A Practical Guide to California’s Building Energy Compliance Landscape (2026)
Did you know that California is one of the most active regions in the United States for enforcing energy laws? In fact, as we propel into 2026, the state is reshaping how commercial property owners operate their buildings and report energy use. It is becoming harder and harder for these buildings to be compliant with the state’s energy regulations. Understanding this evolving compliance landscape is essential for building owners who want to avoid penalties, reduce costs, and make smarter operational decisions. Bhat’s what were here for
This guide breaks down key compliance programs — why they exist, what they require, and how owners can stay ahead.
Why California Is Leading the Charge
Buildings—especially large ones—account for a significant share of a region’s energy use and greenhouse gas emissions. To meet state climate targets and reduce waste, California has implemented aggressive policies that go beyond simple reporting. Instead, programs now require measurable performance improvements in addition to annual energy transparency.
At the core of this shift is the idea that better data leads to better decisions. Better decisions lead to lower costs, fewer penalties, and higher building value.
Key Programs You Need to Know
1. San Francisco – Existing Buildings Ordinance (EBO)
San Francisco’s EBO targets commercial and large residential buildings (10,000 square feet or more) with two pillars:
Annual Benchmarking
Buildings must report energy use annually via ENERGY STAR Portfolio Manager.
Periodic Energy Audits
At least once every five years, buildings must complete energy audits. The depth of the audit varies by building size and type.
Upcoming focus:
The city of San Francisco has an upcoming deadline of April 1st, when all audit and benchmarking submissions are due.
2. Los Angeles – EBEWE (Existing Buildings Energy and Water Efficiency)
The EBEWE Program is one of the most progressive in the country. It applies to commercial and multifamily buildings over 20,000 square feet and has two main requirements:
Annual Benchmarking
All building owners must submit benchmarking reports to the ENERGY STAR Portfolio Manager once a year.
Five-Year Audit + Retro-Commissioning (RCx)
Every five years, buildings must complete an energy audit (ASHRAE Level II or equivalent) and a retro-commissioning (RCx) study to identify efficiency opportunities. Owners then implement measures based on those findings.
With upcoming deadlines near, EBEWE should be on your mind. Penalties for non-compliance are real and rising, and the city handing out fines for late or incomplete submissions.
Why it matters:
The deadline for submitting an EBEWE audit and/or benchmarking is June 1st, 2026.
3. Berkeley – BESO (Building Energy Saving Ordinance)
Berkeley’s BESO requires benchmarking, energy audits, and energy savings targets for larger buildings. In contrast to the other programs, BESO has evolved to focus on statistical operational improvement rather than just reporting.
Berkeley also includes provisions tied to water use, which reflects the city’s broader environmental goals.
4. San Jose – Building Performance Ordinance (BPO)
San Jose’s BPO started as a benchmarking and audit requirement but has started to enforce fines for energy performance that was below the city’s standards. As the ordinance evolves, owners can expect:
A greater focus on actual results of energy performance
Performance or emissions thresholds
Different building types could have different regulations.
It’s not just about reporting energy use, it’s about how it’s managed.
5. Statewide Benchmarking – AB 802
California Assembly Bill 802 (AB 802) is a state law that requires buildings over 50,000 square feet to report energy usage to the California Energy Commission (CEC). AB 802 focuses on:
Annual energy usage reporting
Public access to certain building energy data
Aggregated statewide performance trends
AB 802 and local ordinances like EBEWE and EBO complement one another. In many cases, the same benchmarking data used for local compliance satisfies AB 802 requirements.
Why this matters:
Building owners with portfolios across multiple California cities can coordinate benchmarking to meet both local and state requirements, reducing duplication and effort.
Common Themes Across Programs
Though each city’s ordinance has unique elements, they share several core ideas:
Benchmarking is foundational
Benchmarking creates a standardized line owners can use to compare performance across their building’s life cycle. Owners can see how much their building is costing them compared to others in the state.
Audits drive insight, not just compliance
Energy audits reveal inefficiencies, operational gaps, and savings opportunities.
Retro-Commissioning enhances ongoing performance
RCx focuses on how systems are operating. If a system is faulty, it might be time for an upgrade.
Data quality matters
Incomplete or inaccurate data can lead to rejected reports and fines. Comprehensive data collection is essential.
Practical Steps to Stay Ahead in 2025–2026
Don’t worry. It’s not too late. We’ll help you benchmark your building.
1. Get benchmarking data right early
For your commercial building, some data that will be made public is:
Complete utility usage data for all of the building’s meters
Gross floor area and building classifications
Updated tenant and owner meter consolidation
2. Use benchmarking as a management tool
Benchmarking should not be a get and forget. Owners should:
Monitor trends month to month
Spot expensive hikes that are costing them money
3. Prioritize no-cost and low-cost improvements
Not all efficiency improvements are expensive. Common opportunities include:
Scheduling adjustments
Setpoint optimization
Control logic corrections
Fault detection and sensor recalibration
Missed Deadlines & Enforcement Reality
California cities are no longer lenient with enforcement. Building owners can expect:
Fines for late or missing submissions
Notices of violation
Re-submission requirements
Why This Matters Beyond Compliance
But meeting benchmarking and audit requirements is about more than avoiding penalties. It drives:
Lower utility costs
Better tenant comfort and retention
Improved asset value
Stronger investor confidence
Alignment with sustainability goals
When used smartly, compliance becomes a business advantage.
