California Construction News staff writer
California’s construction industry will see significant changes starting Jan. 1, 2026, due to new building standards from the California Energy Commission (CEC). The updated code aims to boost the adoption of all-electric appliances and heat pumps, aligning with the state’s climate goals.
The CEC describes the new code as a crucial step toward reducing carbon emissions from buildings, which are a major source of greenhouse gases.
“The 2025 Energy Code extends California’s leadership in building a sustainable environment through innovative technologies,” said Commissioner J. Andrew McAllister, lead commissioner for energy efficiency at the CEC.
The new standards are expected to save about $5 billion in energy costs and cut four million metric tons of carbon emissions over three years. A significant part of these savings will come from installing about 500,000 heat pumps, which are more energy-efficient than traditional gas-powered systems.
The code does not ban gas appliances, but sets higher efficiency standards for new homes and encourages heat pump use.
It also requires replacing outdated large rooftop HVAC systems in commercial and institutional buildings with high-efficiency systems, which may include heat pumps.
California aims to reach carbon neutrality by 2045. Buildings account for about 25% of the state’s carbon emissions, primarily from gas appliances. The CEC also aims to increase the number of homes with electricity-powered heat pumps to 6 million by 2030, up from over 1 million now.
For more information, view the Fact Sheet and learn more at the 2025 standards webpage.
