Navigating California's Title 24

August 30, 2024

California’s Title 24 is a cornerstone in the state’s efforts to regulate energy efficiency and reduce carbon emissions in the built environment. As the state continues to lead in sustainability, Title 24 plays a critical role in ensuring that commercial buildings contribute to energy savings and environmental protection. For commercial property owners and managers, understanding and complying with Title 24 is essential not only for meeting regulatory requirements but also for enhancing building performance and reducing operational costs. This blog post explores Title 24, its requirements, and how leveraging technology like CIM’s PEAK Platform can help streamline compliance and improve overall building management.

What is Title 24 in California?

Title 24 is a set of building standards established by the California Energy Commission (CEC) to improve the energy efficiency of buildings in California. These standards are part of the California Code of Regulations and are designed to reduce energy consumption, lower greenhouse gas emissions, and promote sustainability across various building types, including commercial properties.

For office and retail buildings, Title 24 encompasses a range of regulations covering lighting, HVAC systems, building envelope, and control systems. These regulations are aimed at reducing the energy footprint of commercial structures by setting minimum standards for energy efficiency and performance. Key areas impacted by Title 24 include:

Lighting: Requirements for high-efficiency lighting fixtures, occupancy sensors, and controls to minimize energy use.
HVAC systems: Standards for energy-efficient heating, HVAC systems, including advanced controls and economizers.
Building envelope: Insulation, windows, and doors must meet specific criteria to reduce heat loss and gain.
Controls: Automated systems for lighting and HVAC that optimize energy use based on occupancy and time-of-day settings.

When did California Title 24 go into effect?

Title 24 was first introduced in 1978 as part of California’s broader energy policy to address energy consumption and environmental impact. Since its inception, the standards have undergone several updates to reflect technological advancements and evolving sustainability goals. Major updates were made in 2013, 2016, 2019, and 2022, each bringing more stringent requirements for energy efficiency.

2019 update: The 2019 Title 24 update introduced stricter energy efficiency standards for commercial buildings, focusing on enhancing lighting efficiency, HVAC performance, and building envelope improvements. It mandated the use of high-efficiency lighting fixtures and controls, such as occupancy sensors and dimming systems, to reduce energy consumption. Additionally, the update required more efficient HVAC systems with advanced controls and introduced new requirements for solar photovoltaic systems in certain non-residential buildings to promote renewable energy use.

2022 update: The 2022 Title 24 update, which took effect in January 2023, further advanced California's energy efficiency and decarbonization goals by increasing electrification requirements and tightening standards for HVAC systems, solar installations, and building envelopes. This update emphasized the transition to electric heat pump systems, encouraged the integration of battery storage with solar PV systems, and set higher performance standards for windows and insulation to minimize energy loss. Stricter lighting controls and reduced lighting power density were also introduced to optimize energy use, reflecting California's commitment to reducing greenhouse gas emissions and promoting sustainability.

As of 2024, no new updates have been released; however, property owners and managers should stay informed about future amendments that may affect compliance requirements.

Key requirements of Title 24 for non-residential buildings

Understanding the specific requirements of Title 24 is crucial for commercial property owners and managers. Here are the key compliance areas:

Energy efficiency standards for lighting and electrical systems:

High-efficiency lighting fixtures, such as LED, must be used throughout the building.
Occupancy sensors and daylight harvesting controls are required to reduce lighting use when spaces are unoccupied or when natural light is sufficient.

HVAC requirements:

Energy-efficient HVAC systems must meet specific Seasonal Energy Efficiency Ratio (SEER) and Energy Efficiency Ratio (EER) ratings.
Advanced controls, such as demand control ventilation and variable air volume (VAV) systems, are required to optimize energy use.
Economizers must be installed to use outside air for cooling when conditions allow, reducing the need for mechanical cooling.

Solar requirements:

New commercial buildings must have solar-ready roofs and include photovoltaic (PV) systems where feasible.
Solar water heating systems are required, particularly in buildings with high hot water demand, to reduce energy use.

Building envelope standards:

Title 24 mandates specific insulation levels for walls, roofs, and floors to minimize heat loss in winter and heat gain in summer.
Windows and doors must meet certain thermal performance standards including lower U-factors and Solar Heat Gain Coefficients (SHGC), to prevent unwanted heat gain in summer and heat loss in winter.

Mandatory controls for lighting and HVAC Systems:

Automated controls, such as programmable thermostats and occupancy sensors, must be implemented to optimize energy use and ensure systems are only running when needed.

How to ensure compliance with Title 24

To comply with Title 24, commercial property owners and managers should take the following steps:

Conduct an initial energy audit: Begin by performing a comprehensive energy audit to assess the building's current energy performance and identify areas that need upgrades or improvements to meet Title 24 standards.
Upgrade systems and equipment: Replace outdated lighting fixtures, HVAC systems, and other equipment with energy-efficient alternatives that meet the specific requirements outlined in Title 24.
Implement advanced controls: Install automated controls, such as programmable thermostats, occupancy sensors, and daylighting systems, to optimize energy use and ensure that the building operates efficiently.
Work with certified energy consultants and contractors: Engage professionals who are knowledgeable about Title 24 standards to guide the compliance process. Certified energy consultants can provide expert advice, conduct necessary calculations, and ensure that all upgrades and modifications meet regulatory requirements.

Note: California Association of Building Energy Consultants, a professional organization that represents energy consultants throughout California, have a searchable directory of certified energy consultants on their website. This directory allows you to find consultants by location, certification type, and services offered.

Alternatively, you can use Energy Star Partners Directory to find certified energy consultants near you.

Utilize building analytics software: Use building analytics platforms like CIM's PEAK Platform to monitor energy and water usage, track equipment performance, and prioritize maintenance tasks. This software can provide data-driven insights for proactive maintenance, optimize energy efficiency, improve communication with contractors and simplify the documentation process needed for Title 24 compliance verification.

Benefits of Title 24 compliance for commercial real estate

Complying with Title 24 offers numerous benefits for commercial property owners and managers:

Reduced energy costs and increased operational efficiency: By meeting Title 24 standards, buildings consume less energy, leading to significant cost savings on utility bills and more efficient operations. On average, buildings that fully comply with the most recent Title 24 standards can see overall energy savings of 30-50% compared to older buildings that do not meet these requirements.
Enhanced property value and attractiveness to tenants: Energy-efficient buildings are more appealing to tenants who are increasingly prioritizing sustainability. Compliance with Title 24 can enhance property value and marketability.

According to the International Energy Agency, energy-efficient buildings often command higher rental and sales premiums. For example, studies have shown that green-certified office buildings in the U.S. can achieve rental premiums of 2-5% and sale price premiums ranging from 11-26%. This indicates that tenants are willing to pay more for spaces with better energy performance due to the associated benefits, such as lower operating costs and enhanced comfort.

Positive impact on corporate sustainability goals and potential incentives: Achieving compliance supports broader corporate sustainability initiatives and may qualify buildings for various incentives and rebates offered by state and federal programs.

Conclusion

California's Title 24 opens doors to a new era of commercial real estate excellence. By aligning with these standards, property owners unlock multiple benefits: slashed energy costs, boosted property values and tenant loyalty, and tangible progress towards sustainability targets.

By leveraging advanced tools like CIM's PEAK Platform, you can transform Title 24 compliance from a complex challenge into a catalyst for building optimization. This proactive approach doesn't just meet today's standards; it future-proofs your property in an increasingly eco-conscious market, setting the stage for long-term success and industry leadership.