Sacramento Climate Action and Adaptation Plan: A Compliance Guide for Building Owners

Sacramento’s Commitment To Sustainability

Sacramento is advancing its climate action goals through the Climate Action and Adaptation Plan (CAAP), which outlines strategies for reducing greenhouse gas emissions, improving energy efficiency, and transitioning to renewable energy. A key component of the CAAP is the implementation of Building Performance Standards (BPS), requiring large buildings to measure, report, and improve their energy and water performance.

The City of Sacramento aims to achieve carbon neutrality by 2045, with interim goals for reducing emissions by 40% by 2030. Buildings contribute significantly to citywide greenhouse gas emissions, making energy efficiency and electrification essential to meeting these ambitious targets.

Understanding Sacramento’s BPS regulations, compliance deadlines, and strategies for energy efficiency will help businesses avoid penalties while improving building performance and reducing operational costs.

What Are Sacramento’s Building Performance Standards?

The Building Performance Standards (BPS) are regulations that require large buildings to meet specific performance thresholds for energy efficiency, emissions reduction, electrification, and water conservation. The standards ensure that buildings progressively reduce their environmental impact while lowering energy costs and increasing sustainability.

Who Must Comply To Sacramento's BPS Regulations?

The BPS regulations apply to:

• Commercial buildings over 25,000 square feet.
• Multifamily residential buildings with 15 or more units.
• Public buildings owned by local or state agencies.

Exemptions To BPS Regulations

Some buildings may qualify for exemptions, including:

• Industrial buildings and warehouses primarily used for manufacturing.
• Historic buildings where compliance would cause undue hardship.
• Low-occupancy buildings with an annual occupancy rate below 50%.
• Properties with existing high-performance certifications, such as ENERGY STAR, LEED, or Net Zero Energy certifications.

Building owners seeking exemptions must submit documentation at least 60 days before reporting deadlines.

Benchmarking & Reporting Requirements

What Data Must Be Reported?

Building owners must track and submit annual energy and water consumption data using ENERGY STAR Portfolio Manager, a tool developed by the U.S. Environmental Protection Agency (EPA).

Required BPS Data Includes:

• Total energy and water consumption for the previous calendar year.
• Building characteristics, such as size and primary use type.
• ENERGY STAR score (if applicable).
• Energy Use Intensity (EUI) and Water Use Intensity (WUI).
• Total greenhouse gas emissions from on-site energy use.

Reporting Deadlines:

Building owners must submit benchmarking reports by April 1 of each year.

• Buildings 50,000 sq. ft. or larger – First report due April 1, 2025.
• Buildings between 25,000-50,000 sq. ft. – First report due April 1, 2026.

Failure to comply with reporting requirements may result in public listing as a non-compliant building and potential financial penalties.

Steps To Ensure Compliance With Sacramento’s BPS

1. Track Energy & Water Use

To comply with BPS, building owners must:

• Set up an ENERGY STAR Portfolio Manager account.
• Enter building characteristics, including square footage and usage type.
• Track 12 months of utility data for electricity, natural gas, and water.
• Submit the benchmarking report to the City of Sacramento by April 1 each year.

2. Conduct Energy Audits

Buildings with poor energy performance may be required to conduct an energy audit to identify inefficiencies. Audits assess:

• HVAC and mechanical systems.
• Building insulation and weatherproofing.
• Lighting and water usage patterns.
• Opportunities for electrification and renewable energy integration.

3. Implement Energy & Water Efficiency Upgrades

To improve energy performance and avoid future penalties, building owners should:

• Upgrade to high-efficiency HVAC systems.
• Replace outdated lighting with LED technology.
• Improve insulation and weatherproofing to reduce heating and cooling demand.
• Install low-flow water fixtures and smart irrigation systems.

4. Transition To Electrification

To align with Sacramento’s goal of reducing reliance on fossil fuels, building owners should:

• Replace gas-powered HVAC systems with electric heat pumps.
• Upgrade water heating systems to electric models.
• Implement building-wide electrification strategies to phase out natural gas use.

5. Invest In Renewable Energy

To offset energy consumption and meet emission reduction targets, buildings should:

• Install on-site solar panels to generate clean electricity.
• Participate in community solar programs.
• Purchase renewable energy credits (RECs) to offset emissions.

6. Utilize Available Incentives & Support Programs

Sacramento provides financial incentives and technical assistance to help building owners comply with BPS requirements, including:

• SMUD rebates and incentives for energy-efficient upgrades.
• California state and federal tax credits for renewable energy projects.
• Free training and resources on benchmarking and energy audits.

Why Compliance With BPS Matters For Businesses

1. Reduce Operating Costs

• Energy-efficient buildings use less power, leading to lower utility bills.
• Water conservation measures reduce monthly operating expenses.

2. Avoid Compliance Penalties

• Non-compliant buildings may face financial penalties for failing to meet performance targets.
• Sacramento’s BPS will tighten performance requirements over time, increasing compliance costs for delayed upgrades.

3. Increase Property Value & Tenant Demand

• Sustainable buildings attract tenants looking for cost-effective spaces.
• Energy-efficient properties have higher resale value and long-term market appeal.

4. Improve ESG & Sustainability Efforts

• Meeting BPS requirements aligns with corporate Environmental, Social, and Governance (ESG) goals.
• Demonstrating sustainability leadership enhances reputation and investor confidence.

Preparing For BPS Compliance In Sacramento

To stay ahead of compliance requirements, building owners should:

• Track and report energy and water performance annually through ENERGY STAR Portfolio Manager.
• Invest in efficiency upgrades to improve benchmarking scores.
• Explore renewable energy and electrification options.
• Utilize city incentives and technical support to offset costs.

Sacramento’s Climate Action and Adaptation Plan plays a key role in reducing emissions, cutting energy waste, and promoting sustainability. By actively participating in benchmarking, property owners can enhance building performance, reduce costs, and contribute to Sacramento’s climate goals.