City Council Agenda and Packet 2022 09 27 SP

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SUBJECT: DISCUSSION/DIRECTION — COMMERCIAL ENERGY CODE OPTIONS DATE: SEPTEMBER 27, 2022 PAGE 2 OF 4 Policy Option 2 — 2021 IECC Appendix CC, Zero Energy Commercial Building Provisions: This option is to adopt 2021 IECC commercial net zero construction appendix. The appendix does not require increased building efficiency beyond the base 2021 IECC code, but does require renewable energy offsets to attain net zero. Only a portion of renewable offsets needed to meet the code could be achieved on site, with the remainder needing to be obtained off site, or more likely through purchase of Renewable Energy Certificates (RECs). Renewable off set requirements would need to be maintained for a 15-year period. The City could also consider all -electric requirements for new construction in addition to adoption of Appendix CC. Similar to Policy Option 1, industry types, such as laboratories, manufacturing, industrial or food processing, restaurants, and hospitals, would likely need exemptions from the net zero offset or all electric standard. This exemption could be from process loads necessary for these uses, or a broader exemption for the use type. Staff, with the assistance of the Southwest Energy Efficiency Project (SWEEP) and Shums Coda Associates, has developed draft codes for each of the three options described above (see Attachments 3-5). These are initial drafts to support the discussion. Based on Council direction, the preferred code option will need further development and refinement before being presented for adoption. PUBLIC COMMENTS: The project included two public open house meetings, an online survey and use of the EngageLouisvilleCO.org platform to keep the public informed and gather public comments. Public comments and the survey results are included as Appendix B to the consultant's final report. Additional public comments submitted directly to staff are included as Attachment 6. ADVISORY BOARD REVIEW: Louisville Sustainability Advisory Board (LSAB): LSAB received a presentation from the City's consultants at their July 201" meeting and had further discussions on the topic at their August 17t" meeting (see Attachments 7 and 8 for minutes). A summary of comments from the July 20t" meeting are included in the public input summary in Appendix B to the consultant report. LSAB has also provided a letter with more detailed comments and recommendations (see Attachment 9 for letter). Building Code Board of Appeals (BCBOA): BCBOA received a presentation from the City's consultants at their July 21st meeting. Discussion is reflected in the attached minutes (see Attachment 10) and the public input summary in Appendix B to the consultant report. Staff intends to take the preferred code option back to each board for review and recommendation to the City Council as part of the adoption process. CITY COUNCIL COMMUNICATION 3