Time-of-Sale Energy Requirements for Multifamily and Commercial Buildings

Owners of multifamily and commercial buildings below 25,000 sqft are required to comply with the Building Emissions Saving Ordinance (BESO) requirements before listing their building for sale. These rules apply to 3-4 unit residential buildings until January 2028, at which point they will be transitioned to comply with the resilience upgrade requirements. These rules also apply to single-family homes and duplexes listed for sale before January 1, 2026. Follow the steps listed below to comply with BESO.

For more information, see the frequently asked questions for Sellers and Buyers.

Step one: Check building status in the BESO portal

Search for your building’s address in the BESO portal to check its status. Before listing for sale, your building status must be either:

• “Compliant”
• “Exempt”
• “Pending - Deferral to Buyer Requested”

If there is no status listed, or the status is “Due Prior to Listing” or “Non-compliant,” continue to step two to bring your building into compliance.

Step two: Bring building into compliance before listing for sale

 Choose one of the following options for bringing your building into compliance.

Option one: Complete an energy assessment

Hire a registered BESO energy assessor from the relevant category:

• Commercial, Multi-family & mixed-use
• 1-4 unit residential

Option two: Complete an energy efficiency or electrification upgrade

Complete improvements to make your building more efficient. Choose one of the projects below:

• Complete a project that transitions a building’s water and/or space heating from natural gas to an electric heat pump. (New heat pump systems must be permitted. Visit the Switch is On for a list of available rebates and incentives).
• Complete a verified building envelope upgrade package (Attic and Wall Insulation + Air Sealing).
• Complete a verified comprehensive energy improvement project with a minimum 10% energy improvement, such as the Bay Area Multifamily Building Enhancement Program.

Option three: Apply to defer the requirements to the Buyer

Apply to transfer responsibility for the BESO assessment from the Seller to the Buyer. The Buyer will need to complete an assessment within 6 months.

1. Complete the online BESO application, selecting “Request deferral to Buyer” for the application type. Fill in all fuel source information for the building’s major appliances.
2. You will receive a link to the Fuel Source Disclosure form, which you must share with all potential Buyers.
3. Once a Buyer and sale date are established, the Buyer must submit an online application to accept the BESO deferral. The Buyer will need to complete the BESO assessment within 6 months or complete one of the upgrades listed in option two.

Option four: Apply for new construction exemption

Apply for a High Performance Exemption if your building was newly constructed or completed a major renovation, replacing all energy systems and half the building envelope, within the last 10 years.

Option five: Apply for a building/unit exemption

Your building is eligible for an exemption if it meets the criteria below:

• Building size is greater than 25,000 ft2
• Unit is within a larger building (such as an attached condo)

For exemptions and other deferrals, such as hardship, please contact the BESO team directly at BESO@berkeleyca.gov.

Step three: Submit application and filing fee

Complete the online BESO application and pay a filing fee (if applicable). A BESO form or confirmation email will be sent to the applicant upon approval. Please submit the BESO Form (A, C, D or E) along with the BESO assessment (if applicable) to the title company at closing.

If needed, you can complete a paper BESO application and write a check for filing fees, made payable to City of Berkeley. Mail the application and filing fee to:

    City of Berkeley
    Office of Energy & Sustainable Development
    ATTN: BESO
    1947 Center St., 1st Floor
    Berkeley, CA 94704

Filing fees for energy assessment

Filing fees for deferrals & exemptions

Other fees