Last week, Supervisor Mandelman introduced all-electric legislation that would require many buildings undergoing “major renovations” to convert to all-electric. The legislation would expand the City’s current prohibition on new construction of mixed-fuel buildings, which has been in place since 2021.
Under the proposed ordinance, after January 1, 2026, the Building Official can only accept permit applications to conduct major renovations for all-electric buildings or buildings that will be converted to all-electric. Should this legislation be approved, those seeking to perform major renovations that do not fall under one of the five exceptions below have until January 1, 2026 to submit and have DBI accept a building permit application, or the project will be subject to the new all-electric building requirements.
The legislation provides for the following exceptions to the all-electric requirement:
- Where it is physically or technically infeasible to convert to all-electric design;
- Projects that retain gas to serve a restaurant;
- Change of use projects from nonresidential to residential units. This exception expires after January 1, 2031;
- Where the building replaced or upgraded a major system fueled by natural gas within the last 5 years; or
- 100% affordable housing projects until January 1, 2027. Between January 1, 2027 and January 1, 2028, 100% affordable projects where the cost of converting to all-electric conflicts with the project’s ability to meet its housing goals will be exempt. This exception expires after January 1, 2028.
As we previously reported, the Ninth Circuit earlier this year struck down similar legislation in the City of Berkeley that prohibited the use of natural gas in newly constructed buildings, finding that the law was preempted by the Energy Policy and Conservation Act (“EPCA”). This proposed legislation would provide a carveout consistent with the Ninth Circuit’s decision, amending the definition of all-electric buildings to include buildings with natural gas infrastructure solely dedicated to serve appliances covered by the EPCA and that comply with the Department of Building Inspection’s design guidelines for electric-ready buildings. This new language appears to address the preemption issue for all-electric legislation.
The legislation is under consideration by several legislative bodies and is subject to change. We will continue to monitor as the City considers this proposed legislation.
Authored by Reuben, Junius & Rose, LLP Attorney, Kaitlin Sheber.
The issues discussed in this update are not intended to be legal advice and no attorney-client relationship is established with the recipient. Readers should consult with legal counsel before relying on any of the information contained herein. Reuben, Junius & Rose, LLP is a full service real estate law firm. We specialize in land use, development and entitlement law. We also provide a wide range of transactional services, including leasing, acquisitions and sales, formation of limited liability companies and other entities, lending/workout assistance, subdivision and condominium work.