​​​​​GHG-04

Increase energy efficiency and electrification of existing commercial/nonresidential buildings and facilities

Measure

The County will require existing commercial/nonresidential buildings to increase energy efficiency and electrify existing water and space heating equipment that currently use natural gas. The County will develop a program aimed at assisting local utilities with implementing commercial energy efficiency and electrification programs to achieve reductions in energy consumption. The building permit requirements for electrification of water and space heating equipment will be applicable based on the below timelines:

  • building permit applications filed on or after January 1, 2023, or 6 months after the availability of a cost-effectiveness study prepared by the California Statewide Codes and Standards Reach Codes Team (Statewide Reach Codes Team), whichever is later, for buildings that are three stories or less; 

  • building permit applications filed on or after January 1, 2026, or 6 months after the availability of a cost-effectiveness study prepared by the Statewide Reach Codes Team, whichever is later, for buildings that are four stories or more; and

  • limited exemptions for specific uses, available only for building permits filed on or before December 31, 2025, provided that the associated GHG emissions are offset through an accredited local carbon offset program:​  

    • a limited exemption for manufacturing process loads within a manufacturing or industrial facility and 

    • a limited exemption for essential medical facilities, such as hospitals that may require natural gas

​​If the technology to install all-electric water and/or space heating equipment for manufacturing or industrial facilities or essential medical facilities is not feasible and available by July 1, 2025, the Board of Supervisors may consider extending the limited exemption until the technology is feasible and available.


​​​​​Not Started

The efforts for this measure have not ​started. ​

Implementation

Adopt energy efficiency and electrification ordinances no later than December 2022, or 6 months after the availability of a cost-effectiveness study prepared by the Statewide Reach Codes Team, or feasibility analysis, whichever is later, to require California Green Building Standards Code (CALGreen) Tier 1 energy efficiency compliance and electric space and water heating equipment for nonresidential additions or alterations equal to or greater than $200,000 building permit valuation or equal to or greater than 1,000 square feet. 

To support nonresidential electrification, the County shall review its existing permitting processes for nonresidential building owners seeking to replace gas water and space heating equipment with electric equipment, as well as capping gas meters, and modify as needed to reduce complexity, cost, and processing time for any required permits. This may include exploring provisions to focus any required inspections related to electrification solely on those areas affected by the requested permit. 

An outreach program will be developed that provides education strategies that enable commercial energy conservation and gas-to-electric conversions in nonresidential buildings for space and water heating. Develop online videos and educational materials on energy efficiency and building electrification (including trainings, fact sheets, and/or information on available incentives) targeted toward building owners and tenants that are hosted on the County’s website or linked to SMUD and Pacific Gas and Electric Company (PG&E) web interfaces. In addition to education, video tutorials can explain to business owners how to enroll in real-time energy use monitoring tools to track energy use compared to historic levels and within the community through the EnergyStar™ Portfolio Manager, or other tools offered by third-party providers. The educational materials will also be provided as part of routine regulatory processes, such as applying for or renewing licenses or permits and undergoing health and safety inspections, and through the Business Environmental Resource Center. 

In addition, new development projects that have incorporated all feasible on-site GHG mitigation may be permitted to fund energy efficiency and electrification retrofits of existing buildings subject to quantification of the costs per MT CO2e. This quantification shall be submitted by applicants for review and verification by the County or a qualified third party selected by the County.​

Timeframe: Long term

GHG Reduction Potential: 12,465 MT CO2e per year by 2030

Co-benefit

This measure supports adaptation measures Temp-07 and Temp-08.

Sector: Energy - Commercial

Target Indicator: Development of an outreach program and partnership with local utilities on an electrification and energy efficiency retrofit program. Assumed participation of 5 percent for energy efficiency upgrades, 5 percent for energy conservation, and 15 percent for electrification by 2026, and 10 percent for energy efficiency upgrades, 10 percent for energy conservation, and 30 percent for electrification by 2030 for a total reduction of 2,400,000 therms.​

​Status of Implementation

Measures GHG-4 through -7 deal with the electrification of buildings in the community and are categorized by residential vs. non-residential and existing vs. new construction.  

Currently the County is focused on identifying electrification incentives and working with SMUD and the Cities of Sacramento and Elk Grove who are all partners in a Sacramento County Building Electrification Memorandum of Understanding (MOU). The MOU is a no-cost agreement originally developed by SMUD and the City and County of Sacramento to work together and coordinate on building electrification efforts. All other incorporated cities in Sacramento County have been invited to join the MOU with the City of Elk Grove joining the partnership. The above agencies hold a monthly coordination meeting to coordinate, troubleshoot, and strategize about advancing building electrification.  

SMUD currently offers several rebates to support building electrification under their Home Performance Program. The County is exploring grant and other funding opportunities to partner with SMUD and increase the rebate opportunities. 

Due to litigation in the building electrification space, namely the California Restaurant Association v. City of Berkeley case, where the United States Court of Appeals for the Ninth Circuit blocked the City of Berkeley from enacting a natural gas piping ban, the County is not pursuing any electrification ordinances at this time. 

The County acknowledges that reach codes offer a different pathway to electrification than what Berkeley used. However, after analysis of the current situation, staff resources are being focused on completing and defending the Climate Action Plan from potential CEQA challenges from local environmental groups while concurrently participating in the regional efforts described above and focusing on incentive- and education-based efforts to drive a switch to more electric-only buildings.   

Last updated 10/11/12023​