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Climate and Sustainability Planning

New Construction Electrification

Building electrification is a key greenhouse gas emission reduction strategy identified in the City’s Climate Action & Adaptation Plan. 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 all-electric new buildings. All-electric construction is cost effective in Sacramento, and SMUD’s affordable utility rates make all-electric new buildings less costly to operate than mixed-fuel buildings.

Implementation Successes and Challenges

The City of Sacramento’s New Building Electrification Ordinance, which took effect on January 1, 2023, required new buildings with three stories or fewer to be all-electric, with a few specific exceptions. However, in April 2023, a court ruling reversed an earlier decision in a lawsuit between the California Restaurant Association and the City of Berkeley, ruling that Berkeley’s similar ordinance conflicted with the Federal Energy Policy and Conservation Act (EPCA). Berkeley’s request to reconsider the decision was denied in January 2024. Sacramento suspended enforcement of its electrification ordinance following the decision.

In February 2024, Sacramento adopted the Climate Action & Adaptation Plan, which includes Action E-2.1: Develop and adopt an ordinance that reduces energy use and GHG emissions in new construction through an Energy Policy and Conservation Act (EPCA) compliant flexible path reach code, requiring newly constructed buildings to exceed the State Building Energy Efficiency Standards.

City staff plans to develop reach codes in 2025, aiming for adoption with the updated 2025 California Building Standards Code to go into effect January 1, 2026. Visit our Climate Friendly Buildings Page for resources and incentives for all-electric construction.

Cost effectiveness studies

View the local energy codes website

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