Loading...
HomeMy WebLinkAbout2020-02-10 BOAA Agenda Packet BOARD OF APPEALS AND ADVISORS Meeting Date: 02/10/2020 Subject: ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.26 OF THE CHULA VISTA MUNICIPAL CODE TO ESTABLISH MANDATORY ENERGY UPGRADE REQUIREMENTS FOR ADDITIONS AND REMODELS TO SINGLE FAMILY HOMES Submitted By: Lou El-Khazen, Building Official, and Cory Downs, Conservation Specialist II In September 2017, the City Council adopted the 2017 Climate Action Plan (CAP) to help address the local threat of climate change by reducing greenhouse gas (GHG) emissions and lowering Chula Vista’s vulnerability to expected climate change impacts. The 2017 CAP adopted by City Councilcalled for promoting energy efficiency upgrades. The following proposed increased energy efficiency standards for some pre-2006 residential properties undergoing additions or remodels is intended to support that effort as adopted in the CAP. Based oncost effectiveness studies created by the California Public Utilities Commission and Investor Owned Utilities, City staff are confident that these proposed requirements are cost effective and are anticipated to lower utility bills for applicable Chula Vista residents. In addition, the proposed requirements will exceed existing Title 24 energy requirements and in the year 2030 these requirements are estimated to save approximately641metric tons CO2e emissions and $559,000 in utility costs per year. By 2040, those figures rise to 1,340 metric tons and $1.1 million in bill savings annually in today’s dollars. RECOMMENDATION: Recommend to City Council the adoption of the ordinance. DISCUSSION: Background The 2017 Climate Action Plan (CAP) and related implementation actions were established through an extensive outreach effort to Chula Vista residents and communities. The Climate Change Working Group (CCWG) was chaired by Sustainability Commission members and consisted of 13 other members representing various community sectors. The CCWG held a total of 11meetings, including 10 publically-noticed meetings and one public forum to solicit input and engage the public on the development of the greenhouse gas reduction strategies through a consensus-building process. In November 2014, City Council adopted the 12 GHG reduction strategies that the CCWG presented, which included requiring energy savings retrofits in existing buildings. These CCWG recommendations were subsequently incorporated into the CAP adopted by the City Council in September 2017. Working with community stakeholders and consultants, City staff have created the Existing Home Energy Sustainability Ordinance. This ordinance builds off previous energy efficiency efforts the City Council has approved such as the Commercial Board of Appeals and Advisors Meeting Date 02/10/2020 Outdoor LED Ordinance, “reach codes” that required new homes be built above Title 24 code requirements and PACE financing to allow residents to finance energy saving projects. The City of Carlsbad has also adopted a similar ordinance called the Residential Energy Conservation Ordinance which went into effect in 2019. After Council approval the California Energy Commission must confirm that the proposed ordinance meets certain requirements including that the City has made a cost effectiveness finding. Then every three years asupdated state building codes are adopted, the City will need to seek new approval from the CEC by affirming via letter that the cost-effectiveness of these requirements is unaffected by the new standards. Task / MilestoneDate Present to City Council (first reading)2/25/20 City Council (second reading)3/3/20 Submit California Energy 2/26/20 Commission (CEC) Application Receive CEC Response (expected)5/20/20 File with California Building 5/21/20 Standards Commission (expected) Effective Date(30 days following 6/21/20 CEC approval) Existing Home Energy Sustainability Ordinance The Existing Home Energy Sustainability Ordinance requires that homes built before 2006 make some energy efficiency upgrades, see Table 1, when theyare also making an addition or remodel of their home. Based on the age of the home and the Climate Zone where the home is located, different energy efficiency upgrades are required. The reason for the different requirements is because typically older ormore inland homes consume more energy and have more opportunities to save energy. These requirements are based on the Statewide Cost Effectiveness Study, attached with a Chula Vista Summary. All of the proposed requirements were found to be cost- effectivein the energy simulations performed by these studies. Over the first 10 years the implementation cost will be $4.9 million with permitincreases and the BPI requirement but reduced energy bills paid back the implementation costs within 5.2 to 8.5 years. For more an overview of the cost-effectivenessof proposed requirements see the attached “Summary Cost- Effectiveness Results”. The climate zones are created by the California Energy Commission to guide building requirements and align with zip codes. Within the City, 91914 lies within climate zone 10 and the rest of Chula Vista is located in climate zone 7. Once adopted, this ordinance is expected to impact 3,872 units, avert 3,218 MTCO2 and save $2.9 million in over the first 10 yearswith the Page | 2 Board of Appeals and Advisors Meeting Date 02/10/2020 average home saving nearly $200 per year in utility bills. The savings will help the City meet the energy and carbon reduction goals included in Objective 3.3 of the 2017 Climate Action Plan. Table 2 Required Energy Efficiency Upgrades Table threebelow includes more information about each of the energy efficiency measures listed above. Table 3Required MeasuresInstallation Details Page | 3 Board of Appeals and Advisors Meeting Date 02/10/2020 Staff anticipate that some homeowners and contractors may find other ways to reach the same energy reduction levels in their projects. The ordinance accommodates this option, providing a “performance path” that would allow owners to concurrently complete an alternative set of energy measures that performs equal to or better than the applicable prescribed measures. Exemptions These energy efficiency requirements are an effort to bring existing buildings closer to the energy efficiency of current energy code for new homes. The required updates are cost effective energy efficiency measures that have been widely available for years and staff assumes that some residents may have already voluntarily adopted them. The following exemptions are designed for homes that have already undertaken voluntary energy updates. Homes where similar measures have already been completed Homes that have achieved a Department of Energy (DOE) Home Energy Score (HES) of at least 8 out of 10 Homes with on-site photovoltaics in place offsetting at least 95% of the annual electricity and gas-equivalent usage Additionally, a property would be exempt for the reasons stated below: Project Value Cutoff -If the cost of completing energy efficiency measures required exceeds 20% of the overall project cost absent those measures, permit applicants can propose a more limited set from among the required measures which does not exceed 20%. Technically/Financial infeasibility –If the prescribedmeasures would be technically infeasible or not be cost-effective due to unique characteristics of home or other special circumstances. HOA Restrictions -A measure is beyond the authority of the homeowner due to Home Owners Association (HOA) covenant Exempt Project Types -An Addition or Remodel consists solely of medically necessary improvements, or principally of, solar PV, solar water heating, electrical upgrades for PV or electric vehicle (EV) charging, or energy storage. Required Next Steps In orderfor the City to adopt and enforce increased building energy standards, the City must Page | 4 Board of Appeals and Advisors Meeting Date 02/10/2020 submit an application to the California Energy Commission (CEC) and obtain approval before the increased standards can take effect. The application submittal must include: 1)The proposed standards as adopted by Council, 2)The City’s determination that the proposed standards will save energy and are cost- effective, and 3)A study with supporting analysis for the City’s energy savings and cost effectiveness findings. The ordinance includes the necessary energy savings and cost effectiveness findings. By reviewing the attached cost effectiveness study and adopting this proposed ordinance, Council will be making the cost effectiveness and energy savings determinations mentioned above. After City Council votes on the proposed ordinance after first reading, staff will submit the application to the CEC for their review and approval, a process that can take up to three months. After CEC approval, staff will file the ordinance with the California Building Standards Commission and the ordinance will go into effect 30 days after the CEC approval. After City Council Approval, staff will begin preparing for the ordinance to take effect by working with various internal departments and stakeholders to educate impacted parties about the requirements and how they can be met. Attachments: 1)Existing Home Energy Sustainability Ordinance 2)Existing Home Energy Sustainability Ordinance Summary 3)Existing Home Energy Sustainability Ordinance Overview 4)Summary Cost-Effectiveness Results Page | 5 Purpose and Intent Applicability Definitions Requirements. c. (2) a. Exemptions. Measure Already Completed Technical Infeasibility (3)High Performing Home. (4)Fully Solar Powered. (5)Exempt Additions. (6)Homeowner’s Association. . (7)Medical Necessity. . Implementation Authority.