Building Performance Standard Model Ordinance

This report recommends the Council Sustainability Committee explore a local Building Performance Standard (BPS) model ordinance for Hayward, targeting existing commercial and multifamily buildings 20,000 square feet or larger. This initiative aligns with Hayward's Climate Action Plan, aiming to reduce building-related greenhouse gas emissions, which currently account for 32% of community-wide GHG. The proposed ordinance, based on the California BPS Peer Learning Collaborative model, would cover 30.8% of Hayward's buildings, representing 69% of building-related emissions.

The BPS policy would implement a two-phase approach: an initial five-year period of mandatory benchmarking (tracking Greenhouse Gas Emissions Intensity, Site Energy Use Intensity, and potentially Water Use Intensity) followed by the introduction of interim performance targets every five years, leading to a final net-zero emissions goal by 2045 or 2050.

To ensure feasibility, the model ordinance includes flexible compliance pathways such as temporary exemptions for financial hardship or low occupancy, individual trajectory options (e.g., 20% reduction over five years), short-term extensions, and custom compliance plans. Special provisions, including up to 15-year extensions, are available for regulated affordable housing. Enforcement would prioritize education and technical assistance, with non-compliance fees and alternative compliance payments funding a Building Performance Fund, dedicating at least 50% to under-resourced properties.

Fiscal impacts are projected to be offset by cost-recovery fees, estimated at $100-$200 per building annually for Hayward's 919 covered buildings, avoiding reliance on the General Fund. Case studies demonstrate significant savings, such as a $715,000 retrofit yielding 11% annual electricity savings for affordable housing, and a university building achieving a 26% drop in whole-building energy use for $11 per square foot. The Committee will decide whether to actively explore this local ordinance or await the State's broader BPS strategy.