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7.A. - Page 11 of 285 method. The Building Official or their designee may consider a variety of limitations, and approval of this exception is at their discretion. • Berkeley and Morgan Hill have this exception. Legal Challenges Staff is aware of at least three lawsuits that have been filed against two local agencies over Reach Codes and other stringent energy regulations. • The Town of Windsor adopted Reach Codes in October of 2019 that require all newly constructed low rise residential buildings be all -electric. The lawsuits claim Windsor violated the California Environmental Quality Act by finding the ordinance exempt. The lawsuits further claim Windsor violated the California Energy Code's requirement that locally adopted energy standards be supported by an analysis that the standards will be cost-effective by relying on a statewide cost-effectiveness study instead of a more local study regarding electricity rates in the Bay Area. • The City of Berkeley adopted a ban on natural gas infrastructure in certain newly constructed buildings in July of 2019. Berkeley did so under its constitutional police powers, rather than as a Reach Code amendment to the California Energy Code. The California Restaurant Association has filed a lawsuit in U.S. District Court, Northern District, alleging the ban violates state and federal law because the ordinance attempts to regulate energy efficiency and building standards that are already regulated by the state and federal governments. The lawsuit also alleges that Berkeley could not use its police power to regulate energy standards. Berkeley also adopted Reach Codes in December of 2019, but they are mixed -fuel Reach Codes and are not being challenged by the lawsuit. These cases are in their early stages. Staff will continue to monitor them as they progress. Next Steps If and when Reach Codes are adopted, staff will submit the ordinance to the CEC and the California Building Standards Commission for approval. The CEC requires a period up to 60 days for public comment prior to issuing approval of the City's Reach Code. After the CEC's approval, staff will submit the proposed Reach Codes to the Building Standards Commission for final approval. The ordinance will be become effective following final approval by the Building Standards Commission. FISCAL IMPACT Staff does not anticipate a significant fiscal impact to the City associated with the adoption of the Reach Code Ordinance. The ordinance will be administered by the Building Division and will require additional staff training and development of communication materials, both of which can be accommodated within the Division's existing budget. All staff will need additional training to understand how the new requirements apply to building permit plan submittal, plan review and inspections. The Reach Codes will Page 11 of 12 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 263