Public Review Draft Chapter 5

This chapter summarizes opportunities for energy conservation and the reduction of Greenhouse Gas emissions in the construction of housing in the City of Carmel-by-the-Sea.

The City adopted a Climate Adaption Plan (CAP) and Climate Action Plan on August 2, 2022. The documents which identify goals, policies and actions that seek to contribute to increasing resilience to climate change in Carmel. The CAP includes a policy to minimize health impacts of climate change that includes the following actions that address energy conservation and reducing greenhouse gases:

• Invest in Improving Resilience in Critical Facilities. Invest in sustainable backup power sources to provide redundancy and continued services for critical facilities, including City Hall, Carmel Police Department, Carmel Fire Department, the Libraries, and assisted living facilities, in the event of a power outage triggered by a climate event.
• Conduct a Feasibility Study for Existing Building Electrification and Back-up Power. Perform an electrification feasibility study/existing building analysis in order to understand the potential for, and associated costs of, electrification retrofitting, including heat pumps, along with on-site energy generation and battery storage to provide a more resilient back-up power supply. Establish a plan for reducing or eliminating natural gas from existing buildings, potentially through a reach code, and building resilience to potential electrical grid shutoffs.
• Improve Resilience in Existing Building Stock. Develop a program for identifying funding and incentives to weatherize residential and commercial buildings that addresses severe weather protection, energy efficiency, indoor air quality improvements, and other housing improvements. Include an outreach campaign as part of this program to advertise the benefits of weatherizing and electrifying buildings.
• Promote Funding Opportunities. Work with partners like 3CE and PG&E to identify and promote potential resilience opportunities and accessible funding and financing mechanisms to pay for building electrification, weatherization, and battery backups.

State Regulations

The City requires compliance with Title 24 of the California Code of Regulations on the use of energy efficient appliances and insulation. Through compliance with Title 24, new residential development has reduced energy demand particularly when contrasted with older building stock.

Providing energy conservation opportunities to residents who reside in less energy efficient residential units can ultimately lead to a reduction in utility-related housing costs for many households. The City processes in excess of 500 building permits per year for remodels, additions and other construction which rehabilitates the existing housing stock and increases energy efficiencies and improves water conservation.

Central Coast Community Energy

Central Coast Community Energy (3CE) is the community electricity provider for 33 Central Coast communities in Monterey, San Benito, Santa Cruz, San Luis Obispo, and Santa Barbara counties and is governed by local elected officials serving on the Board of Directors. 3CE was formed with the mission to reduce dependence on fossil fuels by providing carbon-free, affordable and reliable electricity and innovative programs within the community. CCCE is on a path to sourcing 100 percent clean and renewable energy by 2030. In collaboration with regional and statewide partners, 3CE provides customers with access to energy program rebates and incentives to electrify the region’s transportation, buildings, and agricultural sector. Carmel-by-the-Sea is a member of 3CE.

Pacific Gas & Electric

Pacific Gas and Electric Company (PG&E), which provides energy efficiency services in Carmel-by-the-Sea, offers public information and technical assistance to homeowners regarding energy conservation. PG&E also provides numerous incentives for energy efficiency in new construction and home remodeling. For example, remodeling rebates exist for projects installing three or more upgrades from a flexible menu of options that earn points towards incentives and rebates. This program's incentives range between $1,000 and $4,500.

Additionally, PG&E provides residents with information regarding energy saving measures including various incentives and programs available to developers and residential property owners. Table 5-1, PG&E Programs and Incentives for Residential Properties, includes a description of the various types of financial and energy-related assistance that PG&E offers low-income customers.

Table 5‑1 PG&E Programs and Incentives for Residential Properties

SOURCE: PG&E, 2022.

Monterey Water Management District

The Monterey Peninsula Water Management District was formed on June 6, 1978 under the enabling legislation found in West’s California Water Code. District functions include:

• Augmenting the water supply through integrated management of ground and surface water;
• Promote water conservation;
• Promote water reuse and reclamation of storm and wastewater; and
• Foster the scenic values, environmental qualities, native vegetation, fish and wildlife, and recreation on the Monterey Peninsula and in the Carmel River Basin.

The Water Management District serves approximately 105,911 people within the cities of Carmel-by-the-Sea, Del Rey Oaks, Monterey, Pacific Grove, Seaside, Sand City, Monterey Peninsula Airport District and portions of unincorporated Monterey County including Pebble Beach, Carmel Highlands and Carmel Valley. The District has established five main goals:

1. Increase the water supply to meet community and environmental needs;
2. Assist California American Water in developing a legal water supply;
3. Protect the quality of surface and groundwater resources and continue the restoration of the Carmel River environment;
4. Instill public trust and confidence; and
5. Manage and allocate available water supplies and promote water conservation.

Rebates are available for water saving fixtures and appliances for homes and businesses. California American Water (Cal-Am), Seaside Municipal Water District, and other system customers within the District are eligible for a rebate when purchasing and installing water saving devices. Residential rebates are available for purchase of the Qualifying Devices when funding is available. The following are residential rebates:

• High Efficiency Toilet — $75;
• Ultra High Efficiency Toilet — $125;
• Toilet Flapper — $15;
• Pint Urinal — $250;
• High Efficiency Residential Dishwasher (Maximum of 3.5 gallons per cycle and has Energy Star certification) — $125;
• High Efficiency Residential Clothes Washer (Water Factor of 4.3 and Energy Star Certification) — $500;
• A second or subsequent rebate for replacing a High Efficiency Clothes Washer is available after 8 years;
• Instant-Access Hot Water System — $200 per Qualifying Property;
• On-demand pump or point-of source water heater as part of an Instant-Access Hot Water System — $100 per component, to a maximum of two components per Qualifying Property;
• Multi-Family Dwelling Meter Split — $100/dwelling unit;
• Smart Controller — $100 with four stations. Additional $10 available per station up to twenty (20) stations;
• One or more Soil Moisture Sensor(s) on a conventional automatic Irrigation System — $25 per sensor;
• Cistern water tanks — $50 per 100 gallons of water storage capacity (up to 500 gallons) in a Cistern, then $25 per 100 gallons of water storage capacity up to a maximum storage capacity of 25,000 gallons per Qualifying Property. Sites must have sufficient roof area to fill Cistern and may require an inspection;
• Lawn removal and replacement with low water use plants or permeable surfaces — $1.00 per square-foot to a maximum of 2,500 square-feet per Qualifying Property. Pre-qualification, inspections and deed restrictions are required;
• Rotating Sprinkler Nozzles (minimum purchase and installation of ten) — $4.00 per nozzle;
• Graywater Irrigation System supplied by one Clothes Washer for irrigation — $100. A site inspection is required by Building Inspector and/or MPWMD; and
• Graywater Irrigation System supplied by one or more Bathrooms that have a Bathtub/Shower connected to a Graywater Irrigation System — $100 per Bathroom. (Residential limit: 4) A site inspection is required by Building Inspector and/or MPWMD.

As part of the 6^th Cycle Housing Element Update process, the City of Carmel-by-the-Sea will continue to implement a Water Conservation program that supports the MPWMD and also provides information to the community on water conservation retrofits and best practices.

Federal and State Programs

The Low-Income Home Energy Assistance Program (LIHEAP) is a federally funded program aimed at assisting low-income households that pay a high portion of their income to meet their energy needs. LIHEAP is funded by the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Community Services.

• The Home Energy Assistance Program (HEAP) provides one-time financial assistance to help balance an eligible household's utility bill;
• The Energy Crisis Intervention Program (ECIP) provides assistance to low-income households that are in a crisis situation. Such an example would be a household receiving a 24-48 hour disconnect notice or service termination by their utility company. Another example would be a household facing an energy-related crisis that could be deemed potentially life-threatening in the household, such as a combustible appliance;
• LIHEAP Weatherization provides free energy efficiency upgrades to low-income households to lower their monthly utility bills while also improving the health and safety of the household's occupants;
• Education on basic energy efficiency practices and instruction on the proper use and maintenance of installed weatherization measures; and
• Energy budget counseling.

The Inflation Reduction Act (IRA) has provided significant federal funding to support electrification of new construction, renovations, and existing buildings over the next ten years. Enhanced amounts are provided for income-qualified residents. Support provided by IRA includes:

New Home Construction Tax Credits (single family or multi-unit)

• Up to $2,500 tax credit if meets Energy Star certification requirements;
• Up to $5,000 tax credit if meets Zero Energy Ready Homes certification requirements; and
• Tax credit is "per unit" for multifamily developments; maximum tax credit requires conformance with prevailing wage requirements.

Home Improvement Tax Credits (for households with tax liability)

• 30 percent of project cost, capped at $2,000 for heat pump installation and $1,200 for other energy efficiency appliances and improvements; and
• Available January 2023 through 2032; tax credits can be claimed on a per year basis.

Home Improvement Tax Rebates (for low and moderate-income households)

• Rebates up to $14,000 depending on income for heat pumps, induction and electric ranges, and other energy efficiency improvements; and
• Available Fall 2023 through 2032.

Home Renewable Power Tax Credits

• 30 percent of project cost for installation of solar panels, battery storage, and any other renewable power source on property;
• Example: $19,000 to install rooftop solar panels generates $5,700 tax credit; and
• Retroactive to 2022, full credit sunsets in 2032; then 22 percent credit expires in 2035.

The Property Assessed Clean Energy (PACE) Financing program enables property owners to secure upfront funding for energy efficiency, water efficiency, renewable energy, and seismic improvement projects. These improvements are repaid through an up to 20-year special line item on their property taxes instead of traditional consumer credit.

The City includes a program in the 6^th cycle Housing Element to promote energy conservation and green building and to actively disseminate information about State and Federal programs.