There are some big changes coming next year in commercial building design for more energy efficiency. On September 25, we held a MeetUp to consider what other changes might be in the works, based on some challenges that were launched two decades ago to push the frontiers of what is possible. First, here is some background.

On January 1, 2026, the most recent Title 24 standards for new commercial buildings in California will go into effect, based on the 2025 Energy Code adopted by the California Energy Commission. Key updates include a greater emphasis on electric heat pump technology for space and water heating, requirements for electric-ready commercial kitchens, updated solar and battery storage standards for specific assembly buildings, and enhanced ventilation standards for improved air quality. New commercial properties must also meet rigorous standards for building envelope insulation and air sealing, high-efficiency lighting with automated controls, and optimized HVAC and ventilation systems.

These new standards are an echo of the similar changes made in Title 24 for residential buildings adopted by the Energy Commission in 2022, effective in 2023. These standards required new residential buildings to incorporate features like solar PV systems, battery storage readiness, and efficient heat pumps to improve energy efficiency and support electrification. These standards strengthen ventilation, improve insulation, and promote the use of demand-responsive technologies, with the overall goal of achieving California’s carbon neutrality by midcentury.

The more fundamental advances in making buildings more sustainable was the Living Building Challenge (LBC) launched in 2006 by the Green Building Council and now promoted by the Living Futures Institute. The idea was to move building design and operation from minimizing harm to the environment to one of making a positive contribution to the environment. LBC consists of seven performance categories, or “Petals”: Place, Water, Energy, Health + Happiness, Materials, Equity, and Beauty. Each Petal is subdivided into Imperatives. It goes far beyond what is required to get a building a LEED certification.

Here in Sacramento we have one of the 34 buildings around the world that was certified as meeting the Living Building Challenge. It is the headquarters of the ArchNexus architectural firm and is located at 10th and R Streets across from the Fox and Goose pub. We invited Erica McBride the operations manager for the building to give us an update on what has been learned from this Challenge.

ArchNexus now has offices in Salt Lake City as well as Sacramento, in a much larger 30,000 square foot building. They have 95 professionals and are involved with close to 50 projects, mostly in the Western US. The projects have mostly been in consulting and design of sustainable features for buildings.

For their two headquarters buildings, they have achieved the goals around producing more energy than they use and in providing a comfortable working environment. The economic justification for these features was made easier with the dramatic uptick in utility prices recently with more estimated for the future. The use of natural lighting and having doors and windows that open to let in the outside air turned out to be key ways to reduce electricity use, more than expected.

In contrast, the features surrounding the capture of rainwater, reuse of greywater, and minimizing disposal of blackwater have involved a lot of plumbing and innovations that have needed more maintenance than expected. Also some innovations were needed to meet the goal of producing more water than was consumed. In general the water saving features have been hard to justify economically because in the West water is so inexpensive, ironically.

Innovations that come from challenges like the ones for living buildings often drift back into standards for all new buildings, so this is an area to watch. Take a look at Erica’s slides here. 

Please join us for our future MeetUps where we explore a wide range of topics concerning opportunities to create new companies and new products to see innovations spread.