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reduction potential from adopting an all-electric reach code is estimated to be 10,100 metric tons (MT) carbon dioxide equivalent (CO2e) through 2030. Additional Considerations In addition to implementing CAP 2.0 Primary Action 1 and reducing GHG reductions over time, requiring all-electric construction has several other factors to consider: • Cost All-electric buildings are typically less expensive to build and operate than their mixed-fuel counterparts. Cost savings are achieved from not having to run gas lines, having to install fewer appliances, and the time savings of avoided inspections and sign-off of gas meters by Pacific Gas & Electric (PG&E). Funded by the California investor-owned utilities (IOUs), the California Statewide Codes and Standards Program (Statewide Program) led the development of cost-effectiveness studies for reach codes that examined different performance-based approaches for new construction of specific building types. Staff has worked closely with EBCE's consultants to interpret the Statewide Program study's results, and to infer what options may or may not be cost-effective for the building types prevalent in Pleasanton. Through these discussions, staff has adjusted the proposed building electrification reach code and proposed exceptions. Cost effectiveness is defined as having a positive cost/benefit ratio over the lifetime of the project either based on on-bill financing (the savings on utility bills over 15-30 years has a net present value greater than the cost of the upgrades) or time dependent valuation, which is a more detailed analysis which includes future costs of energy, cost of energy at different times of the day, and replacement costs of the equipment. The proposed reach codes for buildings in Pleasanton's Climate Zone (12), allow for all-electric construction pathways that are cost-effective over the lifetime of the building systems for most new construction buildings within city limits. For instances where a cost-effective compliant pathway does not exist, staff proposes an exception to the reach code and from constructing all-electric. In addition to being cost-effective, for many building types, all-electric buildings are cost equivalent and less expensive to construct (e.g., single-family, retail, small office). As an example, cost savings for a new single-family home ranges from $5,000-6,000 in upfront costs (primarily from avoiding constructing a new gas lateral). Additionally, annual cost savings are approximately $400. The 2022 single-family cost effectiveness study is linked as Attachment 3 for reference. The 2022 multi-family and non-residential studies will be released later this year, though the findings for the 2022 single-family study and past analysis for multi-family and non-residential in 2019 are indicative of what the studies will yield. As noted, for those building types that are not cost-effective- there is an exception suggested. • Construction Trends Reach Codes Committee on Energy and the Environment 4 of 10