The new legislation requires newly constructed commercial buildings over 5,000 square feet and residential buildings over 75 feet high to meet various stringent green building certifications. Renovations on larger buildings are also included in the ordinance.
Newsom said most people do not realize that construction has a huge impact on the environment.
"Building demolition, building construction, building design and building operation account in a city like San Francisco for more than half our carbon dioxide emission," Newsom said.
Monday's ordinance is expected to reduce carbon dioxide emissions, save thousands of gallons of drinking water and cut back on power consumption by new homes and buildings.