The City of Berkeley has frequently pioneered environmental policies that have spread across the country. Its latest example is a Building Emissions Saving Ordinance (BESO) that went into effect this past January. Single-family homes account for 58 percent of U.S. building emissions. In 2006, Berkeley set a target of 80 percent reduction in greenhouse-gas emissions by 2050. Since buildings are the second-largest source of carbon emissions after transportation, there have been many efforts in California and elsewhere to make buildings cleaner and more energy-efficient.
In 2019, Berkeley became the first community in the country to ban natural gas hookups in new construction. Many other jurisdictions, including Santa Barbara, promptly took similar action. This approach was thwarted, however, when the California Restaurant Association successfully sued to halt the ban.
Following this disappointing setback, efforts intensified to find ways to improve the energy performance of older homes. The Berkeley BESO ordinance now requires sellers and buyers of homes to replace fossil-fuel appliances or make other green upgrades as a condition of sale. Some municipalities require home sellers to obtain and disclose the results of energy audits to encourage adding voluntary efficiency features. Improvements, however, have been paltry to date.
To increase the rate of retrofits, Berkeley is not only requiring audits as part of home sales but mandating that climate-friendly features be performed. BESO gives credit for a home’s low-carbon systems. A minimum score of six credits is required. The menu includes heat pumps for heating/cooling and for hot water worth six credits each. The same for upgrading a home’s electrical system to make it heat pump ready. Solar panels and batteries achieve three credits each if installed within the last five years. Two credits are given for an EV charger, induction stove, or a heat pump clothes dryer.
At time of sale, an energy audit is required and must be disclosed in the real estate multiple listing service. Currently, the sale of all single-family dwellings and duplexes fall under the ordinance. In 2028, three-and four-unit properties will have to comply. Sellers must make upgrades prior to sale or set up an escrow account of $5,000 for the buyer to make the improvements within two years. The sum gets forfeited if the two-year deadline is not met.
Already the mandate is changing the dynamics of the housing market. One broker said, “Homes that are already electrified will be perceived as more move-in ready. Homes that defer everything effectively carry a hidden cost that informed buyers will factor into their offers.”
Santa Barbara has a lot of old, inefficient housing so would do well to study Berkeley’s mandate and consider it for our community.
