This Fall, California cities are taking action to pass critical laws that will increase access to clean, efficient cooling and heating appliances for their residents, and more cities are ready to follow suit. These rules require outdated central air conditioning units to be replaced with heat pumps, efficient appliances that reduce energy demand, improve air quality and help California reach its climate goals.
Based on 2025 CALGreen building standards, cities and counties can adopt these rules to help lock in residential energy savings for decades to come. Sierra Club and other advocates are celebrating the adoption of "Air Conditioning to Heat Pump" (or"AC2HP" for short), laws to help reduce pollution from buildings across the state.
Cities are also moving forward to adopt other parts of the building code, including electric readiness and flexpath requirements, which are critical steps to ensuring a smooth transition off of fossil fuels in the coming decades.
Local Tracker - (Updated Dec. 12, 2025)
- Moreno Valley approved AC2HP reach codes on Aug. 20.
- Menlo Park approved AC2HP, flexpath, and electric readiness reach codes on Aug. 26.
- Sunnyvale approved AC2HP and electric readiness reach codes on Aug. 26.
- Ojai approved flex path reach codes on Aug. 26.
- Santa Cruz approved Flexpath and electric readiness reach codes on Sept. 9.
- Palo Alto approved AC2HP, electric readiness, and flexpath reach codes on Sept. 9
- Mountain View approved AC2HP and electric readiness reach codes on Sept. 9.
- The City and County of San Francisco approved all-electric requirements for major renovations on Sept. 9.
- Encinitas approved flexpath and electric readiness codes on Sept. 24.
- Oakland approved electric readiness reach codes
- San Rafael approved flexpath reach codes.
- Alameda approved AC2HP and electric readiness reach codes.
- Los Altos approved AC2HP and electric readiness reach codes.
- Saratoga approved AC2HP and electric readiness reach codes.
- Los Altos Hills approved AC2HP reach codes.
- Glendale approved AC2HP reach codes.
- Los Gatos and Portola Valley are working on AC2HP codes.
Why Are Cities Adopting Climate-Focused Reach Codes?
Buildings are a major source of air pollution, often using inefficient appliances that waste energy and drive higher energy bills. California cities with goals to reduce climate emissions need to deal with this issue by encouraging the adoption of modern, highly efficient electric appliances. There are a number of policies that can help this transition:
AC2HP Codes establish requirements to replace conventional central air conditions, not window unit conditioners, with ducted heat pumps at time of burn out, and that homes wishing to install central AC for the first time, must use heat pumps instead. These codes provide cities and counties across California an opportunity to improve air quality, fight climate change, and save residents money heat pump upgrades at economically beneficial timeframes. Today, heat pump pricing is competitive with air conditioners, already becoming a norm amongst homeowners due to their efficiency and desirability. They're just better air conditioners -- quieter, cleaner and more advanced. Click here to read more about heat pumps and their advantages.
Electric Readiness Codes require building owners to take measures to prepare their home for full electrification when making additions or alterations to an existing building. These steps include upgrading electrical panels, adding wiring for electric vehicle charging and electric stoves, and other steps that lay the groundwork for a comprehensive transition to all electric homes and buildings.
Flexpath Requirements allow cities to require building owners and contractors to choose from a list of flexible options to increase efficiency and reduce emissions when making additions or alterations to an existing building. These codes can be tailored to each individual city, and can include measures such as installing solar panels, increasing insulation, or electrifying a building.
Costs and Incentives
Available incentives can often cover the additional cost of a heat pump compared to a central AC unit. Households also save by avoiding future gas furnace replacement. In the Southern California and Bay Area Air Quality Districts, incentives lower the up-front costs of heat pumps.
Item | Cost/Incentive |
Additional cost of heat pump vs. minimum efficiency AC | $2,200 - $2,600 |
$1,000 - $4,000 | |
South Coast Air Quality Management District Go Zero Program | $1,000 - $3,000 |
Legal Landscape
With the passage of California Assembly Bill 130, new restrictions were placed on local reach code adoption. Thankfully, the legislation includes key language exempting cities and counties if they have references to building electrification, greenhouse gas emissions reductions, and/or other sustainability focused language already in their general plan. Read more about this exemption in this blog from Shute, Mihaly and Weinberger, a public interest law firm that frequently represents local governments in California.
Additional Resources
Cities and counties interested in adopting AC2HP codes can reach out to the statewide Local Energy Codes team for additional no-cost resources and support, ranging from additional economic analyses to draft code language and more. Email info@localenergycodes.com or contact Misti Bruceri and directly at mistib@mbaenergy.com. Additional support is available for jurisdictions in San Mateo and Santa Clara Counties through Bay Area Reach Codes, for LA and Ventura counties through CPA Reach Codes, and Santa Cruz and Santa Barbara counties through Central Coast Reach Codes.