2025 California Title 24 is in Effect as of January 1st 2026: Here’s What Commercial Building Owners and Facility Managers Need to Know
As of January 1, 2026, California’s latest Title 24 Energy Code updates are officially in place. If you manage or own a commercial building, you are most likely already aware that these changes will affect how you plan upgrades, replacements, and long-term maintenance.
Overview
The 2025 Title 24, part 6 Energy Code pushes buildings to be more efficient while supporting California’s climate and clean air goals, without sacrificing building comfort or performance.
The California Energy Commission predicts that these changes will save $4.8 billion in energy costs over 30 years and reduce greenhouse gas emissions by 4 million metric tons. Considering that buildings account for about 25% of California’s total emissions, it makes sense that standards are continuing to tighten for commercial buildings.
Key Components of the 2025 Title 24, part 6 Energy Code for Commercial Buildings
High-Efficiency Systems
Overall, better-performing systems that have less reliance on fossil fuels are encouraged, such as the expanded use of heat pumps in select newly constructed commercial buildings.
According to the California Energy Commission, the new code also requires certain end-of-life rooftop HVAC units in retail, schools, offices, and libraries to be replaced with high-efficiency systems. This can mean replacing systems with heat pumps, but it’s important to note that replacing existing gas units with gas equipment is still permitted given not all buildings have sufficient electric service to permit this change.
HVAC Control Standards
The updated code incorporates high-performance control strategies as well based on ASHRAE Guideline 36, meaning HVAC systems are expected to run smarter. (2025 Energy Code Overview).
Increased Building Envelope Efficiency
The latest code tightens building insulation and envelope performance requirements to prevent energy loss and improve overall system performance. Standards are reinforced for ceilings, walls and windows- because even the smartest HVAC system can’t overcome a poorly performing building shell.
Electric-Ready Commercial Kitchens
For commercial kitchens, “electric-ready” requirements are in place so that future appliance upgrades are easier when the time comes.
What Does This Mean for Building Owners and Facility Managers?
For facility managers and building owners, the biggest changes often show up when equipment needs to be replaced. When systems reach the end of their life, especially in buildings like offices, schools, and retail spaces, you’ll likely need to install higher-efficiency equipment instead of simply replacing with something similar. In some cases, that means installing heat pumps.
In addition, how your systems operate matters just as much as what you install! With updated control standards like ASHRAE 36 coming into play, systems are expected to run smarter and more efficiently day-to-day. That means proper setup, commissioning, and ongoing maintenance are more important than ever.
Being Proactive Pays Off
When it comes to mechanical upgrades or replacements, being proactive instead of reactive will help you in the long term. Waiting until a unit fails could limit your options, delay repairs, and increase costs. Evaluating your systems early to plan for a replacement ahead of time gives you more control over your budget and timeline.
At the end of the day, these updates aren’t just about compliance- they’re a great opportunity to lower energy bills, improve system performance, and provide better comfort for your tenants and building occupants.
Expert Commercial HVAC Contractors in Sacramento
At Cooper Oates, we help commercial facilities across Sacramento navigate compliance and code updates with practical solutions. Whether you’re planning an HVAC upgrade, need help evaluating your system’s performance, or are looking for a routine maintenance contract, our team is here to help.
Call Cooper Oates at 916-381-4611 or contact us today. With the right mechanical partner, compliance doesn’t have to be a headache.
Additional Resources:
https:/www.energy.ca.gov/sites/default/files/2024-12/2025_Energy_Code_Summary_ADA.pdf?utm_\