Sunnyvale Imposes Environmental Regulations Likely To Cost Homeowners

Sunnyvale has passed an ordinance allowing the city to regulate household appliances and heating systems before a state law prevents it from doing so.

Starting in October, AB 306 will pause cities’ ability to amend residential construction codes. So, at its Aug. 12, the Sunnyvale City Council started the process of getting an ordinance on the books before the law prevents it from doing so.

State law requires newly constructed projects to adhere to two standards: the California Energy Code and California Green Buildings Standards. California Energy Code requires buildings to be electric-ready as work is done. California Green Buildings Standards require homeowners to install heat pumps when replacing their air conditioners.

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But, in an attempt to go a step further, Sunnyvale wanted to require homeowners to meet both criteria when they remodel, alter or add onto their homes. In order to do so, the city needed to adopt an ordinance and have it in effect when AB 306 takes effect.  

“The ability to capture future greenhouse gas emissions during alterations, remodels and additions are part of the appeal of these ordinances,” said Suzanne Park, chief building official.

The change, she said, will have “significant impact for homeowners” since rewiring for electric appliances can require an electric panel upgrade, which typically costs between $10,000 and $20,000. 

Although heat pumps are more efficient, reducing energy use, depending on the size of the home, a new heat pump is likely to cost between $3,500 and $20,000, according to the Environment California Research & Policy Center. After rebates, the average American homeowner pays around $14,000 for a new system.  

The ordinance will only require homeowners who are doing work “in the vicinity” of a gas appliance to rewire it for electric appliances, Park said. Similarly, residents replacing, not just repairing, an air conditioner need to get a heat pump.

Nupur Hiremath, with Silicon Valley Clean Energy (SVCE), said her organization offers several rebates for homeowners. Among those rebates are a $2,500 rebate for installation of a heat pump, up to $1,000 for needed electric panel upgrades and up to $2,000 for circuit upgrades — $500-per-circuit for up to four circuits.

Less than 20% of projects SVCE assists with require an electric panel upgrade, she added.

Several environmentalist groups lauded the ordinance. 

“Climate action is under attack, and the leadership of cities like Sunnyvale is urgently needed in this time,” said Dashiell Leeds, conservation coordinator for the Sierra Club’s Loma Prieta chapter.

Peri Plantenberg, advisor for the Sunnyvale team of Silicon Valley Youth Climate Action, an organization co-founded by Vice Mayor Linda Sell, said electric appliances are “conducive to better indoor air quality.”

Citing the expense to homeowners, Council Member Eileen Le supported the motion with “hesitation” and “reservation.”

“Even with grants, even with incentives, that is not going to cover the full cost of these things,” she said. 

The ordinance passed unanimously. The motion included direction to city employees to conduct public outreach, educating homeowners on the requirements and available rebates.

City-Owned Recycling Plant Gets New Customer

The council also unanimously approved taking on Cupertino as a merchant for the city’s recycling plant, Sunnyvale Materials Recovery and Transfer (SMaRT) Station. The city owns the plant, which is operated by Bay Counties Waste Services.

Mountain View is also a partner in the effort. In 2021, Palo Alto left the partnership. Since then, the city has been seeking partners or customers to help reduce costs. 

“Environmentally, it is a win. Financially, it is a win for us and our partners,” said Vice Mayor Linda Sell.

The plant can process roughly 1,500 tons of recyclable material a day. Sunnyvale and Mountain View do not utilize all the plant’s capacity, leaving approximately 800 tons of capacity available daily. Cupertino will use 15 tons a day of the capacity.

Shikha Gupta, solid waste programs division manager, told the council the city offered Cupertino the option to enter the partnership, but the city opted for a more straightforward merchant contract that is more financially predictable.

Cupertino’s garbage haulers — Recology — will transport the city’s mixed-use garbage to SMaRT Station for sorting. Gupta said the city estimates roughly 60% of that garbage is recoverable as recycled material. In addition to lowering operating costs, the agreement also increases Cupertino’s landfill diversion from 0% to 50%.

Not everyone was enthused.

“I have serious reservations about entering into a business agreement with an entity that has a track record like the city of Cupertino does,” said Council Member Richard Mehlinger. “However … it is clear that there is substantial financial and environmental advantages to the city of Sunnyvale and its residents for entering into this agreement, and I am satisfied that the risk from doing so is sufficiently low and that we have mitigated the potential inconveniences that could result.”

The contract has a 20-year term, but Gupta said Cupertino can opt into being a partner at any point during the contract.

City Funnels Pandemic Money to Food Assistance

Finally, the council re-allocated the last of federal pandemic money. 

With a fifth amendment, the council adjusted the 2019/2020 Housing and Urban Development (HUD) Action Plan to account for $185,000 leftover Coronavirus Aid Relief and Economic Securities (CARES) money.

Sunnyvale got roughly $1.7 million in CARES money. It used that money predominantly for emergency rental assistance during the pandemic. However, a slew of other minor programs also received money. The leftover money became surplus once county money came through to fund a quarantine and isolation program.

The council retroactively adjusted the plan to reflect the money’s reallocation to Sunnyvale Community Services’ food assistance program, which provides groceries for the poor.

The council approved the following spending from the consent calendar:

  • A $6.57 million contract with MCK Americas, Inc. for construction management support services for the Sunnyvale Cleanwater Center project. 

The council meets again at 7 p.m. Tuesday, Aug. 26 in the Sunnyvale City Council Chambers at City Hall, 456 W. Olive Ave. in Sunnyvale. 

To submit public comments ahead of the meeting, visit http://Sunnyvale.ca.gov/PublicComments; Meeting online link: https://sunnyvale-ca-gov.zoom.us/j/96111580540; meeting call-in telephone number: 833-548-0276, meeting ID: 961 1158 0540 

Contact David Alexander at d.todd.alexander@gmail.com

Previous City Council Meetings:
Sunnyvale Council Takes Action on Tasman Drive Pedestrian-Bicycle Improvements Study
Sunnyvale Changes Zoning To Accommodate Housing Amid State Red Tape
Sunnyvale Hikes Utility Rates

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