10 Staff Report.Reach Code
PREPARED BY: Robert Gray
Building Official
Reviewed by: Interim Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 10/15/2024 ITEM NO: 10
DATE: October 10, 2024
TO: Mayor and Town Council
FROM: Katy Nomura, Interim Town Manager
SUBJECT: Receive a Report and Provide Direction to Staff on Potential Reach Code
Modifications
RECOMMENDATION:
Receive a report and provide direction to staff on potential reach code modifications.
BACKGROUND:
On November 15, 2022, the Town Council adopted the 2022 California Building and Fire Codes
as required by state law. As part of this adoption, the Town Council chose to address
greenhouse gas emissions by approving specific amendments, known as Reach Codes, that
created higher environmental standards in building construction, by requiring all new
construction and qualifying major remodels to be fully electric. This Reach Code also requires
additional Electric Vehicle (EV) charging requirements. These Codes became effective January 1,
2023.
The Reach Code applies to new construction and major remodels for residential and
commercial buildings, with exemptions for commercial cooking, gas-dependent processes,
emergency services, and if all-electric equipment was deemed cost-prohibitive.
The following table summarizes the key differences between the 2022 State Building Code and
the Town’s Reach Code:
Appliance 2022 State Code* Los Gatos Reach Code
Water Heating Gas or Electric Electric Required (All Buildings)
Space Heating Encourages Electric Electric Required (All Buildings)
Cooking Gas or Electric Electric Required
Outdoor Gas or Electric Electric Required
PAGE 2 OF 6 SUBJECT: Reach Code Amendments DATE: October 10, 2024
Appliance 2022 State Code* Los Gatos Reach Code
Specialized Processes
(Industrial / Restaurants)
Gas or Electric Electric with Exemptions
*Installation of gas outlets serving water heaters, cooktops, and clothes dryers require the
installation of electrical circuits for future conversion of fixtures.
Ninth Circuit Ruling on Berkeley’s Gas Ban and Electrification Reach Codes
In April of 2023, a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit held that
the plain text and structure of the Energy Policy and Conservation Act (EPCA) preempts state
and local building codes concerning the energy use of natural gas appliances, including
Berkeley’s building code which prohibits natural gas piping into new buildings and thereby
prevents those appliances from using natural gas. On January 2, 2024, the U.S. Court of Appeals
for the Ninth Circuit denied Berkeley’s request for review by the full Ninth Circuit and the
panel’s decision was reaffirmed.
On July 31, 2024, the Town received correspondence from the California Restaurant
Association’s legal counsel regarding the ruling by the U.S. Court of Appeals for the Ninth
Circuit. The letter requested that Town Council repeal or suspend enforcement of the
Ordinance, make a public announcement of that decision, and direct relevant officials not to
apply the Ordinance to building permit applications. It is important to note that the Town’s
adopted Ordinance includes exceptions for tenant improvement projects, and non-residential
cooking facilities; however, these were both found to be preempted by the EPCA language
referenced by the letter.
Based on the Berkeley decision, the Town Attorney is recommending that the Town rescind
portions of the Town’s existing Reach Code. This matter has been scheduled for the Town
Council meeting of December 3rd. The purpose of this item is to discuss alternatives to the
Town’s existing Reach Code so that staff can prepare for the December recission.
DISCUSSION:
The Town has a responsibility to establish codes and regulations which serve in the best
interests of public health, safety, and welfare of the community. The Town Council has
repeatedly shown leadership in relevant advancement of codes and regulations that provide
clean energy, conservation, and public health to the community we serve. The following
discussion presents options including alternative approaches that the Town Council may
consider regarding modification of the Town’s existing Reach Code.
Option 1: Repeal Existing Reach Code and Without Adopting Alternative Requirements
The Town Council may elect to repeal portions of the Town’s Reach Code as currently adopted
that prohibit gas appliances without adopting any replacement regulations. The 2022 Building
Code requires that, when gas connections are installed for water heaters, cooktops, and clothes
PAGE 3 OF 6 SUBJECT: Reach Code Amendments DATE: October 10, 2024
dryers, equivalent electrical circuits must be included for future conversion to electric fixtures
(dual plumbed). Allowing gas appliances would satisfy the ruling of the Berkeley decision;
however, it would not achieve the Town Council’s goal of reducing greenhouse gas emissions.
The Building Code requirement for dual plumbing may independently reduce the number of
builders who choose to accommodate gas.
Option 2: Energy Performance Standards Approach
An alternative approach to a Reach Code is the implementation of more stringent energy
efficiency criteria, leveraging Title 24, Part 6, of the California Building Standards Code. By
setting high performance standards for energy use in new construction and major remodels,
buildings are encouraged to adopt all-electric designs to meet the required benchmarks. This
approach encourages electrification, reduces greenhouse gas emissions, and improves overall
energy efficiency; however, it does not require electrification.
Energy Performance Standards can only apply to water heaters, and space heating, and/or
space cooling systems, as those are already regulated by the California Energy Commission but
cannot regulate other appliances (e.g. cooking). This approach mitigates legal risk by allowing
the use of natural gas, if the overall efficiency of the building meets the compliance margin.
Energy performance standards also ensure that buildings are future proofed against rising
energy costs and more stringent environmental regulations. This approach requires extensive
energy efficiency analysis with each application and will make the building permit review
process more complex, requiring additional energy efficiency calculations and reviews. In
addition, this approach requires the preparation of a cost effectiveness study by the Town and
review and approval by the California Energy Commission (CEC).
This approach has recently been adopted by the City of Cupertino.
In summary, under this approach Town Council would repeal the portion of existing Reach Code
that requires all-electric construction, staff would prepare a cost effectiveness study for review
and approval by the CEC, then return to Town Council with a more stringent energy efficiency
Reach Code that strongly encourages all-electric design for water and space heating systems
(but not cooking).
Option 3: Air Quality Approach
An alternative approach to requiring building electrification is to incorporate a ban on nitrogen
oxide (NOx)-emitting equipment installed as part of a new construction or qualifying major
remodel project. Zero NOx-emitting equipment is defined as any equipment or appliance that
emits 0.0 nanograms of nitrogen oxides. Currently, there are no natural gas appliances that
meet this standard.
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As a group, natural gas building appliances are one of the largest emitters of nitrogen oxides
and are known to contribute significantly to the formation of ground-level ozone and
particulate matter (PM2.5) in buildings. Exposure to NOx has been linked to coughing,
wheezing, difficulty breathing, asthma, and increased susceptibility to respiratory infections.
Exposure to particulate matter has been linked to asthma and other respiratory conditions,
neurological disease, heart attack, stroke, lung cancer, and premature death.
By focusing on air quality improvements, the Town Council could mandate that all new
construction and qualifying major remodels utilize only NOx-free appliances and heating
systems, thereby eliminating a significant source of indoor air pollution. Zero NOx-emitting
equipment can apply to all appliances (e.g. space heating, water heating, cooking, and clothes
drying).
Air quality is regulated by the Clean Air Act (CAA), rather than the Energy Policy and
Conservation Act (EPCA). This approach not only aligns with the CAA’s National Ambient Air
Quality Standards (NAAQS), it also ensures a healthier living environment for residents and
helps mitigate the adverse impacts of climate change.
Although each jurisdiction differs slightly, this approach has been taken by the City of Campbell,
the City of Los Altos Hills, and the Bay Area Air Quality Management District (BAAQMD).
BAAQMD’s regulations state that only zero-emission, electric water heaters can be sold or
installed in Bay Area homes or businesses starting in 2027, and furnaces starting in 2029. Large
commercial water heaters will need to be zero-emissions by 2031. BAAQMD estimates that
these amendments could prevent up to 85 premature deaths per year, avoid up to $890 million
per year in health impacts, and decrease exposure to PM2.5.
Under this approach, the Town Council would repeal the portion of existing Reach Code that
requires all-electric construction and adopt new requirements, mandating that all new
construction and qualifying major remodels utilize only NOx-free appliances.
A summary of the options going forward, and the pros and cons of each, is summarized below
for ease of reference and comparison.
Option Pros Cons
1. Repeal portions
of the existing
Reach Code and
allow natural gas
in new buildings
and major
remodels.
• Avoids litigation based on
federal law preemption.
• Allows for continued use of
natural gas, contributing to
greenhouse gas emissions and
poor air quality.
PAGE 5 OF 6 SUBJECT: Reach Code Amendments DATE: October 10, 2024
Option Pros Cons
2. Repeal portions
of the existing
Reach Code and
replace it with an
alternative Reach
Code using Energy
Performance
Standards.
• Uses established processes
through Title 24 of the
California Building
Standards Code.
• Legally sound – Only
increases compliance
margin.
• Requires cost effectiveness
study and California Energy
Commission approval.
• Requires additional resources
and adds complexity during
implementation.
• Doesn’t address stoves, dryers,
fireplaces, pool heating, etc.
Only addresses space and
water heating.
• Doesn’t prohibit new gas
infrastructure.
3. Repeal portions
of the existing
Reach Code and
set a Zero NOx-
emitting appliance
threshold that
regulates Air
Quality.
• It is comprehensive and
can cover any appliance
that uses gas and emits
NOx.
• Simple to enforce and
conforms with upcoming
BAAQMD regulations.
• Does not require a cost
effectiveness study or
California Energy
Commission approval.
• Hasn’t been legally tested.
CONCLUSION:
Staff Recommendation
In review of the options and considerations outlined in this report, the Air Quality approach
(Option 3) most closely resembles Town Council’s prior direction. It provides a more holistic
approach that better addresses the overall impacts of emissions, as it offers comprehensive
benefits for both the environment and public health. By prohibiting NOx emissions in all new
construction and qualifying major remodels, Town Council can directly mitigate these harmful
pollutants. This approach reduces respiratory and cardiovascular issues linked to poor air
quality, while also supporting broader climate action goals of reducing greenhouse gas
emissions. Unlike the Energy Performance Standards approach, the Air Quality approach
explicitly targets the elimination of NOx emissions, making it a more effective strategy for
protecting both environmental and human health.
Staff recommends that the replacement standards retain the exemptions from the existing
Reach Code that allow gas in certain specialized processes and restaurants. These provisions
PAGE 6 OF 6 SUBJECT: Reach Code Amendments DATE: October 10, 2024
acknowledge the technical or business needs of these industries and will act to minimize the
Town’s potential legal risk should there be challenges from industry groups.
Based on direction provided by the Town Council on this item, Staff will return to the Town
Council with a code amendment repealing and/or replacing portions of our current Reach Code.
COORDINATION:
The Community Development Department coordinated with the Town Attorney’s Office in the
preparation of this report.
FISCAL IMPACT:
Option #1 and #3 have no fiscal impact, because each involve very minor edits to the Town’s
existing ordinance.
Option #2 is the most expensive option, because it will require a study to be conducted by a
consultant and a more detailed ordinance.
ENVIRONMENTAL ASSESSMENT:
Because the Town Council is providing direction only, and staff will return with a proposed
ordinance, this action is not a project subject to the California Environmental Quality Act.
(Public Resources Code Section 21065.)