San Francisco staff outline push to require all‑electric systems during major building renovations

San Francisco Department of the Environment staff on March 25 outlined a proposal to require all‑electric heating, hot water, cooking and other systems when buildings undergo major renovations.

Cindy Comerford, the department’s climate program manager, framed the proposal as an extension of the 2021 new‑construction ordinance to so‑called gut rehabs and major renovations. Senior staff said the rule would apply when a renovation includes a substantial upgrade of mechanical systems or when the work reaches defined thresholds such as reconfiguring two‑thirds of interior space or investing more than 50% of pre‑construction value.

"A major renovation is an alteration or an addition to an existing building that includes a substantial upgrade in mechanical systems," Barry Hooper, senior green built environment coordinator, told the commission as he walked through draft definitions and exceptions. Hooper said existing feasibility exceptions would be preserved for energy code conflicts, lack of utility capacity and physical constraints; a narrow exception for certain commercial cooking was also proposed.

Staff argued the timing of a major renovation is the lowest‑cost moment to switch to electric equipment because owners are already replacing systems. Nick Kessner, senior building decarbonization coordinator, described complementary municipal work: a municipal equipment inventory and a replacement‑time policy that requires electric alternatives when departments replace natural‑gas equipment.

The department also previewed the Climate Equity Hub, a suite of resources that will include a decarb planning "concierge," workforce development measures and a direct‑install pilot to place heat‑pump water heaters at no cost for low‑income residents. Kessner said the department plans online and in‑person resources and outreach to community organizations, hardware stores and PTA meetings to raise awareness.

Commissioners and staff said stakeholder outreach has been extensive: a Building Operations Task Force that meets monthly, focus groups with affordable‑housing developers, tenant‑advocate surveys and targeted outreach to contractors, business groups and utilities. Staff cited recurring concerns among stakeholders — preserving affordable housing, protecting tenants from cost burdens, ensuring access to incentives and preparing a diverse workforce — and said the draft definitions were refined to avoid unintentionally capturing projects that do not present a net‑new cost compared with new construction.

Commissioners asked about keeping the policy current as technology changes. Kessner said staff track national and regional technical working groups, exchange lessons with other cities and maintain channels with agencies such as the Department of Building Inspection. On the question of electric service upgrades, he said SFE will provide clearer guidance: "It is a myth that it is always necessary to upgrade your electric service when electrifying," Kessner said, adding that PG&E participates in the task force and recent state legislation seeks to shorten the timeline for service upgrades.

Next steps outlined by staff include additional outreach (including a Chinese media roundtable and meetings with the Chinese Chamber of Commerce) and refining language for a legislative sponsor to carry the amendment at the appropriate legislative body.