City of Berkeley Adopts Mandatory Time-of-Sale Upgrades Ordinance
The reach codes program is updating the residential fact sheet with a comprehensive overview of the new 2022 CALGreen requirements for EV charging for all new construction.
The City of Berkeley recently updated its innovative time-of-sale ordinance requiring building emissions and resilience upgrades, leveraging decades of experience with its Residential Energy Conservation Ordinance (RECO) and prior Building Emissions Saving Ordinance (BESO).
Originally adopted in 2015, the Building Emissions Saving Ordinance (BESO) requires building owners and homeowners to complete and publicly report comprehensive energy assessments to uncover energy and greenhouse gas emissions saving opportunities. Registered energy assessors conduct the assessments, and provide tailored recommendations on how to save energy and eliminate fossil fuels. They also link building owners to incentive programs for energy efficiency and electrification upgrades. Under the original BESO, these energy efficiency improvements and electrification recommendations were encouraged but not required.
The most recent ordinance, adopted April 15, 2025, creates mandatory yet flexible compliance pathways for single-family homes, duplexes and three- and four-unit structures.
Under the new ordinance, the seller of a property must conduct the BESO assessment (the Home Energy Score (HES) program) at the time of listing. A deposit of $5000, split between the seller and the buyer, is placed in an escrow with the City. The buyer then has up to three years to complete upgrades based on the recommendations outlined in the HES (additional extensions may be granted). Once the property is deemed compliant, the escrow deposit is refunded to the buyer. In the event an escrow deposit is forfeited, the funds are used for low-income electrification programs.
The City provides a wide range of upgrade options, each with a corresponding credit value, to achieve compliance. The property owner has the flexibility to pursue the specific options most relevant to them in order to achieve the minimum number of credits. These include heat pump water heaters or HVAC; EV charging equipment; energy efficiency and envelope improvements and more. In order to incentivize early compliance, the policy provides an exemption for buildings that have significantly decreased emissions by installing at least one heat pump system for water heating or space heating.
“The City spent more than two years developing this framework,” notes Ammon Reagan, BESO Program Coordinator in Berkeley’s Office of Energy and Sustainable Development. “We really analyzed the lessons learned from prior programs and collaborated intensively with technical experts and stakeholders to craft a pragmatic and flexible approach.”
The City included a phased implementation timeline, with Phase I focusing on compliance for single-family homes and duplexes beginning in 2026, and Phase II focusing on compliance for 3- and 4-unit properties beginning in 2028.
For more information, visit the City of Berkeley’s BESO webpage. For specific questions, email Ammon Reagan.
Image courtesy of City of Berkeley
