Sausalito's New Remodel Energy Rule Scores Your House on What It Already Has

Sausalito has adopted Ordinance 05-2026, a remodel energy requirement for older single-family homes. The ordinance takes effect only after the California Energy Commission approves it, and as of early November 2026 the Commission's approved list does not include Sausalito. Once it is in force, it covers additions and alterations that reach 500 square feet of conditioned interior space. When a project crosses that line, the homeowner has to reach a points target from a menu of efficiency and electrification measures. Equipment already in the house can count toward that target. In practice, a buyer touring a pre-2011 Sausalito home is also touring the starting score for any remodel they plan to do there.

The scoring is lopsided. One heat pump water heater that replaced a gas unit is worth 12 points. That is more than the 8 points a pre-1978 home needs and the 7 a home built between 1978 and 1991 needs. A remodel of the same size can therefore carry very different requirements in two houses on the same street, depending on what sits in the garage or utility closet.

The 500 Square Feet Includes Recent Work

The rule covers single-family homes originally permitted for construction on or before December 31, 2010. The threshold counts more than the project on your desk. Any addition or alteration to the same structure in the preceding 36 months counts toward the 500 square feet. The only exception is work done before the ordinance was first adopted.

This is where a sale comes in. The ordinance counts work on the structure without regard to who owned it, so a seller's permitted alteration finished after adoption stays in the count after closing. The statewide Local Energy Codes adopted-ordinance listing gives the adoption date as April 21, 2026. Suppose the seller remodeled 300 square feet later in 2026. A buyer who wants to open up a 250-square-foot family room soon after closing could then cross the threshold on a project that looks small on paper.

How the floor area is measured matters too. When work touches walls, beams, joists, subfloor, drywall, rafters, foundations or similar components, the floor area of every affected room counts toward the total. A kitchen remodel that removes drywall in an adjoining dining room brings the dining room's square footage along.

Some scopes are excluded when they are the entire project:

• Replacing roof coverings, exterior wall finishes or floor finishes
• Adding no more than 75 square feet of windows
• Adding no more than 16 square feet of skylight, within stated performance limits
• Work limited to providing access for persons with disabilities

The Building Official makes the final call on whether a project counts.

The Menu, Scored

Once a project qualifies, the requirements cover the entire dwelling unit, not only the rooms being remodeled. The house must reach its target score from the menu below. The menu scores homes by vintage:

The table shows how unevenly the points are spread. On a pre-1978 home, air sealing, attic insulation and an induction cooktop add up to 7 points, one short of the target. A single heat pump water heater replacing gas earns 12 points. A heat pump space heater earns 18 on the oldest homes. Solar with EV-ready wiring earns 13.

On top of the score, two mandatory packages apply to every covered project:

1. Lighting. Every interior and exterior screw-in fixture needs lighting rated at 45 lumens per watt or better, and permanently mounted outdoor lighting needs photocell, occupancy sensor or energy management controls.
2. Water heating. All accessible hot water pipes need insulation at least ¾ inch thick, and sink and shower fittings must meet current CALGreen water efficiency requirements. Existing fixtures are exempt if they run no more than ten percent above those flow limits.

Existing Equipment Counts, With One Limit

The ordinance states that menu measures already present in the home "may be counted towards compliance," unless the ordinance's specification table says otherwise. That is why the score belongs on a buyer's walkthrough list. A house where a heat pump water heater has already replaced the gas tank may have its points covered before any design work starts. The covered project would then mostly owe the lighting and water heating packages. A house with an older gas water heater, uninsulated attic and original ductwork starts at zero.

The limit is that a measure installed to satisfy the state energy code cannot also count toward Sausalito's score. Where the two codes conflict, the stricter one applies.

Some remodels also trigger electric-readiness measures. Under the ordinance, a kitchen remodel in a covered project requires an electric-ready range and a panelboard upgrade, and a laundry room remodel requires an electric-ready dryer and a panelboard upgrade. Claiming the panel upgrade or solar package credits also brings in two electric-readiness measures.

A Later Addition Can Change a Home's Vintage

The target depends on vintage, and the ordinance defines vintage carefully. It is the year the original construction permit was submitted, according to building department records. If a later addition or alteration was permitted under the state performance standards in effect at the time, its permit issue date counts instead, whichever is later. A 1960s Sausalito home with a substantial 1980s addition built to that era's performance standards could be scored as a 1978–1991 home. That changes both the target and the points each measure earns.

For sellers, this has a practical side. Permit history for a past addition, receipts for a heat pump water heater and records of insulation or duct work all tell a buyer's architect where the house starts on the menu.

The Exceptions

The ordinance lists several:

• A project limited to a newly created attached ADU or JADU, whether an addition or a conversion of existing space, is exempt. Remodeling an existing ADU is not.
• Mobile homes, manufactured housing and factory-built housing are exempt.
• If compliance is technically or economically infeasible, the Building Official may reduce the target or waive mandatory items.
• A project modeled in Commission-certified software with an energy budget at or below a compliant design is exempt.
• Households that qualify for CARE or FERA may comply with the lighting and water heating packages alone.

Adopted, With an Effective Date Tied to State Approval

The rule is part of Sausalito's municipal code, in Chapter 8.02. Section 5 of the ordinance says it takes effect after California Energy Commission approval, at least 30 days after adoption, or on January 1, 2026, whichever comes last. As of early November 2026, the Commission's list of approved local ordinances does not include Sausalito. It does include two other Marin cities with 500-square-foot remodel triggers: San Rafael, approved January 21, 2026, and Corte Madera, approved February 11, 2026.

The same section covers timing. Permit applications filed and pending before the effective date may proceed under the previously adopted code, to the extent state law requires. When a buyer's plans reach the Building Division can therefore affect which rules apply.

How Sausalito Compares With Nearby Towns

The Marin Independent Journal reported in November 2025 that Marin County, Mill Valley, Tiburon, Corte Madera and San Rafael had adopted similar Tier 1 requirements or were in the process of doing so. Comparing Sausalito with these towns is useful because the details differ.

• Mill Valley. A March 16, 2026 city staff report says the city's earlier remodel ordinance was approved by the Commission on November 17, 2025. It also shows the target moving from a flat 6 points for any home to 8 and 7 by vintage, the same structure Sausalito adopted.
• Tiburon. The town's ordinance was adopted December 3, 2025, and its ordinance text lists an effective date of January 4, 2026. Its August 2025 staff report says enforcement can begin after Commission approval.
• Unincorporated Marin. The County's green building page says its updated code took effect January 1, 2026, with a 500-square-foot trigger for existing single-family homes.

A buyer choosing between an older home in Sausalito and one in Mill Valley or Tiburon will find the same basic approach of a 500-square-foot trigger plus a points menu. The status and effective date differ by town.

Quick Answers

Does the rule apply to a condo or floating home? The ordinance applies to single-family residential buildings and exempts mobile, manufactured and factory-built housing.

Does a new roof or new flooring trigger it? Not when that is the entire scope. Replacing roof coverings, exterior wall finishes or floor finishes is excluded from the definition.

Do I have to switch to an induction cooktop? No single appliance conversion is required if the target score is met another way. A kitchen remodel in a covered project does require an electric-ready range and a panelboard upgrade.

Who decides whether my project is covered? The Building Official or a designee makes the final determination.

This post is general information, not legal or financial advice. Confirm how the ordinance applies to a specific property and project with the City of Sausalito Building Division and your architect or contractor.

If you are preparing a pre-2011 Sausalito home for sale, the energy features and permit history behind its score are part of what you are selling. Phillipa Criswell can help you gather those records so a buyer's planning starts from documented facts, and can show how they fit into an accurate home value.