Attachment C - 2022 Cost - Effectiveness Study Existing Single Family Building Upgrades — Palo Alto City Council, September 8, 2025

Last modified: 2024/04/25
Revision: 1.0
Prepared by:

Ada Shen, Alea German, Rebecca Evans, & Marc Hoeschele, Frontier Energy, Inc Misti Bruceri, Misti Bruceri & Associates, LLC
Prepared for:

Kelly Cunningham, Codes and Standards Program, Pacific Gas and Electric

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
2 Legal Notice
This report was prepared by Pacific Gas and Electric Company and funded by the California utility customers under the auspices of the California Public Utilities Commission.

Neither PG&E nor any of its employees makes any warranty, express or implied; or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any data, information, method, product, policy or process disclosed in this document; or represents that its use will not infringe any privately-owned rights including, but not limited to, patents, trademarks or copyrights.

Acronym List
2023 PV$ – Present value costs in 2023
ACH50 – Air Changes per Hour at 50 pascals pressure differential ACM – Alternative Calculation Method
ADU – Accessory Dwelling Unit
AFUE – Annual Fuel Utilization Efficiency
B/C – Lifecycle Benefit-to-Cost Ratio
BEopt – Building Energy Optimization Tool
BSC – Building Standards Commission
CA IOUs – California Investor-Owned Utilities
CASE – Codes and Standards Enhancement
CBECC-Res – Computer program developed by the California Energy Commission for use in demonstrating compliance with the California Residential Building Energy Efficiency Standards CEER – Combined Energy Efficiency Rating
CFI – California Flexible Installation
CFM – Cubic Feet per Minute
CO2 – Carbon Dioxide
CPAU – City of Palo Alto Utilities
CPUC – California Public Utilities Commission
CZ – California Climate Zone
DFHP – Dual Fuel Heat Pump
DHW – Domestic Hot Water
DOE – Department of Energy
DWHR – Drain Water Heat Recovery
EDR – Energy Design Rating
EER – Energy Efficiency Ratio
EF – Energy Factor

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
3 GHG – Greenhouse Gas
HERS Rater – Home Energy Rating System Rater
HPA – High Performance Attic
HPSH – Heat Pump Space Heater
HPWH – Heat Pump Water Heater
HSPF – Heating Seasonal Performance Factor
HVAC – Heating, Ventilation, and Air Conditioning
IECC – International Energy Conservation Code
IOU – Investor Owned Utility
kBtu –British thermal unit (x1000)
kWh – Kilowatt Hour
LBNL – Lawrence Berkeley National Laboratory
LCC – Life Cycle Cost
LLAHU – Low Leakage Air Handler Unit
VLLDCS – Verified Low Leakage Ducts in Conditioned Space LSC – Long-term Systemwide Cost
MF – Multifamily
MSHP – Mini-Split Heat Pump
NEEA – Northwest Energy Efficiency Alliance
NEM – Net Energy Metering
NPV – Net Present Value
NREL – National Renewable Energy Laboratory
PG&E – Pacific Gas and Electric Company
POU – Publicly-Owned-Utilities
PV – Photovoltaic
SCE – Southern California Edison
SDG&E – San Diego Gas and Electric
SEER – Seasonal Energy Efficiency Ratio
SF – Single Family
SMUD – Sacramento Municipal Utility District
SoCalGas – Southern California Gas Company
TDV – Time Dependent Valuation
Therm – Unit for quantity of heat that equals 100,000 British thermal units Title 24 – Title 24, Part 6
TOU – Time-Of-Use
UEF – Uniform Energy Factor
VCHP – Variable Capacity Heat Pump, Title 24 compliance credit ZNE – Zero-net Energy

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
4 Summary of Revisions
Date Description Reference (page or section)
4/25/2024 Original Release N/A

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
5 TABLE OF CONTENTS
Executive Summary..........................................................................................................................................................1 1 Introduction................................................................................................................................................................6 2 Methodology and Assumptions ...............................................................................................................................7

2.1 Analysis for Reach Codes..................................................................................................................................................... 7

2.1.1 Modeling ....................................................................................................................................................................... 7

2.1.2 Prototype Characteristics.............................................................................................................................................. 7

2.1.3 Cost-Effectiveness Approach...................................................................................................................................... 10

2.1.4 Utility Rates................................................................................................................................................................. 11

2.1.5 Measure Cost Data Collection Approach .................................................................................................................... 12

2.2 Measure Details and Cost................................................................................................................................................... 12

2.2.1 Building Envelope & Duct Measures........................................................................................................................... 13

2.2.2 PV Measures .............................................................................................................................................................. 14

2.2.3 Equipment Fuel Substitution Measures – Heat Pump Equipment............................................................................... 15 3 Results......................................................................................................................................................................21

3.1 Cost-Effectiveness Results ................................................................................................................................................. 22

3.1.1 HPSH Measures ......................................................................................................................................................... 22

3.1.2 HPWH Measures ........................................................................................................................................................ 24

3.2 Climate Zone Case Studies ................................................................................................................................................ 26

3.2.1 HPSH Cost-Effectiveness ........................................................................................................................................... 27

3.2.2 HPWH Cost-Effectiveness .......................................................................................................................................... 28

3.2.3 Envelope & Duct Improvement Cost-Effectiveness..................................................................................................... 29

3.2.4 Sensitivities................................................................................................................................................................. 30

3.3 Gas Pathways for Heat Pump Replacements..................................................................................................................... 31 4 Recommendations and Discussion.......................................................................................................................33 5 References ...............................................................................................................................................................37 6 Appendices ..............................................................................................................................................................38

6.1 Map of California Climate Zones......................................................................................................................................... 38

6.2 Utility Rate Schedules......................................................................................................................................................... 39

6.2.1 Pacific Gas & Electric.................................................................................................................................................. 40

6.2.2 Southern California Edison ......................................................................................................................................... 48

6.2.3 Southern California Gas.............................................................................................................................................. 52

6.2.4 San Diego Gas & Electric............................................................................................................................................ 54

6.2.5 City of Palo Alto Utilities.............................................................................................................................................. 64

6.2.6 Sacramento Municipal Utilities District (Electric Only)................................................................................................. 66

6.2.7 Fuel Escalation Assumptions...................................................................................................................................... 68

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
6 LIST OF TABLES
Table 1. Prototype Characteristics........................................................................................................................................................ 8 Table 2. Efficiency Characteristics for Three Vintage Cases ................................................................................................................ 9 Table 3. Measure Cost Assumptions – Efficiency & Duct Measures .................................................................................................. 14 Table 4. Measure Descriptions & Cost Assumptions – PV ................................................................................................................. 15 Table 5. Lifetime Analysis Replacement Assumptions for DFHP (Existing Furnace) Scenario .......................................................... 16 Table 6. System Sizing by Climate Zone ............................................................................................................................................ 17 Table 7. Ducted HVAC Measure Cost Assumptions – 4-Ton Electric Replacements......................................................................... 18 Table 8. Non-Ducted HVAC Measure Cost Assumptions – 4-Ton Electric Replacements ................................................................. 18 Table 9. Water Heating Measure Cost Assumptions – Existing Gas .................................................................................................. 19 Table 10. Water Heating Measure Cost Assumptions – Existing Electric Resistance ........................................................................ 20 Table 11. HPSH CZ 12 [1992-2010]................................................................................................................................................... 27 Table 12. HPSH CZ 16 [1992-2010]................................................................................................................................................... 27 Table 13. HPWH CZ 12 [1992-2010] .................................................................................................................................................. 28 Table 14. HPWH CZ 16 [1992-2010] .................................................................................................................................................. 28 Table 15. Envelope and Duct Measures CZ 3 [Pre-1978] .................................................................................................................. 29 Table 16. Envelope and Duct Measures CZ 10 [Pre-1978]................................................................................................................. 29 Table 17. Envelope and Duct Measures CZ 12 [Pre-1978]................................................................................................................. 29 Table 18. Sensitivity Analysis Results for On-Bill NPV Cost-Effectiveness in Climate Zone 12, PG&E.............................................. 30 Table 19. Electric Panel Upgrade Sensitivity for CZ 12 [1992-2010] .................................................................................................. 30 Table 20. PG&E Baseline Territory by Climate Zone.......................................................................................................................... 40 Table 21. PG&E Monthly Gas Rate ($/therm)..................................................................................................................................... 40 Table 22: SCE Baseline Territory by Climate Zone ............................................................................................................................ 48 Table 23. SoCalGas Baseline Territory by Climate Zone ................................................................................................................... 52 Table 24. SoCalGas Monthly Gas Rate ($/therm) .............................................................................................................................. 52 Table 25. SDG&E Baseline Territory by Climate Zone ....................................................................................................................... 54 Table 26. SDG&E Monthly Gas Rate ($/therm) .................................................................................................................................. 54 Table 27. CPAU Monthly Gas Rate ($/therm)..................................................................................................................................... 64 Table 28: Real Utility Rate Escalation Rate Assumptions, CPUC En Banc and 2022 TDV Basis ...................................................... 68 Table 29: Real Utility Rate Escalation Rate Assumptions, 2025 LSC Basis ....................................................................................... 69

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
7 LIST OF FIGURES
Figure 1: DFHP with Existing Furnace............................................................................................................................................ 22 Figure 2: Standard Efficiency HPSH............................................................................................................................................... 22 Figure 3: High Efficiency HPSH...................................................................................................................................................... 23 Figure 4: Ducted MSHP.................................................................................................................................................................. 23 Figure 5: HPSH + PV...................................................................................................................................................................... 23 Figure 6: 240V Federal Minimum HPWH........................................................................................................................................ 24 Figure 7: 240V Market Standard NEEA HPWH .............................................................................................................................. 24 Figure 8: 120V Market Standard NEEA HPWH .............................................................................................................................. 24 Figure 9: 240V Federal Minimum HPWH + PV............................................................................................................................... 24 Figure 10: R-6 Ducts....................................................................................................................................................................... 26 Figure 11: 10% Duct Leakage ........................................................................................................................................................ 26 Figure 12: R-13 Wall Insulation....................................................................................................................................................... 26 Figure 13: R-49 Attic Insulation....................................................................................................................................................... 26 Figure 14. Heat pump space heater path compared to the air conditioner path. ............................................................................ 32 Figure 15. Heat pump water path compared to gas with solar thermal........................................................................................... 32 Figure 16. Map of California climate zones..................................................................................................................................... 38

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
1 Executive Summary
The California Codes and Standards (C&S) Reach Codes program provides technical support to local governments considering adopting a local ordinance (reach code) intended to support meeting local and/or statewide energy efficiency and greenhouse gas (GHG) reduction goals. The program facilitates adoption and implementation of the code when requested by local jurisdictions by providing resources such as cost-effectiveness studies, model language, sample findings, and other supporting documentation.

This report documents cost-effective measure upgrades in existing single family buildings that exceed the minimum state requirements. It evaluates efficiency measures such as adding insulation, replacing windows, and duct upgrades, fuel substitution measures that upgrade space heating and water heating to heat pumps, and solar photovoltaics (PV) across all 16 California climate zones. A 1,665 square foot single family home prototype with an attached garage was evaluated in this study.

This analysis used two different metrics to assess the cost-effectiveness of the proposed upgrades. Both methodologies require estimating and quantifying the incremental costs and energy savings associated with each energy efficiency measure over a 30-year analysis period. On-Bill cost-effectiveness is a customer-based lifecycle cost (LCC) approach that values energy based upon estimated site energy usage and customer utility bill savings using today’s electricity and natural gas utility tariffs. Long-term Systemwide Cost (LSC) is the California Energy Commission’s LCC methodology for the 2025 Title 24, Part 6 (Title 24) code cycle (previously referred to as Time Dependent Valuation (TDV)), which is intended to capture the long-term projected cost of energy including costs for providing energy during peak periods of demand, carbon emissions, grid transmission and distribution impacts. This is the methodology used by the Energy Commission in evaluating cost-effectiveness for efficiency measures in Title 24 code development.

The following summarizes key results from the study:

Conclusions and Discussion:

1. Envelope measures. Improving envelope performance is very cost-effective in many older homes. In addition to reducing utility costs, these measures provide many other benefits such as improving occupant comfort and satisfaction and increasing a home’s ability to maintain temperatures during extreme weather events and power outages. Below is a discussion of the results of specific measures. a. Adding attic insulation is cost-effective based on both LSC and On-Bill in many climate zones in homes with no more than R-19 existing attic insulation levels. Increasing attic insulation from R-30 to R-49 was still found to be cost-effective based on at least one metric in the colder and hotter climates of Climate Zone 10 (SDG&E territory only) through 16.
b. Insulating existing uninsulated walls is very cost-effective based on both metrics everywhere except Climate Zones 6 and 7 (in Climate Zone 8 it’s only cost-effective based on LSC). c. Adding R-19 or R-30 floor insulation is cost-effective based on LSC in the older two vintages (Pre-1978 and 1978-1991) in all CZ except CZ 6-10.
d. Replacing old single pane windows with new high-performance windows has a very high cost and is typically not done for energy savings alone. However, energy savings are substantial and justify cost - effectiveness of this measure based on at least one metric in Climate Zones 4, 8 through 12 (PG&E territory only), and 13 through 16.
e. At time of roof replacement, a cool roof with an aged solar reflectance of 0.25 was found to be cost - effective in Climate Zones 4, 6 through 12 (PG&E territory only), and 13 through 15. When the roof deck is replaced during a roof replacement, adding a radiant barrier is low cost and provides substantial cooling energy savings, and was found to be cost-effective in almost all climate zones and homes.

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
2 the 1978-1991 vintage. If duct systems still have remaining life they should be sealed and tested to meet 10% leakage or lower; however, duct upgrades alone were only found to be cost-effective for newer homes in Climate Zones 10 (SDG&E territory only), 11, and 13 through 16. Duct upgrades may be able to be coupled with other measures to reduce the cost.

3. Heat pump space heating: HPSHs were found to be LSC cost-effective in many cases. The Dual Fuel Heat Pump (existing furnace) was LSC cost-effective everywhere except Climate Zone 15. The HPSH was LSC cost-effective everywhere except Climate Zones 8 and 15. a. Challenges to On-Bill cost-effectiveness include higher first costs and higher first-year utility costs due to higher electricity tariffs relative to gas tariffs. SMUD and CPAU are two exceptions where first year utility costs are lower for heat pumps than for gas equipment. Table 11 shows the impact of utility rates on cost-effectiveness of HPSH where the standard and high efficiency HPSH and the HPSH + PV measures are cost-effective under SMUD but not PG&E. Even with higher first year utility bills, there were some cases that still proved On-Bill cost-effective including the DFHP with an existing furnace in the central valley and northern coastal PG&E territories, the ducted MSHP in the central valley as well as Climate Zone 14 in SDG&E territory, and the HPSH + PV measure in CZ 3-5 (PGE), 7-11, and 12 (SMUD) – 15.
b. The ductless MSHPs were only found to be cost-effective based on either metric in Climate Zones 1 and 16. Ductless MSHPs have a high incremental cost because it is a more sophisticated system than the base model of a wall furnace with a window AC unit. However, the ductless MSHP would provide greater comfort benefits if properly installed to directly condition all habitable spaces (as is required under the VCHP compliance credit as evaluated in this study) which may be an incentive for a homeowner to upgrade their system.
c. Higher efficiency equipment lowered utility costs in all cases and improved cost-effectiveness in many cases, particularly with a ducted MSHP.

4. Heat pump water heating: All the HPWH measures were LSC cost-effective in all climate zones. Most measures were not On-Bill cost-effective with the exception of the HPWH + PV which was cost-effective On- Bill in CPAU, SMUD, and SDG&E territories in addition to Climate Zones 11, 13, 14, and 15. The HPWH measures share many of the same challenges as the HPSH measures to achieving cost -effectiveness including high first costs and utility rates and assumptions. Table 13 shows the impact of utility rates on cost- effectiveness where some HPWH measures are cost-effective under SMUD utility rates but are not cost- effective anywhere under PG&E rates in Climate Zone 12. a. Various HPWH locations were also explored, however there are some factors outside of cost - effectiveness that should also be considered.
i. HPWHs in the conditioned space can provide benefits such as free-cooling during the summer, reduced tank losses, and shorter pipe lengths, and in some cases show improved cost-effectiveness over garage located HPWHs. However, there are various design considerations such as noise, comfort concerns, an additional heating load in the winter, and condensate removal. Ducting the inlet and exhaust air resolves comfort concerns but adds costs and complexity. Split heat pump water heaters address these concerns, but currently there are limited products on the market and there is a cost premium relative to the packaged products.
ii. Since HPWHs extract heat from the air and transfer it to water in the storage tank, they must have adequate ventilation to operate properly. Otherwise, the space cools down over time, impacting the HPWH operating efficiency. This is not a problem with garage installations but needs to be considered for water heaters located in interior or exterior closets. For the 2025 Title 24 code the CEC is proposing that all HPWH installations meet mandatory ventilation requirements (California Energy Commission, 2023).

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
3 new initiatives to obtain current costs including the TECH Clean California program 1 that publishes heat pump data and costs; however, at the time of this analysis, the TECH data did not contain incremental costs because it only had the heat pump costs but not the gas base case costs.

6. Table 18 shows how CARE rates and escalation rate assumptions will impact cost -effectiveness. a. Applying CARE rates in the IOU territories has the overall impact to increase utility cost savings for an all-electric building compared to a code compliant mixed fuel building, improving On-Bill cost- effectiveness. This is due to the CARE discount on electricity being higher than that on gas. The reverse occurs with efficiency measures where lower utility rates reduce savings and subsequently reduce cost-effectiveness.
b. If gas tariffs are assumed to increase substantially over time, in-line with the escalation assumption from the 2025 LSC development, cost-effectiveness substantially improves for the heat pump measures over the 30-year analysis period and many cases become cost-effective that were not found to be cost-effective under the CPUC / 2022 TDV escalation scenario. There is much uncertainty surrounding future tariff structures as well as escalation values. While it’s clear that gas rates will increase, how much and how quickly is not known. Future electricity tariff structures are expected to evolve over time, and the CPUC has an active proceeding to adopt an income-graduated fixed charge that benefits low-income customers and supports electrification measures for all customers. 2 The
CPUC will make a decision in mid-2024 and the new rates are expected to be in place later that year or in 2025. While the anticipated impact of this rate change is lower volumetric electricity rates, the rate design is not finalized. While lower volumetric electricity rates provide many benefits, it also will make building efficiency measures harder to justify as cost-effective due to lower utility bill cost savings.

7. Under NBT, utility cost savings for PV are substantially less than what they were under prior net energy metering rules (NEM 2.0); however, savings are sufficient to be On-Bill cost-effective in all climate zones except Climate Zones 1 through 3, 5, and 6.
a. Combining a heat pump with PV allows the additional electricity required by the heat pump to be offset by the PV system while also increasing on-site utilization of PV generation rather than exporting the electricity back to the grid at a low rate.
b. While not evaluated in this study, coupling PV with battery systems can be very advantageous under NBT increasing utility cost savings because of improved on-site utilization of PV generation and fewer exports to the grid.

Recommendations:

1. There are various approaches for jurisdictions who are interested in reach codes for existing buildings. Some potential approaches are listed below along with key considerations. a. Prescriptive measures: Non-preempted measures that are found to be cost-effective may be prescriptively required in a reach code. One example of this type or ordinance is a cool roof requirement at time of roof replacement. Another example is requiring specific cost -effective measures for larger remodels, such as high-performance windows when new windows are installed or duct sealing and testing when ducts are in an unconditioned space. b. Replacement equipment: This flavor of reach code sets certain requirements at time of equipment replacement. This study evaluated space heating and water heating equipment. Where a heat pump measure was found to be cost-effective based on either LSC or On-Bill, this may serve as the basis of a reach code given the following considerations.
i. Where reach codes reduce energy usage and are not just fuel switching, cost -effectiveness calculations are required and must be based on equipment that does not exceed the federal minimum efficiency requirements.
ii. Where reach codes are established using cost-effectiveness based on LSC, utility bill impacts and the owner’s first cost should also be reviewed and considered. 1 TECH Public Reporting Home Page (techcleanca.com)
2 https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/electric-costs/demand-response-dr/demand-flexibility-rulemaking California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
4 iii. A gas path should also be prescriptively allowed to safely satisfy federal preemption requirements considering the CRA v. Berkeley case. 3 Additional requirements may apply to the gas path, as described in Section 3.3, as long as the paths are reasonably energy or cost equivalent.
c. “Flexible Path”, minimum energy savings target: This flexible approach establishes a target for required energy savings based on a measure or a set of measures that were found to be cost -effective based on either LSC or On-Bill. A points menu compares various potential upgrades ranging from efficiency, PV, and fuel substitution measures, based on site or source energy savings. The applicant must select upgrades that individually or in combination meet the minimum energy savings target. The maximum target value shown in the Cost-effectiveness Explorer is based on a combination of cost- effective, non-preempted measures.

2. Equipment replacement ordinances should consider appropriate exceptions for scenarios where it will be challenging to meet the requirements, such as location of the HPWH, total project cost limitations, or the need for service panel upgrades that wouldn’t have been required as part of the proposed scope of work in absence of the reach code.

3. Consider extending relevant proposals made by the CEC for the 2025 Title 24 code (California Energy Commission, 2023) in ordinances that apply under the 2022 Title 24 code, such as the following:
a. Mandatory ventilation requirements for HPWH installations (Section 110.3(c)7). The cost -effectiveness analysis can be found in the Multifamily Domestic Hot Water CASE report (Statewide Team, 2023). b. Requirement for HERS verified refrigerant charge verification for heat pumps in all climate zones (Table 150.1-A
4). The cost-effectiveness analysis can be found in the Residential HVAC Performance CASE report (Statewide Team, 2023).

4. When evaluating reach code strategies, the Reach Codes Team recommends that jurisdictions consider combined benefits of energy efficiency alongside electrification. Efficiency and electrification have symbiotic benefits and are both critical for decarbonization of buildings. As demand on the electric grid is increased through electrification, efficiency can reduce the negative impacts of additional electricity demand on the grid, reducing the need for increased generation and storage capacity, as well as the need to upgrade upstream transmission and distribution equipment.

5. Education and training can play a critical role in ensuring that heat pumps are installed, commissioned, and controlled properly to mitigate grid impacts and maximize occupant satisfaction. Below are select recommended strategies.
a. The Quality Residential HVAC Services Program
5 is an incentive program to train California
contractors in providing quality installation and maintenance while advancing energy -efficient technologies in the residential HVAC industry. Jurisdictions can market this to local contractors to increase the penetration of contractors skilled in heat pump design and installation. b. Educate residents and contractors of available incentives, tax credits, and financing opportunities. c. Educate contractors on code requirements. Energy Code Ace provides free tools, training, and resources to help Californians comply with the energy code. Contractors can access interactive compliance forms, fact sheets, and live and recorded trainings, among other things, on the website:
https://energycodeace.com/. Jurisdictions can reach out to Energy Code Ace directly to discuss offerings.

6. Health and safety
a. Combustion Appliance Safety and Indoor Air Quality: Implementation of some of the recommended measures will affect the pressure balance of the home which can subsequently impact the safe operation of existing combustion appliances as well as indoor air quality. Buildings with older gas appliances can present serious health and safety problems which may not be addressed in a remodel 3 https://www.publichealthlawcenter.org/sites/default/files/2024-01/CRA-v-Berkeley-Ninth-Circuit-Opinion-Jan2024.pdf 4 This requirement does not show up in the Express Terms for alterations in Section 150.2(b)1F, but the Statewide Reach Codes Team expects that it will be added to the next release of the proposed code language in the 45-day language as it aligns with the proposal made by the Codes and Standards Enhancement Team (Statewide CASE Team, 2023). 5 https://qualityhvac.frontierenergy.com/
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
5 if the appliances are not being replaced. It is recommended that the building department require inspection and testing of all combustion appliances located within the pressure boundary of the building after completion of retrofit work that involves air sealing or insulation measures . b. Jurisdictions may consider requiring mechanical ventilation in homes where air sealing has been conducted. In older buildings, outdoor air is typically introduced through leaks in the building envelope.

After air sealing a building, it may be necessary to forcefully bring in fresh outdoor air using supply and/or exhaust fans to minimize potential issues associated with indoor air quality.

Local jurisdictions may also adopt ordinances that amend different Parts of the California Building Standards Code or may elect to amend other state or municipal codes. The decision regarding which code to amend will determine the specific requirements that must be followed for an ordinance to be legally enforceable. For example, reach codes that amend Part 6 of the CA Building Code and require energy performance beyond state code minimums must demonstrate the proposed changes are cost-effective and obtain approval from the Energy Commission as well as the Building Standards Commission (BSC). Amendments to Part 11, such as requirements for increased water efficiency or electric vehicle infrastructure only require BSC approval. Although a cost-effectiveness study is only required to amend Part 6 of the CA Building Code, this study provides valuable context for jurisdictions pursuing other ordinance paths to understand the economic impacts of any policy decision. This study documents the estimated costs, benefi ts, energy impacts and greenhouse gas emission reductions that may result from implementing an ordinance based on the results to help residents, local leadership, and other stakeholders make informed policy decisions.

This report documents the key results and conclusions from the Reach Codes Team analysis. A full dataset of all results can be downloaded at https://localenergycodes.com/content/resources. Results alongside policy options can also be explored using the Cost-effectiveness Explorer at https://explorer.localenergycodes.com/. Model ordinance language and other resources are posted on the C&S Reach Codes Program website at LocalEnergyCodes.com.

Local jurisdictions that are considering adopting an ordinance may contact the program for further technical support at [email protected].

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Introduction
6 1 Introduction
This report documents cost-effective measure upgrades in existing single family buildings that exceed the minimum state requirements, the 2022 Building Energy Efficiency Standards, effective January 1, 2023. Local jurisdictions in California may consider adopting local energy ordinances to achieve energy savings beyond what will be accomplished by enforcing building efficiency requirements that apply statewide. This report was developed in coordination with the California Statewide Investor-Owned Utilities (IOUs) Codes and Standards Program, key consultants, and engaged cities—collectively known as the Statewide Reach Codes Team.

The focus of this study is on existing single family buildings and does not apply to low or high-rise multifamily buildings.

Each jurisdiction must establish the appropriate structure and threshold for triggering the proposed requirements.

Some common jurisdictional structures include triggering the requirements at major remodels, additions, or date- certain (upgrades must be completed by a specific date). Some of these measures could be triggered with a permit for another specific measure, such as a re-roofing project. The analysis includes scenarios of individual measures and identifies cost-effective options based on the existing conditions of the building in all 16 California Climate Zones (CZ) (see Cost - Effectiveness Results for a graphical depiction of climate zone locations).

The California Codes and Standards (C&S) Reach Codes program provides technical support to local governments considering adopting a local ordinance (reach code) intended to support meeting local and/or statewide energy efficiency and greenhouse gas reduction goals. The program facilitates adoption and implementation of the code when requested by local jurisdictions by providing resources such as cost-effectiveness studies, model language, sample findings, and other supporting documentation.

The California Building Energy Efficiency Standards Title 24, Part 6 (Title 24) (CEC, 2019) is maintained and updated every three years by two state agencies: the California Energy Commission (the Energy Commission) and the Building Standards Commission (BSC). In addition to enforcing the code, local jurisdictions have the authority to adopt local energy efficiency ordinances—or reach codes—that exceed the minimum standards defined by Title 24 (as established by Public Resources Code Section 25402.1(h)2 and Section 10-106 of the Building Energy Efficiency Standards).

Local jurisdictions must demonstrate that the requirements of the proposed ordinance are cost -effective and do not result in buildings consuming more energy than is permitted by Title 24. In addition, the jurisdiction must obtain approval from the Energy Commission and file the ordinance with the BSC for the ordinance to be legally enforceable.

The Department of Energy (DOE) sets minimum efficiency standards for equipment and appliances that are federally regulated under the National Appliance Energy Conservation Act, including heating, cooling, and water heating equipment (E-CFR, 2020). Since state and local governments are prohibited from adopting higher minimum efficiencies than the federal standards require, the focus of this study is to identify and evaluate cost -effective packages that do not include high efficiency heating, cooling, and water heating equipment. High efficiency appliances are often the easiest and most affordable measure to increase energy performance. While federal preemption limits reach code mandatory requirements for covered appliances, in practice, builders may install any package of compliant measures to achieve the performance requirements.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Methodology and Assumptions
7 2 Methodology and Assumptions

2.1 Analysis for Reach Codes
This section describes the approach to calculating cost-effectiveness including benefits, costs, metrics, and utility rate selection.

2.1.1 Modeling
The Reach Codes Team performed energy simulations using the 2025 research version of the Residential California Building Energy Code Compliance software (CBECC). The 2025 version of CBECC was used instead of the 2022 version to take advantage of updated weather files and metrics. Site energy results are similar between CBECC -Res 2022 and 2025; however, the 2025 compliance metrics applies assumptions reflective of an electrified future, such as high escalation for natural gas retail rates, which favors electric buildings. In addition, in 2025 the weather stations were changed in Climate Zones 4 and 6 from San Jose to Paso Robles and Torrance to Los Angeles International Airport, respectively.

Three unique building vintages are considered: pre-1978, 1978-1991, and 1992-2010. The vintages were defined based on review of historic Title 24 code requirements and defining periods with distinguishing features. Prospective energy efficiency measures were identified and modeled to determine the projected site energy (therm and kWh), source energy, GHG emissions, and LSC (long-term systemwide cost) impacts. Annual utility costs were calculated using hourly data output from CBECC, and current (as of 11/01/2023) electricity and natural gas tariffs for each of the investor-owned utilities (IOUs) appropriate for that climate zone.

Equivalent CO2 emission reductions were calculated based on outputs from the CBECC-Res simulation software.

Electricity emissions vary by region and by hour of the year. CBECC-Res applies two distinct hourly profiles, one for Climate Zones 1 through 5 and 11 through 13 and another for Climate Zones 6 through 10 and 14 through 16. Natural gas emissions do not vary hourly. To compare the mixed-fuel and all-electric cases side-by-side, GHG emissions are presented as lbs CO2-equivalent (CO2e) emissions.

The Statewide Reach Codes Team designed the analysis approach and selected measures for evaluation based on the 2019 existing building single family reach code analysis (Statewide Reach Codes Team, 2021) and work to support the 2025 Title 24 code development cycle as well as from outreach to architects, builders, and engineers.

2.1.2 Prototype Characteristics
The Energy Commission defines building prototypes which it uses to evaluate the cost- effectiveness of proposed changes to Title 24 requirements. Average home size has steadily increased over time, 6 and the Energy Commission single family new construction prototypes are larger than many existing single family homes across California. For this analysis, a 1,665 square foot prototype was evaluated. Table 1 describes the basic characteristics of the single family prototype. Additions are not evaluated in this analysis as they are already addressed in Section 150.2 of Title 24, Part

6. The CEC has proposed changes to the 2025 Energy Code that would remove the allowance of gas space heating and water heating equipment for additions and instead require additions to follow the same space heating and water heating equipment requirements as new construction (California Energy Commission, 2023). The proposed prescriptive requirements for single family new construction homes are heat pump space heaters and water heaters, with gas equipment only allowed in the performance approach. 6 https://www.census.gov/const/C25Ann/sftotalmedavgsqft.pdf California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Methodology and Assumptions
8 Table 1. Prototype Characteristics
Specification
Existing Conditioned Floor Area 1,665 ft2
Num. of Stories 1
Num. of Bedrooms 3
Window-to-Floor Area Ratio 13%
Attached Garage 2-car garage
Three building vintages were evaluated to determine sensitivity of existing building performance on cost-effectiveness of upgrades. For example, it is widely recognized that adding attic insulation in an older home with no insulation is cost - effective, however, newer homes will likely have existing attic insulation reducing the cost-effectiveness of an incremental addition of insulation. The building characteristics for each vintage were determined based on either prescriptive requirements from Title 24 that were in effect or standard construction practice during that time period.

Homes built under 2001 Title 24 are subject to prescriptive envelope code requirements very similar to homes built under the 2005 code cycle, which was in effect until January 1, 2010.

Table 2 summarizes the assumptions for each of the three vintages. Additionally, the analysis assumed the following features when modeling the prototype buildings. Efficiencies were defined by year of the most recent equipment replacement based on standard equipment lifetimes.
• Individual space conditioning and water heating systems, one per single family building. • Split-system air conditioner with natural gas furnace. o Scenarios with an existing natural gas wall furnace without AC were also evaluated. • Small storage natural gas water heater.
o Scenarios with an existing electric resistance storage water heater were also evaluated. • Gas cooktop, oven, and clothes dryer.

The methodology applied in the analyses begins with a design that matches the specifications as described in Table 2 for each of the three vintages. Prospective energy efficiency measures were modeled to determine the projected energy performance and utility cost impacts relative to the baseline vintage. In some cases, where logical, measures were packaged together.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades Methodology and Assumptions
9 Table 2. Efficiency Characteristics for Three Vintage Cases Building Component Efficiency
Feature
Vintage Case
Pre-1978 1978-1991 1992-2010
Envelope
Exterior Walls 2x4, 16-inch on center wood frame,
R-0a
2x4 16 inch on center wood frame,
R-11
2x4 16 inch on center wood frame,
R-13
Foundation Type & Insulation Uninsulated slab (CZ 2-15) Raised floor, R-0 (CZ 1 & 16)
Uninsulated slab (CZ 2-15)
Raised floor, R-0 (CZ 1 & 16)
Uninsulated slab (CZ 2-15)
Raised floor, R-19 (CZ 1 & 16)
Ceiling Insulation & Attic Type
Vented attic, R-5 @ ceiling level for CZ
6 & 7,
Vented attic, R-11 @ ceiling level
(all other CZs)
Vented attic, R-19 @ ceiling level Vented attic, R-30 @ ceiling level Roofing Material & Color Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Radiant Barrier No No No
Window Type: U-factor/SHGCb Metal, single pane: 1.16/0.76 Metal, dual pane: 0.79/0.70 Vinyl, dual pane Low-E: 0.55/0.40 House Infiltration at 50 Pascals 15 ACH50 10 ACH50 7 ACH50 HVAC Equipment
Heating Efficiency 78 AFUE (assumes 2 replacements) 78 AFUE (assumes 1 replacement) 78 AFUE Cooling Efficiency 10 SEER (assumes 2 replacements) 10 SEER (assumes 1 replacement) 13 SEER, 11 EER Duct Location & Details Attic, R-2.1, 30% leakage at 25 Pa Attic, R-2.1, 25% leakage at 25 Pa Attic, R-4.2, 15% leakage at 25 Pa Whole Building Mechanical
Ventilation None None None
Water Heating Equipment
Water Heater Efficiency 0.575 Energy Factor (assumes 2
replacements)

0.575 Energy Factor (assumes 1
replacement) 0.575 Energy Factor
Water Heater Type 40-gallon gas storage 40-gallon gas storage 40-gallon gas storage Pipe Insulation None None None
Hot Water Fixtures Standard, non-low flow Standard, non-low flow Standard, non-low flow a Pre-1978 wall modeled with R-5 cavity insulation to better align wall system performance with monitored field data and not overestimate energy use. b Window type selections were made based on conversations with window industry expert, Ken Nittler. If a technology was entering the market during the time period (e.g., Low-E during 1992-2010 or dual-pane during 1978-1991) that technology was included in the analysis. This provides a conservative assumption for overall building performance and additional measures may be cost-effective for buildings with lower performing windows, for example buildings with metal single pane windows in the 1978- 1991 vintage.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 10 Methodology and Assumptions

2.1.3 Cost-Effectiveness Approach

2.1.3.1 Benefits
This analysis used two different metrics to assess the cost-effectiveness of the proposed upgrades. Both methodologies require estimating and quantifying the incremental costs and energy savings associated with each energy efficiency measure. The main difference between the methodologies is the way they value energy impacts (the numerator in the benefit cost calculation):

Utility Bill Impacts (On-Bill): This customer-based lifecycle cost (LCC) approach values energy based upon estimated site energy usage and customer utility bill savings using the latest electricity and natural gas utility tariffs available at the time of writing this report. Total savings are estimated over a 30-year duration and include discounting of future utility costs, as well as assumed energy cost inflation over time.

Long-term Systemwide Cost (LSC): Formerly known as Time Dependent Valuation (TDV) energy cost savings, LSC reflects the Energy Commission’s current LCC methodology, which is intended to capture the total value or cost of energy use over 30 years. This method accounts for the hourly cost of marginal generation, transmission and distribution, fuel, capacity, losses, and cap-and-trade-based CO2 emissions (California Energy Commission, 2023).

This is the methodology used by the Energy Commission in evaluating cost-effectiveness for efficiency measures in the 2025 Energy Code.

2.1.3.2 Costs
The Reach Codes Team assessed the incremental costs of the measures and packages over a 30- year analysis period. Incremental costs represent the equipment, installation, replacement, and maintenance costs of the proposed measure relative to the 2022 Title 24 Standards minimum requirements or standard industry practices. Present value of replacement cost is included only for measures with lifetimes less than the 30-year evaluation period. In cases where at the end of the analysis period the measure has useful life remaining, the value of this remaining life is calculated and credited in the total lifetime cost.

2.1.3.3 Metrics
Cost-effectiveness is presented using net present value (NPV) and benefit-to-cost (B/C) ratio metrics.

NPV: Equation 1 demonstrates how lifetime NPV is calculated. If the NPV of a measure or package is positive, it is considered cost-effective. A negative value represents a net increase in costs over the 30-year lifetime.

B/C Ratio: This is the ratio of the present value of all benefits to the present value of all costs over 30 years ( present value benefits divided by present value costs). A value of one indicates the NPV of the savings over the life of the measure is equivalent to the NPV of the lifetime incremental cost of that measure. A value greater than one represents a positive return on investment. The B/C ratio is calculated according to Equation 2.

Equation 1
𝑁𝑁𝑁𝑁𝑁𝑁 = 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑝𝑝 𝑜𝑜𝑜𝑜 𝑣𝑣𝑙𝑙𝑜𝑜𝑝𝑝𝑝𝑝𝑙𝑙𝑙𝑙𝑝𝑝 𝑏𝑏𝑝𝑝𝑝𝑝𝑝𝑝𝑜𝑜𝑙𝑙𝑝𝑝 − 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑝𝑝 𝑜𝑜𝑜𝑜 𝑣𝑣𝑙𝑙𝑜𝑜𝑝𝑝𝑝𝑝𝑙𝑙𝑙𝑙𝑝𝑝 𝑐𝑐𝑜𝑜𝑝𝑝𝑝𝑝 Equation 2
𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑝𝑝 𝑜𝑜𝑜𝑜 𝑣𝑣𝑙𝑙𝑜𝑜𝑝𝑝𝑝𝑝𝑙𝑙𝑙𝑙𝑝𝑝 𝑏𝑏𝑝𝑝𝑝𝑝𝑝𝑝𝑜𝑜𝑙𝑙𝑝𝑝 𝐵𝐵𝑝𝑝𝑝𝑝𝑝𝑝𝑜𝑜𝑙𝑙𝑝𝑝 − 𝑝𝑝𝑜𝑜 − 𝐶𝐶𝑜𝑜𝑝𝑝𝑝𝑝 𝑅𝑅𝑣𝑣𝑝𝑝𝑙𝑙𝑜𝑜 = 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑝𝑝 𝑜𝑜𝑜𝑜 𝑣𝑣𝑙𝑙𝑜𝑜𝑝𝑝𝑝𝑝𝑙𝑙𝑙𝑙𝑝𝑝 𝑐𝑐𝑜𝑜𝑝𝑝𝑝𝑝 Improving the efficiency of a project often requires an initial incremental investment. In most cases the benefit is represented by annual On-Bill utility or LSC savings, and the cost is represented by incremental first cost and future replacement costs. Some packages result in initial construction cost savings relative to the assumed base case scenario, and either energy cost savings (positive benefits), or increased energy costs (negative benefits). In cases where both construction costs and energy-related savings are negative, the construction cost savings are treated as the ‘benefit’ while the increased energy costs are the ‘cost.’ In cases where a measure or package is cost- effective immediately (i.e., upfront construction cost savings and lifetime energy cost savings), B/C ratio cost- effectiveness is represented by “>1”.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 11 Methodology and Assumptions
The lifetime costs or benefits are calculated according to Equation 3.

Equation 3
(𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑐𝑐𝑜𝑜 𝑏𝑏𝑏𝑏𝐴𝐴𝑏𝑏𝑏𝑏𝑏𝑏𝑐𝑐)𝑡𝑡 𝐴𝐴 𝑁𝑁𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑝𝑝 𝑜𝑜𝑜𝑜 𝑣𝑣𝑙𝑙𝑜𝑜𝑝𝑝𝑝𝑝𝑙𝑙𝑙𝑙𝑝𝑝 𝑐𝑐𝑜𝑜𝑝𝑝𝑝𝑝 𝑜𝑜𝑝𝑝 𝑏𝑏𝑝𝑝𝑝𝑝𝑝𝑝𝑜𝑜𝑙𝑙𝑝𝑝 = ∑𝑐𝑐=0 (1+𝑜𝑜)𝑡𝑡 Where:

1. n = analysis term in years

2. r = discount rate
The following summarizes the assumptions applied in this analysis to both methodologies.

3. Analysis term of 30 years

4. Real discount rate of three percent
Both base case measures and alternative energy efficiency measures may have different lifetime assumptions which impact life cycle economics. Future costing of many of the evaluated electrification measures are only based on current cost assumption, which may be overly conservative as the expected growth in heat pump- based technologies is growing rapidly and will likely lead to future cost reductions (at least relative to current fossil fueled equipment) as production volumes increase.

2.1.4 Utility Rates
In coordination with the CA IOU rate team (comprised of representatives from Pacific Gas and Electric (PG&E), Southern California Edison (SCE) and San Diego Gas and Electric (SDG&E)) and two Publicly -Owned-Utilities (POUs) (Sacramento Municipal Utility District (SMUD) and City of Palo Alto Utilities (CPAU)), the Reach Codes Team determined appropriate utility rates for each climate zone to calculate utility costs and determine On-Bill cost- effectiveness for the proposed measures and packages. The utility tariffs, summarized in Chapter 6.2, were determined based on the appropriate rate for each case in each territory. Utility rates were applied to each climate zone based on the predominant IOU serving the population of each zone, with a few climate zones evaluated multiple times under different utility scenarios. Climate Zones 10 and 14 were evaluated with both SCE for electricity and Southern California Gas Company (SoCalGas) for gas and SDG&E tariffs for both electricity and gas since each utility has customers within these climate zones. Climate Zone 5 is evaluated under both PG&E and SoCalGas natural gas rates.

Two POU or municipal utility rates were also evaluated: SMUD in Climate Zone 12 and CPAU in Climate Zone 4.

For cases with onsite generation (i.e. solar photovoltaics (PV)), the approved NBT tariffs were applied along with monthly service fees and hourly export compensation rates for 2024. 7 In December 2022, the California Public Utilities
Commission (CPUC) issued a decision adopting NBT as a successor to NEM 2.0 that went into effect April of 20238 Ut
ility rates are assumed to escalate over time according to the assumptions from the CPUC 2021 En Banc hearings on utility costs through 2030 (California Public Utilities Commission, 2021a). Escalation rates through the remainder of the 30-year evaluation period are based on the escalation rate assumptions within the 2022 TDV factors. The Statewide Natural Gas Residential Average Rate for 2023 through 2030 is projected to be 4.6%. The Electric Residential Average Rate for PG&E, SCE and SDG&E for 2023 through 2030 is projected to be 1.8%,1.6% and 2.8% respectively. A second set of escalation rates were also evaluated to demonstrate the impact that utility cost changes have on cost-effectiveness over time. This utility rate escalation sensitivity analysis, presented in Section 3.2.4, was based on those used within the 2025 LSC factors (LSC replaces TDV in the 2025 code cycle) which assumed steep 7 Hourly export compensation rates were based on the NBT spreadsheet model created by E3 for the CPUC. https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/energy-division/documents/net-energy-metering- nem/nemrevisit/nbt-model--12142022.xlsb
8 https://www.cpuc.ca.gov/nemrevisit
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 12 Methodology and Assumptions
increases in gas rates in the latter half of the analysis period. See Appendix 6.2.7 Fuel Escalation Assumptions for details.

Future electricity tariff structures are expected to evolve over time, and the CPUC has an active proceeding to adopt an income-graduated fixed charge that benefits low-income customers and supports electrification measures. 10 These were not included in this analysis but may be evaluated later in 2024 once the rates are finalized.

2.1.5 Measure Cost Data Collection Approach
To support this effort, a detailed cost study was completed in the summer of 2023 to gather data from a range of contractors to inform actual installed costs in the areas they provide services. These areas include HVAC, plumbing, envelope and air-sealing, and PV installation. Home performance contractors were also approached to collect this data. Collecting this type of data is challenging, both due to contractor reticence to share cost information and due to the timing of the survey which unfortunately coincided with the summer busy season for most contractors , especially HVAC installers. With these known challenges, the outreach effort focused on leveraging existing relationships between the analysis team and contractors to both gain access and provide assurance that all cost data would remain confidential and aggregated. Contractors that provided feedback were nominally compensated for their time.

The collected cost data was intended to represent recent costs for a “typical” retrofit installation. Each home in which a contractor does work has different site-specific issues that will likely affect costs. In addition, different jurisdictions have different levels of building department installation oversight and permit fees. Finally, each contractor typically has a different manufacturer product line they prefer to install. All these factors will influence installed costs

11. The most detailed and broad cost request was for the HVAC contractors, as there are a wide range of equipment replacement scenarios available for an existing ducted gas furnace with central split-system air conditioning. Options range from a base case scenario (like for like swap out), split-system heat pump replacement, dual fuel heat pumps (DFHP), ducted mini-split heat pumps, non-ducted mini-splits, etc. For plumbing contractors, a range of scenarios existed for water heater replacements including like-for-like replacement, HPWHs (in different locations- garage, indoor), need for electrical upgrade for HPWH installation, need for HPWH ducting, etc. Envelope measures focused on attic and wall insulation, window replacement, re-roofing (with Cool Roof materials or not), and attic ceiling plane air- sealing. PV costing included different system sizes, panel upgrades costs, and battery costs. Home performance contractors were asked to provide as much data as they could on the different measure options. All costing information requested was intended to represent most recent installations, in an effort to capture current pricing as best as possible.

The contractors that responded with their cost estimates work in different regions of the state, operate in different markets with (potentially) different local efficiency incentives, do varying amounts of work based on the size of their company, target different market demographic sectors, and install different brands of equipment. All these factors will contribute to price variability. The Team considered applying climate zone specific cost adjustments to reflect some of these differences, but ultimately decided not to since a climate zone is not a monolithic entity with uniform customer pricing throughout. The Team recognizes that “zip code” pricing is a reality, but for simplicity, as well as consistency with Title 24, Part 6 code development costing approaches, applied uniform statewide costs to all measures.

2.2 Measure Details and Cost
This section describes the details of the measures and documents incremental costs. All measure costs were obtained from the contractor survey unless otherwise noted. All contractor provided costs reflect the cost to the customer and 10 https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/electric-costs/demand-response-dr/demand- flexibility-rulemaking
11 One HVAC contractor mentioned that equipment brand alone may contribute to a +/ -%5 variation in the total bid cost.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 13 Methodology and Assumptions
include equipment, labor, permit fees, and required HERS testing. Additional details of the measures can be found in Appendix Section Error! Reference source not found..

All measures are evaluated assuming they are not otherwise required by Title 24. For example, duct sealing is required by code whenever HVAC equipment is altered. For this analysis duct sealing was evaluated for those projects where it is not already triggered by code (i.e., no changes to the heating or cooling equipment). Where appropriate, measure requirements align with those defined in Title 24. In some cases, cost-effective measures were identified that exceed Title 24 requirements, such as attic insulation, cool roofs, and duct sealing.

2.2.1 Building Envelope & Duct Measures
The following are descriptions of each of the efficiency upgrade measures applied in this analysis.

Attic Insulation: Add attic insulation in buildings with vented attic spaces to meet either R-38 or R-49. The pre-1978 vintage assumes an existing condition of R-11, the 1978-1991 vintage assumes an existing condition of R-19, and the 1992-2010 vintage assumes R-30 as the existing insulation level. For pre-1978 vintage homes this measure was also evaluated to include air sealing of the attic. A 14% leakage reduction was modeled such that 15 ACH50 was reduced to 12.9 ACH50 in this measure. The costs for this measure include removing existing insulation .

Air Sealing and Weather-stripping: Apply air sealing practices throughout all accessible areas of the building. For this study, it was assumed that older vintage homes would be leakier than newer buildings and that approximately 30 percent improvement in air leakage is achievable through air sealing of all accessible areas. For modeling purposes, it was assumed that air sealing can reduce infiltration levels from 15 to ten air changes per hour at 50 Pascals pressure difference (ACH50) in the oldest vintages (pre-1978), to ten to seven ACH50 for the 1978-1991 vintage, and seven to five ACH50 in the 1992-2010 vintage.

Cool Roof: For steep slope roofs, install a roofing product rated by the Cool Roof Rating Council (CRRC) with an aged solar reflectance of 0.20 or 0.25 and thermal emittance of 0.75 or higher. This measure only applies to buildings that are installing a new roof as part of the scope of the remodel; the cost and energy savings associated with this upgrade reflects the incremental step between a standard roofing product with one that is CRRC rated with an aged solar reflectance of 0.20 or 0.25. This is similar to cool roof requirements in 2022 Title 24 Section 150.2(b)1Ii but assumes a higher solar reflectance.

Radiant Barrier: Add radiant barrier to any existing home vintage. This measure only applies to buildings that are installing a new roof as part of the scope of the remodel; the cost and energy savings associated with this upgrade reflects the incremental step between a standard roofing product with one that includes a laminated radiant barrier.

Raised Floor Insulation: In existing homes with raised floors and no insulation (pre-1978 and 1978-1991 vintages), add R-19 insulation. An upgraded R-30 floor insulation, assuming no current insulation, was evaluated in the pre-1978 and 1978-1991 vintages.

Wall Insulation: Blow-in R-13 wall insulation in existing homes without wall insulation (pre-1978 vintages).

Window Replacement: Replace existing windows with a non-metal dual-pane product, which has a U-factor equal to

0.28 Btu/hour-ft
2-°F or lower and a Solar Heat Gain Coefficient (SHGC) equal to 0.23 or lower, except in heating dominated climates (Climate Zones 1, 3, 5, and 16) where an SHGC of 0.35 was evaluated.

Duct Sealing, New Ducts, and Duct Insulation: Air seal all ductwork to meet the requirements of the 2022 Title 24, Part 6 Section 150.2(b)1E. For this analysis, final duct leakage values of ten percent (proposed revised leakage rate for 2022 Title 24) was evaluated. The pre-1978 and 1978-1992 vintages assume leaky existing ducts (25-30% leakage).

The 1992-2010 vintage assumes moderately leaky existing ducts (15-20% leakage).

Replacing existing ductwork with entirely new ductwork to meet Sections 150.2(b)1Di and 150.2(b)1Diia of the 2022 Title 24 was also evaluated. This assumed new ducts meet 5% duct leakage and the option of R-6 and R-8 duct insulation in all climate zones.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 14 Methodology and Assumptions
Table 3 summarizes the cost assumptions for the building envelope and HVAC duct improvement measures evaluated.

All the measures in Table 3 assume a 30-year effective useful life.

Table 3. Measure Cost Assumptions – Efficiency & Duct Measures Measure Performance Level
Incremental Cost –
Single Family Building
Pre 1978 1978 – 1991 1992 - 2010
Wall Insulation R-13 $2,950 N/A N/A
Raised Floor
Insulation
R-19 $3,633 $3,633 N/A
R-30 $4,113 $4,113 $4,113
Attic Insulation
R-38 $6,762 $2,555 $1,781
R-49 $7,446 $3,612 $1,827
Air Sealing
10 ACH50 $4,684 N/A N/A
7 ACH50 N/A $4,684 N/A
5 ACH50 N/A N/A $4,684
Cool Roof

0.25 Aged Solar Reflectance
CZs 1-3,5-7,16 $2,407 $2,407 $2,407

0.25 Aged Solar Reflectance
CZs 4, 8-15 $1,203 $1,203 $1,203
Window
U-factor/SHGC

0.28 U-factor. 0.23 SHGC in
CZs 2,4,6-15. $11,463 $11,463 $11,463

0.28 U-factor. 0.35 SHGC in
CZs 1,3,5,26 $11,871 $11,871 $11,871
Radiant Barrier Add Radiant Barrier $893 $893 $893
Duct Sealing 10% nominal airflow $2,590 $2,590 $1,400
All New Duct
System
R-6 ducts;
5% duct leakage $4,808 $4,808 $4,808
R-8 ducts;
5% duct leakage $6,311 $6,311 $6,311

2.2.2 PV Measures
Installation of on-site PV is required in the 2022 Title 24 code for new construction homes, but there are no PV requirements for additions or alterations to existing buildings. PV was evaluated in CBECC-Res according to the California Flexible Installation (CFI) 1 assumptions and 98% solar access. To meet CFI eligibility, the requirements of 2022 Reference Appendices JA11.2.2 (California Energy Commission, 2021b) must be met. A 3 kW PV system was modeled both as a standalone measure as well as coupled with heat pump installations .

The costs for installing PV are summarized in Table 4. They include the first cost to purchase and install the system, future inverter replacement costs, and annual maintenance costs. Upfront solar PV system costs are estimated from the contractor surveys to be $4.58/WDC and are reduced by 30 percent to account for the federal income Residential Clean Energy Credit. The solar panels are estimated to have an effective useful life of 30 years and the inverter 25 years. The inverter replacement cost of $7,000 (future value) is also from the contractor surveys. System maintenance costs are taken from the 2019 PV CASE Report (California Energy Commission, 2017) and are assumed to be California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 15 Methodology and Assumptions
$0.31/WDC present value. These costs do not include costs associated with electrical panel upgrades, which will be necessary in some instances.

Table 4. Measure Descriptions & Cost Assumptions – PV
Measure Performance
Level
Incremental Cost
Pre 1978 1978 – 1991 1992 - 2010
PV 3 kW $9,608

2.2.3 Equipment Fuel Substitution Measures – Heat Pump Equipment The fuel substitution measures are evaluated as replacements at the end of the life of the existing equipment. This means the baseline compared against is usually a like-for-like change-out of the natural gas equipment, and the upgrade is a heat pump.

For most of the space heating and water heating cases, costs for electrical service panel upgrades are not included as it is assumed many existing homes have the service capacity to support converting one appliance from gas to electric.

For homes with existing air conditioners, any incremental electric capacity necessary to support a heat pump space heater is marginal. The same applies for homes with existing electric resistance equipment. Section 3.2.4 presents the impacts for select cases where an upgrade to the electric panel is required.

Heat Pump Space Heating
All the heat pump space heater (HPSH) measures are described below. All were evaluated with HERS verified refrigerant charge aligned with the proposed code requirements for the 2025 Title 24 code. Dual fuel heat pumps (DFHPs) were controlled to lockout furnace operation above 35°F.

DFHP (Existing Furnace): Replace existing ducted air conditioner (AC) with an electric heat pump and install controls to operate the heat pump to use the existing gas furnace for backup heat. A minimum federal efficiency (14.3 SEER2,

11.7 EER2, 7.5 HSPF2) heat pump was evaluated. Savings are compared to a new AC (14.3 SEER2, 11.7 EER2) alongside the existing furnace (78 AFUE).

DFHP (New Furnace): Replace existing ducted AC and natural gas furnace with an electric heat pump and new gas furnace plus controls to operate the heat pump and use the new gas furnace for backup heat. A minimum federal efficiency (14.3 SEER2, 11.7 EER2, 7.5 HSPF2) heat pump and furnace (80 AFUE) were evaluated to replace existing equipment. Savings are compared to a new ducted AC and natural gas furnace (14.3 SEER2, 11.7 EER2, 80 AFUE).

Heat Pump Space Heater: Replace existing ducted AC and natural gas furnace with an electric heat pump. Minimum federal efficiency (14.3 SEER2, 11.7 EER2, 7.5 HSPF2) and higher efficiency (17 SEER2, 12.48 EER2, 9.5 HSPF2) heat pumps were evaluated. Savings are compared to a new ducted natural gas furnace and AC (14.3 SEER2, 11.7 EER2, 80 AFUE).

Ducted Mini-Split Heat Pump (MSHP): Replace existing ducted AC and natural gas furnace with a ducted high efficiency MSHP (16.5 SEER2, 12.48 EER2, 9.5 HSPF2). Savings are compared to a new ducted AC and natural gas furnace (14.3 SEER2, 11.7 EER2, 80 AFUE).

Ductless MSHP: In a home without AC, replace existing wall furnace with a ductless MSHP. A standard efficiency unit meeting minimum federal efficiency standards (14.3 SEER2, 11.7 EER2, 7.5 HSPF2) was evaluated by modeling the variable capacity heat pump (VCHP) compliance credit in CBECC-Res. A premium, higher efficiency upgrade was also California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 16 Methodology and Assumptions
evaluated using CBECC-Res’ detailed VCHP model12 by simulating the performance of a representative high efficiency product (14.3 SEER2, 11.7 EER2, 7.5 HSPF2). Savings are compared to a new natural gas wall furnace with fan distribution (75% AFUE) and window AC (9 CEER).

Over the 30-year analysis period, certain changes are assumed when the equipment is replaced that impact both lifetime costs and energy use. Table 5 presents the lifetime scenario for the DFHP (existing furnace) measure. The analysis assumed a 20-year effective useful lifetime (EUL) for a furnace, a 15-year EUL for an air conditioner and a 15- year EUL for a heat pump. Lifetimes are based on the Database for Energy Efficient Resources (DEER) (California Public Utilities Commission, 2021b). The existing furnace is assumed to be halfway through its EUL at the beginning of the analysis period. After 10 years when the furnace reaches the end of its life and needs to be replaced, it will be subject to new federal efficiency standards for residential gas furnaces that go into effect in 2028 requiring 95 AFU E

13. 5 years later the air conditioner reaches the end of its life and is replaced with a new air conditioner.

For the DFHP upgrade case, after 10 years when the furnace fails it’s expected that the furnace will be abandoned in place since the heat pump serves primary heating and was sized to provide the full design heating load. In this case it is assumed that the fan motor would be replaced with a new aftermarket unit and would operate another 5 years until the heat pump fails and is replaced with a new heat pump and air handler.

The other ducted heat pump cases similarly apply a 95 AFUE furnace in the baseline when the furnace reaches its EUL after 20 years.

Table 5. Lifetime Analysis Replacement Assumptions for DFHP (Existing Furnace) Scenario Year Baseline Upgrade
0 AC fails, install new AC,
keep existing furnace
AC fails, install new HP,
keep existing furnace
10 Furnace fails, install new
95AFUE furnace
Furnace fails, replace fan
motor
15 AC fails, install new AC HP fails, install new HP
and air handler
Costs were applied based on the system capacity from heating and cooling load calculations in CBECC -Res as presented in Table 6. Air conditioner nominal capacity was calculated as the CBECC-Res cooling load, rounded up to the nearest half ton. Heat pump nominal capacity was calculated as the maximum of either the CBECC -Res heating or cooling load, rounded up to the nearest half ton. In both cases a minimum capacity of 1.5- ton was applied as this represents the typical smallest available split system heat pump equipment. Load calculations demonstrated that Climate Zones 2 - 15 were cooling-dominated while Climate Zones 1 and 16 were heating-dominated. In the heating dominated climate zones the heat pump needed to be upsized relative to an air conditioner that only provides cooling. 12 The detailed VCHP option allows for the user to input detailed specifications based on the published National Energy Efficiency Partnership (NEEP) manufacturer specific performance data. It is not currently available for compliance analysis.
13 https://www.energy.gov/articles/doe-finalizes-energy-efficiency-standards-residential-furnaces-save-americans-15- billion#:~:text=These%20furnace%20efficiency%20standards%20were,heat%20for%20the%20living%20space.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 17 Methodology and Assumptions
Table 6. System Sizing by Climate Zone
Climate
Zone
Air Conditioner
Capacity (tons)
Heat Pump
Capacity (tons)
1 1.5 3.0
2 3.5 3.5
3 2.5 2.5
4 3.5 3.5
5 3.0 3.0
6 3.0 3.0
7 3.0 3.0
8 4.0 4.0
9 4.0 4.0
10 4.0 4.0
11 4.5 4.5
12 4.0 4.0
13 4.5 4.5
14 4.0 4.0
15 5.0 5.0
16 3.5 4.0
Table 7 presents estimated first and lifetime costs for the various ducted baseline and heat pump scenarios for 4-ton equipment. Costs include all material and installation labor including providing new 240 V electrical service to the air handler location for all new air handler installations and decommissioning of the furnace for the cases where the furnace is removed. DFHP costs incorporate controls installation and commissioning to ensure the heat pump and the furnace communicate properly and don’t operate at the same time. Future replacement costs do not include any initial costs associated with 240V electrical service or furnace decommissioning.

Table 8 presents estimated first and lifetime costs for the ductless baseline and 2 heat pump scenarios, also for 4-ton heat pump equipment. EULs are based on 20 years for the gas wall furnace, 10 years for the window AC, and 15 years for the heat pump.
14 14 The gas wall furnace and heat pump EULs were based on DEER (California Public Utilities Commission, 2021b) .

Gas wall furnace lifetime was assumed to be the same as for central gas furnace equipment. Room air conditioner EUL was based on the DOE’s latest rulemaking for room air conditioned (Department of Energy, 2023) . DOE determined an average lifetime of 9.3 years, which was rounded up to 10 years for this analysis.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 18 Methodology and Assumptions
Table 7. Ducted HVAC Measure Cost Assumptions – 4-Ton Electric Replacements Case AC + Coil
Gas
Furnace
/AC
DFHP
(Existing
Furnace)
DFHP (New
Furnace)
Min. Eff.

Heat Pump
High Eff.

Heat
Pump
Ducted
MSHP
Base Case - - AC + Coil
Gas
Furnace
/AC
Gas
Furnace
/AC
Gas
Furnace
/AC
Gas
Furnace
/AC
First Cost $10,402 $16,653 $12,362 $20,676 $17,825 $20,802 $18,075 Replacement Cost
(Future Value) $19,365 $19,365 $19,025 $19,025 $16,825 $19,802 $18,075 Replacement Cost
(Present Value) $13,346 $11,639 $12,334 $12,897 $10,800 $12,710 $11,601 Remaining Value
at Year 30 $0 ($1,846) $0 ($1,846) $0 $0 $0
Total Lifecycle
Cost $23,748 $26,446 $24,696 $31,727 $28,625 $33,512 $29,676 Incremental Cost - - $948 $5,281 $2,179 $7,066 $3,230
Table 8. Non-Ducted HVAC Measure Cost Assumptions – 4-Ton Electric Replacements Wall Furnace
+ Window AC
Min. Eff.

Ductless
MSHP
High Eff.

Ductless
MSHP
First Cost $4,075 $17,412 $21,342
Replacement Cost (Future Value) $4,075 $17,412 $21,342
Replacement Cost (Present Value) $3,365 $11,176 $13,698 Remaining Value at Year 30 ($532) $0 $0
Total Lifecycle Cost $6,908 $28,588 $35,040
Incremental Cost - $21,680 $28,132
Heat Pump Water Heating:

The heat pump water heater (HPWH) measures are described below, and costs are presented in Table 9 and Table

10. The most typical scenario in California is a home with existing natural gas storage tank water heaters. However, there are also many existing homes with existing electric resistance storage tank water heaters and this work considers both baselines. This analysis evaluates the following 65-gallon replacement HPWHs:

1. HPWH that meets the federal minimum efficiency requirements of UEF 2.0

2. HPWH that meets the Northwest Energy Efficiency Alliance (NEEA) 15 Tier 3 rating (3.45 UEF)

3. HPWH that meets the NEEA Tier 4 rating and that has demand response (DR) or load shifting control capability (4.02 UEF)

4. 120V HPWH that meets the NEEA Tier 3 rating (3.3 UEF). 15 Based on operational challenges experienced in the past, NEEA established rating test criteria to ensure newly installed HPWHs perform adequately, especially in colder climates. The NEEA rating requires an Energy Factor equal to the ENERGY STAR® performance level and includes requirements regarding noise and prioritizing heat pump use over supplemental electric resistance heating.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 19 Methodology and Assumptions
The four cases above were evaluated with the HPWH located within an attached garage. Additionally, three separate cases for the federal minimum efficiency HPWH were analyzed to consider the impacts of location on performance and cost-effectiveness. These locations included the following:

1. Exterior closet.

2. Interior closet, no ducting.

3. Interior closet, ducted to the outside.

Additional costs for providing electrical wiring to these locations and for providing ductwork were included. Savings are compared to a new 50-gallon natural gas storage water heater (UEF 0.63) or a new 50-gallon electric water heater (UEF 0.92).

For this analysis, a HPWH that just meets the federal minimum efficiency standards of close to 2.0 Uniform Energy Factor (UEF) was evaluated in order to satisfy preemption requirements. However, the Reach Codes Team is not aware of any 2.0 UEF products that are available on the market. The lowest UEF reported for certified products in the Northwest Energy Efficiency Alliance (NEEA)
16 database is 2.73. In fact, of the four certification tiers offered by NEEA for high efficiency HPWHs, those meeting Tier 3 or Tier 4 are the dominant product s on the market today. According to NEEA all major HPWH manufacturers are represented in NEEA’s qualified product list 17 and there are fewer than 10 integrated products certified as Tier 1 or Tier 2, all of which have UEFs greater than 3.0. 18 Therefore, in this analysis, we refer to the NEEA rated HPWH as the “market standard” HPWH.

The HPWH costs for the 120V and NEEA certified units are based on a larger (60 or 65 gallon) HPWH, as most contractors are upsizing the HPWH tank size relative to an equal volume, but higher capacity gas storage water heater.

Costs include all material and installation labor including providing a new 240 V electrical service to the water heater location (not needed for the 120V product). Water heating equipment lifetimes are based on DOE’s recent water heater rulemaking (Department of Energy, 2022) and assume 15-year EULs for both the baseline water heaters and the HPWHs.
19 Future replacement costs for 240V HPWHs do not include any initial costs associated with 240V electrical service, condensate disposal, etc.

Table 9. Water Heating Measure Cost Assumptions – Existing Gas Gas
Storage
Water
Heater
240V
Fed.

Min.

HPWH
240V
Market
Std. NEEA
HPWH
240V
Market
Std. NEEA
HPWH +
DR
120V
Market
Std. NEEA
HPWH
240V Fed.

Min.

HPWH,
Exterior
Closet
240V Fed.

Min. HPWH,
Interior
Closet, Not
Ducted
240V Fed.

Min. HPWH,
Interior
Closet,
Ducted
First Cost $2,951 $7,283 $8,144 $8,144 $5,844 $7,702 $7,363 $8,442 Replacement Cost
(Future Value) $2,951 $6,413 $7,274 $7,274 $5,101 $6,413 $6,413 $6,413 Replacement Cost
(Present Value) $1,894 $4,116 $4,669 $4,669 $3,274 $4,116 $4,116 $4,116 Total Lifecycle Cost $4,845 $11,399 $12,813 $12,813 $9,118 $11,818 $11,479 $12,558 Incremental Cost - $6,554 $7,968 $7,968 $4,273 $6,973 $6,634 $7,713 16 Based on operational challenges experienced in the past, NEEA established rating test criteria to ensure newly installed HPWHs perform adequately, especially in colder climates. The NEEA rating requires products comply with ENERGY STAR and includes requirements regarding noise and prioritizing heat pump use over supplemental electric resistance heating.
17 https://neea.org/success-stories/heat-pump-water-heaters 18 As of 12/21/23: https://neea.org/img/documents/residential-unitary-HPWH-qualified-products-list.pdf 19 The recent DOE rulemaking references a lifetime of 14 years for gas storage water heaters and 14.8 years for electric storage water heaters. 15 years for each was used in this analysis for both types for simplification.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 20 Methodology and Assumptions
Table 10 presents similar costs to Table 9, except that the costs assume replacement of an existing 50-gallon electric storage water heater and does not include the 240 V electrical service cost.

Table 10. Water Heating Measure Cost Assumptions – Existing Electric Resistance Electric
Storage
Water
Heater
240V
Fed. Min.

HPWH
240V
Market
Std. NEEA
HPWH
240V
Market
Std. NEEA
HPWH +
DR
120V
Market
Std. NEEA
HPWH
240V Fed.

Min.

HPWH,
Exterior
Closet
240V Fed.

Min. HPWH,
Interior
Closet, Not
Ducted
240V Fed.

Min. HPWH,
Interior
Closet,
Ducted
First Cost $2,583 $6,413 $7,274 $7,274 $5,101 $6,413 $6,413 $7,492 Replacement Cost
(Future Value)
$2,583 $6,413 $7,274 $7,274 $5,101 $6,413 $6,413 $6,413 Replacement Cost
(Present Value)
$1,658 $4,116 $4,669 $4,669 $3,274 $4,116 $4,116 $4,116 Total Lifecycle Cost $4,241 $10,529 $11,943 $11,943 $8,375 $10,529 $10,529 $11,608 Incremental Cost - $6,288 $7,702 $7,702 $4,134 $6,288 $6,288 $7,367 California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 21 Results
3 Results
The primary objective of the evaluation is to identify cost-effective energy upgrade measures and packages for existing single family buildings, to support the design of local ordinances requiring upgrades, which may be triggered by different events, such as at the time of a significant remodel or at burnout of mechanical equipment. In this report, the 1992-2010 vintage is shown for the equipment measures because it is the most conservative case (lowest loads) , while the pre-1978 vintage is shown for the envelope and duct measures because some of those measures only apply to the pre-1978 vintage. A full dataset of all results can be downloaded at https://localenergycodes.com/content/resources.

Results alongside policy options can also be explored using the Cost-effectiveness Explorer at https://explorer.localenergycodes.com/.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 22 Results

3.1 Cost-Effectiveness Results
The extensive analysis for this type of report leads to an overwhelming number of scenarios including different base cases, house vintages, replacement options, and climate zones. To simplify the reporting, the Statewide Reach Codes Team has relied on graphical representation of select key cases indicating high level measure cost effectiveness from either an On-Bill perspective, an LSC perspective, both metrics, or neither. Figure 1 through Figure 13 present this reduced set of results of the LSC and On-Bill cost-effectiveness conclusions across the 16 climate zones. In the cases where there are multiple utilities serving a single climate zone, an asterisk “*” label is added to separately show the alternate utility cases. These graphs provide a general sense of the findings. A full dataset of all results can be downloaded at https://localenergycodes.com/content/resources. Results alongside policy options can also be explored using the Cost-effectiveness Explorer at https://explorer.localenergycodes.com/.

3.1.1 HPSH Measures
Figure 1 through Figure 5 show the cost-effectiveness of space heating equipment replacement measures for the 1992-2010 vintage including the following cases. The 1992-2010 vintage results are presented here as this is the most conservative scenario for HPSH measures. In general, where a HPSH measure is cost -effective for a new home it was also found to be cost-effective for older homes.
• Dual fuel heat pump with existing furnace as backup.
• Standard efficiency ducted central heat pump replacement. • High efficiency ducted central heat pump replacement. • Ducted mini-split heat pump replacement.
• Standard efficiency ducted central heat pump replacement with 3kW PV system.

Figure 1: DFHP with Existing Furnace Figure 2: Standard Efficiency HPSH California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 23 Results
Figure 3: High Efficiency HPSH Figure 4: Ducted MSHP
Figure 5: HPSH + PV
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 24 Results

3.1.2 HPWH Measures
Figure 6 through Table 11 show the cost-effectiveness of water heater measures for the 1992-2010 vintage including the following cases. HPWH energy savings and LSC cost-effectiveness is not sensitive to home vintage but rather depends on the magnitude of hot water loads, which are typically driven by the number of occupants. On-Bill cost- effectiveness does vary slightly by vintage due to the impact of the electrification tariff relative to the load profile of the existing home. The impact is largest for the HPWH + PV case where On-Bill cost-effectiveness improves for older homes or homes with overall higher energy use resulting in less exports to the grid for a fixed size PV system. • 240V federal minimum HPWH
• 240V market standard NEEA HPWH
• 120V market standard NEEA HPWH
• 240V federal minimum HPWH with 3kW PV
Figure 6: 240V Federal Minimum HPWH Figure 7: 240V Market Standard NEEA HPWH Figure 8: 120V Market Standard NEEA HPWH Figure 9: 240V Federal Minimum HPWH + PV California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 25 Results
• Envelope and Duct Measures
Figure 10 through Figure 13 show the cost-effectiveness results of envelope and duct measures for the pre-1978 vintage including the following measures. The pre-1978 vintage is presented as representing the most favorable existing conditions for cost-effective upgrades. Newer homes with higher performing envelope may still benefit from these types of upgrade measures, but cost-effectiveness is reduced. Some measures, like R-13 wall insulation, aren’t applicable to newer homes which would have been constructed originally with insulated walls. • New R-6 ducts
• 10% duct leakage
• R-13 wall insulation
• R-49 attic insulation
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 26 Results
Figure 10: R-6 Ducts
Figure 11: 10% Duct Leakage
Figure 12: R-13 Wall Insulation Figure 13: R-49 Attic Insulation

3.2 Climate Zone Case Studies
To better understand the details of the results, a few climate zones were selected to provide a more detailed presentation of cost-effectiveness results. Section 3.2.1 through 3.2.3 show the first-year incremental cost, first-year utility savings, and NPV for a variety of cases. Section 3.2.4 shows the sensitivity of the cost effectiveness results due to varying utility escalation rates, the impact of CARE rates, future equipment cost assumptions, and the need for electrical panel upgrades. The climate zones were selected to be representative of areas of significant reach code activity. Please refer to the Cost-Effectiveness Explorer (Statewide Reach Codes, 2023) or the source dataset for the full analysis.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 27 Results

3.2.1 HPSH Cost-Effectiveness
Cost-effectiveness of heat pump space heating measures for Climate Zones 12 and 16 is summarized in Table 11 and Table 12 below. In Climate Zone 12, HPSH measures are cost-effective based on LSC in all cases except the ductless MSHP cases and are cost-effective On-Bill with SMUD rates in all cases except the DFHP case with a new furnace and the ductless MSHP cases. These measures are cost-effective On-Bill with PGE for the DFHP with an existing furnace and ducted MSHP measures. Climate Zone 16 provides an example of HPSH cost-effectiveness in a cold climate where almost all HPSH measures are cost effective based on LSC but not cost-effective On-Bill.

Table 11. HPSH CZ 12 [1992-2010]
Measure
First
Incremental
Cost
2025 LSC
NPV

PGE SMUD
First-year
Utility
Savings
On-Bill
NPV
First-year
Utility
Savings
On-Bill
NPV
DFHP Existing Furnace $1,960 $7,093 ($19) $1,633 $247 $7,693 DFHP New Furnace $4,023 $3,915 ($34) ($3,134) $234 $2,979 HPSH (Std Efficiency) $1,172 $6,990 ($147) ($2,151) $246 $6,812 HPSH (High Efficiency) $4,149 $5,366 $13 ($3,368) $300 $3,160 Ducted MSHP $1,421 $9,136 $10 $378 $298 $6,951
Ductless MSHP (Std Efficiency) $13,336 ($9,175) $30 ($18,039) $276 ($12,428) Ductless MSHP (High Efficiency) $17,266 ($6,753) $409 ($15,853) $423 ($15,532) HPSH + PV $10,780 $5,289 $452 ($59) $885 $9,821
Table 12. HPSH CZ 16 [1992-2010]
Measure
First
Incremental
Cost
2025 LSC
NPV
PGE
First-year
Utility Savings On-Bill NPV
DFHP Existing Furnace $2,397 $7,289 ($116) ($1,891)
DFHP New Furnace $4,757 $2,457 ($133) ($6,322)
HPSH (Std Efficiency) $2,725 $11,142 ($480) ($8,532)
HPSH (High Efficiency) $5,701 $12,099 ($204) ($7,125)
Ducted MSHP $2,155 $16,554 ($221) ($2,853)
Ductless MSHP (Std Efficiency) $13,336 ($134) ($170) ($19,742) Ductless MSHP (High Efficiency) $17,266 $9,397 $539 ($10,031) HPSH + PV $12,333 $10,640 $316 ($1,949)
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 28 Results

3.2.2 HPWH Cost-Effectiveness
Cost-effectiveness of heat pump water heating measures for Climate Zones 12 and 16 is summarized in Table 13 and Table 14 below. This sensitivity study looks at a wider range of HPWH tank locations and whether or not the unit has ducting for supply and exhaust air. All the HPWH measures in Climate Zones 12 and 16 are cost effective based on LSC.

Table 13. HPWH CZ 12 [1992-2010]
Measure
First
Incremental
Cost
2025 LSC
NPV

PGE SMUD
First-Year
Utility
Savings
On-Bill
NPV
First-Year
Utility
Savings
On-Bill
NPV
240V Fed. Min. HPWH $4,332 $3,536 ($213) ($8,738) $191 $477 240V Market Std. NEEA
HPWH $5,193 $4,304 ($82) ($7,164) $230 ($56)
240V Market Std. NEEA
HPWH + DR $5,193 $5,536 ($21) ($5,773) $248 $362
120V Market Std. NEEA
HPWH $2,893 $9,730 ($2) ($1,651) $254 $4,203
240V Fed. Min. HPWH
(Exterior Closet) $4,751 $2,834 ($224) ($9,431) $186 ($78) 240V Fed. Min. HPWH
(Interior Closet) $4,413 $3,123 ($71) ($6,138) $188 ($235) 240V Fed. Min. HPWH
(Interior Closet, ducted) $5,492 $3,359 ($202) ($9,505) $205 ($231) 240V Fed. Min. HPWH + PV $13,940 $3,567 $577 ($2,300) $831 $3,486 Table 14. HPWH CZ 16 [1992-2010]
Measure
First
Incremental
Cost
2025 LSC
NPV
PGE
First-Year Utility
Savings On-Bill NPV
240V Fed. Min. HPWH $4,332 $4,186 ($250) ($9,307)
240V Market Std. NEEA HPWH $5,193 $4,088 ($160) ($8,652) 240V Market Std. NEEA HPWH + DR $5,193 $5,653 ($79) ($6,804 120V Market Std. NEEA HPWH $2,893 $10,646 ($13) ($1,602) 240V Fed. Min. HPWH (Exterior Closet) $4,751 $3,317 ($268) ($10,154) 240V Fed. Min. HPWH (Interior Closet) $4,413 $5,004 ($18) ($4,690) 240V Fed. Min. HPWH (Interior Closet,
ducted) $5,492 $4,857 ($202) ($9,174)
240V Fed. Min. HPWH + PV $13,940 $5,049 $620 ($1,043)
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 29 Results

3.2.3 Envelope & Duct Improvement Cost-Effectiveness
Cost-effectiveness of envelope and duct measures for Climate Zones 3, 10, and 12 is summarized in Table 15 through Table 17.

Table 15. Envelope and Duct Measures CZ 3 [Pre-1978]
Measure
First
Incremental
Cost
2025 LSC
NPV
PG&E
First-year Utility
Savings On-Bill NPV
R-6 Ducts $4,808 $2,851 $188 $463
R-8 Ducts $6,311 $1,747 $198 ($776)
10% Duct Sealing $2,590 $1,956 $104 $397
R-13 Wall Insulation $2,950 $3,476 $144 $1,221
R-38 Attic Insulation $6,762 ($1,567) $127 ($3,178)
R-49 Attic Insulation $7,446 ($1,768) $139 ($3,520)
R-30 Raised Floor Insulation $4,113 $9,008 $224 $2,975
Cool Roof (0.20 Ref) $893 ($2,419) ($18) ($1,811)
Table 16. Envelope and Duct Measures CZ 10 [Pre-1978]
Measure
First
Incremental
Cost
2025 LSC
NPV

SCE/SCG SDGE
First-year
Utility
Savings
On-Bill
NPV
First-
year
Utility
Savings
On-Bill
NPV
R-6 Ducts $4,808 $7,463 $783 $13,168 $1,100 $22,155
R-8 Ducts $6,311 $6,326 $800 $12,076 $1,125 $21,268
10% Duct Sealing $2,590 $3,438 $370 $5,969 $518 $10,166 R-13 Wall Insulation $2,950 $1,795 $179 $1,476 $250 $3,494 R-38 Attic Insulation $6,762 $664 $416 $2,951 $582 $7,654 R-49 Attic Insulation $7,446 $796 $467 $3,435 $655 $8.756 R-30 Raised Floor Insulation $4,113 ($999) ($29) ($4,235) ($46) ($4,687) Cool Roof (0.20 Ref) $893 $428 $174 $2,647 $246 $4,656
Table 17. Envelope and Duct Measures CZ 12 [Pre-1978]
Measure
First
Incremental
Cost
2025 LSC
NPV

PG&E SMUD
First-year
Utility
Savings
On-Bill
NPV
First-
year
Utility
Savings
On-Bill
NPV
R-6 Ducts $4,808 $11,609 $804 $14,727 $413 $5,816
R-8 Ducts $6,311 $10,722 $828 $13,849 $427 $4,711
10% Duct Sealing $2,590 $6,418 $397 $7,280 $222 $3,281
R-13 Wall Insulation $2,950 $5,774 $262 $4,054 $187 $2,342 R-38 Attic Insulation $6,762 $3,727 $499 $5,461 $261 $19 R-49 Attic Insulation $7,446 $4,092 $552 $6,063 $288 $33 R-30 Raised Floor Insulation $4,113 $5,245 $27 ($1,176) $156 $1,175 Cool Roof (0.20 Ref) $893 ($354) $154 $2,123 $44 ($386) California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 30 Results

3.2.4 Sensitivities
Table 18 shows the On-Bill NPV results of Climate Zone 12 with PG&E utility rates and the impacts of escalation rates, and CARE rates. The “Standard Results” in Table 18 assumes the escalation rates used in the analysis presented elsewhere in this report. Table 19 shows the impact of electrical panel upgrades. The “Standard Results” in Table 19 does not assume a panel upgrade is required.

Table 18. Sensitivity Analysis Results for On-Bill NPV Cost-Effectiveness in Climate Zone 12, PG&E Measure Vintage Standard
Results
2025 LSC
Escalation CARE
DFHP Existing Furnace 1992-2010 $1,063 $8,443 $1,884
DFHP New Furnace 1992-2010 ($6,770) $383 ($5,846)
HPSH (Std Efficiency) 1992-2010 ($2,151) $6,011 ($220)
HPSH (High Efficiency) 1992-2010 ($3,368) $4,987 ($2,721) Ducted MSHP 1992-2010 $378 $8,729 $1,057
Ductless MSHP (Std Efficiency) 1992-2010 ($18,039) ($10,732) ($17,623) Ductless MSHP (High Efficiency) 1992-2010 ($15,853) ($8,091) ($18,460) HPSH + PV 1992-2010 ($59) $8,822 ($1,255)
240V Fed. Min. HPWH 1992-2010 ($8,738) ($2,433) ($6,448) 240V Market Std. NEEA HPWH 1992-2010 ($7,164) ($694) ($5,918) 240V Market Std. NEEA HPWH + DR 1992-2010 ($5,773) $770 (5,014) 120V Market Std. NEEA HPWH 1992-2010 ($1,651) $4,930 (1,038) 240V Fed. Min. HPWH (Exterior Closet) 1992-2010 ($9,431) ($3,184) ($7,055) 240V Fed. Min. HPWH (Interior Closet) 1992-2010 ($6,138) ($1,000) ($5,098) 240V Fed. Min. HPWH (Interior Closet, ducted) 1992-2010 ($9,505) ($2,836) ($7,271) 240V Fed. Min. HPWH + PV 1992-2010 ($2,300) $4,952 ($4,858) R-6 Ducts Pre-1978 $14,727 $18,685 $8,592
R-8 Ducts Pre-1978 $13,849 $17,990 $7,532
10% Duct Sealing Pre-1978 $7,280 $9,752 $4,294
R-13 Wall Insulation Pre-1978 $4,054 $6,898 $2,196
R-38 Attic Insulation Pre-1978 $5,461 $8,126 $1,668
R-49 Attic Insulation Pre-1978 $6,063 $8,978 $1,864
R-30 Raised Floor Insulation Pre-1978 ($1,776) $2,468 ($1,602) Cool Roof (0.20 Ref) Pre-1978 $2,123 $1,848 $851
Table 19. Electric Panel Upgrade Sensitivity for CZ 12 [1992-2010] Measure Standard Results Electric Panel Upgrade
On-Bill NPV LSC NPV On-Bill NPV LSC NPV
HPSH (Std Efficiency) ($2,151) $6,990 ($4,931) $4,210
240V Fed. Min. HPWH ($8,738) $3,536 ($11,624) $756
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 31 Results

3.3 Gas Pathways for Heat Pump Replacements
Many jurisdictions are exploring policy options to accelerate the decarbonization of existing homes. A recent Ninth Circuit Court ruling in California Rest. Ass'n v. City of Berkeley 20 invalidated Berkeley’s ordinance banning the installation of gas infrastructure in new construction. The ruling stated that the ordinance effectively banned covered products and was preempted by the Energy Policy and Conservation Act (“EPCA”), 42 U.S.C. § 6297(c). Given the possible impacts of that ruling, the Reach Codes Team analyzed policy options targeting equipment replacements that allow for the installation of either electric or gas-fueled equipment. These packages include gas equipment combined with additional efficiency measures resulting in options that are reasonably energy or LSC cost equivalent, to the extent feasible.

For space heating, the heat pump path is a DFHP (existing furnace).. The gas pathway is a new air conditioner with the following list of efficiency upgrades:
• 400 cfm/ton system airflow (HERS verified).
• 0.35 W/cfm fan efficacy (HERS verified).
• Refrigerant charge verification (HERS verified).
• R-8 ducts, 5% leakage (HERS verified).
• R-49 (from R-30) attic insulation.
• Air sealing of the ceiling from 7 to 6.5 ACH50.

The two pathways are presented in Figure 14 comparing total LSC energy use relative to the existing home for the 1992-2010 vintage. In most climate zones, the DFHP (existing furnace) path results in higher energy savings, in the milder climates the air conditioner path saves marginally more energy. A reach code that establishes requirements when an air conditioner is replaced or installed new, could allow for either a heat pump to be installed or an air conditioner as long as the performance measures listed above are met. Note that in this analysis a DFHP (existing furnace) was used; however, a reach code could require a different heat pump measure for the heat pump path. This approach aligns with the CEC’s proposal for the 2025 Title 24 code cycle for heat pump alterations in single family homes (California Energy Commission, 2023).
20 California Rest. Ass'n v. City of Berkeley, 65 F.4th 1045 (9th Cir. 2023) amended by 89 F.4th 1094 (9th Cir. 2024).

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 32 Results
Figure 14. Heat pump space heater path compared to the air conditioner path.

For water heating, the federal minimum HPWH case was used to develop the package. The HPWH was compared to a new gas storage water heater with a 50% solar thermal backup system.

Figure 15. Heat pump water path compared to gas with solar thermal.

The two pathways are presented in Figure 15 comparing total LSC energy use relative to the existing home for the 1992-2010 vintage. In all climate zones, the heat pump path results in higher energy savings than the gas path. A reach code that establishes requirements when a water heater is replaced could allow for either a HPWH to be installed or a gas water heater in combination with a solar thermal system that meets the solar fraction requirements listed above.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 33 Recommendations and Discussion
4 Recommendations and Discussion
This analysis evaluated the feasibility and cost-effectiveness of retrofit measures in California existing homes built before 2010. The Statewide Reach Codes Team used both On-Bill and LSC-based LCC approaches to evaluate cost- effectiveness and quantify the energy cost savings associated with energy efficiency measures compared to the incremental costs associated with the measures.

Conclusions and Discussion:

1. Envelope measures. Improving envelope performance is very cost-effective in many older homes. In addition to reducing utility costs these measures provide many other benefits such as improving occupant comfort and satisfaction and increasing a home’s ability to maintain temperatures during extreme weather events and power outages. Below is a discussion of the results of specific measures. a. Adding attic insulation is cost effective based on both LSC and On-Bill in many climate zones in homes with no more than R-19 existing attic insulation levels. Increasing attic insulation from R-30 to R-49 was still found to be cost-effective based on at least one metric in the colder and hotter climates of Climate Zone 10 (SDG&E territory only) through 16.
b. Insulating existing uninsulated walls is very cost-effective based on both metrics everywhere except Climate Zones 6 and 7 (in Climate Zone 8 it’s only cost-effective based on LSC). c. Adding R-19 or R-30 floor insulation is cost-effective based on LSC in the older two vintages (Pre-1978 and 1978-1991) in all climate zones except Climate Zones 6-10. d. Replacing old single pane windows with new high-performance windows has a very high cost and is typically not done for energy savings alone. However, energy savings are substantial and justify cost- effectiveness of this measure based on at least one metric in Climate Zones 4, 8 through 12 (PG&E territory only), and 13 through 16.
e. At time of roof replacement, a cool roof with an aged solar reflectance of 0.25 was found to be cost- effective in Climate Zones 4, 6 through 12 (PG&E territory only), and 13 through 15. When the roof deck is replaced during a roof replacement, adding a radiant barrier is low cost and provides substantial cooling energy savings to be cost-effective in almost all climate zones and homes.

2. Duct measures: Many older homes have old, leaky duct systems that should be replaced when they reach the end of life, typically 20-30 years. In this case, installing new ducts was found to be cost-effective based on at least one metric (both in most cases) everywhere except mild Climate Zone 7 and Climate Zones 5 and 6 in the 1978-1991 vintage. If duct systems still have remaining life they should be sealed and tested to meet 10% leakage or lower; however, duct upgrades alone were only found to be cost-effective for newer homes in Climate Zones 10 (SDG&E territory only), 11, and 13 through 16. Duct upgrades may be able to be coupled with other measures to reduce the cost.

3. Heat pump space heating: HPSHs were found to be LSC cost-effective in many cases. The DFHP (existing furnace) was LSC cost-effective everywhere except Climate Zone 15. The HPSH was LSC cost-effective everywhere except Climate Zones 8 and 15.
a. Challenges to On-Bill cost-effectiveness include higher first costs and higher first-year utility costs due to higher electricity tariffs relative to gas tariffs. SMUD and CPAU are two exceptions where first year utility costs are lower for heat pumps than for gas equipment. Table 11 shows the impact of utility rates on cost-effectiveness of HPSH where the standard and high efficiency HPSH and the HPSH + PV measures are cost-effective under SMUD but not PG&E. Even with higher first year utility bills, there were some cases that still proved On-Bill cost-effective including the DFHP with an existing furnace in the central valley and northern coastal PG&E territories, the ducted MSHP in the central valley as well as Climate Zone 14 in SDG&E territory, and the HPSH + PV measure in CZ 3-5 (PGE), 7-11, and 12 (SMUD) – 15.
b. The ductless MSHPs, evaluated for homes with existing ductless systems, were only found to be cost- effective based on either metric in Climate Zones 1 and 16. Ductless MSHPs have a high incremental cost because it is a more sophisticated system than the base model of a wall furnace with a window AC unit. However, the ductless MSHP would provide greater comfort benefits if properly installed to California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 34 Recommendations and Discussion
directly condition all habitable spaces (as is required under the VCHP compliance credit as evaluated in this study) which may be an incentive for a homeowner to upgrade their system. c. Higher efficiency equipment lowered utility costs in all cases and improved cost-effectiveness in many cases, particularly with a ducted MSHP.

4. Heat pump water heating: All the HPWH measures were LSC cost-effective in all climate zones. Most measures were not On-Bill cost-effective with the exception of the HPWH + PV which was cost-effective On- Bill in CPAU, SMUD, and SDG&E territories in addition to Climate Zones 11, 13, 14, and 15. The HPWH measures share many of the same challenges as the HPSH measures to achieving cost-effectiveness including high first costs and utility rates and assumptions. Table 13 shows the impact of utility rates on cost- effectiveness where some HPWH measures are cost-effective under SMUD utility rates but are not cost- effective anywhere under PG&E rates in Climate Zone 12. a. Various HPWH locations were also explored, however there are some factors outside of cost- effectiveness that should also be considered.
i. HPWHs in the conditioned space can provide benefits such as free cooling during the summer, reduced tank losses, and shorter pipe lengths, and in some cases show improved cost-effectiveness over garage located HPWHs. However, there are various design considerations such as noise, comfort concerns, and condensate removal. Ducting the inlet and exhaust air resolves comfort concerns but adds costs and complexity. Split heat pump water heaters address these concerns, but currently there are limited products on the market and there is a cost premium relative to the packaged products. ii. Since HPWHs extract heat from the air and transfer it to water in the storage tank, they must have adequate ventilation to operate properly. Otherwise, the space cools down over time, impacting the HPWH operating efficiency. This is not a problem with garage installations but needs to be considered for water heaters located in interior or exterior closets. For the 2025 Title 24 code the CEC is proposing that all HPWH installations meet mandatory ventilation requirements (California Energy Commission, 2023).

5. The contractor surveys revealed overall higher heat pump costs than what has been found in previous analyses. This could be due to incentive availability raising demand for heat pumps and thereby increasing the price. This price increase may be temporary and may come down once the market stabilizes. There are also new initiatives to obtain current costs including the TECH Clean California program 21 that publishes heat pump
data and costs; however, at the time of this analysis, the TECH data did not contain incremental costs because it only had the heat pump costs but not the gas base case costs.

6. Table 18 shows how CARE rates and escalation rate assumptions will impact cost -effectiveness. a. Applying CARE rates in the IOU territories has the overall impact to increase utility cost savings for an all-electric building compared to a code compliant mixed fuel building, improving On-Bill cost- effectiveness. This is due to the CARE discount on electricity being higher than that on gas. The reverse occurs with efficiency measures where lower utility rates reduce savings and subsequently reduce cost-effectiveness.
b. If gas tariffs are assumed to increase substantially over time, in-line with the escalation assumption from the 2025 LSC development, cost-effectiveness substantially improves for the heat pump measures over the 30-year analysis period and many cases become cost-effective that were not found to be cost-effective under the CPUC / 2022 TDV escalation scenario. There is much uncertainty surrounding future tariff structures as well as escalation values. While it’s clear that gas rates will increase, how much and how quickly is not known. Future electricity tariff structures are expected to evolve over time, and the CPUC has an active proceeding to adopt an income-graduated fixed charge that benefits low-income customers and supports electrification measures for all customers. 22 The
CPUC will decide in mid-2024 and the new rates are expected to be in place later that year or in 2025. 21 TECH Public Reporting Home Page (techcleanca.com)
22 https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/electric-costs/demand-response-dr/demand- flexibility-rulemaking
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 35 Recommendations and Discussion
While the anticipated impact of this rate change is lower volumetric electricity rates, the rate design is not finalized. While lower volumetric electricity rates provide many benefits, it also will make building efficiency measures harder to justify as cost-effective due to lower utility bill cost savings.

7. Under NBT, utility cost savings for PV are substantially less than what they were under prior net energy metering rules (NEM 2.0); however, savings are sufficient to be On-Bill cost-effective in all climate zones except Climate Zones 1 through 3 and 5 through 6.
a. Combining a heat pump with PV allows the additional electricity required by the heat pump to be offset by the PV system while also increasing on-site utilization of PV generation rather than exporting the electricity back to the grid at a low rate.
b. While not evaluated in this study, coupling PV with battery systems can be very advantageous under NBT increasing utility cost savings because of improved on-site utilization of PV generation and fewer exports to the grid.

Recommendations:

1. There are various approaches for jurisdictions who are interested in reach codes for existing buildings. Some potential approaches are listed below along with key considerations. a. Prescriptive measures: Non-preempted measures that are found to be cost-effective may be prescriptively required in a reach code. One example of this type or ordinance is a cool roof requirement at time of roof replacement. Another example is requiring specific cost-effective measures for larger remodels, such as high-performance windows when new windows are installed or duct sealing and testing where ducts are in unconditioned space. b. Replacement equipment: This flavor of reach code sets certain requirements at time of equipment replacement. This study evaluated space heating and water heating equipment. Where a heat pump measure was found to be cost-effective based on either LSC or On-Bill, this may serve as the basis of a reach code given the following considerations.
i. Where reach codes reduce energy usage and are not just fuel switching, cost-effectiveness calculations are required and must be based on equipment that does not exceed the federal minimum efficiency requirements.
ii. Where reach codes are established using cost-effectiveness based on LSC, utility bill impacts and the owner’s first cost should also be reviewed and considered. iii. A gas path should also be prescriptively allowed to safely satisfy federal preemption requirements considering the CRA v. Berkeley case.
23 Additional requirements may apply to
the gas path, as described in Section 3.3, as long as the paths are reasonably energy or cost equivalent.
c. “Flexible Path”, minimum energy savings target: This flexible approach establishes a target for required energy savings based on a measure or a set of measures that were found to be cost-effective based on either LSC or On-Bill. A points menu compares various potential upgrades ranging from efficiency, PV, and fuel substitution measures, based on site or source energy savings. The applicant must select upgrades that individually or in combination meet the minimum energy savings target . The measures used to set the target should be non-preempted measures.

3. Consider extending relevant proposals made by the CEC for the 2025 Title 24 code (California Energy Commission, 2023) in ordinances that apply under the 2022 Title 24 code, such as the following:
a. Mandatory ventilation requirements for HPWH installations (Section 110.3(c)7). 23 https://www.publichealthlawcenter.org/sites/default/files/2024-01/CRA-v-Berkeley-Ninth-Circuit-Opinion-Jan2024.pdf California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 36 Recommendations and Discussion
b. Requirement for HERS verified refrigerant charge verification for heat pumps in all climate zones (Table 150.1-A24).

5. Education and training can play a critical role in ensuring that heat pumps are installed, commissioned, and controlled properly to mitigate grid impacts and maximize occupant satisfaction. Below are select recommended strategies.
a. The Quality Residential HVAC Services Program
25 is an incentive program to train California
contractors in providing quality installation and maintenance while advancing energy -efficient technologies in the residential HVAC industry. Jurisdictions can market this to local contractors to increase the penetration of contractors skilled in heat pump design and installation. b. Educate residents and contractors of available incentives, tax credits, and financing opportunities. c. Educate contractors on code requirements. Energy Code Ace provides free tools, trainings, and resource to help Californians comply with the energy code. Contractors can access interactive compliance forms, fact sheets, and live and recorded trainings, among other things, on the website:
https://energycodeace.com/. Jurisdictions can reach out to Energy Code Ace directly to discuss offerings.

6. Health and safety
a. Combustion Appliance Safety and Indoor Air Quality: Implementation of some of the recommended measures will affect the pressure balance of the home which can subsequently impact the safe operation of existing combustion appliances as well as indoor air quality. Buildings with older gas appliances can present serious health and safety problems which may not be addressed in a remodel if the appliances are not being replaced. It is recommended that the building department require inspection and testing of all combustion appliances located within the pressure boundary of the building after completion of retrofit work that involves air sealing or insulation measures. b. Jurisdictions may consider requiring mechanical ventilation in homes where air sealing has been conducted. In older buildings, outdoor air is typically introduced through leaks in the building envelope.

After air sealing a building, it may be necessary to forcefully bring in fresh outdoor air using supply and/or exhaust fans to minimize potential issues associated with indoor air quality. 24 This requirement does not show up in the Express Terms for alterations in Section 150.2(b)1F , but the Statewide Reach Codes Team expects that it will be added to the next release of the proposed code language in the 45 -day language as it aligns with the proposal made by the Codes and Standards Enhancement Team (Statewide CASE Team, 2023).
25 https://qualityhvac.frontierenergy.com/
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 37 References
5 References
California Energy Commission. (2017). Rooftop Solar PV System. Measure number: 2019-Res-PV-D Prepared by Energy and Environmental Economics, Inc. Retrieved from https://efiling.energy.ca.gov/getdocument.aspx?tn=221366 California Energy Commission. (2021b). Final Express Terms for the Proposed Revisions to the 2022 Energy Code Reference Appendices. Retrieved from https://efiling.energy.ca.gov/Lists/DocketLog.aspx?docketnumber=21- BSTD-01
California Energy Commission. (2022b). 2022 Reference Appendices for the 202 Building Energy Efficiency Standards.

CEC-400-2022-010-AP. Retrieved from https://www.energy.ca.gov/sites/default/files/2022-08/CEC-400- 2022-010-AP.pdf
California Energy Commission. (2022c, Feb). 2022 Single-Family Residential Alternative Calculation Method Reference Manual. CEC-400-2022-008-CMF-REV. Retrieved from https://www.energy.ca.gov/publications/2022/2022- single-family-residential-alternative-calculation-method-reference-manual California Energy Commission. (2023). 2025 Energy code Hourly Factors. Retrieved from https://www.energy.ca.gov/files/2025-energy-code-hourly-factors California Energy Commission. (2023). Draft 2025 Energy Code Express Terms. Retrieved from https://efiling.energy.ca.gov/GetDocument.aspx?tn=252915&DocumentContentId=88051 California Public Utilities Commission. (2021a). Utility Costs and Affordability of the Grid of the Future: An Evaluation of Electric Costs, Rates, and Equity Issues Pursuant to P.U. Code Section 913.1. Retrieved from https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/office-of-governmental-affairs- division/reports/2021/senate-bill-695-report-2021-and-en-banc-whitepaper_final_04302021.pdf California Public Utilities Commission. (2021b). Database for Energy-Efficient resources (DEER2021 Update). Retrieved April 13, 2021, from http://www.deeresources.com/index.php/deer-versions/deer2021 Department of Energy. (2022). Preliminary Analysis Technical Support Document: Energy Efficiency Program for Consumer Products and Commercial and Industrial Equipment. Retrieved from https://www.regulations.gov/document/EERE-2017-BT-STD-0019-0018 Department of Energy. (2023). Technical Support Document: Energy Efficiency Program for Consumer Products and Commercial and Industrial Equipment: Room Air Conditioners. Retrieved from https://www.regulations.gov/document/EERE-2014-BT-STD-0059-0053 E-CFR. (2020). https://www.ecfr.gov/cgi-
bin/retrieveECFR?gp=&SID=8de751f141aaa1c1c9833b36156faf67&mc=true&n=pt10.3.431&r=PART&ty=HTM L#se10.3.431_197. Retrieved from Electronic Code of Federal Regulations: https://www.ecfr.gov/cgi- bin/retrieveECFR?gp=&SID=8de751f141aaa1c1c9833b36156faf67&mc=true&n=pt10.3.431&r=PART&ty=HTM L#se10.3.431_197
Statewide CASE Team. (2023). Residential HVAC Performance. Codes and Standards Enhancement (CASE) Initiative 2025 California Energy Code. Prepared by Frontier Energy. Retrieved from https://title24stakeholders.com/wp-content/uploads/2023/11/Revised_2025_T24_Final-CASE-Report-RES- HVAC-Performance.pdf
Statewide Reach Codes. (2023). Cost Effectiveness Explorer. Retrieved from Cost Effectiveness Explorer:
https://explorer.localenergycodes.com/
Statewide Reach Codes Team. (2021). 2019 Cost-Effectiveness Study: Existing Single Family Residential Buidling Upgrades. Retrieved from https://localenergycodes.com/content/resources California Energy Codes & Standards | A statewide utility program 2024-04-25

-
lding Climate Zones
California , 2017
cJ Building Climate Zones
[] County Boundary
SOurc.. C.~omll Ene,gyCOmm-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 38 Appendices
6 Appendices

6.1 Map of California Climate Zones
Climate zone geographical boundaries are depicted in Figure 16. The map in Figure 16 along with a zip-code search directory is available at: https://ww2.energy.ca.gov/maps/renewable/building_climate_zones.html Figure 16. Map of California climate zones.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
2023 Electric California Climate Credit Sched ule
PG&E
SCE
SDG&E
February or
March
$38.39
$71.00
$60.70
April May June July
Residential Natural Gas California Climate Credit
Aug
In 2023, the 2023 Natura l Gas Califo rn ia Climate Credit will be distributed in February or March instead of April.

Sept Oct
$38.39
$71.00
$60.70
2019 2020 2021 2022 2023 Total Value Received Per Household 2018 -2023 PG&E $30 $25 $27 $25 $48 $52.78 $208
SDG&E $34 $21 $18 $43 $43.40 $162
Southwest Gas $22 $25 $27 $28 $49 $56.35 $207
SoCalGas $50 $26 $22 $44 $50.77 $194
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 39 Appendices

6.2 Utility Rate Schedules
The Reach Codes Team used the CA IOU and POU rate tariffs detailed below to determine the On-Bill savings for each package. The California Climate Credit was applied for both electricity and natural gas service for the IOUs using the 2023 credits shows below.26 The credits were applied to reduce the total calculated annual bill, including any fixed fees or minimum bill amounts.

Electricity rates reflect the most recently approved tariffs. Monthly gas rates were estimated based on recent gas rates (November 2023) and a curve to reflect how natural gas prices fluctuate with seasonal supply and demand. The seasonal curve was estimated from monthly residential tariffs between 2014 and 2023 (between 2017 and 2023 for CPAU). 12-month curves were created from monthly gas rates for each of the ten years (Seven years for CPAU).

These annual curves were then averaged to arrive at an average normalized annual curve. This was conducted separately for baseline and excess energy rates. Costs used in this analysis were then derived by establishing the most recent baseline and excess rate from the latest tariff as a reference point (November 2023), and then using the normalized curve to estimate the cost for the remaining months relative to the reference point rate . 26 https://www.cpuc.ca.gov/industries-and-topics/natural-gas/greenhouse-gas-cap-and-trade-program/california- climate-credit
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 40 Appendices

6.2.1 Pacific Gas & Electric
The following pages provide details on the PG&E electricity and natural gas tariffs applied in this study. Table 20 describes the baseline territories that were assumed for each climate zone. A net surplus compensation rate of $0.07051/ kWh was applied to any net annual electricity generation based on a one- year average of the rates between December 2022 and November 2023.

Table 20. PG&E Baseline Territory by Climate Zone
Climate Baseline
Zone Territory
CZ01 V
CZ02 X
CZ03 T
CZ04 X
CZ05 T
CZ11 R
CZ12 S
CZ13 R
CZ16 Y
The PG&E monthly gas rate in $/therm was applied on a monthly basis according to the rates shown in Table 21.

These rates are based on applying a normalization curve to the November 2023 tariff based on ten years of historical gas data. Corresponding CARE rates reflect the 20 percent discount per the GL-1 tariff.

Table 21. PG&E Monthly Gas Rate ($/therm)
Month Total Charge
Baseline Excess
January $2.05 $2.43
February $2.08 $2.46
March $1.92 $2.31
April $1.80 $2.20
May $1.77 $2.18
June $1.78 $2.18
July $1.80 $2.20
August $1.85 $2.26
September $1.92 $2.33
October $1.99 $2.40
November $2.06 $2.46
December $2.05 $2.44
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
GAS
Baseline Territories and Quantities 11
---
Effective April 1, 2022 - Present
BASELINE QUANTITIES (Therms Per Day Per Dwelling Unit)
Individually Metered
Baseline Summer Winte r Off.Peak
Territories (April-October) (Nov, Feb, Mar)
Effective Apr. 1, 2022 Effective Nov. 1, 2022
p 0.39 1.88
Q 0.56 1.48
R 0.36 1.24
s 0.39 1.38
T 0.56 1.31
V 0.59 1.51
w 0.39 1.14
X 0.49 1.48
y 0.72 2.22
Master Metered
Baseli ne Summer
Territor ies (April-October)
Effective Apr. 1, 2022
p 0.29
Q 0.56
R 0.33
s 0.29
T 0.56
V 0.59
w 0.26
X 0.33
y 0.52
Summer Season: Apr-Oct
Winter Off-Peak : Nov, Feb, Mar
Winter On-Peak : Dec, J an
Advice Letter: 4589-G
Decision 21-11-016
GRC 2020 Ph II [Application 19-11-019]
Filed: Nov 22, 2019
Winter Off.Peak
(Nov, Feb, Mar)
Effective Nov. 1, 202.2

1.01 0.67

0.87 0.61

1.01 1.28

0.71 0.67

1.01 Winter On-Peak
(Dec, Jan)
Effective Dec, 1, 2022

2.19 2.00

1.81 1.94

1.68 1.71

1.68 2.00

2.58 Winter On-Peak
(Dec, Jan)
Effective Dec. 1, 2022

1.13 0.77

1.16 0.65

1.10 1.32

0.87 0.77

1.13 Cost Effectiveness Analysis: Existing Single Family Building Upgrades 41 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Gas and
Electric Company·
Revised
Cancelling Revised
Cal. P.V.-C. Sheet No.

Cal. P.V.C. Sheet No.

U 39 Oakland , Ca/ifomia
ELECTRIC SCHEDULIE E-TOU-C Sheet 2
RESIDENTIAL TIME-OF-US E (PEft/K PRICING 4 - Q, p.m. EVERY DAY) RATES:
(Cont'd .)

E-TOU-C TOTAL B UNDLED RATES
Tot al Energy Rates ($ PE!f kWh)
Summer
Total Usage
Baseline Credit (Applied 1o Baseline Usage Only)
Winter
Total Usage
Baseline Credil (Applied 1o Baseline Usage Only)
Delivei:y Minimum Bil Amount ($ per meter per day)
California Climate Cred".rt (per hoosehold. per sem i
annual paymenl ocourring, in the Marcil ' and October
bill cydes)
PEAK
$0.53933 (I)
(S0.08S5 t ) {R)
$0.43662 (I)
($0.08S5 1 ), (R)
$0.37612
($38.39)
OF:F-PEAK
$0.4558Q (I)
($0.08851) ,(R)
S0.40827 (I)
($0.08851) ,(R)
56550-E
5622:Q-'E
Total bundled service charges shown on customE!f's bills are unbundled acoording to the component rates shown bel'ow. Where the defive:ry minimum bill amoun t applies . lhe customer's bill will equal lhe• sum of ( 1) the delivery minimum bill amounl plus (2) for bundled servic:e, the generat ion rate times the number of kWh used. For revenue• accou nting purposes. lne r·evenues from the delivery minimum billl amounl will be assigned lo the Transmiss ion. Transmiss ion Rate Adjustments. Reliability Services, Public Purpose P, ograms , Nuclear Ole-commissioning, Competition Transit ion Charg:es, Energy Cost Rec overy Amou:nl. W ildfire Fund Charge , and New System Gene,ralion Charges based on kWh usage limes the corresponding unbundled rate, component per k Wh, w'ith any residual revenue assigned 1o Disb:ibution.
• Pursuant to D.23-02-0 14. disbursement of the April 2023 residential Climate Credit shall begin by March 1. 2023 .

Advice
Decision
7009-E Issued by
Mereru th Allen
Vice President , Regulatory Affaint
Submitted
Effective
Resolution
(Continued)
August 25. 2023
Septembe r 1, 2023
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 42 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
ific Gas and
Electric Campany'
Revised
Caooe1!ing Revised
Cal. P.LJ.C. Stteet No.

Cal. P. LJ. C. Street No.

U 39 Oal<Jand, Ga!lfomia
EL ECTRIC SCHEDULE E-lOU-C Sheet 3
RATES:
(Cont'd.)
IRESID8NTIAL TIME-OF-USE (PEAK PRICING 4 - Q p.m. EVERY DAY} UHBUNDLIHG OF E-TOU-C TOTAl!..IRAl ES
Enargy Rllll!s by Companor,l IS I"" l \'llh) PEAK OFF-PEAK c;e_,...r.mon:;
Sun:sner 1• usage) so.19ns
W..ler f•u••ge) $0.14918
Disuibtit i'on•it:

Surmruor (d u•oge) $0.17029
w .,1e;r 1• u••ge) $0.11618
ConH•rv..tion ln<Hll i-.. Adjus'lnmnl (&...tino Usage)
Consl!'JV>dioo lnc:l!'llliY<I Adjustrruont (Ow!r B.uelin" I.Jsa!ll") Tran smi u iod (al " ""9")
Tran smission llbrte AIIJu!ltmenls" (all usa;a)
'Reli;abiltiy Se-rviioes ' (all usa,~ )
Public PulJ>Ose P.ograms (al usage >
'Ml,cl9r Decomm is sionin9 1• u•"9")
C'ampetman Tran sili0<1 Charges (211 usage)
'En"'V)' Cosl ROGOYK)' Amount (all usagr,)
Wildfire FtJnd Ch..-g,e (aD usage)
New Sys'!=> G=-eral l0t1 Cb..-90 (all ..,_.,9"r'
Wildfire H;udon lng Ch;u-ge {all U5"!11!)
Reconry IBond Ch..-ge (•II usztgel
Rec:onry lBond Credit (al u•ag•)
Bundlod P,owK Charg1t lncll~, enc-e Adjustmoenl (all u.age )""" (I)
(I)
W.13432:
$0.12 413-
ro.15029
$0.112811
(S0..02:216) ( I)
S0..061135 (I)
$1)..(15254
S0.00059
S0..00069
$1)..(12578
$0.00 135
S0.00030
($1),,000711
$1)..00530
$1),,00046
$0 00254
Sl).0052:8 (R)
($ll..0052:8) ( I)
$1),,0 1309
(I)
(I)
• Transmission, Transmission Rate ~ ls and R~ Selvice dnarges are combined for presenliltion on ,aJStx>mer bills.
llistrilutio n and New Sys1em Gena-ation Charges are conm.ed for iwesentation on c115tomer bills .
.. • Direct Aca», Corn-nunity Chcioe J¼lgr,,g;,tion and T ransillonal Bundliod Senrioe Cuslomen pay a,., ""'plicab le V°"1laged Power Clmrge lndi!ll!femc., Adjus11111!nl.. Gen""'51ion "r>:f Bur>:fled PCIA are mmbilllkl far pr6"'tt:a tion on bundled customer bills.

Advice
Dea~
7009-E ~ .sued by
Meredith Allen
V-.ice Pn:-sidenf, Regulato,y Alfilifs
Submitted
Effective
Re:whmon
(Continued)
August 25. 2023
September 1. 2023
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 43 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
ific Gas and
Electric Company·
Revised
Cancelling Revised
Cal. P.U.C. Sheet No.

Cal. P.U.C. Sheet No.
56547-E
56226-E
u 39 Oakland, California
ELECTRIC SCHEDULE E-ELEC Sheet 2

RESIDENTIAL TIME-OF-USE (ELECTRIC HOME)

SERVICE FOR CUSTOMERS WITH QUALIFY ING ELECTRIC TECHNOLOGIES RA TES:(Cont'd.)

TOTAL BUNDLED RATES
Base Services Charge (S per meter per day) $0.49281
PEAK PART-PEAK OFF-PEAK Total Energy Rates($ per kWh)
Summer Usage
Winter Usage
$0.56589 (I)
$0.33438 (I)
$0.40401 (I)
$0.31229 (I)
$0.34733 (I)
$0.29843 (I)
California Climate Credit (per household, per
semi-annual payment occurring in the March'
and October bill cydes)
($38 .39)
Total bundled service charges shown on a customer's bills are unbundled according to the component rates shown below.

UNBUNDLING OF TOT AL RA TES
Energy Rates by Component($ per kWh) PEAK PART-PEAK OFF-PEAK t
Generation:

Summer Usage $0.28164 $0.18253 $0.13743
Winter Usage $0.11951 $0.09954 $0.086 19
Distribution- :

Summer Usage $0.17932 (I) $0.11655 (I) $0.10497
Winter Usage $0.10994 (I) $0.10782 (I) $0.10731
Transmission* (all usage) $0.05254 $0.05254 $0.05254
Transmission Rate Adjustments* (all usage) $0.00059 $0.00059 $0.00059 Reliability Services• (all usage) $0.00069 $0.00069 $0.00069 Public Purpose Programs (all usage) $0.02578 $0.02578 $0.02578 Nuclear Decommissioning (all usage) $0.00135 $0.00 135 $0.00 135 Competition Transition Charges (all usage) $0.00030 $0 00030 $0.00030 Energy Cost Recovery Amount (all usage) ($0.00071) ($0 .00071) ($0.0007 1) Wildfire Fund Charge (all usage) $0.00530 $0.00530 $0.00530 New System Generation Charge (all usager $0 00346 $0.00346 $0.00346 Wildfire Hardening Charge (all usage) $0.00254 $0.00254 $0.00254 Recovery Bond Charge {all usage) $0 00528 (R) $0.00528 {R) $0.00528 Recovery Bond Credit (all usage) ($0.00528) (I) ($0 .00528) (I) ($0.00 528) Bundled Power Charge Indifferen ce $0 01309 $0 01309 $0.01309 Adjustment (all usage)* ..

Transmission , Transmission Rate Adjustments and Reliability Service charges are combined for presentation on custome r bilts.

Distribution and New System Generation Charges are combined for presenlat ion on oustome r bills.

Direct Access , Commu nity Choice Aggregation and Transitional Bundled Service Customers pay the applica·ble Vintaged Power Charge Indifference Adjustment. Generation and Bundled PCIA are combined for presenla tion on bundled customer bills.

Pursuant to D.23-02-014 , disbursement of the April 2023 residential Climate Credit shall begin by March 1, 2023 . (I)
(I)
(R)
(I)
(Continued )
Advice
Decision
7009-E Issued by
Meredith Allen
Vice President, Regulatory Affairs
Submitted
Effective
Resolution
August25 , 2023
September 1, 2023
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 44 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Gas and
Electric Company·
Original Cal. P.U.C. Sheet No. 54738-E
U 39 San Francisco, California
ELECTRIC SCHEDULE E-ELEC Sheet 3 (N)

RESIDENTIAL TIME-OF-USE (ELECTRIC HOME) (N)

SERVICE FOR CUSTOMERS WITH QUALIFYING ELECTRIC TECHNOLOGIES

SPECIAL
CONDITIONS:

1. TIME PERIODS: Times of the year and limes of the day are defined as follows: (N) Advice
Decision
All Year:

Peak: 4:00 p.m. to 9:00 p.m. every day including weekends arid holidays.

Partial-Peak: 3:00 p.m. to 4:00 p.m. and 9:00 p.m. to 12:00 a.m. every day including weekends and holidays.

Off-Peak: All other hours.

2. SEASONAL CHANGES: The summer season is June 1 through September 30 and the winter season is October 1 through May 31. When biUing includes use in both the summer and winter periods, charges will be prorated ba.sed upon the number of days in each period.

3. ADDITIONAL METERS: If a residential dwelling unit is served by more than one elecbic meter, the customer must designate which meter is the primary meter and which is (are) the additional meter(s).

4. BILLING: A customer's bill is calculated based on the option applicable to the customer.

Bundled Service Customers receive generation and delivery services solely from PG&E. The customer's bill is based on the Unbundling of Total Rates set forth above.

Transi tional Bundled Service (TBS) Customers take TBS as prescribed in Rules

22.1 and 23.1, or take PG&E bundled service prior to the end of the six (6) month advance notice period required to elect PG&E bundled service as prescribed in Rules

22.1 and 23.1. TBS customers shall pay all charges shown in the Unbundling of Total Rates except for the Bundled Power Charge Indifference Adjustment and the generation charge. TBS customers shall also pay for their applicable Vintaged Power Charge Indifference Adjustment provided in the table below, and the short-term commodity prices as set forth in Schedule TBCC.
(N)
(Continued}
6768-E
D.21-11-016
Issued by
Meredith Allen
Vice President, Regulatory Affairs
Submitted
Effective
Resolution
Nove mber 18, 2022
Decembe r 1, 2022
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 45 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Gas and
Electric Company·
Revised
Cancelling· Revised
Cal. P.U.C. Sheet No.

Cal. P.U.C. Sheet No.
54734-E
53424-E
U 39 San Francisco, Cafifom;a
ELECTRIC SCHEDULE 0-CARE Sheet 1
LINE-ITEM IJl1SOOUNT FOR CALIFORN IAALTERNA TE RAT1ES FOR ENERGY (CARE)

CUSTO MERS
APPUCAB ILHY: This sclledu le is applicable to single-phase andl polyphase residential service in single.family dwellings and in flats and apantments separa tely metered by PG&E and domestic submetered tenants residing in multifa mily accommodat ions, mobi!ehom e parks and to q,ualifying recreationa l ·vehicle par:ks and marinas and to tarm selVice on the premises operated by lhe person whose residence is supplied lhrough the same meter, where the applicanl qualifies for Cerrfomia Ailternate Rates for Energy (CAR E) under the eligibility and certificat ion criteria set forth in Electric Rule HI. 1. CARE service is available on Schedules E- ~. E~. IE-TOU-lB, E-TOU-C . E-TOU-0 . EV2. E-ELEC. EM . ES. ESR. Eir and EM-TOU. (T) TE:RRITORY :

RATES:

This rate schedule applies everywhere PG&E provides electric serv.ice.

Customers. taking seN ice on this rate schedule whose o.therwi.se applicable rate scll edule has no Delivery Minimum Bill Amo unt (Sched ul e E-El EC) will receive a CARE percentage disooont of 35.000% on ·their total bundled dlarges (except tor ihe Californ ia Climate Credit, which will no! be d'iscounted). Custom ers takil)Q service on this rate schedule whose otherw ise applicable rate schedu'le has e Delivery Minimum Bi!I Amount (el l other sched'ules) will receive e CARE percentage di soount ('A" or ·c· below) on, lheir total bund led charg es on ,their otherw ise applicable rate schedule (except tor the Califomie Climate Credit .. which will not be discounted ) and .also will receive a percentage discounl ("8" or ·o· below), on the delivery minimum biU amoun t. ,if epp1icabte. The CARIE discount will be celoolated for direct a.ooess and community choice aggJegation customers based on the total charges as 1if they were subjecl to bundled service rafes.

D iscounts will be applied es a 1residual reduction to distribulion cllarg es .. afte:r 0 - CARE customers are exem pted from the Wil'dfire Fund Charge, Reco..,ery Bond Charge , Rec0'.lery Bond Credit. end !tie CARE surcharg;e portion of the public purpose program chmge used to fund ltie CARE discount These conditions al.so apply to master-mete red customers and to, qualified sub-metered tenants where the maste r-meter custom er i s join1fy served under PG&Es Rate Sclledu le 0- CARE and either Schedule EM. ES. ESR. ET. ,or EM-TOU .
for master-m etered custom ers where one or more of t he submetered tenants qualffie-s. for CARE rates under the eligibility and certifi.celion crit eria sel forth in R ule HU, 19.2. or 19.3. the CARE discount is equal to a percentage re· below) of the total bundled charges , multiplied by t he numbe:r of CARE unfts divided by lhe lota ll number ot unils. In addition, m aster-metered customers eligible for D-CARIE will receive· a percentage discount ("O" below) on the delivery minim um biD amount. if applicable .

Iii is the respons ibility of the master-metered customer to advise PG&E within 15 days following any chall!Je in the number of dweOing units andfo r any decrease· in ihe num ber of qualify ill!J CARE e,pplicants that results when such applicants move out of their su'.bmetered or ncn-s ubmetered dwelfing unit. or ·submeter,ed permanent-r esidence RV or permanent- reside.nee boat.
(N)
I
I
(N)
(T)
I
(T)
(T)
(l )
I
(L}
(Continued )
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 46 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Gas and
Electric Company•
Revised
Cancelling Revised
Cal. P . U. C. Sheet No.

Cal. P.U.C. Sheet No.
56208-E
56020, E
U 39 5.in Francisco , Californ ia
ELECT RIC SCHEOUl E D-CARE Sheet 2
LINE-ITEM DISCOUNT FOR CALI FORNIA .A/LllERNATE RATES FOR ENERGY (CARE)

CUSTOMERS
RATES: (Cont'd)

SPECIAL
CONOITIONS:

Advice
Decision
6968-E
A. D-CARE Discount
B. Delivery Minim11m Bill Discount:

C. Master-Meter D-CA RE Discount
D. Master -Meter Delivery MinimYm
BiD Discount:

34.965

50.000

34.965

50.000
'% (Percent) (I)
% {Percent)
'% (Percent) (I)
% {P,ercent)

1. OTHERW,ISE APPLICABL E SCHEDULE: The Special Cond[ti<lns of t he Ou.stomer's otherw ise applicab le rate schedule will appl'y lo this schedule.

2. ELIGIBILITY: To be eligible to receive D-CARE the .applicant nnusl qualify \llooer lhe criteria set forth in PG&E·s IElectric Rules 19.1. H>.2. and Ul.3 and meel 1he cerlifica lion requirements I1-lereof to the s.alisfacticm of PG&E. Qualifying Direct Acces s. CommYnity Choice Agg regation, SeN ice. and Tran sitiona l Bundled Service customers are also eligible to take s.ervice on Sdled'ule D-CARE.

Appl icanls may q11alifyfor D-CARE at their primary residence ,onl'y. Customers or sub-met ered ten ants partic ipating in the F amily Electric Rate Assistance {FERA) program cannot concurren tly partic ipate in Ille CARE program .

Issued by
.Meredi th A lferi
Vice Pn,sident, Regulata<y Affairs
Submitted
Effective
ResoJution
June-23. 2023
July 1, 2023
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 47 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Summer Daily Allocations (June through Septem ber)
Baseline Region Number
5 6
8 9
10 13
14 15
16 SPECIAL CONDITIONS
All-
Daily kWh Electric
Allocation Allocation

17.2 179

11.4 8.8

12.6 9 8

16.5 12.4
18 9 1 5.8

22.0 24.6

18.7 18.3

46.4 24.1

14.4 13.5
Schedule TOU-D

TIME-OF-USE

DOMESTIC
(Continued)

1. Applicable rate time periods are defined as follows:

Option 4-9 PM. Option 4-9 PM-CPP. Option PRIME. Option PRIME-CPP :

Winter Daily Allocations (October through May)
All -
Daily kWh Electric
Baseline Region Number All ocation All ocation
5 18.7 20.1
6 11.3 13.0
8 10.6 12.7
9 12.3 14.3
1C 12.5 17.0
12 12.6 243
14 12.0 21.3
1~ 9.9 18.2
Hi 12.6 23.1
Sheet 12 (T)
(T)
TOU Period Weekdays Weekends and Holidays
Summer Winter Summer Winter
On-Peak 4 p.m. - 9 p.m. N/A NIA NIA
Mid-Peak N/A 4 p .m. - 9 p.m. 4 p.m. - 9 p.m. 4 p.m. - 9 p.m.

Off-Peak All other hours 9 p.m. - 8 a.m. All other hours 9 p.m. - 8 a.m.

Super-Off-Peak N /A 8 a.m. - 4 p.m. NIA 8 a.m. - 4 p.m.

CPP Event 4 p.m. - 9 p.m. 4 p.m. - 9 p.m. NIA NIA Period Cost Effectiveness Analysis: Existing Single Family Building Upgrades 48 Appendices

6.2.2 Southern California Edison
The following pages provide details on the SCE electricity tariffs applied in this study. Table 22 describes the baseline territories that were assumed for each climate zone. A net surplus compensation rate of $ 0.06030/ kWh was applied to any net annual electricity generation based on a one-year average of the rates between December 2022 and November 2023
Table 22: SCE Baseline Territory by Climate Zone
Climate Baseline
Zone Territory
CZ06 6
CZ08 8
CZ09 9
CZ10 10
CZ14 14
CZ15 15
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
rn Cslifo mis Edison
Ros,emead. Caritom ia (U 338-E )
Revised
Car1Celli"9 Revised
Cal. PUC Sheet No_ 85111--E
CaL PUC Sheet No_ 74502-E
RATES
Schedule IOV:P

TIME-OF-USE

DOMEST IC
(Continued )
Sh eet 2
Customers receiving servic e under ihis Sched ule will be charged the applicable rates under O ption 4-9 1PM, Option 4-Q PM-CPP . Op1ion 5-8 PM , Option 5-8 PM·CPP, Op tion PRIME .. Option PRIME-CPI? Option A, Option A-CPP. Oplioll B. or- Option B-CRP. as listed beww. CPP Event C h arges will apply to all energy usage during CPP Event Energy C harge periods alld CPP Non,-Event Energ y Credits will apply as a reduction or, CPP f'lon-<Event Energy Credit Periods during Summer Season days. 4:00 p_m_ to Q:OCl p.m .. as desc ribed ill Sp ecial Conditions 1 and 3. below:
,Qplfpn +R FM J NIAJ +R PM::¢FP
1::,n..,W °'1-w■ • 1.ik.W.h
8t.Jrnm•t S .. •on - On.-~.._ O.UDYI lfiJ
h1hl-h.a. 0 .7'1~11 IIRJ
O il,.P.,o1, 0.:1' ..... 1!2' IA I
W11ntat Sauan - 1.1Jt11-~-. O.Ul~s, IIRJ
Ofi.~_,. D.2441-82' tA:J
~upt1r..Off..P.._., 0 .221)11) tR)
8-;; .. ic Ctta~• - S~•Y
Sangl__,.affllly R-idanca O.O·~ 1
MuN..,.-•md'I Raalidanca 0 .024
Manunum CNlrg ■ ·- • Sid•~
:Sine• ... nm., R_ld.,c::• o.34s
IMYlt~■md)' R_Ki.,c• O.:!M8
MW11m:um Cha"R• -4.t.t ed1c .. 8 ..... lln■ )"" ~ • $Jday "!lmv·• lf'■mlly A--=t .. c:• 0 . 1 rs
1M 1.ifb-F■md)' R--=t_.c::• 0 . 1 tS
C.bfam .. , A'tt■rr:1111ta R ... ■ '°'
En4N1iJY Ooccu.-.l • '%,
t--,,111 t:.~1r.c KIib■ Aaaa.1•nc::• ~ Ill
·Qpbpp +I: PM:CPP
CP~ EvwnJ: En..rw,Ch.,1:1" - SJkWh
:kJrnm•r CT•P Non-iE'Hnll c,..c111
On-""";ak t:..1-vr e ... sW - SIII.Wh
Mlil:dmum A V Mllim'l-tl C r•dtl . Sncw,,·--·
~umrnar !s•aaan
11 1,00) «•►
1DU.00"'
10000
O 2-eS-43'Ctt
0 .1 1101 Cit
0 .1 1 :US::i Cit
0~21,~:l CIJ
0 .136~1 Cit
0 1 1 800Ct ►
ouooou
oilOOOo
( 0 .'l !lil n:tl
o .OUOOO
o.ooouo
<),C>l)O(l(J
0 .00000
<l.OUOllo
0 .00000
I
• Rtlanlill'.G 1~ a1 IIMI dsic<l<Jnl !"'"'""'.age aoa - In.,_ awlk•lllo Spod•1 c«dlxin ol lhls _,._ •• Tllo ~li>llffllln Olal!J• IS"~ - .,. Dolt."Gf) - .. El\ll!Q', Chal\jll , p"5 Iha ~ a....: Ch•rge i. loss - .,. Mlninum Charg,a. ••• Tho.,,_ CompoOlon Tranollon Ol•Jtl• CTC ol CW.00000) po, l Y/11 Is ,__ In lho UG com- ol -,lion. (Tl ••••Tna Baalna Cra.S1.a~L1p,U> 1001'. alrana l!.-alna.Ali0caUon. ro91nU15•of lima4...US. lDapa,'ald. Adlldan,alB.11MIAbaAlbc..nofl1111f:'lP)'ID' CUMDmars wll'I Ha.al Purn_p w.-, HuNn. sar¥ad t.ftiar a..s Optl0ft Thu ~Dina A.lloc~llons ara 5411 b1h ift fl.ra«hin;a~ SQlamon l, Part H . . .......... -A.-Ctodh rs Ncoppo<lu.<il"mwMlorCPPC.... lamond.lal P•~-119mod'-«dllllo>nd .... pan .. --· 1 To"'l = Jo1.110olt.•!)I S.000 , .... •"' app-• loBrdad S.W...lli111c1Acoass (DAI and Comm•"')> 000.,0 ~ s.n<oo (OCA - ) CUStama.rs, timi:01 DA ilnd Cc.A Sa~ Ousmm.Gf'S .lll'lllnot SJ.bioa: tDlhA OL\lR9C nat■ compona.m at'lla k'hodub but.btllildp;lf lha OWR9Cm .,,.-,idad l¥ S-IQ DA-CRS « SCIIOdUII OCA-CRS .
2 GanGrallor1 = Tha Gon '"""' •111 applic.atia oott ID 6'.rlded 54rnce OJslomws . Sff !lpeclot C<ntt.on bal:lw tor !'CIA,._ ~ m\REC.=~011111. , .. - iIJ'IIR) lE""f0 c.-, _~or,_. llflOnnalxin OR lhJI D\YR &>orirt en.cu, - h ea,,q ~ SpQd•l COodllonOll lhl• ~ -
4 ~lid on an iftq~ bi1Sdo, per~ sam~t, . SM: b Spoci.111 c«dUXIS ,O'I au,; &:.hOdUlt fOf' a'ICt'e: ~ (To be in serted by uliliiyl
Advice 4Q2Q•E
-----------Decision
:!tnJ
(Continued)
Issued by
Michae l Backstrom
~ ice P residen t
(To be iMerled by Cal. PU C}
Date Submitted Dee 28, 2022
Effective
Resolution
Jan 1, 2023,
E-5217
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 49 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
"
- IVff>ll.~ • nCl!'LIILC--
Southem California Edison
Rosemead, California (U 338-E) Cancelling
Revised
Revised
Cal. PUC Sheet No.

Cal. PUC Sheet No.

RA TES (Continued)
Schedule TOU-D

TIME-OF-USE

DOMESTIC
(Continued)
Option PRIME I Option PRIME-CPP
Energy Cllarge - $/kWh/Mete r/Day
Summer Season
I
D e'livery Service
Total'
On-Peak 0.22789 (I)
Mid-Peak 0.22789 (I)
Off.Peak 0.151111 (I)
Winter Season
Mid-Peak 0.23353 (I)
Off-Peak 0.14530 (I)
Super-Off-Peak 0.14530 (I)
Fixed Re<oYery Charge - $'1<Wh 0.00260 (I)
Ba•ic Cllarge - S/MeterJDay 0.427 (I)
EV Meter Crl'cfrt (Sep,arately Met..,ed E (0.323 ) (N)
EV Submele r Credit - S/Mell'JiDay (0. 111) (R)
Caifom ia Climate Credit '0 (71.00 )
Caifom ia Alternate Rates fo,
Energy Disoount - '- 100.00'
Family Electri<: Rate A••istonce Di•cou 100.00
Medical Lile Item Discount - % 100.000
Option PRIME-CPP
CPP Event Energy Charge - $'1<Wh
Summer CPP Non-Even t Credit
On.Peak Energy Credit - $/kWh
Maximum AY&ilable Credit - $/kWh"••
Summe r Season
Generation
UG" I DWRE~-

0.42769 (1) 0.00000

0.15221 (I) 0.00000

0.10162 (1) 0.00000

0.38028 (1) 0.00000

0.08630 (1) 0.00000

0.80000
(0. 71812) (R)
R~p,es.MtS 100% of the discount peroe,rmge as shown SI the applic.ible Special Condition Qf Bas Schedule. • • The CflllO'ng Ganpelition T tanSition Charge (CTC) ct (S0.00003) peer kWh is tee:OYered in lhe UG companen1 al Gener.nion.

Sheet 6
I
I
"" The MillCinun Available Credit is lhe capped aedit amount lor CPP Cu5lomers dual p;,rticip;r.ire in other demand response pr _ _ 86132-E
85624-E
I Tcc.,i = Tccal Delivery Servicl' -• are appicable 10 Buncled Service. llRd Acee•• (DA) and Comn unity Choice Aggregation Service (CCA SeMce) ~ exoept DA and CCA SeMce Custome<,; are n01 subject to me DWRBC rate compcnen, ct lhs SdledJle bu! instead pay the DWRBC as provided by Sche<l.je OA-CRS er SchecUe CCA-CRS.
2 Genera:ion = The Gen me• are ~ Oliy to Buncled SeMce Customers. See Special Condition below for PClA reoovery. 3 O'WREC = Department al Waler Resources (!>WR) Energy C.edit - Fer more information on the DWR Energy Crecil. ""' the Billing Calcw:ion Specia l Caiciticn ct this Schedu le.
4 Applied on an equal basis. per household , semi-annually. See the Specia l Conditions of this SchedlAe lor more infonnalion. (To be inserted by utility)
Advice -'50=-.c.41'--E=-----
Decision
-
(Continued)
Issued by
Michael Backstrom
Vice President
(To be inserted by Cal. PUC)
Date Submitted May 30, 2023
Effective Jun 1, 2023
Resolution
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 50 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Caflfomia Edison Revised Cal. PUC Sheet N'o. 85618-E
Rosemead , Californ ia (U 338-E) Cancelling Revised Cal. PUC Sheet No. -85109-E Scbedu;te,D;CABE Sheet 1
CALIFORtNIA AL TERNA TE RA TES FOR ENERGY

DOMESTIC SERV ICE

APPLICAB ILITY
Applicable to domes tic service to CARE househo fds residing in a pennartenl Single- Family Accommodation DI' Mul1ifami ly Accommodation where the customer meels all the Special Col'\di:tions of this Sched ule. Custom ers enrolled in the CARE program are not eligible for !he Family Electric Rate Assistance (FERA) program.

P•ursuartt to Special Coooi1iion 12 herein, customers receiving servioe under this Schedule are e'-olble lo receive the Califom ia Clunate Credit as shown in t he Rates section below.

JEBBIIPBY
Wrthin the entire territory s&Ved .

The applicable charg es set forth in Schedufe D shall apply to Customer s served under this Schedule .

CARE Discount:

A 29.8 percent discount is eppliedl to a CARE Customer 's bill prior to the application of lhe Public Utilities Commiss ion Reimburs.emenl Fee (PUCRF) artd any applicab le user f ees. t axes. and late payment charges . CARE Ci.istom ers are re.:iuired to :pay the PIJCRF and any .applicable, user f ees. taxes . and late paymertt charges in full. In addition . CARE Customers .are exempt from paying lhe CARE Surd'la rge of $0.00888, per kWh aoo the Wildfire Furld Nor..Bypassable Cha:r,ge of $0.00530 per kWh.. (R) The 2{1.8 percent discount, in additior1 to these exemp1ions result in an average effective• CARE Disco.mt of 32.5 percenl
(To, be inserted by utility)
Advice 4!977-lE
----------O e c i sio n 23-01--002
lh J2 22-12•031
(Continued)
Issued by
Michael Backstrom
Vice Ptesident
(To be inserted by Cal. PUC)
Date Submitted Feb 27. 2023
Effective
Resolution
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 51 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
utliern California Gas Company
Residential Rates
NoY-23
Procurement Transponallon N&w Rate New Rate Absolute
Customer Type Commod ity Rate Charge Charge Elfedlve Elfec11ve Rate % I Rate Schedule Charge Type ¢/therm ¢/therm 111112023 1011/2023 Change Change Rasklentlal lndlvldually Metered
Schedule No. GR GR BaseDne 67.806 86.490 154296 125.096 29.200 23.3% Res. SelVlce GR NonBaselne 67.806 131-037 198.843 169.726 29.117 17.2% GT-R Basel ne 00.000 86.490 86.490 87.038 -00.548 -0.6% GT-R Non Basel ne 00.000 131.037 131.037 131.668 -00.631 -0.5% Cost Effectiveness Analysis: Existing Single Family Building Upgrades 52 Appendices

6.2.3 Southern California Gas
Following are the SoCalGas natural gas tariffs applied in this study. Table 23 describes the baseline territories that were assumed for each climate zone.

Table 23. SoCalGas Baseline Territory by Climate Zone
Climate Baseline
Zone Territory
CZ05 2
CZ06 1
CZ08 1
CZ09 1
CZ10 1
CZ14 2
CZ15 1
The SoCalGas monthly gas rate in $/therm was applied on a monthly basis according to the rates shown in Table 24.

These rates are based on applying a normalization curve to the November 2023 tariff based on ten years of historical gas data. Long-term historical natural gas rate data was only available for SoCalGas’ procurement charges. 27 The baseline and excess transmission charges were found to be consistent over the course of a year and applied for the entire year based on 2023 rates. CARE rates reflect the 20 percent discount per the GR tariff.

Table 24. SoCalGas Monthly Gas Rate ($/therm)
Month Procurement
Charge
Transportation Charge Total Charge
Baseline Excess Baseline Excess
January $0.72 $0.86 $1.31 $1.92 $2.36
February $0.50 $0.86 $1.31 $1.57 $2.02
March $0.44 $0.86 $1.31 $1.48 $1.93
April $0.39 $0.86 $1.31 $1.39 $1.84
May $0.41 $0.86 $1.31 $1.43 $1.87
June $0.46 $0.86 $1.31 $1.49 $1.93
July $0.47 $0.86 $1.31 $1.51 $1.96
August $0.51 $0.86 $1.31 $1.58 $2.03
September $0.46 $0.86 $1.31 $1.52 $1.96
October $0.45 $0.86 $1.31 $1.48 $1.92
November $0.48 $0.86 $1.31 $1.54 $1.99
December $0.57 $0.86 $1.31 $1.63 $2.08
27 The SoCalGas procurement and transmission charges were obtained from the following site:
https://www.socalgas.com/for-your-business/energy-market-services/gas-prices RES2023.xlsx (live.com)
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
ine Usage: The following quantities of gas used in individually metered residences are to be billed at the baseline rates:

All Customers:

Summer (May to Oct)
Winter On-Peak (Dec, Jan & Feb)
Winter Off-Peak (Nov, Mar, & Apr)
Daily Therm
Allowance

0.359

1.233

0.692
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 54 Appendices

6.2.4 San Diego Gas & Electric
Following are the SDG&E electricity and natural gas tariffs applied in this study. Table 25 describes the baseline territories that were assumed for each climate zone. A net surplus compensation rate of $0.04542/ kWh was applied to any net annual electricity generation based on a one-year average of the rates between December 2022 and November 2023.

Table 25. SDG&E Baseline Territory by Climate Zone
Climate Baseline
Zone Territory
CZ07 Coastal
CZ10 Inland
CZ14 Mountain
The SDG&E monthly gas rate in $/therm was applied on a monthly basis according to the rates shown in Table

26. These rates are based on applying a normalization curve to the November 2023 tariff based on ten years of historical gas data. CARE rates reflect the 20 percent discount per the G-CARE tariff.

Table 26. SDG&E Monthly Gas Rate ($/therm)
Month Total Charge
Baseline Excess
January $2.34 $2.63
February $2.28 $2.57
March $2.21 $2.51
April $2.14 $2.45
May $2.18 $2.48
June $2.23 $2.55
July $2.26 $2.57
August $2.32 $2.62
September $2.26 $2.59
October $2.21 $2.55
November $2.24 $2.57
December $2.38 $2.70
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
,.,,,,..'E
San Diego Gas & Electric Campany
S•n Diego. Calif"'".,
Totell Rates :

Descri ption - JOU DR1
Summer:

On,Pe, k
Olf0 Peok
Super Off,Pe>k
Winter.
a.,.P,,:,k
Olf-Ploal<
&Jper Off,Peak
Summer B:,seliM Adju,tmenl C:relfll up to
130% ol B:,seline
Win'ler 8 03<!lin~ 1u:1,.,stniml Credit up ID
130% ol 8:,seJiM
t.i.,imum Bill (S/day)
Description - JOU DR1- UDC Tot;>!
CARE Rate
Summe.r - CARE lbtes:

O.,,Pe:ik 0.25682
Off0 Peok 0.25682
Super Off.J>e•k 0.25682
Winter - CARE Rates :
°'1•Pe•k 0.43739
Olf,Pe;ak 0.43739
Super Off•Pe•k 0.4-1739
Summer B~~ine
Ad),slm"'1l Cradil up ID
130% ol Bueline
(0.117241
Win'le-r B.iseline Adju!1itme11l
C:n,rfit up ID 110% cd
Ba~fine
[0. 11724►
taii1T11Jm Bill ($/day) 0.190
Note:

Revised C aL P.U.C. Sheet No.

Canceling Revised CaL P.U.C. Sheet No.

SCHEDULE 10ll-OR 1
RESIOENrTIAl TIME-OF-USE
lJOC Tota l Rau DWR IBC• E:ECC IR.ato ♦
Wl'.t.lBC DWR Cn,d at

0.25752 R 0.00530 I 0.57043

0.25752 R 0.00530 I 0.25697

0.25752 R 0.00530 I 0.09233

0.43809 I 0.00530 I 0.19307

0.43809 I 0.00530 I 0.10855

0.4-3809 I 0.00530 I 0.08402
(0.11724) R
(0.11724) R

0.380 I
DWR BC+ EECCRate • T,ot•I
WF-NBC DWR.Cnodlt IR:alo•
R 0..00000 0.57043 I 0.82725
R 0.00000 0.25697 I 0.5 137!1
R 0..00000 0.09233 I 0.34915
I 0 .00000 0.19307 I 0.630441
I 0.00000 0.10855 I 0.54594
I O .QOOOO 0.08402 I 0.5214 1
R (0.11724)
R (0.11724)
I ,0.190
[
[
[
[
[
[
37022-E
36337 -E
Sheet 2
Total
Rai-e

0.33326 I

0.51979 I

0.35515 I

0.63646 I

0.55194 I

0.52741 I
(0.11724 ) IR
(0.11724) It

0.380 I
Total
Effedive
,care ltllte
l 0..55366 l
I 0.33'965 I
l 0.22725 l
I O.A1930 I
l 0..36160 l
I 0..34485 I
R (0.08004) R
R (0.08004) R
I 0.190 I
(1) Jai,,f R>""' ax,,isl ol LDC, Schedul~ D\'/R-8C (Ol!Jl•rtml!nll ol W:,1i,r Re,..,..101!< Bond Cll:iri,, I, Sdled.JI!! WF -HBC (CA Wldfre Fund d!"'JliO) and SdledJI!! EEOC~ Eneogy Commoditt Casl) r.sles, ,,.;th 'lho EECC rote• relledi~ .a DWR Cledtt. EECC rarles ""' ;>pplicobh, IO t:undl!!d OJ.tomen only Sae Special CondlllOn HI b POIA (Fl'o,,o.., ct...rg~ ~ iWerence Adju.aii er11) reC:Jve<y. (2) Talal R•tes p,esenli:d ...e lor w,slcmen !hat reooiYe commocily ~ ""d dewory """'°' rromUIJily. (l } DWR-8C •nd WF,NllC chorgos do not apply lo CARE ru, lomo,rs. (4) As idenb6oil 11 11,a RIies labh,s., amomer bih ..,11 also jncl,di, lim, oi,em •llllTVller ,.r,d winier medtts lo< ll»fl'! lljl ID 130111 of ba2line ID prDWGe Iha ral<! cappmg bane fils nd~d by Assembly Bill l X and Senllle Bil 1195-. (6} WF •N'BC r•te is 0.00630 • DWR-BC 8ond °'"'9" is 0.00000 .

Continued.
2C8 ISasued by Submitted Dec 30, 2022
Advice Ur. No. 4 129-E Dan Skopec Effective Jan 1. 2023 Seflior Vioe Presidenl
Decision Na. R.egu1atary A.ffai-s Resolrtion No. E-5217 R, I
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 55 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Time Periods
All time periods listed are applicable to local time. The definition of time will be based upon the date service is rendered_
TOU Periods - Weekdays
On-Peak
Off-Peak
Super Off-Peak
TOU Period - Weekends and
Holidays
On-Peak
Off-Peak
Super Off-Peak
Seasons: Summer
Winter
Summer
4:00 p_m_ - 9:00 pm_
6:00 a.m. - 4:00 p.m.;
9:00 p.m. - midnight
Midnight - 6 :00 a.m.

Summer
4:00 o.m. - 9 :00 o.m.
2:00 p_m_ - 4:00 p.m.;
9:00 p.m. - midnight
Midniqht - 2:00 p m.

June 1 - October 31
November 1 - May 31
Winter
4:00 p_m_ - 9:00 p_m_
6:00 a.m. - 4:00 p.m.

Excluding 10:00 a.m. - 2:00 p.m. in March and April;
9:00 p.m. - midnight
Midnight - 6 :00 a.m.
10:00 a.m. - 2:00 p_m in March and April
Winter
4:00 o.m. - 9 :00 o.m.
2:00 p.m. - 4:00 p.m.;
9:00 p.m. - midnight
Midnight - 2:00 p_m_

15. Baseline Usage: The following quantities of electricity are used to calculate the baseline adjustment credit.

Baseline Allowance For Climatic Zones•
Coastal Inland Mountain Desert
Basic Allowance
Summer (June 1 to October 31) 9.0 10.4 13.6 15.9
Winter (November 1 to May 31) 9.2 9.6 12.9 10.9
Alli Elecmic,..

Summer (June 1 to October 31) 6.0 8.7 15,2 17.0
Winter (November 1 to May 31) 8.8 12.2 22.1 17.1
" ""
a lmatic Zones are shown on the Tenilory Served, Map No. 1.

All Electric allowances are available upon appEcatlon to those customers who have permanently Installed spaoe healing or who have electrlc water heating1 and receive no enes-gy from another source.

Cost Effectiveness Analysis: Existing Single Family Building Upgrades 56 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
....,.f
San Diego Gas & Elecbic Company
San Diego, California
Revised CaL PU.C. Sheet No. 37217-E
Canceling Revised CaL PU.C. Sheet No. 37016-E
SCHEDULE EV-TOU-5 Sheet 1

COST-BASED DOMESTIC TIME-OF-USE FOR HOUSEHOLDS WITH ELECTRIC VEHICLES

APPLICABILITY
Service under this schedule is specifically limited to customers who require service for charging of a currently registered Motor Vehicle, as defined by the California Motor Vehicle Code, which is: 1) a battery electric vehicle ( BEV) or plug-in hybrid electric vehicle (PHEV) recharged via a recharging outlet at the customer's premises: or 2) a natural gas vehicle (NGV) refUeled via a home refueling appliance (HRA) at the customer's premises. This schedule is not available to customers with a conventional charge sustaining (battery recharged solely from the vehicle's on-board generator) hybrid electric vehicle (HEY).

Residential customers taking service on Schedule NBT, who are required to utilize EV-TOU-5 as their otheiwise applicable schedule (OAS) for electric service, do not require a qualifying motor vehicle, as described above to participate on Sched ule EV-TOU-5 .

Customers on this schedule may also qualify for a semi-annual California Climate Credit $(60. 70) per Schedule GHG-ARR.

TERR ITORY
Within the entire territory served by the utility.

Total Rates:

UDC Total DWRBC+ Description - EV-TOU-S Rates Rate WF-NBC Basic Service Fee 16.00
Summer
On-Peak 028032 I 0.00530
Off-Peak 0.28032 I 0.00530
Super Off-Peak 0.05588 I 0.00530
Winter
On-Peak 028032 I 0.00530
Off-Peak 028032 I 0.00530
Super Off-Peak 0.05588 I 0.00530
1C5
Advice Ur. No. 4154-E
Decision No. D.22-12-056
EECC Rate +
DWR Credit
I 0.53067 I
I 0.19567 I
I 0.09233 I
I 0.22587 I
I 0.16213 I
I 0.08402 I
Continued
Issued by
Total
Rate

16.00 0.81629 I

0.4812 9 I

0.15351 I

0.5114 9 I

0.44775 I

0.14520 I
Submitted
Effective
Resolution No.

Jan 30, 2023
Mar 1, 2023
N
N
N
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 57 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
....,,/E Revised Cal. P.U.C. Sheet No_
San Diego Gas & Electnc Company
San Diego, Cal~omia Canceling Revised Cal. P.lJ.C. Sheet No. 35912-E SCHEDULE EV-TOU-5 Slleet 4

COST-BASED DOMESTIC TIME-OF-USE FOR HOUSEHOLDS WITH ELECTRIC VEHICLES Notes: Transmission Energy charges indude the Transmission Revenue Balancing Account Adjustment (l;RBAA) of S(0.00242) per kWh and lhe Transmissicm Access Charge Balancing Account Adjustment (TACBAA) of S(0.01631) per kWh. PPP Energy charges includes Low Income PPP rate (LI-PPP) S0.01669/kWh, Non-low Income PPP rate (Non-U PPP) S0_00333"'Wh (pursuant to PU Code Section 399.8, lhe Non-LI-PPP rate may not exceed January 1, 2000 levels), Procurement Energy Efficiency Surcl\arge Rate of SQ.00422 /kWh, Galifom1a Solar lnrtiative rate (CSI) of $0.00000/kWh and Self-Generation Incentive Program rate (SGIP) $0.00122/kWh. The basic service fee of $16 per monlh is applied to a customer's bil and a 50% discount is applied for CARE, Medical Baseline, 0< Family Electric Rate Assistance Program (FERA) customers resumng in their basic service fees to be SB per monlh.

Rate Components
The Utility Distribution Company Total Rates (UDC Total) shown above are comprised of the following components (if applicable): (1) Transmission (Trans) Charges, (2) Distribution (Distr) Charges, (3) Public Purpose Program (PPP) Charges, (4) Nuclear Decommissioning (ND) Charge, (5) Ongoin9 Competition Transition Cnarges (CTC). (6) Local Generation Charge (LGC), (7) Reliability Services (RS), and (8) the Total Rate Adjustment Component (TRAC).

Certain Direct Access customers are exempt from the TRAC, as defined in Rule 1 - Definitions.

Franchise Fee Differential
A Franchise Fee Differential of 5.78% will be applied to the monthly b illings calculated under this schedule for all customers within the corporate limits of the City of San Diego. Such Franchise Fee Differential shall be so indicated and added as a separate item to &ills rendered to such customers.

Time Periods:

All time periods listed are applicable to actual "clock" time) TOU Period - Weekdays Summer Winter
On--Peak 4:00 p.m. - 9:00 p.m. 4:00 p.m. - 9:00 p.m.
b:w a.m. - 4:UU p.m.

Off-Peak 6:00 a.m. - 4 :00 p.m.;
9:00 p.m. - midnight Exduding 10:00 a.m.-2:00 p.m.in March and April; 9:00 p.m. - midnight
Super-Off-Peak Midnight - 6:00 a.m. Midnight - 6:00 a.m. 10:00 a.m. - 2 :00 p.m. in March and April
I uu t"enuu - vveeKenas Summer Winter and Holidays
On--Peak 4:00 p.m. - 9 :00 p.m. 4:00 p.m. - 9 :00 p.m.

Off-Peak 2:00 p.m. - 4 :00 p.m.;
9:00 p.m. - midnight
2:00 p.m. - 4 :00 p.m.
9:00 p.m. - midnight
Super-Off-Peak Midnight - 2:00 p_m_ Midnight - 2:00 p_m_ Seasons:

Summer June 1 - October 31
Winter November 1 - May 31
Continued
4C8 Issued by Submitted Dec 30, 2022
Advice Llr. No. 4129-E Dan Skopec Effective Jan 1, 2023 Senior Vice President
Decision No. Regulatory Affairs Resolution No. E-5217
R,R
I
R
I
I
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 58 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
-f
s.., Die90 Gas & Elecliic; Cttnpa n)'
San Diego. califmria
Orjglnel Cal. P.U.C. Sheel No. 37195-'E
Canceling Cal. P.U.C. Sheel No.

SCHEDULE TOU-ELIEC Sheet 11
DOMEST1IC llt,IE-OFJUSE FOR HOI..IS8HOLOS Wln-t ELECTR IC VEHICUES. EN ERGY STORAG E.

OR !ELECTRIC HEAT Pll!Jt.tPS
ARPLICA BILllY
Service under this scl'ledul'e is available on a volun1ary basis. for all resiidential ruslomBfS who meet one or more of Iha tollowing c~eria: 1) require sernce for clhargin,g or a currenlly ragislarad Motor Va'hida. as de'1ned by the California Motor Vehicle C-ooe, 'Whkh ris: a) a battery el.ectric VBhlcle (BEV) or plug-,ln hybrid eleciric ve:hicle (f>HEV) recharged via a recharging ou1Jet at the customer 's premises : or b) a natural gas \lehide (NGV) refoeled I/fa a home rerualing applia nce (HRA) al 11\e customer's premises; 2) have a bahind lhe-miiler energy storage device th.at is intsrconnecied through Elednie Rule 21; or 3) have an electric heat pump •for water lhaatlng or climate controL This sc'had ule iS not available to customa-rs with a conventional charge sw;taining (battery teeharged solsly from, the vehicle"s on-board generatot) hybrid a!iicittic vehidle (HEV).

This schedule is also available lo, customers who meet ll'le above c riteria ,as wel as quality for lhe Cal ifornia Alla-mate Rates for Energy {CARE) Program as outline<I in Schedule E-CARE , and/or Medical IBasa!ine as oullineo in Special Conchoon (SC) 5. The ra!es for CARE customers anc:llor Medical IBas8line are ident.-lild in lhe rate rabies below as TOU-ELEC-CARE and TOU-8 LEC-MB rates. respectiv1tty. lbiire is a cap of 10,00CI customers w'ho may take service on lrns rats. as d.e6ned rn SC 10.

Pu.rsuant to, o .22-·11-022. customilrs that opt-in to seheduta TOU-ElEC Within its fust year or b8in9 offered have the qplion to return to lheir previous rate sdledu le prior lo lhe 12-month imquiremenL See $C4 Tern,s or SGl'\rioe lor al requuaments.

CtJstomM; on Ill.is schedule may also qualify re, a sem..a.nnual California Cllmate Credit $(611'.70) per Sdiedu.e GHG-AR R.
iERRJTORY
Within lhe entire terrilory seNed by lhe utility.

RATES
Total Rates:
lltiotiptian- TOU-.El.EC Rams UDC TOUI DWRBC•
R.al1> WF0 N8C
Mcn!hty SeMCB f;ee 18..00
Summer
On-Pmk D.22228 0.00530
011°Pmk 0.22228 0.00530
Super Off~""k 0.22228 0.00530
WJnter
O..,Peak 0.22228 0,00530
Oll>Pmk 0.22228 0.00530
Super Off~""k 0.22228 0,00530
tH6
Adw:e Ur. No. 4 152-E
OedSIOfl No. 0.22-11-022
EECC Riite

0.61588

0.14644

0.09785

0.27480

0.13323

0.08905
Conlin11ed
Issued by
T-
Rate

18.00 0.74328

0.3740:2

0.32543

0.50218

0.36081

0.31663
Submitted
ElfeciJve
Resolution l'lo.

Jan 31. 2023
Jan 31. 2003
N
N
N
N
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 59 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
San Diego Gas & Elecrric Canp;any
San IJiesa. ~rcrri.s
Original
Canoe.ling
CaL P.U.C. Sheel No.

CaL P.U.C. Sheel No.

SCHED ULE TOU-ELEC
37196-E
Sheet 2
DOMESTIC TIME -OF-USE FOR HOUSEHOLDS Wllll ELEC1R IC VEHICLES. ENERGY STORAGE .

OR ELIECTRIC HEAT PUMPS
.BAIES. ·(Contiru.ie<J)
Description - TOU,E:LE.C CARE UDC Toial DWRIIIC ♦ TO!lal Tow EEOC Fttu, Eff;;ctl.,. Rates Rat,, WF.JiBC Rm CARERm
Monlhly SeMCe Fee HUX! 16.00 16.00
Summe r - CAR,E Rates:

OII.P<>ak 0.221158 0.00000 0.515611 0.73726 0 .. 49222
Qa.P""k 0.221158 0.00000 0..14644 0.36Ml2 0.2401!
&l"'f Ofl.P,ea 0.22158 0.00000 0..09735 0;31943 0.20698 Winter- CAAE Rates:
a,,,p,.,,k 0.221158 0·.00000 0.27480 DA9618 0.32763
Cla.PRl< 0.221158 0,00000 0..13323 0.35481 0.23U1
s.,""' Otl,.Pea 0.221158 0,00000 0..08905 0.31063 0.201195 Description - TOU,E:LEC MB UDC Total DWRIIIC • Total Tow EECC Rat,i, Elf6ctM MB Rates Rat,, WF-HBC Raia
-· Monlhly SeMCe Fee HI.DO 16.00 16.00
Summe r -MB Rates:
o,,,p..,,, 0.22228 0,00000 0.515611 0.73796 0.59037
Qa,P.,.ak 0.22228 0.00000 0..14644 0,38872 0..29498
s.,""' Ofl.Poa 0.22228 0.00000 0..09735 0:320 13 0.251110 Winter - MB Rates:
a,,.p..,,, 0.22228 0.00000 0.27480 OA96118 0.39760
Qa.Pe.il< 0.22228 0.00000 0..1332:3 0-35551 0.28441
Silp<!f QIW'<,al 0.22228 0.00000 0.08905 0.31133 0.24906 Noll!:
(1) Toltlt Rates oo,.,,is1 d UOC. &hodiJi<- OWR.SC {~ cl W:tr.t Re"'°1le5 Bcnl Ctwg,,) . Schedule \'IF.NBC (CA 'Mklft"' FLnf chag!!) and Sdled:Jle · E:ECC jElec:lric Ens9)' Canm:xfily CMQ ral!ts. EECC rai..s .,., "l'f'lica~ II, bundl!,d cummon t11ly.

SeeSp:dal Ooodilla, 9roi PCIA(P<lWer Cliar~ ~hljustmenl) """'Yefl' • (2) T olOI Roil!s P"'""""'d ,.,., lbt __,,,., lhai ...,.,;,,, oormncxliiy "'4'f'ly and di!lw,ry ~ llom UBty . o..,.,rces in tmt.ol r,,11,s paid by Oiled! AazS> (DA) an! Canrrunity O!aice Aggr9bDn (OCA) aJslameB ""' i:!,n tifrod in Sdledi.e llA.CRS and OCA.

CRS, ,,,,spec•,.;,.
($) DWR<BC a,d WF-NBC chorg,,s do not a.l'\lly lo CA.RE or Medical B:ISl!line """1<lrlH!n. (4) ltW"-"IBC raleis0Jl0530 + C111/R.SC BandOusg,, is 0.00000 2HS l!lsued by
Adw:e Llr. No. 4152-E
DeclSiOO No. D.22-1i~
Submitted
Effective
Resolution No.

Jan 31. 2023,
Jan 31. 2023
N
N
N
N
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 60 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
llio(IO G.,s & IElecbic Cmnp,o11J
S.m Dw,go. Califmna
Orlglnel
Canceling
Cel. P.U.C. Sheet No.

Cel P U C Sheet No ..

SCHEDULE TOl!J-ELEC
37197-E
Sheel3
DOMESTIC TIME-OF-USE FOR HOUSEHOLDS Willi ELEClRIC VEHtCLES, ENERGY STORAGE,

RATES (CONTINUED)
UDC RalH
Oe5U11flm - Trmism Distr JOU-El.EC
MonlNyS- fN 18-CIO 1$11.kl)
StJmmer.

On.P .. .u 0.07340 0.10796
Ol.f'e-ak 0.07340 D.10796
~pe,OM'eak 0.07340 0.10798
Winur.

On.f' .. .u 0.07340 0.10796
OI.P .. .u 0.07340 0.10796
&ipe,Otf.l'l,al 0.07340 0.10798
Dastnplian -
TOU-ELE C • CARE Transna Dlsb:

Ribls
~S-fN
lll1.kl ,a..oo
S<Jmnl«C-6!RiE
lb lle3:

On.f'e;; k 0.07340 0 .10726
OI.P..,;,k 0.07340 0.10726
&!per Ot!.l'l,al 0.07340 0.10726
W111~r ~I! Rain:

On.f'-l!'ak 0.07340 0.10726
Ol-k 0.07340 0.10726
&ipe,Ot!.1'1,a 0.07340 0.10726
Deoacr(pllon -
TOU-ELE C • l&S - T~m Dlsb:
~ SeNi>I f.M 16,.00 15'1.kl))

5.,....,,.. - MB-Ral<l,o
On.f'-1!'.u 0.073-44) 0.107911
OI.P ... ak 0.073-44) 0.107911
&iper Ot!.1'1,-. 0.073441 0 .107911
W.inucr ,. M:B R:iltas
On.P ....... 0.073441 0 .107911
Ol.f'!!cl 0.0~ 0.107911
&i.per Ot!.1'1,a 0..073-44) 0.107911
3Htl
Adwce Llr. ND. 4 152-E
Decision No. 0.22-11-022

OR ELECTRIC HEAT PUMPS

PPP ND CTC
D,02548 0.00007 0.00 153
0,02546 0.00007 0.00 153
0,02546 0.00007 0.00 153
0,02546 000007 0.00 153
0·,02548 000007 0.00 153
0,02548 000007 0.00 153

PPP ND CTC

0.02548 0•.00007 0.00 153

0.02548 0.00007 0.00153

0.0254t 0.00007 0 .00163,

0.0254t 0.00007 0 .00153,

0.02548 0.00007 0 .00163,
OJl2546 0.00007 0.00163,

PPP ND CTC

0.0254t 11.00007 0.00153,

0.0254t 11.00007 0.00163,
0 .0254t 0.00007 0.00153,

0.02548 0.00007 0.00163

0.0254t 0.00007 0.00163

0.0254t 0.00007 0..00153
(Cootlnued l
l~!IUl!d by
LGC RS

0.01383 0.00000

0.01383

0.01383
ILGC

0.01383

0.01383
0,01383
1LGC

0.01383

0.00000

0.00000
R:S

0.00003

0.00000
D..00003
R:S
D..00003

0.00000
D..00003
D..00003
D..00003
D..00003
Submitted
Effective
TRAC

0.00000

0.00000
TRAC

0.00000

0.00000
TRAC

0.00000

0.00000
Resolution No.
uoc
Total
18_()1)

0.22228

0.22228
UDC
Toial

16..00

0.22161!

0.22161!
G.22161!
Q.22161!

0.22161!
UDC
Total

16..00
D.22228
G.22228

0.22228

0.22228
G.22228

0.22228
Jan 31. 2023
Jen 31. 2023
N
N
N
N
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 61 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
l Cel. P.U.C. Sheet No. 37198-E
Canceling Cel. P.U.C. Sheet No.

SCHEDULE TOU-ELEC Sheel4
DOMESTIC TIME-OF-USE FOR HOUSEHOLDS WITl·t ELEClRIC VEHICLES . ENERGY STORAGE,

OR ELECTRIC HEAT PUMPS
Note..: Tran!lrrl!l!IIOM, Energy i:narges linmJCle he Transmission R'e~ Balancing Acoan Adjuslrmnt (TRBAA) al ${0.oo2A2) per kWh and lhe Transml!ism Aooesa Charge Balan~ Aa:ol.lll f141as~ (TACSAA) of $(0.01631) per kWh. PPP EnEfllY charges~ law Income PPP ra11! (LI-PPP) S0.01668/k:Wh, Non-low lnoome PPP rera (Non-U PPP) S0..0033JJkWh (pursuant 1D PU Code Section 399.8. lhe Non-4..1-PPP ra1a may not exceed Ja,uary 1. 2000 levels).

Procurement Energy 6flcieocy SWdlerge, Rate of $0.00422 /kWh, California Soler tnitia11ve rate (CSI) cl $0.0000MWh and Self.Generabo11, Incentive 1Pr<9am rate (SGIPj $0.00122/kWh.

Rate Component$
The Utility 0islribu'liion Company Totall IRates (UDC Total) shown above are comp,rised c:11 the ldllowing components (ii appUcabJe): (1) Transmission (Trans) Charges, (2) Distlib<Ulion (Dislt) Oiarges.. (3) Public P,wpose Program (PPP) Charges .. (4) Nuclear Oooommissioning (ND) Charge, (5) O"-)oin,g Competition Tratwlion Charges (CTC), ·(6) Local Genetalion Chat9e (LGC). (7) Reliability Services (RS), and (8) lhe Total Rate Adjustm811lCornponent (llRAC) .

Certain DilectAocess .customers are !Hlempt from lhe TRAC, M def111ed in Rule 1 - Daf111ilions ..

EcaOdlist fee Piftere01,;a1
A Franchi:se Fee Differential of 5. 78% wiD be applied lo Iha monthly billings calculaled under 'thiss schedule ror all custome<:s wilhin Ille oorporate limits ol lhe City or San Diego. Suc:11 IFfaochiH Fee Differential shall be so indicated a.nd added as a separale [tern lo bills rendered to sudh cus'klmer!;.

Tlma Periods:

All time periods listed are applicable Lo actual "dock" lime) TOU Period - Wae'kdayt; SummBf Wini.er
On-Peak 4i00 Ip.m. - 9 :001rn;_ 4:00 p.m. - 9i00 p•.m.
16:00a..m . -4:00p •.m. 6:00 a.m. - 4 :00 p.m,; Off.P-eak 9~00 Ip.m. - midnighl Exdlidin,g 10:00 a.rn.-2:00 p.m.i:n Marth aoo April; '9:00 p.m. - midnight
Midnight - 6 :00 am. Super-Off.P1tak Midnight - 6:00 rum. 10:00 ajm. -2:00 p.m. in March andApr li TOU Penod - Weekend~ SummBf and Holidays
On..f>-eak 4i00 Ip.m. - 9 :00 p.m, 4:00 p.m. - 9:00 p•.m.

Ott-Peak 2l00 Ip.m. - 4 :00 p.rn,; 2:00p.m. - 4 :00 p-.rn. 9~00 Ip.m. - midnighl '9:00 p.m. - midnight
Super-Off..P1tak Midnigh.t - 2:00 p.m. Midnight - 2 :00 p.rn.

Seasons;
Summer June l - Odober 31
Winter Novernbe r 1 - May 3-1
Continued
4H1 Issued by
Adw:e Llr. No. 4152-E
D.22-tt-022
Winl8r
Submitted
Effective
Resolution No.

Jen 31. 2023
Jan 31. 2023
N
N
N
N
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 62 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
•1111111/E Revised Cal. P.U.C. Sheet No.

San Diiago Gas & Electric Compa ny
San Diego, Califomia Canceling Revised Cal. P.U.C. Sheet No.

APPLICABILITY

SCHEDULE E-CARE

CALIFORNIA AL TERNA TE RA TES FOR ENERGY
35718-E
32576-E
Sheet 1
This schedule provides a California Alternate Rates for Energy (CARE) discount to each of the following types of customers listed below that meet the requirements for CARE eligibility as defined in Rule 1 , Definitions, and herein, and is taken 1in conjunction with the customer's otherwise applicable service schedule.
1) Customers residing in a permanent single-family accommodation, separately metered by the Ullllty.
2) Multi-family dwelling units and mobile home parks supplied through one meter on a single premises where the individual unit is submetered.
3) Non-profit group living facilities.
4) Agricultural employee housing facilities.

TERR ITORY
Within the entire territory served by the Utility.

DISCOUNT
1) Residential CARE: Qualified residential CARE customers will receive a total effective discount according to the following:
2015 2016 2017 2.018 2019 2020 and
beyond
crrect1ve 40% 39% 38% 38% 36% R 35% Discou nt
1C5
Pursuant to Commission Decision (D.) 15-07-001, the average effective CARE discount for residential customers will decrease 1% each year until an average effective discount of 35% is reached in 2020.

The average effective CARE discount consists of: (a) exemptions from paying the CARE Surcharge, Department of Water Resources Bond Charge (DWR-BC), Vehlde-Grid Integration (VGI) costs, and California Solar !I nitiative (CSI); (b) a 50% minimum bill relative to Non-CARE; (c) the California Wildfire Fund Charge (WF-NBC) and (d) a separate line- T item bill discount for all qualified residential CARE customers with the exclusion of CARE Medical Baseline customers taking service on tiered rates schedules. D.15~07-001 retained the rate subsidies in Non-CARE Medical Baseline tiered rates and thereby a separate line-item discount is provided for these GARE Medical Baseline customers Continued
Dec 30, 2021
Advice ltr. No. 3928-E
Issued by
Dan Skopec
Submitted
Effective Jan 1, 2022
\/if"Q PrP---t;i.if'tir;,n t
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 63 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 64 Appendices

6.2.5 City of Palo Alto Utilities
Following are the CPAU electricity and natural gas tariffs applied in this study. The CPAU monthly gas rate in $/therm was applied on a monthly basis according to the rates shown in Table 27. These rates are based on applying a normalization curve to the October 2023 tariff based on seven years of historical gas data. The monthly service charge applied was $14.01 per month per the November 2023 G-1 tariff.

Table 27. CPAU Monthly Gas Rate ($/therm)
Month G1 Volumetric
Total Baseline
G1 Volumetric
Total Excess
January $1.83532 $3.35639
February $1.38055 $2.59947
March $1.32506 $2.47695
April $1.29680 $2.44038
May $1.29511 $2.43804
June $1.32034 $2.45406
July $1.35688 $2.61519
August $1.40696 $2.67944
September $1.42130 $2.70301
October $1.42310 $2.48300
November $1.46286 $2.45547
December $1.62415 $2.62128
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
. APPLICABILITY:

RESIDENTIAL ELECTRJC SERVICE
UTILITY RATE SCHEDULE E-1
This Rate Schedule applies to separately metered single-fami ly residential dwellings receiving Electric Service from the City of Palo Alto Utilities.

B. TERRJTORY:

This rate schedule applies everywhere the City of Palo Alto provides Electric Service.

C. UNBU DLED RA TES:

Per kilowatt-hour (kWh) Commodity
Tier l usage
Tier 2 usage
Any usage over Tier l
Minimum Bill ($/day)
D. SPECIAL NOTES:
$ 0.09999

0.13873
I. Calculation of Cost Components
Distribution Public Benefits
$ 0.06954 $ 0.00568

0. 10225 0.00568
Total
$ 0.17521

0.24666

0.4181
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes.

On a Customer's bill
statement, the bill amount may be broken down into appropriate components as calculated under Section C.

2. Calculation of Usage Tiers
Tier I Electricity usage sha ll be calculated and billed based upon a level of 11 kWh per day, prorated by Meter reading days of Service. As an example, for a 30-day bill, the Tier I level would be 330 kWh. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.

ClTY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No E-1-1
dated 7-1-2022
O
CITYOF

PALO A LTO

UTILITIES
{End}
Sheet o E-1-1
Effective 7-1-2023
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 65 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Firm Service Rates
A. Tim.,..,r-D•;v (S-ll p.m.) R•le
Residential Time-of -Day Service
Rate Schedule R-TOD
•l'rf'.ctiwlt!I ul O'htlle Id J Of'ttlhir•li ul El'kct.lw u at fflntiwn u/ h■uryl.lOU JJtns· I. JU• .\1a\' 1. 2•u J101uar, l.lGlS ~b,d.2015 IHIIMG!MINl5lh
Nu•S•nantr Stbun (Octohn-• M:ty)
s,1 lfnl lntraslrvcru.rt fl....ed Clriilrlt prr ""1fl ,A p#!'rlM.tU lltt1rlcii1~1 l.lt- f' O.artt
P.,l$/lH~
Off.Peak SIi H"'
Summer SrbOd (June-• Sep1mftr }
S~'J ltrd lntrascrucru.rt fi.1.-ed('kartt pb' "'°'1tA pn-mnu ll« lril"i.l~ 11'11(t.t Cliara.e
P.,l$ /1H~
Mod-l',,ak$/Hll
Off.Peak Sil it•
B. Optional Critical P~'8k Pricing Rate
m.so $24.IS $24.llO W.30
SO.ISO SO.Im S0.16" $0.1678
S0.1120 $0.IISI S0.1183 S0.1215
m.so $24.IS $2◄.llO $2S.$0
SO.l-"79 S0.33<,9 S0.3462 $0.JS57
$0.11164 $0.1914 $0.1967 $0.2001
$0.13$0 S0.1387 SO. 14:!S $0.1464
I. The CPP R.ale base prices per time-or-<lay period arc lhe same as lhe prices per time-or-day period for TOD (S--8 p.m. ).

2. The CPP Ra1e prosidcs o discount per kWb on the Mid-Peak and Off-Peak prices during summer months.

3. During CPP EvenlS. customers will be charged for ""''llY used 31 the applicable Li~r-<la y period rate plus the CPP Ralc Event Price per k \l.'h :as :sho"'TI on www .srnud._org.. $26.20
$0.17'..A
$0.1248
$2t,.20
$0.36S5
$0.2077
$0.ISQS

4. During CPP EvenlS. energy exported lo the grid will be compensated al the CPP Rate Event Price per kWh as shown oo www.smud.org..

S. The CPP Rale Event Price and discount will be upda1ed annu.ally al SMUD's discn,1ion and posted on www.smud.org.

C. Plug-In Ell-d ric Vehicle CndH (r•k cafl-gorin RTOl an d RTC I) Thi!i credit is for l"Qidcntia.l customcn. who have a licensed passenger battery electric plug-in or plug-in hybrid dt'Clric ,·chide.

Cred.iL applies lo all clcclricity usage charges from midnight to 6,00 a.m. daily.

Electric Vehicle Credit.. ................ ... .. ........... ........................ -$0.0ISOlkWh Ill. Electricity Usage Surcharges
Refer to the follo\\'Jng rate schedu1es for deta ils on these: surcharges_ A. Hydro Gcnr •tion Adju5fmenl (HCA). Refor to Rate Schedule HGA.

IV. Rate OpUon Menu
A~ E:nt rgy A.ni5htncc Pn ~nm R ide. Refer to Rate Schedule EAPR.

B. Medi0tl Equipmt nt Di,count Program. Rder to Rate Schedule MED.

C. J oint Partici pation in Mnli CJiJ Equipment Di~ unt a nd Encr-gy Assi!!itance Pl"o-gr:iim Rate. Refer lo Rate Schedule MED.

SACRAMEN TO MUNICIPAL UTILITY DISTRICT
Resolution No. 23-09.09 adopted September 21, 2023
Sheet No. R-TOD-2
Effective: Septembe r 22, 2023
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 66 Appendices

6.2.6 Sacramento Municipal Utilities District (Electric Only) Following are the SMUD electricity tariffs applied in this study. The rates effective January 2023 were used.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
. 11,ne-of-Da~ (5--8 p.m.) Rate (r111e category RT0-2)

1. The TOD (5-8 p.m.) Rate is tbe standard rate for SMUD's res_idential customers. Eligjble customers can elect the fixed .Rate under Rate Schedule Ras an alternative m1e.

2. The TOD (5-8 p.m.) .Rate is an optional rate for cm,tomers who have an e-ligible renewable electrical generation facility under Rate Schedule NEM I that was approved for installation by SMUD prior 10 January I, 2018.

3. This rate has five kilowan-h.ou:r (kWh) prices, depending on rhe rime-of-day and season as shown below. Holidays are de10iled in Section V. Conditions of Service.

Peak Weekdays be1ween 5:00 p.m. and 8,00 p.m.

Summ e:r Mid-Pe11J.: Weekdays between noon and midnight ex.cept d'uring lhe {JUl'I E - Sept 30) Pe.ak hours.

Off-Peak All other hours, including weekerids and '1olidays1. on-Somm er Peak Weekdays belween 5:00 p.m. and 8,00 p.m. (Ocl l - May JIJ Off-Peak AH other hours, including weekends and holidays1. 1 See Section V. Condi1ion:s of Service
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 67 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 68 Appendices

6.2.7 Fuel Escalation Assumptions
The average annual escalation rates in Table 28 were used in this study. These are based on assumptions from the CPUC 2021 En Banc hearings on utility costs through 2030 (California Public Utilities Commission, 2021a) . Escalation rates through the remainder of the 30-year evaluation period are based on the escalation rate assumptions within the 2022 TDV factors. No data was available to estimate electricity escalation rates for CPAU and SMUD, therefore electricity escalation rates for PG&E and statewide natural gas escalation rates were applied. Table 29 presents the average annual escalation rates used in the utility rate escalation sensitivity analysis shown in Section 3.2.4. Rates were applied for the same 30-year period and are based on the escalation rate assumptions within the 2025 LSC factors from 2027 through 2053.28 These rates were developed for electricity use statewide (not utility-specific) and assume steep increases in gas rates in the latter half of the analysis period. Data was not available for the years 2024, 2025, and 2026 and so the CPUC En Banc assumptions were applied for those years using the average rate across the three IOUs for statewide electricity escalation.

Table 28: Real Utility Rate Escalation Rate Assumptions, CPUC En Banc and 2022 TDV Basis
Statewide Natural
Gas Residential
Average Rate
(%/year, real)
Electric Residential Average Rate
(%/year, real)

PG&E SCE SDG&E
2024 4.6% 1.8% 1.6% 2.8%
2025 4.6% 1.8% 1.6% 2.8%
2026 4.6% 1.8% 1.6% 2.8%
2027 4.6% 1.8% 1.6% 2.8%
2028 4.6% 1.8% 1.6% 2.8%
2029 4.6% 1.8% 1.6% 2.8%
2030 4.6% 1.8% 1.6% 2.8%
2031 2.0% 0.6% 0.6% 0.6%
2032 2.4% 0.6% 0.6% 0.6%
2033 2.1% 0.6% 0.6% 0.6%
2034 1.9% 0.6% 0.6% 0.6%
2035 1.9% 0.6% 0.6% 0.6%
2036 1.8% 0.6% 0.6% 0.6%
2037 1.7% 0.6% 0.6% 0.6%
2038 1.6% 0.6% 0.6% 0.6%
2039 2.1% 0.6% 0.6% 0.6%
2040 1.6% 0.6% 0.6% 0.6%
2041 2.2% 0.6% 0.6% 0.6%
2042 2.2% 0.6% 0.6% 0.6%
2043 2.3% 0.6% 0.6% 0.6%
2044 2.4% 0.6% 0.6% 0.6%
2045 2.5% 0.6% 0.6% 0.6%
2046 1.5% 0.6% 0.6% 0.6%
2047 1.3% 0.6% 0.6% 0.6%
2048 1.6% 0.6% 0.6% 0.6%
2049 1.3% 0.6% 0.6% 0.6%
2050 1.5% 0.6% 0.6% 0.6%
2051 1.8% 0.6% 0.6% 0.6%
2052 1.8% 0.6% 0.6% 0.6%
2053 1.8% 0.6% 0.6% 0.6%
28https://www.energy.ca.gov/files/2025-energy-code-hourly-factors. Actual escalation factors were provided by consultants E3.

California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 69 Appendices
Table 29: Real Utility Rate Escalation Rate Assumptions, 2025 LSC Basis Year
Statewide Natural
Gas Residential
Average Rate
(%/year, real)
Statewide
Electricity
Residential
Average Rate
(%/year, real)
2024 4.6% 2.1%
2025 4.6% 2.1%
2026 4.6% 2.1%
2027 4.2% 0.6%
2028 3.2% 1.9%
2029 3.6% 1.6%
2030 6.6% 1.3%
2031 6.7% 1.0%
2032 7.7% 1.2%
2033 8.2% 1.1%
2034 8.2% 1.1%
2035 8.2% 0.9%
2036 8.2% 1.1%
2037 8.2% 1.1%
2038 8.2% 1.0%
2039 8.2% 1.1%
2040 8.2% 1.1%
2041 8.2% 1.1%
2042 8.2% 1.1%
2043 8.2% 1.1%
2044 8.2% 1.1%
2045 8.2% 1.1%
2046 8.2% 1.1%
2047 3.1% 1.1%
2048 -0.5% 1.1%
2049 -0.6% 1.1%
2050 -0.5% 1.1%
2051 -0.6% 1.1%
2052 -0.6% 1.1%
2053 -0.6% 1.1%
California Energy Codes & Standards | A statewide utility program 2024-04-25

-
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 70 Appendices
Get In Touch
The adoption of reach codes can differentiate jurisdictions as efficiency leaders and help accelerate the adoption of new equipment, technologies, code compliance, and energy savings strategies.

As part of the Statewide Codes & Standards Program, the Reach Codes Subprogram is a resource available to any local jurisdiction located throughout the state of California.

Our experts develop robust toolkits as well as provide specific technical assistance to local jurisdictions (cities and counties) considering adopting energy reach codes. These include Cost-effectiveness research and analysis, model ordinance language and other code development and implementation tools, and specific technical assistance throughout the code adoption process.

If you are interested in finding out more about local energy reach codes, the Reach Codes Team stands ready to assist jurisdictions at any stage of a reach code project.

Visit LocalEnergyCodes.com to Contact [email protected] Follow us on LinkedIn access our resources and sign up for no-charge assistance from expert for newsletters. Reach Code advisors
California Energy Codes & Standards | A statewide utility program 2024-04-25

Palo Alto City CouncilSeptember 8, 2025

Palo Alto City Council
September 8, 2025