Cities Index.
Cost Effective Analysis

Riverside City Council
December 6, 2022

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Cost Effective Analysis
Meeting
December 6, 2022
Body
Riverside City Council
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Text extracted from the city's file for reading and search. Open the original on riversideca.legistar1.com. That file is the official record.

Prepared by:

Frontier Energy, Inc
Misti Bruceri & Associates, LLC

Prepared for:

Kelly Cunningham, Codes and Standards Program, Pacific Gas and Electric Last modified: 2022/09/28
Revision: 1.0
2022 CODE CYCLE :

Custom Cost Effectiveness Analysis:

City of Riverside

Cost-Effectiveness Analysis: City of Riverside

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.

Copyright 2022 , Pacific Gas and Electric Company . All rights reserved, except that this document may be used, copied, and distributed without modification.

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 disclose d 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
B/C – Benefit-to-Cost Ratio
CBECC - California Building Energy Code Compliance
CBSC - California Building Standards Commission
CEC - California Energy Commission
CZ – Climate Zone
GHG - Greenhouse Gas
IOU – Investor-Owned Utility
POU – Publicly Owned Utility
PG&E – Pacific Gas & Electric (utility)
SCE – Southern California Edison (utility)
SCG – Southern California Gas (utility)
SDG&E – San Diego Gas & Electric (utility)
CPAU – City of Palo Alto Utilities
LADWP – Los Angeles Department of Water and Power
kWh – Kilowatt Hour
NPV – Net Present Value
PV - Solar Photovoltaic
TDV - Time Dependent Valuation
Title 24 – California Code of Regulations Title 24, Part 6

Cost-Effectiveness Analysis: City of Riverside

TABLE OF CONTENTS
1 Introduction ................................................................................................................................................................ 4 2 Methodology and Assumptions ............................................................................................................................... 5

2.1 Reach Codes ........................................................................................................................................................................ 5

2.1.1 Benefits ......................................................................................................................................................................... 5

2.1.2 Costs ............................................................................................................................................................................. 5

2.1.3 Metrics .......................................................................................................................................................................... 5

2.1.4 Utility Rates ................................................................................................................................................................... 6

2.2 Greenhouse Gas Emissions ................................................................................................................................................. 6 3 Prototype Designs and Measure Packages ............................................................................................................ 7

3.1 Residential Occupancies ...................................................................................................................................................... 7 4 Results ........................................................................................................................................................................ 8

4.1 Residential Occupancies ...................................................................................................................................................... 8 5 Summary .................................................................................................................................................................. 11 6 References ............................................................................................................................................................... 12 7 Appendices .............................................................................................................................................................. 13

7.1 Map of California Climate Zones ......................................................................................................................................... 13

7.2 Utility Rate Schedules ......................................................................................................................................................... 14

7.2.1 City of Riverside .......................................................................................................................................................... 14

7.2.2 SCG ............................................................................................................................................................................ 16

7.2.3 Fuel Escalation Rates ................................................................................................................................................. 17

LIST OF TABLES
Table 1. Riverside Public Utilities Tariffs ............................................................................................................................................... 6 Table 2: Residential Prototype Characteristics ..................................................................................................................................... 7 Table 3: D Rate Single Family Cost-Effectiveness Summary ............................................................................................................... 9 Table 4: D Rate ADU Cost-Effectiveness Summary ............................................................................................................................. 9 Table 5: D-TOU Rate Single Family Cost-Effectiveness Summary .................................................................................................... 10 Table 6: D-TOU Rate ADU Cost-Effectiveness Summary .................................................................................................................. 10 Table 7: Summary of All-Electric Efficiency EDR2 Margins and Cost-Effectiveness .......................................................................... 11 Table 8: Summary of Mixed Fuel Efficiency EDR2 Margins and Cost-Effectiveness .......................................................................... 11 Table 9: Real Utility Rate Escalation Rate Assumptions ..................................................................................................................... 17

LIST OF FIGURES
Figure 1. Map of California climate zones. .......................................................................................................................................... 13 Cost-Effectiveness Analysis: City of Riverside 4

localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-09-28

1 Introduction
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.

This report is an addendum to the 2022 Single Family New Construction Cost-effectiveness Study modified to accurately represent the City of Riverside, California. The study analyzes cost-effectiveness of measures and measure packages that exceed the minimum state requirements, the 2022 Building Energy Efficiency Standards, effective January 1, 2023, in newly constructed buildings. 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 Reach Codes Team.

The prototype building designs analyzed in this study are newly constructed:
• Single Family Home
• Detached Accessory Dwelling Unit (ADU)
The methodology, prototype characteristics, and measure packages are retained from the main studies referenced above except for the energy costs are calculated using local Riverside Public Utilities rates. Measure packages include combinations of energy efficiency, electrification, solar photovoltaics (PV), and battery storage with results evaluated for California Climate Zone 10.

This report presents measures or measure packages that local jurisdictions may consider adopting to achieve energy savings and emissions reductions beyond what will be accomplished by enforcing minimum state requirements, the 2022 Building Energy Efficiency Standards (Title 24, Part 6), effective January 1, 2023.

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. Although a cost-effectiveness study is only required to amend Part 6 of the CA Building Code, it is important to understand the economic impacts of any policy decision. This study documents the estimated costs, benefits, 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.

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].

Cost-Effectiveness Analysis: City of Riverside 5

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2 Methodology and Assumptions
The Reach Codes Team analyzed two residential prototype designs to represent a variety of common building types using the cost-effectiveness methodology detailed in this section below. The general methodology is consistent with analyses of other prototypes, whereas some specifics such as utility rate selection are customized for Riverside Public Utilities rates.

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

2.1.1 Benefits
This analysis used both on-bill and time dependent valuation (TDV) of energy-based approaches to evaluate cost- effectiveness. Both on-bill and TDV require estimating and quantifying the energy savings and costs associated with energy measures. The primary difference between on-bill and TDV is how energy is valued:
• On-Bill: Customer-based lifecycle cost approach that values energy based upon estimated site energy usage and customer on-bill savings using electricity and natural gas utility rate schedules over a 30-year duration for residential and 15 years for nonresidential designs, accounting for a three percent discount rate and energy cost inflation per Appendix 7.2.3.
• TDV: TDV was developed by the Energy Commission to reflect the time dependent value of energy including long-term projected costs of energy such as the cost of providing energy during peak periods of demand and other societal costs including projected costs for carbon emissions and grid transmission impacts. This metric values energy use differently depending on the fuel source (gas, electricity, and propane), time of day, and season. Electricity used (or saved) during peak periods has a much higher value than electricity used (or saved) during off-peak periods.

The Reach Codes Team performed energy simulations using the most recent software available for 2022 Title 24 code compliance analysis, CBECC-Res v1.0.

2.1.2 Costs
The Reach Codes Team assessed the incremental costs and savings of the energy packages over the lifecycle of 30 years for the single family and ADU buildings. Incremental costs represent the equipment, installation, replacements, and maintenance costs of the proposed measure relative to the 2019 Title 24 Standards minimum requirements or standard industry practices. The Reach Codes Team obtained measure costs from manufacturer distributors, contractors, literature review, and online sources such as Home Depot and RS Means. Taxes and contractor markups were added as appropriate. Maintenance and replacement costs are included.

2.1.3 Metrics
Cost-effectiveness is presented using net present value (NPV) and benefit-to-cost (B/C) ratio metrics. • NPV: The Reach Codes Team uses net savings (NPV benefits minus NPV costs) as the cost-effectiveness metric. If the net savings of a measure or package is positive, it is considered cost effective. Negative net savings represent net costs to the consumer. A measure that has negative energy cost benefits (energy cost increase) can still be cost effective if the costs to implement the measure are even more negative (i.e., construction and maintenance cost savings).
• B/C Ratio: Ratio of the present value of all benefits to the present value of all costs over 30 years (NPV benefits divided by NPV costs). The criteria for cost-effectiveness is a B/C greater than 1.0. A value of one Cost-Effectiveness Analysis: City of Riverside 6

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indicates the savings over the life of the measure are equivalent to the incremental cost of that measure. A value greater than one represents a positive return on investment.

Improving the energy performance of a building often requires an initial investment. In most cases the benefit is represented by annual on-bill utility or TDV savings, and the cost by incremental first cost and replacement costs.

However, some packages result in initial construction cost savings (negative incremental cost), 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”.

Because of these situations, NPV savings are also reported, which, in these cases, are positive values.

2.1.4 Utility Rates
In coordination with the City of Riverside, the Reach Codes Team determined appropriate tariffs for each package, summarized in Table 1, based on the annual load profile of the prototype and the corresponding package, and the most prevalent rate for each building type.

For a more detailed breakdown of the rates selected refer to Appendix 7.2 Utility Rate Schedules.

Table 1. Riverside Public Utilities Tariffs
Electric / Gas Utility Electricity Natural Gas
Residential (Single Family and Detached ADU)
Riverside Public Utilities / SoCalGas D GR
Riverside Public Utilities / SoCalGas D-TOU GR

Utility rates are assumed to escalate over time, using assumptions detailed in Appendix 7.2. Please see the main 2022 Single Family New Construction Reach Code Cost Effectiveness Studies for further details on methodology.

2.2 Greenhouse Gas Emissions
The analysis uses the greenhouse gas (GHG) emissions estimates built-in to CBECC-Res. There are 8760 hourly multipliers accounting for time dependent energy use and carbon emissions based on source emissions, including renewable portfolio standard projections. Natural gas fugitive emissions, which are shown to be substantial, are not included. There are two strings of multipliers—one for Northern California climate zones, and another for Southern California climate zones.

1. 1 CBECC-Res multipliers are the same for CZs 1-5 and 11-13 (presumed to be Northern California), while there is another set of multipliers for CZs 6-10 and 14-16 (assumed to be Southern California).

Cost-Effectiveness Analysis: City of Riverside 7

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3 Prototype Designs and Measure Packages

3.1 Residential Occupancies
Table 2 describes the basic characteristics of each residential prototype design. The prototypes have equal geometry on all walls, windows and roof to be orientation neutral.

Table 2: Residential Prototype Characteristics
Characteristic Single Family
One-Story
Single Family
Two-Story ADU
Conditioned Floor Area 2,100 ft2 2,700 ft2 625 ft2
Num. of Stories 1 2 1
Num. of Bedrooms 3 3 1
Window-to-Floor Area Ratio 20% 20% 20%

The Reach Codes Team evaluated three packages for mixed fuel homes and five packages for all-electric homes for each prototype and climate zone, as described below.

1. All-Electric Code Minimum: This package meets all the prescriptive requirements of the 2022 Title 24 Code.

2. Efficiency Only: This package uses only efficiency measures that don’t trigger federal preemption issues including envelope and water heating or duct distribution efficiency measures.

3. Efficiency + NEEA (Preempted): This package was evaluated for the all-electric homes only and shows an alternative design that applies water heating equipment that is more efficient than federal standards meeting the NEEA Tier 3 rating. The Reach Codes Team considers this more reflective of how builders meet above code requirements in practice.

4. Efficiency + PV: Using the Efficiency Package as a starting point, PV capacity was added to offset most of the estimated electricity use.

5. Efficiency + PV + Battery: Using the Efficiency & PV Package as a starting point, a battery system was added.

For mixed-fuel homes the package of efficiency measures differed from the Efficiency Package in some climate zones to arrive at a cost effective solution.

Cost-Effectiveness Analysis: City of Riverside 8

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4 Results
Results are presented as per the prototype-specific Measure Packages described in Section 4. Overarching factors impacting the results include:
• Designation of a ‘benefit’ or a ‘cost’ varies with the scenarios because both energy savings, and incremental construction costs may be negative depending on the package. Typically, utility bill savings are categorized as a ‘benefit’ while incremental construction costs are treated as ‘costs.’ In cases where both construction costs are negative and utility bill savings are negative, the construction cost savings are treated as the ‘benefit’ while the utility bill negative savings are the ‘cost.’ • All-electric packages will have lower GHG emissions than equivalent mixed-fuel packages in all cases, due to the clean power sources currently available from California’s power providers. • The Reach Codes Team coordinated with the City of Riverside to select the most prevalent tariffs for each prototype given the annual energy demand profile. The Reach Codes Team did not compare a variety of tariffs to determine their impact on cost-effectiveness although utility rate changes or updates can effect on- bill cost-effectiveness results.

4.1 Residential Occupancies
Table 3 and Table 4 show results for the single family and ADU prototypes, respectively, for the D rate. Table 5 and Table 6 show results for the single family and ADU prototypes, respectively, for the D-TOU rate. Most of the packages are cost-effective based on TDV, except for two of the ADU mixed fuel packages. All of the single family all-electric packages are On-Bill cost-effective with the exception of the Efficiency + PV + Battery case. None of the ADU packages are On-Bill cost-effective.

Cost-Effectiveness Analysis: City of Riverside 9

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Table 3: D Rate Single Family Cost-Effectiveness Summary

Table 4: D Rate ADU Cost-Effectiveness Summary

Case
Efficiency
EDR2
Margin
Annual
Elec
Savings
(kWh)
Annual
Gas
Savings
(therms)
Average
Annual GHG
Reductions
(metric tons)
Utility Cost Savings Incremental Cost On-Bill TDV
First
Year
Lifecycle
(2022$) First Year Lifecycle
(2022$)
B/C
Ratio NPV B/C
Ratio NPV
All-Electric
Code Minimum 1.1 -1,777 107 0.3 ($53) $236 ($5,288) ($5,234) >1 $5,470 3.5 $3,285 Efficiency Only 4.6 -1,540 107 0.3 ($19) $1,013 ($3,944) ($3,674) >1 $4,687 >1 $3,475 Efficiency + NEEA 6.3 -1,392 107 0.4 $2 $1,520 ($3,944) ($3,674) >1 $5,194 >1 $4,260 Efficiency + PV 4.6 939 107 0.4 $283 $8,077 $24 $1,634 4.9 $6,444 5.5 $6,432 Efficiency + PV + Battery 10.1 805 107 0.9 $268 $7,724 $5,516 $13,182 0.6 ($5,458) 1.7 $7,804 Mixed Fuel
Efficiency Only 3.7 197 4 0.1 $29 $732 $1,344 $1,561 0.5 ($828) 1.2 $263 Efficiency + PV 3.7 939 4 0.1 $113 $2,691 $2,531 $3,149 0.9 ($458) 1.4 $1,140 Efficiency + PV + Battery 8.3 854 2 0.5 $99 $2,340 $7,139 $13,724 0.2 ($11,384) 1.2 $2,863 Case
Efficiency
EDR2
Margin
Annual
Elec
Savings
(kWh)
Annual
Gas
Savings
(therms)
Average
Annual GHG
Reductions
(metric tons)
Utility Cost Savings Incremental Cost On-Bill TDV
First
Year
Lifecycle
(2022$) First Year Lifecycle
(2022$)
B/C
Ratio NPV B/C
Ratio NPV
All-Electric
Code Minimum 0.4 -962 43 0.1 ($154) ($2,945) ($3,216) ($2,908) 1.0 ($37) 1.7 $1,055 Efficiency Only 3.8 -861 43 0.1 ($142) ($2,680) ($2,956) ($1,402) 0.5 ($1,278) 1.4 $280 Efficiency + NEEA 6.4 -750 43 0.2 ($130) ($2,386) ($2,956) ($1,402) 0.6 ($984) 4.9 $828 Efficiency + PV 3.8 722 43 0.2 $37 $1,502 ($421) $1,988 0.8 ($487) 2.1 $2,156 Efficiency + PV + Battery 9.1 703 43 0.6 $34 $1,451 $5,147 $13,638 0.1 ($12,186) 1.2 $2,118 Mixed Fuel
Efficiency Only 3.8 12 7 0.0 $13 $398 $304 $1,555 0.3 ($1,156) 0.5 ($750) Efficiency + PV 3.8 722 7 0.1 $93 $2,274 $1,441 $3,075 0.7 ($801) 1.0 $71 Efficiency + PV + Battery 9.0 729 7 0.4 $94 $2,286 $7,005 $14,720 0.2 ($12,434) 0.96 ($473) Cost-Effectiveness Analysis: City of Riverside 10

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Table 5: D-TOU Rate Single Family Cost-Effectiveness Summary

Table 6: D-TOU Rate ADU Cost-Effectiveness Summary

Case
Efficiency
EDR2
Margin
Annual
Elec
Savings
(kWh)
Annual
Gas
Savings
(therms)
Average
Annual GHG
Reductions
(metric tons)
Utility Cost Savings Incremental Cost On-Bill TDV
First
Year
Lifecycle
(2022$) First Year Lifecycle
(2022$)
B/C
Ratio NPV B/C
Ratio NPV
All-Electric
Code Minimum 1.1 -1,777 107 0.3 ($81) ($422) ($5,288) ($5,234) 12.4 $4,812 3.5 $3,285 Efficiency Only 4.6 -1,540 107 0.3 ($44) $443 ($3,944) ($3,674) >1 $4,117 >1 $3,475 Efficiency + NEEA 6.3 -1,392 107 0.4 ($21) $981 ($3,944) ($3,674) >1 $4,654 >1 $4,260 Efficiency + PV 4.6 939 107 0.4 $287 $8,164 $24 $1,634 5.0 $6,531 5.5 $6,432 Efficiency + PV + Battery 10.1 805 107 0.9 $298 $8,418 $5,516 $13,182 0.6 ($4,764) 1.7 $7,804 Mixed Fuel
Efficiency Only 3.7 197 4 0.1 $35 $875 $1,344 $1,561 0.6 ($686) 1.2 $263 Efficiency + PV 3.7 939 4 0.1 $127 $3,032 $2,531 $3,149 1.0 ($117) 1.4 $1,140 Efficiency + PV + Battery 8.3 854 2 0.5 $123 $2,905 $7,139 $13,724 0.2 ($10,818) 1.2 $2,863 Case
Efficiency
EDR2
Margin
Annual
Elec
Savings
(kWh)
Annual
Gas
Savings
(therms)
Average
Annual GHG
Reductions
(metric tons)
Utility Cost Savings Incremental Cost On-Bill TDV
First
Year
Lifecycle
(2022$) First Year Lifecycle
(2022$)
B/C
Ratio NPV B/C
Ratio NPV
All-Electric
Code Minimum 0.4 -962 43 0.1 ($165) ($3,220) ($3,216) ($2,908) 0.9 ($313) 1.7 $1,055 Efficiency Only 3.8 -861 43 0.1 ($151) ($2,882) ($2,956) ($1,402) 0.5 ($1,480) 1.4 $280 Efficiency + NEEA 6.4 -750 43 0.2 ($138) ($2,574) ($2,956) ($1,402) 0.5 ($1,172) 4.9 $828 Efficiency + PV 3.8 722 43 0.2 $44 $1,671 ($421) $1,988 0.8 ($317) 2.1 $2,156 Efficiency + PV + Battery 9.1 703 43 0.6 $44 $1,671 $5,147 $13,638 0.1 ($11,966) 1.2 $2,118 Mixed Fuel
Efficiency Only 3.8 12 7 0.0 $18 $509 $304 $1,555 0.3 ($1,046) 0.5 ($750) Efficiency + PV 3.8 722 7 0.1 $100 $2,444 $1,441 $3,075 0.8 ($632) 1.0 $71 Efficiency + PV + Battery 9.0 729 7 0.4 $101 $2,456 $7,005 $14,720 0.2 ($12,265) 0.96 ($473) Cost-Effectiveness Analysis: City of Riverside 11

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5 Summary
The Reach Codes Team developed packages of energy efficiency measures as well as packages combining energy efficiency with solar PV generation, simulated them in building modeling software, and gathered costs to determine the cost-effectiveness of multiple scenarios. The Reach Codes Team coordinated with multiple utilities, cities, and building community experts to develop a set of assumptions considered reasonable in the current market. Changing assumptions, such as the period of analysis, measure selection, cost assumptions, energy escalation rates, or utility tariffs are likely to change results.

Table 7 (all-electric) and Table 8 (mixed fuel) summarize results for each prototype and depict the efficiency EDR2 compliance margins achieved for each climate zone and package. Because local reach codes must both exceed the Energy Commission performance budget (i.e., have a positive compliance margin) and be cost-effective, the Reach Codes Team highlighted cells meeting these two requirements to help clarify the upper boundary for potential reach code policies. All results presented in this study have a positive compliance margin. • Cells highlighted in green depict a positive compliance margin and cost-effective results using both On-Bill and TDV approaches.
• C ells highlighted in yellow depict a positive compliance and cost-effective results using either the On-Bill or TDV approach.
• C ells not highlighted depict a package that was not cost effective using either the On-Bill or TDV approach.

The Reach Codes Team found all-electric code compliant new construction to be feasible and cost effective based on TDV and Riverside Public Utilities electricity rates for the single family prototype, under both the D and D-TOU rates.

For the ADU prototype the all-electric code compliant package was not found to be On-Bill cost-effective. Combining higher capacity PV systems and all-electric construction does reduce utility costs, increasing utility savings.

For a reach code that allows for mixed fuel buildings the mixed fuel efficiency, PV, and battery package was found to be cost effective based on TDV for the single family prototype only with an EDR2 margin of 8.3.

Table 7: Summary of All-Electric Efficiency EDR2 Margins and Cost-Effectiveness Single Family ADU
Code

EE EE+PV EE+PV/Batt Code Min EE EE+PV EE+PV/Batt

1.1 4.6 4.6 10.1 0.4 3.8 3.8 9.1
Table 8: Summary of Mixed Fuel Efficiency EDR2 Margins and Cost-Effectiveness Single Family ADU
EE EE+PV EE+PV/Batt EE EE+PV EE+PV/Batt

3.7 3.7 8.3 3.8 3.8 9.0

Cost-Effectiveness Analysis: City of Riverside 12

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6 References
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

Cost-Effectiveness Analysis: City of Riverside 13

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7 Appendices

7.1 Map of California Climate Zones
Climate zone geographical boundaries are depicted in Figure 1. The map in Figure 1 along with a zip-code search directory is available at: https://ww2.energy.ca.gov/maps/renewable/building_climate_zones.html Figure 1. Map of California climate zones.

Cost-Effectiveness Analysis: City of Riverside 14

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7.2 Utility Rate Schedules
The Reach Codes Team used the City of Riverside tariffs detailed below to determine the On-Bill savings for each package.

7.2.1 City of Riverside

7.2.1.1 Residential
Following are the Riverside Public Utilities electricity tariffs applied in this study. Both electric rates D and D-TOU are evaluated for all cases. A public benefits charge was included representing 2.85% of the total electricity bill. The sum of the customer, Reliability, and Networks Access charges are applied as a minimum bill.

Microsoft Word - Electric Schedule D - Effective 01-1-19 (riversideca.gov) Microsoft Word - Electric Schedule DTOU - Effective 01-1-19 Updated clean (riversideca.gov)

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Cost-Effectiveness Analysis: City of Riverside 16

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7.2.2 SCG
Refer to the statewide study 2022 Single Family New Construction Cost-effectiveness Study for details on the gas rates applied.

Cost-Effectiveness Analysis: City of Riverside 17

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7.2.3 Fuel Escalation Rates

7.2.3.1 Residential Occupancies
The average annual escalation rates reported in Table 9 were used in this study. The electricity and natural gas rates 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 GWP, therefore electricity escalation rates for SCE and statewide natural gas escalation rates were applied.

Table 9: Real Utility Rate Escalation Rate Assumptions

Year
Statewide Natural
Gas Average Rate
(%/year, real)
SCE Electric
Average Rate
(%/year, real)
2023 4.6% 1.6%
2024 4.6% 1.6%
2025 4.6% 1.6%
2026 4.6% 1.6%
2027 4.6% 1.6%
2028 4.6% 1.6%
2029 4.6% 1.6%
2030 4.6% 1.6%
2031 2.0% 0.6%
2032 2.4% 0.6%
2033 2.1% 0.6%
2034 1.9% 0.6%
2035 1.9% 0.6%
2036 1.8% 0.6%
2037 1.7% 0.6%
2038 1.6% 0.6%
2039 2.1% 0.6%
2040 1.6% 0.6%
2041 2.2% 0.6%
2042 2.2% 0.6%
2043 2.3% 0.6%
2044 2.4% 0.6%
2045 2.5% 0.6%
2046 1.5% 0.6%
2047 1.3% 0.6%
2048 1.6% 0.6%
2049 1.3% 0.6%
2050 1.5% 0.6%
2051 1.8% 0.6%
2052 1.8% 0.6%
Cost-Effectiveness Analysis: City of Riverside 18

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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.

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