiveness study prepared for the Southern California Edison Company for utility users throughout the state. Staff worked with PCE to interpret the results of the study and infer what options may or may not be cost-effective for the building types that are prevalent in Redwood City. Additionally, staff worked with PCE to evaluate options for central water - heating systems in high-rise residential buildings which were not analyzed in the cost-effectiveness study. Staff is only recommending local amendments that were analyzed in the cost-effectiveness study. PCE and their consultants have also provided support to assist other cities in understanding the cost- effectiveness study results when adopting Reach Codes, and they will continue to assist City staff in this analysis. Difference between Mixed -Fuel and All -Electric Approaches There is one Reach Code ordinance approach drafted by PCE intended to allow for mixed -fuel buildings. The Mixed -Fuel ordinance approach provided property owners with two options for constructing buildings with a reduced GHG footprint: Performance and Prescriptive. The Performance option allows an applicant to design a building as long as it is energy efficient based on accepted computer modelling. The Prescriptive option requires one or more specific energy efficient improvements. Additionally, under the Prescriptive option most buildings would be required to be electric capable for major energy uses such as drying, space conditioning (heating and cooling), and cooking. After the October 2811 meeting where City Council asked staff to prepare an All -Electric ordinance, staff examined what other cities prepared and worked with PCE to develop an All -Electric Reach Code. Many communities have adopted All -Electric Reach Codes with certain exceptions included. The All -Electric approach developed by staff is primarily based on the City of Menlo Park and City of Mountain View's all - electric reach codes, in addition to some other cities' exceptions. Below are nine potential exceptions to an all -electric Reach Code option for City Council consideration based on exceptions adopted in other communities: Exception 1— Non -Residential Buildings containing a Health Facility as defined in Chapter 7, Article 2 of the 2019 California Administrative Code may contain a non -electric space -conditioning and water -heating systems. • The largest use of energy for most homes and businesses relates to space conditioning. One of the alternatives to gas -powered space conditioning is the use of electric heat pumps, which typically reduce energy usage since they are more efficient. Heat pumps can be the primary space conditioning system or be complementary to other space Page 7 of 12 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 259