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City Council <br />Meeting Minutes <br />February 1, 2022 <br />Page 5 of 12 <br />Appendix. The adopted code includes, Electric Vehicle (EV) readiness, electric -ready <br />amendment, solar readiness appendix and Residential Net -Zero appendix. A Department <br />of Energy analysis indicates that the 2021 IECC results in a 9% energy savings over the <br />2018 IECC and a 51% energy savings over energy codes predominant in the early 1990s. <br />After the fire, the City had Group 14 Engineering develop an analysis of different cost <br />scenarios for a 2,820 square foot, 4 bedroom, 3 bath home constructed in 1991. Boulder <br />Creek Neighborhoods and Markel Homes provided the cost information. Scenarios used <br />the 2018 IECC, as amended was the baseline, and compared it to the same building <br />under the Residential Net -Zero, 2021 IECC, as amended with Residential Net -Zero <br />(natural gas) and 2021 IECC, as amended with Residential Net Zero (all electric). <br />The initial numbers show the cost to upgrade from the 2018 IECC to the 2021 IECC was <br />$8,360. The cost to upgrade to the 2021 IECC, as amended without the Residential Net - <br />Zero was $14,270. The cost to upgrade to the 2021 IECC, as amended with the <br />Residential Net -Zero (natural gas) was $19,780. The cost to update to the 2021 IECC, as <br />amended with the Residential Net -Zero (all electric) was $33,795. <br />Costs associated with the power source to get the home to net zero. Modeled out over 15 <br />years the owner can do either renewables on or off site. It is unlikely that solar could be <br />100% provided on site and will need to be supplemented offsite. The code requires a 15- <br />year commitment with a solar garden or other offsite energy provider. <br />Insurance varies by policy, and the city is still trying to understand the level of <br />underinsurance. Some policies may require the homeowner to cover all upgrades from <br />original construction, others can be limited or capped. However staff is starting to see <br />offers to offset these costs. We still need to understand what will be firm commitments, <br />and if there is the ability of homeowners to pass through incentives to homebuilders. <br />There are other issues such as pricing volatility and supply chain issues. The less <br />common the equipment the more challenging it is to reliably source. <br />Councilmember Fahey asked if the natural gas costs in the 15-year total include <br />purchasing green credits such as solar or wind credits. Principal Planner Ritchie <br />responded that these costs assume the homeowner has enrolled in a solar garden for 15 <br />years. Councilmember Fahey asked how the city will manage rebates and discounts. <br />Principal Planner Ritchie said they are still working on that process. There is ongoing <br />work in firming up commitments and how to guarantee homeowner's get all the rebates <br />available to them. <br />Councilmember Most asked about the unofficial offer for heavily discounted heat pump <br />systems and what applying that discount would do to the cost in the analysis. Principal <br />Planner Ritchie responded there were no specifics at this time. <br />