A criterion, based on optimization principles, for determining the SAT setpoint in VAV systems is presented. It is generally accepted that conventional SAT reset controls (SATRC), bounded by either space humidity or ductwork size, will save cooling and/or heating energy. However, the ventilation consequences and penalty resulting from increased fan power have generally been overlooked. Ventilation is impacted since changes in the SAT setpoint change the primary airflow rate and the operation of economizer cycles, i.e. the distribution of fresh outdoor air (OA). These changes may result in extra energy demand and ventilation inefficiency if the reset criterion is not appropriate. This optimization concept simultaneously reduces energy consumption and meets ventilation requirements. Simulation results illustrate that the use of the optimized SATRC saves more energy than a conventional one.