San Luis Obispo staff asks council to pursue phased retrofit rules, building performance standards and a Home Energy Score pilot

City staff presented a study session July 15 asking San Luis Obispo City Council for strategic direction on a three‑part policy framework to reduce emissions from existing buildings: energy‑efficiency requirements at the time of major additions and alterations, development of a building performance standard (BPS) for large buildings, and voluntary disclosure or time‑of‑sale policies.

Chris Reid, the city sustainability manager, and Bob Hill summarized staff work since a December 2023 study session and described six strategic next steps. Staff said emissions from existing buildings account for about 30% of community‑wide emissions and that current trends are not on track to meet the city’s target to halve building emissions by 2030. Reid said that while voluntary incentives have helped, they are unlikely by themselves to meet the goal.

On additions and alterations, staff recommended readopting a local energy‑efficiency requirement the council adopted for single‑family projects (applying to additions/alterations of 500 square feet or more) and refining the definition of “work area” to reduce ambiguity in plan review. Staff said the single‑family rule has been in effect since Jan. 1 and that one permit has already complied by installing an electric heat‑pump HVAC system.

For large buildings, staff outlined the case for a Building Performance Standard (BPS) that would set minimum performance targets for existing large buildings and require tracking, reporting and improvements over time. Staff said implementing a BPS is resource intensive, typically requiring dedicated administrative capacity, data systems and stakeholder support. The city is monitoring state activity on a potential statewide BPS and recommended using current staff capacity to complete foundational tasks (building inventory, outreach, grant monitoring) and return with a progress update by early 2027.

On time‑of‑sale policies, staff proposed joining a Bay Area‑backed Home Energy Score pilot (BayREN) as a voluntary disclosure pathway and returning with outcomes after one year to inform future action. Staff noted that if the city later required mandatory disclosure, some BayREN subsidies for score reports might not apply to regulatory compliance cases.

Staff set out alternatives for each area — for example, lowering the additions threshold or expanding the existing additions/alterations standard to multifamily and nonresidential buildings pending state cost‑effectiveness studies. The agenda report also noted the June 2025 passage of AB 130, which restricts some local building‑code amendments but includes an exemption the city believes may allow limited local measures to proceed; staff said they are monitoring developments.

Council members asked detailed questions about tradeoffs, tenant impacts and administrative workload. Several council members and public commenters urged the city to guard against “renoviction” risks for renters and to include exemptions or protections if mandatory time‑of‑sale or retrofit requirements are adopted. Slow Climate Coalition and the San Luis Obispo Chamber of Commerce both spoke during public comment: the climate group urged timely adoption and an evaluation loop; the Chamber supported a phased approach and recommended clearer permitting and education for businesses.

Council discussion produced a narrow request: staff was asked to include, as part of the planned fall return when the 2025 California Building Code adoption is considered, an analysis of whether attached accessory dwelling unit (ADU) square footage could be counted toward the additions/alterations threshold (subject to state ADU law). Council also directed staff to participate in the BayREN Home Energy Score pilot, pursue the readoption and clarification of the additions/alterations policy, and continue BPS preparatory work while seeking outside funding. Council did not take a formal vote on new requirements during the session; staff will return with draft ordinance language and a memo on ADU treatment concurrent with code adoption later in 2025.