Action 2-3 · BO

By 2027, update the Residential Energy Conservation Ordinance (RECO) to modernize efficiency requirements, incorporate building decarbonization at time of sale, and align property transactions with the City's climate and public health goals.

Timing: By 2027
Lead departments: SF Environment SF Department of Building Inspection
Strategy: Eliminate the use of fossil fuels in existing buildings.
Group: Policies & Permitting
In the plan: Page 49 of the published PDF

Implementation status

Departments report status each January through the City's monitoring, evaluation, and reporting cycle. The first report on the 2026 plan covers calendar year 2026. Status, milestones, and notes will appear here.

In the emissions model

Appendix D models this action as part of Residential Time of Property Sale Policy, one of the buildings strategies expected to cut that sector's emissions 68% below 1990 by 2030 and 93% by 2040.

Per-action tonnage is not published; the model reports impacts by sector. See the emissions trajectory.

Racial and Social Equity ReviewWhat the equity review said about this strategy

Equity impacts

EJ communities face greater economic barriers in the transition to decarbonized existing buildings and need a tailored suite of solutions. Low-income homeowners may be unable to afford system upgrades and face greater economic burdens to support this strategy. Slower adoption of decarbonized systems in existing buildings, due to these barriers, will prolong exposure to poor indoor air quality—a known cause of respiratory illnesses— and deprives them from the resiliency benefits as well. Decarbonizing existing buildings could also greatly impact the affordability of housing, potentially leading to displacement without careful mitigation measures.

Recommendations

EJ communities need a tailored approach to overcome the financial barriers in the transition, and it would be beneficial to monitor the implementation of building decarbonization projects to ensure the benefits of the program are first felt in EJ communities whenever possible.
Explore entrepreneurial opportunities that exist in the transition to decarbonize existing buildings for EJ communities, to potentially mitigate some of the financial burden on EJ communities.
Target trainings to EJ communities that demonstrate methods to install HPWHs (heat pump water heaters), creating entrepreneurial opportunities.
Prioritize action BO 2-5 to focus on EJ communities and launch financial support programs for low-income households.
Continue outreach and education on building decarbonization in partnership with CBOs (community-based organizations) to share culturally relevant information to promote and facilitate decarbonization.

Suggested edit to the draft

Suggest adding the following as action: "Increase outreach to EJ communities about the benefits of electrification and existing tenant rights and protections available to them using various methods, including use of the existing city notification processes, establishing decarbonization projects as a trigger for tenant engagement."

Adopted in the final plan. Became action BO-2-7 (expand city notification processes to engage renters about electrification benefits and tenant protections).

Source: 2026 Climate Action Plan, Appendix C. Adoption status is our reading of the final text, pending SFE confirmation.