Att 5 - 2022 Non-residential New Construction Reach Code Cost-effectiveness Study

Last modified: 2023/06/20
Revision: 1.1
2022 Cost-Effectiveness Study:

Multifamily New Construction
Prepared by:

Frontier Energy, Inc
Misti Bruceri & Associates, LLC
Prepared for:

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

-
Cost Effectiveness Analysis: Multifamily New Construction Legal Notice
This report was prepared by Pacific Gas and Electric Company and funded by the California utility customers under the auspices of the California Public Utilities Commission.

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

Acronym List
2023 PV$ – Present value costs in 2023
ACH50 – Air Changes per Hour at 50 pascals pressure differential ACM – Alternative Calculation Method
ADU – Accessory Dwelling Unit
AFUE – Annual Fuel Utilization Efficiency
B/C – Lifecycle Benefit-to-Cost Ratio
BEopt – Building Energy Optimization Tool
BSC – Building Standards Commission
CA IOUs – California Investor-Owned Utilities
CASE – Codes and Standards Enhancement
CBECC-Res – Computer program developed by the California Energy Commission for use in demonstrating compliance with the California Residential Building Energy Efficiency Standards 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
DHW – Domestic Hot Water
DOE – Department of Energy
DWHR – Drain Water Heat Recovery
EDR – Energy Design Rating
EER – Energy Efficiency Ratio
EF – Energy Factor
GHG – Greenhouse Gas

-
Cost Effectiveness Analysis: Multifamily New Construction HERS Rater – Home Energy Rating System Rater
HPA – High Performance Attic
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 – kilo-British thermal unit
kWh – Kilowatt Hour
LBNL – Lawrence Berkeley National Laboratory
LCC – Lifecycle Cost
LLAHU – Low Leakage Air Handler Unit
VLLDCS – Verified Low Leakage Ducts in Conditioned Space MF – Multifamily
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
ZNE – Zero-net Energy

-
Cost Effectiveness Analysis: Multifamily New Construction Summary Of Revisions
Date Description Reference (page or section)
2/28/2022 Original Release N/A
6/20/2023 Minor revisions to content; no change to results 2, 3, 32, 33

-
Cost Effectiveness Analysis: Multifamily New Construction

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

2.1 Analysis for Reach Codes..................................................................................................................................................... 5

2.1.1 Modeling ....................................................................................................................................................................... 5

2.1.2 Cost-Effectiveness ........................................................................................................................................................ 5

2.1.3 Utility Rates................................................................................................................................................................... 6

2.2 2022 T24 Compliance Metrics .............................................................................................................................................. 8

2.3 Greenhouse Gas Emissions ................................................................................................................................................. 8 3 Prototypes, Measure Packages, and Costs ..........................................................................................................10

3.2 Measure Definitions and Costs ........................................................................................................................................... 12

3.2.1 Efficiency, Solar PV, and Batteries ............................................................................................................................. 12

3.2.2 All-Electric................................................................................................................................................................... 16

3.3 Measure Packages ............................................................................................................................................................. 19 4 Results......................................................................................................................................................................21

4.1 All-Electric Prescriptive Code.............................................................................................................................................. 21

4.2 All-Electric Plus PV ............................................................................................................................................................. 24

4.3 Mixed Fuel Efficiency .......................................................................................................................................................... 26

4.4 Mixed Fuel Plus PV (Plus Battery for the 3-Story Prototype) .............................................................................................. 27

4.5 CARE Rate Comparison ..................................................................................................................................................... 30

4.6 Greenhouse Gas Reductions.............................................................................................................................................. 31 5 Summary ..................................................................................................................................................................33 6 References ...............................................................................................................................................................35 7 Appendices ..............................................................................................................................................................37

7.1 Map of California Climate Zones......................................................................................................................................... 37

7.2 Utility Rate Schedules......................................................................................................................................................... 38

7.2.1 Pacific Gas & Electric.................................................................................................................................................. 39

7.2.2 Southern California Edison ......................................................................................................................................... 44

7.2.3 Southern California Gas.............................................................................................................................................. 47

7.2.4 San Diego Gas & Electric............................................................................................................................................ 49

7.2.5 City of Palo Alto Utilities.............................................................................................................................................. 54

7.2.6 Sacramento Municipal Utilities District (Electric Only)................................................................................................. 56

7.2.7 Fuel Escalation Assumptions...................................................................................................................................... 58

7.3 Cost Details......................................................................................................................................................................... 59

7.4 PG&E Gas Infrastructure Cost Memo ................................................................................................................................. 60

7.5 Central Heat Pump Water Heater Comparison................................................................................................................... 63

7.6 Summary of Measures by Package .................................................................................................................................... 64

-
Cost Effectiveness Analysis: Multifamily New Construction

LIST OF TABLES
Table ES-1. Summary of Efficiency TDV Compliance Margins and Cost-Effectiveness....................................................................... 3 Table 1. Utility Tariffs Used Based on Climate Zone ............................................................................................................................ 8 Table 2. Prototype Characteristics...................................................................................................................................................... 10 Table 3. Base Case Characteristics of the Prototypes........................................................................................................................ 11 Table 4. Base Package PV Capacities (kW-DC) ................................................................................................................................ 11 Table 5. Incremental Cost Assumptions ............................................................................................................................................. 14 Table 6. Heat Pump Water Heater Incremental System Costs (Present Value (2023$)).................................................................... 17 Table 7. Heat Pump Space Heater Costs per Dwelling Unit (Present Value (2023$) ......................................................................... 17 Table 8. Lifetime of Water Heating & Space Conditioning Equipment Measures ............................................................................... 18 Table 9. IOU Natural Gas Infrastructure Cost Savings for All-Electric Building................................................................................... 19 Table 10. Multifamily IOU Total Natural Gas Infrastructure Costs ...................................................................................................... 19 Table 11. Multifamily CPAU Total Natural Gas Infrastructure Costs................................................................................................... 19 Table 12. 3-Story Cost-Effectiveness Results per Dwelling Unit: All-Electric Prescriptive Code......................................................... 22 Table 13. 5-Story Cost-Effectiveness Results per Dwelling Unit: All-Electric Prescriptive Code......................................................... 23 Table 14. 3-Story Cost-Effectiveness Results per Dwelling Unit: All-Electric 100% PV...................................................................... 24 Table 15. 5-Story Cost-Effectiveness Results per Dwelling Unit: All-Electric 100% PV...................................................................... 25 Table 16. 3-Story Cost-Effectiveness Results per Dwelling Unit: Mixed Fuel Efficiency..................................................................... 26 Table 17. 5-Story Cost-Effectiveness Results per Dwelling Unit: Mixed Fuel Efficiency..................................................................... 27 Table 18. 3-Story Cost-Effectiveness Results per Dwelling Unit: Mixed Fuel Efficiency + PV + Battery............................................. 28 Table 19. 5-Story Cost-Effectiveness Results per Dwelling Unit: Mixed Fuel Efficiency + PV ............................................................ 29 Table 20. On-Bill IOU Cost-Effectiveness Comparison with CARE Tariffs, Results per Dwelling Unit: All-Electric Prescriptive Code 30 Table 21. On-Bill IOU Cost-Effectiveness Comparison with CARE Tariffs, Results per Dwelling Unit: Mixed Fuel Packages ........... 30 Table 22. Summary of Efficiency TDV Compliance Margins and Cost-Effectiveness......................................................................... 34 Table 23. PG&E Baseline Territory by Climate Zone.......................................................................................................................... 39 Table 24. PG&E Monthly Gas Rate ($/therm)..................................................................................................................................... 39 Table 25. PG&E Monthly CARE (GL-1) Gas Rate ($/therm)............................................................................................................... 40 Table 26: SCE Baseline Territory by Climate Zone ............................................................................................................................ 44 Table 27. SoCalGas Baseline Territory by Climate Zone.................................................................................................................... 47 Table 28. SoCalGas Monthly Gas Rate ($/therm) .............................................................................................................................. 47

-
Cost Effectiveness Analysis: Multifamily New Construction Table 29. SDG&E Baseline Territory by Climate Zone ....................................................................................................................... 49 Table 30. SDG&E Monthly Gas Rate ($/therm) .................................................................................................................................. 49 Table 31. CPAU Monthly Gas Rate ($/therm)..................................................................................................................................... 54 Table 32: Real Utility Rate Escalation Rate Assumptions................................................................................................................... 58 Table 33. Heat Pump Water Heater First Costs per Building (Present Value (2023$))....................................................................... 59 Table 34. Heat Pump Space Heater First Costs per Dwelling Unit (Present Value (2023$) ............................................................... 59 Table 35. 5-Story Cost-Effectiveness: All-Electric Prescriptive Code with R-134a Heat Pump Water Heater .................................... 63 Table 36. Mixed Fuel Efficiency Package Measures .......................................................................................................................... 64 Table 37. Upgrade Package PV Capacities (kW-DC)......................................................................................................................... 65

LIST OF FIGURES
Figure 1. 3-Story greenhouse gas reductions (metric tons) per dwelling unit ..................................................................................... 32 Figure 2. 5-Story greenhouse gas savings (metric tons) per dwelling unit.......................................................................................... 32 Figure 3. Map of California climate zones........................................................................................................................................... 37

-
Cost Effectiveness Analysis: Multifamily New Construction 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 combinations of measures that exceed the minimum state requirements, the 2022 Building Energy Efficiency Standards (Title 24, Part 6 or Energy Code), effective January 1, 2023, for newly constructed multifamily buildings. The analysis considers low-rise and mid-rise multifamily building types and evaluates mixed fuel and all-electric package options in all sixteen California climate zones (CZs) Packages include a code compliant electrification package and a mixed fuel efficiency package, as well as the addition of above-code on-site solar photovoltaic (PV) capacity and battery energy storage. The 2022 Energy Code established electric heat pumps as the prescriptive baseline for space heating in most climate zones. As a result, this analysis primarily focuses on the electrification of central water heating. Space heating electrification was also evaluated where the prescriptive heat pump baseline didn’t apply: In Climate Zone 16 for multifamily buildings three habitable stories or fewer, and Climate Zones 1 and 16 for multifamily buildings greater than three habitable stories.

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. Time Dependent Valuation (TDV) is the California Energy Commission’s LCC methodology, 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, Part

6. Two multifamily prototypes were evaluated in this study. A 3-story loaded corridor and a 5-story mixed use prototype, which combined are estimated to represent 91 percent of new multifamily construction in California.

The following summarizes key results from the study:
• The Reach Codes Team found all-electric new construction to be feasible and cost-effective based on the California Energy Commission’s Time Dependent Valuation (TDV) metric in all cases. In many cases all- electric prescriptive code construction results in an increase in utility costs and is not cost -effective On-Bill.

-
Cost Effectiveness Analysis: Multifamily New Construction Executive Summary
2 billing tariff is expected to increase On-Bill cost-effectiveness of the all-electric prescriptive code scenario. An all-electric home has better on-site utilization of generated electricity from PV than a mixed fuel home with a similar sized PV system, and as a result exports less electricity to the grid. Since the net -billing tariff values exports less than under NEM 2.0, the relative impact on annual utility costs to the mixed fuel baseline is greater.
• This analysis does justify a modest reach based on either efficiency TDV or source energy for all-electric buildings. However, this may be challenging for some projects given the recent changes to which the industry must adapt, including the efficiency updates and multifamily restructuring in the 2022 Title 24, Part 6 code.

While project compliance margins using a CO2 refrigerant heat pump water heating system are high, the Reach Code Team found lower compliance margins using other heat pump water heater system designs.

Focusing on supporting projects to electrify water heating is expected to support the market shift tow ards more central heat pump water heaters.
• For jurisdictions interested in a reach code that allows for mixed fuel buildings , a mixed fuel efficiency and PV package (and battery for the 3-story prototype) was found to be cost-effective based on TDV in all cases and cost-effective On-Bill in most climate zones. This path, referred to as “Electric-Preferred”, allows for mixed fuel buildings but requires a higher building performance than for all-electric buildings. The efficiency measures evaluated in this study did not provide significant compliance benefit. As a result, the Reach Codes Team recommends establishing a compliance margin target based on source energy or total TDV. This would allow for PV and battery above minimum code requirements to be used to meet the target. • Jurisdictions interested in increasing affordable multifamily housing should know that applying the CARE rates has the overall impact of increasing utility cost savings for an all-electric building in most climate zones compared to a code compliant mixed fuel building, improving On-Bill cost-effectiveness.

Table ES-1 summarizes results for each prototype and depicts the efficiency TDV compliance margins achieved for each climate zone and package. All results presented in the table have a positive compliance margin (greater than zero percent). Cells highlighted in green depict cases with a positive compliance margin and cost-effective results using both On-Bill and TDV approaches. Cells highlighted in yellow depict cases with a positive compliance margin and cost- effective results using either the On-Bill or TDV approach. Cells not highlighted depict cases with a positive compliance margin but that were not cost-effective using either the On-Bill or TDV approach.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Multifamily New Construction Executive Summary
3 Table ES-1. Summary of Efficiency TDV Compliance Margins and Cost-Effectiveness Climate
Zone
Electric
/Gas Utility
3-Story 5-Story
All-Electric
Prescriptive
Code
All-
Electric
+ PV
Mixed
Fuel
Efficiency
Mixed
Fuel
Efficiency
+ PV +
Battery
All-Electric
Prescriptive
Code
All-
Electric
+ PV
Mixed
Fuel
Efficiency
Mixed
Fuel
Efficiency
+ PV
CZ01 PGE 26% 26% 1% 1% 14% 14% 0% 0%
CZ02 PGE 20% 20% 1% 1% 9% 9% 1% 1%
CZ03 PGE 21% 21% 1% 1% 11% 11% 0% 0%
CZ04 PGE 18% 18% 1% 1% 9% 9% 1% 1%
CZ04 CPAU 18% 18% 1% 1% 9% 9% 1% 1%
CZ05 PGE 23% 23% 1% 1% 12% 12% 0% 0%
CZ05 PGE/SCG 23% 23% 1% 1% 12% 12% 0% 0%
CZ06 SCE/SCG 18% 18% 1% 1% 9% 9% 0% 0%
CZ07 SDGE 20% 20% 0% 0% 11% 11% 0% 0%
CZ08 SCE/SCG 13% 13% 1% 1% 8% 8% 1% 1%
CZ09 SCE 13% 13% 1% 1% 7% 7% 1% 1%
CZ10 SCE/SCG 14% 14% 3% 3% 7% 7% 2% 2%
CZ10 SDGE 14% 14% 3% 3% 7% 7% 2% 2%
CZ11 PGE 14% 14% 3% 3% 8% 8% 2% 2%
CZ12 PGE 17% 17% 2% 2% 9% 9% 2% 2%
CZ12 SMUD/PGE 17% 17% 2% 2% 9% 9% 2% 2%
CZ13 PGE 13% 13% 4% 4% 7% 7% 2% 2%
CZ14 SCE/SCG 13% 13% 3% 3% 6% 6% 2% 2%
CZ14 SDGE 13% 13% 3% 3% 6% 6% 2% 2%
CZ15 SCE/SCG 5% 5% 5% 5% 3% 3% 3% 3%
CZ16 PG&E 24% 24% 5% 5% 9% 9% 2% 2%
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. Reach codes that amend Part 6 of the CA Building Code and require energy performance (including PV and storage) beyond state code minimums must demonstrate that the proposed changes are cost-effective and obtain approval from the Energy Commission prior to filing with the BSC.

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 2023-06-20

-
Cost Effectiveness Analysis: Multifamily New Construction Introduction
4 1 Introduction
This report documents cost-effective combinations of measures that exceed the minimum state requirements, the 2022 Building Energy Efficiency Standards, effective January 1, 2023, for newly constructed multifamily buildings. This report was developed in coordination with the California Statewide Investor-Owned Utilities (CA IOUs) Codes and Standards Program, key consultants, and engaged cities—collectively known as the Reach Codes Team. The CA IOU Codes and Standards Program is comprised of IOUs 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 analysis considers low-rise and mid-rise multifamily building types and evaluates mixed fuel and all-electric package options in all sixteen California climate zones (CZs)1 Packages include combinations of efficiency measures, on-site renewable energy, and battery energy storage.

The California Building Energy Efficiency Standards Title 24, Part 6 (Energy Code) (California Energy Commission, 2022a) is maintained and updated every three years by two state agencies: the California Energy Commission (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 (California Energy Commission, 2022a)). 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 measures 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.
1 See Appendix 7.1 Map of California Climate Zones for a graphical depiction of climate zone locations.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Multifamily New Construction Methodology and Assumptions
5 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 software approved for 2022 Title 24 Code compliance analysis, CBECC 2022.2.0.

Using the 2022 baseline as the starting point, prospective energy efficiency measures were identified and modeled to determine the projected site energy (therm and kWh) and compliance impacts. Annual utility costs were calculated using hourly data output from CBECC, and electricity and natural gas tariffs for each of the investor -owned utilities (IOUs).

This analysis focused on residential apartments only (a prior study and report analyzed the cost-effectiveness of above code packages for nonresidential buildings (Statewide Reach Codes Team, 2022b). The Statewide Reach Codes Team selected measures for evaluation based on the single family 2022 reach code analysis (Statewide Reach Codes Team, 2022a) and the multifamily 2019 reach code analysis [ (Statewide Reach Codes Team, 2020), (Statewide Reach Codes Team, 2021)] as well as experience with and outreach to architects, builders, and engineers.

2.1.2 Cost-Effectiveness

2.1.2.1 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 manner in which they value energy and thus the cost savings of reduced or avoided energy use:

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 and energy cost inflation.

Time Dependent Valuation (TDV): This 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 long-term projected costs, such as the cost of providing energy during peak periods of demand, costs for carbon emissions, and grid transmission and distribution impacts. This metric values energy use differently depending on the fuel source (natural gas, electricity, and propane), time of day, and season. Electricity used (or saved) during peak periods has a much higher value than electricity used (or saved) during off-peak periods due to the less inefficient energy generation sources providing peak electricity (Horii, Cutter, Kapur, Arent, & Conotyannis, 2014). This is the methodology used by the Energy Commission in evaluating cost-effectiveness for efficiency measures in the 2022 Energy Code.

2.1.2.2 Costs
The Reach Codes Team assessed the incremental costs of the measures and packages over a 30-year lifecycle.

Incremental costs represent the equipment, installation, replacements, and maintenance costs of the proposed measure relative to the 2022 Energy Code minimum requirements or standard industry practices. Present value of replacement cost is included for measures with lifetimes less than the evaluation period.

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

NPV: The lifetime NPV is reported as a cost-effectiveness metric, Equation 1 demonstrates how this is calculated. If the NPV of a measure or package is positive, it is considered cost-effective. A negative values represent net costs.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Multifamily New Construction Methodology and Assumptions
6 B/C Ratio: This is the ratio of the present value (PV) of all benefits to the present value of all costs over 30 years (PV benefits divided by PV costs). The criteria benchmark for cost-effectiveness is a B/C ratio greater than one. 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
𝑁𝑁𝑃𝑃𝑃𝑃 = 𝑃𝑃𝑃𝑃 𝑡𝑡𝐵𝐵 𝑙𝑙𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝑙𝑙𝐵𝐵 𝑏𝑏𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵 − 𝑃𝑃𝑃𝑃 𝑡𝑡𝐵𝐵 𝑙𝑙𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝑙𝑙𝐵𝐵 𝑐𝑐𝑡𝑡𝐶𝐶𝐵𝐵 Equation 2
𝑃𝑃𝑃𝑃 𝑡𝑡𝐵𝐵 𝑙𝑙𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝑙𝑙𝐵𝐵 𝑏𝑏𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵 𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵 − 𝐵𝐵𝑡𝑡 − 𝐶𝐶𝑡𝑡𝐶𝐶𝐵𝐵 𝑅𝑅𝑅𝑅𝐵𝐵𝐵𝐵𝑡𝑡 = 𝑃𝑃𝑃𝑃 𝑡𝑡𝐵𝐵 𝑙𝑙𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝑙𝑙𝐵𝐵 𝑐𝑐𝑡𝑡𝐶𝐶𝐵𝐵 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 TDV savings, and the cost is represented by incremental first cost and replacement costs. Some packages result in initial construction cost savings (negative incremental cost), and either energy cost savings (positive benefits), or increased energy costs (negative benefits). In cases where both construction costs and energy-related savings are negative, the construction cost savings are treated as the ‘benefit’ while the increased energy costs are the ‘cost.’ In cases where a measure or package is cost-effective immediately (i.e., upfront construction cost savings and lifetime energy cost savings), B/C ratio cost-effectiveness is represented by “>1”.

The lifetime costs or benefits are calculated according to Equation 3.

Equation 3
(𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐 𝑐𝑐𝑜𝑜 𝑏𝑏𝑏𝑏𝐴𝐴𝑏𝑏𝑏𝑏𝑏𝑏𝑐𝑐)𝑡𝑡 𝐴𝐴 𝑃𝑃𝑃𝑃𝐵𝐵𝐶𝐶𝐵𝐵𝐵𝐵𝐵𝐵 𝑣𝑣𝑅𝑅𝑙𝑙𝑣𝑣𝐵𝐵 𝑡𝑡𝐵𝐵 𝑙𝑙𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝑙𝑙𝐵𝐵 𝑐𝑐𝑡𝑡𝐶𝐶𝐵𝐵 𝑡𝑡𝑃𝑃 𝑏𝑏𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵 = ∑𝑐𝑐=0 (1+𝑜𝑜)𝑡𝑡 Where:
• n = analysis term in years
• r = discount rate
The following summarizes the assumptions applied in this analysis to both methodologies. • Analysis term of 30 years
• Real discount rate of three percent
TDV is a normalized monetary format and there is a unique procedure for calculating the present value benefit of TDV energy savings. The present value of the energy cost savings in dollars is calculated by multiplying the TDV savings (reported by the CBECC simulation software) by a NPV factor developed by the Energy Commission (see E3’s 2022 TDV report for details (Energy + Environmental Economics, 2020)). The 30-year residential NPV factor is $0.173/kTDV for the 2022 Energy Code.

Equation 4
𝑇𝑇𝑇𝑇𝑃𝑃 𝑃𝑃𝑃𝑃 𝑡𝑡𝐵𝐵 𝑙𝑙𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝑙𝑙𝐵𝐵 𝑏𝑏𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵 = 𝑇𝑇𝑇𝑇𝑃𝑃 𝐵𝐵𝐵𝐵𝐵𝐵𝑃𝑃𝑒𝑒𝑒𝑒 𝐶𝐶𝑅𝑅𝑣𝑣𝐵𝐵𝐵𝐵𝑒𝑒𝐶𝐶 ∗ 𝑁𝑁𝑃𝑃𝑃𝑃 𝐵𝐵𝑅𝑅𝑐𝑐𝐵𝐵𝑡𝑡𝑃𝑃

2.1.3 Utility Rates
In coordination with the CA IOU rate team (comprised of representatives from PG&E, SCE, SDG&E, SMUD, and CPAU), the Reach Codes Team determined appropriate utility rates for each climate zone in order to calculate utility California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Multifamily New Construction Methodology and Assumptions
7 costs and determine On-Bill cost-effectiveness for the proposed measures and packages. The utility tariffs, summarized in Table 1, were determined based on the most prevalent active rate 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 the IOUs in-unit gas was evaluated under the G1 rate and central gas for water heating was evaluated under the relevant master metered gas tariff, GM. Electricity use for central water heating was evaluated using the residential TOU rates. The water heating utility bill was calculated separately from the in-unit electricity bill. Photovoltaic (PV) and battery energy storage benefits were applied according to virtual net energy metering (VNEM) rules.2 PV was first assigned to the central water heating meter to offset 100 percent of the electricity use. The remaining PV and all of the battery impacts were then split evenly across the apartment meters. The same approach wa s applied for CPAU and SMUD using the rates described in Table 1.

The multifamily prototypes used in this analysis include common area spaces that serve the residents (lobby, leasing office, corridors, etc.). Most of the energy use for these spaces could not be separated from that for the dwelling units within the CBECC model. As a result, average per dwelling unit hourly energy use was calculated to include both the dwelling unit and common space energy use.

First-year utility costs were calculated using hourly electricity and natural gas output from CBECC and applying the utility tariffs summarized in Table 1. Annual costs were also estimated for customers eligible for the CARE tariff discounts on both electricity and natural gas bills. The CARE tariff was only applied to the in-unit apartment meters.

Appendix 7.2 Utility Rate Schedules includes details of each utility tariff.

For cases with PV generation, the approved NEM 2.0 tariffs were applied along with minimum daily use billing and mandatory non-bypassable charges. In December the California Public Utilities Commission (CPUC) issued a decision adopting a net billing tariff (NBT) as a successor to NEM 2.0 that will go into effect April of 2023 3 Given the recent
timing of this decision there was not time to incorporate these changes into this analysis. The Reach Codes Team conducted a limited sensitivity analysis on the impacts of NBT relative to NEM 2.0 on utility bills. It was found that utility costs will increase for all homes with PV systems; however, the increase was less for an all-electric building compared to a mixed fuel building with a similarly sized PV system. As a result of better onsite utilization of PV generation and thus fewer exports to the grid, the Reach Codes Team expects the cost-effectiveness for the electrification scenarios for the all-electric home evaluated in this report to improve under NBT. Conversely, cost-effectiveness of increasing PV capacity is expected to be reduced under NBT.
2 PG&E: https://www.pge.com/tariffs/assets/pdf/tariffbook/ELEC_SCHEDS_NEM2V.pdf SDG&E: https://tariff.sdge.com/tm2/pdf/tariffs/ELEC_ELEC-SCHEDS_NEM-V-ST.pdf SCE:
https://edisonintl.sharepoint.com/teams/Public/TM2/Shared%20Documents/Forms/AllItems.aspx?ga=1&id=%2Fteams %2FPublic%2FTM2%2FShared%20Documents%2FPublic%2FRegulatory%2FTariff%2DSCE%20Tariff%20Books%2F Electric%2FSchedules%2FOther%20Rates%2FELECTRIC%5FSCHEDULES%5FNEM%2DV%2DST%2Epdf&parent= %2Fteams%2FPublic%2FTM2%2FShared%20Documents%2FPublic%2FRegulatory%2FTariff%2DSCE%20Tariff%20 Books%2FElectric%2FSchedules%2FOther%20Rates
3 https://www.cpuc.ca.gov/nemrevisit
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Multifamily New Construction Methodology and Assumptions
8 Table 1. Utility Tariffs Used Based on Climate Zone
IOUs
Climate Zones Electric / Gas Utility Electricity Natural Gas 1-5,11-13,16 PG&E / PG&E E-TOU Option C G1 (in-unit) & GM (central water heating)1
5 PG&E / SoCalGas E-TOU Option C GM
6, 8-10, 14, 15 SCE / SoCalGas TOU-D Option 4-9 GM
7, 10, 14 SDG&E / SDG&E TOU-DR-1 GM
POUs
Climate Zones Electric / Gas Utility Electricity Natural Gas 4 CPAU / CPAU E-1 (in-unit) & E-2 (central
water heating) G-2
12 SMUD / PG&E R-TOD, RT02 (in-unit) &
RSMM (central water heating) GM
1G1 rate applied to gas use within the apartment units, which only occurs in Climate Zones 1 and 16, see Section 3 for details. GM rate applied to gas use for central water heating.

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. See Appendix 7.2.7 Fuel Escalation Assumptions for details.

2.2 2022 T24 Compliance Metrics
2022 Title 24, Part 6 Section 170.1 defines the energy budget of the building based on source energy and TDV energy for space-conditioning, indoor lighting, mechanical ventilation, PV and battery storage systems, service water heating and covered process loads. In 2022, the Energy Commission introduced the new compliance metric of source energy, which differs by fuel source (as does TDV) and is a reasonable proxy for greenhouse gas emissions. Additionally, for multifamily buildings four habitable stories and higher prescriptive requirements for PV and battery systems were also introduced. This led to the need to differentiate an efficiency compliance metric, which ensured that the building met minimum efficiency standards, and a total energy compliance metric which incorporated the PV and battery standards.

In order to be compliant with the building code a building needs to comply with all three compliance metrics described below:
• Efficiency TDV. Efficiency TDV accounts for all regulated end-uses but does not include the impacts of PV and battery storage.
• Total TDV. Total TDV includes regulated end-uses and accounts for PV and battery storage contributions. • Source Energy. Source energy is based on fuel used for power generation and distribution.

2.3 Greenhouse Gas Emissions
The analysis reports the greenhouse gas (GHG) emission estimates based on assumptions within CBECC. There are 8,760 hourly multipliers accounting for time dependent energy use and carbon based on source emissions, including renewable portfolio standard projections. There are two series of multipliers—one for Northern California climate California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Multifamily New Construction Methodology and Assumptions
9 zones, and another for Southern California climate zones. 4 GHG emissions are reported as average annual metric tons of CO2 equivalent over the 30-year building lifetime.
4 CBECC multipliers are the same for CZs 1-5 and 11-13 (Northern California), while there is another set of multipliers for CZs 6-10 and 14-16 (Southern California).

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Multifamily New Construction Prototypes, Measure Packages, and Costs
10 3 Prototypes, Measure Packages, and Costs
This section describes the prototypes, measures, costs, and the scope of analysis drawing from previous reach code research where appropriate.

3.1 Prototype Characteristics
The Energy Commission defines building prototypes which it uses to evaluate the cost -effectiveness of proposed changes to Title 24 requirements. There are 4 multifamily prototypes used in code development : a 2-story garden style, a 3-story loaded corridor, a 5-story mixed use and a 10-story mixed use. Based on work completed for the 2022 Title 24 code development, the 3-story and the 5-story represent 33 percent and 58 percent, respectively, of new multifamily construction in California. As a result, these two prototypes are used in this analysis. Additional details on all four prototypes can be found in the Multifamily Prototypes Report (TRC, 2019).

Table 2 describes the basic characteristics of each prototype.

Table 2. Prototype Characteristics
Characteristic 3-Story Loaded
Corridor 5-Story Mixed Use
Conditioned Floor Area 39,372 ft2
113,100 ft2 total:
33,660 ft2 nonresidential
79,440 ft2 residential
Num. of Stories 3
6 Stories total:
1 story parking garage (below grade)
1 story of nonresidential space
4 stories of residential space
Num. of Bedrooms
(6) Studio
(12) 1-bed
(12) 2-bed
(6) 3-bed
(8) studios
(40) 1-bed units
(32) 2-bed units
(8) 3-bed units
Window-to-Wall Area Ratio 25% 25%
Wall Type Wood framed Wood frame over a first-floor concrete podium
Roof Type Flat roof Flat roof
Foundation Slab-on-grade Concrete podium with underground parking
The methodology used in the analyses for each of the prototypical building types begins with a design that precisely meets the minimum 2022 prescriptive requirements.5 Table 170.2-A and 170.2-B in the 2022 Standards (California Energy Commission, 2022a) list the prescriptive measures that determine the baseline design in each climate zone.

Other features are designed to meet, but not exceed, the minimum requirements and are consistent with the Standard Design in the ACM Reference Manual (California Energy Commission, 2022c). The analysis also assumed electric resistance cooking in the apartment units to reflect current market data. The 3-story building prototype includes a central laundry facility, and the 5-story assumes laundry in the units. Laundry equipment was assumed to be electric in all cases; electrification of laundry equipment was not addressed in this study. The nonresidential 2022 reach code analysis (Statewide Reach Codes Team, 2022b) did consider electrification of central laundry facilities within the small hotel prototype.

Table 3 describes characteristics as they were applied to the base case energy model in this analysis. In a shift from the 2019 Standards, the 2022 Standards define a prescriptive fuel source for space heating establishing an electric 5Due to planned software updates to how the prescriptive requirements are applied in the Standard Design and challenges for certain space types with sizing heating and cooling equipment the same in the Proposed Design as in the Standards, the results compliance margins for the base case models were not exactly zero percent..

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Multifamily New Construction Prototypes, Measure Packages, and Costs
11 heat pump baseline in all climate zones except 16 for multifamily buildings three habitable stories and fewer and 1 and 16 for multifamily buildings four habitable stories and greater.

Table 3. Base Case Characteristics of the Prototypes
Characteristic 3-Story Loaded Corridor 5-story Mixed Use Space
Heating/Cooling1
Individual split systems with ducts in
conditioned space
CZ 1-15: Heat pump
CZ 16: Natural gas furnace with air
conditioner
Individual split systems with ducts in
conditioned space
CZ2-15: Heat pump
CZ1, 16: Dual-fuel heat pump with
natural gas backup
Ventilation Individual balanced fans, continuously
operating
Individual balanced fans, continuously
operating
Water Heater1
Natural gas central boiler with solar
thermal sized to meet the prescriptive
requirements by climate zone.

Natural gas central boiler with solar
thermal sized to meet the prescriptive
requirements by climate zone.

Hot Water
Distribution Central recirculation Central recirculation Cooking Electric Electric
Clothes Drying Electric (central) Electric (in-unit)
PV System
Sized according to the prescriptive
requirements in Equation 170.2-C of the
2022 Title 24 Standards. Size differs by
climate zone ranging from 1.60 kW to

2.90 kW per dwelling unit, see Table 4.

Sized according to the prescriptive
requirements in Equation 170.2-D of the
2022 Title 24 Standards. Size differs by
climate zone ranging from 2.26 kW to

3.34 kW per dwelling unit, see Table 4.

Battery System None None
1 Equipment efficiencies are equal to minimum federal appliance efficiency standards.

Table 4 summarizes the PV capacities for the base case packages.

Table 4. Base Package PV Capacities (kW-DC)
Climate
Zone
Base Package
3-Story 5-Story
CZ01 2.00 2.26
CZ02 1.79 2.68
CZ03 1.70 2.26
CZ04 1.75 2.68
CZ05 1.60 2.26
CZ06 1.77 2.68
CZ07 1.67 2.68
CZ08 1.91 2.68
CZ09 1.92 2.68
CZ10 1.98 2.68
CZ11 2.21 2.68
CZ12 1.96 2.68
CZ13 2.33 2.68
CZ14 1.94 2.68
CZ15 2.90 3.34
CZ16 1.76 2.26
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Multifamily New Construction Prototypes, Measure Packages, and Costs
12 3.2 Measure Definitions and Costs
Measures evaluated in this study fall into two categories: those associated with general efficiency, onsite generation, and demand flexibility and those associated with building electrification. The Reach Codes Team selected measures based on cost-effectiveness as well as decades of experience with residential architects, builders, and engineers along with general knowledge of the relative consumer acceptance of many measures. This analysis focused on measures that impacted the residential dwelling units only.

The following sections describe the details and incremental cost assumptions for each of the measures. Incremental costs represent the equipment, installation, replacement, and maintenance costs of the proposed measures relative to the base case. Replacement costs are applied for roofs, mechanical equipment, PV inverters and battery systems over the 30-year evaluation period. Incremental maintenance costs are estimated for PV systems, but not any other measures. Costs were estimated to reflect costs to the building owner. All costs are provided as present value in 2023 (2023 PV$).

The Reach Codes Team obtained measure costs from distributors, contractors, literature review, and online sources such as Home Depot and RS Means. Contractor markups are incorporated. These are the Reach Codes Team best estimate of average costs statewide. Regional variation in costs is not accounted for, although it's recognized that local costs may differ. Cost increases due to recent high inflation rates and supply chain delays are not included.

3.2.1 Efficiency, Solar PV, and Batteries
The following are descriptions of each of the efficiency, PV, and battery measures evaluated under this analysis and applied in at least one of the packages presented in this report. Table 5 summarizes the incremental cost assumptions for each of these measures. These measures were evaluated for all climate zones but were ultimately adopted in a subset of climate zones based on cost-effectiveness outcomes.

Lower U-Factor Fenestration: Reduce window U-factor to 0.24. The prescriptive U-factor is 0.30 in all climate zones except Climate Zones 7 and 8 where it is 0.34. This measure is included in Climate Zone 16 only.

Cool Roof: Install a roofing product that’s rated by the Cool Roof Rating Council to have an aged solar reflectance (ASR) equal to or greater than 0.70. Low-sloped roofs were assumed in all cases. The 2022 Title 24 specifies a prescriptive ASR of 0.63 for Climate Zones 9 through 11 and 13 through 15. This measure is included in Climate Zones 9 through 15.

Low Pressure Drop Ducts: Upgrade the duct distribution system to reduce external static pressure and meet a maximum fan efficacy of 0.35 Watts per cfm. This may involve upsizing ductwork, reducing the total effective length of ducts, and/or selecting low pressure drop components such as filters. Fan watt draw must be verified by a HERS rater according to the procedures outlined in the 2022 Reference Appendices RA3.3 (California Energy Commission, 2022b). This measure is included in Climate Zones 1 and 10 through 16.

Verified Low Leakage Ducts in Conditioned Space: Seal the ducts to achieve a measured leakage no greater than 25 cfm leakage to outside. This may be verified using a guarded blower door test to isolate leakage to outside.

Alternatively, this can also be satisfied by demonstrating that total leakage is not greater than 25 cfm. Ducts are assumed to already be located in conditioned space in the baseline. This measure is included in all climate zones.

Solar PV: Installation of on-site PV is required in the 2022 residential code unless an exception is met. The PV sizing methodology in each package was developed to offset annual building electricity use and avoid oversizing which would violate net energy metering (NEM) rules.
6 In all cases, PV is evaluated in CBECC according to the California Flexible Installation (CFI) assumptions. This measure is included in all climate zones.

Battery Energy Storage: A battery system was evaluated in CBECC-Res with control type set to “Time-of-Use” and with default efficiencies of 95% for both charging and discharging. This control option assumes the battery system will 6 NEM rules apply to the IOU territories only.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Multifamily New Construction Prototypes, Measure Packages, and Costs
13 charge or discharge based on a utility tariff time-of use signal. To qualify, the battery system must meet the requirements outlined in the 2022 Reference Appendices JA12.2.3.2 (California Energy Commission, 2022b). This measure is included in all climate zones but only for the 3-story prototype. A 100kWh battery was applied following the battery sizing requirements for multifamily buildings more than three habitable stories per Equation 170.2- E of the 2022 Energy Code.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Multifamily New Construction Prototypes, Measure Packages, and Costs
14 Table 5. Incremental Cost Assumptions
Measure
Performance
Level
Incremental Cost per
Dwelling Unit
(2023 PV$)
Source & Notes 3-Story 5-Story
Non-Preempted Measures
Window U-factor 0.24 vs 0.30 $536 $489 $4.23/ft2 of window area based on analysis conducted for the 2019 and 2022 Title 24 cycles (Statewide CASE Team, 2018).

Low-Sloped Cool
Roof Aged Solar
Reflectance

0.63 vs 0.10 $314 $222
$0.525/ft2 of roof area first incremental cost based on the 2022 Residential Additions and Alterations CASE Report (Statewide CASE Team, 2020b).Total costs assume present value of replacement at year 15.

0.70 vs 0.63 $24 $17
$0.04/ft2 of roof area first incremental cost based on the 2022 Nonresidential High Performance Envelope CASE Report (Statewide CASE Team, 2020a). Costs assume a blended average across roofing product types. Total costs assume present value of replacement at year 15.

Low Pressure
Drop Ducts

0.35 vs 0.45
W/cfm $44 $44
Costs assume half-hour labor per multifamily dwelling unit. Labor rate of $88 per hour is from 2022 RS Means for sheet metal workers and includes a weighted average City Cost Index for labor for California.

Verified Low
Leakage Ducts in
Conditioned
Space
≤25 cfm leakage
to outside $132 $132
Costs assume half-hour labor per multifamily dwelling unit and a $100 HERS Rater fee.

Labor rate of $88 per hour is from 2022 RS Means for sheet metal workers and includes a weighted average City Cost Index for labor for California. Ducts are already assumed to be located in conditioned space and the incremental costs reflect additional sealing and testing only.

PV + Battery
PV System
First Cost $1.47/W $1.47/W
First costs from LBNL’s Tracking the Sun 2022 costs (Barbose, Darghouth, O'Shaughnessy, & Forrester, 2022) and represent median costs in California in 2021 of $2.10/WDC for nonresidential greater than 100kWDC systems. The first cost was reduced by the solar energy Investment Tax Credit (ITC) of 30%.1 Costs are presented as the average of 2023, 2024, and 2025.

Inverter replacement cost of $0.14/WDC present value includes replacements at year 11 at $0.15/WDC (nominal) and at year 21 at $0.12/WDC (nominal) per the 2019 PV CASE Report (California Energy Commission, 2017).

System maintenance costs of $0.31/WDC present value assume $0.02/WDC (nominal) annually per the 2019 PV CASE Report (California Energy Commission, 2017).

Inverter
replacement $0.14/W $0.14/W
Maintenance $0.31/W $0.31/W
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Multifamily New Construction Prototypes, Measure Packages, and Costs
15 Measure
Performance
Level
Incremental Cost per
Dwelling Unit
(2023 PV$)
Source & Notes 3-Story 5-Story
Battery
First cost $700/kWh n/a
First cost of $1,000/kWh from LBNL’s Tracking the Sun 2022 costs (Barbose, Darghouth, O'Shaughnessy, & Forrester, 2022) for residential systems > 30kWh. The report derived costs from California’s Self-Generation Incentive Program (SGIP) residential participant cost data. First cost is reduced by the solar energy ITC of 30%.1 No SGIP incentives are included.

Costs are assumed to remain consistent at $1,000/kWh through 2025 and then reduced by 7% annually based on SDG&E’s Behind-the-Meter Battery Market Study (E-Source companies, 2020) over a 10 year period. Replacement is assumed at years 10 and 20. At year 10 the replacement cost is based on the average of expected 2033, 2034, and 2035 costs after applying the ITC for a future value cost of $435. Replacement cost at year 20 is based on a future value cost of $484 and does not include any ITC reduction.

Replacement
cost $564/kWh n/a
1As part of the Inflation Reduction Act in August 2022 the Section 25D Investment Tax Credit was extended and raised to 30% through 2032 with a step-down to 26% in 2033 and 22% in 2034. It’s assumed that the ITC is not renewed and is 0% starting in 2035. https://www.irs.gov/pub/taxpros/fs-2022-40.pdf.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 16 Prototypes, Measure Packages, and Costs

3.2.2 All-Electric
This analysis compared a code compliant mixed fuel prototype, which uses natural gas for water heating only in most climate zones, with a code compliant all-electric prototype. In these cases, the relative costs between natural gas and electric appliances and natural gas infrastructure and the associated infrastructure costs for not providing natural gas to the building were included.

To estimate costs the Reach Codes Team leveraged costs from the 2022 Multifamily All -Electric CASE Report (Statewide CASE Team, 2020c) and the 2019 reach code multifamily cost-effectiveness studies ( (Statewide Reach Codes Team, 2020), (Statewide Reach Codes Team, 2021)), and online equipment research. Present value replacement costs are included in the total lifetime incremental costs.

3.2.2.1 Water Heating
Federal regulations establish minimum efficiency requirements for heat pump water heaters with rated storage volume less than 120 gallons. While some heat pump water heaters falling into this regulated category can be used in a central water heater design, they are not required and therefore this measure does not trigger federal preemption and heat pump equipment of any efficiency level may be used for this analysis to justify the basis of a reach code .

For the central heat pump water heating system in the 3-story prototype the system design was based on the 2022 All- Electric Multifamily CASE Report (Statewide CASE Team, 2020c) and used CO2 refrigerant based heat pump water heaters (four Sanden GS3-45HPA-US units), 525 gallons of storage, and a 250 gallon electric resistance swing tank.

The 2022 CASE work based the 5-story system design on Colmac R-134a refrigerant heat pump water heaters. While this is an acceptable design, R-134a or R-410a refrigerant heat pump water heaters were found to be less cost- effective for the prototypes evaluated in this analysis due to higher incremental costs and lower overall performance relative to CO2 refrigerant products. As such, the Reach Codes Team evaluated a CO2 refrigerant system for the 5- story prototype for this analysis. As part of the 2025 Energy Code update cycle, designs for both multifamily prototypes are being reexamined using CO2 refrigerant heat pump water heaters. While full design and cost information was not yet available for this analysis, preliminary design data was used to inform sizing of a Sanden system for this prototype.

The system used 10 heat pump water heaters (Sanden GS3-45HPA-US units), 800 gallons of storage, and a 200 gallon electric resistance swing tank.

Table 6 reports costs for the central heat pump water heating systems relative to a gas boiler system with solar thermal that meets the prescriptive requirements of 20% solar fraction in Climate Zones 1 through 9 and 35% solar fraction in Climate Zones 10 through 16. Costs include equipment and labor, gas piping within the building for the boiler system, and additional electrical service necessary for the heat pump system. Replacement costs are based on an effective useful life of 15 years for the water heaters and tanks, and 20 years for the solar thermal collectors. For the solar thermal systems, it’s also assumed that the glycol is replaced at years 9, 18 and 27. Additional details on cost assumptions are presented in Appendix 7.3 Cost Details.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 17 Prototypes, Measure Packages, and Costs
Table 6. Heat Pump Water Heater Incremental System Costs (Present Value (2023$)) Item
3-Story 5-Story
Source & Notes Central
Gas
Boiler
Central
Heat
Pump
Central
Gas
Boiler
Central
Heat
Pump
First Cost CZs 1-9 $173,772
$211,531
$279,163
$343,920
3-story costs directly from 2022
Multifamily All-Electric CASE
Report. 5-story costs estimated
based on component costs for
the 3-story from the CASE
report.

CZs 10-16 $182,810 $300,883
Replacement Cost CZs 1-9 $32,297
$44,263
$59,930
$110,659
CZs 10-16 $36,943 $69,361
Total Incremental
Cost
CZs 1-9
n/a
$49,725
n/a
$115,486
CZs 10-16 $36,041 $84,335
Incremental Cost
per Dwelling Unit
CZs 1-9 $1,381 $1,312
CZs 10-16 $1,001 $958

3.2.2.2 Space Heating
Table 7 presents the costs for heat pump space heater conversion from gas equipment. In most climate zones the baseline per the 2022 Energy Code is a heat pump space heater, so these costs are only applied in a couple of instances. For the 3-story prototype the baseline in Climate Zone 16 is a gas furnace and air conditioner. For the 5- story prototype the baseline in Climate Zones 1 and 16 is a dual fuel heat pump with a gas furnace as backup. Costs include equipment and labor, gas piping within the building for the boiler system, and additional electrical service necessary for the heat pump system. Most of the cost difference between the two systems is attributed to higher labor costs to install the gas system as a result of gas piping and venting. Additional details on cost assumptions are presented in Appendix 7.3 Cost Details.

Table 7. Heat Pump Space Heater Costs per Dwelling Unit (Present Value (2023$) Item
3-Story 5-Story
Source & Notes Furnace +
Split AC
Heat
Pump
Furnace +
Split HP
Heat
Pump
First Cost
$20,667 $16,776 $21,245 $16,597
Costs largely based on the 2022
Multifamily All-Electric CASE Report with
some updates to reflect online equipment
cost research and labor cost alignments.

Replacement Cost $8,059 $7,326 $9,052 $7,326 See lifetimes referenced in Table 8.

Residual value at the end of the 30-year
analysis period was accounted for to
represent the remaining life of any
equipment.

Residual Value ($1,591) $0 $0 $0
Total $27,135 $24,102 $30,296 $23,924
Incremental Cost ($3,032) ($6,373)
Equipment lifetimes applied in this analysis for the space conditioning measures are summarized in Table 8. The lifetime for the heat pump, furnace, and air conditioner are based on the Database for Energy Efficient Resources (DEER) (California Public Utilities Commission, 2021b). In DEER, heat pump and air conditioner measures are assigned an effective useful lifetime (EUL) of 15 years and a furnace an EUL of 20 years. The heating and cooling system components are typically replaced at the same time when one reaches the end of its life and the other is near California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 18 Prototypes, Measure Packages, and Costs
it. Therefore, it is assumed that both the furnace and air conditioner are replaced at the same time at year 17.5, halfway between 15 and 20 years. For HVAC system costing, air-conditioning is included in all cases in both the base case and proposed models.

Table 8. Lifetime of Water Heating & Space Conditioning Equipment Measures Measure Lifetime
Gas Furnace 17.5
Air Conditioner 17.5
Heat Pump 15
Dual Fuel Heat Pump 15

3.2.2.3 Natural Gas Infrastructure
Eliminating natural gas to a building saves costs associated with connecting a service line from the street main to the building, piping distribution within the building, and monthly meter customer charges from the utility. This section focuses on the first item, not connecting gas service to the building. The latter two are captured in the appliance costs and the utility bill analysis. Cost savings for removing natural gas infrastructure to a multifamily building in IOU territory are presented in Table 9 and Table 10. These costs are applied as cost savings for the all-electric case when compared to the mixed fuel baseline.

These costs are project dependent and may be significantly impacted by such factors as utility territory, site characteristics, distance to the nearest natural gas main and main location, joint trenching, whether work is conducted by the utility or a private contractor, and number of dwelling units per development. All gas utilities participating in this study were solicited for cost information.

Service Extension: Service extension costs to the building were taken from a PG&E memo dated December 5, 2019 to Energy Commission staff (see Appendix 7.4 PG&E Gas Infrastructure Cost Memo for a copy of the memo). The estimated cost of $6,750 excludes costs for trenching and assumes nonresidential new construction within a developed area. For the 5-story building the cost is apportioned between the residential and nonresidential spaces in the building based on associated conditioned floor areas where 84 percent is residential. All of the spaces in the 3-story building are residential based.

Today, total costs are reduced to account for deductions per the Utility Gas Main Extensions rules. 7 These rules
categorize distribution line extensions as “refundable” costs, which are offset or subsidized by all other ratepayers. The CPUC issued a Decision in September 2022 that eliminates the subsidies effective July 1, 2023 (California Public Utilities Commission, 2022). Since most of the development that will occur during the three-year 2022 code cycle (2023-2025) will not be subject to these deduction allowances they are not included in this analysis.

Meter: Cost per meter provided by PG&E of $3,600 for a commercial meter to serve the central water heating and $600 per multifamily dwelling unit. The $600 dwelling unit meter is only applied in Climate Zone 16 for the 3- story prototype and Climate Zones 1 and 16 for the 5-story prototypes where gas is used either for primary or backup space heating. Two scenarios are presented in the tables. One is the case with electric space heating, no in- unit gas and the only residential gas use is to serve the central water heating system. The other case represents the scenario where there is in-unit gas to service space heating.
7 PG&E Rule 15: https://www.pge.com/tariffs/assets/pdf/tariffbook/GAS_RULES_15.pdf.

SoCalGas Rule 20: https://www.socalgas.com/regulatory/tariffs/tm2/pdf/20.pdf.

SDG&E Rule 15: https://tariff.sdge.com/tm2/pdf/GAS_GAS-RULES_GRULE15.pdf.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 19 Prototypes, Measure Packages, and Costs
Natural Gas Plan Review: Total costs are based on TRC’s 2019 reach code analysis for Palo Alto (TRC, 2018 ). The cost for the 5-story prototype is apportioned between the residential and nonresidential spaces in the building in the same way as was done for the service extension costs.

Table 9. IOU Natural Gas Infrastructure Cost Savings for All-Electric Building Item 3-Story 5-Story
Service Extension $6,750 $5,695
Meter
No In-Unit Gas
(Gas DHW only) $3,600 $3,600
In-Unit Gas $25,200 $56,400
Plan Review $2,316 $1,954
Table 10. Multifamily IOU Total Natural Gas Infrastructure Costs Prototype Scenario Total
Building
Per Dwelling
Unit
3-Story No In-Unit Gas $12,666 $352
In-Unit Gas $34,266 $952
5-Story No In-Unit Gas $11,248 $128
In-Unit Gas $64,048 $728
CPAU provides gas service to its customers and therefore separate costs were evaluated based on CPAU gas service connection fees.8 Table 11 presents the breakdown of gas infrastructure costs used in this analysis for CPAU. The same approach to apportioning the total building costs to the residential spaces as described in the IOU section was applied here for the service extension and plan review costs for the 5-story prototype. Meter costs were based on $1,772 for an 800 cubic foot per hour commercial meter for the central water heating system.

Table 11. Multifamily CPAU Total Natural Gas Infrastructure Costs Item 3-Story 5-Story
Service Extension $5,892 $4,971
Meter $1,772 $1,772
Plan Review $2,557 $2,157

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

1. All-Electric Prescriptive Code: This package meets all the prescriptive requirements of the 2022 Energy Code .

2. All-Electric Prescriptive Code + PV: Using the code minimum package as a starting point, PV capacity was added to offset 100 percent of the estimated annual electricity use.

3. Mixed Fuel Efficiency Only: This package uses only efficiency measures that do not trigger federal preemption including envelope and duct distribution efficiency measures. 8 CPAU Schedule G-5 effective 09-01-2019: https://www.cityofpaloalto.org/files/assets/public/utilities/utilities- engineering/general-specifications/gas-service-connection-fees.pdf California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 20 Prototypes, Measure Packages, and Costs

4. Mixed Fuel Efficiency + PV + Battery: Using the Efficiency Package as a starting point, PV capacity was added to offset 100 percent of the estimated annual electricity use. A battery system was also added. This package only applies to the 3-story prototype. The 5-story prototype includes a battery system in the baseline per the 2022 prescriptive requirements.

5. Mixed Fuel Efficiency + PV: Using the Efficiency Package as a starting point, PV capacity was added to offset 100 percent of the estimated annual electricity use. This package only applies to the 5-story prototype.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 21 Results
4 Results
Cost-effectiveness results are presented per prototype and measure packages described in Section 3.3. The TDV and On-Bill based cost-effectiveness results are presented in terms of B/C ratio and NPV. Energy savings, compliance margin, utility bill savings, and incremental costs are also shown.

In the following figures, green highlighting indicates that the case is cost-effective with a B/C ratio greater than or equal to 1 and a NPV greater than or equal to 0. Red highlighting indicates the case is not cost-effective.

Compliance margins are presented as percentages both for the efficiency TDV and the source energy metrics. A compliance margin that is equal to or greater than 0 indicates the case is code compliant.

4.1 All-Electric Prescriptive Code
Table 12 and Table 13 shows results for the multifamily all-electric prescriptive code case compared to the 2022 baseline. For both prototypes this scenario is cost-effective based on TDV in all climate zones. This scenario is only On-Bill cost-effective in a few climate zones. The 3-story all-electric case is cost-effective On-Bill in Climate Zones 1 through 3, 4 in CPAU territory, 12 in SMUD territory, and 16. The 5-story all-electric case is cost-effective On-Bill in Climate Zones 1, 4, 12 in SMUD territory, and 16.

In most cases there is a small net increase in utility cost in the first year.

There is an incremental cost for the central heat pump water heater ranging from $361 to $697 per dwelling unit.

The all-electric packages applied to the 3-story prototype in Climate Zone 16 and the 5-story prototype in Climate Zones 1 and 16 incorporate both gas to electric water heating and gas to electric space heating measures. In these cases, there are significant cost savings due to the avoided first costs of installing a gas furnace as compared to a heat pump. As a result, these cases are On-Bill cost-effective.

These results reflect a CO
2 refrigerant based central heat pump water heating system. The 5-story prototype was also evaluated with a R-134a refrigerant based central heat pump water heater and these results are shown in Appendix

7.5 Central Heat Pump Water Heater Comparison.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 22 Results
Table 12. 3-Story Cost-Effectiveness Results per Dwelling Unit: All-Electric Prescriptive Code Climate
Zone
Electric
/Gas Utility
Efficiency
TDV
Comp
Margin
Source
Comp
Margin
Annual
Elec
Savings
(kWh)
Annual
Gas
Savings
(therms)
Utility Cost Savings Incremental Cost On-Bill TDV
First
Year
Lifecycle
(2022$)
First
Year
Lifecycle
(2022$)
B/C
Ratio NPV B/C
Ratio NPV
CZ01 PGE 26% 15% -904 135 ($19) $1,676 $97 $429 3.9 $1,247 >1 $4,158 CZ02 PGE 20% 11% -801 115 ($30) $1,061 $697 $1,029 1.0 $32 9.9 $2,998 CZ03 PGE 21% 10% -789 115 ($26) $1,148 $697 $1,029 1.1 $119 9.9 $2,990 CZ04 PGE 18% 9% -759 109 ($31) $922 $697 $1,029 0.9 ($108) 9.2 $2,767 CZ04 CPAU 18% 9% -759 109 $233 $8,191 $765 $1,097 7.5 $7,094 7.7 $2,700 CZ05 PGE 23% 9% -789 112 ($30) $1,009 $697 $1,029 0.98 ($21) 9.3 $2,782 CZ05 PGE/SCG 23% 9% -789 112 ($79) ($515) $697 $1,029 0.0 ($1,545) 9.3 $2,782 CZ06 SCE/SCG 18% 7% -709 100 ($61) ($226) $697 $1,029 0.0 ($1,255) 8.6 $2,551 CZ07 SDGE 20% 8% -704 102 ($69) ($427) $697 $1,029 0.0 ($1,456) 9.1 $2,712 CZ08 SCE/SCG 13% 6% -689 96 ($61) ($302) $697 $1,029 0.0 ($1,331) 8.2 $2,432 CZ09 SCE 13% 5% -698 96 ($64) ($351) $697 $1,029 0.0 ($1,380) 8.0 $2,363 CZ10 SCE/SCG 14% 7% -701 83 ($88) ($1,109) $446 $649 0.0 ($1,758) >1 $1,959 CZ10 SDGE 14% 7% -701 83 ($112) ($1,803) $446 $649 0.0 ($2,452) >1 $1,959 CZ11 PGE 14% 10% -740 91 ($64) ($177) $446 $649 0.0 ($826) >1 $2,212 CZ12 PGE 17% 11% -755 94 ($62) ($70) $446 $649 0.0 ($719) >1 $2,297 CZ12 SMUD/PGE 17% 11% -755 94 $68 $2,942 $446 $649 4.5 $2,293 >1 $2,297 CZ13 PGE 13% 9% -717 86 ($65) ($291) $446 $649 0.0 ($940) >1 $2,050 CZ14 SCE/SCG 13% 7% -748 83 ($102) ($1,413) $446 $649 0.0 ($2,063) >1 $1,759 CZ14 SDGE 13% 7% -748 83 ($128) ($2,191) $446 $649 0.0 ($2,841) >1 $1,759 CZ15 SCE/SCG 5% 2% -607 64 ($89) ($1,403) $446 $649 0.0 ($2,053) >1 $1,305 CZ16 PG&E 24% 29% -1,928 185 ($178) ($1,066) ($4,045) ($2,983) 2.8 $1,917 >1 $4,352 California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 23 Results
Table 13. 5-Story Cost-Effectiveness Results per Dwelling Unit: All-Electric Prescriptive Code Climate
Zone
Electric
/Gas Utility
Efficiency
TDV
Comp
Margin
Source
Comp
Margin
Annual
Elec
Savings
(kWh)
Annual
Gas
Savings
(therms)
Utility Cost
Savings Incremental Cost On-Bill TDV
First
Year
Lifecycle
(2022$)
First
Year
Lifecycle
(2022$)
B/C
Ratio NPV B/C
Ratio NPV
CZ01 PGE 14% 9% -1,146 147 ($49) $1,209 ($4,639) ($5,788) >1 $6,998 >1 $9,816 CZ02 PGE 9% 6% -888 120 ($45) $809 $608 $1,185 0.7 ($375) 3.0 $2,270 CZ03 PGE 11% 7% -874 120 ($46) $778 $608 $1,185 0.7 ($407) 3.1 $2,421 CZ04 PGE 9% 6% -824 113 $18 $2,130 $608 $1,185 1.8 $945 3.1 $2,393 CZ04 CPAU 9% 6% -824 113 $230 $8,205 $635 $1,211 6.8 $6,994 3.0 $2,367 CZ05 PGE 12% 6% -871 117 ($47) $706 $608 $1,185 0.6 ($479) 2.8 $2,065 CZ05 PGE/SCG 12% 6% -871 117 ($99) ($919) $608 $1,185 0.0 ($2,103) 2.8 $2,065 CZ06 SCE/SCG 9% 5% -739 104 ($10) $986 $608 $1,185 0.8 ($199) 2.9 $2,183 CZ07 SDGE 11% 6% -735 106 ($74) ($500) $608 $1,185 0.0 ($1,685) 2.9 $2,215 CZ08 SCE/SCG 8% 4% -710 100 ($79) ($644) $608 $1,185 0.0 ($1,829) 3.0 $2,259 CZ09 SCE 7% 4% -725 100 ($53) ($51) $608 $1,185 0.0 ($1,236) 3.0 $2,274 CZ10 SCE/SCG 7% 4% -729 84 ($111) ($1,615) $361 $831 0.0 ($2,445) 2.7 $1,374 CZ10 SDGE 7% 4% -729 84 ($137) ($2,404) $361 $831 0.0 ($3,234) 2.7 $1,374 CZ11 PGE 8% 5% -790 92 ($86) ($663) $361 $831 0.0 ($1,494) 3.1 $1,656 CZ12 PGE 9% 6% -809 96 ($83) ($527) $361 $831 0.0 ($1,358) 3.0 $1,620 CZ12 SMUD/PGE 9% 6% -809 96 $62 $2,831 $361 $831 3.4 $2,000 3.0 $1,620 CZ13 PGE 7% 5% -754 88 ($83) ($686) $361 $831 0.0 ($1,517) 3.0 $1,570 CZ14 SCE/SCG 6% 3% -803 84 ($131) ($2,085) $361 $831 0.0 ($2,916) 2.2 $928 CZ14 SDGE 6% 3% -803 84 ($165) ($3,106) $361 $831 0.0 ($3,937) 2.2 $928 CZ15 SCE/SCG 3% 1% -602 65 ($105) ($1,775) $361 $831 0.0 ($2,606) 1.9 $695 CZ16 PG&E 9% 11% -1,388 142 ($127) ($675) ($4,886) ($6,142) 9.1 $5,467 >1 $6,704 California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 24 Results

4.2 All-Electric Plus PV
Table 14 and Table 15 present cost-effectiveness results for the all-electric plus PV packages for the 3-story and 5-story prototypes, respectively. All cases are cost-effective both On-Bill and based on TDV.

Table 14. 3-Story Cost-Effectiveness Results per Dwelling Unit: All-Electric 100% PV Climate
Zone
Electric
/Gas Utility
Efficiency
TDV
Comp
Margin
Source
Comp
Margin
Annual
Elec
Savings
(kWh)
Annual
Gas
Savings
(therms)
Utility Cost
Savings Incremental Cost On-Bill TDV
First
Year
Lifecycle
(2022$)
First
Year
Lifecycle
(2022$)
B/C
Ratio NPV B/C
Ratio NPV
CZ01 PGE 26% 24% 2,127 135 $782 $20,242 $3,638 $5,034 4.0 $15,208 3.2 $9,448 CZ02 PGE 20% 20% 1,835 115 $653 $16,910 $3,294 $4,406 3.8 $12,504 3.3 $8,632 CZ03 PGE 21% 20% 1,711 115 $614 $15,998 $3,076 $4,123 3.9 $11,875 3.4 $8,209 CZ04 PGE 18% 18% 1,558 109 $559 $14,587 $2,841 $3,818 3.8 $10,770 3.6 $8,230 CZ04 CPAU 18% 18% 1,558 109 $489 $14,138 $2,909 $3,886 3.6 $10,253 3.6 $8,162 CZ05 PGE 23% 20% 1,604 112 $579 $15,137 $2,826 $3,798 4.0 $11,338 3.6 $8,026 CZ05 PGE/SCG 23% 20% 1,604 112 $531 $13,613 $2,826 $3,798 3.6 $9,814 3.6 $8,026 CZ06 SCE/SCG 18% 17% 1,207 100 $378 $9,795 $2,364 $3,197 3.1 $6,598 3.8 $7,092 CZ07 SDGE 20% 21% 1,528 102 $723 $19,318 $2,777 $3,734 5.2 $15,584 3.5 $7,623 CZ08 SCE/SCG 13% 17% 1,393 96 $426 $10,842 $2,569 $3,464 3.1 $7,378 3.9 $7,908 CZ09 SCE 13% 15% 1,204 96 $379 $9,756 $2,335 $3,160 3.1 $6,596 3.9 $7,158 CZ10 SCE/SCG 14% 18% 1,381 83 $404 $10,130 $2,237 $2,978 3.4 $7,152 4.1 $7,031 CZ10 SDGE 14% 18% 1,381 83 $621 $16,493 $2,237 $2,978 5.5 $13,514 4.1 $7,031 CZ11 PGE 14% 19% 1,843 91 $625 $15,782 $2,940 $3,893 4.1 $11,889 3.4 $7,748 CZ12 PGE 17% 19% 1,704 94 $579 $14,777 $2,756 $3,654 4.0 $11,124 3.6 $7,607 CZ12 SMUD/PGE 17% 19% 1,704 94 $399 $10,615 $2,756 $3,654 2.9 $6,961 3.6 $7,607 CZ13 PGE 13% 17% 1,572 86 $544 $13,822 $2,567 $3,408 4.1 $10,415 3.6 $7,148 CZ14 SCE/SCG 13% 18% 1,572 83 $449 $11,152 $2,300 $3,060 3.6 $8,092 4.2 $7,668 CZ14 SDGE 13% 18% 1,572 83 $688 $18,158 $2,300 $3,060 5.9 $15,098 4.2 $7,668 CZ15 SCE/SCG 5% 11% 1,163 64 $330 $8,164 $1,966 $2,626 3.1 $5,539 3.9 $5,567 CZ16 PG&E 24% 38% 1,371 185 $700 $19,307 ($1,064) $894 21.6 $18,412 58.9 $11,596 California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 25 Results
Table 15. 5-Story Cost-Effectiveness Results per Dwelling Unit: All-Electric 100% PV Climate
Zone
Electric
/Gas Utility
Efficiency
TDV
Comp
Margin
Source
Comp
Margin
Annual
Elec
Savings
(kWh)
Annual
Gas
Savings
(therms)
Utility Cost
Savings Incremental Cost On-Bill TDV
First
Year
Lifecycle
(2022$)
First
Year
Lifecycle
(2022$)
B/C
Ratio NPV B/C
Ratio NPV
CZ01 PGE 14% 21% 1,437 147 $629 $16,919 ($1,574) ($1,803) >1 $18,721 >1 $18,222 CZ02 PGE 9% 14% 428 120 $262 $7,918 $1,930 $2,904 2.7 $5,015 4.0 $8,679 CZ03 PGE 11% 16% 682 120 $327 $9,417 $2,121 $3,152 3.0 $6,265 4.0 $9,285 CZ04 PGE 9% 13% 92 113 $207 $6,524 $1,476 $2,313 2.8 $4,211 4.1 $7,054 CZ04 CPAU 9% 13% 92 113 $337 $10,667 $1,502 $2,340 4.6 $8,327 4.0 $7,027 CZ05 PGE 12% 16% 451 117 $259 $7,806 $1,815 $2,754 2.8 $5,052 4.0 $8,096 CZ05 PGE/SCG 12% 16% 451 117 $207 $6,182 $1,815 $2,754 2.2 $3,427 4.0 $8,096 CZ06 SCE/SCG 9% 12% -163 104 $98 $3,449 $1,127 $1,859 1.9 $1,590 3.8 $5,035 CZ07 SDGE 11% 15% 74 106 $192 $6,131 $1,387 $2,198 2.8 $3,934 3.9 $6,204 CZ08 SCE/SCG 8% 14% 265 100 $154 $4,666 $1,516 $2,365 2.0 $2,301 4.0 $7,053 CZ09 SCE 7% 12% 60 100 $122 $3,930 $1,307 $2,093 1.9 $1,837 3.7 $5,636 CZ10 SCE/SCG 7% 13% 289 84 $131 $3,912 $1,266 $2,007 1.9 $1,905 3.9 $5,749 CZ10 SDGE 7% 13% 289 84 $238 $6,951 $1,266 $2,007 3.5 $4,945 3.9 $5,749 CZ11 PGE 8% 17% 1,091 92 $417 $10,990 $2,226 $3,256 3.4 $7,734 4.2 $10,472 CZ12 PGE 9% 16% 594 96 $263 $7,487 $1,712 $2,587 2.9 $4,901 4.3 $8,544 CZ12 SMUD/PGE 9% 16% 594 96 $260 $7,419 $1,712 $2,587 2.9 $4,889 4.3 $8,544 CZ13 PGE 7% 17% 1,036 88 $398 $10,479 $2,064 $3,045 3.4 $7,434 4.2 $9,715 CZ14 SCE/SCG 6% 11% 182 84 $102 $3,250 $1,170 $1,883 1.7 $1,368 4.0 $5,515 CZ14 SDGE 6% 11% 182 84 $194 $5,858 $1,170 $1,883 3.1 $3,975 4.0 $5,515 CZ15 SCE/SCG 3% 10% 387 65 $153 $4,119 $1,238 $1,971 2.1 $2,148 3.6 $4,998 CZ16 PG&E 9% 23% 1,007 142 $501 $13,864 ($2,682) ($3,275) >1 $17,139 >1 $16,140 California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 26 Results

4.3 Mixed Fuel Efficiency
Table 16 and Table 17 show results for the Mixed Fuel Efficiency packages. The packages are cost-effective based on at least one of the two metrics in Climate Zones 1, 2, 4, and 8 through 16 for the 3-story prototype and in Climate Zones 2, 4, 6, and 8 through 15 for the 5-story prototype. In all cases the NPV values, whether negative or positive, are small. The compliance impacts are also small.

A summary of measures included in each package is provided in Appendix 7.6 Summary of Measures by Package.

Table 16. 3-Story Cost-Effectiveness Results per Dwelling Unit: Mixed Fuel Efficiency Climate
Zone
Electric
/Gas Utility
Efficiency
TDV
Comp
Margin
Source
Comp
Margin
Annual
Elec
Savings
(kWh)
Annual
Gas
Savings
(therms)
Utility Cost
Savings Incremental Cost On-Bill TDV
First
Year
Lifecycle
(2022$)
First
Year
Lifecycle
(2022$)
B/C
Ratio NPV B/C
Ratio NPV
CZ01 PGE 1% 1% 41 0 $12 $273 $176 $176 1.6 $98 1.2 $38
CZ02 PGE 1% 0% 24 0 $7 $162 $132 $132 1.2 $30 1.5 $62
CZ03 PGE 1% 0% 17 0 $5 $111 $132 $132 0.8 ($21) 0.8 ($27) CZ04 PGE 1% 0% 21 0 $6 $141 $132 $132 1.1 $9 1.3 $46
CZ04 CPAU 1% 0% 21 0 $3 $74 $132 $132 0.6 ($58) 1.3 $46 CZ05 PGE 1% 0% 19 0 $5 $123 $132 $132 0.9 ($9) 0.8 ($32) CZ05 PGE/SCG 1% 0% 19 0 $5 $123 $132 $132 0.9 ($9) 0.8 ($32) CZ06 SCE/SCG 1% 0% 9 0 $2 $56 $132 $132 0.4 ($75) 0.7 ($44) CZ07 SDGE 0% 0% 7 0 $3 $72 $132 $132 0.5 ($60) 0.4 ($81) CZ08 SCE/SCG 1% 0% 20 0 $6 $140 $132 $132 1.1 $9 1.5 $59 CZ09 SCE 1% 0% 28 0 $8 $192 $146 $156 1.2 $36 1.6 $88
CZ10 SCE/SCG 3% 1% 65 0 $20 $447 $190 $199 2.2 $247 2.4 $277 CZ10 SDGE 3% 1% 65 0 $27 $683 $190 $199 3.4 $484 2.4 $277 CZ11 PGE 3% 1% 91 0 $30 $699 $190 $199 3.5 $499 3.5 $489 CZ12 PGE 2% 0% 98 0 $33 $766 $381 $514 1.5 $252 1.5 $273 CZ12 SMUD/PGE 2% 0% 98 0 $17 $396 $381 $514 0.8 ($118) 1.5 $273 CZ13 PGE 4% 1% 99 0 $33 $765 $190 $199 3.8 $566 3.9 $574 CZ14 SCE/SCG 3% 1% 88 0 $26 $585 $190 $199 2.9 $385 3.1 $427 CZ14 SDGE 3% 1% 88 0 $36 $886 $190 $199 4.4 $686 3.1 $427 CZ15 SCE/SCG 5% 2% 182 0 $54 $1,226 $190 $199 6.1 $1,026 5.8 $957 CZ16 PG&E 5% 4% 16 12 $34 $1,012 $712 $712 1.4 $300 1.3 $184 California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 27 Results
Table 17. 5-Story Cost-Effectiveness Results per Dwelling Unit: Mixed Fuel Efficiency Climate
Zone
Electric
/Gas Utility
Efficiency
TDV
Comp
Margin
Source
Comp
Margin
Annual
Elec
Savings
(kWh)
Annual
Gas
Savings
(therms)
Utility Cost
Savings Incremental Cost On-Bill TDV
First
Year
Lifecycle
(2022$)
First
Year
Lifecycle
(2022$)
B/C
Ratio NPV B/C
Ratio NPV
CZ01 PGE 0% 0% 5 0 $2 $39 $176 $176 0.2 ($137) 0.2 ($136) CZ02 PGE 1% 0% 11 0 $2 $38 $132 $132 0.3 ($94) 1.9 $118 CZ03 PGE 0% 0% 7 0 $2 $46 $132 $132 0.3 ($86) 0.8 ($23) CZ04 PGE 1% 0% 12 0 $2 $40 $132 $132 0.3 ($92) 1.9 $114 CZ04 CPAU 1% 0% 12 0 $2 $39 $132 $132 0.3 ($93) 1.9 $114 CZ05 PGE 0% 0% 6 0 $1 $17 $132 $132 0.1 ($114) 0.4 ($73) CZ05 PGE/SCG 0% 0% 6 0 $1 $17 $132 $132 0.1 ($114) 0.4 ($73) CZ06 SCE/SCG 0% 0% 12 0 $2 $51 $132 $132 0.4 ($81) 1.4 $49 CZ07 SDGE 0% 0% 10 0 $0 $0 $132 $132 0.0 ($132) 0.9 ($7) CZ08 SCE/SCG 1% 0% 24 0 $8 $184 $132 $132 1.4 $53 2.2 $152 CZ09 SCE 1% 0% 28 0 $4 $96 $142 $149 0.6 ($52) 2.1 $163 CZ10 SCE/SCG 2% 1% 66 0 $21 $491 $186 $192 2.6 $298 3.2 $425 CZ10 SDGE 2% 1% 66 0 $30 $751 $186 $192 3.9 $558 3.2 $425 CZ11 PGE 2% 1% 83 0 $29 $665 $186 $192 3.5 $473 4.2 $621 CZ12 PGE 2% 0% 84 0 $29 $681 $321 $414 1.6 $267 2.3 $546 CZ12 SMUD/PGE 2% 0% 84 0 $16 $372 $321 $414 0.9 ($42) 2.3 $546 CZ13 PGE 2% 1% 95 0 $33 $765 $186 $192 4.0 $573 4.9 $742 CZ14 SCE/SCG 2% 1% 75 0 $11 $246 $186 $192 1.3 $54 3.9 $561 CZ14 SDGE 2% 1% 75 0 $34 $847 $186 $192 4.4 $654 3.9 $561 CZ15 SCE/SCG 3% 2% 172 0 $55 $1,257 $186 $192 6.5 $1,065 7.3 $1,212 CZ16 PG&E 2% 2% 40 4 $23 $616 $665 $665 0.9 ($49) 0.999 ($0)

4.4 Mixed Fuel Plus PV (Plus Battery for the 3-Story Prototype) Table 18 presents the Mixed Fuel Efficiency + PV + Battery package for the 3-story prototype. The battery system is a 100kWh battery. This scenario is cost- effective for all climate zones and under both metrics except for On-Bill in Climate Zone 4 in CPAU territory. Table 19 presents the Mixed Fuel Efficiency + PV package for the 5-story prototype. This package is cost-effective under TDV in all climate zones and cost-effective On-Bill everywhere except in Climate Zones 6 and 7. In the cases where it is not cost-effective, it is very close to being so with small negative NPV. In Climate Zone 6 in the 5-story prototype there is no upgrade to the PV system capacity as the prescriptive PV system already offset all of the estimated electricity use.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 28 Results
Table 18. 3-Story Cost-Effectiveness Results per Dwelling Unit: Mixed Fuel Efficiency + PV + Battery Climate
Zone
Electric
/Gas Utility
Efficiency
TDV
Comp
Margin
Source
Comp
Margin
Annual
Elec
Savings
(kWh)
Annual
Gas
Savings
(therms)
Utility Cost
Savings Incremental Cost On-Bill TDV
First
Year
Lifecycle
(2022$)
First
Year
Lifecycle
(2022$)
B/C
Ratio NPV B/C
Ratio NPV
CZ01 PGE 1% 16% 2,068 0 $543 $12,588 $4,603 $6,917 1.8 $5,671 1.5 $3,724 CZ02 PGE 1% 16% 1,757 0 $462 $10,718 $3,881 $5,990 1.8 $4,728 1.6 $3,820 CZ03 PGE 1% 17% 1,624 0 $423 $9,797 $3,700 $5,754 1.7 $4,043 1.5 $3,157 CZ04 PGE 1% 17% 1,476 0 $383 $8,878 $3,518 $5,518 1.6 $3,360 1.6 $3,067 CZ04 CPAU 1% 17% 1,476 0 $171 $3,967 $3,518 $5,518 0.7 ($1,551) 1.6 $3,067 CZ05 PGE 1% 18% 1,520 0 $393 $9,107 $3,503 $5,498 1.7 $3,609 1.6 $3,526 CZ05 PGE/SCG 1% 18% 1,520 0 $393 $9,107 $3,503 $5,498 1.7 $3,609 1.6 $3,526 CZ06 SCE/SCG 1% 18% 1,112 0 $336 $7,677 $3,127 $5,009 1.5 $2,668 1.4 $1,917 CZ07 SDGE 0% 20% 1,431 0 $550 $13,713 $3,498 $5,493 2.5 $8,220 1.6 $3,159 CZ08 SCE/SCG 1% 18% 1,311 0 $413 $9,427 $3,328 $5,270 1.8 $4,156 1.4 $2,277 CZ09 SCE 1% 17% 1,129 0 $367 $8,375 $3,129 $5,017 1.7 $3,359 1.4 $1,937 CZ10 SCE/SCG 3% 19% 1,342 0 $420 $9,584 $3,321 $5,254 1.8 $4,331 1.5 $2,588 CZ10 SDGE 3% 19% 1,342 0 $533 $13,303 $3,321 $5,254 2.5 $8,049 1.5 $2,588 CZ11 PGE 3% 17% 1,833 0 $500 $11,587 $3,914 $6,025 1.9 $5,562 1.6 $3,852 CZ12 PGE 2% 17% 1,701 0 $442 $10,239 $3,926 $6,105 1.7 $4,133 1.6 $3,583 CZ12 SMUD/PGE 2% 17% 1,701 0 $285 $6,609 $3,926 $6,105 1.1 $503 1.6 $3,583 CZ13 PGE 4% 17% 1,568 0 $431 $9,983 $3,594 $5,609 1.8 $4,374 1.7 $3,944 CZ14 SCE/SCG 3% 19% 1,556 0 $477 $10,886 $3,388 $5,341 2.0 $5,545 1.6 $3,434 CZ14 SDGE 3% 19% 1,556 0 $607 $15,155 $3,388 $5,341 2.8 $9,815 1.6 $3,434 CZ15 SCE/SCG 5% 19% 1,241 0 $421 $9,616 $3,136 $5,013 1.9 $4,603 1.6 $3,076 CZ16 PG&E 5% 17% 1,286 12 $357 $8,508 $3,894 $5,833 1.5 $2,674 1.6 $3,219 California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 29 Results
Table 19. 5-Story Cost-Effectiveness Results per Dwelling Unit: Mixed Fuel Efficiency + PV Climate
Zone
Electric
/Gas Utility
Efficiency
TDV
Comp
Margin
Source
Comp
Margin
Annual
Elec
Savings
(kWh)
Annual
Gas
Savings
(therms)
Utility Cost
Savings Incremental Cost On-Bill TDV
First
Year
Lifecycle
(2022$)
First
Year
Lifecycle
(2022$)
B/C
Ratio NPV B/C
Ratio NPV
CZ01 PGE 0% 5% 1,446 0 $341 $7,917 $1,889 $2,403 3.3 $5,514 3.0 $4,757 CZ02 PGE 1% 2% 444 0 $55 $1,275 $567 $697 1.8 $578 4.4 $2,365 CZ03 PGE 0% 4% 693 0 $119 $2,766 $801 $1,002 2.8 $1,764 4.4 $3,423 CZ04 PGE 1% 1% 112 0 $14 $324 $226 $254 1.3 $69 3.5 $632 CZ04 CPAU 1% 1% 112 0 $13 $307 $226 $254 1.2 $53 3.5 $632 CZ05 PGE 0% 3% 464 0 $56 $1,310 $550 $676 1.9 $634 4.2 $2,165 CZ05 PGE/SCG 0% 3% 464 0 $56 $1,310 $550 $676 1.9 $634 4.2 $2,165 CZ06 SCE/SCG 0% 0% 12 0 $2 $51 $132 $132 0.4 ($81) 1.4 $49 CZ07 SDGE 0% 1% 95 0 $0 $0 $212 $237 0.0 ($237) 2.8 $423 CZ08 SCE/SCG 1% 3% 299 0 $42 $968 $388 $465 2.1 $504 4.3 $1,527 CZ09 SCE 1% 1% 99 0 $12 $284 $204 $230 1.2 $54 3.0 $465 CZ10 SCE/SCG 2% 3% 364 0 $57 $1,296 $450 $536 2.4 $759 4.2 $1,720 CZ10 SDGE 2% 3% 364 0 $103 $2,566 $450 $536 4.8 $2,030 4.2 $1,720 CZ11 PGE 2% 7% 1,178 0 $281 $6,521 $1,276 $1,610 4.1 $4,911 4.8 $6,162 CZ12 PGE 2% 4% 683 0 $120 $2,791 $898 $1,164 2.4 $1,627 4.2 $3,716 CZ12 SMUD/PGE 2% 4% 683 0 $102 $2,362 $898 $1,164 2.0 $1,198 4.2 $3,716 CZ13 PGE 2% 7% 1,137 0 $274 $6,347 $1,179 $1,484 4.3 $4,863 4.8 $5,599 CZ14 SCE/SCG 2% 2% 266 0 $33 $748 $342 $395 1.9 $353 4.7 $1,447 CZ14 SDGE 2% 2% 266 0 $62 $1,554 $342 $395 3.9 $1,158 4.7 $1,447 CZ15 SCE/SCG 3% 5% 567 0 $125 $2,851 $535 $646 4.4 $2,204 5.6 $2,994 CZ16 PG&E 2% 6% 1,051 4 $237 $5,569 $1,601 $1,883 3.0 $3,686 3.1 $4,011 California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 30 Results

4.5 CARE Rate Comparison
Table 20 presents a comparison of On-Bill cost-effectiveness results for CARE tariffs relative to standard tariffs for the all-electric prescriptive code case. The CARE rates apply to the apartment meters only and don’t impact the central water heating utility costs. Applying the CARE rates lowers both electric and gas utility bills for the consumer and the net impact for an all-electric building in most climate zones is lower overall bills and improved cost -effectiveness relative to the standard tariffs. Although not presented here, the all-electric + PV packages are all still On-Bill cost- effective using the CARE tariffs.

Table 20. On-Bill IOU Cost-Effectiveness Comparison with CARE Tariffs, Results per Dwelling Unit: All-Electric Prescriptive Code
Climate
Zone
Electric
/Gas Utility
3-Story 5-Story
Standard CARE Standard CARE
B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV CZ01 PGE 3.9 $1,247 9.5 $3,637 >1 $6,998 >1 $10,045
CZ02 PGE 1.0 $32 3.1 $2,139 0.7 ($375) 2.5 $1,831
CZ03 PGE 1.1 $119 3.1 $2,187 0.7 ($407) 2.6 $1,901
CZ04 PGE 0.9 ($108) 2.8 $1,884 1.8 $945 2.9 $2,218
CZ05 PGE 0.98 ($21) 3.0 $2,041 0.6 ($479) 2.5 $1,773
CZ05 PGE/SCG 0.0 ($1,545) 1.5 $517 0.0 ($2,103) 1.1 $148 CZ06 SCE/SCG 0.0 ($1,255) 0.9 ($57) 0.8 ($199) 2.1 $1,349 CZ07 SDGE 0.0 ($1,456) 1.8 $856 0.0 ($1,685) 1.3 $343
CZ08 SCE/SCG 0.0 ($1,331) 0.8 ($165) 0.0 ($1,829) 1.2 $271 CZ09 SCE 0.0 ($1,380) 0.8 ($204) 0.0 ($1,236) 1.6 $750
CZ10 SCE/SCG 0.0 ($1,758) 0.1 ($574) 0.0 ($2,445) 0.5 ($447) CZ10 SDGE 0.0 ($2,452) 0.8 ($162) 0.0 ($3,234) 0.0 ($1,590) CZ11 PGE 0.0 ($826) 2.7 $1,119 0.0 ($1,494) 1.7 $616
CZ12 PGE 0.0 ($719) 2.9 $1,263 0.0 ($1,358) 2.0 $793
CZ13 PGE 0.0 ($940) 2.4 $936 0.0 ($1,517) 1.6 $491
CZ14 SCE/SCG 0.0 ($2,063) 0.0 ($803) 0.0 ($2,916) 0.3 ($613) CZ14 SDGE 0.0 ($2,841) 0.0 ($3,407) 0.0 ($3,937) 1.1 $61 CZ15 SCE/SCG 0.0 ($2,053) 0.0 ($1,036) 0.0 ($2,606) 0.0 ($1,452) CZ16 PG&E 2.8 $1,917 >1 $5,527 9.1 $5,467 >1 $8,557
Error! Not a valid bookmark self-reference. presents the comparison for the mixed fuel efficiency and PV packages.

Generally, the opposite trend occurs here for the mixed fuel packages where the CARE rate lowers utility cost savings and the benefit-to-cost ratios decline.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 31 Results
Table 21. On-Bill IOU Cost-Effectiveness Comparison with CARE Tariffs, Results per Dwelling Unit: Mixed Fuel Packages
Climate
Zone
Electric
/Gas Utility
3-Story (Efficiency + PV + Battery) 5-Story (Efficiency + PV) Standard CARE Standard CARE
B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV CZ01 PGE 1.8 $5,671 1.2 $1,113 3.3 $5,514 2.2 $2,765
CZ02 PGE 1.8 $4,728 1.2 $907 1.8 $578 1.5 $337
CZ03 PGE 1.7 $4,043 1.1 $579 2.8 $1,764 2.0 $1,028
CZ04 PGE 1.6 $3,360 1.0 $259 1.3 $69 0.8 ($44)
CZ05 PGE 1.7 $3,609 1.1 $414 1.9 $634 1.7 $442
CZ05 PGE/SCG 1.7 $3,609 1.1 $414 1.9 $634 1.7 $442
CZ06 SCE/SCG 1.5 $2,668 0.9 ($515) 0.4 ($81) 0.3 ($92)
CZ07 SDGE 2.5 $8,220 1.7 $4,106 0.0 ($237) 0.0 ($237)
CZ08 SCE/SCG 1.8 $4,156 1.1 $446 2.1 $504 1.3 $137
CZ09 SCE 1.7 $3,359 0.99 ($26) 1.2 $54 0.9 ($28)
CZ10 SCE/SCG 1.8 $4,331 1.1 $577 2.4 $759 1.3 $180
CZ10 SDGE 2.5 $8,049 1.8 $4,180 4.8 $2,030 0.0 ($536)
CZ11 PGE 1.9 $5,562 1.2 $1,435 4.1 $4,911 2.7 $2,744
CZ12 PGE 1.7 $4,133 1.1 $517 2.4 $1,627 1.8 $905
CZ13 PGE 1.8 $4,374 1.2 $883 4.3 $4,863 2.9 $2,777
CZ14 SCE/SCG 2.0 $5,545 1.3 $1,395 1.9 $353 1.3 $136
CZ14 SDGE 2.8 $9,815 1.4 $2,292 3.9 $1,158 0.0 ($395)
CZ15 SCE/SCG 1.9 $4,603 1.2 $887 4.4 $2,204 1.9 $586
CZ16 PG&E 1.5 $2,674 0.97 ($162) 3.0 $3,686 2.0 $1,908

4.6 Greenhouse Gas Reductions
Figure 1 and Figure 2 compare greenhouse gas reductions across all the packages for the multifamily 3-story and 5- story prototypes, respectively. Savings represent average annual savings per dwelling unit over the 30- year lifetime of the analysis. Electrification of gas uses represents the greatest greenhouse gas reductions, followed by PV.

Greenhouse gas reductions are greatest for the all-electric + PV package.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 32 Results
Figure 1. 3-Story greenhouse gas reductions (metric tons) per dwelling unit

0.0 0.1

0.2 0.3

0.4 0.5

0.6 0.7

0.8 0.9

1.0 Greenhouse Gas Reducti ons (metric tons )
Mixed Fuel Eﬃciency
Mixed Fuel Eﬃciency + PV + Battery
All-Electric Code Minimum
All-Electric + PV
CZ01 CZ02 CZ03 CZ04 CZ05 CZ06 CZ07 CZ08 CZ09 CZ10 CZ11 CZ12 CZ13 CZ14 CZ15 CZ16 Figure 2. 5-Story greenhouse gas savings (metric tons) per dwelling unit

0.0 0.1

0.2 0.3

0.4 0.5

0.6 0.7

0.8 0.9

1.0 Greenhouse Gas Reducti ons (metric tons ) Mixed Fuel Eﬃciency Mixed Fuel Eﬃciency + PV
All-Electric Code Minimum
All-Electric + PV
CZ01 CZ02 CZ03 CZ04 CZ05 CZ06 CZ07 CZ08 CZ09 CZ10 CZ11 CZ12 CZ13 CZ14 CZ15 CZ16 California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 33 Summary
5 Summary
The Reach Codes Team identified packages of electrification and energy efficiency measures as well as packages combining these measures with solar PV generation and battery storage, simulated them using building modeling software, and gathered costs to determine the cost-effectiveness of multiple scenarios. The Reach Codes Team coordinated with multiple utilities, cities, and building community experts to develop a set of assumptions considered reasonable in the current market. Changing assumptions, such as the period of analysis, measure selection, cost assumptions, energy escalation rates, or utility tariffs are likely to change results.

Table 22 summarizes results for each prototype and depicts the efficiency TDV compliance margins achieved for each climate zone and package. Because local reach codes must both exceed the Energy Commission performance budget (i.e., have a positive compliance margin) and be cost-effective, the Reach Codes Team highlighted cells meeting these two requirements to help clarify the upper boundary for potential reach code policies . All results presented in this study have a positive compliance margin.
• Cells highlighted in green depict cases with a positive compliance margin and cost-effective results using both On-Bill and TDV approaches.
• Cells highlighted in yellow depict cases with a positive compliance margin and cost-effective results using either the On-Bill or TDV approach.
• Cells not highlighted depict cases with a positive compliance margin but that were not cost-effective using either the On-Bill or TDV approach.

Following are key takeaways and recommendations from the analysis. • The Reach Codes Team found all-electric new construction to be feasible and cost-effective based on the California Energy Commission’s Time Dependent Valuation (TDV) metric in all cases. In many cases all - electric prescriptive code construction results in an increase in utility costs and is not cost-effective On-Bill.

Some exceptions include the SMUD and CPAU territories where lower electricity rates relative to gas rates result in lower overall utility bills.
• All-electric packages have lower GHG emissions than mixed fuel packages in all cases, due to the clean power sources currently available from California’s power providers. • The 2022 Energy Code’s new source energy metric combined with the heat pump space heating baseline in most climate zones encourages all-electric construction. While the code does not include an electric baseline for water heating, the penalty for central electric water heating observed in the performance approach in past code cycles has been removed and a credit is provided for well-designed central heat pump water heaters in most cases.
• Electrification combined with increased PV capacity results in utility cost savings and was found to be On- Bill cost-effective in all cases.
• The results in this study are based on today’s net energy metering (NEM 2.0) rules and do not account for recently approved changes to the NEM tariff (referred to as the net billing tariff). The net billing tariff decreases the value of PV to the consumer as compared to NEM 2.0. As a result, the cost-effectiveness of the packages that include above-code PV capacity is expected to be less under the net billing tariff. Conversely, the net billing tariff is expected to increase On-Bill cost-effectiveness of the all-electric prescriptive code scenario. An all-electric home has better on-site utilization of generated electricity from PV than a mixed fuel home with a similar sized PV system, and as a result exports less electricity to the grid. Since the net -billing tariff values exports less than under NEM 2.0, the relative impact on annual utility costs to the mixed fuel baseline is greater.
• This analysis does justify requiring a modest reach based on either efficiency TDV or source energy for all- electric buildings. However, this may be challenging for some projects given the recent changes to which the industry must adapt, including the efficiency updates and multifamily restructuring in the 2022 Title 24, Part 6 code. While project compliance margins using a CO
2 refrigerant heat pump water heating system are high, the Reach Code Team found lower compliance margins using other heat pump water heater system designs.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 34 Summary
Focusing on supporting projects to electrify water heating is expected to support the market shift towards more central heat pump water heaters.
• For jurisdictions interested in a reach code that allows for mixed fuel buildings, a mixed fuel efficiency and PV package (and battery for the 3-story prototype) was found to be cost-effective based on TDV in all cases and cost-effective On-Bill in most climate zones. This path, referred to as “Electric-Preferred”, allows for mixed fuel buildings but requires a higher building performance than for all-electric buildings. The efficiency measures evaluated in this study did not provide significant compliance benefit. As a result, the Reach Codes Team recommends establishing a compliance margin target based on source energy or total TDV. This would allow for PV and battery above minimum code requirements to be used to meet the target. • Jurisdictions interested in increasing affordable multifamily housing should know that applying the CARE rates has the overall impact of increasing utility cost savings for an all-electric building in most climate zones compared to a code compliant mixed fuel building, improving On-Bill cost-effectiveness.

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. Reach codes that amend Part 6 of the California 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.

Table 22. Summary of Efficiency TDV Compliance Margins and Cost-Effectiveness Climate
Zone
Electric
/Gas Utility
3-Story 5-Story
All-Electric
Prescriptive
Code
All-
Electric
+ PV
Mixed
Fuel
Efficiency
Mixed
Fuel
Efficiency
+ PV +
Battery
All-Electric
Prescriptive
Code
All-
Electric
+ PV
Mixed
Fuel
Efficiency
Mixed
Fuel
Efficiency
+ PV
CZ01 PGE 26% 26% 1% 1% 14% 14% 0% 0%
CZ02 PGE 20% 20% 1% 1% 9% 9% 1% 1%
CZ03 PGE 21% 21% 1% 1% 11% 11% 0% 0%
CZ04 PGE 18% 18% 1% 1% 9% 9% 1% 1%
CZ04 CPAU 18% 18% 1% 1% 9% 9% 1% 1%
CZ05 PGE 23% 23% 1% 1% 12% 12% 0% 0%
CZ05 PGE/SCG 23% 23% 1% 1% 12% 12% 0% 0%
CZ06 SCE/SCG 18% 18% 1% 1% 9% 9% 0% 0%
CZ07 SDGE 20% 20% 0% 0% 11% 11% 0% 0%
CZ08 SCE/SCG 13% 13% 1% 1% 8% 8% 1% 1%
CZ09 SCE 13% 13% 1% 1% 7% 7% 1% 1%
CZ10 SCE/SCG 14% 14% 3% 3% 7% 7% 2% 2%
CZ10 SDGE 14% 14% 3% 3% 7% 7% 2% 2%
CZ11 PGE 14% 14% 3% 3% 8% 8% 2% 2%
CZ12 PGE 17% 17% 2% 2% 9% 9% 2% 2%
CZ12 SMUD/PGE 17% 17% 2% 2% 9% 9% 2% 2%
CZ13 PGE 13% 13% 4% 4% 7% 7% 2% 2%
CZ14 SCE/SCG 13% 13% 3% 3% 6% 6% 2% 2%
CZ14 SDGE 13% 13% 3% 3% 6% 6% 2% 2%
CZ15 SCE/SCG 5% 5% 5% 5% 3% 3% 3% 3%
CZ16 PG&E 24% 24% 5% 5% 9% 9% 2% 2%
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 35 References
6 References
Barbose, G., Darghouth, N., O'Shaughnessy, E., & Forrester, S. (2022, October). Tracking the Sun. Pricing and Design Trends for Distributed Photovoltaic Systems in the United States 2022 Edition. Retrieved from https://emp.lbl.gov/tracking-the-sun
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. (2022a). 2022 Building Energy Efficiency Standards for Residential and Nonresidential Buildings. CEC-400-2022-010-CMF. Retrieved from https://www.energy.ca.gov/sites/default/files/2022- 12/CEC-400-2022-010_CMF.pdf
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 Public Utilities Commission. (2021a). Utility Costs and Affordability of the Grid of the Future: An Evaluation of Electric Costs, Rates, and Equity Issues Pursuant to P.U. Code Section 913.1. Retrieved from https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/office-of-governmental-affairs- division/reports/2021/senate-bill-695-report-2021-and-en-banc-whitepaper_final_04302021.pdf California Public Utilities Commission. (2021b). Database for Energy-Efficient resources (DEER2021 Update). Retrieved April 13, 2021, from http://www.deeresources.com/index.php/deer-versions/deer2021 California Public Utilities Commission. (2022). Proposed Decision Rulemaking 19-01-011: PHASE III DECISION ELIMINATING GAS LINE EXTENSION ALLOWANCES. Retrieved from https://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M496/K876/496876177.PDF E-CFR. (2020). https://www.ecfr.gov/cgi-
bin/retrieveECFR?gp=&SID=8de751f141aaa1c1c9833b36156faf67&mc=true&n=pt10.3.431&r=PART&ty=HTM L#se10.3.431_197. Retrieved from Electronic Code of Federal Regulations: https://www.ecfr.gov/cgi- bin/retrieveECFR?gp=&SID=8de751f141aaa1c1c9833b36156faf67&mc=true&n=pt10.3.431&r=PART&ty=HTM L#se10.3.431_197
Energy + Environmental Economics. (2020). Time Dependent Valuation of Energy for Developing Building Efficiency Standards: 2022 Time Dependent Valuation (TDV) and Source Energy Metric Data Sources and Inputs.

E-Source companies. (2020). Behind-the-Meter Battery Market Study. Prepared for San Diego Gas & Electric.

Retrieved from https://www.etcc-ca.com/reports/behind-meter-battery-market-study?dl=1582149166 Horii, B., Cutter, E., Kapur, N., Arent, J., & Conotyannis, D. (2014). Time Dependent Valuation of Energy for Developing Building Energy Efficiency Standards.

Statewide CASE Team. (2018). Energy Savings Potential and Cost-Effectiveness Analysis of High Efficiency Windows in California. Prepared by Frontier Energy. Retrieved from https://www.etcc-ca.com/reports/energy-savings- potential-and-cost-effectiveness-analysis-high-efficiency-windows-california Statewide CASE Team. (2020a). Nonresidential High Performance Envelope Codes and Standards Enhancement (CASE) Initiative 2022 California Energy Code. Prepared by Energy Solutions. Retrieved from https://title24stakeholders.com/wp-content/uploads/2020/10/2020-T24-NR-HP-Envelope-Final-CASE- Report.pdf
Statewide CASE Team. (2020b). Residential Energy Savings and Process Improvements for Additions and Alterations Codes and Standards Enhancement (CASE) Initiative 2022 California Energy Code. Prepared by Frontier California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 36 References
Energy. Retrieved from https://title24stakeholders.com/wp-content/uploads/2020/08/SF-Additions-and- Alterations_Final_-CASE-Report_Statewide-CASE-Team.pdf
Statewide CASE Team. (2020c). Multifamily All-Electric Codes and Standards Enhancement (CASE) Initiative 2022 California Energy Code. Prepared by TRC.

Statewide Reach Codes Team. (2020). 2019 Mid-Rise New Construction Reach Code Cost-Effectiveness Study.

Prepared by Frontier Energy, Misti Bruceri & Associates, and EnergySoft. Retrieved from https://localenergycodes.com/download/492/file_path/fieldList/2019%20Mid-rise%20NC%20Cost- Eff%20Report.pdf
Statewide Reach Codes Team. (2021). 2019 Cost-Effectiveness Study: 2020 Analysis of High-Rise Residential New Construction. Prepared by Frontier Energy and Misti Bruceri & Associates. Retrieved from https://www.localenergycodes.com/download/737/file_path/fieldList/2019%20High-Rise%20NC-Cost- Eff%20Report-2021-02-22.pdf
Statewide Reach Codes Team. (2022a). 2022 Cost-Effectiveness Study: Single Family new Construction. Prepared by Frontier Energy and Misti Bruceri & Associates. Retrieved from California Energy Codes & Standards:
https://localenergycodes.com/content/resources
Statewide Reach Codes Team. (2022b). Nonresidential New Construction Reach Code Cost-effectiveness Study.

Prepared by Avani Goyal, Farhad Farahmand, TRC Companies. Retrieved from California Energy Codes & Standards: https://localenergycodes.com/content/resources TRC. (2018 ). 2019 Title 24 Energy Reach Code Cost-Effectiveness Analysis Draft. City of Palo Alto. Retrieved from https://cityofpaloalto.org/civicax/filebank/documents/66742 TRC. (2019). Multifamily Prototypes. Prepared for Southern California Edison. Retrieved from https://title24stakeholders.com/wp-content/uploads/2019/06/SCE- MFModeling_MultifamilyPrototypesReport_2019-06-07_clean.pdf California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Climate Zones
California, 2017
cJ Building Climate Zones
LJ County Boundary
SoorCEi: California Energy Commission
100 200
Miles
Cost Effectiveness Analysis: Single Family New Construction 37 Appendices
7 Appendices

7.1 Map of California Climate Zones
Climate zone geographical boundaries are depicted in Figure 3. The map in Figure 3 along with a zip-code search directory is available at: https://ww2.energy.ca.gov/maps/renewable/building_climate_zones.html Figure 3. Map of California climate zones.

California Energy Codes & Standards | A statewide utility program 2023-06-20

-
202.2 Electric Californ ia Climate Credit Schedule
PG&E
SCE
SDG&E
April
$39.30
$59.00
May June July Aug Sept
$64 .17 $64 .17
Residential Natural Gas California Climate Credit
The 2022 Natu ral Gas Californ ia Climate Credit is dist ributed in April. 201st: 2019 2020 2021 2022 Total Value Received Per House hold 2018 -2022 PG&E $30 $25 $27 $25 $47.83 $154
SDG&E $34 $21 $18 $43.06 $116
Southwest Gas $22 $25 $27 $28 $49.44 $150
SoCalGas $SO $26 $22 $44.17 $14 2
Oct
$39.30
$59.00
Cost Effectiveness Analysis: Single Family New Construction 38 Appendices

7.2 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 2022 credits shows below.9 The credits were applied to reduce the total calculated annual bill, including any fixed fees or minimum bill amounts.

Electricity rates reflect the most recent approved tariffs. Monthly gas rates were estimated based on the latest available gas rate (December 2022) 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 2012 and 2022 (between 2020 and 2022 for CPAU). 12-month curves were created from monthly gas rates for each of the eleven years (three 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 (December 2022), and then using the normalized curve to estimate the cost for the remaining months relative to the reference point rate . 9 https://www.cpuc.ca.gov/industries-and-topics/natural-gas/greenhouse-gas-cap-and-trade-program/california-climate- credit
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 39 Appendices

7.2.1 Pacific Gas & Electric
The following pages provide details on the PG&E electricity and natural gas tariffs applied in this study. Error! Reference source not found. describes the baseline territories that were assumed for each climate zone. A net surplus compensation rate of $0.0474/ kWh was applied to any net annual electricity generation based on a one-year average of the rates between November 2021 and October 2022.

Table 23. 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 Error! Reference source not found.. These are applied to both the G-1 and GM rates. These rates are based on applying a normalization curve to the December 2022 tariff based on eleven years of historical gas data. See the beginning of Section Error! Reference source not found. Error! Reference source not found. for further details. The corresponding CARE rates are shown in Error! Reference source not found. and reflect the 20 percent discount per the GL-1 tariff. The GM master metered wather heating baseline quantity of 0.43 therms per dwelling unit per day in all baseline territories and in both seasons was applied to the centrally metered gas water heating.

Table 24. PG&E Monthly Gas Rate ($/therm)
Month Total Charge
Baseline Excess
January $2.20579 $2.66008
February $2.24291 $2.69637
March $2.11750 $2.58278
April $2.08101 $2.55500
May $2.08062 $2.55844
June $2.09104 $2.56928
July $2.10404 $2.58189
August $2.15162 $2.63251
September $2.18718 $2.67910
October $2.23153 $2.71934
November $2.32121 $2.79158
December $2.34123 $2.80922
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
idential
GAS
Baseline Territories and Quantities 11
Effective A~ril 1 2022 - Present ~----------~
BAS ELINE QUANTITIES (Therms Pe r Day Per Dwelling Unit) Individual!}' Metered
Baseline Summer Winter 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, Jan
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, 2022

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)
Effect ive Dec. 1, 2022

1.13 0.77

1.16 0.65

1.10 1.32

0.87 0.77

1.13 Cost Effectiveness Analysis: Single Family New Construction 40 Appendices
Table 25. PG&E Monthly CARE (GL-1) Gas Rate ($/therm)
Month Total CARE Charge
Baseline Excess
January $1.76463 $2.12806
February $1.79433 $2.15710
March $1.69400 $2.06622
April $1.66480 $2.04400
May $1.66449 $2.04675
June $1.67283 $2.05543
July $1.68323 $2.06551
August $1.72129 $2.10601
September $1.74974 $2.14328
October $1.78523 $2.17547
November $1.85697 $2.23327
December $1.87298 $2.24738
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Gas and
Eler:tlia Campany·
Revised
Cancelling Revised
Cal. P. u. C. Shem No.
car. P.u.c. Sl'lt!!ttt No.

U 39 Sall f°la l'IC!SOO, California
EI.ECTIRil,C SCHEDULE IE-TOUl C Sheel .2
RBSIOBNT !AL Tlt.1 E-OF-USE (PEAK M lC l G 4 - ll p.m. EVBRY DAY) RATES:
(Ccmf d.)
IE-TOU..,C TOTA11. BU N:DLE!li> RAT1ES
lill)tal EnB'1,gri, Rates (S per kWih) PEAK
Summer
Talal Usage S0.48002 (lj
!Baselin e Credil (Applied to IBasel'ine Usage O ly) (S.0.09054) (Rj Wl"tl14!f
Talall Usage S0..39'193 (lj
!Baseline Credit (Applied to IBaselins Usage O ly) ( S0.09054) lRj D ivery !Minim um IBill Amount ($ per meter per day )
Calif'omia Climate Credit (plll" h11U5E!hokl, per semi .annual payment OID.!lning ·n the April and October bill ,c~clesl
S0..34S10
($31l.30)

OFF-PEAK
S0.4255S (I)
(S0.00054 ) (R)
S0.37460 (I)
(S0.00054 ) (R)
53472--E
527,02-E
liola l bu dJed .sB11Vlcs cha:r,ges shown on 1.;usromB'I's bilfs. are unbundled a=rding lo the oompone:n l rates. shown below. Wihar,s !he deliivery ·ninwm bil am oont applies, lhe cusrome1's bi'll wil eQUal the sum ol' ("1) lhede lwery mi inwm I amoun t plus (2) ror txmd lEKI senf,ic;e, lhe generation rate limes the numblll" ,or kWh used. For revB'nue acoo1111Ung p1.1rposes, the rsvenue<s from Ins defivery minimum trill amoon will be assig110d kl the Transmiassocin, rans;mission Rate Adjµ slmanls, Reliabaity Servi~.

Public P urpose Progra ms. Nuci'ear Decomm issioning, Gompe1Jil0Cln Transition C!ha:r,ges, Brlergil' Cost Recov ery Amoonl:, W"ldfil,s Fund Char,ge, a d INsw Srirs am Generation Charges based ,cm kWih usage limes lhe ,001J,asponding unbund led rate oompo nen peT kW , wiTh an.y res:iclll.lBI revenue ass'ig110d to Distrioolioo.
.Advice 6603~6-A
Dec:isron
Issued oy·
Ro.beds. Kenn&y
ltic-e Pnsid-al'lt. Regulatory .Affairs
SuOmitted
Elfsl:tive
RffduJio dl
(Continued )
Ma y 3 1, 2022
June t, 2022
Cost Effectiveness Analysis: Single Family New Construction 41 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Gas and
Ele.ctric Company·
Rev'ised
Cam;~Ilmg Rev'ised
Cal. P. !.I. C. She! No.

Cal. P.!.I.C. Shet!it No.
534 74-E
50175-E
I.I 39 San Ftanciti:o. CaliJomia
SPECJ.AJ..

CONDITIO S:

E:l!ECT1RilC SCHEDULE IE-TOU--C Sh.ee-1:4
RESIDENH.AJ.. 11IME-0F-USE (PEAK PR[C [NG 4 - Q p!m. EVEIRY DA YI ·1. BASBL JNEJTl ER 1) QUANTITIES : The fdlh:,win1;1 quan'liitie:s-ol ,ef.eclrimy .are lo, lie, U5Ed lei · EHID9 usagie ,el'igtble for U,e, lla:sel in.e cred it BASEL ITIES j!Wh P.ER DAY!
Code H- AII-Eleo'liic
QlJa:nlitie:s.

Ba:seline Sum mer Winie r Summer Winter
T,B'1rilo!z:" Tie:r 1 Tier 1 Tier 1 liie r '1
p 13.5 (R) 11.0 (R) 15.2 (IRJ 26.0 (R)
a 9..8, (R) 11 .0 (R) !LS (IRl 26.0 (R)
R 17.7 (R) 10A (R) 1•!:i.9 (IRl 26.7 (R)
$ 15.0 (R) 10.2 (R.) 11.a (IRJ 23.7 (R)
T 6.S (R) 7.5 (R) 7.1 (IRJ 12.9 (R)
V 7 .. 1 (R) ,8.1 (R) 110.4 (IR) 19.1 (I)
w 19..2 (R) •ri.a (R) .22.4 (IR) 11l0 (R)
X 9.8 (R) ·1n (R) !LS (IRJ 14.6 (R)
y 10.5 (R) 1·1.1 (R) 12.0 (IR) 24.0 (R)
z 5.9 (R) 1.a (R) 6..7 (IRl 15.7 (R)

2. TIME PERIODS FOR E-TOU-C : Time:s ol lhe year aoo liima<S o'f lhe day are defined a:s folkiws:

Sum ma: (.serv1DB 'fl'Olliil Jlun.e 1 lhro u!jh SB'plElmbB'1· 301:

P,eal<:

Off~Pea'k.:
4l00 p.m. to lloOO p.m.

All Ci'thB'I lime:s.

All days
Winter {serv.ice, trnm October 1 Dirou1;1h May 31),:

Olf~Pea'k.:
4100 p!m. to lloOO pJm.

All othe:r lime:s
All days
The, app icati le a'SElline, IBRilolly is de:smc edl in IParl A of lihe, Pral iminary SLatem B711 Adv~ 66133-E-A
!JedfilM
lssued'by
Robert S. Kenney
Vice PntsidanJ, RegulafOJY Affairs
Su-omitted
~tive
Re.solution
(ConlimJed)
May 31, 2022
June, 1. 2022
Cost Effectiveness Analysis: Single Family New Construction 42 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
6as,and
Electric Company·
R~dl
Canc-elling Rlh!iisedl
c.a,. p_u_c_ Slli,.et Mi
Cal. P_LJ_C. Slli,.et Mi
Ell.!E,CTRIC sc,111EIJ'l!JI.E D'--CA!RE. SM - '1
53424-E
52653.--E
UNE-ITBM mSCOUNT FOR CAUFOR IA AL11ERNATE RATES FOR 8 ERGY (C-ARE)

CUSTOMERS
Al-'t-'LJCA/1:UUI rY: r IS SCMcllJU IS appDOaD'IB 10 :sm91e-p.nase ana p!llyJ»iil.$:6 reSICll!nMI S8:Mte n single-f:am·. dwelling,s arid in rtars arid .apa:rtmia-nlS sepa:ralety mate:red by PG&E artd do-mes'liit sutm'i- ered IBll'iants ,e:socliog ~- m tifa ---,.,. aCJtommacialiort:s, ma letiome parks andl o quar ymg i-ecreatiO - - ve1iicle pa -. artd marinas and to ra:rm SEHYice on Iha pr,a-mise<S operalea l:Jy t:.he pa: son whose msoclem:e • • • su~lled lhroogli t:.he S;ame meter, wllere the a~lieant quar ·Bs •for Ca'lii'cm'iliBJ Allemale RalB'S i01r IEnBFgy (CARE) urtda: Ifie eligilrulily anc:I i:ertifica1ion orila1iBJ sel forth in E'leciJ,ic Ru a '1 Q_ 1 .. CARE senfilOB is avaitable on Sdie dl!lles E-1, E-'6, E-TOIUl-8, E-TOU-C, IE-TOU-[) , EV.2, EM, ES, ESR, ET artd EMl-TOIi.i_ TERRITORY: This rate sch.ed·uo· appl'les,ii!liei)l'tll'J7ere PG&E p,,OVJd'es,efeciriit: sen,,n _

SPECIAL
CONDITIONS:

C\!ISICNifiBrs lall!iii9 .SSMCB on 1rns fa! e sciieduJe wi'II rec91,\re .BJ P9"1CB11l89B diSCOOl'i!:
rA" below) ,on t:.heir Iola! burtdled ,ch.arge<S o • lheif ot:.herWiise .ap, - icable ate sdiedute (e.XCS'pl (or the Ca1ifomia Olimale Cl',edil, 'niliidi w rtol be diswunledl- ln ad'oi io~ ,cuslome.rs wil re;te-i,..e a peri:ertlag -. diismunl. (i B" below) on Ina aef'iVery mirtimum b" ama nl I a~licable _ The CARE diswu -1 w\il be 1caloutaled oo aired. acoess Biidl w mmun:ity diai.oe .agg ,e-gatian mslO!n'ierS ba.<M!d on ll'ie 01.:al ciia,ges as ir li'he,y were subjecl lo bu.nd ed senfi1ee rat!!!<&. [)isroul'il't& w· 1 be ap,pilied as a resicftJal r,eoudli.on lo dis ·bwon oha~:s. aft.er ID-CARE ,custom · s .are eiriemp ea •fr,OUiiii Ifie Wildflre Fund Charge, Rewvery Bartel Oharge, Recovery Bond Cf-Mil and t:.he CARE sure -rge portioo or t:.he pu.blic pUipose prog,am dharg~ usiro to, fuoo Iii.@ CARE clismu -•. Tttese roooililiuis. B'lso appl~ to, rni!isler-rne"terecl wstomer:s. anti lo quafjfied sub--melBf,ed 1:ertants whe: ,e IDs masler-meler cuslome r iiS .fpintily sef'\tedl unda-r PG&E"s Rale Schedul'.e [)-CARE and eilher Schedule EM, ES, ESR, ET, or EM-TOU.

For master-melei-edl wstomera wilie: ,a Orte m MOfe ,of IM submeteredl la'Jila:nlS quar s for CARE rates und1 r t:.he er19iDility and oerlifIOatirm ,crile1ia sel l'orlh in Rule Hl.1, 19.2 (if 1'9.3, Ina CARE diswu -I • equa'l flO, .BJ percentage ("C" below) orlna lolal l:J died ,ch.:arga<&, mullip'rn di Iii',' "a nu ·-'ber of CARE u ··ts divioed by he Iola.I n -bar of' uni15.. 111 .addJtion, masllr. '-lfii'I si,ed ,cu:slom a: s eligiD'le fur D-CARE w ll reDiii\le .BJ p!i1,0B'.nlage discoortt r [)" beklwl on Ina d'.elii'very mirtllililllffli bill amounl, • • .appilica'!JL
II iS Ifie respo -si • ity of the ma:sler -fiieteJ,ed ,cu,stomer to, adYise PG&E wi.1hin 15 d"'~· toUowirig <!!fi'I' cllii!irigl!> i'n lnl!> l'ilumbe r ~ dwell ing u11b ;;. an<lfc>r i!in)' dil!i-- in lhe i\umb - • or qual'ifv,i1¥.1 CARE appJiicartls th.al ,B'Sulls when such appliit:artts move ou ,o'f their s bmeler,ed or on-:s:ubutlatered dwell ing u.nu, ,or SJUl'.im - -er,Bd pem'iane.nkesioa-J1ce RV or permarteiil:-residenoe ooa'I.

A_ D-CARE Oiwoortt
e_ Delivery Minfmum Bia Discautil::

C. Mas S'i:..M'.eler ID-CARE D iSCDUrtt
D. t. :as lr. :..t.l:elBf Del'iiiery t. rtimum
Bil rnsoourtt
34,.947 % Wer,cenl) (I)

50.000 % ~P ·-cent)

34.947 % Wei-,cenl) (I)

50.000 % Wmcenl)

1. OTHERWISE APP UCA!BLE SCHE[)ULE: TliB Special Condltioos of the C\Jslomers othe~ .appli~ te rate :roh.edul'.e wiU a~ly lo lh'is :sd'iedule. (Cort'lfrnuecl)
Adllrics
O!t.ci:Sl'M
6603.--E-A t:ssuadlif
RObert S. Kenney
Strbmffti,d
Eftt!.ctid
~:Solution
May 31 , 2002
June 1, 2002
'V.ioe1 Pri,.sJ"dMI, Ri,gulaJDrf A11airs
Cost Effectiveness Analysis: Single Family New Construction 43 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

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

17.2 17.9
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 lime periods are defined as follows:

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

Winter Daily Allocations (October through May)
All-
Daily kWh Electric
Baseline Region Number Allocation Allocat ion
5 18.7 29.1
6 11.3 13.0
8 10.6 12.7
9 12.3 14.3
10 12.5 17.0
13 12.6 24.3
14 12.0 21 .3
15 99 18.2
16 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 N/A N/A
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. N/A 8 a_m_ - 4 p.m.

CPP Event 4 p.m. - 9 p.m. 4 p.m. - 9 p_m_ N/A N/A Period Cost Effectiveness Analysis: Single Family New Construction 44 Appendices

7.2.2 Southern California Edison
The following pages provide details on are the SCE electricity tariffs applied in this study. Error! Reference source not found. describes the baseline territories that were assumed for each climate zone. A net surplus compensation rate of $ 0.04361/ kWh was applied to any net annual electricity generation based on a one- year average of the rates between November 2021 and October 2022
Table 26: 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 2023-06-20

-
oulllem Caliior ia Edis,o.n Revised.

Rosemead., California (U 338:-E) Cartc e l □ 11g Revised Cal PUC S/heet ~,lo_
Cal. PUC S/heet No.
74502-E
73%!'.-E
RATES
Scliledule TO U-D
TIME-O f .JUSE
DOl~ESTIC
(Co lirmed)
Sheet 2
Cu.slo e.rs recewi:ng service uruler • his Sclledu'le wirl be charged Ille appllcable rates u11der 0 1) io11 4~9 PM, 0 ton 4-9 PM~CPP, Optiio:n 5-3 PM, OiPtion 5-3 PM~CPP, Option PRIME, Optio.n PRIME-CAP Oplioo A, OiP ton A.-CPP , Op ioo B, or OiPtion B0 0 PP, as, [listed beloI1,1 _ CPP Eve:nt Charges, will apply lo a[I energy usage <fuii11g G RP Evant E11e:rgy Ch)a, ge periods an:d CPP No -Event Ernergiy Gr,edils wil apply as, a r,ed'ucfam oo CPP Non-Ev,ent BnergiY Credil: Periods, d111in,91 Summer Season d.ays, 4:001 p.m. to 9:00 p.m., as desm"bed in Special OondiliolliS 1 an,dl 3, below:

E-?i~r-: c n~~e -· '.$/d a y
- 0 .r...@e!!
I .-@e?!k
Oft:' e ?L
'"" g l~ ',!lm lfy IF..~ld Cl"l Cl::

L\1 ':'I-F',:m1lfy IF..e:sldCl'l Cl::

M lr:l.YTilJ C:t~ I:"'· -';.tc\!ly
$ In etc ·a mJfy n.,e:s. :le rt c.e
1M ut:J.E=',!I fy n.,e:sJ:le r. c.e
M l C l"'~ ~ (M I!! :llc~ I 9.~si:: --· - ,- ?I Y
S ir. gte f ",!lmlfy it•~ }:ie r. ce
M i.rl':1-F',!lm lfy ne:s. ):I C l"l Cl::

Wi11: -
M eixlm m A v~; :Ible. C r~ r . • $J'kY«l-'-•-
g mm eir ~::1so
O.:Z5'~:ZO 0 .1 2:3!:i 0 ) 11.00 [!,DO

0.25 . 7 1 (I) 11.10198 lL"-l 0 .00 [!,DQ
D.23 ':ICf (I) a.as.as m 11.00[!,DO
.05'DSS) (I} II • ODDO
0 .[I 1 1 (I)
D.(131
D.C1~
D.a.46
O.a.46
D.1 3
D.1 J
;;,_ a, □ )
1 [!,Q.l]Q -
1DD. [!oD
.soc ao
. 15170)
(0 .SC 56 (I)
~ _ ·-· Che -~•-
Bel"l1ce}
!~= .:::i . ~ c-·n ;.;s.... ~~~ tt~ l:)V.fRE-C ~s.
,2 . ~ S ~N lte. USi ,l:J ffl :e:~!!! E1~ec • C :::i n::i Y. n !:J!!!I~• ti: PCf.-~ !!!C "eif'J. :! E ~ }' Cr_ r. - Fe m i:-!!! I ti "IS, Y. itin tit?-: \ fR 1: e~ :, Cr~::ilt, ~~ the· EIDn-::, C;!:._CUl!!tk 8~c • (To be illiSerled by ulil ily)
Ad'ivioe _·...c.48c..c64-c...'·c...E=------
Decistan 22-0!'.-001
(Ganl[n u:ed}
lssu:ed. by
Moc:hael IBack'§:trom
Vice.fl esidenl
(To be i11serte<l by Call PUC)
Date Submitted Se , 15 2022
E""ecUve O ct 1, 20.22
Rlesolulio11
Cost Effectiveness Analysis: Single Family New Construction 45 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
oulhem Cali:1,ornia Edis,wi Revised Cal PUC Sheet No. 74495-E Rosemead!, Calif ornia (U 318-E) Cancelti111 g R evised Cal. PUC Sheet No. 73964-E Sclhedule 0-CAP.E Sheet 1
CALJIFORN IA AL TBR!NATE RA TES FOR ENERGY

DOMESTIC SERVICE
Af PUCABILIIY
App icable l.o do estic s-erv[oe t,o CARE houselw lds residing in a pem1,me t S:i111gleJf ami&y Accommod ation or Mullifarnrl','· Acoommodatio111 where Ute oustorner meels all th,e Special Condilfwis o • ~hjs Sch-eoute. Customers em,olled irn Ill e CARE program are 111ot ,eligib e • or ~ e Fa ·1y Bleclric Rale Assislance (FBRA) prOiJram.

Pur.manl. lo Special Oond"rlion 12 herein, cuslomers receiiving se.rvice under ~iiS Sdh.edule are eligrb'le lo receive th:e Cal'ifomia Clrmale Credit as sh,own in Ille Rates seclian belbw.

TERRffORY
Viii hin lhe entire lerrilory served.

RATES
The appl1cable charges sel for11n in Sdheoure D shall a,ppfy lo C'IJ.stomers sierved ncler lil is Sich,edu e.

CARE Dfiscou111t:

A 28.9 percenl disicount is appli'ecl lo a CARE Cusl.omers bill pll'ior lo lhe ap;pticalio.n of Ille Pub'.li.c UI ilfes (R) Cornrniss·o:n R!eiimburs,emenl Fee (PUCRF) and any aAplic.rb e user ee taG<es, and la e pa','menl ch arges. C:AR!E C11s,torners are req;uir-ed to pay ~he PUCRF and any applicallle user fees, tac<es, and !ate paymenl. ch .rrges ·n ·u11. In addilion, CARE Customers are exernpl firo paying 1he CARE Sur,charge o' S0.00931 per kl/1111 and I, e Wildfire Fund .on-Bypassallle Clharg-e ,of $1U10652: per kWh. (I) Th,e 28.9 pement d1sco11nl, in addilton lo lil ese exemp- ions r,esul • in an a'Jerage effeclive CARE DiiScoun ~R) o' 32.5 ercent
(To Ile tnser1ed by uli ii','}
Adivioe 4864-E Decisto.n - 22- _...,.1)_8-_0_1 11_1 ____ _ 11::,
(Ooolinued)
(To be i111 sert-ed by Cal. PUC)
Date Submi'lted Se , 15 2 022
E 'eclLve Oct 1, 2022
Rlesolulion
Cost Effectiveness Analysis: Single Family New Construction 46 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 47 Appendices

7.2.3 Southern California Gas
Following are the SoCalGas natural gas tariffs applied in this study. Error! Reference source not found. describes the baseline territories that were assumed for each climate zone.

Table 27. 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 Error! Reference source not found.. These rates are based on applying a normalization curve to the December 2022 tariff based on eleven years of historical gas data. See the beginning of Section Error! Reference source not found.

Error! Reference source not found. for further details. Long-term historical natural gas rate data was only available for SoCalGas’ procurement charges.10 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 2022 rates. CARE rates reflect the 20 percent discount per the GR tariff.

Table 28. SoCalGas Monthly Gas Rate ($/therm)
Month Procurement
Charge
Transportation Charge Total Charge
Baseline Excess Baseline Excess
January $0.90581 $0.82487 $1.23877 $1.73068 $2.14458
February $0.83669 $0.82487 $1.23877 $1.66156 $1.84967
March $0.80596 $0.82487 $1.23877 $1.63083 $1.82938
April $0.71941 $0.82487 $1.23877 $1.54428 $1.75890
May $0.77049 $0.82487 $1.23877 $1.59536 $1.78548
June $0.86253 $0.82487 $1.23877 $1.68740 $1.83337
July $0.87687 $0.82487 $1.23877 $1.70174 $1.86833
August $0.95391 $0.82487 $1.23877 $1.77878 $1.91089
September $0.85896 $0.82487 $1.23877 $1.68383 $1.83611
October $0.84147 $0.82487 $1.23877 $1.66634 $1.84936
November $0.89018 $0.82487 $1.23877 $1.71505 $1.88836
December $1.05329 $0.82487 $1.23877 $1.87816 $1.98294
10 The SoCalGas procurement and transmission charges were obtained from the following site:
https://www.socalgas.com/for-your-business/energy-market-services/gas-prices California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Schedule o. GM
MULTI-FAMll..Y S RVJCE
(Includes GM- , GM-C, GM- •C, GM-CC, GT-l\lffi, GT-MC and all GM-S Rates) (Continued}
APPLICABILITY ( ontinucd)
Multi-family Accommodations bui.lt prior lo December 15, 198 I and currently served under this schedule may also be eligible for service under Schedule 'o. GS. If an c:ligible Multi-family Aocommodation served under this schedu le con crts lo an applicable submelered mriIT, the tenant renta.l charges shall be revised for the duration of the lease lo rctlccl remolllll of the energy related charges, ligibility for service hereunder is subj,ect lo erifical ion by the Ulil.ity.

TERRITORY
Appl.icablc throughout lhe service territory.

RATES
G GT-M
C11slomer Charge. per meter, per day: .......................... 16.438

GMB/GT-MB

19.792
For ''S pace Heating Only" customers a daily
Cllslomer Charge applies during the winter period
from · o ember I through April 301': .......................... 33.149¢ GM
GM- GM-EC:"
Basel.inc Rate, pc.r therm (baseline usage defined per Special Condition.s 3 and 4 :

Procurement barge: 2' ................................................... I 10.870¢ l l0.870 Transmission Ch3I¥e: ............................................. 90.256¢ 90-256¢ Total Baseline Charge (all usage): ....................... 201.126¢ 201.126¢ on-Ba.scline Rate, per therm us.age in excess of baseline usage):

Procurement Charge: 2' .......................................... 110,870¢ Transmission Charge: ........................................... 135.367¢ Total on Baseline Charge (all usage}: ................ 246,237¢ l l0.870¢
135.367¢
246.237¢
IA

90.256¢

90.256¢
IA
135.367¢
135.367¢

3. Bascbne Usage: The following usage iis to be bil ed at Lhe Baseline rate for Mu.lti-famil Aooommodation units. sage in excess of applicable BacScline allo\ anoes will be billed at the on Baseline rate.

Per RcsideRoc
Summer, fay 1- Oct3 I)
·v inter On-Peak (Dec . .Jan,, and eb.)
Winter Off-Peak ~ 'ov., Mar. and Apr .)
Daily Tlierrn Allowance
for Climate Zones*
1 2 3 - - -0.424 0.424 0.424

1.600 1.867 2.600

0.874 0.923 1.714
Cost Effectiveness Analysis: Single Family New Construction 48 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
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: Single Family New Construction 49 Appendices

7.2.4 San Diego Gas & Electric
Following are the SDG&E electricity and natural gas tariffs applied in this study. Error! Reference source not found. describes the baseline territories that were assumed for each climate zone. A net surplus compensation rate of $0.04174 / kWh was applied to any net annual electricity generation based on a one- year average of the rates between January 2022 and December 2022.

Table 29. 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 Error! Reference source not found.. These rates are based on applying a normalization curve to the December 2022 tariff based on eleven years of historical gas data. See the beginning of Section Error! Reference source not found.

Error! Reference source not found. for further details. CARE rates reflect the 20 percent discount per the G-CARE tariff.

Table 30. SDG&E Monthly Gas Rate ($/therm)
Month Total Charge
Baseline Excess
January $2.33762 $2.34748
February $2.26751 $2.28440
March $2.25119 $2.27016
April $2.20192 $2.22744
May $2.24252 $2.26403
June $2.31819 $2.33060
July $2.32406 $2.33630
August $2.37527 $2.38090
September $2.33542 $2.34971
October $2.30366 $2.32151
November $2.31722 $2.33381
December $2.45653 $2.73517
California Energy Codes & Standards | A statewide utility program 2023-06-20

HEDULE GM
MUL n -FAMIL Y NATURAL GAS SERVICE
{Includes Rates for GM, GM-C and GTC/GTCA)
RATES
GM
BaseUl'le Ra 19, per therm (tlaseUn,e, usage defil'll!d In Special Conaition 4) F'mcurem.ent Ctiarge2 ............................. .

Tra.nsmlssion Charge ................................... .

Total Baseline Cl\arge ............................. .

Noo..f!as!<line, Ral9 {usage n exc.!ss of tlas.eUne usage) Procurem.,:mt Ctiarge2 ..................................... .

Transmlsslon Cl\ar,ge ................ .............. ....... .

Total Ncm-B:asalme Cl'la11ge ........ -..... _ ................. .

Minim.um B l per day'
Non-CARE oustom.ers ..................................... .

CME cuslOmers ..................................... .

Franchise Fee Differentia l:
$1.05454
$1.401199
$2.45653
$1.05454
$1.68003
$2.73517
$0.131151
$0.10521
GM-C
$1,.42421
$1'.401199
$2.82620
$11.42421
$1,.68003
$3.10484
$0.131151
$0.10521
Sheet 2
GTCfGTCA'
N/A
$1 .40!201
$1 .40!201
N/A
$1.68065
$1.68065
$0.13151
$0.105.21
A Franch ise Fee Differentia l of 1.03% will be applied lo Ille monthly billings ca'lculatedl unde r this schedule for all customers within the co~porale limits of lhe City of San Diego. Such Franchise Fee Differentia l shall be so indicated and added as a separate item to bills rendered to such rustomers .

Additional Charges
Rates may be adjusted to reflect any applicable raxes, franchise fees or other fees, regu'latory surcharg.es, an interstate or intrastate !Pipeline charges that may occur..

SPECIAL CONDIITIONS

1.. Definitions .. Thie definitions of p.rincipal terms used in this schedule are found eilhe r herein or in R!Ule 1, Definitions.

2. Number of Therms. The numbe r of therms lo be billed shall be determ ined in accordanoe with Rule

2. The daily therm allowance in the Baseline Usage, shown in Special Condition 4, shall be multiplied by lf1e num'ber of qualified residential units. It is lhe responsibility of the cuslomer lo advise the utility wjlfl in 15 d1ays following any change in the submeternflg arrangements or the nurnber of dwelling units or Mobilehome Park spaoes provided gas servioe .. The number of qualifying units is subject to verification :by the utility.

3. Exdlusions. Gas serv,ice for non-domest ic enterprises such as rooming houses, boarding houses, dormitories, rest homes, military barracks , transient trailer 1pa~ks, stores, Irestaurarnts, service stations, and olll.er similar establishments will be separately metered and billed under the applicable schedules. 1 Tile rau.s fr,r cCil'e 1ranspMtaliol'l-0f'lly cl.lSll'.lo'oal'lS, wilh llli!> exceptlcm or oustomel'lS laking sarvlce un,:mr Sdhei:lufl:! GT NGV, l'ldude any FERC Sattlement Proceeds ... tnCil'andu.m Account (FSF'MA) Clfedll acfjl1s'limMIS. 2 Thi:s. Cl'largi!> is appll>tabli!> to Utl ty Proalrement CustomMS and lnciUIMS Ui,e GPC al'ld GF'C-A Pl'OCtiremenl Cl'larges shown tn Scl'leduli!> GF>C which are subject to changi!> monlllly as set fortl'I in Speda.1 Col'ldili>oo 7. 3 EtleCIJl/e slarting May 1, 2020. the minlm.um tli Is calculaled as 1ihe mmmu.m ilill charg,e, of So. 3,151 per da~ times th.e number or da,,-s In the ililh.ng cycie (approximately $4 per month) wi1ih a 20% discount applied fCil' CAAE cu:stomar resl.lltlng ma minimum bill clla,,ge• ofS0.105:21 per day(a pproxlmately$3.20 parmonlll) . mr
AlMc Ur. No. 3145-G
Issued by Submitted
Effaeb'\le
De,,:; 9, 20,22
Dec 110. 20!22
Cost Effectiveness Analysis: Single Family New Construction 50 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

San Difi9o Gas & Electric Company
San Difi9o., California
RATES
Tota I :Rates:

Description - T,OU DR1
Summer.

On-Pea'k
Off-Pea'k
Super Off-Peak
Winter:

On-Pea'k
Off-Pea'k
Super Off~Peak
Summer Baseline Adjustment Credi! up to
130% of Baseline
Winter Base lne Adjustmenl Oredit up to,
130% of Baseline
Minimum Bill ($Jday)
Note:

Revl5ed Cal P.U.C. Sheet No.
cano elin.g Revfsed Cal P.U.C. Sheet No.

SCHEDULE TOU-DR1

RESIDENTIAL TIM E-OF-USE
UDC Total Rate DWRSC + EECC Rate+
WF-NBC DWRCred lt

0.26467 I 0.00309 R 0.42232

0.26467 I 0.00309 R 0.19003

0.26467 I 0.00309 R 0.06802

0.39848 I 0.00309 R 0.14268

0.39848 I 0.00309 R 0.08004

0.39848 I 0.00309 R 0.06187
(0.1018.2) R
(0.1 0182) R

0.350
R
R
R
R
R
R
Total
Rate

0.69008

0.45779

0.33578

0.54425

0.48161

0.46344
(0.10182)
(0.10182)

0.350
(1) T otal Rates conslst of UDC, Schedule DWR-BC (Department ol Water Resources Bond Cliarge~ Schedule WF-NBC ,(CA WIidfire Fund charge) and Schedule EECC (Electric Energy Commodity Cost) rates, with the EECC rates reflecting a DWR Oredlt. EECC rates al'll applicable to bundled customers only. See Special Condiion 16 for PCIA (Power Charge lndllfe,enoe Adjustment) l'llCovery. (2) Total Rates presented ars for customers that receive commodity supply and delivery service from Uti lty. (3} DWR-BC and WF-NBC charges do not apply to CARE customers. (4} As ldentffled In the rates tables, customer bl Is wl I also include fine-item summer and winter credits for usage up to 130% of baseline to provide the rate capplng benefits adopted by Assembly Bm i X and Senate Bl I 695. (5} WF-NBC rate ,Is 0.00652 + DWR-BC Bond Charge Is (0.00343)- Continued
36337-E
35747.;E
Sheet 2
R
I
I
R
I
I
R
R
R
2C10 Issued by Submitted M ay 16, 2022
Advice Ur. No. 4004-E Dan Skopec Effec,tive Jun 1, 2022 Vice President
Decision No. 22-03-003 Regulatory Affairs Resolution No. -
soa• ....., 'E
Cost Effectiveness Analysis: Single Family New Construction 51 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Time Periods
All time periods listed are applicab le 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
Suoer Off-Peak
Seasons: Summer
Winter
Summer
4:00 p.m. - 9:00 p_m_
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. - midniqht
Midnioht - 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. - midniQht
Midnight- 6:00 a.m.
10:00 a.m. - 2:00 p_m_ in March and Apri1I
Winter
4:00 I0.m. - 9:00 o.m.
2:00 p.m. - 4:00 p.m.;
9:00 p.m. - midniQht
Midniqht - 2:00 P.m.

15. Baseline Usag:e: 17he followirng quantities of electncity are used to calculate the baseline adjus1ment credit.

Baseline Allowance For Climatic Zones"'
Coastal Im land Mountain Desert
Ba.sit Al owance
Summer (June 1 to October 31) 91,0 10,.4 13.6 15.91
Winter (No,vember 1 to M!ay 31 ) 9.2 '9 .. 6 12.9 10.91 AH Elecb'ic-
Summer (June 1 to October 3f) 6.0 8,.7 15 2 17 .. 0
Winter (No,vember 1 to May 31) 8.8 12.2 22.1 H .. 1
Climatic Zones are shO'Wf'l ,o.rn tlile Territory Served, Map No,. 1. ... Alli Electric allowances are available upon applica'~on, lo those customers w'lilo have perrnanen~ installed s,paoe• heating ,or who lilarve e1ec:IJllc water heat ng and receive no energy flrom an.olher souroe. (1) Total Rates consist of UDC, Schedule DWH-BC (Department of Water Resources Bond Charge), and Schedule EECC (Electric Energy Commodity Cost) rates, with the EECC rates reflecting a DWR Credit of $0.00000 that customers receive on lheir monthly bills.
(2) Total Rates presented are for customers that receive commodity supply and delivery service from Utility. Differences in total rates paid by Direct Access (DA) and Community Choice Aggrega1ion (CCA) customers a re identified in Schedule DA-CRS and CCA-CRS, respectively.
(3) DWR-BC charges do not apply to CARE or Medical Baseline customers. (4) Total Effective CARE :Rate is p resented for illustrative purposes only, and renects the average effeotive CARE discount CARE customers receive which consists of (a) exemptions from paying the CARE Surcharge, DWR-BC, California Solar Initiative (CSI) and Vehicle-Grid lntegra1ion (VGI) Costs; (b) a 50% minimum bill relative to Non-CARE; and (c) a separate line-item bill discount for all qualified residential CARE customers.
(SJ Current DWR-BC as presented is now used for collecting lhe Galifomia Wildfire Fund Charge effective Oct 1, 2020 (See Schedule WF - NBC). DWR BC will be renamed at implementation of SDG&E's new customer information system.

Cost Effectiveness Analysis: Single Family New Construction 52 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
_rt
San Diego Gas & Electric Comp.any
San Diego, California
Re',lised Ca:J. P.U.C. Shee t No.

Canceling Re>1ised Ca'I. P.U.C. Shee t No.

SCHEDULE E-CARE
CAL.I FORIN IA AL T5RNA TE RA TES FOR ENEIRGY
APPLICABIU1Y
357 18-E
32576-E
Sheet 1
This schedule provides a California Alternate Rates for Energy (CARE) discount to each or 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 in conjunction with the customer's otherwise applicable service schedule.
1) Customers residing In a permanent single-family accommodation, separately metered by the Utility ..
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.

DIISCOUNT
1) Residential CARE: Qualified residential CARE customers will receive a total effective discount according to the following:
201 5 2 016 2017 2018 2019 2020 and
beyond
t:.rrectIve 40%,. 39% 38% 38% 36%R 35%, Discount
1C5
Pursuant to Commission Decision (D.) 15--07~001, the average effective CAR,E discount for residential customers will decrease 1% each year until an average effective discount or 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), Vehlc:le--Grid Integration (VGI) costs, and California Solar Initiative (CSII); (b) a 50% minimum bill relative to Non-CARE; (c) the California W ildfire Fund Charge (WF--NBC) and (d) a separate line- item bill discount for all qualified residential CARE customers with the exclusion of CARE Medical Baseline customers taking service 011 tiered rates schedules. D.1 5~07~001 retained the rate subsidies in Non-CARE Medical Baseline tiered rates and thereby a separate line-item discount is provided for these CARE Medical Baseline customers Continued
Dec 30, 2021
Advice Ur. Nb. 3928-E
lss,ued by
Dan Skopec
Subm itted
Elfecl ive Jan 1, 2022
\lirP Pir9fii':irtP.nt
T
Cost Effectiveness Analysis: Single Family New Construction 53 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
. APPLICABILITY:

RESIDENTIAL ELECTRIC SERVICE
UTILITY RA TE 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. TERRITORY:

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

C. UNBU DLED RA TES:

Per kilowatt-hour (kWh) Commodity
Tier 1 usage
Tier 2 usage
Any usage over Tier 1
Minimum Bill ($/day)
$0.08547

0.11858
Distribution Public Benefits
$0.05429 $0.00469

0.08008 0.00469
Total
$0.14445

0.20335

0.3447
Cost Effectiveness Analysis: Single Family New Construction 54 Appendices

7.2.5 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 Error! Reference source not found.. These rates are based on applying a normalization curve to the December 2022 tariff based on three years of historical gas data. See the beginning of Section Error! Reference source not found. Error! Reference source not found. for further details. The monthly service charge applied was $106.90 per month per the December 2022 G-2 tariff.

Table 31. CPAU Monthly Gas Rate ($/therm)
Month G2
Volumetric
Totals
January $1.80964
February $1.67009
March $1.68480
April $1.68698
May $1.78478
June $1.88288
July $1.88355
August $2.06943
September $2.06798
October $2.08553
November $2.09681
December $2.45700
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
RE'_ IDE1 TIAL MASTER~METERED A D S ALL NO ~RESIDE T IAL ELECTRIC _ERVI E
TILITY RA TE SCHEDULE -2
A. APPLl 1CABILITY:

This Ra:te Schedul apphes to the foUowing Cus .om rs receiving Electric ervice from the City of Palo Alto Utilities:

1. SmaU non-Ji sidential Custom rs reo i ring Non Demand el:ered E]ectric Ser ioe; and

2. Cu ·tamers with Accoun sat Master-Met red multi-famil f.ac- i ies.

B. TERRITORY:

This rat schedu e appli s eVety\ -heJie the City of Palo Alto pm ides E]ect.ric Service.

B DLEDRATE :

Per kilowa t-hou:r (kWh)
Sununer P,eriod
Win ,er Period
inim lm Bill ,( • day)
Commodity

0.12151

0.087 15
Dis'tribution Pub ic Benefits
0 .09276 0 .00469

0.06171 0 .00469
To'ta]

0.21 '96

0.15355

0.8777

EXPORT ELECTRICITY COMPENSATION
UTILITY RATE SCHEDULE E-EEC -1
A. APPLICABILITY:

This Rate Schedule applies in conjunction with the otherwise applicable Rate Schedules for each Customer class. This Rate Schedule may not apply in conjunction with any time-of-use Rate Schedule. This Rate Schedu le applies to Customer-Generators as defined in Rule and Regulation 2 who are either not eligible for et Energy Metering or who are eligible for Net Energy metering but elect to take Service under this Rate Schedule.

B. TERRITORY:

Applies to locations within the service area of the City of Palo Alto.

C. RATE:

The following buyback rate shall apply to all electricity exported to the grid.

Per kWh
Export electricity compensation rate $0.1045
Cost Effectiveness Analysis: Single Family New Construction 55 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
II. Firm Service Rates
A. Time -of-Day (5-8 p.m .) Rate
Time-of-Day (5-8 p.m.) Rate (RT02)
on-S ummer· S eason (October -May)
Residential Time-of-Day Service
Rate Schedule R-TOD
Effective as of Effective as of Effective as of
O ctober · 1, 2021 March 1, 2022 Januar y 1, 2023
System Infra sh,rcture Fixed Charge per 111011th per meter Elech i dty Usage Charge
$22 .70 $23.05 $23.50
Peak $/k Wh
Off-Peak $/k Wh
Summe r· Season (June - September)
System Infrnsh ·ucture Fixed Charge per 111011th per meter Elechicity Usage Charge
Peak $/k Wh
M id-Peak $/k Wh
Off-Peak $/k Wh
Tin1e-nf-na (5-8 p.m.} R t l' fr.ate e:1ttegar RT02 }
$0.1494
$0.1082
n/a
n/a
n/a
n/a
S0.1516
S0.1098
$23.05
$0.3215
S0.1827
S0.1323
S0.1547
S0.1120
$23.50
$0.3279
S0.1864
S0.1350
L The TOD (5~8 p.m.) IR.i?J.te is die tandard t fo SM ID re ide.ntia.1 custom . " Eligible tom.e0 can elect l!he Fi ed :Rate 1md.er Rate Schedule R a an altemati rale.

2. Th TOD (5~8 p.m.) IR.i?Jite is an optr nal rale for cu tomers . ·ho ha.ve an e-ligible re-l!I~ ab! e!e-ctrical E,-etternl:ion facility 1md.er Rate Sch dule NEM I that as 0pproived for in t0Ullll:io11 by SM • D prior 10 JlillWa· I 20 I S.

J _ Thi rate 11a five kifo an-:hou:r (kWh) price depend ing oo the. time-of-day an.d. e on. detaire<I in Section, _ Condition f Sen-ice.
ho . below_ Holid.a . are
m e r
!Ion I - Sep:tJO)
on- ' ummer
Off-Pf'illk
Pe k
Weekday bet\\'e.et15:0O p_m_ n:dl S,1.11.1 p.m_
\\~eekdays bet\\<een noon and midnight except during die Peak. hours.

All ol!her hours includling ee!::e.n.ds Md 1:i.olida • 1 Al.I ol!her h urs includling e!::e-nds and. holida~ 1
Cost Effectiveness Analysis: Single Family New Construction 56 Appendices

7.2.6 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 2023-06-20

-
C lli!I of' Wt llli C of EfJetli •• &~ :f'
Octoberr l 202 l 'laroh l 122 Jan a· 2J
on 1:1mmcrr ea ·on (Oclober- - May)
,. !cm tnfi:'as·lrutlure Fi:;;.ed h,airge p,er month Pf!r 111f!1.f!r 22_70 23.05 2J..31l IEileci!ri clt ia. c h ,a t
All kWh Us.J,g': p crnwnlh ' -Wh· 0.1279 11.1298 $0.1324 um.mer . ea~rm (l une - September)
•. km tnfflli!l•ln.J:ctu re Fhed C hairge 11""-month pf!r 11rf!1.f!r 23.05 23.31) All k\Vh Us.J,ge p ci-1n:wnlh ' -Wh $11.1.486 $0_1 516
Cost Effectiveness Analysis: Single Family New Construction 57 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 58 Appendices

7.2.7 Fuel Escalation Assumptions
The average annual escalation rates in Error! Reference source not found. 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 32: Real Utility Rate Escalation Rate Assumptions Statewide Natural
Gas Residential
Average Rate
(%/year, real)
Electric Residential Average Rate
(%/year, real)

PG&E SCE SDG&E
2023 4.6% 1.8% 1.6% 2.8%
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%
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 59 Appendices

7.3 Cost Details
Table 33 presents additional detail on the first cost assumptions for the central water heating systems. For the 5- story prototype costs are provided both for a CO2 refrigerant Sanden-based and R-134a refrigerant Colmac-based heat pump water heater designs. The results presented in the main body of this report are based on the Sanden design. A sensitivity analysis was also conducted for a Colmac design (see Appendix 7.5 Central Heat Pump Water Heater Comparison) and the cost comparison is presented here. All costs are based on data from the 2022 Multifamily All- Electric CASE Report (Statewide CASE Team, 2020c).

Table 33. Heat Pump Water Heater First Costs per Building (Present Value (2023$)) Item
3-Story (36-units) 5-Story (88-units)
Gas
Boiler
(CZs 1-9)
Gas Boiler
(CZs 10-16)
Heat
Pump
Gas
Boiler
(CZs 1-9)
Gas Boiler
(CZs 10-16)
Heat
Pump
(Sanden)
Heat
Pump
(Colmac)
Water Heating
Equipment $87,602 $87,602 $140,907 $135,146 $135,146 $244,742 $319,485 Solar Thermal
Collector $39,800 $46,888 n/a $74,740 $91,776 n/a n/a
Gas Piping $8,890 $8,890 n/a $9,065 $9,065 n/a n/a
Electrical Circuits n/a n/a $25,000 n/a n/a $25,000 $25,000 Overhead & Markup $37,480 $39,430 $45,624 $60,212 $64,896 $74,179 $94,733 Total $173,772 $182,810 $211,531 $279,163 $300,883 $343,920 $439,218 Table 34 presents additional detail on the first cost assumptions for the space hating systems.

Table 34. Heat Pump Space Heater First Costs per Dwelling Unit (Present Value (2023$) Item
3-Story 5-Story
Source & Notes Furnace +
Split AC
Heat
Pump
Furnace +
Split HP
Heat
Pump
Dwelling Unit HVAC
$5,651 $5,460 $6,109 $5,460
Gas system costs based on 2022
Multifamily All-Electric CASE Report.

Heat pump costs based on online
equipment research indicating a 2-ton
HP is $191 less than a furnace/AC of
the same size.

Refrigerant Piping $563 $563 $423 $423
2022 Multifamily All-Electric CASE
Report. Gas Piping $92 $0 $227 $0
Electrical Circuits $0 $150 $0 $150
Labor
$9,904 $6,985 $9,904 $6,985
Based on the 2022 Multifamily All-
Electric CASE Report with
adjustments to align with updated
equipment costs.

Overhead & Markup $4,457 $3,618 $4,582 $3,579 Based on a 27% markup Total $20,667 $16,776 $21,245 $16,597
Incremental Cost ($3,891) ($4,647)
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Gas a11tJ
Electdc Onnpany-
D eemb 1'5, 2019
-~ ·ommis ion Slafr:

Jarloo Bflrm~"
D ~ r -Gfill~
Pzidli: Gao am! E~ CQ!!IPllflf
Po!.111 CO(!r;) B{lf
P.O. BUii HCOXJ
Sa, F~5oo, CA. U41TT-ll{IIX)1
On M.arcb 2 2018, P'G& provid_d gas e:i-:.tens.ion coot esLiJrnU1.te_~ for r.esidenti l e:ds ·ng ll!ldl new subdj,;isioos (~cc afuichocl niemo). We ha 11eeently upd11ted oure.qtrm.ates ml! aro cherefore p.rov.idjng am. updaiedl memo.
lJ1 addition to milliJlljne Eintl :rervicc ex.tension costs, w ue also pro iding estimates of the oost of gas: meters for di ere t buildli.ag t)'pd including both rcsi • tial and cornme ial customen..

Thc-5lC cstimat s are based on PG&E b.istoric:111 job~.

Devclopln , gas ~tc:n~iol'l cQst 0stim!!Jtes is complex and the actual oa~Q; M"C proj,e,ct dl pendent.

Costs vary idel with locatiOJ1, teTJam, distmlce to lhe rnew.-est m11in, joint trc:nc-hi:ag, matm Ls~ tmmber of dwellings p~r dcvelopmc:nt, and s0vcral otlier site 1djob-spec-i fie conditions. or these reasons, ut is not prac.1irul to c.om.e up with c • te-s that represent every ca5e. Instead 'i'!'e a. in-eluding stimoo:~ b ttl on historrcel avcrag~ taken from projecls wjtl:Jin P 's t~rritory.

It if> not rooommcnded to oorn,par,e spe ifi project co:ilq to these :itl1 t:es s an_ niimbcrof factors co □ 'ld lead to Wgh or lo oosts than l:hesc. ervc:nges ::lie rcpr-e~nting.

We nrre 11bo including i::stimates for in-house gas infra};tructurc c.oi;;t!I and spccifi-c plan revie costs. These esfanatc:s are fmm cxtema[ sources:, and are t10[ based on PG& _. data, but have been provided fot the sake of completencr:i and for- u in energ_ efficiency analysfa.

To further ancho the Cime!es, se,1c:r11I a!lsumptio s rup;·e been ma-de:
l, Jt ·s assutned dmt during new construcfion, gaf> i~~ture will ]jkely e joilll!t trc:J'lchcd with c: reuic infrastructure, As a resutt, the uncn::mc:ntel «:ist of tl'ench.ing sooiated with the gas infra.structure a.lone is minim.al. Therefor,e 11 mainline cost ,csrimates exclude tNnch cos¢8., e.rvice extension cost c:stimatcs incfude both eslimu:tes wuth aru:l widlout trench cos~. In ti case whete new wns tmcti(m would require overhead eleciric a'lld 111ndc:rground gas infrastructure, the ,estima'les with frcncb costs included for .scn·icc extensions should be uti Ii~ .

2. lt is assunied th t 11ew oonstruction ill'I an existing subdivision. wouli'.1 not 8c::ncral ly 1'tG_1.1irsc a mainl'fm;: _ knsion. [n where mamlinc cxtc111sion \','{IUJd be rei.1u~red to 11n. e:x.i:sting .subdivision, lhc costs aro highfy dependent on the location, teITaill, illlld di -nee to the nearest rnai:n.

Cost Effectiveness Analysis: Single Family New Construction 60 Appendices

7.4 PG&E Gas Infrastructure Cost Memo
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Ga-s ml
Electrir: Compa11y
J H nioe 9e:mm,
Clll'Q;lg- G~i:!1 Elf!):!
f'B C Ga 1il Elem,:; Comi-r,
M~il Cade-B9f
P,O Bo~ 770000
sen Fr !CO. C.Pi 94 11-00001

3. These esLirruJ.tcs are fur tofa I CO.Slli:. The QOst lilt res hilV not lxieJi n:ol!lc.c:d to ac ount for che po-ni 11 of lh: c · SIS p11icll liy ell cus tomers due: to =-pplicaci n f RuJe I ~ 1 11nd Ru] 162 ellov,·a:rilc~. n . c sls to tl'le ,peeific: t.u:.tomer may be !0Va1Cr lha11 lhe im tes. bdow 11H tliie ~c:cifi custom . benefi t t m lhe Rule l 5 mru:I Ruic: 16 .e.lfo,wsn _ .

Gu.!. ln[rastruirt u
er •ic Ex tension
(TyPi iiUy I"' p ipe
f · m m11i1tlhi1 !o
thi.: meter)
Meter
9200 per ::.avi building'
(in.cllltk:s trenc h cD.Sti.
$300 . eter
manirfoMout
mmcrcial
1 htti,s://wt'Jw,pg,e.rnm/ta riffs/;rn1/pdf/E:LEC._R S._15 p,d z llt'liJld://vnJw.p,gi:,.~1;1!11/tariffu}tm2/pdf/E1EC_RULES_16-IPd NcwGrecr dd
11:u !ti- a.mi ly
UIR:4
B OF serv ic~/bu illding4
(includes mainline e:id:cruiion cost
wi bin lhe ubdi •ision; e.xclime:51
trencll uMs)
$ I ,1550 per serYic :Jbu i 11'.iingA
(indu m inlill) · tet1 i cosls.
wi th in tlhc f>ubdiv isfo111: i:nclttdes
lrench CO:i,_ )
Rcsiik:nH11I Mult i- ·amil~
:$300 per meter+ :$300 [PCr meter
matti fold outlet'
Smrdl{M\!ff! imn Comme.rcieB
J.60O er meter6
11 Is asSJJmed ,at n~ con.structi<ln illl an e:mli11g ~ubi;fii.ri5ion ·1,'i'tM!ld 111ot require a main exterisl0n. 1 Est meites b:t!l o 1 PG&E jclis. from ~n 201Ei - ll)ec 201 ro J"oG&E's 5.er.1<:e Planming • m. ~ E.s. ·m, ~ fn;im PG8i~'s Dedicated E:stlma~ni; Teem. Fflr Mill U-F11milv uni , ~~ IJf S,300 l)t!r meter and $:!00 p meter manifold ootlei sho bo!! cam bin ·ft!r toral of $ti00 per r ter, ~ PG E Mall'Sinal Ctistcm r Cost Estlm.ate~ presented In the 20:t!I G Cc~t tion Pro, din.es [Gr.AP), A..17•09 006,, Em t rG&E-2. Ji.ppe11dl:!. A, 5-ettion A, T : A ·L Th i!iv-erae;e Qoo111ed:ID Cos per cu~to n i.r.!IU were lnflude In the- MCAC ~crlqi.- r tJi;n a«:on!ll<i led die GCAP testJmo Cost Effectiveness Analysis: Single Family New Construction 61 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Gfi and
Elecmc Corr,p;my·
large C;ommq-cj!ll~
$32,00() pc-r 111,C r'
leeh1m1n
11111!:CJor-artrt srtm1i
If' C Ga! &00 BeelJi'i; COn'pHn~
8I C11d~BSF
P.O. BoK 77'00000
n flt!~ . CA 941 i':i'-<0001
Nole: er-vice ex-1:ensfon c.os cst.imat s fo N .• Greenfielil Su.btli v-ls[am;: .include rnaiintine e teru;ion oosts s well. Tin:::refore, mainline ,;; tirnat can e ignored for lhc pw-p □ sc of estiJ'iKiting toml project «i:.1s ..
·1 able 2: Gas fu:frasrmcrut Cost Eslim11i.cs from Olhcr , mJJOC· In-lID'Ul:ie
]111frasmicture
Plill11Rt:view
(Will racy b ity
oo often not
tixed fee)
fa.isl.in]! 111 b&ivisicm/DcvcfopmGnt
~
$8001
Multi- aanily
$600 per unit'
drum Office
$600-45001·'
Mcdiium Retail
·- 10,0008
R,csidcl]t iJlL
PaJo Alm - $8,,509'
. OJilre:!li den i.i all
Palo Allo - 231 69
New Green.field
Multi-Family
$600 per mtit7
Mcdlium Retail
· 10 ooot
Rc!>idcntial
Palo Alto - :$8.509
N onr. identiel
Palo Alto - • 2316g
Please let us kn • if there .ure H. ny fol low-up qucsllious or clarific0c-ioas . .B st II gaNls,
7 Fro. tier Ener,i;•f, lrK., Misti Bn.1 i &. As:so tes, LLC. 2019. n;w-1g CfJ~t-t!tfecii~nez St,. y: LIJI." fus R~ldentlal N .,. Con~tructlon:" A ble a . lltt~!//lor.alef'l~cod'es.com/o:mt t,lperfonnance-ordlna1K~ t TRC.. Eiilergysoft 2!1t9. "201!11 N'911rc:;;1. ntia New Coristn.Jc Oil Read-1 Gode Ci»t Erl · - ~e ~ _di;." A11al able flt: h s://Jg~ n riw,;udes.,am/oo tent/J]erfarmance-ordlnail~ ~ JRC, 2018. "'City af Palo Nt,o 2JJ19 Tit!~ 24 Erl(l'ln' Rc-.ic;h Code Cost Eff l!fles;s 11.l)iil'p'!ll~ Dra t. • Av:,il.ibl .it:
ht.1p://6lyofp;ili;i~ltti,ore:/d~l,abank/d'.ocum1mtB/6674il Cost Effectiveness Analysis: Single Family New Construction 62 Appendices
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 63 Appendices

7.5 Central Heat Pump Water Heater Comparison
Table 35 presents energy and cost-effectiveness results for a R-134a refrigerant based system design using a Colmac central heat pump water heater in the 5- story prototype. This was only found to be cost-effective based on at least one of the two metrics in Climate Zones 1, 4 in CPAU territory, and 16.

Table 35. 5-Story Cost-Effectiveness: All-Electric Prescriptive Code with R-134a Heat Pump Water Heater Climate
Zone
Electric
/Gas Utility
Efficiency
TDV
Comp
Margin
Source
Comp
Margin
Annual
Elec
Savings
(kWh)
Annual
Gas
Savings
(therms)
Utility Cost
Savings Incremental Cost On-Bill TDV
First
Year
Lifecycle
(2022$)
First
Year
Lifecycle
(2022$)
B/C
Ratio NPV B/C
Ratio NPV
CZ01 PGE 6% 6% -1,496 147 ($155) ($1,240) ($3,556) ($4,223) 3.4 $2,984 >1 $5,870 CZ02 PGE 4% 2% -1,197 120 ($145) ($1,513) $1,691 $2,749 0.0 ($4,262) 0.5 ($1,287) CZ03 PGE 6% 3% -1,166 120 ($138) ($1,360) $1,691 $2,749 0.0 ($4,109) 0.8 ($523) CZ04 PGE 4% 2% -1,116 113 ($76) ($49) $1,691 $2,749 0.0 ($2,798) 0.7 ($949) CZ04 CPAU 4% 2% -1,116 113 $185 $7,144 $1,718 $2,776 2.6 $4,368 0.6 ($976) CZ05 PGE 5% 2% -1,161 117 ($137) ($1,391) $1,691 $2,749 0.0 ($4,140) 0.5 ($1,412) CZ05 PGE/SCG 5% 2% -1,161 117 ($189) ($3,016) $1,691 $2,749 0.0 ($5,765) 0.5 ($1,412) CZ06 SCE/SCG 4% 1% -1,000 104 ($92) ($879) $1,691 $2,749 0.0 ($3,628) 0.6 ($1,013) CZ07 SDGE 5% 2% -996 106 ($183) ($3,216) $1,691 $2,749 0.0 ($5,965) 0.7 ($936) CZ08 SCE/SCG 3% 1% -948 100 ($156) ($2,413) $1,691 $2,749 0.0 ($5,162) 0.7 ($695) CZ09 SCE 3% 0% -966 100 ($132) ($1,863) $1,691 $2,749 0.0 ($4,612) 0.7 ($738) CZ10 SCE/SCG 3% 1% -962 84 ($188) ($3,375) $1,444 $2,395 0.0 ($5,770) 0.3 ($1,596) CZ10 SDGE 3% 1% -962 84 ($239) ($4,959) $1,444 $2,395 0.0 ($7,354) 0.3 ($1,596) CZ11 PGE 4% 3% -1,029 92 ($165) ($2,487) $1,444 $2,395 0.0 ($4,882) 0.4 ($1,367) CZ12 PGE 4% 3% -1,081 96 ($172) ($2,591) $1,444 $2,395 0.0 ($4,986) 0.3 ($1,667) CZ12 SMUD/PGE 4% 3% -1,081 96 $26 $1,988 $1,444 $2,395 0.8 ($407) 0.3 ($1,667) CZ13 PGE 3% 2% -976 88 ($156) ($2,361) $1,444 $2,395 0.0 ($4,756) 0.4 ($1,452) CZ14 SCE/SCG 2% -1% -1,045 84 ($210) ($3,880) $1,444 $2,395 0.0 ($6,275) 0.1 ($2,056) CZ14 SDGE 2% -1% -1,045 84 ($270) ($5,725) $1,444 $2,395 0.0 ($8,120) 0.1 ($2,056) CZ15 SCE/SCG 2% -1% -718 65 ($146) ($2,713) $1,444 $2,395 0.0 ($5,108) 0.3 ($1,564) CZ16 PG&E -5% 6% -1,913 142 ($276) ($4,142) ($3,803) ($4,577) 1.1 $435 1.2 $746 California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 64 Appendices

7.6 Summary of Measures by Package
Table 36 provides the details of the measures in each of the efficiency package by climate zone. The measures are the same for the 3-story and 5-story prototypes. Table 37 presents the PV capacities per dwelling unit in the upgrade packages. In Climate Zone 6 for the mixed fuel case in the 5-story prototype there is no upgrade to the PV system capacity as the prescriptive PV system already offset all of the estimated electricity use.

Table 36. Mixed Fuel Efficiency Package Measures
Climate
Zone

0.70 Roof
Solar
Reflectance

0.24 U-Factor
Windows

0.35 W/cfm
Verified Low
Leakage Ducts in
Conditioned
Space
1 X X
2 X
3 X
4 X
5 X
6 X
7 X
8 X
9 X X
10 X X X
11 X X X
12 X X X
13 X X X
14 X X X
15 X X X
16 X X X
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 65 Appendices
Table 37. Upgrade Package PV Capacities (kW-DC)
Climate
Zone
All-Electric + PV Mixed Fuel + PV
3-Story 5-Story 3-Story 5-Story
CZ01 4.41 4.35 3.69 3.43
CZ02 3.56 3.58 3.02 2.98
CZ03 3.31 3.29 2.80 2.72
CZ04 3.21 3.27 2.73 2.75
CZ05 3.04 3.08 2.57 2.55
CZ06 2.91 3.04 2.49 2.68
CZ07 3.09 3.21 2.64 2.74
CZ08 3.18 3.30 2.76 2.86
CZ09 3.04 3.16 2.63 2.73
CZ10 3.20 3.30 2.79 2.86
CZ11 3.90 3.95 3.42 3.43
CZ12 3.53 3.60 3.05 3.08
CZ13 3.77 3.84 3.32 3.36
CZ14 3.20 3.23 2.79 2.79
CZ15 3.93 3.94 3.58 3.58
CZ16 3.79 3.76 2.60 2.90
California Energy Codes & Standards | A statewide utility program 2023-06-20

-
Cost Effectiveness Analysis: Single Family New Construction 66 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 Twitter access our resources and sign up
for newsletters.
for no-charge assistance from expert
Reach Code advisors
California Energy Codes & Standards | A statewide utility program 2023-06-20

San Mateo City CouncilJanuary 13, 2025

San Mateo City Council
January 13, 2025