Zero-Emission Buildings Reach Code Task Force

1. Zero-Emission Buildings Reach Code Task Force Kick-off Webinar, January 31, 2019Amy Rider (BDC), Rachel Golden (Sierra Club), Pierre Delforge (NRDC)

2. Zero-Emission Buildings Reach Code Task Force A project of the Building Decarbonization Coalition in partnership with NRDC and Sierra Club Mission: Develop and share best practices, tools and technical resources, to support local governments through the adoption and implementation of a Zero-Emissions reach building energy code Roles: Contact: Amy Rider (arider@archamy.com)

3. CA has ambitious climate goals, but no policy pathway to zero-emissions buildings yet 3

4. Gas combustion in buildings > all in-state power plants • Gas combustion in buildings (12%) > all in-state power plants (10%) • Not including building emissions from electricity and fugitive methane Source: www.arb.ca.gov/cc/inventory/data/data.htm, 2018

5. Electricity is getting cleaner, moving toward 100% carbon-free by 2045 Source: CA Air Resources Board, Emission Inventory 2018. https://www.arb.ca.gov/cc/inventory/pubs/reports/2000_2016/ghg_inventory_trends_00-16.pdf

6. Building Energy Code (Title 24, Part 6) moving in right direction, but 2019 update not yet Zero-Emissions • “2019” update adopted last May • Goes into effect Jan. 1, 2020 • Limitations: • No credit for Zero-Emissions (residential) • Still favors gas (multi-family > 3 stories, and commercial)

7. High-efficiency electric alternatives to gas use in residential buildings Heat-pump clothes dryer Electric fireplaces Induction or ceramic cooktop Heat pump space heating Heat-pump water heater *CEC, 6/14/2018 IEPR workshop

8. Electric Heat Offers Pathway To Zero Emissions Elec-tricity Elec-tricity Zero emissions! Elec-tricity Elec-tricity NRDC analysis, climate zone 13 (Fresno) with rooftop solar. Including methane leakage

9. How about power plant emissions: Is electric heat really cleaner than gas heat? Total electricity Emissions 2020 2045 1.9 MT CO2e 1.1 MT CO2e 30 MMBTU heat Heat pump 300% eff. 50% eff. ZERO 0.8 MT CO2e Gas furnace 80% eff. 3.6 MT CO2e Total gas emissions Methane leakage (2.3%*) Combustion 1.6 MT CO2e 2.0 MT CO2e NRDC calculations, climate zone 13 Fresno * Alvarez A. et al, Science, 2018

10. Benefits of electrification Electrification benefits: not just emissions! * Depends on electricity tariffs, rooftop solar, and local conditions

11. Zero-Emissions Local Building Ordinance: Proposed Approach • Local ordinance • Supersedes state building energy code (Title 24, Part 6) • New buildings and major renovations • Could also address additions and equipment replacements, but more challenging • Scope • Single-family, multi-family, commercial, or combinations thereof • Zero-Emissions • Incentivizes all-electric, as lowest-emissions option • Can still allow customer choice of gas heating, but with more stringent efficiency requirements

12. Legal requirements for local reach code • Cost-effective • Need cost-effectiveness study that demonstrates that the proposed code pays back for itself over life of building • Non-preempted • Code offers at least one compliance pathway that is cost-effective and uses appliances that do not exceed minimum efficiency levels of federal appliance standards • Buildings use no more energy than state code • Local buildings comply with state code

13. Reach Code Adoption Process & Proposed Timeline Present to Council for Adoption Submit to CEC Draft Code Staff Training 05 March - April On or Before Sept 30 Twice: July - Sept Nov – March 2020 03 2019 Code Takes Effect Takes E ZEB Task Force As early as January 1, 2020 Kick Off February 04 02 Cost Effectiveness Studies 01 February Engage Community Stakeholders Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Q3 Q4 13 Initiate Work to Refine, Local Committee Review Implementation CEC Approvals

14. Who’s My Support Group?

15. Available Tools & Resources 15

16. FAQs • Should ZE reach code encourage or mandate all-electric buildings? • Both options may be available, depending on findings of cost-effectiveness studies • Is ZE Reach Code mostly about new buildings, or can it also cover existing buildings? • Existing can be included, but more challenging to use reach code to move off gas. Need to prove cost-effectiveness • Is draft ordinance language available? • Not yet, it will be developed when the cost-effectiveness studies are completed, and will be shared in March

17. FAQs • How about renewable gas? • Renewable gas is too scarce and too expensive to present viable alternative to electrification at scale. Better prioritize it for industry. • What else can a city do to move to zero-emissions buildings? • Education and outreach • Permit streamlining • Contractor outreach and training • User Utility Tax • CEQA • Zoning • Roadmap for transitioning existing buildings off gas…

18. Local Amendment to Energy Code Frequently Asked Questions Are all-electric buildings viable today? Yes. The equipment is available, most building types, including residential, office, restaurants and many other commercial types, are compatible or benefitted by all-electric, and a growing but small numbers of developers in CA are now selecting all-electric buildings for their inherent advantages. How do construction costs compare? Both residential and municipal/commercial buildings will typically cost less to construct using all-electric technologies. The cost savings come from eliminating the main gas hookup, piping, and exhaust flue(s). In residential where air-conditioning is selected, a single combined heat pump space conditioner costs less than a separate air conditioner and gas furnace. What are the advantages to all-electric buildings? For municipal/commercial buildings, using combined electric systems saves potential internal and rooftop space, allowing for more valuable use of those spaces. Eliminating combustion of natural gas in livable areas improves the indoor air quality and improves overall safety associated with fires and gas leaks. Buildings with electric heating are allowed a larger winter baseline quantity of electricity. Both sectors can benefit financially from expanded demand response and load shifting opportunities. All-electric buildings can more effectively utilize on-site solar generation, required in the 2019 Building Code. How does the life cycle cost compare? When utilizing available smart control technology and favorable time-of-use electric rates, all-electric buildings are cost-competitive with mixed natural gas + electric buildings even with the current low price of natural gas. Combined with solar, electric heating can cut heating bills in half or more. Which project types are more challenging? Hospitals and certain industrial processes currently necessitate natural gas + electricity (aka mixed-fuel) to meet their needs.

19. Would this proposed code amendment ban the use of natural gas? No. This proposed code amendment supports and encourages the design of all-electric buildings, but would not require it. It maintains customer choice, while encouraging the cleaner and healthier option. What are the potential drawbacks of all-electric buildings? Some people still prefer to cook with gas, though electric induction stoves are driving a trend toward electric cooking. When compared to tankless hot water heater options, electric heat pump water heaters take up more space as they include a hot water storage tank. How can the Building code be used to encourage more all-electric buildings? As Palo Alto and the County of Marin implemented their code amendment, they created a simpler compliance pathway for all-electric designs. That simpler pathway in the code combined with the cost savings associated with all-electric buildings makes for an attractive option for developers. This impact will be further enhanced by additional education and incentives. Are there examples of all-electric buildings nearby? Yes. Below are a few examples of existing all-electric buildings throughout Santa Clara county. Each of them has promoted the health, savings, and controllability benefits. While much more common in other areas of the US and internationally, all-electric design is still nascent in CA. Senior Housing Mountain View Office Building Sunnyvale Multi-tenant Morgan Hill Single-Family Los Altos

20. Zero Emission Buildings Task Force Participating Cities and Counties 20

21. Join Us! Proposed Task Force Working Conference Calls: Feb 21: Getting Started and Reach Code Strategy March 8: Code Options and Cost Effectiveness March 21: Approaches from Across the State April 4: Stakeholder Engagement Other Meetings: March 7: BayREN Reach Code Forum (in-person) www.bayrencodes.org/events

22. Welcome to the Zero Emission Buildings Task Force For more information: Amy Rider, Building Decarbonization Coalition arider@archamy.com 707.477.4964 Additional Resources: IOU Codes and Standards: www.localenergycodes.com

23. SLIDES 8 & 9 for Climate zone 3 (Oakland)

24. Electric Heat Offers Pathway To Zero Emissions Elec-tricity Elec-tricity Zero emissions! Elec-tricity Elec-tricity NRDC analysis, climate zone 3 (Oakland) with rooftop solar. Including methane leakage

25. How about power plant emissions: Is electric heat really cleaner than gas heat? Total electricity Emissions 2020 2045 2.0 MT CO2e 1.2 MT CO2e 30 MMBTU heat Heat pump 300% eff. ZERO 0.8 MT CO2e Gas furnace 80% eff. 3.8 MT CO2e Total gas emissions Methane leakage (2.3%*) Combustion 1.7 MT CO2e 2.1 MT CO2e NRDC calculations, climate zone 3 Oakland * Alvarez A. et al, Science, 2018

26. SLIDES 8 & 9 for Climate zone 6 (L.A.)

27. Electric Heat Offers Pathway To Zero Emissions Elec-tricity Elec-tricity Zero emissions! Elec-tricity Elec-tricity NRDC analysis, climate zone 6 (Los Angeles) with rooftop solar. Including methane leakage

28. How about power plant emissions: Is electric heat really cleaner than gas heat? Total electricity Emissions 2020 2045 1.4 MT CO2e 0.8 MT CO2e 30 MMBTU heat Heat pump 300% eff. ZERO 0.6 MT CO2e Gas furnace 80% eff. 2.6 MT CO2e Total gas emissions Methane leakage (2.3%*) Combustion 1.1 MT CO2e 1.4 MT CO2e NRDC calculations, climate zone 6 Los Angeles * Alvarez A. et al, Science, 2018