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Indeed. The Bay Area is one of the most environmentally friendly areas to live for this reason.

Economist Ed Glazer makes the argument that by not allowing more housing to be built there, more people have to live in more energy consumptive locations (Houston, for example). Housing development policy of the Bay Area has a big environmental impact.

The climate also calls for AC for 3 months of the year if not more. And, compared to Europe, they actually have ACs.

How do they not have AC in the bay area? That seems highly implausible.

Coastal regions tend to have more stable temperatures than inland regions in general due to closer proximity to the ocean (large bodies of water tend to be slow to heat up and slow to cool down). The Bay Area is no exception.