San Luis Obispo City Council
November 18, 2025

Ordinance No. XXXX (2025 Series) Page 21
O-XXXX
supporting one floor. Slabs supported on grade need not be considered a floor for purposes of footing depths and widths.
g Plain concrete footings for Group R-3 occupancies shall be permitted to be 6 inches thick.
h A grade beam 12" in width shall be provided at garage openings. Depth shall be as specified in this table.

GG. Amend Section 1907 to read as follows:
1907.1 General. The thickness of concrete floor slabs supported directly on the ground shall be not less than 4 inches (101.6 mm). Concrete floor slabs shall be underlain with a minimum of 4 inches (101.6 mm) of clean granular material. A 6-mil (0.006 inch; 0.15 mm) polyethylene vapor retarder with joints lapped not less than 6 inches (152 mm) shall be placed between the base course or subgrade and the concrete floor slab, or other approved equivalent methods or materials shall be used to retard vapor transmission through the floor slab.

Exception: A vapor retarder is not required:

1. For detached structures accessory to occupancies in Group R-3, such as garages, utility buildings or other unheated facilities.

2. For unheated storage rooms having an area of less than 70 square feet (6.5 m2) and carports attached to occupancies in Group R-3.

3. For buildings or other occupancies where migration of moisture through the slab from below will not be detrimental to the intended occupancy of the building.

4. For driveways, walks, patios and other flatwork which will not be enclosed at a later date.

5. Where approved based on local site conditions.
1907.2 Minimum reinforcing. Minimum reinforcing for slabs on grade shall be No. 3 bars at 24 inches (609.6 mm) on center each way placed at midpoint of slab thickness. Slab reinforcement shall extend to within 2 inches (50.8 mm) of the exterior edge of slabs.
1907.3 Slab to foundation connection. Tie bar reinforcing between slabs on grade and foundation stem walls shall be No. 3 bars at 24 inches (609.6 mm) on center, placed in foundation walls and bent at least 24 inches (609.6 mm) into the slabs and tied to the slab reinforcing.

Exception: Floating slabs justified by an engineered design. 1907.4 Moisture content. Moisture content for expansive soils shall be 100 percent of optimum to a depth of 18 inches (609.6 mm) below slab bottoms and shall be maintained until slabs are poured. Soils under slabs shall be tested

Ordinance No. XXXX (2025 Series) Page 22
O-XXXX
for moisture content and slabs shall be poured within 24 hours of obtaining the required moisture content. The area under raised floors need not be premoistened.
1907.5 Penetrations. Openings in slabs on grade for bathtub piping and traps, planters or other similar uses shall be sealed with concrete not less than 2 inches (50.8 mm) in thickness.

Exception: Plastic tub boxes may be used in lieu of concrete if properly sealed around all edges and pipe penetrations.

HH. Add Sections 3109.3 through 3109.5 to read as follows:
3109.3 Access to pool. Pools shall be accessible by means of ladders or steps. There shall be not less than one such access for each 300 square feet (27.87 m2) of pool area equally distributed around the perimeter. 3109.4 Lighting. Pools shall be equipped with artificial lighting adequate to illuminate all underwater areas.
3109.5 Abandoned pools. A pool that is not used, is neglected, and is a hazard to health and safety, shall be filled to the satisfaction of the building official. Before filling, holes shall be made in the bottom of the pool to insure proper drainage. Abandoned pools determined to be unsafe by the building official shall be abated in accordance with the International Property Maintenance Code.

II. Amend Appendix Section G103.2 to read as follows:

G103.2 Establishment of flood hazard areas. Flood hazard areas are established in the current edition of the City of San Luis Obispo’s Flood Insurance Rate Maps. All construction work within designated flood hazard areas shall comply with the Floodplain Management Regulations contained in San Luis Obispo Municipal Code Section 17.78.

For the enforcement provisions of this appendix for flood resistant construction under the purview of the City Engineer, Building Official may mean City Engineer.

JJ. Amend the title of Appendix Section G109 to read as:
“BUILDINGS AND MANUFACTURED HOMES”
KK. Amend Appendix Section G109.1 to read as follows:

G109.1 Elevation. All new and replacement buildings and/or manufactured homes to be built, placed or substantially improved within a flood hazard area shall comply with the Floodplain Management Regulations contained in San Luis Obispo Municipal Code Section 17.78.

LL. Amend Appendix Section G114.3 to read as follows:

Ordinance No. XXXX (2025 Series) Page 23
O-XXXX
G114.3 Elevation. Utility and miscellaneous Group U buildings and structures, including substantial improvement of such buildings or structures, shall comply with the Floodplain Management Regulations contained in San Luis Obispo Municipal Code Section 17.78.

MM. Amend Appendix Section G114.6 to read as follows:

G114.6 Protection of mechanical and electrical systems. New or replacement electrical equipment, heating, ventilating, air conditioning, and other service facilities shall be either protected or elevated to at least 1 foot above base flood elevation in conformance to San Luis Obispo Municipal Code Section 17.78. Sewer laterals shall be protected with backwater valves where the finish floor of the structure is located less than 1’ above the BFE at the next upstream sewer manhole.

NN. Amend Appendix Section J101.1 to read as follows:

J101.1 Scope. The provisions of this chapter apply to grading, excavation and earthwork construction, including fills, embankments, and work within waterways. Where conflicts occur between the technical requirements of this chapter and the geotechnical report, the geotechnical report shall govern. This appendix recognizes the importance of the waterways of the city and the need to regulate all changes to these waterways.

For the enforcement provisions of this appendix for grading in new subdivisions under the purview of the City Engineer, building official shall mean city engineer.

OO. Add Appendix Sections J101.3 through J101.7 to read as follows:

J101.3 Hazardous conditions. Whenever the building official determines that any existing excavation or embankment or fill on private property has become a hazard to life and limb, or endangers property, or adversely affects the safety, use or stability of a public way or drainage channel, the owner of the property upon which the excavation or fill is located, or other person or agent in control of said property, upon receipt of notice in writing from the building official, shall within the period specified therein repair or eliminate such excavation or embankment so as to eliminate the hazard and be in conformance with the requirements of this code.

J101.4 Dust control. All graded surfaces shall be wetted, protected or contained in such manner as to prevent dust or spill upon any adjoining property or street.

J101.5 Emergency grading. The building official may authorize emergency grading operations upon any site when necessary for the protection of the public health, safety and welfare. Other city departments may take emergency action necessary to protect public facilities.

J101.6 Special grading standards. The topography of a site proposed for development shall remain substantially in its natural state. Mass recontouring

Ordinance No. XXXX (2025 Series) Page 24
O-XXXX
shall not be allowed. In all cases the average cross slope of a site shall be determined prior to any grading operations or approval of any grading plan.

Where a site does not slope uniformly, the building official or city engineer shall determine average cross slope by proportional weighting of the cross slopes of uniformly sloping subareas. The percentage of the site, exclusive of building area, to remain in its natural state shall be in accordance with Table J101.6.

All graded planes shall be rounded on all edges to blend with natural slopes.

The rounded edges shall have a radius equal to one-half the height of the cut or fill slope.

Exception: Grading specifically approved and/or conditioned in conjunction with a tentative subdivision map, development proposal, or similar entitlement consistent with General Plan policies and other hillside standards is not subject to the specific grading limitations noted in this section.

J101.7 Approval for building construction. Prior to commencement of any building construction, pursuant to a building permit for the graded site, a benchmark shall be provided to verify that the building site is graded in conformance with the approved grading plan. No building construction shall be started until the building official, or city engineer has verified that the rough grading conforms to the approved plan, including any interim or permanent erosion control measures deemed necessary.

PP. Amend Appendix Section J102 by addition of the following definitions:

AVERAGE CROSS SLOPE shall mean the ratio, expressed as a percentage, of the vertical difference in elevation to the horizontal distance between two points on the perimeter of the area, with the line connecting the two points being essentially perpendicular to the contours between the two points. Different portions of any area may have different average cross slopes.

WATERWAY shall mean a well-defined natural or manmade channel, creek, river, lake or swale that conveys surface water, storm runoff, or other natural drainage either year-round or intermittently.

QQ. Amend Appendix Section J103 to read as follows:

J103.1 Permits required. Except as exempted in Section J103.2, no grading shall be performed without first having obtained a permit therefore from the building official. A grading permit does not include the construction of retaining walls or other structures. A grading permit shall be required for all work within any waterway, including, but not limited to, earthwork, construction of drainage devices or erosion control devices, removal of vegetation and modifications of banks and the bottom of the waterway which may in the natural course of events lead to changes in flow characteristics. A grading permit shall be required for all work that will create a stockpile of any earth material, subject to the surety bond required by Section J103.4 to guarantee restoration of the site to a natural or other condition acceptable to the building official.

Ordinance No. XXXX (2025 Series) Page 25
O-XXXX
J103.2 Exempted Work. A grading permit shall not be required for the following:

1. Grading in an isolated, self-contained area, provided there is no danger to the public, and that such grading will not adversely affect adjoining properties.

2. Excavation for construction of a structure permitted under this code.

3. Cemetery graves.

4. Refuse disposal sites controlled by other regulations.

5. Excavations for wells, or trenches for utilities.

6. Mining, quarrying, excavating, processing, or stockpiling of rock, sand, gravel, aggregate, or clay controlled by other regulations, provided such operations do not affect the lateral support of, or significantly increase stresses in, soil on adjoining properties.

7. Exploratory excavations performed under the direction of a registered design professional.

8. An excavation which does not exceed fifty cubic yards and (1) is less than 2 feet (610 mm) in depth or (2) does not create a cut slope greater than 5 feet (1524 mm) in height and steeper than 1 unit vertical to 2 units horizontal.

9. A fill less than 1 foot (305 mm) in depth and placed on natural terrain with a slope flatter than 1 unit vertical to 5 units horizontal, or less than 3 feet (914 mm) in depth, not intended to support structures, that does not exceed 50 cubic yards (38.3 m3) on any one lot and does not obstruct a drainage course.

10.Routine streambed silt removal and vegetation control approved by the City Engineer.

Exemption from the permit requirements of this appendix shall not be deemed to grant authorization for any work to be done in any manner in violation of the provisions of this code or any other laws or ordinances of this jurisdiction.

J103.3 Early grading. A grading permit shall not be issued prior to issuance of a building permit for the project unless:

1. A tentative minor subdivision or tract map, use permit, architectural review commission project approval or similar authorization has been granted; and

2. Related street and utility grades have been established; and

3. A surety bond in accordance with Section J103.4 is deposited to guarantee restoration of the site to a natural or other condition

Ordinance No. XXXX (2025 Series) Page 26
O-XXXX
acceptable to the building official should the project not proceed to completion.

J103.4 Bonds. The building official may require bonds in such form and amounts as may be deemed necessary to ensure that the work, if not completed in accordance with the approved plans and specifications, will be corrected to eliminate hazardous conditions or restore a graded site to the original condition. In lieu of a surety bond, the applicant may file a cash bond or instrument of credit with the building official in an amount equal to that which would be required in the surety bond.

The city engineer may require that bonds be posted to recover the full costs of any damage to public right-of-way which may occur because of the peculiar nature or large scope of the project, such as transportation of fill or heavy equipment on local streets not designed to accommodate the traffic.

RR.Amend Appendix Section J104.2 to read as follows:

J104.2 Site plan requirements. In addition to the provisions of Appendix Section 107, a grading plan shall show the existing grade and finished grade in contour intervals of sufficient clarity to indicate the nature and extent of the work and show in detail that it complies with the requirements of this code. The plans shall show the existing grade on adjoining properties in sufficient detail to identify how grade changes will conform to the requirements of this code. The plans shall show existing drainage conditions and drainage devices and all proposed changes thereto. The plans shall include the location and dimension of all trees on the site which are 3 inches (76.2 mm) in diameter or larger at the trunk, measured at 4.5 feet (1.37 m) above ground level, trees to be removed and trees to remain. A preservation plan shall be submitted for all trees to remain. The plans shall indicate where excess material, rocks, or rubble will be disposed of.

SS. Amend Appendix Section J110.1 to read as follows:

J110.1 General. All disturbed surfaces shall be prepared and maintained to control erosion.

Exception: Erosion control measures need not be provided on cut slopes not subject to erosion due to the erosion-resistant character of the materials.

Erosion control shall be installed as soon as practicable and prior to calling for final inspection. Erosion control plantings shall be established in accordance with City Engineering Standards and/or to the satisfaction of the Building Official.

TT. Add Appendix Table J101.6 as follows:

TABLE J101.6

GRADING TO REMAIN IN NATURAL STATE

Ordinance No. XXXX (2025 Series) Page 27
O-XXXX
Percent Average Cross
Slope
Percent of Site to Remain in
Natural State
0-5 0
6-10 25
11-15 40
16-20 60
21-25 80
26-30 90
Above 30 100
SECTION 15.04.025 AMENDMENTS; RESIDENTIAL STANDARDS
A. Amend Section R109.1.2 Exception to read as follows:

Exception: Back-filling of ground-source heat pump loop systems tested in accordance with ASTM Standards prior to inspection shall be permitted.

Ordinance No. XXXX (2025 Series) Page 28
O-XXXX
B. Amend Table R301.2(1) to read as follows:

GROUND
SNOW
LOADo

WIND DESIGN SEISMIC
DESIGN
CATEGORYf

SUBJECT TO DAMAGE FROM ICE BARRIER

UNDERLAYMENT
REQUIREDh
FLOOD
HAZARDSg
AIR

FREEZING
INDEXi
MEAN
ANNUAL
TEMPj
Speedd
(mph)
Topographic
effectsk
Special
wind
regionl
Windborne
debris
zonem
Weatheringa
Frost
line
depthb
Termitec
0 95 YES NO NO D Negligible 0
Very
high No
Refer to
Chapter

17.78 of
the SLO
Municipal
Code
0 59(oF)

MANUAL J DESIGN CRITERIA
Elevation
Altitude
correction
factor
Coincident
wet bulb
Indoor
winter
design drybulb
temperature
Indoor winter design
dry-bulb temperature
Outdoor winter design
dry-bulb temperature
Heating temperature
difference
250 0.993 63 70 70 35 35
Latitude Daily
range
Indoor
summer
design
relative
humidity
Indoor
summer
design
relative
humidity
Indoor summer design
dry-bulb temperature
Outdoor summer design
dry-bulb temperature
Cooling temperature
difference
35 MEDIUM 50% 50% 75 88 13

Ordinance No. XXXX (2025 Series) Page 29
O-XXXX
C. Add Section R309.3.3.5 to read as follows:

R309.3.3.5 Sprinkler Activation Alarm. An alarm audible from all sleeping rooms shall be provided.

D. Amend Section R306.1 to read as follows:

R306.1 General. Buildings and structures constructed in whole or in part in flood hazard areas (including A or V Zones) identified in the current edition of the City of San Luis Obispo’s Flood Insurance Rating Map shall be designed and constructed in accordance with the provisions contained in this section and the flood plain management regulations contained in San Luis Obispo Municipal Code Section

17.78, whichever is more stringent. Buildings and structures located in whole or in part in identified floodways shall be designed and constructed in accordance with ASCE 24.

E. Delete Sections R403 and R404 and add R403.1 to read as follows:

R403.1 Foundations. The design of foundations to support structures regulated under the Part 2.5 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026 shall be per Part 2 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, Section 1809 or 1810.

SECTION 15.04.030 AMENDMENTS; ELECTRICAL STANDARDS
A. Amend Section 230.70 (A)(1) to read as follows:
230.70 (A)(1) Readily Accessible Location. The service disconnecting means shall be installed at a readily accessible location either outside the building or other structure, or inside nearest the point of entrance of the service conductors. The disconnecting means shall be accessible to emergency personnel, either directly or by a remote actuating device, without requiring transit of the building interior. Dedicated electrical equipment rooms located at the building perimeter and providing direct access to the outside shall satisfy accessibility for emergency personnel.

SECTION 15.04.040 AMENDMENTS; MECHANICAL STANDARDS
A. Amend Section 104.3.2 to read as follows:
104.3.2 Plan Review Fees. Where a plan or other data is required to be submitted in accordance with Section 104.3.1, a plan review fee shall be paid at the time of submitting construction documents for review.

The plan review fees for mechanical system work shall be determined and adopted by this jurisdiction.

Ordinance No. XXXX (2025 Series) Page 30
O-XXXX
The plan review fees specific in this subsection are separate fees from the permit fees specified in the fee schedule adopted by this jurisdiction Where plans are incomplete or changed so as to require additional review, a fee shall be charged on an hourly basis at the rate established by this jurisdiction’s fee schedule.

B. Amend Section 104.4 to read as follows:
104.4 Permit Issuance. The application, construction documents, and other data filed by an applicant for a permit shall be reviewed by the Authority Having Jurisdiction. Such plans shall be permitted to be reviewed by other departments of this jurisdiction to verify compliance with applicable laws under their jurisdiction. Where the Authority Having Jurisdiction finds that the work described in an application for permit and the plans, specifications, and other data filled therewith are in accordance with the requirements of the code and other pertinent laws and ordinances and that all required fees have been paid, the Authority Having Jurisdiction shall issue a permit therefore to the applicant.

C. Delete Table 104.5 and amend section 104.5 to read as follows:
104.5 Fees. Fees shall be assessed in accordance with the provisions of this section and as set for in the applicable fee schedule adopted by this jurisdiction D. Amend section 105.2.6 to read as follows:
105.2.6 Reinspections. A reinspection fee shall be permitted to be assessed for each inspection or reinspection where such portion of work for which inspection is called is not complete or where required corrections have not been made.

This provision shall not be interpreted as requiring reinspection fees the first time a job is rejected for failure to be in accordance with the requirements of this code, but as controlling the practice for calling for inspections before the job is ready for inspection or reinspection.

Reinspection fees shall be permitted to be assessed where the approved plans are not readily available to the inspector, for failure to provide access on the date for which the inspection is requested, or for deviating from plans requiring the approval of the Authority Having Jurisdiction.

In instances where reinspection fees have been assessed, no additional inspection of the work will be performed until the required fees have been paid.

SECTION 15.04.050 AMENDMENTS; PLUMBING STANDARDS.

A. Amend Section 104.3.2 to read as follows:

Ordinance No. XXXX (2025 Series) Page 31
O-XXXX
104.3.2 Plan Review Fees. Where a plan or other data is required to be submitted in accordance with Section 104.3.1, a plan review fee shall be paid at the time of submitting construction documents for review.

The plan review fees for mechanical system work shall be determined and adopted by this jurisdiction.

The plan review fees specific in this subsection are separate fees from the permit fees specified in the fee schedule adopted by this jurisdiction Where plans are incomplete or changed so as to require additional review, a fee shall be charged on an hourly basis at the rate established by this jurisdiction’s fee schedule
B. Amend Section 104.4 to read as follows:
104.4 Permit Issuance. The application, construction documents, and other data filed by an applicant for a permit shall be reviewed by the Authority Having Jurisdiction. Such plans shall be permitted to be reviewed by other departments of this jurisdiction to verify compliance with applicable laws under their jurisdiction. Where the Authority Having Jurisdiction finds that the work described in an application for permit and the plans, specifications, and other data filled therewith are in accordance with the requirements of the code and other pertinent laws and ordinances and that all required fees have been paid, the Authority Having Jurisdiction shall issue a permit therefore to the applicant.

C. Delete Table 104.5 and amend Section 104.5 to read as follows:
104.5 Fees. Fees shall be assessed in accordance with the provisions of this section and as set for in the applicable fee schedule adopted by this jurisdiction D. Amend Section 105.2.6 to read as follows:
105.2.6 Reinspections. A reinspection fee shall be permitted to be assessed for each inspection or reinspection where such portion of work for which inspection is called is not complete or where required corrections have not been made.

This provision shall not be interpreted as requiring reinspection fees the first time a job is rejected for failure to be in accordance with the requirements of this code, but as controlling the practice for calling for inspections before the job is ready for inspection or reinspection.

Reinspection fees shall be permitted to be assessed where the approved plans are not readily available to the inspector, for failure to provide access on the date for which the inspection is requested, or for deviating from plans requiring the approval of the Authority Having Jurisdiction.

Ordinance No. XXXX (2025 Series) Page 32
O-XXXX
In instances where reinspection fees have been assessed, no additional inspection of the work will be performed until the required fees have been paid.

E. Amend Section 314.4 to read as follows:
314.4 Excavations. All excavations shall be completely backfilled as soon after inspection as practicable. A layer of sand or fine gravel shall be placed in all sewer trenches to provide a leveling and laying bed for pipe. Adequate precaution shall be taken to ensure proper compactness of backfill around piping without damage to such piping. Trenches shall be backfilled in thin layers to twelve (12) inches (.3 m) above the top of the piping with clean earth which shall not contain stones, boulders, cinder fill, frozen earth, construction debris or other materials which would damage or break the piping or cause corrosive action. Mechanical devices such as bulldozers, graders, etc., may then be used to complete backfill to grade. Fill shall be properly compacted.

Suitable precautions shall be taken to ensure permanent stability for pipe laid in filled or made ground.

F. Amend Section 715.2 to read as follows:
715.2 Joining Methods and Materials. Joining methods and materials for building sewers shall be as prescribed in this code and shall only have joints that are glued, solvent cemented, heat fused or welded.

Exception: “Strongback” type couplings may be used when connecting new or replaced pipe to existing materials.

G. Add Section 1101.3.1 to read as follows:
1101.3.1 Rainwater Harvesting. Storm water drainage may be directed to an approved rainwater harvesting system and used as an alternate source of water for non-potable uses as approved by the Building Official and the San Luis Obispo County Environmental Health Department. The installation and use of such a system or systems must be designed to not interact with the potable water system, the building sanitary sewer or drainage systems that flow to any creek. Rainwater harvesting systems must be maintained in such manner as to not cause damage to neighboring properties.

H. Amend Section 1601.3, Exceptions: to read as follows:

Exceptions:
(1) A permit is not required for exterior rainwater catchment systems used for outdoor non-spray irrigation with a maximum storage capacity of 600 gallons where the tank is supported directly upon grade, the ratio of height to diameter or width does not exceed 2 to 1 (except as exempted by the

Ordinance No. XXXX (2025 Series) Page 33
O-XXXX
Chief Building Official upon confirmation of structural stability), and it does not require electrical power or a makeup water supply connection, the height does not exceed seven feet, and it is not visible from the public rightof-way that abuts the front yard. (2) A permit is not required for exterior rainwater catchment systems used for spray irrigation with a maximum storage capacity of 360 gallons SECTION 15.04.060 AMENDMENTS; ENERGY STANDARDS (RESERVED).

SECTION 15.04.065 AMENDMENTS; ENERGY STANDARDS – ADDITIONS AND

ALTERATIONS
SECTION 15.04.070 AMENDMENTS; WILDLAND-URBAN INTERFACE STANDARDS (RESERVED)
SECTION 15.04.080 AMENDMENTS; HISTORICAL BUILDING STANDARDS (RESERVED)
SECTION 15.04.090 AMENDMENTS; FIRE PREVENTION STANDARDS A. Amend Chapter 1, Division II, Section 101.1 to read as follows:
101.1 Title. These regulations shall be known as the Fire Code of the City of San Luis Obispo, may be cited as such and will be referred to herein as “this code”.

B. Amend Chapter 1, Division II, Section 103.1 to read as follows:
103.1 Creation of agency. The City of San Luis Obispo Fire Department is hereby created and the official in charge thereof shall be known as the fire code official. The function of the agency shall include the implementation, administration and enforcement of the provisions of this code.

C. Amend Chapter 1, Division II, Section 112 to read as follows:
112 Board of appeals established. In order to hear and decide appeals of orders, decisions or determinations made by the fire code official relative to the application and interpretation of this code, there shall be and is hereby created a board of appeals. The board of appeals shall be established as set forth in Chapter 1, Division II Section 113 of Part 2 of The City of San Luis Obispo Building Construction and Fire Prevention Code, as amended in Section

15.04.020 of the San Luis Obispo Municipal Code. The fire code official shall

Ordinance No. XXXX (2025 Series) Page 34
O-XXXX
be an ex officio member of said board but shall have no vote on any matter before the board. The board shall adopt rules of procedure for conducting its business and shall render all decisions and findings in writing to the appellant with a duplicate copy to the fire code official.

D. Amend Chapter 1, Division II, Section 113.4 to read as follows:
113.4 Violation penalties. Persons who shall violate a provision of this code or shall fail to comply with any of the requirements thereof or who shall erect, install, alter, repair or do work in violation of the approved construction documents or directive of the fire code official, or of a permit or certificate used under provisions of this code, shall be guilty of a misdemeanor, punishable by a fine of not more than 1,000 dollars or by imprisonment not exceeding one year, or both such fine and imprisonment. Each day that a violation continues after due notice has been served shall be deemed a separate offense.

E. Amend Chapter 1, Division II, Section 114.4 to read as follows:
114.4 Failure to comply. Any person who shall continue any work after having been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be liable to a fine of not less than that established by Municipal Code Section 1.12.040.

F. Amend the definition of Sky Lantern in Section 202 to read as follows:

SKY LANTERN. An Airborne lantern typically made of paper with a wood frame containing a candle, fuel cell composed of waxy flammable material or other open flame which serves as a heat source to heat the air inside the lantern to cause it to lift into the air. Sky candles, fire balloons and airborne paper lanterns mean the same as sky lanterns.

G. Add Section 302.2 to read as follows:

HAZARDOUS FIRE AREA. As used in this Chapter: “Hazardous fire area” means any area which is designated as a hazardous fire area by the fire chief pursuant to Section 305.6.

H. Add Section 305.6 to read as follows:
305.6 Designation of territory as hazardous fire area by the Fire Chief.

Whenever the Fire Chief determines that a fire hazard exists in any area due to the presence of flammable material or cover, they may by regulation designate such area to be a hazardous fire area. The regulation shall declare the period of time during which the area shall be so designated.
305.6.1 Posting of notices.

Ordinance No. XXXX (2025 Series) Page 35
O-XXXX
Notice of the designation of each hazardous fire area shall be given by the posting of notices at intervals of not greater than 500 feet along the exterior boundaries of the area or along roads and official trails passing through the area.
305.6.2 Limitation on smoking or building campfires.

A person shall not smoke or build a campfire or other open fire within a hazardous fire area.
305.6.3 Order closing area to entry; Exceptions; Enforcement.

Whenever it is necessary in the interest of public peace or safety, the Fire Chief, with the consent of the owner of any lands designated as a hazardous fire area, may declare such lands closed to entry by any person. Any public highway traversing such a hazardous fire area, shall, however, be excluded from the order of closure, and the closure to entry does not prohibit or curtail the entry or use of the lands by the owner of the lands or his agent, nor the entry by any federal, state, county of city officer upon the closed area in the performance of their official duties. City law enforcement officers shall enforce the order of closure. The Fire Chief shall promulgate written findings supporting the declaration to close an area and setting forth the projected duration of the closure. The findings shall articulate with specificity the basis for the action, considering factors including, but not limited to: weather conditions (wind, temperatures, relative humidity); fuel loading; topography; and community threat. The continuation of any order issued pursuant to this section lasting longer than 5-days (120 hours) shall be reviewed with and approved in writing by the City Manager until the order is rescinded.

I. Amend Section 307.1.1 and 307.2 to read as follows:
307.1.1 Prohibited open burning. No waste matter, combustible material or refuse shall be burned in the open air within the city. Agricultural, ceremonial or similar types of fires may be approved when authorized by the fire code official.

Open burning, cooking or warming fires are prohibited on brush-covered public lands within the city.
307.2 Permit required. A permit shall be obtained from the fire code official in accordance with Section 105.6 prior to kindling a fire for recognized silvicultural or range or wildlife management practices, prevention or control of disease or pests. Application for such approval shall only be presented by and permits issued to the owner of the land upon which the fire is to be kindled.

J. Amend Sections 307.4.1 and 307.4.2 to read as follows:
307.4.1 Bonfires. Bonfires shall be prohibited.
307.4.2 Recreational fires. Recreational fires shall be prohibited.

Ordinance No. XXXX (2025 Series) Page 36
O-XXXX
Exception: Recreational fires may be permitted in approved, noncombustible commercially built containers, measuring no more than 3 feet in diameter and 2 feet tall, raised at least 6 inches off the ground with noncombustible legs and having a non-combustible spark arrester screen with holes no larger than ¼ inch. The ground beneath this container shall be clear of combustible material for 10 feet in diameter, and 10 feet away from combustible construction. The material being burned shall be wood only and shall not include pressure treated lumber. A pre-connected garden hose shall be accessible.

K. Amend Section 308.1.7 to read as follows:
308.1.7 Sky lanterns. The ignition and launching of sky lanterns are prohibited.

Exception: Sky Lanterns may be used when all the following exist:
1) Approval is granted by the fire code official.
2) The sky lantern(s) is necessary for a religious or cultural ceremony 3) Adequate safeguards have been taken at the discretion of the fire code official.
4) The Sky lantern(s) is tethered in a safe manner to prevent them from leaving the area and must be constantly attended until extinguished.

L. Amend Section 405.8 to read as follows:
405.8Initiation. Where a fire alarm system is provided, emergency evacuation drills shall be initiated by activating the fire alarm system. Prior to initiating an alarm, the person initiating the alarm shall contact the fire alarm monitoring company and advise the company’s dispatcher of the fire drill. In cases where the fire alarm system is not monitored by a central station, notification shall be provided to the fire department dispatch center.

M. Amend Section 503.1.1 and 503.1.2 to read as follows:
503.1.1 Buildings and facilities. Approved fire apparatus access roads shall be provided for every facility, building or portion of a building hereafter constructed or moved into or within the jurisdiction. The fire apparatus access road shall comply with the requirements of this section and shall extend to within 150 feet (45 720 mm) of all portions of the facility and all portions of the exterior walls of the first story of the building as measured by an approved route around the exterior of the building or facility.

Exceptions: The fire code official is authorized to increase the dimension of 150 feet (45720 mm) to 300 feet (91440 mm) where:

Ordinance No. XXXX (2025 Series) Page 37
O-XXXX

1. The building is equipped throughout with an approved automatic sprinkler system installed in accordance with Section 903.3.1.1, 903.3.1.2 or 903.3.1.3.

2. Fire apparatus access roads cannot be installed because of topography, waterways, nonnegotiable grades or other similar conditions, and an approved alternative means of fire protection is provided.

3. There is not more than two Group R-3 or Group U Occupancies, provided, in the opinion of the fire code official, fire-fighting or rescue operations would not be impaired.
503.1.2 Additional access. The fire code official is authorized to require more than one fire apparatus access/egress road based on the potential for impairment of a single road by vehicle congestion, condition of terrain, climatic conditions or other factors that could limit access/egress.

N. Amend Section 503.2.2 to read as follows:
503.2.2 Authority. The fire code official shall have the authority to require or permit modifications to the required access widths where they are inadequate for fire or rescue operations or where necessary to meet the public safety objectives of the jurisdiction. Modifications shall include, but are not limited to, a temporary prohibition of vehicle parking along access roads when conditions are present or forecasted that would increase the risk to the community O. Amend Section 503.2.5 to read as follows:
503.2.5 Dead Ends. Dead-end fire apparatus access roads in excess of 150 feet (45 720 mm) in length shall be provided with an approved area for turning around fire apparatus.

Exception: Where buildings along the dead-end road are protected by an approved fire sprinkler system throughout, the distance may be increased to 300 feet (91 440 mm).

P. Amend Section 503.4.1 as follows:
503.4.1. Traffic calming devices. Traffic calming devices may be installed provided they obtain acceptance of the design and approval of the construction by the fire code official.

Q. Amend Section 505.1 to read as follows:
505.1 Address numbers. New and existing buildings shall have approved address numbers, building numbers or approved building identification placed in a position that is plainly legible and visible from the street or road fronting the property. These numbers shall contrast with their background. Address numbers

Ordinance No. XXXX (2025 Series) Page 38
O-XXXX
shall be Arabic numerals or alphabetical letters. Numbers shall not be spelled out.

Numbers shall be a minimum of 5 inches (102 mm) high with a minimum stroke width of 0.5 inch (12.7 mm) or as otherwise determined necessary by the fire code official. Where required by the fire code official, address identification shall be provided in additional approved locations to facilitate emergency response. Where access is by means of a private road and the building cannot be viewed from the public way, a monument, pole or other sign or means shall be used to identify the structure. Address identification shall be maintained.

R. Amend Section 507.2 to read as follows:
507.2 Type of water supply. A water supply shall consist of reservoirs, pressure tanks, elevated tanks, water mains or other fixed systems connected to the municipal water system and capable of providing the required fire-flow.

S. Amend Section 507.5.1 and delete Exceptions 1 to read as follows:
507.5.1 Where required. Where a portion of the facility or building hereafter constructed or moved into or within the jurisdiction is more than 300 feet (91440 mm) from a hydrant on a fire apparatus access road, as measured by an approved route around the exterior of the facility or building, on-site fire hydrants and mains shall be provided where required by the fire code official.

T. Add Section 507.5.4.1 to read as follows:
507.5.4.1 Authority to remove obstruction. The fire code official and his authorized representatives shall have the power and authority to remove or cause to be removed, without notice, any vehicle, or object parked or placed in violation of the California Fire Code. The owner of any item so removed shall be responsible for all towing, storage and other charges incurred.

U. Amend Section 605.1.3 to read as follows:
605.1.3 Fuel Oil. The grade of fuel oil used in a burner shall be that for which the burner is approved and as stipulated by the burner manufacturer. Oil containing gasoline shall not be used.

V. Amend Section 605.8 to read as follows:
605.8 Gas meters. Above-ground gas meters, regulators and piping subject to damage shall be protected by a barrier complying with Section 312 or otherwise protected in an approved manner. Gas meters shall be permanently marked and identified as to the building or system served.

W. Amend Section 901.4.2 and Section 901.4.5 to read as follows:

Ordinance No. XXXX (2025 Series) Page 39
O-XXXX
901.4.2 Nonrequired fire protection systems. When approved by the fire code official, fire protection and life safety systems or portion thereof not required by this code, or the California Building Code shall be allowed to be furnished for partial or complete protection provided that such installed systems meet the applicable requirements of this code and the California Building Code. 901.4.5 Additional fire protection systems. In occupancies of a hazardous nature, where special hazards exist in addition to the normal hazards of the occupancy, or where the fire code official determines that access for fire apparatus is unduly difficult, or the location is beyond the four-minute response time of the fire department, the fire code official shall have the authority to require additional safeguards. Such safeguards include, but shall not be limited to, the following:
automatic fire detection systems, fire alarm systems, automatic fire extinguishing systems, standpipe systems, or portable or fixed extinguishers. Fire protection and life safety systems required under this section shall be installed in accordance with this code and applicable referenced standards.

X. Amend Section 901.6 to read as follows:

Section 901.6 Inspection, testing and maintenance. Fire protection and life safety systems shall be maintained in an operative condition at all times and shall be replaced or repaired where defective. Non-required fire protection systems and equipment shall be inspected, tested and maintained or removed in accordance with Section 901.8. No person shall cause a response of emergency personnel due to failure of notifying police/fire dispatch of any drill, testing, maintenance, installation of, repair or alteration to any fire protection system.

Y. Amend Section 903.2 to read as follows:

Where Required. Approved automatic sprinkler systems in new buildings and structures shall be provided in locations as described in Section 903 of the San Luis Obispo Municipal Code Chapter 15.04.020.

Z. Amend Section 903.2.10 to read as follows:

Section 903.2.10.3 Sprinkler Protection Requirements for Parking Garages Associated with Electric Vehicle Charging Stations. Specific San Luis Obispo Fire Department (SLOFD) requirements:

1. For New Buildings: Where a fire sprinkler system is required by code, the fire sprinkler system shall be designed per NFPA 13-2022 Extra Hazard Group II (EH2) with 0.40 GPM/SF over the parking space(s) associated with EV charging station(s). For area(s) less than 2,500 SF, the EH2 design area(s) are required to extend minimum 3-feet beyond the perimeter of the parking space(s). In this case,

Ordinance No. XXXX (2025 Series) Page 40
O-XXXX
the design area(s) are not required to extend 15-feet beyond the permitted of the parking space(s) as it is currently required by 2022 NFPA 13 Section 19.1.2(1).

2. For Existing Buildings with an existing sprinkler system which is required to protect NEW parking space(s) associated with EV charging station(s), the existing sprinkler system shall be required to be augmented to EH2 with 0.40 GPM/SF sprinkler design density over the parking space(s) associated with EV charging station(s) on a separate sprinkler permit. For area(s) less than 2,500 SF, the EH2 sprinkler design area(s) are required to extend minimum 3-feet beyond the perimeter of the parking space(s). In this case, the design area(s) are not required to extend 15-feet beyond the permitted of the parking space(s) as it is currently required by 2022 NFPA 13 Section 19.1.2(1).

3. Where an existing, previously approved, fire sprinkler system cannot be augmented to meet the sprinkler design requirements noted in item (2) above (without upgrading the fire service and water supply), the sprinkler designer shall demonstrate to SLOFD, the highest capability of the existing sprinkler system in terms of sprinkler water density and sprinkler spacing that is available for protection of the parking space(s) associated with EV charging station(s). This existing system would be acceptable in addition to providing one-hour fire-rated walls separation. The maximum continuous (single) fire-area to be separated by one-hour fire-rated walls, shall not exceed 1500 SF or seven (7) EV charging stations, whichever area is lesser.

4. The hydraulic calculation design criteria of an existing sprinkler system shall include all sprinklers within a minimum 2,500 square feet area of sprinkler operation, or the maximum area containing parking space(s) associated with EV charging station(s) extending 3 feet beyond the perimeter of the parking space(s), whichever is less, but not less than 1,500 SF that is required for Ordinary Hazard design density. (OH2 Per 2022 NFPA 13 Section and Table 19.2.3.1.1 with

0.2/1500 density, or OH1 per the previous 2016 NFPA 13 Section 5.3.1 and A.5.3.1(1) and 11.2.3.1.1 with 0.15/1500 density). The EH2 design area can be reduced from 2,500SF to NOT LESS THAN 2,000 SF if high-temp sprinklers or K11.2 sprinklers are used at the ceiling per 2022 NFPA 13 Sections 19.2.3.2.6 or

19.2.3.2.7. 5. New buildings with parking space(s) associated with EV charging station(s) having a continuous (single) area that is equal or greater than 1,500 SF shall be required to be provided with hose allowance of 500 GPM. while those with a parking space area that is less than 1,500 SF shall be required to be provided with hose allowance of 250 GPM, per EH2 Per 2022 NFPA 13 Section and Table

19.2.3.1.2. The total required hose stream of either 500-gpm or 250-gpm shall be taken from the point of connection with the city water main per Section 19.1.6.2 of 2022 NFPA 13. An inside hose stream is not required unless Class II hose stations are connected to the fire sprinkler system.

Ordinance No. XXXX (2025 Series) Page 41
O-XXXX

6. In new buildings that are equipped with a fire pump system, fire water storage tank, or both, calculations shall be provided to demonstrate that both the fire pump system and water storage tank are adequately sized to supply the required pressure, flow, and duration/quantity. See 2022 NFPA 13, Sections 19.1.5 and

19.1.6. 7. Sprinklered buildings (fully or partially) with Level-3 charger(s) shall have a sprinkler waterflow switch connected to the building fire alarm system or to a sprinkler monitoring system. Upon the installation of new Level-3 charger(s) in existing sprinklered buildings without an existing sprinkler waterflow switch, and without a building fire alarm or a sprinkler monitoring system, shall be required to install a new sprinkler waterflow switch and a sprinkler monitoring system per the applicable codes. The sprinkler waterflow switch associated with the charger(s) area, upon activation, shall generate a signal to shut down the power for all charger(s) in the affected area.

8. If the specific requirements above cannot be met, the SLOFD may allow for a performance-based design that meets or exceeds the intent outlined in this amendment, to be submitted for SLOFD review and approval on a case-by-case basis. The applicant may request a Pre-Application meeting to discuss specific projects on a case-by-case basis.

AA. Add Sections 903.2.22 and 903.2.23 to read as follows:
903.2.22 Existing buildings in commercial fire zone. Existing buildings located in the commercial fire zone shown in Figure 9-A that are provided with an underground fire sprinkler lateral, shall have an automatic fire sprinkler system installed and operational within 24 months of the approval and acceptance of the lateral by the City.

Exceptions:

1. The installation of an automatic fire sprinkler system required by Section 903.2.1 in a building of unreinforced masonry construction not strengthened by July 1, 2007 shall coincide with the strengthening dates established by Resolution #9890 (2007). City Council established dates range from 2008 to 2010 based on the relative hazard of the building.

2. An automatic fire sprinkler system required by Section 903.2.1 in a building of unreinforced masonry construction strengthened as required by Appendix Chapter 1 of the 1997 Uniform Code for Building Conservation, as amended, prior to July 1, 2007, shall be completed and operational by July 1, 2012.

Ordinance No. XXXX (2025 Series) Page 42
O-XXXX

3. An automatic fire sprinkler system required by Section 903.2.1 in a building of unreinforced masonry construction strengthened as required by Appendix Chapter 1 of the 1997 Uniform Code for Building Conservation, as amended, prior to October 1, 2004, shall be completed and operational by January 1, 2017.

FIGURE 9-A – COMMERCIAL FIRE ZONE
903.2.23 Notification. Whenever the fire code official determines that a building is subject to the minimum requirements of Section 903.2.22, the building owner shall be notified in writing that an automatic fire-sprinkler system shall be installed in the building.

The notice shall specify in what manner the building fails to meet the minimum requirements of Section 903.2.22. It shall direct that plans be submitted, that necessary permits be obtained, and that installation be completed by the specified date. The fire department shall serve the notice, either personally or by certified or registered mail, upon the owner as shown on the last-equalized assessment roll and upon the person, if any, in real or apparent charge or control of the building.

BB. Amend Sections 903.3.1.1 and 903.3.1.1.1 to read as follows, with all locations identified in section 903.3.1.1.1 to remain:

Ordinance No. XXXX (2025 Series) Page 43
O-XXXX
903.3.1.1 NFPA 13 sprinkler systems. Where other provisions of this code require that a building or portion thereof be equipped throughout with an automatic sprinkler system in accordance with this section and where a building is considered as mixed occupancy due to the presence of two or more uses that are classified into different occupancy groups, sprinklers shall be installed throughout in accordance with NFPA 13 as amended in Chapter 80 except as provided in Section 903.3.1.1.1 through 903.1.1.3.
903.3.1.1.1 Exempt locations. In other than Group I-2, I-2.1 and I-3 occupancies, automatic sprinklers shall not be required in the following rooms or areas where such rooms or areas are protected with an approved alternative automatic fire extinguishing system in accordance with Section 904. Sprinklers shall not be omitted from any room merely because it is damp, of fire-resistancerated construction or contains electrical equipment.

CC. Amend Section 903.4 to read as follows, with Exceptions to remain:
903.4 Sprinkler system supervision and alarms. All valves controlling the water supply for automatic sprinkler systems, pumps, tanks, water levels and temperatures, critical air pressures, and water-flow switches on all sprinkler systems shall be electrically supervised by a central station service listed by Underwriters Laboratories for receiving fire alarms in accordance with NFPA 72.

The central station shall contact and notify the police/fire dispatch center immediately on notification of an alarm and prior to making contact with the protected premises.

DD. Amend Section 903.4.3 and add Exception to read as follows:
903.4.3 Isolation Control Valves. Approved supervised indication control valves shall be provided at the point of connection to the riser on each floor in all buildings two or more stories in height or in single-story buildings having a gross floor area of 10,000 square feet or more zoned into no more than 5,000 square foot areas for the purpose of maintaining system integrity for life safety and evacuation.

Exception: Isolation control valves may be omitted in building equipped with an automatic fire extinguishing system installed in accordance with Section 903.3.1.3.

EE. Amend Section 905.3.1 to read as follows, with Exceptions to remain:
905.3.1 Height. In other than Group R-3 and R-3.1 occupancies, Class III standpipe systems shall be installed throughout at each floor where any of the following occur.

1. Buildings where the floor level of the highest story is located more than 30 feet (9144 mm) above the lowest level of fire department vehicle access.

Ordinance No. XXXX (2025 Series) Page 44
O-XXXX

2. Buildings that are four or more stories in height.

3. Buildings where the floor level of the lowest story is located more than 30 feet (9144 mm) below the highest level of fire department vehicle access.

4. Buildings that are two or more stories below the highest level of fire department vehicle access.

5. In any parking structure exceeding one level above or one level below grade.

FF. Amend Section 907.6.6 to read as follows:
907.6.6 Monitoring. Fire alarm systems required by this chapter or by the California Building Code shall be monitored by an approved central station service listed by Underwriters Laboratory for receiving fire alarms in accordance with NFPA 72 and this section. The central station shall contact and notify the police/fire dispatch center immediately on notification of an alarm and prior to making contact with the protected premises.

Exception: Monitoring by a central station service is not required for:

1. Single- and multiple station smoke alarms required by Section 907.2.11.

2. Group I-3 occupancies shall be monitored in accordance with Section 907.2.6.3.

3. Automatic sprinkler systems in one- and two-family dwellings.

GG. Add Section 910.3.2.1 to read as follows:

Section 910.3.2.1 Sprinklered buildings. Where installed in buildings equipped with an approved automatic sprinkler system, smoke and heat vents shall be designed to operate automatically by actuation of a heat responsive device rated at least 100 degrees above the operating temperature of the sprinkler heads.

HH. Add Section 1207.1.1.1 to read as follows:
1207.1.1.1 Hazardous electrolyte thresholds. Stationary battery systems having an electrolyte capacity of more than 50 gallons (189 L) for flooded lead acid, nickel cadmium (Ni-Cd) and valve-regulated lead acid (VRLA), or 1,000 pounds (454 kg) for lithium0ion and lithium metal polymer, used for facility standby power, emergency power, or uninterrupted power supplies or the indoor storage of electric carts, cars, fork-lifts and similar equipment, shall comply with this section and Table 1207.1.1.

II. Amend Section 2306.2 and delete 2306.2.6, to read as follows:
2306.2 Method of storage. Approved methods of storage for Class I, II and III liquid fuels at motor fuel-dispensing facilities shall be in accordance with Sections 2306.2.1 through 2306.2.6

Ordinance No. XXXX (2025 Series) Page 45
O-XXXX
JJ. Amend Section 2306.2.3 (3) to read as follows:

3. Tanks containing fuels shall not exceed 8,000 gallons (30,274 L) in individual capacity or 16,000 gallons (60,549 L) in aggregate capacity.

Installations with the maximum allowable aggregate capacity shall be separated from other such installations by not less than 100 feet (30 480 mm).

KK. Amend Sections 2306.2.4 and 2306.2.4.1 to read as follows and delete Section 2306.2.4.2:
2306.2.4 Above-ground tanks located in above-grade vaults or below-grade vaults. Above-ground tanks used for storage of Class I, II, or III liquid motor fuels are allowed to be installed in vaults located above grade or below grade in accordance with Section 5704.2.8 and shall comply with Sections 2306.2.4.1 and 2306.2.4.2. Tanks in above-grade vaults shall also comply with Table 2306.2.3 and the fuel shall not be offered for resale.
2306.2.4.1 Tank capacity limits. Tanks storing Class I, II or III liquids at an individual site shall be limited to a maximum individual capacity of 8,000 gallons (30,274 L) and an aggregate capacity of 16,000 gallons (60,549 L).

LL. Amend Section 2306.2.6 items 1 and 6 to read as follows:

1. The special enclosure shall be liquid tight and vapor tight. A leak detectionmonitoring system capable of detecting liquid and providing an audible and visual alarm shall be installed and tested annually.

6. Tanks containing Class I, II, or III liquids inside a special enclosure shall not exceed 2,000 gallons (7569 L) in individual capacity or 6,000 gallons (22706 L) in aggregate capacity
MM. Amend Section 3307.1 to read as follows:

Section 3307.1 Required access. Approved vehicle access for firefighting shall be provided to within 100 feet of temporary or permanent fire department connections all construction or demolition sites. Vehicle access shall be provided by either temporary or permanent roads, capable of supporting vehicle loading under all weather conditions to within 150 feet of all combustible building materials or construction. Vehicle access roads shall be maintained until permanent fire apparatus access roads are available.

NN. Amend Section 5601.1 and add exceptions 11 and 12 to read as follows:

Ordinance No. XXXX (2025 Series) Page 46
O-XXXX
5601.1 Scope. The provisions of this chapter shall govern the possession, manufacture, storage, handling, sale and use of explosives, explosive materials, fireworks, rockets, emergency signaling devices and small arms ammunition.

Manufacture, possession, storage, sale, transportation, handling or use of explosive materials and the manufacture of explosive material and/or all fireworks, including Safe and Sane as designated by the Office of the State Fire Marshal, is prohibited within the City.

Exceptions:

1. Through 10. To remain as written.

11.Use and handling of fireworks for display in accordance with Section 5601.1.3 exception (3) when authorized by the fire code official and in full compliance with Title 19, Division I, Chapter 6.

12.The transportation, handling or use of explosive materials in conjunction with a City permitted construction or demolition project, subject to approval of the fire code authority and conforming to the requirements of the California Code of Regulations, Title 19, Division 1, Chapter 10.

OO. Add the following definition to Section 5702:

TANK, PROTECTED ABOVE GROUND. A tank listed in accordance with UL 2085 consisting of a primary tank provided with protection from physical damage and fire-resistive protection from a high-intensity liquid pool fire exposure. The tank may provide protection elements as a unit or may be an assembly of components, or a combination thereof.

PP. Amend Section 5704.2.7 and Delete the Exception to Section 5704.2.7.5.8 to read as follows:
5704.2.7 Design, fabrication and construction requirements for tanks. All tanks shall be protected tanks as defined in Section 5702. The design, fabrication, and construction of tanks shall comply with NFPA 30. Tanks shall be of doublewalled construction and listed by Underwriters Laboratories (UL). Each tank shall bear a permanent nameplate or marking indicating the standard used as the basis of design.
5704.2.7.5.8 Over-fill prevention. An approved means or method in accordance with Section 5704.2.9.7.5 shall be provided to prevent the over-fill of all Class I, II and IIIA liquid storage tanks. Storage tanks in refineries, bulk plants or terminals regulated by Sections 5706.4 or 5706.7 shall have over-fill protection in accordance with API 2350.

Ordinance No. XXXX (2025 Series) Page 47
O-XXXX
An approved means or method in accordance with Section 5704.2.9.7.5 shall be provided to prevent the overfilling of Class IIIB liquid storage tanks connected to fuel-burning equipment inside buildings
QQ. Amend 5704.2.8.3 to read as follows:
5704.2.8.3 Secondary containment. Vaults shall be liquid tight and there shall not be backfill around the tank or within the vault. The vault floor shall drain to a sump. For pre-manufactured vaults, liquid tightness shall be certified as part of the listing provided by a nationally recognized testing laboratory. For field-erected vaults, liquid tightness shall be certified in an approved manner.

RR. Add Section 5704.2.8.11.1 to read as follows:
5704.2.8.11.1 Monitoring and detection. Activation of vapor detection systems shall also shut off dispenser pumps. Monitoring and detection systems shall be inspected and tested annually.

SS. Amend Sections 5704.2.9 to read as follows:
5704.2.9 Above-ground tanks outside of buildings. Above-ground storage of flammable and combustible liquids in tanks outside of buildings shall comply with Section 5704.2 and Sections 5704.2.9.1 through 5704.2.9.7.9 and Section 2306.2.3, condition 3 as amended by this chapter.

TT. Amend Section 5704.2.13.1.4 to read as follows with items 1 through 6 to remain:
5704.2.13.1.4 Tanks abandoned in place. A tank owner/operator proposing to abandon a tank in place shall submit a permit application to the fire department for assessment of soil contamination around the tank and product, vent and vapor piping. If contamination is confirmed, a work plan for additional assessment or remediation shall be submitted to the fire department within 30 days. If a tank is approved for abandonment in place, the property owner will be required place a deed notice on the property. The deed notice shall be notarized and recorded with the San Luis Obispo County Clerk Recorder’s Office within 30 days of tank abandonment. Tanks abandoned in place shall be as follows:

UU. Amend 5706.2.4 and the Exception to Section 5706.2.4 to read as follows:
5706.2.4 Permanent and temporary tanks. The capacity of permanent aboveground tanks containing Class I, II or III liquids shall not exceed 1,100 gallons (4164L). The capacity of temporary aboveground tanks containing class I, II, or III liquids shall not exceed 8,000 gallons (30 274 L). Tanks shall be of the singlecompartment design, double-walled construction and shall be listed by Underwriters Laboratory (UL).

Ordinance No. XXXX (2025 Series) Page 48
O-XXXX
Exception: Permanent aboveground tanks of greater capacity which meet the requirements of 5704.2, as amended, may be permitted when approved by the fire code official.

VV. Amend Section 5706.2.5 to read as follows:
5706.2.5 Type of tank. Tanks shall be listed for use by Underwriters Laboratory (UL), provided with top openings only, and overfill protection, and approved hoses/nozzles. Tanks shall be of double-walled construction or be provided with secondary containment. Elevated gravity discharge tanks shall be permitted only by approval of the fire code official.

WW. Amend Section 6104.2 to read as follows:
6104.2 Maximum capacity within established limits. The installation of any liquid petroleum gas (LPG) tank over 500 gallons (1892 L) water capacity is prohibited unless approved by the fire code official. In residential occupancies, LPG containers are limited to 5 gallons (19 L) for use in outdoor appliances.

XX. Amend Appendix Section B105.1 and the title of Table B105.1 (1) to read as follows:

B105.1One- and two-family dwellings. The minimum fire-flow and flow duration for one- and two-family dwellings shall be as specified in Tables B105.1 (1) and B105.1 (2).

Table B105.1(1)

REQUIRED FIRE-FLOW FOR ONE- AND TWO-FAMILY DWELLINGS
The remainder of the table is unchanged.

YY. Amend the Exception to Appendix Section B105.2 to read as follows:

B105.2 Buildings other than one- and two-family dwellings. The minimum fireflow and flow duration for buildings other than one- and two-family dwellings shall be as specified in Table B105.1 (2).

Exception: A reduction in required fire-flow of up to 50 percent, as approved by the fire code official, may be allowed when the building is provided with an approved automatic sprinkler system installed in accordance with Section 903.3.1.1 or 903.3.1.2. The resulting fire-flow shall not be less than 1,500 gallons per minute (5678 L/min) for the prescribed duration as specified in Table B105.1(2).

Ordinance No. XXXX (2025 Series) Page 49
O-XXXX
ZZ. Amend Appendix Section D103.1 and Add Exception to Figure D103.1 to read as follows:

D103.1 Access Road width with a hydrant. Where a fire hydrant is located on a fire apparatus road, the minimum road width shall be 26 feet (7925 mm). See Figure D103.1.

Exceptions to Figure D103.1: Cul-de-sac diameter may be a minimum of 70 feet as approved by the fire code official. Parking in cul-de-sacs of less than 96 feet in diameter shall be approved by the fire code official.

AAA. Amend Appendix Section D103.4, Table D103.4 and Figure D103.1 to read as follows:

D103.4 Dead ends. Dead-end fire apparatus access roads in excess of 150 feet shall be provided with width and turnaround provisions in accordance with Table D103.4, as amended.

Exception: Where buildings along the dead-end road are protected by an approved fire sprinkler system throughout, the distance may be increased to 300 feet (91 440 mm).

Table D103.4: The minimum fire apparatus turnaround cul-de-sac diameter shall be 70 feet, curb to curb, when posted “No Parking”.

BBB. Amend Appendix Section D103.6 through D103.6.2 to read as follows:

D103.6 Signs. Where required by the fire code official, fire apparatus roads shall be marked with permanent NO PARKING--FIRE LANE signs per city standards.

Signs shall be posted on one or both sides of the fire apparatus road as required by Section D103.6.1 or D103.6.2.

D103.6.1 Roads less than 28 feet in width. Fire apparatus roads 20 to less than 28 feet wide shall be posted on both sides as a fire lane.

D103.6.2 Roads 28 or greater feet in width. Fire apparatus roads 28 to less than 36 feet wide shall be posted on one side of the road as a fire lane.

CCC. Amend Appendix Section D104.1 to read as follows:

D104.1 Buildings exceeding three stories or 30 feet in height. Buildings or facilities exceeding 30 feet (9144 mm) or three stories in height shall have adequate means of fire department access for each structure as approved by the fire code official.

DDD. Amend the Exception to Appendix Section D104.2 to read as follows:

Ordinance No. XXXX (2025 Series) Page 50
O-XXXX
D104.2 Buildings exceeding 62,000 square feet in area. Buildings or facilities having a gross building area of more than 62,000 square feet (5760 m2) shall be provided with two separate and approved fire apparatus access roads.

Exception: Buildings located in the commercial fire zone as shown on Figure 9-A of this code may be provided with fire apparatus access roads having a minimum width of 20 feet when approved by the fire code official.

EEE. Amend Appendix Section D105.2 by adding an exception to read as follows:

D105.2 Width. Aerial fire apparatus access roads shall have a minimum unobstructed width of 26 feet (7925 mm) in the immediate vicinity of any building or portion of a building more than 30 feet (9144 mm) in height.

Exception: Buildings located in the commercial fire zone as shown on Figure 9-A of this code may be provided with fire apparatus access roads having a minimum width of 20 feet when approved by the fire code official.

FFF. Amend Section D106.1 to read as follows:

D106.1 Projects having more than 100 dwelling units. Multiple-family residential projects having more than 100 dwelling units shall be equipped throughout with two separate and approved fire apparatus access roads.

GGG. Delete Appendix Section D106.2.

HHH. Amend Appendix Section D107.1 and delete Exception 1 to read as follows:

D107.1 One- or two-family dwelling residential developments. Developments of one- or two-family dwellings where the number of dwelling units exceeds 30 shall be provided with separate and approved fire access roads and shall meet the requirements of D104.3. Where the number of dwelling units is less than 30, the fire code official may require additional access in accordance with Section 503.1.2.

Exception: The number of dwelling units accessed from a single fire apparatus access road shall not be increased unless fire apparatus access roads will connect with future development, as determined by the fire code official.

SECTION 15.04.100 AMENDMENTS; EXISTING BUILDING STANDARDS A. Amend Appendix Section A101.1 to read as follows:

Ordinance No. XXXX (2025 Series) Page 51
O-XXXX
[BS] A101.1 Purpose. The purpose of this chapter is to promote public safety and welfare by reducing the risk of death or injury that may result from the effects of earthquakes on existing buildings of unreinforced masonry wall construction.

The provisions of this chapter are intended as minimum standards for structural seismic resistance established primarily to reduce the risk of life loss or injury.

Compliance with these standards will not necessarily prevent loss of life or injury or prevent earthquake damage to retrofitted buildings.

B. Amend Appendix Section A102.1 and add exceptions to read as follows:
[BS] A102.1 General. The provisions of this chapter shall apply to all existing buildings having at least one unreinforced masonry wall. The elements regulated by this chapter shall be determined in accordance with Table A102.1.

Except as provided herein, other structural provisions of the building code shall apply. This chapter does not apply to the alteration of existing electrical, plumbing, mechanical or fire safety systems.

Exceptions:

1. Warehouses or similar structures not used for human habitation unless housing emergency equipment or supplies.

2. A building having five living units or less.

C. Add the following definitions to Section A103:

LEVEL A STRENGTHENING of an unreinforced masonry building is compliance with the provisions of this chapter, limited to the removal of or bracing of parapets, installation of anchors between walls and roof, and installation of anchors between walls and floors.

LEVEL B STRENGTHENING of an unreinforced masonry building is compliance with all provisions of this chapter.

D. Amend Appendix Section A109.2 to read as follows:
[BS] A109.2 Selection of Procedure. Buildings shall be analyzed by the General Procedure of Section A110, which is based on Chapter 16 of the California Building Code, or when applicable, buildings may be analyzed by the Special Procedure of A111. Buildings with a substantially complete steel or concrete frame capable of supporting gravity dead and live loads and that utilize unreinforced masonry walls as non-bearing infill between frame members shall be analyzed by a procedure approved by the building official.

Ordinance No. XXXX (2025 Series) Page 52
O-XXXX
Qualified historic structures may be analyzed per the California Building Standards Code, Part 8, California Historical Building Code.

E. Add new Section A115 entitled "Administrative Provisions" to read as follows:

SECTION A115

ADMINISTRATIVE PROVISIONS
A115.1 Compliance Requirements.

A115.1.1 Strengthening deadlines. The owner of a building within the scope of this chapter shall structurally alter the building to conform to Level B Strengthening within 24 months of receiving written notice from the building official.

A115.1.2 Permits. The owner of a building within the scope of this chapter shall submit a complete application for a building permit to strengthen the building to Level B requirements within 3 months of receiving written notification from the building official. The building permit shall be obtained within 6 months of receiving written notification from the building official and shall remain valid until required Level B strengthening work is completed per Section A115.1.1.

A115.1.3 Posting of sign. The owner of a building within the scope of this chapter shall post, at a conspicuous place near the primary entrances to the building, a sign provided by the building official stating “This is an unreinforced masonry building. Unreinforced masonry buildings may be unsafe in the event of a major earthquake”. The sign shall be posted within 30 days of receipt by the building owner per installation standards established by the building official.

A115.2 Notice and Order
A115.2.1 General. The building official shall, within 30 days of the determination that a building is of unreinforced masonry construction issue a notice and order as provided in this section to the owner of a building within the scope of this chapter.

A115.2.2 Service of notice and order. A notice or order issued pursuant to this section shall be in writing and shall be served either personally or by certified or registered mail upon the owner as shown on the last equalized assessment roll, and upon the person, if any, in apparent charge or control of the building. The failure of any such person to receive such notice or order shall not affect the validity of any proceedings taken

Ordinance No. XXXX (2025 Series) Page 53
O-XXXX
under this chapter or relieve any such person from any duty or obligation imposed on him by the provisions of this chapter.

A115.2.3 Content of notice and order. The notice shall specify that the building has been determined by the building official to be within the scope of this chapter and, therefore, is subject to the minimum seismic standards of this chapter. The order shall direct the owner to obtain a building or demolition permit as required by this chapter and cause the building to be structurally altered to conform to the provisions of this chapter, or cause the building to be demolished. The notice or order shall be accompanied by a copy of Section A115.1, which sets forth the owner's responsibilities.

A115.3 Appeal. The owner of the building may appeal the building official's initial determination that the building is within the scope of this chapter to the Board of Appeals established by Chapter 1, Division II, Section 113 of the California Building Code, as adopted. Such appeal shall be filed with the Board within 60 days from the service date of the order described in Section A115.2.

Any appeal shall be decided by the Board no later than 90 days after filing and the grounds thereof shall be stated clearly and concisely. Appeals or requests for modifications from any other determinations, orders or actions by the building official pursuant to this chapter shall be made in accordance with the procedures established in Chapter 1, Division II, Section 104.10 of the California Building Code.

A115.4 Recordation. At the time that the building official serves the aforementioned notice, the building official shall also file and record with the office of the county recorder a certificate stating that the subject building is within the scope of this chapter and is a potentially earthquake hazardous building. The certificate shall also state that the owner thereof will be ordered to structurally analyze the building to determine compliance with this chapter.

If the building is either demolished, found not to be within the scope of this chapter, or is structurally capable of resisting minimum seismic forces required by this chapter as a result of structural alterations or an analysis, the building official shall file and record with the office of the county recorder a form terminating the status of the subject building as being classified within the scope of this chapter.

A115.5 Enforcement. If the owner in charge or control of the subject building fails to comply with any order issued by the building official pursuant to this chapter within the time limit set forth in Section A115.1, the building official shall verify that the record owner of this building has been properly served. If the order has been served on the record owner, then the following provisions apply:

Ordinance No. XXXX (2025 Series) Page 54
O-XXXX

1. The building official may order that the entire building be vacated and that the building remain vacated until such order has been complied with. If compliance with such order has not been accomplished within 90 days after the date the building has been ordered vacated or such additional time as may have been granted by the Board of Appeals, the building official may order its demolition in accordance with the provisions of Sections 107, 108, and 109 of the International Property Maintenance Code.

2. Any person who violates any provision of this chapter is guilty of a misdemeanor, and is subject to the penalty as provided for in Chapter 1.12 of the City of San Luis Obispo Municipal Code. The City may also pursue alternative civil remedies as set forth in Section 1.12.090 of the Municipal Code.

A115.6 Program monitoring and annual report. If any unreinforced mason buildings are discovered, building official shall submit a report to the City Council outlining the progress to date concerning reduction of the hazards presented by the unreinforced masonry building inventory for the City. The report shall include:

1. The number of unreinforced masonry buildings strengthened, demolished, or otherwise eliminated from the inventory;

2. The number of unreinforced masonry buildings remaining on the inventory, including the status of orders issued pursuant to this Chapter that are not resolved.

A115.7 Automatic Fire Sprinkler Systems. Buildings within the scope of this chapter located in the commercial fire zone shown in Figure 9-A of the California Fire Code, as amended, shall install an automatic fire sprinkler system in conjunction with level B strengthening deadlines in accordance with Section 903.2.1 of the California Fire Code, as amended in Municipal Code Section 15.04.100, unless a later installation date is granted by both the building official and fire code official.

F. Add Appendix F to read as follows:

Ordinance No. XXXX (2025 Series) Page 55
O-XXXX
Appendix F

DEMOLITION AND MOVING

OF BUILDINGS
SECTION F101

GENERAL
F101.1 Purpose. The purpose of this appendix is to establish minimum standards and procedures for the demolition and relocation (moving) of buildings and structures to safeguard life, property, health and public welfare.

It is also intended to ensure that moved buildings are structurally sound, sanitary, habitable, and that they will harmonize with existing development in the area to which they are to be moved.

F101.2 Scope. This appendix sets forth rules and regulations to control demolition and relocation operations, establishes the administrative procedures for review of an application to demolish or move a building, and provides for the issuance of permits.

F101.3 Appeals. Any person aggrieved by a decision made under the terms of this chapter may appeal such decision. For matters concerning the technical provisions of this code, such appeal shall be subject to the provisions of the Chapter 1, Division II Section 113 of the California Building Code; for all other matters, the appeal provisions of Chapter 1.20 of the Municipal Code shall apply.

SECTION F102

DEFINITIONS
Section F102 General. For the purposes of this appendix, certain terms, words and their derivatives shall be defined as specified in this section.

ARC means the Architectural Review Commission appointed by the City Council.

CHC means the Cultural Heritage Committee appointed by the City Council.

Demolition means the complete or partial removal of a structure.

Ordinance No. XXXX (2025 Series) Page 56
O-XXXX
Foundation means the structure, usually of concrete, resting on or in the ground, including the footing, on which a building is erected.

Foundation wall means the walls of concrete or masonry that support a building.

Inventory of Historical Resources is the Master List of Historic Resources and the Listing of Contributing Properties within Historical Preservation Districts approved by the City Council.

Municipal Code means the San Luis Obispo Municipal Code.

Potential Historic Resource means a building which may meet the Criteria for Historic Listing found in the City of San Luis Obispo Historic Preservation Program, but which has not been evaluated or listed as an historic resource.

Slab means a flat piece of material, usually of concrete, placed on the ground for use as a building floor, patio, driveway, walk, ball court and/or similar uses.

Structure means any human made site feature, including signs, walls, fences, buildings, monuments, or similar features.

Substructure means the foundation of a building or structure including the piers and piles.

SECTION F103

PERMIT REQUIREMENTS
F103.1 Permit required. The demolition or relocation (moving) of any building or structure shall not commence until a permit has been issued by the building official in accordance with the provisions of this chapter and Chapter 1, Division II of the California Building Code.

Exception: Temporary construction offices.

A permit to move a building shall be a building permit when the building is relocated within the limits of the city. A permit to move a building shall be a demolition permit when the building is relocated to a site outside of the city limits.

Ordinance No. XXXX (2025 Series) Page 57
O-XXXX
F103.2 Moving and Relocation of Buildings.

F103.2.1 Inspection of buildings to be moved. All buildings to be moved into or within the city shall be inspected by the building official to determine compliance with this code and suitability for moving prior to permit issuance.

F103.2.2 Transportation and building permits required. For moving projects, a transportation permit shall be obtained from the public works director subsequent to issuance of a moving permit. Building, plumbing, electrical, and mechanical permits shall be required for all work necessary for the placement of a moved or relocated building.

F103.3 Procedure for permit application processing. Prior to issuance of a permit to demolish or relocate a building or structure, the permit application shall be subject to the following:

1. Demolition or relocation of historical resource. For any structure located on a property listed on the Inventory of Historical Resources, an application for Architectural Review shall be submitted and require approval prior to issuance of a permit for building relocation or demolition. The application shall include plans for replacement structures, at the discretion of the Community Development Director.

2. Demolition or relocation of structure not designated historical. For any structure that is not located on a property listed on the Inventory of Historical Resources and that is over 50 years old, the Community Development Director shall determine if the structure or structures proposed for demolition are a potential historic resource. If the Community Development Director determines that the structure or structures is/are a potentially historic resource(s), the applicant shall submit an application for Architectural Review. If the Community Development Director determines the structure or structures not to be a potential historic resource, the applicant shall provide evidence that for a period of not less than 90 days from date of permit application, the building was advertised in a local newspaper on at least 3 separate occasions not less than 15 days apart, as available to any interested person to be moved; and submit historic documentation for the structure in accordance with criteria established by the Community Development Director and the Cultural Heritage Committee.

Exceptions for Structures Not Designated Historical:

1. A building or structure determined by the building official to be a dangerous building as defined in the International Property Maintenance Code which poses an imminent, serious threat to the

Ordinance No. XXXX (2025 Series) Page 58
O-XXXX
health, safety or welfare of community residents or people living or working on or near the site, and for which historic documentation acceptable to the Community Development Director has been submitted.

2. Accessory buildings, sheds, garages, and similar structures, unless determined to be a potential historic resource by the Community Development Director.

F103.4 Guarantee. Prior to issuance of a permit to demolish or move a building or structure, the applicant shall provide the city with a guarantee in such form and amount as may be deemed necessary by the building official to assure completion of demolition or moving, removal of all debris, cleanup of the site, repair of damage to public improvements, erection of barricades when required and filling of depression below adjacent grade. The amount of the guarantee for demolition shall be not less than one thousand dollars or twenty percent of the value of the demolition contract price, whichever is greater. The amount of the guarantee for moving a building or structure shall be twenty percent of the total value of all work to be accomplished and associated with moving of the building, but not less than five thousand dollars. Work required to comply with this section may be completed by the city after the time limits stated have expired and shall be paid from the deposit. The deposit shall not be released until such work is completed.

Exceptions:

1. No guarantee will be required when the demolition permit is issued at the same time as a building permit for a redevelopment project.

2. When the structure to be moved is to be relocated outside the limits of the city, the amount of the guarantee may be reduced when approved by the building official, but in no case shall be less than one thousand dollars.

F103.5 Indemnity. Every person, firm or corporation to whom permission has been granted under the terms of this chapter and other ordinances to utilize public property for the demolition or moving of any building or structure shall at all times assume responsibility for any damage to public property. Such permission shall be further conditioned that any person, firm or corporation shall, as a consideration for the use of public property, at all times release, hold harmless and indemnify the city and all of its agents and employees from any and all responsibility, liability, loss or damage resulting to any persons or property caused by or incidental to the demolition or moving work. Written indemnification in a form acceptable to the city attorney shall be provided.

F103.6 Damage to public property. As a condition of obtaining a permit to demolish or move any building or structure, the permittee shall assume liability for any damage to public property occasioned by such moving, demolition, or

Ordinance No. XXXX (2025 Series) Page 59
O-XXXX
removal operations. Applicants for demolition permits shall provide information and plans when requested for protection of public property. Information and plans shall be specific as to type of protection, structural adequacy and location. Approval to use or occupy public property shall be obtained before proceeding with demolition work.

F103.7 Insurance. Prior to the issuance of a permit to demolish or move any building or structure, the permit applicant shall deposit with the building official a certificate of liability insurance naming the city as an additional insured party on the insurance policy. Such insurance shall be valid at all times during demolition or moving operations. The liability insurance coverage shall be in an amount of at least five hundred thousand dollars per occurrence for injuries, including accidental death to any one person, and subject to the same limit for each additional person, in an amount at least one million dollars on account of any one accident: and property damage in an amount at least five hundred thousand dollars.

Exception: Demolition of a wood frame building not greater than two stories or twenty-five feet in height, measured to the top of the highest point of the roof, provided the building is not less than twenty feet from public property lines or, if less than twenty feet from public property lines, adequate protection is provided for pedestrians and public property to the satisfaction of the building official.

F103.8 Disconnecting service lines. Prior to the issuance of a permit to demolish or relocate a building or structure, the permit applicant shall complete the following to the satisfaction of the building official:

1. Electrical service. The power to all electric service lines shall be shutoff and all such lines cut or disconnected outside the property line. Prior to the cutting of such lines, the property owner or his agent shall notify and obtain the approval of the electric service agency.

2. Other service. All gas, water, steam, storm, sanitary sewers, and other service lines shall be shut-off and/or abandoned as required by the public works director, utilities director, or other agency SECTION F104

PUBLIC SAFETY REQUIREMENTS
F104.1 General. The demolition or moving of any building shall not commence until structures required for protection of persons and property are in place.

Such structures and the demolition work shall conform to the applicable provisions of Chapter 33 of the California Building Code. Prior to permit issuance, a schedule of operations shall be submitted to the building official for

Ordinance No. XXXX (2025 Series) Page 60
O-XXXX
review and approval and shall set forth a sequence of work on the building, the need to barricade public streets, details of travel to and from the site for hauling operations, route of moving, estimated completion date, and any other significant work which may require inspection or coordination with city departments.

F104.2 Dust and debris. During demolition operations, all material removed shall be wet sufficiently or otherwise handled to control the dust incidental to removal.

All adjacent streets, alleys and other public ways and places shall be kept free and clear of all rubbish, refuse and loose material resulting from the moving, demolition or demolition removal operations, except as allowed by temporary encroachment permits approved by the public works director.

SECTION F105

REMOVAL OF MATERIALS
F105.1 General. All building rubble and debris shall be removed from the demolition site to an approved point of disposal.

F105.2 Foundations. All foundations, concrete slabs and building substructures shall be removed to the satisfaction of the building official.

Exception: Foundations, concrete slabs on grade and building substructures may remain if the site is fenced to the satisfaction of the building official.

F105.3 Completion. Upon completion of the removal of a building or structure by either demolition or moving, the ground shall be left in a smooth condition free of demolition debris. Holes in the ground, basements or cellars, shall be filled to existing grade.

Exception: The filling of such excavation may not be required when a building permit has been issued for a new building on the site and the construction thereof is to start within sixty days after the completion of demolition or moving operations and the permittee provides a temporary barricade protecting the excavation on all sides to the satisfaction of the building official.

SECTION 15.04.110 AMENDMENTS; GREEN BUILDING STANDARDS
(RESERVED).

Ordinance No. XXXX (2025 Series) Page 61
O-XXXX
SECTION 15.04.120 AMENDMENTS; REFERENCED STANDARDS (RESERVED).

SECTION 15.04.130 AMENDMENTS; PROPERTY MAINTENANCE STANDARDS.

A. All references to "International" codes shall be replaced with "California" codes.

B. Amend Chapter 1, Part 1, Section 101.1 to read as follows:
101.1 Title. These regulations shall be known as the Property Maintenance Code of The City of San Luis Obispo, hereinafter referred to as “this code.” C. Amend Chapter 1, Part 1, Section 102.3 to read as follows:
102.3. Application to other Codes. Nothing in this Code shall be construed to cancel, modify, or set aside any provision of the California Code of Regulations, Title 24 as amended and adopted by the City of San Luis Obispo.

D. Amend Chapter 1, Part 2, Section 103.1 to read as follows:
103.1 Creation of enforcement agency. The Building and Safety Division is hereby created and the official in charge thereof shall be known as the building official. The function of the agency shall be the implementation, administration and enforcement of the provisions of this code.

E. Add Chapter 1, Part 2, Section 109.2.2 is added to read as follows:
109.2.2 Closed structures method and term. Structures ordered to be closed, shall be closed in accordance with Appendix A of this code.

F. Amend Chapter 1, Part 2, Section 109.4 and Delete Sections 109.4.1 & 109.4.2 to read as follows:
109.4 Notice. Whenever the code official determines that there has been a violation of this code or has grounds to believe that a violation has occurred, notice shall be given in the manner prescribed in San Luis Obispo Municipal Code Sections 1.24.050 (F) & (G) to the owner or the owner’s authorized agent, for the violation as specified in this code. Notices for condemnation procedures shall comply with this section.

G. Amend Chapter 1, Part 2, Section 109.7 to read as follows:
109.7 Posting and placarding. Whenever a property, structure or piece of regulated equipment is found to be unsafe, unfit for occupancy, and/or dangerous,

Ordinance No. XXXX (2025 Series) Page 62
O-XXXX
the Code Official shall post a placard stating such, and the penalties for removal of the placard without prior City approval. The placard shall be placed at a conspicuous location on the property, each entrance to the structure, or on the equipment.

H. Amend Chapter 2, Section 201.3 to read as follows:
201.3 Terms defined in other codes. Where terms are not defined in this code and are defined in the California Building Standards Code and referenced standards, such terms shall have the meanings ascribed to them as stated in those codes.

I. Amend Chapter 2, Section 202 definition of CODE OFFICIAL to read as follows:

CODE OFFICIAL. The Building Official and/or designee charged with the administration and enforcement of this code, or any duly authorized representative.

J. Amend Chapter 3, Section 302.1 to read as follows:
302.1 Sanitation. The property owner or authorized agent shall maintain the property exterior and premises in a clean, safe and sanitary condition. Such owner or authorized agent shall remain liable for violations thereof regardless of any contract or agreement with any third party regarding such property. The occupant may also be held jointly and severally liable for causing or contributing violations of this section.

K. Amend Chapter 3, Section 302.3 to read as follows:
302.3 Sidewalks and driveways. Sidewalks, walkways, stairs, driveways, parking spaces and similar areas shall be kept in proper state of repair and maintained free from hazardous conditions.

The owner or owner's authorized agent of any building, lot or premises within the city shall maintain the sidewalks and/or walkways located upon such premises that are accessible to the general public and the public sidewalks between such premises and any adjacent public street or alley in a clean, safe sanitary, and in a proper state of repair, free from hazardous conditions. Maintenance shall include the removal and proper disposal of any unsightly or unsanitary conditions such as accumulations of garbage, refuse, rubbish, litter, dirt, gum or other sticky substances or items, which have been dropped or spilled upon the sidewalks.

L. Amend Chapter 3, Section 302.4 to read as follows:

Ordinance No. XXXX (2025 Series) Page 63
O-XXXX
302.4 Weeds. All premises and exterior property shall be maintained free from weeds or plant growth in excess of 12 inches. Noxious weeds shall be prohibited.

Weeds shall be defined as all grasses, annual plants and vegetation, other than trees or shrubs provided; however, this term shall not include cultivated flowers and gardens
M. Amend Chapter 3, Section 303.2 to read as follows:
303.2 Enclosures. Pool enclosures shall be in accordance with the States Swimming Pool Safety Act found in the State Health and Safety Code Sections 115920—115929.

N. Amend Chapter 3, Section 304.14 to read as follows:
304.14 Insect screens. Every door, window and other outside opening required for ventilation of habitable rooms, food preparation areas, food service areas or any areas where products to be included or utilized in food for human consumption are processed, manufactured, packaged or stored shall be supplied with approved tightly fitting screens of minimum 16 mesh per inch (16 mesh per 25mm), and every screen door used for insect control shall have a self-closing device in good working condition.

Exception: Screens shall not be required where other approved means, such as air curtains, are provided
O. Amend Chapter 3, Section 307.1 to read as follows:
307.1 General. Handrails and Guardrails shall be maintained in their most recently approved (by permit) state.

P. Amend Chapter 3, Section 309.1 and delete Sections 309.2 through 309.5 to read as follows:
309.1 Infestation. The property owner or authorized agent shall maintain all structures and premises on the property free from insect, rodent and vermin infestation. Upon visual confirmation of an insect, rodent or vermin infestation, the Code Official may require the owner or agent having charge or control of the building, lot or premise to hire a licensed pest control operator or other qualified professional to inspect the building, lot or premise and provide a written report verifying the presence and severity of such infestation including in the report, a recommendation for proper extermination of the infestation. Infestation may also be verified without a visual inspection upon receiving a recent written report from a qualified pest control operator verifying the presence of an infestation. All

Ordinance No. XXXX (2025 Series) Page 64
O-XXXX
structures in which insect, rodent or vermin infestations are found shall be promptly exterminated by approved processes that will not be injurious to human health.

After the extermination of the infestation is complete, the Code Official may request a written notice from the licensed exterminator or other qualified professional attesting to the completion and success of the recommended extermination procedures. After the infestation is eliminated, proper precautions shall be taken to prevent re-infestation. Tenants that contribute to pest related health or sanitation nuisances may also be subject to the penalties found in Section 109.4 of this code.

Q. Amend Chapter 6, Section 602.2 to read as follows:
602.2 Residential occupancies. Dwellings shall be provided with heating facilities capable of maintaining a room temperature of 68°F (20°C) in all habitable rooms, bathrooms and toilet rooms as measured per IPMC Section 602.5. Cooking appliances shall not be used, nor shall portable unvented fuel-burning space heaters be used, as a means to provide required heating.

R. Amend Chapter 6, Section 602.3 to read as follows:
602.3 Heat supply. Every owner and operator of any building who rents, leases or lets one or more dwelling units or sleeping units on terms, either expressed or implied, to furnish heat to the occupants thereof shall supply heat to maintain a minimum temperature of 68°F (20°C) in all habitable rooms, bathrooms and toilet rooms.

S. Amend Chapter 6, Section 602.4 to read as follows:
602.4 Occupiable workspaces. Indoor occupiable workspaces shall be supplied with heat to maintain a minimum temperature of 65°F (18°C) during the period the spaces are occupied.

Exceptions:

1. Processing, storage and operation areas that require cooling or special temperature conditions.

2. Areas in which persons are primarily engaged in vigorous physical activity.

SECTION 15.04.140 AMENDMENTS; HEALTH AND SAFETY STANDARDS.

SECTION 15.04.150 PERMITS REQUIRED FOR WELL CONSTRUCTION A. No person shall construct, repair, modify, abandon or destroy any water well without first obtaining a permit from the City. As used herein, "water well" shall mean an artificial excavation constructed by any method for the purpose of extracting water from, or injecting water into, the underground.

Ordinance No. XXXX (2025 Series) Page 65
O-XXXX
B. All work performed pursuant to each such permit shall be in conformance with all State laws and standards including applicable portions of Department of Water Resources Bulletin No. 74-81, all City ordinances, resolutions and policies relating thereto, and such permit conditions as may be imposed by the City.

C. Any water-well constructed, repaired, modified, destroyed, abandoned, or operated in violation of this section or the permit requirements shall constitute a public nuisance which may be abated by the City. A person who digs, drills, excavates, constructs, owns or controls any well and abandons such well and a person who owns, occupies, possesses or controls any premises on which an abandoned well exists shall cap or otherwise securely cover, cap or protect the entrance to the well. The capping or covering shall be so constructed and installed as will prevent any human being from suffering any bodily injury or death, through accident or inadvertence, by reason of the existence of the well.

SECTION 7. The Chief Building Official and Fire Code Official are hereby authorized and directed to transmit a copy of this ordinance to the California Building Standards Commission as required by California Health and Safety Code Section 17958.7. This Ordinance shall be effective as of January 1, 2026, and will be enforced upon approval by the Building Standards Commission.

SECTION 8. If any provision of this Ordinance is for any reason held to be invalid by a court of competent jurisdiction, the City of San Luis Obispo hereby declares that it would have passed each and every remaining provision irrespective of such holding in order to accomplish the intent of this ordinance.

Ordinance No. XXXX (2025 Series) Page 66
O-XXXX
SECTION 9. A summary of this ordinance, approved by the City Attorney, together with the ayes and noes shall be published at least 5 days prior to its final passage in the New Times, a newspaper published and circulated in said City, and the same shall go into effect at the expiration of 30 days after its final passage, but not before January 1, 2026. A copy of the full text of this ordinance shall be on file in the Office of the City Clerk on and after the date following introduction and passage to print and shall be available to any member of the public
INTRODUCED on the ____ day of ____, 2025, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2025, on the following vote:

AYES:

NOES:

ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

O ______
ORDINANCE NO. _____ (2025 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADOPTING LOCAL AMENDMENTS TO PART 6

OF THE BUILDING CONSTRUCTION AND FIRE PREVENTION CODE,
2026
WHEREAS, greenhouse gas accumulation in the atmosphere as the result of human activity is the primary cause of the global climate crisis; and WHEREAS, in California alone, the initial impacts of climate change have resulted in unprecedented disasters with tremendous human, economic, and environmental costs and;
WHEREAS, the State of California enacted Assembly Bill (AB) 1279 to require statewide carbon neutrality "as soon as possible," but no later than 2045; and WHEREAS, City of San Luis Obispo residents and businesses have repeatedly identified climate action as a top community priority; and WHEREAS, the City of San Luis Obispo’s Land Use Element of the General Plan directs the City to address energy use in buildings and to pursue a greenhouse gas emissions reduction strategy, and
WHEREAS, the City of San Luis Obispo’s Conservation and Open Sace Element (COSE) of the General Plan (adopted in 2006) includes policies related to minimizing greenhouse gas emissions (COSE Policy 2.2.1), and increasing the use of sustainable energy while decreasing the use of non-sustainable energy sources (COSE Goal 4.2); WHEREAS, Resolution 11159 (2020 Series) adopts the City of San Luis Obispo Climate Action Plan for Community Recovery (“Climate Action Plan”) that includes a communitywide goal of carbon neutrality by 2035 and sector specific goal of reducing greenhouse gas emissions from existing buildings by half by 2030; and WHEREAS, Resolution 11381 (2022 Series) reaffirmed these communitywide and sector specific goals; and
WHEREAS, the inventoried greenhouse gas emissions in the City of San Luis Obispo come from a variety of sources, primarily transportation and energy use in buildings and facilities; and
WHEREAS, in order to achieve carbon neutrality, existing sources of greenhouse gas emissions need to be substantially reduced or eliminated; and WHEREAS, California Health and Safety Code Sections 17958, 17958.5, 17958.7 and 18941.5 provide that the city of San Luis Obispo may make changes or modifications

Ordinance No. _____ (2025 Series) Page 2
O ______
to the building standards contained in the 2025 California Building Standards Code based upon express findings that such changes or modifications are reasonably necessary because of local climatic, geological or topographical conditions; and WHEREAS, Public Resources Code Section 25402.1 (h)(2) allows local agencies to adopt local amendments that are cost-effective and that result in buildings that use less energy than would otherwise be required by the California Energy Code; and WHEREAS, the California Energy Codes and Standards Statewide Utility Program, has determined specific modifications to the 2025 State Energy Code for each climate zone that are cost-effective; and that such modifications will result in designs that consume less energy than they would under the 2025 State Energy Code as required under California Administrative Code Chapter 10-106; and WHEREAS, based on the findings of these studies, the City finds the proposed local amendments to the 2025 California Energy Code to be cost-effective and consume less energy than permitted by Title 24, Part 6; and
WHEREAS, the 2025 California Energy Code offers compliance options that were established through the public rulemaking process of the code update; and WHEREAS, the Council expressly declares that the proposed amendments to the Energy Code are reasonably necessary because of local climatic, topological, and geological conditions; an
WHEREAS, the Council expressly declares that the proposed amendments are necessary to implement a local code amendment that is adopted to align with a general plan approved on or before June 10, 2025, and that permits mixed-fuel residential construction consistent with federal law while also incentivizing all-electric construction as part of an adopted greenhouse gas emissions reduction strategy; and WHEREAS, the requirements specified in this Ordinance were reviewed via public comment and through a publicly noticed public hearing process and were found to be cost-effective.

NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Purpose. It is the purpose and intent of this Ordinance to establish standards that exceed minimum 2025 Title 24 Part 6 requirements for single-family residential retrofits including major additions and alterations.

SECTION 2. Adoption. The local amendments to Part 6 of the City of San Luis Obispo Building Construction and Fire Prevention Code, 2023 (SLOMC Section

15.02.060) as specified in Exhibit A, are hereby adopted by the City of San Luis Obispo to be codified under Chapter 15.02.060 and Chapter 15.04.065. The Council hereby

Ordinance No. _____ (2025 Series) Page 3
O ______
adopts the recitals herein as separate and additional findings of fact in support of adoption of the ordinance.

SECTION 3. Severability. If any word, phrase sentence part, section, subsection or other portion of this amendment or any application thereof to any person or circumstance is declared void, unconstitutional, or invalid for any reason, then such word, phrase, sentence, part, section, subsection, or other portion, or the prescribed application thereof, shall be severable, and the remaining provisions of this amendment, and all applications thereof, not having been declared void, unconstitutional or invalid, shall remain in full force and effect.

SECTION 4. Findings. The City Council finds that:

1. Each of the changes or modifications to measures referred to therein are reasonably necessary because of local climatic, geological, or topographical conditions in the area encompassed by the boundaries of the City of San Luis Obispo, and the City Council adopts the following findings in support of local necessity for the changes or modifications:
a. San Luis Obispo is situated along a wildland-urban interface and has been identified as a Community at Risk from wildfire and is extremely vulnerable to wildfires and firestorms, and human activities releasing greenhouse gases into the atmosphere cause increases in worldwide average temperature, drought conditions, vegetative fuel, and length of fire seasonscontributing to the likelihood and consequences of fire. b. The City of San Luis Obispo is situated at the base of a watershed of the Santa Lucia Mountains and flooding of San Luis, Chorro, Stenner, Old Garden, and Brizzolara Creeks results in conditions rendering fire department vehicular traffic unduly burdensome or impossible, as witnessed in major floods that occurred in 1952, 1961, 1969, 1973, 1978, 1982, 1995, and 2023. Furthermore, flood conditions described above create the potential for overcoming the ability of the fire department to aid or assist in fire control, evacuations, rescues and other emergency task demands inherent in such situations. The resulting overburdening of fire department personnel may cause a substantial or total lack of protection against fire for the buildings and structures located in the City of San Luis Obispo. The afore-described conditions support the imposition of fire protection requirements greater than those set forth in the California State Building Standards Code and support the imposition of more restrictive requirements than set forth in the California Energy Code for the purpose of reducing the City's contributions to Greenhouse Gas Emissions resulting in a warming climate and related severe weather events. c. The aforementioned flood and rain events result in conditions wherein stormwater can inundate the wastewater treatment system as witnessed in major floods that occurred in 1952, 1961, 1969, 1973, 1978, 1982, and 1995. Furthermore, rain events and flood conditions described above create a condition referred to as Inflow and Infiltration (I/I) that allow rain and flood

Ordinance No. _____ (2025 Series) Page 4
O ______
waters to flow and/or seep into the wastewater system and overcome the ability of the wastewater collection system and Water Reclamation Facility (WRF) to convey and treat sewage. The resulting overburdening of the wastewater system can result in threats to public health, public and private property and water quality and violations and fines from the State of California, the Environmental Protection Agency (EPA) or others. To the extent that climate change has the potential to make these conditions worse, more restrictive Energy Code requirements to achieve reduced greenhouse gas emissions are necessary.
d. Seasonal climatic conditions during the late summer and fall create numerous serious difficulties in the control and protection against fire situations in the City of San Luis Obispo. The hot, dry weather in combination with Santa Lucia (offshore) winds has resulted in wildland fire history on the brush-covered slopes on the Santa Lucia Mountains, Cerro San Luis, Bishop Peak, and the High School Hill, and the South Hills areas of the City of San Luis Obispo. The aforementioned areas surround the City.

When a fire occurs in said areas, such as occurred in 1985 when the Los Pilitas Fire burned six days and entered the City and damaged many structures, the entirety of local fire department personnel is required to control, monitor, fight and protect against such fire situations in an effort to protect life and preserve property and watershed land. The same climatic conditions may result in the concurrent occurrence of one or more fires in the more populated areas of the City without adequate fire department personnel to protect against and control such a situation. Therefore, the above-described findings support the imposition of measures to increase the efficiency of existing buildings in the City to reduce greenhouse gas emissions.
e. Failure to address and substantially reduce greenhouse gas emissions creates an increased risk to the health, safety, and welfare of City residents.

2. The single-family residential energy standards imposed by this Ordinance are cost-effective, as supported by the "2022 Single Family Retrofit Statewide Cost Effectiveness Study" and the "2022 Applications to 2025 Energy Code Memo." cost effectiveness study and addendum prepared by the California Energy Codes and Standards Statewide Utility Program. Specifically, the City finds that there are at least four cost effective measure packages:
a. Package 1, installing the efficiency measure of R-30 Floor Insulation would save energy relative to the base code and would achieve a benefit to cost ratio of 2.3 on an on-bill basis.
b. Package 2, installing the efficiency measure of R-19 Floor Insulation would save energy relative to the base code and would achieve a benefit to cost ratio of 2.3 on an on-bill basis.
c. Package 3, installing a Heat Pump Water Heater (HPWH), would save energy relative to the base code and would achieve a benefit to cost ratio of 1.6 on a “Long-term System Cost” (LSC basis).

Ordinance No. _____ (2025 Series) Page 5
O ______
d. Package 4, installing a Heat Pump Space Heater, would save energy relative to the base code and would achieve a benefit to cost ratio of 4.2 on an LSC basis.

3. The standards imposed by this ordinance are consistent with AB 130 (2025) because they are necessary to implement a local code amendment that is adopted to align with a general plan approved on or before June 10, 2025, and that permits mixed-fuel residential construction consistent with federal law while also incentivizing all-electric construction as part of an adopted greenhouse gas emissions reduction strategy. Specifically, the standards imposed by this ordinance are on:
a. The standards imposed by this ordinance align with a General Plan approved on or before June 10,2025 as follows:
i. Land Use Element of the General Plan Policy 9.4 (Climate Action Plan) - The City shall maintain and implement its Climate Action Plan to reduce community and municipal greenhouse gas (“GHG”) emissions consistent with State laws and objectives.
ii. Land Use Element of the General Plan Policy 9.7 (Sustainable Design) - The City shall promote and, where appropriate, require sustainable building practices that consume less energy, water and other resources, facilitate natural ventilation, use daylight effectively, and are healthy, safe, comfortable, and durable.
iii. Conservation and Open Space Element of the General Plan Policy

2.2.1 (Atmospheric Change) - City actions shall seek to minimize undesirable climate changes and deterioration of the atmosphere’s protective functions that result from the release of carbon dioxide and other substances.
iv. Conservation and Open Space Element of the General Plan Goal 4.2 (Sustainable energy use) - Increase use of sustainable energy sources such as solar, wind and thermal energy, and reduce reliance on non-sustainable energy sources to the extent possible with available technology and resources.
v. Climate Adaptation and Safety Element of the General Plan Policy HE-4.3 (Green and Healthy Buildings) - The City shall support fuel switching retrofits (from fossil fuel to high-efficiency electric appliances), energy efficiency retrofits, and distributed energy resources as low-carbon solutions to create safe, cool, and healthy buildings and consider programs and projects that support these retrofits as critical to maintaining community safety and to supporting disaster preparedness.
b. The standards imposed by this Ordinance permit mixed-fuel residential construction consistent with federal law while also incentivizing all-electric construction. The single family and non-residential standards include cost effective compliance pathways for mixed-fuel and residential construction

Ordinance No. _____ (2025 Series) Page 6
O ______
and do not require equipment efficiencies greater than the federally mandated minimum efficiencies in accordance with the federal standards enacted under the Energy Policy and Conservation Act.
c. The standards imposed by this Ordinance implement an adopted Greenhouse Gas Emissions Reduction Strategy as follows:
i. The standards make progress towards the City’s Communitywide carbon neutrality by 2035 and a sub-goal of 50 percent reduction in emissions from existing buildings by 2030, as adopted in the Climate Action Plan for Community recovery (adopted 2020) and the 2023- 27 Climate Action Plan Work Program (adopted 2023).
ii. The standards implement the 2023-27 Climate Action Work Program Green Buildings Action 2.1.E, which directs staff to, “Develop an equitable framework for requiring electrification retrofits and develop cost effective building electrification policies for additions and alterations.”
SECTION 5. CEQA. This ordinance is categorically exempt from CEQA because it is an action taken by a regulatory agency for the purpose of protecting the environment (CEQA Guidelines Section 15308). In addition, this ordinance is exempt from CEQA under the general rule, 15061(b)(3), on the grounds that these standards are more stringent than the State energy standards, there are no reasonably foreseeable adverse impacts, and there is no possibility that the activity in question may have a significant effect on the environment. The following findings are made in support of these determinations:

1. The purpose of the implementation of a Reach Code is to reduce the amount of greenhouse gas emissions in the City of San Luis Obispo that are produced from buildings.

2. The Reach Code approval process requires that the City determines that the local standards will require buildings to use no more energy than current statewide requirements. Furthermore, the California Energy Commission approval process requires that the City make the findings as part of its approval process. Therefore, the Reach Code standards can only go into effect if they protect the environment by making buildings more efficient.

SECTION 6. The Chief Building Official is hereby authorized and directed to transmit a copy of this ordinance to the California Energy Commission and the California Building Standards Commission as required by California Health and Safety Code Section 17958.7.

SECTION 7. Violations. Violation of the requirements of this Ordinance shall be considered, at the City’s election, an infraction of the City of San Luis Obispo Municipal Code punishable by all sanctions prescribed in Chapter 1.12, or an administrative violation punishable as provided under Chapter 1.24.

Ordinance No. _____ (2025 Series) Page 7
O ______
SECTION 8. Effective Date. This Ordinance shall be effective as of January 1, 2026 and will be enforced upon approval by the California Energy Commission and the Building Standards Commission.

SECTION 9. Ordinance Summary. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage, but not before January 1, 2026. A copy of the full text of this ordinance shall be on file in the Office of the City Clerk on and after the date following introduction and passage to print and shall be available to any member of the public INTRODUCED on the ____ day of _____ 2025, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2025, on the following vote:

AYES:

NOES:

ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington, City Clerk

Ordinance No. _____ (2025 Series) Page 8
O ______
Exhibit A
Section 15.04.065
AMENDMENTS – ENERGY STANDARDS – ADDITIONS AND ALTERATIONS A. Adoption of Codes and Applicability
The effective date of this ordinance shall be January 1, 2026 and is applicable to existing single family residential buildings. The ordinance shall be enforceable upon approval from the California Energy Commission and the Building Standards Commission.

B. Add the following definitions to Subchapter 1, Section 100.1(b):

MAJOR ADDITION is any change to an existing building that increases conditioned floor area by 500 or more square feet in a one-year period.

TIER 1 MAJOR ALTERATION is any construction or renovation to an existing structure whose work valuation is $100,000 or more in a one-year period. A Tier 1 Major Alteration may include increased conditioned floor area in its work scope.

TIER 2 MAJOR ALTERATION is any construction or renovation to an existing structure whose work valuation is $200,000 or more in a one-year period. A Tier 2 Major Alteration may include increased conditioned floor area in its work scope.

C. Amend Section 150.0 SINGLE-FAMILY RESIDENTIAL BUILDINGS – MANDATORY FEATURES AND DEVICES to read as follows:

Single-family residential buildings shall comply with the applicable requirements of Sections 150.0(a) through 150.0(w).

D. Add new Section 150(w) to read as follows:
(w) Mandatory Requirements for Existing Building Additions and Alterations.

Existing Building Additions and Alterations shall meet the requirements of Items 1 through 3 below, as applicable:

1. Major Addition. Any Major Addition shall install a set of measures from the Measure Menu Table, Table 150.0-I to achieve a total score that is equal to or greater than 8. In addition, all mandatory measures listed in Table 150.0-I shall be installed. Measure verification shall be explicitly included as an addendum to the Certificate of Compliance to be filed pursuant to 2025 Title 24, Part 1, Section 10-103. Installed measures shall meet the specifications in Table 150.0-J.

2. Major Alteration. Any Tier 1 Major Alteration shall install a set of measures from the Measure Menu Table, Table 150.0-I to achieve a total score that is equal to or greater than 8. In addition, all mandatory

Ordinance No. _____ (2025 Series) Page 9
O ______
measures listed in Table 150.0-I shall be installed. Measure verification shall be explicitly included as an addendum to the Certificate of Compliance to be filed pursuant to 2025, Part 1, Title 24 Section 10-103. Installed measures shall meet the specifications in Table 150.0-J.

3. Electric Readiness. Any Major Addition and/or Major Alteration (Tier 1 and Tier 2) shall include electric readiness scope per 150.0(n)1.A.i through 150.0(n)1.A.iii or 150.0(n)1.b.i through 150.0(n)1.B.ii at a designated space that is suitable for the future installation of a heat pump water heater (HPWH).

Exception 1 to Section 150.0(w): The project is the result of a repair as defined by Title 24 Part 2 Section 202.

Exception 2 to Section 150.0(w): If compliance costs exceed 10% of total project valuation, or due to conditions specific to the project, it is technically infeasible to achieve compliance through any available set of measures, the applicant may request an exemption as set forth below. In applying for an exemption, the burden is on the applicant to show hardship or infeasibility.
(1) Application. Based on the following, the applicant shall identify in writing the specific requirements of the standards for compliance that the project is unable to achieve and the circumstances that make it a hardship or infeasible for the project to comply with this chapter. The applicant may not petition for relief from any requirement of the 2025 California Energy Code (Title 24, Part 6) and referenced standards, or the 2025 California Green Building Standards (Title 24, Part 11) of the California Building Standards Code. Circumstances that constitute hardship or infeasibility shall include one of the following:
i. That the cost of achieving compliance is disproportionate to the overall cost of the project (i.e., compliance exceeds 10% of total project cost);
ii. That it is technically infeasible to achieve compliance through any available set of measures.
iii. That strict compliance with these standards would create or maintain a hazardous condition(s) and present a life safety risk to the occupants.
(2) Granting of exemption. If the chief building official determines that it is a hardship or infeasible for the applicant to fully meet the requirements of this chapter and that granting the requested exemption will not cause the building to fail to comply with the 2025 California Energy Code (Title 24, Part 6) and referenced standards, or the 2025 California Green Building Standards (Title 24, Part 11) of the California Building Standards Code, the

Ordinance No. _____ (2025 Series) Page 10
O ______
chief building official shall determine the minimum feasible threshold of compliance reasonably achievable for the project. If an exemption is granted, the applicant shall be required to comply with this chapter in all other respects and shall be required to achieve the threshold of compliance determined to be achievable by the chief building official. (3) Denial of exemption. If the chief building official determines that it is reasonably possible for the applicant to fully meet the requirements of this chapter, the request shall be denied, and the applicant shall be notified of the decision in writing. The project and compliance documentation shall be modified to comply with the standards for compliance.
(4) Appeal. Any aggrieved applicant or person may appeal the determination of the chief building official regarding the granting or denial of an exemption or compliance with any other provision of this chapter. An appeal of a determination of the chief building official shall be filed in writing.

Exception 3 to Section 150.0(w): If the dwelling unit has previously installed measures from the Measure Menu, Table 150.0-I, and compliance can be demonstrated to the building official, then these measures shall not be required to be newly installed. If the dwelling unit has previously installed Electric Readiness measures per 150.0(n)1.A.i through 150.0(n)1.A.iii or 150.0(n)1.b.i through 150.0(n)1.B.ii, and compliance can be demonstrated to the building official, then these measures shall also not be required to be newly installed.

Exception 4 to Section 150.0(w): The applicant may request an exemption to any requirements of this chapter which would impair the historic integrity of any building listed on a local, state, or federal register of historic structures, as determined by the chief building official and as regulated by the California Historic Building Code (Title 24, Part 8). In making a determination of exemption, the chief building official may require the submittal of an evaluation by an architectural historian or similar expert.

Exception 5 to Section 150.0(w): An alteration that consists solely of seismic safety improvements.

Exception 6 to Section 150.0(w): An alteration that consists solely of roof and/or window projects.

Exception 7 to Section 150.0(w): When an addition or alteration results in the creation of a new residential unit, the square footage or project scope value of that unit shall not be counted towards “Major” addition or alteration threshold.

Exception 8 to Section 150.0(w): A Major Addition or Major Alteration to a residential unit constructed in 1992 or later shall only be required to install the electric readiness measures per section 150.0 (w)3.

Ordinance No. _____ (2025 Series) Page 11
O ______
E. Add new Table 150.0-I to read as follows:

Table 150.0-I: Measure Menu
Measures
Target Score
8 E1 – Lighting Measures Mandatory
E2 - Water Heating Package 2
E3 - Air Sealing 1
E4 - R-49 Attic Insulation 2
E5 - Duct Sealing 2
E6 - New Ducts + Duct Sealing 4
E7 - Windows 3
E8 - R-19 Floor Insulation 8
E9 - R-30 Floor Insulation 10
E10 - Heat Pump Water Heater (HPWH) –
Replacing Gas
12 E11 - Heat Pump Water Heater (HPWH) –
Replacing Electric
5 E12 - Heat Pump Space Heater 11
ER1 - Solar PV + Electric Ready Pre-Wire 13
Note: the measures in the Measure Menu table shall conform to the specifications in Table 150.0-J

O ______
F. Add new Table 150.0-J to read as follows:

Table 150.0-J: Measure Specifications
ID Measure Specification
Energy Efficiency Measures
E1 Lighting Measures – Install lighting with an efficiency of 45 lumens per watt or greater in all interior and exterior screw-in fixtures.

Install photocell controls or energy management systems on all exterior lighting luminaires consistent with current Title 24 section 150.0 (k)3 requirements for new single family residential buildings. Alternative means of exterior lighting timing controls, including smart home devices, may be approved.

E2 Water Heating Package: Add exterior insulation meeting a minimum of R-6 to existing storage water heaters. Insulate all accessible hot water pipes with pipe insulation a minimum of ¾ inch thick. This includes insulating the supply pipe leaving the water heater, piping to faucets underneath sinks, and accessible pipes in attic spaces or crawlspaces. Upgrade fittings in sinks and showers to meet current California Green Building Standards Code (Title 24, Part 11) Section 4.303 water efficiency requirements. Water heaters 20 gallons or less, or water heaters that are not able to add exterior insulation may not take credit for this measure.

E3 Air Sealing: Seal all accessible cracks, holes, and gaps in the building envelope at walls, floors, and ceilings. Pay special attention to penetrations including plumbing, electrical, and mechanical vents, recessed can light luminaires, and windows. Weather-strip doors if not already present. Compliance shall be demonstrated with blower door testing conducted by a certified Energy Code Compliance (ECC) Rater no more than three years prior to the permit application date that either: a) shows at least a 30 percent reduction from pre-retrofit conditions; or b) shows that the number of air changes per hour at 50 Pascals pressure difference (ACH50) does not exceed ten for Pre-1978 vintage buildings, seven for 1978 to 1991 vintage buildings and five for 1992-2010 vintage buildings. If combustion appliances are located within the pressure boundary of the building, conduct a combustion safety test by a professional certified by the Building Performance Institute in accordance with the ANSI/BPI-1200-S-2017 Standard Practice for Basic Analysis of Buildings, the Whole House Combustion Appliance Safety Test Procedure for the Comfortable Home Rebates Program 2020 or the California Community Services and Development Combustion Appliance Safety Testing Protocol.

E4 R-49 Attic Insulation: Attic insulation shall be installed to achieve a weighted assembly U-factor of 0.020 or insulation installed at the ceiling level shall have a thermal resistance of R-49 or greater for the insulation alone. Recessed downlight luminaires in the ceiling shall be covered with insulation to the same depth as the rest of the ceiling. Luminaires not rated for insulation contact must be replaced or fitted with a fire-proof cover that allows for insulation to be installed directly over the cover. In buildings where existing R30 is present and existing recessed downlight luminaires are not rated for insulation contact; insulation is not required to be installed over the luminaires.

E5 Duct Sealing: Air seal all space conditioning ductwork to meet the requirements of the 2022 Title 24 Section 150.2(b)1E. The duct system must be tested by an ECC Rater no more than three years prior to the alteration or addition permit application date to verify the duct sealing and confirm that the requirements have been met. This measure may not be combined with the New Ducts and Duct Sealing measure in this Table. Buildings without ductwork or where the ducts are in conditioned space may not take credit for this measure.

E6 New Ducts and Duct Sealing: Replace existing space conditioning ductwork with new R-8 ducts that meet the requirements of 2025 Title 24 Section 150.0(m)11. This measure may not be combined with the Duct Sealing measure in this Table. To qualify, a preexisting measure must have been installed no more than three years before the alteration or addition permit application date.

Ordinance No. _____ (2025 Series) Page 13
O ______
ID Measure Specification
E7 Windows: Replace at least 50% of existing windows with high performance windows with an area-weighted average U-factor no greater than 0.27.

E8 R-19 Floor Insulation: Raised-floors shall be insulated such that the floor assembly has an assembly U-factor equal to or less than U0.037, or shall be insulated between wood framing with insulation having an R-value equal to or greater than R-19.

E9 R-30 Floor Insulation: Raised-floors shall be insulated such that the floor assembly has an assembly U-factor equal to or less than U0.028, or shall be insulated between wood framing with insulation having an R-value equal to or greater than R-30.

E10 Heat Pump Water Heater (HPWH) Replacing Gas: Replace existing natural gas storage water heater with a heat pump water heater that meets the requirements of Section 110.3 and 150.2 (b) 1.H.iii.b.

E11 Heat Pump Water Heater (HPWH) Replacing Electric: Replace existing electric resistance storage water heater with a heat pump water heater that meets the requirements of Sections 110.3 and 150.2 (b)1.H.iii.b.

E12 Heat Pump Space Heater: Replace all existing gas and electric resistance space heating systems with an electric-only heat pump system that meets the requirements of Sections 110.2, 150.2(b)1.C, 150.2(b)1.E, 150.2(b)1.F, and 150.2(b)1.G.

Solar PV and Electric-Readiness Measures
ER1 PV and Electric Ready Pre-Wire: Install a solar PV system that meets the requirements of 2025 Title 24 Section 150.1(c)14.

In addition to the solar PV system, Include electric readiness components per:

A. One of:
a. 150.0(n)1.A.i through 150.0(n)1.A.iii, or
b. 150.0(n)1.B.i through 150.0(n)1.B.ii
B. 150.0(t)
C. One of
a. Energy Storage Systems (ESS) Ready, as specified in Section 150.0(s), or b. EV Charger Ready as specified in the California Green Building Code, Title 24, Part 11, Section A4.106.8.1,which otherwise applies to new construction.

O ______
G. Modify Section 150.2(a) ENERGY EFFICIENCY STANDARDS FOR ADDITIONS AND ALTERATIONS TO EXISTING SINGLE FAMILY RESIDENTIAL BUILDINGS to read as follows:

Additions. Additions to existing single-family residential buildings shall meet the requirements of Sections 110.0 through 110.9, Sections 150.0(a) through (n), (p), (q), (w) and either Section 150.2(a)1 or 2.

H. Modify Section 150.2(b) ENERGY EFFICIENCY STANDARDS FOR ADDITIONS AND ALTERATIONS TO EXISTING SINGLE FAMILY RESIDENTIAL BUILDINGS to read as follows:

Alterations. Alterations to existing single-family residential buildings or alterations in conjunction with a change in building occupancy to a single-family residential occupancy shall meet either Item 1 or 2 below.

1. Prescriptive approach. The altered component and any newly installed equipment serving the alteration shall meet the applicable requirements of Sections 110.0 through 110.9 and all applicable requirements of Sections 150.0(a) through (l), 150.0(m)1 through 150.0 (m)10, 150.0(p) through (q), and 150.0(w); and

2. Performance approach. The Energy Budget for alterations is expressed in terms of Long-term System Cost (LSC), and the altered component(s) and any newly installed equipment serving the alteration shall meet the applicable requirements of Subsections A, B, and C below.
a. The altered components shall meet the applicable requirements of Sections 110.0 through 110.9, Sections 150.0(a) through (l), Sections 150.0(m)1 through 150.0 (m)10, Sections 150.0(p) through (q), and Section 150.0(w). Entirely new or complete replacement mechanical ventilation systems as these terms are used in Section 150.2(b)1L, shall comply with the requirements in Section 150.2(b)1L. Altered mechanical ventilation systems shall comply with the requirements of Section 150.2(b)1M. Entirely new or complete replacement space-conditioning systems, and entirely new or complete replacement duct systems, as these terms are used in Sections 150.2(b)1C and 150.2(b)1Diia, shall comply with the requirements of Sections 150.0(m)12 and 150.0(m)13.

KEY TO JUSTIFICATION FOR AMENDMENTS
TO
TITLE 24 OF THE CALIFORNIA CODE OF REGULATIONS
FINDING 1
This amendment is justified because the City of San Luis Obispo is situated at the base of a watershed of the Santa Lucia Mountains and that flooding of San Luis, Chorro, Stenner, Old Garden, and Brizzolara Creeks results in conditions rendering fire department vehicular traffic unduly burdensome or impossible as witnessed in major floods that occurred in 1952, 1961, 1969, 1973, 1978, 1982, and 1995. Furthermore, flood conditions described above create the potential for overcoming the ability of the fire department to aid or assist in fire control, evacuations, rescues and other emergency task demands inherent in such situations. The resulting overburdening of fire department personnel may cause a substantial or total lack of protection against fire for the buildings and structures located in the City of San Luis Obispo. The afore-described conditions support the imposition of fire protection requirements greater than those set forth in the California State Building Standards Code.

FINDING 2
This amendment is justified because the aforementioned flood and rain events result in conditions wherein stormwater can inundate the wastewater treatment system as witnessed in major floods that occurred in 1952, 1961, 1969, 1973, 1978, 1982, and 1995.

Furthermore, rain events and flood conditions described above create a condition referred to as Inflow and Infiltration (I/I) that allow rain and flood waters to flow and/or seep into the wastewater system and overcome the ability of the wastewater collection system and Water Reclamation Facility (WRF) to convey and treat sewage. The resulting overburdening of the wastewater system can result in threats to public health, public and private property and water quality and result in violations and fines from the State of California, the Environmental Protection Agency (EPA) or others. The afore-described conditions support the imposition of code requirements more restrictive than those set forth in California State Building Standards Code.

FINDING 3
This amendment is justified because the City of San Luis Obispo is situated near three major faults each capable of generating earthquakes with a magnitude of 7.5. These are the San Andreas to the east of the City, the Nacimiento-Rinconada that crosses Hwy 101 north of the City then parallels the City to the east, and the Hosgri to the West.

Other faults of importance are the Huasna and West Huasna to the Southeast of the City, the San Simeon to the Northwest, and the Edna and Edna Extended faults which enter the southern areas of the City. In as much as these faults are included as major California earthquake faults, which are subject to becoming active at any time, the City of San Luis Obispo is particularly vulnerable to devastation should such an earthquake

occur. The potential effects include isolating the City of San Luis Obispo from the North and South due to the potential for collapsing of freeway overpasses or a slide on both the Cuesta and Ontario Grades and the potential for horizontal or vertical movement of the Edna fault rendering surface travel across the southern extremities of the city unduly burdensome or impossible. Additional potential situations inherent in such an occurrence include loss of the City's two main water sources (the Salinas and Whale Rock reservoirs), broken natural-gas mains causing structure and other fires, leakage of hazardous materials, the need for rescues from collapsed structures, and the rendering of first aid and other medical attention to large numbers of people. The protection of human life and the preservation of property in the event of such an occurrence support the imposition of fire protection requirements greater than those set forth in the California State Building Standards Code.

FINDING 4
This amendment is justified because the central commercial area in the City of San Luis Obispo consists of mixed conditions that create the potential for possible conflagration, including congested streets during the business day, numerous older buildings without adequate internal fire-resistivity, and contemporary low-rise buildings. Significant spread of fire in said area will actually exceed the fire suppression capabilities of regional firefighting personnel. The continued development of the San Luis Obispo commercial area and the current and potential development of high---rise buildings pose a substantial threat of fire to human life, public safety, and the preservation of property and support the imposition of fire protection requirements greater than those set forth in the California State Building Standards Code.

FINDING 5
This amendment is justified because the City of San Luis Obispo is bisected by a major freeway (Hwy 101), traversing in the north/south direction and a major highway (Hwy 1) traversing in an east/west direction. The City is also transected by a mainline railroad in the north/south direction. It is a frequent occurrence for the aforementioned highways and railway to support the transportation of hazardous materials. The potential for release or threatened release of a hazardous material along one of these routes is highly probable given the volume of material transported daily. Incidents of this nature will normally require all available emergency response personnel to prevent injury and loss of life, and to prevent as far as practicable, property losses. Emergency personnel responding to said incidents may be unduly impeded and delayed in accomplishing an emergency response as a result of this situation, with the potential result of undue and unnecessary risk to the protection of life and public safety, particularly in those buildings or structures without the protection of automatic fire sprinklers. The above-described- problems support the imposition of fire protection requirements greater than those set forth in the California State Building Standards Code.

FINDING 6
This amendment is justified because seasonal climatic conditions during the late summer and fall create numerous serious difficulties in the control and protection against fire situations in the City of San Luis Obispo. The hot, dry weather in combination with Santa Lucia (offshore) winds frequently results in wildland fires in the brush-covered slopes on the Santa Lucia Mountains, San Luis Mountain, and the Irish Hills areas of the City of San Luis Obispo. The aforementioned areas completely surround the City. When a fire occurs in said areas, such as occurred in 1985 when the Los Pilitas fire burned six days and entered the City and damaged many structures, the entirety of local fire department personnel is required to control, monitor, fight and protect against such fire situations in an effort to protect life and preserve property and watershed land. The same climatic conditions may result in the concurrent occurrence of one or more fires in the more populated areas of the City without adequate fire department personnel to protect against and control such a situation. Therefore, the above---described findings support the imposition of fire-protection requirements greater than those set forth in the California State Building Standards Code.

FINDING 7
This amendment is justified because, for the most part, the soils in the City of San Luis Obispo are medium to highly expansive in nature, and such soils may cause damage to foundations, structures and underground utilities if not properly mitigated through known construction techniques. Furthermore, a significant part of the City lies on hills and rolling topography subject to earth slides and movements and present problems to developments constructed in such areas due to surface water drainage and disposal.

The above-described conditions support the imposition of requirements more restrictive than those set forth in the California State Building Standards Code.

FINDING 8
Adoption of the Uniform Housing Code, the Uniform Code for the Abatement of Dangerous Buildings, the International Property Maintenance Code, and Chapter 1.24 of this code, it is hereby determined and found that the alternate abatement procedures and requirements contained in these codes are equivalent to those provided by the State Housing Law (CCR, Title 25). These codes provide minimum fire, life safety, and sanitary standards and administrative procedures for the maintenance of existing buildings.

FINDING 9
This To the extent an amendment is administrative in nature, they it does not constitute a “building standards” as defined by law, and therefore a finding of local necessity is not required.

15.04.010
(2026) Section BUILDING OFFICIAL AND FIRE CODE OFFICIAL DESIGNATED New Add Amend Delete Finding The Chief Building Official is hereby designated as the building official and code official for the City of San Luis Obispo. The Fire Chief is hereby designated as the fire code official for the City of San Luis Obispo.

Where the “authority having jurisdiction” is used in the adopted codes, it shall mean the building official or fire code official, as applicable. x 9

15.04.020
(2026) Section AMENDMENTS; BUILDING STANDARDS New Add Amend Delete Finding A 101.1 Title x 9
B 103.1 Creation of enforcement agency x 9
C 104.9.2 Alternate Means and Methods Fee x 9
D 104.10* Airspace subdivisions x 9
E 105.2 Building Items
1, 2, 5 Work exempt from permit x 3,7
F 105.3.2 Time limitation of application x 9
G 105.3.3 Plan review fees x 9
G 105.3.3.1 Retaining Walls x 9
G 105.3.3.2 Separate Fees x 9
G 105.3.3.3 Incomplete Submittals x 9
H 105.5.1* Expiration x 9
H 105.5.2 Code Violations Expiration x 9
I 105.7 Placement and Posting of Permit x 9
J 109.4 Work Commencing Before Permit Issuance x 9
K 109.4.1 Code Enforcement Investigation Fee x 9
L 111.3.1 Temporary Certificate of Occupancy Fee x 9
M 112.4 Underground utility services x 9
M 112.5 Storage of solid waste containers x 9
N 113.1 (Appeals) General x 9
N 113.2 Limitations on authority x 9
N 113.3 Qualifications x 9
O 113.5 Fees x 9
P 116.1 Unsafe Conditions* x 9

Q 202 Boarding House
x9
Q 202 Lot, Airspacex9
Q 202 Rainwater Harvesting Systemx
9 Q 202 Subdivision, Airspacex9
R 602.1.2 Commercial fire zonex9
S 705.12*
Exception 7 Item 7
x 1,3,4,5,6
T 903.1.1 Minimum Sprinkler Coveragex 1,3,4,5,6
U 903.1.1.1 New Buildingsx 1,3,4,5,6
U 903.1.1.2 Existing Buildingsx 1,3,4,5,6
U 903.1.1.3 Additionsx 1,3,4,5,6
U 903.1.1.4 Change of Usex 1,3,4,5,6
U 903.1.1.5 Buildings with Plasticsx 1,3,4,5,6
U 903.1.1.6 Floor Area Calculationx 1,3,4,5,6
V 903.3.1.1 NFPA 13 sprinkler systemsx 1,3,4,5,6
V 903.3.1.1.1 Exempt locationsx 1,3,4,5,6
W 903.3.9* Isolation control valvesx 1,3,4,5,6
X 903.4 Sprinkler system supervision and alarmsx 1,3,4,5,6 Y 905.3.1 Building Heightx 1,3,4,5,6
Z 907.6.6 Monitoringx 1,3,4,5,6
AA 910.3.2.1 Sprinklered buildingsx 1,3,4,5,6
BB 1506.3.1 Wood shake and shingle roof covering limitations. x6 CC 1612.3 Establishment of flood hazard areasx9
DD 1804.4.2 Drainagex 2,7
EE 1809.7.1 Depth of isolated footingsx7
FF Table 1809.7 FOOTINGS SUPPORTING WALLS OF LIGHT-FRAME

CONSTRUCTION
x7
GG 1907.1 Generalx7
GG 1907.2 Minimum reinforcingx7
GG 1907.3 Slab to foundation connectionx7
GG 1907.4 Moisture contentx7
GG 1907.5 Penetrationsx7
HH 3109.3 Access to poolx7
HH 3109.4 Lightingx7

HH 3109.5 Abandoned pools x 7
II G103.2 Establishment of flood hazard areas x 1,2,7
JJ G109 Title: "Buildings and Manufactured Homes" x 9
KK G109.1 Elevation x 7
LL G114.3 Elevation x 7
MM G114.6 Protection of mechanical and electrical systems x 1,3,4,5,6 NN J101.1 Scope x 7
OO J101.3 Hazardous conditions x 7
OO J101.4 Dust control x 7
OO J101.5 Emergency grading x 7
OO J101.6 Special grading standards x 7
OO J101.7 Approval for building construction x 7
PP J102 AVERAGE CROSS SLOPE x 7
PP J102 WATERWAY x 7
QQ J103.1 Permits required x 7
QQ J103.2 Exempted Work x 7
QQ J103.3 Early grading x 7
QQ J103.4 Bonds x 7
RR J104.2 Site plan requirements x 7
SS J110.1 General x 7
TT Table J101.6 GRADING TO REMAIN IN NATURAL STATE x 7

15.04.025
(2026) Section AMENDMENTS; RESIDENTIAL STANDARDS New Add Amend Delete Finding A R109.1.2 Exception
2 Exception x 9
B R301.2(1) DESIGN CRITERIA x 9
C R309.3.3.5* Sprinkler Activation Alarm x 1,3,4,5,6
D R306.1* General x 1,4
E R403.1 Foundations x 3,7

15.04.030
(2026) Section AMENDMENTS; ELECTRICAL STANDARDS New Add Amend Delete Finding A 230.70(A)(1) Readily Accessible Location X 9

15.04.040
(2026) Section AMENDMENTS; MECHANICAL STANDARDS New Add Amend Delete Finding

A 104.3.2 Plan Review Fees X 9
B 104.4 Permit Issuance X 9
C 104.5 Delete table X 9
C 104.5 Fees X 9
D 105.2.6 Reinspections X 9

15.04.050
(2026) Section AMENDMENTS; PLUMBING STANDARDS New Add Amend Delete Finding A 104.3.2 Plan Review Fees X 9
B 104.4 Permit Issuance X 9
C 104.5 Delete table X 9
C 104.5 Fees X 9
D 105.2.6 Reinspections X 9
E 314.4 Excavations X 7
F 715.2 Joining Methods and Materials X 2,7
G 1101.3.1 Rainwater Harvesting X 9
H 1601.3, Exceptions Exceptions X 9

15.04.090
(2026) Section AMENDMENTS; FIRE PREVENTION STANDARDS New Add Amend Delete Finding A 101.1 Title X 9
B 103.1 Creation of agency X 9
C 112* Board of appeals established* X 9
D 113.4* Violation penalties* X 9
E 114.4* Failure to comply* X 9
F 202 Sky Lantern X 9
G 302.2 Hazardous fire area X 9
H 305.6 Designation of territory as hazardous fire area by the Fire Chief X 9 H 305.6.1 Posting of notices X 9
H 305.6.2 Limitation on smoking or building campfires X 1,3,4,5,6 H 305.6.3 Order closing area to entry; Exceptions; Enforcement X 9 I 307.1.1 Prohibited open burning X 1,3,4,5,6
I 307.2 Permit required X 1,3,4,5,6

J 307.4.1 Bonfires X 1,3,4,5,6
J 307.4.2 Recreational fires X 1,3,4,5,6
K 308.1.7* Sky lanterns* X 1,3,4,5,6
L 405.8 Initiation X 9
M 503.1.1 Buildings and facilities X 1,3,4,5,6
M 503.1.2 Additional access X 1,3,4,5,6
N 503.2.2 Authority X 9
O 503.2.5 Dead Ends X 1,3,4,5,6
P 503.4.1 Traffic calming devices X 1,3,4,5,6
Q 505.1 Address numbers X 9
R 507.2 Type of water supply X 1,3,4,5,6
S 507.5.1 Where required X 1,3,4,5,6
T 507.5.4.1 Authority to remove obstruction X 1,3,4,5,6 U 605.1.3 Fuel Oil X 1,3,4,5,6
V 605.9 Gas meters X 1,3,4,5,6
W 901.4.2 Nonrequired fire protection systems X 1,3,4,5,6 W 901.4.5 Additional fire protection systems X 1,3,4,5,6 X 901.6 Inspection, testing and maintenance X 1,3,4,5
Y 903.2 Where Required X 1,3,4,5,6
Z 903.2.10 Sprinkler Protection Requirements for Parking Garages Associated with Electric Vehicle Charging Stations X X 3,4
AA 903.2.22 Existing buildings in commercial fire zone X 1,3,4,5,6 AA 903.2.23* Notification X 9
BB 903.3.1.1 NFPA 13 sprinkler systems X 1,3,4,5,6
BB 903.3.1.1.1 Exempt locations X 1,3,4,5,6
CC 903.4 Sprinkler system supervision and alarms X 1,3,4,5,6 DD 903.4.3 Isolation Control Valves X 1,3,4,5,6
EE 905.3.1 Height X 1,3,4,5,6
FF 907.6.6 Monitoring X 1,3,4,5,6
GG 910.3.2.1 Sprinklered buildings X 1,3,4,5,6
HH 1207.1.1.1 Hazardous electrolyte thresholds X 9
II 2306.2 Method of storage X 1,3,4,5,6
II 2306.2.6 Delete section X 1,3,4,5,6
JJ 2306.2.3(3) Above-ground tanks located outdoors, above grade X 1,3,4,5,6

KK 2306.2.4 Above-ground tanks located in above-grade vaults or below-grade vaults X 1,3,5,6
KK 2306.2.4.1 Tank capacity limits X 1,3,5,6
KK 2306.2.4.2 Delete section X 1,3,5,6
LL 2306.2.6, Items 1
and 6 Special enclosures X 1,3,4,5,6
MM 3307.1* Required access X 9
NN 5601.1 Scope X 1,3,4,5,6
NN 5601.1, exceptions
11 and 12 Add exceptions X 1,3,4,5,6
OO 5702 Add Definitions X 1,3,4,5,6
PP 5704.2.7 Design, fabrication and construction requirements for tanks X 1,3,4,5,6 PP 5704.2.7.5.8 Over-fill prevention, delete exception X 1,3,4,5,6 QQ 5704.2.8.3 Secondary containment X 1,3,4,5,6
RR 5704.2.8.11.1 Monitoring and detection X 1,3,4,5,6
SS 5704.2.9 Above-ground tanks outside of buildings X 1,3,4,5,6 TT 5704.2.13.1.4 Tanks abandoned in place X 1,3,4,5,6
UU 5706.2.4 Permanent and temporary tanks X 1,3,4,5,6
VV 5706.2.5 Type of tank. X 1,3,4,5,6
WW 6104.2 Maximum capacity within established limits X 1,3,4,5,6 XX B105.1 One- and two-family dwellings X 1,3,4,5,6
XX Table B105.1(1) Amend table title X 1,3,4,5,6
YY B105.2, Exception Buildings other than one- and two-family dwellings X 1,3,4,5,6 ZZ D103.1 Access Road width with a hydrant X 1,3,4,5,6
ZZ Exception to Figure
D103 1 Add exception to figure X 1,3,4,5,6
ZZ Figure D103.1 Amend figure X 1,3,4,5,6
AAA D103.4 Dead ends X 1,3,4,5,6

AAA Table D103.4 Amend table X 1,3,4,5,6
BBB D103.6 Signs X 1,3,4,5,6
BBB D103.6.1 Roads less than 28 feet in width X 1,3,4,5,6 BBB D103.6.2 Roads 28 or greater feet in width X 1,3,4,5,6 CCC D104.1 Buildings exceeding three stories or 30 feet in height X 1,3,4,5,6 DDD D104.2, Exception Buildings exceeding 62,000 square feet in area X 1,3,4,5,6 EEE D105.2 Width X 1,3,4,5,6
FFF D106.1 Projects having more than 100 dwelling units X 1,3,4,5,6 GGG D106.2 Projects having more than 200 dwelling units X 1,3,4,5,6 HHH D107.1 One- or two-family dwelling residential developments X 1,3,4,5,6 HHH D107.1, Exception 1 Delete exception X 1,3,4,5,6

15.04.100
(2026) Section AMENDMENTS; EXISTING BUILDING STANDARDS New Add Amend Delete Finding A A101.1 Purpose X 9
B A102.1 General X 9
B A102.1 Add exception X 9
C A103 LEVEL A STRENGTHENING X 3,7
C A103 LEVEL B STRENGTHENING X 3,7
D A109.2 Selection of Procedure X 9
E A115 Administrative Provisions X 9
E A115.1 Compliance Requirements X 9
E A115.1.1 Strengthening deadlines X 9
E A115.1.2 Permits X 9
E A115.1.3 Posting of sign X 9
E A115.2 Notice and Order X 9
E A115.2.1 General X 9
E A115.2.2 Service of notice and order X 9
E A115.2.3 Content of notice and order X 9
E A115.3 Appeal X 9

E A115.4 Recordation X 9
E A115.5 Enforcement X 9
E A115.6 Program monitoring and annual report X 9
E A115.7 Automatic Fire Sprinkler Systems X 1,3,4,5,6
F Appendix F* Demolition and Moving of Buildings X 9
F F101* General X 9
F F101.2* Scope X 9
F F101.3* Appeals X 9
F F102* Definitions X 9
F F103* Permit Requirements X 9
F F103.1* Permit required X 9
F F103.2* Moving and Relocation of Buildings X 9
F F103.2.1* Inspection of buildings to be moved X 9
F F103.2.2* Transportation and building permits required X 9 F F103.3* Procedure for permit application processing X 9 F F103.4* Guarantee X 9
F F103.5* Indemnity X 9
F F103.6* Damage to public property X 9
F F103.7* Insurance X 9
F F103.8* Disconnecting service lines X 9
F F104* Public Safety Requirements X 9
F F104.1* General X 9
F F104.2* Dust and debris X 9
F F105* Removal of Materials X 9
F F105.1* General X 9
F F105.2* Foundations X 7
F F105.3* Completion X 9

15.04.130
(2026) Section AMENDMENTS; PROPERTY MAINTENANCE STANDARDS New Add Amend Delete Finding A ALL Reference to Code X 9
B 101.1 Title X 9
C 102.3 Application to Other Code X 9
D 103.1 Creation of enforcement agency X 9

E 109.2.2* Closed structures method X 9
F 109.4* Notice X X 9
G 109.7* Posting and Placarding* X 9
H 201.3 Terms defined in other codes X 9
I 202 CODE OFFICIAL X 9
J 302.1 Sanitation X 9
K 302.3 Sidewalks and driveways X 9
L 302.4 Weeds X 9
M 303.2 Enclosures X 9
N 304.14 Insect Screens X 9
O 307.1 General X 9
P 309.1, 309.2, 309.5 Infestation X X 9
Q 602.2 Residential occupancies X 9
R 602.3 Residential occupancies X 9
S 602.4 Occupiable work spaces X 9

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.

Copyright 2024, 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 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 costeffectiveness 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 costeffective 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.

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 California Energy Codes & Standards | A statewide utility program 2024-04-25 Page 455 of 551

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 OnBill 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 costeffectiveness where some HPWH measures are cost-effective under SMUD utility rates but are not costeffective anywhere under PG&E rates in Climate Zone 12. a. Various HPWH locations were also explored, however there are some factors outside of costeffectiveness 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).

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 California Energy Codes & Standards | A statewide utility program 2024-04-25 Page 456 of 551

Cost -Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
3 new initiatives to obtain current costs including the TECH Clean California program1 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 costeffectiveness. 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 Page 457 of 551

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 costeffective, 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-A4). 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 Program5 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 Page 458 of 551

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, 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.

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 Page 459 of 551

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 CostEffectiveness Results for a graphical depiction of climate zone locations).

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/.

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 Page 460 of 551

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 Page 461 of 551

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 costeffective, 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 Page 462 of 551

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 Page 463 of 551

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 costeffective immediately (i.e., upfront construction cost savings and lifetime energy cost savings), B/C ratio costeffectiveness is represented by “>1”.

California Energy Codes & Standards | A statewide utility program 2024-04-25 Page 464 of 551

.

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
𝐴𝐴 (𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑐𝑐𝑜𝑜 𝑏𝑏𝑏𝑏𝐴𝐴𝑏𝑏𝑏𝑏𝑏𝑏𝑐𝑐)𝑡𝑡 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 costeffectiveness 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 Utility 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-meteringnem/nemrevisit/nbt-model--12142022.xlsb 8 https://www.cpuc.ca.gov/nemrevisit
California Energy Codes & Standards | A statewide utility program 2024-04-25 Page 465 of 551

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 costs11.

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 airsealing. 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/demandflexibility-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 Page 466 of 551

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-ft2-°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 Page 467 of 551

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 Page 468 of 551

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 Page 469 of 551

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 AFUE13. 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 Page 470 of 551

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 Page 471 of 551

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 Page 472 of 551

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 products on the market today. According to NEEA all major HPWH manufacturers are represented in NEEA’s qualified product list17 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 Page 473 of 551 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 Page 474 of 551

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 Page 475 of 551

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 Page 476 of 551

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 Page 477 of 551

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 costeffectiveness 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 Page 478 of 551

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 Page 479 of 551

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 Page 480 of 551

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 Page 481 of 551

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 Page 482 of 551

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
Firstyear
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
Firstyear
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 Page 483 of 551

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 Page 484 of 551

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 Berkeley20 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 Page 485 of 551 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 Page 486 of 551

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 costeffectiveness 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 costeffectiveness 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 costeffective 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 costeffective 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 Page 487 of 551

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 OnBill 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 costeffectiveness where some HPWH measures are cost-effective under SMUD utility rates but are not costeffective anywhere under PG&E rates in Climate Zone 12. a. Various HPWH locations were also explored, however there are some factors outside of costeffectiveness 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 program21 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 costeffectiveness. 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/demandflexibility-rulemaking California Energy Codes & Standards | A statewide utility program 2024-04-25 Page 488 of 551

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.

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). 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 Page 489 of 551

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).

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 Program25 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 Page 490 of 551

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-affairsdivision/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/cgibin/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/cgibin/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-RESHVAC-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 Page 491 of 551 -
lding Climate Zones
California, 2017
cJ Building Climate Zones
[] County Boundary
SOurc.. C.~omll Ene,gyCOmmCost 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 Page 492 of 551

-
2023 Electric California Climate Credit Schedule
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 Natural Gas California 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/californiaclimate-credit California Energy Codes & Standards | A statewide utility program 2024-04-25 Page 493 of 551

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 Page 494 of 551 -
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
Baseline Summer
Territories (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 Page 495 of 551 -
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-USE (PEft/K PRICING 4 - Q, p.m. EVERY DAY) RATES:
(Cont'd.)

E-TOU-C TOTAL BUNDLED RATES
Total 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 amount applies. lhe customer's bill will equal lhe• sum of ( 1) the delivery minimum bill amounl plus (2) for bundled servic:e, the generation rate times the number of kWh used. For revenue• accounting purposes. lne r·evenues from the delivery minimum billl amounl will be assigned lo the Transmission. Transmission Rate Adjustments. Reliability Services, Public Purpose P, ograms, Nuclear Ole-commissioning, Competition Transition Charg:es, Energy Cost Recovery Amou:nl. W ildfire Fund Charge, and New System Gene,ralion Charges based on kWh usage limes the corresponding unbundled rate, component per kWh, w'ith any residual revenue assigned 1o Disb:ibution.
• Pursuant to D.23-02-014. disbursement of the April 2023 residential Climate Credit shall begin by March 1. 2023.

Advice
Decision
7009-E Issued by
Mereruth Allen
Vice President, Regulatory Affaint
Submitted
Effective
Resolution
(Continued)
August 25. 2023
September 1, 2023
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 42 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25 Page 496 of 551 -
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
Disuibtiti'on•it:

Surmruor (d u•oge) $0.17029
w .,1e;r 1• u••ge) $0.11618
ConH•rv..tion ln<Hlli-.. Adjus'lnmnl (&...tino Usage)
Consl!'JV>dioo lnc:l!'llliY<I Adjustrruont (Ow!r B.uelin" I.Jsa!ll") Transmi u iod (al " ""9") Transmission llbrte AIIJu!ltmenls" (all usa;a) 'Reli;abiltiy Se-rviioes ' (all usa,~)
Public PulJ>Ose P.ograms (al usage>
'Ml,cl9r Decommis sionin9 1• u•"9")
C'ampetman Transili0<1 Charges (211 usage)
'En"'V)' Cosl ROGOYK)' Amount (all usagr,)
Wildfire FtJnd Ch..-g,e (aD usage)
New Sys'!=> G=-erall0t1 Cb..-90 (all ..,_.,9"r' Wildfire H;udonlng Ch;u-ge {all U5"!11!) Reconry IBond Ch..-ge (•II usztgel
Rec:onrylBond Credit (a l u•ag•)
Bundlod P,owK Charg1t lncll~, enc-e Adjustmoenl (all u.age)""" (I)
(I)
W.13432:
$0.12 41 3-
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. llistrilution 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,., ""'plicable V°"1laged Power Clmrge lndi!ll!femc., Adjus11111!nl.. Gen""'51ion "r>:f Bur>:fled PCIA are mmbilllkl far pr6"'tt:ation 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 Page 497 of 551 -
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 QUALIFYING ELECTRIC TECHNOLOGIES RA TES:(Cont'd.)

TOTAL BUNDLED RATES
Base Services Charge (S per meter per day) $0.49281
Total Energy Rates ($ per kWh) PEAK PART-PEAK OFF-PEAK
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 $0.08619
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 $0.00135 $0.00135 Competition Transition Charges (all usage) $0.00030 $0 00030 $0.00030 Energy Cost Recovery Amount (all usage) ($0.00071) ($0.00071) ($0.00071) 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) ($0.00528) Bundled Power Charge Indifference $0 01309 $0 01309 $0.01309 Adjustment (all usage)* ..

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

Distribution and New System Generation Charges are combined for presenlation on oustomer bills.

Direct Access, Community Choice Aggregation and Transitional Bundled Service Customers pay the applica·ble Vintaged Power Charge Indifference Adjustment. Generation and Bundled PCIA are combined for presenlation 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 Page 498 of 551 -
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.

Transitional 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
December 1, 2022
Cost Effectiveness Analysis: Existing Single Family Building Upgrades 45 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25 Page 499 of 551 -
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 CALIFORNIAALTERNATE RAT1ES FOR ENERGY (CARE)

CUSTOMERS
APPUCABILHY: This sclledule is applicable to single-phase andl polyphase residential service in single.family dwellings and in flats and apantments separately metered by PG&E and domestic submetered tenants residing in multifamily accommodations, mobi!ehome parks and to q,ualifying recreational ·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 (CARE) under the eligibility and certification 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 sclledule has no Delivery Minimum Bill Amount (Schedul e E-El EC) will receive a CARE percentage disooont of 35.000% on ·their total bundled dlarges (except tor ihe California Climate Credit, which will no! be d'iscounted). Customers takil)Q service on this rate schedule whose otherwise 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 bundled charges on ,their otherwise 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 amount. ,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 cllarges . 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-metered customers and to, qualified sub-metered tenants where the master-meter customer i s join1fy served under PG&Es Rate Sclledule 0- CARE and either Schedule EM. ES. ESR. ET. ,or EM-TOU.
for master-metered customers where one or more of t he submetered tenants qualffie-s. for CARE rates under the eligibility and certifi.celion criteria 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 the numbe:r of CARE unfts divided by lhe lotall number ot unils. In addition, m aster-metered customers eligible for D-CARIE will receive· a percentage discount ("O" below) on the delivery minimum biD amount. if applicable.

Iii is the responsibility of the master-metered customer to advise PG&E within 15 days following any chall!Je in the number of dweOing units andfor any decrease· in ihe num ber of qualifyill!J CARE e,pplicants that results when such applicants move out of their su'.bmetered or ncn-submetered dwelfing unit. or ·submeter,ed permanent-residence 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 Page 500 of 551 -
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, California
ELECTRIC SCHEOU l E D-CARE Sheet 2
LINE-ITEM DISCOUNT FOR CALIFORNIA .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-CARE 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 APPLICABLE SCHEDULE: The Special Cond[ti<lns of t he Ou.stomer's otherwise applicable 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 cerlificalion requirements I1-lereof to the s.alisfacticm of PG&E. Qualifying Direct Access. CommYnity Choice Aggregation, SeN ice. and Transitional Bundled Service customers are also eligible to take s.ervice on Sdled'ule D-CARE.

Applicanls may q11alifyfor D-CARE at their primary residence ,onl'y. Customers or sub-metered tenants participating in the Family Electric Rate Assistance {FERA) program cannot concurrently participate 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 Page 501 of 551

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

17.2 179
11 .4 8.8

12.6 9 8

16.5 12.4
18 9 15.8

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)
AllDaily kWh Electric
Baseline Region Number Allocation Allocation
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 Page 502 of 551 -
rn Cslifomis Edison
Ros,emead. Caritomia (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

DOMESTIC
(Continued)
Sh eet 2
Customers receiving service under ihis Schedule 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 Ch arges will apply to all energy usage during CPP Event Energy C harge periods alld CPP Non,-Event Energy 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 described 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 ..... ll )"" ~ • $Jday "!lmv·• lf' mlly A--=t .. c:• 0 . 1 rs
1M 1. fb-F md)' R--=t_.c::• 0 . 1 tS
C.bfam .. ,'tt r: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
111,00) ►
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 800Ct►
ouooou
oilOOOo
( 0 .'l !li l 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~ SQlamonl, 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
Michael Backstrom
~ ice President
(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 Page 503 of 551 -
" - 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/Meter/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 Submeler Credit - S/Mell'JiDay (0. 111) (R)
Caifomia Climate Credit '
0 (71.00)
Caifomia 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-Event Credit
On.Peak Energy Credit - $/kWh
Maximum AY&ilable Credit - $/kWh"••
Summer 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

0.08630 (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 Comnunity 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 Special Caiciticn ct this Schedule.
4 Applied on an equal basis. per household, semi-annually. See the Special 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 Page 504 of 551 -
Caflfomia Edison Revised Cal. PUC Sheet N'o. 85618-E
Rosemead, California (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

APPLICABILITY
Applicable to domestic service to CARE househofds residing in a pennartenl Single-Family Accommodation DI' Mul1ifami ly Accommodation where the customer meels all the Special Col'\di:tions of this Schedule. Customers 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 Califomia Clunate Credit as shown in t he Rates section below.

JEBBIIPBY
Wrthin the entire territory s&Ved.

The applicable charges set forth in Schedufe D shall apply to Customers 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 Commission Reimburs.emenl Fee (PUCRF) artd any applicable user fees. 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'large 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 Page 505 of 551

-
utliern California Gas Company
Residential Rates
NoY-23
Procurement Transponallon N&w Rate New Rate Absolute
Customer Type Commodity 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 Page 506 of 551

-
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 Page 507 of 551 -
,.,,,,..'E
San Diego Gas & Electric Campany
S•n Diego. Calif"'".,
Totell Rates:

Description - JOU DR1
Summer:

On,Pe,k
Olf0Peok
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
Off0Peok 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
1172 ►
taii1T11Jm Bill ($/day) 0.190
Note:

Revised CaL P.U.C. Sheet No.

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

SCHEDULE 10ll-OR1
RESIOENrTIAl TIME-OF-USE
lJOC Total Rau DWR IBC• E:ECC IR.ato ♦
Wl'.t.lBC DWR Cn,dat

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 0.52141
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.aiier11) 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 banefils 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 Page 508 of 551 -
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 Page 509 of 551 -
....,.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 Schedule EV-TOU-5.

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

TERRITORY
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

0.48129 I

0.15351 I

0.51149 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 Page 510 of 551 -
....,,/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-UPPP) 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 billings 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 Page 511 of 551 -
-f
s.., Die90 Gas & Elecliic; Cttnpan)'
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 ELECTRIC VEHICUES. ENERGY STORAGE.

OR !ELECTRIC HEAT Pll!Jt.tPS
ARPLICABILllY
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 appliance (HRA) al 11\e customer's premises; 2) have a bahindlhe-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 criteria ,as wel as quality for lhe California 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-8LEC-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 sdledule 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-ARR.
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
TRate

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 Page 512 of 551 -
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.

SCHEDULE TOU-ELEC
37196-E
Sheet 2
DOMESTIC TIME-OF-USE FOR HOUSEHOLDS Wllll ELEC1RIC 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
Summer - 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 1
-· 6.00
Summer -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 0:32013 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:!,ntifrod 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 Page 513 of 551 -
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-ELEC • 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-ELEC • 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 0.00153
0,02546 0.00007 0.00153
0,02546 0.00007 0.00153
0,02546 000007 0.00153
0·,02548 000007 0.00153
0,02548 000007 0.00153

PPP ND CTC

0.02548 0•.00007 0.00153

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
(Cootlnuedl
l~!IUl!d by
LGC RS

0.01383 0.00000

0.01383 0.00000

0.01383 0.00000

0.01383

0.01383

0.01383
ILGC

0.01383

0.01383

0.01383

0.01383

0.01383
0,01383
1LGC

0.01383

0.01383

0.01383

0.01383

0.01383

0.01383

0.00000

0.00000

0.00000
R:S

0.00003

0.00003

0.00003

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

0.00000

0.00000

0.00000

0.00000
TRAC

0.00000

0.00000

0.00000

0.00000

0.00000

0.00000
TRAC

0.00000

0.00000

0.00000

0.00000

0.00000

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

0.22228

0.22228

0.22228

0.22228

0.22228

0.22228
UDC
Toial

16..00

0.22161!

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 Page 514 of 551 -
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-UPPP) 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 andAprli 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 Novernber 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 Page 515 of 551 -
•1111111/E Revised Cal. P.U.C. Sheet No.

San Diiago Gas & Electric Company
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.

TERRITORY
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% Discount
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 !Initiative (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 Page 516 of 551

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 Page 517 of 551 -
. APPLICABILITY:

RESIDENTIAL ELECTRJC SERVICE
UTILITY RATE SCHEDULE E-1
This Rate Schedule applies to separately metered single-family 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 shall 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

OCITYOF

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 Page 518 of 551 -
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/ 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$/lH~
Off.Peak SIi H"'
Summer SrbOd (June-• Sep1mftr}
S~'Jltrd lntrascrucru.rt fi.1.-ed('kartt pb' "'°'1tA pn-mnu ll« lril"i.l~ 11'11(t.t Cliara.e
P.,l$/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-<lay 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 details 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 Participation in MnliCJiJ Equipment Di~ unt a nd Encr-gy Assi!!itance Pl"o-gr:iim Rate. Refer lo Rate Schedule MED.

SACRAMENTO MUNICIPAL UTILITY DISTRICT
Resolution No. 23-09.09 adopted September 21 , 2023
Sheet No. R-TOD-2
Effective: September 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 Page 519 of 551 -
. 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.

Summe: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-Sommer 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 Page 520 of 551 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 Page 521 of 551 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 Page 522 of 551

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 Page 523 of 551