Council directs staff to develop heat‑pump AC incentives and analyze policy options after reach‑code review

Staff recommended that the council not pursue new‑construction energy or EV‑charging reach codes because changes in the 2025 California building codes and a 9th Circuit court ruling limit available local options and make most above‑code amendments unlikely to be cost‑effective for Truckee. Instead, staff recommended focusing on the existing‑building opportunity of heat‑pump air‑conditioning (heat pump AC) — a pathway to introduce electric heat‑pump technology via AC replacements rather than immediate furnace replacement — and proposed pursuing consultant‑led incentive and policy work.

"Truckee's building stock is dominated by residential buildings... detached single family homes are 84% of all buildings," Erin Brewster, sustainability program manager, told council as she reviewed permit data, legal constraints and cost‑effectiveness requirements. She said staff found limited cost‑effective options for above‑code measures for new construction because the 2025 statewide code raises the baseline and because the 9th Circuit decision curtails rules that would effectively prohibit natural gas use.

Staff recommended three next steps: engage a consultant to design a residential heat‑pump AC incentive program that offsets incremental costs and encourages upsizing and full electrification where feasible; analyze policy options for a heat‑pump AC requirement for existing single‑family homes with appropriate exemptions and compliance paths; and integrate contractor training into education programs. The staff estimate for consultant support was up to $85,000 and staff said grant funding from the California Energy Commission could cover planning costs.

Council members pressed staff about timing, contractor capacity and existing rebate programs. Some council members said they preferred broader incentive packages or combining the work with a broader building‑decarbonization roadmap; others argued for acting quickly to capture near‑term AC replacements. The measure of council direction was a motion, amended during deliberations to include partnering with Sierra Business Council and the Contractors Association of Truckee Tahoe on contractor training and to ask staff to identify funding needed for implementation in the next budget request. The motion passed unanimously.

Council's action directs staff to return with program design and policy options in early 2025 and to seek consultant support and grant funding to complete required cost‑effectiveness and program design work.