Santa Monica Building Performance Standard: What Businesses Need to Know

Santa Monica is leading the way in sustainable building policies by strengthening its energy regulations through a new Building Performance Standard (BPS). This initiative is part of the city’s commitment to reducing greenhouse gas emissions, increasing energy efficiency, and transitioning buildings away from fossil fuels.

If you own or operate a commercial or multifamily building in Santa Monica, these new regulations will directly impact you. The city has repealed its Zero Emission Building Code and introduced local amendments to California’s Energy Code (Title 24, Part 6) to push for building electrification, energy efficiency, and climate resilience.

This article breaks down the compliance requirements, how businesses can prepare, and why these changes matter for your operations and bottom line.

Who Must Comply With Santa Monica’s Building Performance Standard?

Santa Monica’s BPS applies to commercial, multifamily, and nonresidential buildings. If your business falls into any of these categories, you will need to meet new requirements related to energy efficiency, electrification, and emissions reduction.

Which Buildings Are Affected?

• Commercial buildings (offices, retail spaces, mixed-use properties).
• Multifamily residential properties (apartment complexes, condominiums).
• Hotels and motels.
• Industrial and manufacturing facilities.
• Restaurants and commercial kitchens.

Newly constructed buildings must follow strict electrification requirements, while existing buildings undergoing major renovations or equipment replacements may also be required to upgrade their energy systems.

Key Requirements Under Santa Monica’s BPS

Santa Monica’s amendments to California’s Energy Code (Title 24, Part 6) focus on reducing emissions from buildings and eliminating reliance on natural gas. These updates affect HVAC systems, water heating, lighting, and energy use thresholds.

1. Electrification Mandates

Santa Monica requires new commercial and multifamily buildings to be fully electric, eliminating natural gas infrastructure for heating, cooking, and water heating. Businesses must install:

• Electric heat pumps for space heating and cooling.
• Electric water heating systems.
• Energy-efficient electric kitchen appliances in commercial kitchens.

2. Building Energy Efficiency Requirements

Businesses must ensure that new and existing buildings undergoing renovations meet Santa Monica’s stricter energy efficiency targets, including:

• Lower energy consumption per square foot.
• Time-dependent valuation (TDV) energy budgets.
• High-performance insulation, windows, and building materials.

3. HVAC & Water Heating Upgrades

Santa Monica’s ordinance enforces stricter efficiency standards for HVAC systems and water heaters:

• Commercial HVAC systems must use electric heat pump technology.
• Water heating systems in multifamily and commercial buildings must transition from gas-fired systems to electric alternatives.

4. Electric Readiness Requirements

For buildings that are not yet fully electric, Santa Monica requires electric readiness provisions to ensure future compliance. This means:

• Dedicated electrical panels and circuit capacity for future electric appliances.
• Pre-wired infrastructure for heat pumps and electric water heaters.
• Clear pathways for ductwork and equipment placement in new construction and major renovations.

5. Compliance Deadlines & Enforcement

Santa Monica’s BPS sets clear deadlines for buildings to comply with these new regulations. While the final compliance deadline extends to 2050, there are interim targets for 2030 and 2040.

Failure to comply with energy performance benchmarks may result in:

• Fines and penalties for non-compliance.
• Mandatory retrofits for buildings that fail to meet efficiency targets.
• Ineligibility for sustainability incentives or certifications.

How To Prepare For Santa Monica's BPS Compliance

Businesses should take proactive steps to assess their energy use, upgrade equipment, and integrate energy management systems to ensure compliance.

1. Conduct An Energy Audit

Start by analyzing your building’s current energy consumption. An audit will help you identify:

• Where energy is being wasted.
• Which systems need upgrading.
• How to improve building performance.

2. Upgrade To Electric Heating & Cooling

Transitioning away from natural gas HVAC systems is now mandatory for new buildings. Consider:

• Installing high-efficiency electric heat pumps.
• Replacing outdated gas boilers and furnaces.
• Integrating automated HVAC controls for better efficiency.

3. Optimize Energy & Water Efficiency

Santa Monica’s regulations push for smarter energy and water use. Key steps include:

• Upgrading lighting systems to LED and motion-sensing controls.
• Sealing and insulating buildings for better temperature control.
• Installing smart water heating systems to reduce unnecessary energy use.

4. Invest In Energy Monitoring & Compliance Tools

To meet the BPS targets, businesses must track and optimize their energy consumption. Energy management software can help:

• Monitor real-time energy data.
• Identify inefficiencies and savings opportunities.
• Ensure compliance with new energy standards.

5. Take Advantage of Incentives and Rebates

Santa Monica and California offer financial incentives to support businesses in transitioning to energy-efficient, all-electric buildings.

• State and local grants for electrification projects.
• Tax credits for energy efficiency upgrades.
• Rebates for installing high-performance electric HVAC and water heating systems.

Why Early Compliance With Santa Monica’s BPS Is A Smart Business Move

Complying with Santa Monica’s Building Performance Standard isn’t just about avoiding penalties it’s about future-proofing your business.

• Lower energy costs: Upgrading to efficient electric systems reduces long-term utility expenses.
• Sustainability leadership: Meeting BPS requirements demonstrates a commitment to sustainability, appealing to customers and investors.
• Regulatory preparedness: With statewide electrification policies expanding, early compliance ensures a smooth transition.

Staying Ahead of Santa Monica’s Building Performance Requirement

Santa Monica’s updated Building Performance Standard is a game-changer for commercial and multifamily building owners. With strict electrification mandates, energy efficiency targets, and penalties for non-compliance, businesses must act now to stay ahead.

By conducting energy audits, upgrading HVAC and water heating systems, and leveraging energy management tools, you can ensure compliance, reduce costs, and improve building performance.

Staying informed and taking proactive steps today will set your business up for long-term success in Santa Monica’s evolving energy landscape.