SVCE updates cities on existing‑building electrification; staff urges AC‑to‑heat‑pump and prewiring requirements

SVCE staff gave an update on local agency action planning and urged member jurisdictions to consider a set of existing‑building measures aimed at accelerating electrification and preventing redundant investments in fossil‑fuel equipment.

Key proposals explained: Tony Gilio, presenting for the staff team, outlined three primary approaches for existing buildings: 1) an “AC‑to‑heat‑pump” requirement that would require replacement air conditioners to be heat pumps (reducing future need to retrofit when furnaces are later phased out); 2) prewiring requirements that would require electrical conduit/circuits when buildings undergo remodels so future electric appliance retrofits are easier and cheaper; and 3) a “flex‑path” ordinance that would score remodel projects against a set of decarbonization criteria.

Potential benefits: Staff presented high‑level estimates showing that adopting AC‑to‑heat‑pump requirements across member jurisdictions could yield thousands of heat‑pump installations over three years, avoid tens of millions of dollars in redundant equipment costs and produce on‑bill savings for customers. Staff also noted that local reach codes enacted in previous cycles (REACH codes in 2019 and 2022) had driven significant heat‑pump water‑heater uptake in the region.

State code interaction and legislation: Staff described the 2025 state building code as largely supportive of electrification for space and water heating and noted that the state code does not currently mandate induction cooking. The presentation also highlighted pending legislation (AB 306) that, as drafted at the time of the meeting, could restrict local reach‑code adoption for a multi‑year period. SVCE and multiple CCAs submitted a concerns letter seeking clarifying amendments that would allow adoption of the 2025 state code and preserve local authority to adopt reach codes for existing buildings while narrowing any moratorium to new construction only.

Board discussion: Directors asked how staff would implement and enforce early‑stage measures and what exemptions would look like. Staff said the preferred approach is to work closely with local building departments and to offer targeted incentives (for example, a $500 per circuit reimbursement for prewiring up to a cap for income‑qualified customers) and training for permit‑office staff. SVCE staff also committed to continuing technical support and training sessions for local development‑services staff.

Next steps: SVCE will continue outreach and training with member jurisdictions around the 2025 state code and proposed reach‑code options, refine model ordinance language for AC‑to‑heat‑pump and prewiring ordinances, and continue advocacy and amendments discussions on AB 306.