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SR-400-005-05-01 Council Meeting: September 11, 2001 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Introduction and First Reading of Ordinance Amending Chapter 8.108 of the Santa Monica Municipal Code Relating to Building Energy Performance INTRODUCTION This report recommends that City Council introduce for first reading an amended Green Building Ordinance that will apply to building energy performance in new and renovated commercial and multi-family residential construction in the City. BACKGROUND On December 15, 2000, City Council approved a Green Building Ordinance that requires building permit applicants to significantly reduce non-renewable energy consumption below 1998 State Title 24 energy efficiency standards. The ordinance set the following performance standards for the indicated building types: ? 25 percent below 1998 Title 24 standards for hotels and motels, office buildings, municipal buildings, and light industrial buildings; ? 20 percent below 1998 Title 24 standards for multi-family residential and retail buildings. The energy performance standards apply to new construction of commercial and 1 multi-family residential buildings and for existing commercial and multi-family buildings for which repair, alternation or rehabilitation costs exceed 50 percent of their replacement cost. Several months after adoption of the City’s Green Building Ordinance, the State Legislature enacted AB 970 in response to the looming energy crisis. AB 970 required the California Energy Commission to strengthen Title 24 standards within 90 days. The Commission responded with a set of significantly strengthened energy performance standards for new commercial and residential construction that will be phased in over the next year. DISCUSSION City staff asked Constructive Technologies Group (CTG), the energy consulting firm that participated in the development of the City’s energy performance standards, to reevaluate the computer energy models of the prototypical Santa Monica buildings used to establish the City’s building energy performance standards. CTG compared the adopted energy performance targets using 1998 Title 24 standards to the strengthened 2001 Title 24 standards to determine if the City’s standards were achievable and cost-effective. Cost-effective has been defined as those practices that do not result in average total cumulative cost impact on new development of more than 3 percent of total project construction costs or more than a five-year simple interest payback based on projected energy and other operating cost savings for the building. 2 CTG evaluated the impact of the revised 2001 Title 24 standards on the City’s building energy performance standards and recommended that the City amend its building energy performance standards as follows. Comparison of Proposed Energy Performance Standards (% Below Standards) Occupancy Type Performance Standard Performance Standard Based on 1998 Title-24 Based on 2001 Title-24 Multi-family Residential 20% 10% (3 or less habitable stories) Hotels and Motels 25% 15% Commercial and 25% 15% Institutional Offices Light Industrial 25% 15% Retail 20% 10% Attachment 1 summarizes the results of CTG’s analysis. California Energy Commission approval is required before any proposed changes to Title 24 can be implemented. The City’s proposed energy performance standards are currently scheduled on the Commission’s September 19th Business Meeting agenda. Staff has had preliminary discussions with the California Energy Commission that lead us to believe there are no issues preventing the approval of the City’s proposed standards and that, therefore, Council adoption is merely a formality. Due to the urgency of the need for energy efficiency within the community, it would not be prudent to delay Council action in anticipation of the Commission’s decision. Upon adoption of the amended ordinance, promotional and outreach materials will be updated to reflect the revised standards. 3 BUDGET/FISCAL IMPACT Adoption of the amended Green Building Ordinance has no budget or financial impact. RECOMMENDATION Staff recommends that City Council introduce for first reading an amended Green Building Ordinance. Prepared by: Craig Perkins, Director of Environmental and Public Works Management Department Suzanne Frick, Director of Planning and Community Development Barry Rosenbaum, Senior Land Use Attorney Tim McCormick, Building Officer Susan Munves, Energy and Green Building Programs Coordinator Attachment1: Evaluation of Green Building Ordinance for 2001 Title 24 Updates Attachment 2: Proposed Amended Green Building Ordinance Attachment 3: Resolution 4 City of Santa Monica - Evaluation of Energy Efficiency Ordinances for 2001 Title-24 Updates Projected Annual Projected Annual Energy Energy Cost Incremental Energy Energy Cost Incremental Recommended Savings Savings over Cost/sf over Payback Savings Savings over Cost/sf over Payback Energy Performance EnergyPro over 1998 1998 Title-24 1998 T-24 over 1998 over 2001 2001 Title-24 2001 T-24 over 2001 Target Beyond 2001 File Name Title-24 ($/sf) ($/sf) T-24 (Yrs) Title-24 ($/sf) ($/sf) T-24 (Yrs) Title-24 Of.bld Office - Sample 1 42% $ 1.64 $ 0.28 0.17 26% $ 0.79 $0.00 - Office - s2.bld Office - Sample 2 28% $ 0.82 $ 1.47 1.79 18% $ 0.33 $ 0.56 1.73 20% Large Office - Sample 3.bld Office - Sample 3 31% $ 0.99 $ 1.89 1.90 23% $ 0.78 $ 1.39 1.79 Hotel.bld Hotel 38% $ 1.37 $ 1.11 0.81 27% $ 0.81 $ 0.44 0.53 15% LI-n.bld Industrial - Sample 1 44% $ 1.80 $ 2.91 1.62 31% $ 1.08 $ 1.96 1.82 15% Industrial Building - Sample2.bld Industrial - Sample 2 19% $ 0.72 $ 1.07 1.49 5% $ 0.12 $ 0.28 2.41 Rt.bld Retail - Sample 1 37% $ 1.85 $ 1.70 0.92 33% $ 1.54 $ 1.07 0.69 15% Retail - Sample 2.bld Retail - Sample 2 26% $ 0.71 $ 3.02 4.22 19% $ 0.44 $ 1.75 3.97 Low Rise Residential.bld Lowrise Res - Sample 1 53% $ 0.40 $ 1.86 4.66 55% $ 0.42 $ 1.64 3.89 15% LowRise Res - Sample-2.bld Lowrise Res - Sample 2 30% $ 0.16 $ 0.94 5.76 33% $ 0.18 $ 0.71 3.90 High Rise Residential.bld Highrise Res - Sample 1 23% $ 0.23 $ 1.47 6.53 12% $ 0.09 $ 0.49 5.62 10% 1 Highrise Res - Sample-2.bld Highrise Res - Sample 2 18% $ 0.14 $ 1.45 10.29 15% $ 0.11 $ 0.82 7.21 Samples 1, 2, and 3 represent prototypical buildings used to calculate building energy performance. Residential Energy Rates $0.14 per kWh $0.75 per therm Commercial Energy Rates: $0.28 per kWh $0.75 per therm 2 City Council Meeting: September 11, 2001 Santa Monica, California ORDINANCE NUMBER ______(CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SECTIONS 8.108.030 AND 8.108.040 OF THE SANTA MONICA MUNICIPAL CODE WHICH ADOPTS SANTA MONICA AMENDMENTS TO THE CALIFORNIA BUILDING STANDARDS CODE RELATING TO GREEN BUILDING STANDARDS WHEREAS, on June 8, 1999, the City Council adopted Ordinance Number 1945 (CCS), which adopts the California Building Standards Code, Santa Monica amendments to the California Building Standards Code; and other technical codes; and WHEREAS, Health and Safety Code Sections 18938 and 17958 provides that the California Building Standards Code establishes building standards for all occupancies throughout the State; and WHEREAS, Health and Safety Code Section 18941.5 provides that the City may establish more restrictive building standards if they are reasonably necessary due to local climatic, geological or topographical conditions; and WHEREAS, on December 15, 2000, the City Council adopted Ordinance Number 1995 (CCS) which, inn part, required building permit applicants of new and renovated commercial and multi-family residential construction to significantly reduce non-renewable energy consumption below 1998 State Title 24 energy efficiency standards; and 3 WHEREAS, after the City’s adoption of Ordinance 1995 (CCS), in response to California’s current energy crisis, the State Legislature enacted AB 970, which required the California Energy Commission to strengthen Title 24 standards; and WHEREAS, the Energy Commission subsequently adopted a set of significantly strengthened energy performance standards for new commercial and residential construction; and WHEREAS, in light of these changes in State law, the City has reevaluated the computer energy models of the prototypical Santa Monica buildings used to establish the City’s building energy performance standards to determine the appropriate required reductions in allowable energy budgets established by local law: and WHEREAS, the proposed amendments in this ordinance reflect the results of the City’s reevaluation of the computer energy models and WHEREAS, additional clarifications to Ordinance Number 1995 (CCS) are also appropriate: and WHEREAS, the City Council has considered the 1998 edition of the California Building Standards Code, which incorporates by reference the 1996-1997 editions of the Technical Codes, and all of the referenced standards, tables, matrices and appendices of each of these codes therein; and WHEREAS, based upon the findings contained in the Resolution adopted concurrently with this Ordinance, the City Council has found that certain modifications and additions to the California Building Standards Code are reasonably necessary based upon local climatic, topographical and geological conditions; and 4 WHEREAS, Public Resource Code Section 25402.1(h)(2) says that a local enforcement agency may adopt more restrictive energy standards when they are cost- effective and approved by the Energy Commission; and WHEREAS, the City hired a private consultant to conduct a cost study of the proposed changes and said study demonstrated the cost effectiveness of these changes; and WHEREAS, the State Energy Commission is set to review the proposed standards on September 19, 2001, and staff reasonably expects that the State Energy Commission will approve the recommended changes; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Section 8.108.030 and Section 8.108.040 of the Santa Monica Municipal Code are hereby amended to read as follows: 8.108.030 Compliance Methods. (a) Except as provided in subsections (b) and (c) of this Section, the envelope, space-conditioning, lighting and service water-heating systems of all buildings subject to the provisions of this chapter shall be designed, constructed and installed to use no more source energy from non-renewable sources than the allowable energy budget calculated in accordance with the performance approach set forth in Chapter 8.36 and reduced in accordance with Section 8.108.040. (b) Multi-family residential buildings that have are three or less habitable stories or less in height may use the prescriptive approach set forth in Chapter 8.36 for the 5 envelope, space-conditioning, lighting and service water-heating systems if these buildings also meet the following requirements: (1) all windows and glass patio doors are equipped with double glazed, low emissivity glazing, with center of glass U value not more than 0.32 Btu/(hr.sq.ft. deg. F.), and Solar Heat Gain Coefficient not more than 0.37; (2) fixed lighting fixtures installed within the dwelling units have a combined average efficacy of not less than 40 lumens per watt; (3) water heaters have a minimum energy factor of 0.60; and (4) space cooling appliances (if installed) have a Thermostatic Expansion Valve, or a Seasonal Energy Efficiency Ratio (SEER) of not less than 12. (c) When building designs, materials or devices cannot be adequately modeled by the performance approach, alternate calculation methods may be used when approved by the California Energy Commission pursuant to their administrative regulations for exceptional methods. 8.108.040 Reductions in Allowable Energy Budgets. Allowable energy budgets shall be the allowable energy budget determined in accordance with Chapter 8.36 and reduced by the following factors for the occupancy types shown in Table 8.108-A. Required reduction factors for occupancies not shown in Table 108-A shall be determined by the Building Officer for the most similar energy consuming use. 6 Table 8.108-A Required Reduction Factors for Allowable Energy Budgets Multi-family Residences 20 10% Hotels and Motels 25 15% Commercial and Institutional 25 15% Offices Light Industrial 25 15% Retail 20 15% When determining compliance with the percentage reduction, alternate calculation methods that consider energy savings in addition to those recognized in Chapter 8.36 may be used when approved by the Building Officer. These savings may include, but are not limited to, efficiency of fan systems with motors less than twenty- five horsepower and garage ventilation controls. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto, inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, are hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. 7 SECTION 3. If any Section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every Section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause this ordinance, or a summary thereof to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall be effective immediately. APPROVED AS TO FORM: ______________________________ MARSHA JONES MOUTRIE City Attorney 8