Energy Reach Codes That Shape Palo Alto Projects

Remodeling or building in Palo Alto this year? The city’s latest reach codes took effect on October 4, 2024, and they change how you plan, budget, and permit projects. If you want fewer surprises, you need a clear picture of what “electric‑ready” means, which projects are covered, and how these rules can influence resale value. This guide breaks it down in plain language so you can move forward with confidence. Let’s dive in.

What changed on October 4, 2024

Palo Alto adopted new local energy reach codes that go beyond California’s baseline standards. After an early‑2024 pause on an all‑electric mandate, the city chose a balanced path that focuses on higher efficiency and electric‑readiness rather than an outright ban on gas equipment. You can expect tighter performance targets and future‑proofing requirements for many new builds and substantial remodels.

The goal is to reduce energy use today while making future electrification straightforward. That can influence your design choices, permitting requirements, and contractor coordination from day one.

Projects likely covered

New homes and multifamily

New single‑family homes and new multifamily buildings are typically within scope for local reach codes. If you are starting from the ground up, plan on meeting higher efficiency baselines and electric‑ready features.

Substantial remodels

Many jurisdictions use valuation or percent‑of‑structure thresholds to define a substantial remodel. Palo Alto’s trigger is critical to your scope, timeline, and budget. Confirm your project type and valuation thresholds with the City’s Building Division before finalizing plans.

ADUs and selected commercial work

Accessory dwelling units and certain commercial projects may also be covered, depending on exact code language. Ask your design team to flag potential triggers and verify requirements early in schematic design.

Core requirements to expect

The new code centers on two pillars: stronger efficiency and electric‑readiness. Exact specifications live in the adopted ordinance and permitting checklists, so use the points below as a planning guide and verify details with the City.

Stronger building envelope

Expect higher performance for insulation, windows, and air sealing to reduce heating and cooling loads. Mechanical ventilation and controls may be required to maintain indoor air quality in tighter homes. Plan for blower‑door or duct leakage testing where applicable.

Efficient heating and hot water

Heat pumps are favored because of their efficiency, and you may see requirements or incentives that steer projects in that direction. If you are not installing them now, you should still plan for electric‑ready pathways that make future upgrades simple.

Electric‑ready wiring and panels

Electric‑ready means providing dedicated space, wiring, and capacity for electric appliances and systems even if you keep some gas equipment today. Common examples include:

• Panel capacity and reserved breaker space for future electrification.
• Conduit or wiring rough‑ins for an electric range, electric dryer, and a heat pump water heater.
• Labeled, accessible pathways so future trades can complete upgrades without intrusive demolition.

EV charging readiness

Many projects will need EV‑ready parking, which means conduit and electrical capacity to support a charger. For multifamily buildings, expect infrastructure planning that serves multiple spaces. Verify the number and configuration with the City.

Solar or solar‑ready planning

Some projects will need roof space planning, pathways, or structural provisions to support solar photovoltaic systems. Confirm whether your project must install solar now or simply provide solar‑ready features.

Commissioning and verification

Plan for documentation and inspections that verify performance, such as HERS testing, HVAC commissioning, and proof that required rough‑ins and capacities are in place. Build these tasks into your schedule to avoid delays at finals.

How to comply without delays

Before design development

• Confirm whether your project is subject to the reach codes and identify the exact triggers.
• Align on efficiency targets, panel sizing, and EV infrastructure in the initial scope.
• Coordinate early among your architect, energy consultant, electrical engineer, and general contractor.

During plan check

• Submit energy compliance documentation with your drawings.
• Include clear EV‑ready and electric‑ready notes, panel schedules, and conduit pathways.
• Budget extra time for a reach‑code compliance review and respond quickly to comments.

During construction

• Hold a kickoff meeting with mechanical, electrical, and envelope trades to review requirements.
• Confirm product submittals meet efficiency specifications and testing requirements.
• Schedule inspections and performance testing early to leave room for corrections.

Costs, savings, and ROI

Higher performance materials, heat pumps, panel upgrades, and added labor can increase upfront costs. Over time, lower utility bills and better comfort can reduce operating expenses and improve total cost of ownership. Incentives from local programs, utilities, and federal tax credits can shorten payback periods for heat pumps, weatherization, solar, and EV charging.

If your remodel meets the “substantial” threshold, building electric‑ready now can prevent expensive retrofits later. When you weigh ROI, consider both energy savings and the market appeal of a home that is EV‑ready and future‑proofed.

Buyer demand and resale impact in Palo Alto

In a tech‑forward, climate‑conscious market, buyers increasingly look for low operating costs, EV charging, and modern electric systems. Homes that already meet higher efficiency standards or include verified electric‑ready features often show better showing‑to‑offer conversion because they reduce buyer uncertainty. For resale, document upgrades, testing results, and incentives used so you can market those benefits with clarity.

Timeline and permitting tips

Reach‑code reviews can extend plan check slightly because there is more documentation to verify. You can reduce delays by locking in panel sizes, conduit routes, insulation specs, and testing requirements before you submit. If supply‑chain constraints affect heat pumps, windows, or EV equipment, order long‑lead items early and keep your inspector informed of any substitutions.

Checklist: Is your project ready?

• Confirm whether your scope triggers the reach codes and at what valuation or percentage.
• Establish efficiency targets, insulation levels, window specs, and air sealing details.
• Right‑size your main panel and reserve breaker space for future upgrades.
• Show EV‑ready infrastructure on the plans and in the panel schedule.
• Provide rough‑ins for electric cooking, laundry, and heat pump water heating.
• Plan for solar or solar‑ready features if your project requires them.
• Schedule performance testing and keep records for resale marketing.

Work with a local guide

You deserve a smooth path from concept to final inspection. If you are weighing a remodel, a new build, or an investment property, you will benefit from a plan that aligns reach‑code compliance with your budget and long‑term value. Jimmy Lam and his team offer data‑driven guidance for owners and small‑scale investors, plus bilingual communication in English, Mandarin, and Cantonese.

Have questions about how the 2024 rules may affect your next move or remodel ROI in Palo Alto? Schedule a free consultation with Unknown Company to map your plan and position your property for the best outcome.

FAQs

Which Palo Alto projects must follow the 2024 reach codes?

• New construction and substantial remodels are generally covered; confirm your project type and valuation thresholds with the City’s Building Division.

Do the 2024 reach codes force me to remove existing gas appliances?

• No; reach codes typically apply to new or substantially altered work, and existing equipment usually remains unless you replace it or trigger specific scope.

What does electric‑ready mean for a Palo Alto remodel?

• Provide panel capacity, dedicated space, and conduit or wiring rough‑ins for future electric appliances, EV charging, and heat pump systems.

Will permits take longer under the 2024 reach codes in Palo Alto?

• Plan checks can take longer due to added documentation, but early coordination and complete submittals help keep your timeline on track.

How do these reach codes affect resale value in Palo Alto?

• Energy‑efficient and EV‑ready features appeal to many buyers; document upgrades and testing so you can market verified benefits and support your pricing strategy.