California’s updated energy code, effective January 2026, promotes the use of electric heat pumps in new commercial and residential buildings, aiming to reduce carbon emissions. However, the code omits incentives for homeowners to replace broken air conditioners with heat pumps, a missed opportunity for existing homes. While the new regulations are seen as a win for commercial spaces, advocates urge stronger measures to decarbonize residential buildings, especially as gas furnaces will be banned by 2030.