Mayors’ Commission on Climate Change Built Environment Technical Advisory Committee Preliminary Recommendations – Update to Sacramento Environmental Commission Obadiah Bartholomy, SMUD | TAC Lead

Agenda Vision Priority Strategies Potential Funding Sources Key Principles Priority Strategies Land Use New Buildings Existing Buildings Potential Funding Sources

Draft Vision We envision compact, walkable communities that integrate efficient design, localized renewable energy systems, and nature-based solutions, leveraging carbon neutrality to achieve positive health, equity, economic development, and resiliency outcomes. Investments will match priorities and strategies will be pursued in a manner that considers both costs, including avoided costs, and benefits. Communities will be fossil-free and fully electrified with an abundance of green space and affordable housing, designed to prioritize vibrant public spaces, multimodal and active transportation, resource conservation, and quality of life for all.

Key Principles Authentically and inclusively engage residents, stakeholders, businesses and community leaders Prioritize investments and projects in existing communities and existing development, particularly in disadvantaged communities Align all local plans with the Commission’s recommendations by 2025 Forge regional partnerships to support ambitious action on climate change Enable and implement the ambitious actions necessary to achieve the recommended carbon neutrality goal

A Key Challenge In Focus Building Decarbonization Emissions from natural gas combustion for appliances remain the biggest challenge Like many cities in California, these recommendations look to electrification to address this challenge Many co-benefits of eliminating combustion SMUD offers generous incentives aimed at Market Transformation, but need local policy support

Priority Strategies

Land Use Strategy Establish an Urban Growth Boundary to allocate all new growth regionally to existing developed areas by 2025

Land Use Implementation Tactics Introduce and advocate for state, regional, and local regulations that clearly limit new development to existing developed areas in the region Enable 35,000 new high density, affordable, and accessible residences through the continuation of the City’s expansion of by-right zoning, financial incentives, and modifying single family dwelling designations, coupled with anti-displacement policies Establish a locational efficiency metric by 2020 to prioritize low emissions development, which could be a combination of walk score, Vehicles Miles Traveled (VMT), carbon dioxide equivalent (CO2e) and/or building siting and efficiency

New Construction Strategy Mandate all-electric new construction to eliminate fossil fuel use in new buildings by 2023

New Construction Implementation Tactics Adopt and implement an ordinance that would result in 100% electrification of all new construction by 2023. Adopt a measure to reduce the embodied carbon emissions from building materials and construction of new buildings by 40% (compared to 2018) Identify large-scale development projects in progress to encourage electrification

Existing Buildings Strategy Transition 25% of existing residential buildings and small commercial buildings to all electric by 2030

Existing Buildings Implementation Tactics Require property owners to install electric appliances when replacing natural gas appliances and develop an enforcement mechanism that would result in 100% compliance Establish a comprehensive electrification and energy efficiency program to reduce the energy burden of low-income residences while expediting the decommissioning of aging natural gas infrastructure in disadvantaged communities. Establish building performance standards and GHG emission limits by 2021 with 2026 as the first year of compliance supported by a benchmarking and audit ordinance and determining the building types where CEC-approved certifications will be mandatory

Potential Funding Sources SACOG Green Means Go Pilot Program - $400M for infill + mobility solutions – requested to legislature Pay as You Save (PAYS) on-bill financing program Property Assessed Clean Energy (PACE) program SB – 743 Implementation/VMT Mitigation Fees SGC Affordable Housing and Sustainable Communities Program SMUD incentive programs for building electrification – Currently up to $10K per home for existing residential, up to $5K for residential new construction

Key Takeaways Substantially increase efforts to promote more efficient land use Adopt transformative policies to promote all-electric buildings Many important co-benefits (e.g., health, air quality, cost savings) Technologies exists today Incentives available Not alone, many cities doing this

Thank you! www.lgc.org/climatecommission