New Construction Electrification

Building electrification is a key greenhouse gas emission reduction strategy identified in the City’s Climate Action & Adaptation Plan. Statewide, all-electric new construction leverages SB100, which mandates that electric utilities in California provide carbon neutral electricity by 2045 to reduce greenhouse gas emissions and air pollution from burning fossil fuels in vehicles and inside buildings. SMUD’s 2030 Clean Energy Vision, which sets a goal of reaching zero carbon emissions from the electric power supply by 2030, will enable Sacramento to realize the climate and air quality benefits of constructing new buildings all-electric even sooner.

Implementation Successes and Challenges

The City of Sacramento’s New Building Electrification Ordinance went into effect on January 1, 2023, requiring buildings three stories or less to be all electric, with some limited exemptions. In April 2023, the Ninth Circuit Court of Appeals reversed a decision in a lawsuit between the California Restaurant Association and the City of Berkeley, finding that the City of Berkeley’s New Building Electrification Ordinance was preempted by the Federal Energy Policy and Conservation Act (EPCA). The City of Berkeley’s petition for the case to be reheard ‘en banc’ was denied by the 9th Circuit Court of Appeals in January 2024. As a result, the City of Sacramento has suspended enforcement of the New Building Electrification Ordinance.

All-electric new construction continues to be feasible and cost effective in Sacramento. There are resources and incentives to support builders in shifting to all-electric construction.

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