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9.A. - Page 32 of 34 <br />• Staff does not recommend adopting Exception 11 since comparable all -electric home appliances <br />are readily available. Additionally, it is not anticipated that this requirement would place an <br />undue burden on new market -rate residential homeowners. <br />Ongoing Legal Implications <br />Staff is aware of at least three lawsuits that have been filed against two local agencies due to Reach <br />Codes and other similar energy regulations. <br />• The Town of Windsor adopted Reach Codes in October of 2019 that require all newly <br />constructed low-rise residential buildings be all -electric. The lawsuits claim Windsor violated <br />the California Environmental Quality Act by finding the ordinance exempt. The lawsuits further <br />claim Windsor violated the California Energy Code's requirement that locally adopted energy <br />standards be supported by an analysis that the standards will be cost-effective by relying on a <br />statewide cost-effectiveness study instead of a more local study regarding electricity rates in <br />the Bay Area. <br />The City of Berkeley adopted a ban on natural gas infrastructure in certain newly constructed <br />buildings in July 2019. Berkeley did so under its constitutional police powers, rather than as <br />Reach Codes amendments to the California Energy Code. The California Restaurant Association <br />has filed a lawsuit in U.S. District Court, Northern District, alleging the ban violates state and <br />federal law because the ordinance attempts to regulate energy efficiency and building <br />standards that are already regulated by the state and federal governments. The lawsuit also <br />alleges that Berkeley could not use its police power to regulate energy standards. Berkeley also <br />adopted Reach Codes in December of 2019, but they are mixed -fuel Reach Codes and are not <br />being challenged by the lawsuit. <br />These cases are in their early stages, and there has been no substantial progress on them since staff last <br />presented the Reach Codes to Council for consideration. Staff will continue to monitor these cases as they <br />progress. <br />Next Steps <br />Should Reach Codes be adopted pursuant to a second reading of the ordinance, staff will submit the <br />approved ordinance to the California Energy Commission (CEC) for approval. The CEC requires a period up <br />to 60 days for public comment prior to issuing approval of the City's Reach Code. After the CEC's approval, <br />staff will file the Reach Codes with the Building Standards Commission. <br />FISCAL IMPACT <br />Staff does not anticipate a significant fiscal impact to the City associated with the adoption of the Reach <br />Codes. Reach Codes will be administered by the Building Division and will require additional staff training <br />and development of communication materials, both of which can likely be accommodated within the <br />Division's existing budget. All staff will need additional training to understand how the new requirements <br />apply to building permit plan submittal, plan review and inspections. The Reach Codes as proposed will <br />not add any additional staffing requirement. The recommended exceptions are intended to provide both <br />Page 12 of 14 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />134 <br />