Council adopts emergency building-code amendments to preserve local reach-code gains; AC-to-heat-pump rule delayed to 2027

The Palo Alto City Council unanimously adopted emergency local amendments to the municipal building code to preserve local reach-code elements and make administrative clarifications required by state timing rules.

Staff said the expedited action was necessary because of state legislation (AB 130) that temporarily limits certain local changes to residential building standards unless cities take timely steps. Palo Alto’s emergency ordinance reestablishes two climate-oriented local amendments and clarifies two administrative definitions so the city may carry the rules forward in the upcoming code cycle.

Key changes adopted

- Air-conditioner replacement rule (effective 2027): The ordinance requires that, beginning in 2027, when a home’s air conditioning is replaced the project must either install a heat pump sized to be the primary heating source for the home or implement a suite of energy-efficiency measures (attic insulation, air sealing and other options). Timothy Scott, resource planner, described the rule as a way to “future proof” homes so customers who replace equipment will be better positioned for forthcoming appliance regulations.

- Remodel flex path (1,000 sq. ft. threshold): Remodels larger than 1,000 square feet must meet a 12-point standard by selecting measures from a flexible list (measures have point values that vary by building vintage and by the anticipated energy savings). Scott told the council that many compliance pathways are cost-effective and that the points system is intended to encourage electrification while providing options for homeowners.

- Administrative clarifications: The ordinance also updates local amendments to the California Building Code to clarify when certificates of occupancy are required and to align definitions of residential net and gross floor area with the city’s zoning code (Section 18.04.030) and the ADU ordinance passed earlier in the year.

Why it matters

The measures preserve the city’s local reach-code authority and maintain pathways that encourage electrification of space and water heating — a key element of Palo Alto’s Climate Action Plan. Staff stressed the city will return with additional reach-code items in October and that some future code changes will need cost-effectiveness studies before adoption for new construction.

Public comment and committee review

The Climate Action & Sustainability Committee had reviewed the proposals; the staff report noted a unanimous recommendation in favor of the two energy-code amendments. A Sierra Club representative told council the organization strongly supported adoption and thanked staff for meeting the October 1 state filing deadline.

Vote and implementation

- Motion: Adopt emergency ordinance updating local building-code amendments (staff recommendation). - Mover: Vice Mayor Venker. - Second: Council Member Burt. - Vote: Unanimous (7–0). - Outcome: Emergency ordinance adopted; staff will return in October with additional code changes and in 2026 with related items requiring cost-effectiveness work.

Quote

"Beginning in 2027, we require air conditioner replacement projects to either implement additional energy efficiency measures…or install a heat pump at the time of replacement upgrade of an AC unit," Timothy Scott, resource planner, told the council during the presentation.

Next steps

Staff will file the adopted local amendments with the state agencies before October 1, 2025, then return with a fuller package of code updates in October for the 2025 code cycle. Additional new-construction measures that require cost-effectiveness analysis will be considered in 2026, per staff’s timeline.

Speakers and attribution whitelist

- Jonathan Aubenstein — Assistant Director for Climate Action (presenter) - George Hoyt — Chief Building Official (planning/building presenter) - Timothy Scott — Resource Planner, Utilities (energy/reach-code presenter) - Madeline Szilard — Deputy City Attorney (legal context) - Dasha Leeds — Sierra Club representative (public comment)

Authorities

- AB 130 (state budget trailer bill) — referenced by staff as creating timing constraints for adopting residential code amendments (type: statute). - SB 103 (2022) — referenced procedural context for SB1 03 exemptions related to code cycle timing (type: statute).

Provenance

- topicintro: staff introduced the item at the building-code presentation segment and explained the October 1 deadline; transcript block begins with the agenda item introduction. - topfinish: the item concluded with a unanimous council vote adopting the emergency ordinance.

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