more information on the statewide energy code

CAMBRIDGE CITY COUNCIL Quinton Y. Zondervan City Councillor To the Honorable, the City Council: Building and climate change experts in Massachusetts, including Cambridge City staff from the Community Development Department (CDD), have been working with the Commonwealth’s Board of Building Regulation and Standards (BBRS) and later the Department of Energy Resources (DOER) on developing a net zero or fossil free building energy code and associated standards for several years. These efforts are finally coming to a close and have yielded new specialized energy codes that are now before us to adopt. This communication is to provide you with additional information about the new specialized energy codes, the implications of adopting them, and the history of how we got to this point. Updating the Statewide Energy Code Massachusetts typically updates its statewide energy code every few years, and the process governing the latest round of updates was established through the Next Generation Climate Roadmap Bill which Governor Baker ratified in March 2021. This bill charged the Department of Energy Resources (DOER) with updating the Stretch Energy Code, which municipalities may adopt to require energy efficiency standards that are above and beyond what is required by the base code. 299+ municipalities have adopted the Stretch Energy Code since it was established in 2009, and Cambridge was of course one of the very first to do so. A municipality only has to opt-in one time and any subsequent updates automatically take effect, which is why there was no council vote to adopt the revised Stretch Energy Code last year. The changes took effect in Cambridge as of January 1, 2023 for residential buildings, and will take effect on July 1, 2023 for commercial buildings. In addition to an updated Stretch Energy Code, the 2021 legislation also tasked the DOER with establishing for the first time a new Municipal Opt-in Specialized Code (known as the Specialized Code). There was a great deal of optimism that this new Specialized Code would finally offer municipalities the ability to require net zero (emissions free) building construction. CITY HALL, CAMBRIDGE, MASSACHUSETTS 02139 Email: qzondervan@cambridgema.gov

However, as DOER deliberations began to unfold, it became clear that even the Specialized Code would not reach the net zero standard that so many had hoped for during the extensive public process. Recognizing that it would be years before another opportunity to update the energy code would arise, legislators passed an additional bill in August 2022 which, among other things, established a Municipal Fossil Fuel Free Building Demonstration Program. Governor Baker had initial reservations about this pilot but eventually came around to it once additional stipulations around housing production and zoning were added to the criteria for participation, as outlined below. So, in summary, the Specialized Code and the Municipal Fossil Fuel Free Building Demonstration Program are both moving ahead and are separate but interdependent, which I will explain further below. Participating in the Municipal Fossil Fuel Free Building Demonstration Program The Municipal Fossil Fuel Free Building Demonstration Program will allow up to ten municipalities to adopt ordinances that require most new construction and major renovation projects to be fossil fuel free. Biomedical research and medical offices are specifically exempt. To be eligible to participate, municipalities must: ● File a home rule petition asking the state for permission to require fossil fuel free building construction. ● Meet specific housing production and zoning requirements by either exceeding the 10% affordability threshold set under MGL 40B or establishing at least one district of reasonable size in which multi-family housing is permitted as-of-right. The latter is defined in the same way as it is in the new Multi-Family Zoning Requirement for MBTA Communities. ● Adopt a local provision to require fossil fuel free construction. DOER recommends the approach of first adopting the Specialized Code and then modifying it through a city ordinance to require fossil fuel free construction. DOER does not require us to take this approach, but any municipality that tries something else must submit a written explanation as to why they did that, and it may create unnecessary risk that our application would be rejected. I don’t see any compelling reasons to break from the recommended approach, and CDD is in agreement. DOER will select municipalities to participate on a rolling basis. More than ten communities have already signaled an interest including Boston, Somerville, Brookline, Lexington, Watertown, and Salem. Watertown and Brookline have even already adopted the Specialized Code. Other communities that have expressed interest like Newton and Arlington may not be eligible due to the housing requirements. It remains to be seen which and how many municipalities will meet the eligibility criteria, but Cambridge should move quickly to secure our spot. We were one of the first 2

ten to submit a home rule petition, but Boston and Somerville were outside of the top ten and one of them could replace us if we delay for too long. Specifics of the Specialized Code The Specialized Code creates higher energy efficiency requirements for new buildings and major 1 renovation just like the Stretch Code, but it goes even further to require net zero construction, defined as achieving net zero emissions no later than 2050. It also specifies maximum allowed HERS ratings for the first time. The Home Energy Rating System (HERS) is a commonly used system for measuring the energy efficiency of buildings. The energy efficiency rating (HERS index) of the building is calculated as a single number. The higher the number, the more external energy the building consumes. A building that produces all the energy it consumes has a HERS index of zero. The maximum HERS ratings are to be achieved through either the Passive House standard or one of the following three pathways: 1. Zero Energy Pathway - The building produces all the energy it uses, for example via solar panels. Maximum HERS of 0 . 2 2. All-Electric Pathway - The building has no on-site fossil fuel combustion. Maximum HERS of 45. 3. Mixed-Fuel Pathway - The building has some on-site fossil fuel combustion, but is pre-wired to achieve conversion to all electric in the future. Maximum HERS of 42. The Specialized Code has additional provisions to address the complexities of reducing emissions in larger buildings, but still essentially requires the building to use one of the three pathways above: Zero Energy, All-Electric, or Mixed-Fuel. So to put it all together, the Demonstration Program will allow ten communities to adopt an ordinance that modifies the Specialized Code described above by eliminating option 3, the Mixed-Fuel Pathway, for most new development. It is important to point out that developers would still be able to choose between the Zero Energy Pathway and the All-Electric Pathway even in a community participating in the Demonstration Program, and that “Research Laboratories for Scientific or Medical Research, Hospitals or Medical Offices” are carved out from the Demonstration Program entirely and would therefore still be allowed to choose between all three. 2 The maximum HERS includes the contribution of the onsite renewable energy systems. When not including those, the maximum HERS is 45 for an all electric building. 1 The Specialized Code is the combination of Appendix RC of 225 CMR 22 (Low rise residential) and Appendix CC of 225 CMR 23 (all other buildings) and must be adopted as a whole package. 3

Cambridge’s Process The following table summarizes our process, including steps we’ve completed and where we need to go next. Step Implications/Notes Council files home rule petition Home rule petition adopted unanimously in December 2021. Representative Connolly filed the petition as bill H.4705 in April 2022. City analysis of housing production and zoning requirements Cambridge easily meets these requirements and further zoning changes are being contemplated to, for instance, eliminate single family-only zoning where it exists. Council adopts the Specialized Code DOER recommends that the code take effect a minimum of six months after adoption, and that municipalities choose an effective date of either July 2023 or January 2024 to allow for a smooth transition. If the Council adopts the code in January 2023, it would take effect in July 2023. If the Council adopts anytime after January 2023, it wouldn’t take effect until January 2024. Council adopts the Fossil Fuel Free Ordinance Draft language amending the Specialized Code, based on DOER guidance, is included below. FFFO would take effect in January 2024, provided DOER selects Cambridge to be in the Demonstration Project. City Manager submits Cambridge’s application for participation in the Demonstration Program The City Manager cannot apply until the Fossil Fuel Free Ordinance is ordained (and the ordinance cannot be ordained until the Specialized Code is adopted). DOER is required to finalize the regulations for how to apply by July 2023. My strong preference is to adopt the Specialized Code this January so that Cambridge can remain at the forefront of the transition and have the best possible chance of getting accepted into the Demonstration Program. We have been on the journey toward fossil fuel free buildings ever since we became one of the first communities to adopt the original stretch code back in 2009, and we should check these boxes as quickly as possible so that our staff have what they need to submit a successful application. 4

Accordingly, I will soon be engaging with staff and colleagues to finalize initial draft language so that we can consider the ordinance component as soon as possible. In combination with the other important work we are doing on climate change, joining the demonstration program will allow Cambridge to continue leading in the fight against climate catastrophe, inspiring other communities across the globe to take strong action, and giving us a chance to ensure a sustainable future for generations to come. Sincerely, Quinton Y. Zondervan Cambridge City Councillor 5