Att 6 - 2022 Non-residential New Construction Reach Code Cost-effectiveness Study

Cost-effectiveness Analysis: Nonresidential New Construction Buildings

Prepared by:

Avani Goyal, Farhad Farahmand
TRC Companies Inc.

Prepared for:

Jay Madden
Codes and Standards Program Southern California Edison
Last modified: 2023/03/24
Revision: 1.3
2022 Code :

Nonresidential New
Construction Reach Code
Cost-effectiveness Study

Cost-effectiveness Analysis: Nonresidential New Construction Buildings

Legal Notice
This report was prepared by Southern California Edison Company and funded by the California utility customers under the auspices of the California Public Utilities Commission.

Neither SCE 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
AC – Air Conditioner
ASHRAE - American Society of Heating, Refrigerating
and Air-Conditioning Engineers
B/C – Benefit-to-Cost Ratio
BOD – Basis of Design
BSC – Building Standards Commission
Btu – British thermal unit
CAV – Constant Air Volume
CBECC - California Building Energy Code Compliance
CBECS - Commercial Building Energy Consumption Survey
CBSC - California Building Standards Commission
CEC - California Energy Commission
CPAU – City of Palo Alto Utilities
CZ – Climate Zone
DCKV – Demand-Controlled Kitchen Ventilation
DHW – Domestic Hot Water
DEER – Database for Energy Efficient Resources
DOE – U.S. Department of Energy
E3 – Energy and Environmental Economics
EUI – Energy Use Index
FDD – Fault Detection and Diagnostics
GHG - Greenhouse Gas
GPM – Gallons Per Minute
HVAC – Heating, Ventilation, and Air Conditioning
IOU – Investor-Owned Utility
Cost-effectiveness Analysis: Nonresidential New Construction Buildings kWh – Kilowatt Hour
LADWP – Los Angeles Department of Water and Power
LBNL – Lawrence Berkeley National Lab
LPD – Lighting Power Density
NPV – Net Present Value
QSR – Quick-Service Restaurant
PNNL – Pacific Northwest National Laboratory
POU – Publicly Owned Utility
PTHP – Packaged Terminal Heat Pump
PG&E – Pacific Gas & Electric (utility)
PTAC – Packaged Terminal Air Conditioning
PV - Solar Photovoltaic
SCE – Southern California Edison (utility)
SCG – Southern California Gas (utility)
SDG&E – San Diego Gas & Electric (utility)
SHW – Service Hot Water
SMUD – Sacramento Municipal Utility District
SZ – Single Zone
TDV – Time Dependent Valuation
VAV – Variable Air Volume
TDV - Time Dependent Valuation
Title 24 – California Code of Regulations Title 24, Part 6 TOU – Time of Use

Cost-effectiveness Analysis: Nonresidential New Construction Buildings

Summary of Revisions

Date Description Reference (page or section)
11/16/2022 Original Release -
01/31/2023 Minor changes to reflect efficiency compliance margin calculation updates in workbook and report
tables
Section 5
03/24/2023 Minor changes in narrative of quick service
restaurant in reach code considerations
Section 5

Cost-effectiveness Analysis: Nonresidential New Construction Buildings

TABLE OF CONTENTS
Executive Summary .......................................................................................................................................................... 1 1 Introduction ................................................................................................................................................................ 3 2 Methodology and Assumptions ............................................................................................................................... 5

2.1 Cost-effectiveness ................................................................................................................................................................ 5

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

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

2.1.3 Metrics .......................................................................................................................................................................... 6

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

2.2 Energy Simulations ............................................................................................................................................................... 7

2.3 2022 T24 Compliance Metrics .............................................................................................................................................. 8

2.4 GHG Emissions .................................................................................................................................................................... 8

2.5 Limitations and Further Considerations ................................................................................................................................ 8 3 Prototypes, Measure Packages, and Costs .......................................................................................................... 10

3.1 Prototype Characteristics .................................................................................................................................................... 10

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

3.2.1 Fuel Substitution ......................................................................................................................................................... 12

3.2.2 Efficiency ..................................................................................................................................................................... 21

3.2.3 Load Flexibility ............................................................................................................................................................ 28

3.2.4 Additional Solar PV and Battery Storage .................................................................................................................... 29

3.3 Measure Packages ............................................................................................................................................................. 30 4 Cost-Effectiveness Results .................................................................................................................................... 32

4.1 Medium Office ..................................................................................................................................................................... 35

4.2 Medium Retail ..................................................................................................................................................................... 36

4.3 Quick-Service Restaurant (QSR) ........................................................................................................................................ 37

4.4 Small Hotel .......................................................................................................................................................................... 39 5 Energy Code Compliance Results and Reach Code Considerations ................................................................ 40

5.1 Medium Office ..................................................................................................................................................................... 44

5.2 Medium Retail ..................................................................................................................................................................... 45

5.3 Quick-Service Restaurant (QSR) ........................................................................................................................................ 47

5.4 Small Hotel .......................................................................................................................................................................... 50 6 Conclusions ............................................................................................................................................................. 53 7 References ............................................................................................................................................................... 55 8 Appendices .............................................................................................................................................................. 57

8.1 Map of California CZs ......................................................................................................................................................... 57

8.2 Utility Rate Schedules ......................................................................................................................................................... 58 Cost-effectiveness Analysis: Nonresidential New Construction Buildings

8.2.1 PG&E .......................................................................................................................................................................... 59

8.2.2 SCE............................................................................................................................................................................. 62

8.2.3 SCG ............................................................................................................................................................................ 65

8.2.4 SDG&E ....................................................................................................................................................................... 67

8.2.5 CPAU .......................................................................................................................................................................... 73

8.2.6 SMUD (Electric Only) .................................................................................................................................................. 75

8.2.7 Escalation Rates ......................................................................................................................................................... 76

8.3 HVAC and SHW System Cost Scalers ............................................................................................................................... 76

8.4 Mixed Fuel Baseline Figures ............................................................................................................................................... 77

8.5 GHG Savings Summary ...................................................................................................................................................... 81

LIST OF TABLES
Table 1. Utility Tariffs Used Based on CZ (October 2022) .................................................................................................................... 7 Table 2. Baseline Prototype Characteristics ....................................................................................................................................... 11 Table 3. HVAC and Water Heating Characteristics Summary ............................................................................................................ 14 Table 4. Medium Office Average Mechanical System Costs .............................................................................................................. 15 Table 5. Medium Retail Average Mechanical System Costs ............................................................................................................... 16 Table 6. Quick-Service Restaurant Average Mechanical System Costs - HS Package ...................................................................... 16 Table 7. Small Hotel HVAC and Water Heating System Costs ........................................................................................................... 18 Table 8. Quick-Service Restaurant Cooking Equipment Costs ........................................................................................................... 18 Table 9. Small Hotel Clothes Dryer Costs ........................................................................................................................................... 19 Table 10. Electrical Infrastructure Costs ............................................................................................................................................. 20 Table 11. Gas Infrastructure Costs by Component ............................................................................................................................. 21 Table 12. Total Gas Infrastructure Cost Estimates by Building Type .................................................................................................. 21 Table 13. Efficiency Measures Applicability, Costs, and Sources ....................................................................................................... 26 Table 14. Load Flexibility Measure Summary ..................................................................................................................................... 29 Table 15. Additional Solar PV Measure Summary .............................................................................................................................. 30 Table 16. Reach Code Pathway Considerations ................................................................................................................................ 42 Table 17. Cost-effectiveness and Compliance Summary – Medium Office ........................................................................................ 44 Table 18. Cost-effectiveness and Compliance Summary – Medium Retail......................................................................................... 46 Table 19. Cost-effectiveness and Compliance Summary – Quick-Service Restaurant (without cooking electrification) ..................... 47 Table 20. Cost-effectiveness and Compliance Summary – Quick-Service Restaurant (with cooking electrification) .......................... 49 Table 21. Cost-effectiveness and Compliance Summary – Small Hotel. ............................................................................................ 50 Table 22. Cost-effectiveness and Compliance Summary – Small Hotel (PTHP) ................................................................................ 51 Table 23. Utility Tariffs Analyzed Based on CZ – Detailed View ......................................................................................................... 58 Table 24. Real Utility Rate Escalation Rate Assumptions Above Inflation .......................................................................................... 76 Cost-effectiveness Analysis: Nonresidential New Construction Buildings Table 25. Materials and Labor Adjustment Factors by Climate Zone ................................................................................................. 76 Table 26. Contractor Markup Values .................................................................................................................................................. 77 Table 27. Mixed Fuel Baseline Model – Medium Office ...................................................................................................................... 77 Table 28. All-electric Baseline Model – Medium Retail ....................................................................................................................... 78 Table 29. Mixed Fuel Baseline Model – Quick-Service Restaurant .................................................................................................... 79 Table 30. Mixed Fuel Baseline Model – Small Hotel ........................................................................................................................... 80

LIST OF FIGURES
Figure 1. Medium Office Cost-Effectiveness Summary....................................................................................................................... 35 Figure 2. Medium Retail Cost-effectiveness Summary ....................................................................................................................... 36 Figure 3. QSR Cost-effectiveness Summary ...................................................................................................................................... 38 Figure 4. Small Hotel Cost-effectiveness Summary ............................................................................................................................ 39 Figure 5. Map of California CZs .......................................................................................................................................................... 57 Figure 6. PG&E Electric Schedule - B-1 ............................................................................................................................................. 59 Figure 7. PG&E Electric Schedule - B-10 ........................................................................................................................................... 60 Figure 8. PG&E Gas Schedule – G-NR1 ............................................................................................................................................ 61 Figure 9. SCE Electric Schedule – TOU-GS-1 .................................................................................................................................... 62 Figure 10. SCE Electric Schedule – TOU-GS-2 .................................................................................................................................. 63 Figure 11. SCE Electric Schedule – TOU-GS-3 .................................................................................................................................. 64 Figure 12. SCG Gas Schedule – G-10................................................................................................................................................ 65 Figure 13. SDG&E Electric Schedule – AL-TOU ................................................................................................................................ 67 Figure 14. SDG&E Electric Schedule - EECC .................................................................................................................................... 70 Figure 15. SDG&E Gas Schedule – GN-3 .......................................................................................................................................... 71 Figure 16. CPAU Electric Schedule – E-2........................................................................................................................................... 73 Figure 17. CPAU Gas Schedule – G-2 ............................................................................................................................................... 74 Figure 18. SMUD Electric Schedule – CITS-0/CITS-1 ........................................................................................................................ 75 Figure 19. Percentage GHG Savings – Medium Office ...................................................................................................................... 81 Figure 20. Percentage GHG Savings – Medium Retail ....................................................................................................................... 81 Figure 21. Percentage GHG Savings – Quick Service Restaurant ..................................................................................................... 82 Figure 22. Percentage GHG Savings – Small Hotel ........................................................................................................................... 82

Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 1 Executive Summary

California Energy Codes & Standards | A statewide utility program 2023-03-24

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

The Reach Code Team (the Team) provides this report and accompanying Reach Code Results Workbook to present measures and measure packages that local jurisdictions can adopt to achieve energy savings and emissions reductions beyond what will be accomplished by enforcing the minimum state requirements according to the 2022 Building Energy Efficiency Standards (Title 24, Part 6), effective January 1, 2023. This report documents a variety of above-code electrification, energy efficiency, load flexibility, and solar photovoltaic (PV) packages applied to a set of four nonresidential building prototypes: Medium Office, Standalone Retail, Quick-Service Restaurant, and Small Hotel.

The Team evaluated energy simulation results and code compliance using the CBECC v1.0 software version released in June 2022. Results may change with future software versions. Results across all prototypes indicate the efficiency measures included in the analysis, both On-Bill and TDV, are cost-effective across all climate zones when added to the prescriptive baseline prototype. In all cases all-electric packages are capable of achieving the greatest greenhouse gas emissions reductions as compared to mixed-fuel buildings.

These results, including the attached Reach Code Results Workbook, indicate that all -electric packages can achieve the greatest greenhouse gas emissions reductions as compared to mixed-fuel buildings. Results align with the decarbonization objectives set by California Energy Commission (Energy Commission) , and several new construction new construction ordinances focusing on all-electric design. The results of this study by prototype are summarized below:

Medium Office: Due to the lack of a prescriptive compliance pathway and performance modeling approach in CBECC, all-electric space heating is simulated as electric-resistance variable-air-volume reheat. This system selection limits operational benefits, energy code compliance, and cost-effectiveness. All-electric packages are cost-effective with energy efficiency and load flexibility measures in many climate zones, but do not achieve code compliance across all three metrics—with efficiency TDV margin being the most challenging. Results will be updated in the first half of 2023 when central heat pump boilers can be simulated in CBECC. Jurisdictions may adopt reach codes that exempt building systems that do not have a prescriptive pathway in the energy code and cannot be modeled to comply using the performance approach. Efficiency packages over the mixed- fuel baseline are cost-effective and compliant across all climate zones.

Medium Retail: All-electric is prescriptively required in most scenarios in Retail buildings. The Team identified cost-effective and code compliant packages with energy efficiency measures over an all-electric baseline in most climate zones. This study analyzed mixed-fuel retail buildings with large (>240 kBtuh) gas furnace packaged units replacing the smaller (<240 kBtuh) packaged heat pumps. The mixed-fuel building is neither cost-effective nor code compliant in most climate zones.

Quick-Service Restaurant: The Team identified cost-effective, nearly cost-effective, and code compliant packages in several climate zones for all-electric space conditioning and service water heating when including energy efficiency and solar PV measures. The Team could not identify cost-effective packages including all- electric commercial cooking equipment except for City of Palo Alto Utility (CPAU) territory. Also, when including energy efficiency measures, restaurants with all-electric cooking achieve compliance and are nearly On-Bill cost-effective in Sacramento Municipal Utility District (SMUD) territory as well. Jurisdictions may adopt All- Electric reach codes that exempt commercial cooking equipment or require energy efficiency for either mixed- fuel and/or all-electric buildings, in many climate zones.

Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 2 Executive Summary

California Energy Codes & Standards | A statewide utility program 2023-03-24

Small Hotel: All-electric packages are cost-effective and code-compliant in most climate zones. The remaining climate zones are very close to meeting the TDV Efficiency compliance criteria and may achieve compliance by re-evaluating nonresidential-area modeling using central heat pump boiler instead of electric resistance VAV systems. In addition to electrification packages that include single-zone packaged heat pumps, the Team analyzed an alternative scenario with packaged terminal heat pumps (PTHPs) that improved all-electric code minimum cost-effectiveness due to high first-cost savings, but PTHPs do not achieve TDV Efficiency compliance. Mixed-fuel plus energy efficiency is code compliant and cost-effective across all climate zones.

Jurisdictions may use these results for amending Part 6, Part 11, other parts of the California building code, or their municipal code as determined appropriate for the given jurisdiction. A cost-effectiveness study is required to amend Part 6 of the California building code or when adopting energy efficiency or energy conservation measures, including solar PV or batteries. The Energy Commission has previously concluded that all-electric requirements do not constitute an energy efficiency or energy conservation standard and are outside the scope of Public Resources Code section 25402.1(h)(2).1 Jurisdictions may adopt an All-Electric reach code when amending Part 11 or their municipal code.

Even reach code policies that only require electrification, and do not require energy efficiency or conservation, will benefit from findings in this study to inform potential economic impacts of a policy decision. This study documents the estimated costs, benefits, energy impacts and GHG emission reductions that may result from implementing an ordinance based on the results to help residents, local leadership, and other stakeholders make informed policy decisions.

Model ordinance language and other resources are posted on the C&S Reach Codes Program website at www.localenergycodes.com. Local jurisdictions that are considering adopting an ordinance are encouraged to contact the program for further technical support at [email protected].

1 CEC Letter to South San Francisco 2021: https://bayareareachcodes.org/wp-content/uploads/2022/10/CEC-Letter-to-SSF- Signed.pdf

Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 3 Introduction

California Energy Codes & Standards | A statewide utility program 2023-03-24

1 Introduction
This report documents cost-effective combinations of measures that exceed the minimum state requirements, the 2022 California Building Energy Efficiency Standards Title 24, Part 6 (Title 24) (CEC 2022), effective January 1, 2023, for newly constructed nonresidential 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 Code Team (or “the Team” for short). The objectives of this report are to inform discourse for local reach code adoption and, where applicable, support approval of local energy code amendments from the California Energy Commission (the Energy Commission).

The Reach Code Team performed cost-effectiveness analysis for the following scenarios above prescriptive 2022 Title 24 code requirements in all 16 California climate zones (CZs):
 Fuel substitution with federal code-minimum efficiency appliances, compared to a prescriptive minimum design compliance pathway.
• For the retail building type, the prescriptive code minimum is all-electric. Fuel substitution packages revert to mixed-fuel appliances.
• For all other building types, the prescriptive code minimum is mixed-fuel. Fuel substitution packages switch to all-electric appliances.
 Energy efficiency measures
 Load flexibility measures
 Solar PV and Battery
The Reach Code Team analyzed four prototypes—Medium Office, Medium Retail, Quick-Service Restaurant, and Small Hotel—to represent common nonresidential new construction buildings in the California. The selected building types align with the requests received from dozens of jurisdictions seeking to adopt reach codes. The results of this cost-effectiveness study could potentially be extrapolated to other building types that have similar properties such as occupancy pattern, HVAC design and layout. These results were attained using the first version of California Building Energy Compliance Calculator (CBECC) software that is approved by CEC for 2022 code compliance. There are a few gaps in functionalities and standard design assumptions in this software version, described in Section 2.5, the Reach Code team has been actively coordinating with the CBECC software team to inform future software updates.

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

When adopting local energy efficiency or conservation ordinances, 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 formal approval from the Energy Commission and file the ordinance with the BSC for the ordinance to be legally enforceable. Local jurisdictions do not require Energy Commission approval when adopting ordinances that do not require efficiency or conservation, such as only electrification-required ordinances.

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 equipment 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 Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 4 Introduction

California Energy Codes & Standards | A statewide utility program 2023-03-24

reach code mandatory requirements for covered appliances, in practice, builders may install any package of compliant measures to achieve the performance requirements.

This study references the statewide reach code study performed in 2019 for newly constructed nonresidential buildings as a starting point for additional measure definitions. Importantly, the current 2022 cost-effectiveness report introduced a new restaurant building type and updated the modeling and cost assumptions.

Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 5 Methodology and Assumptions

California Energy Codes & Standards | A statewide utility program 2023-03-24

2 Methodology and Assumptions
The Reach Code Team analyzed four prototypes—Medium Office, Medium Retail, Quick-Service Restaurant, and Small Hotel—using the cost-effectiveness methodology detailed in this section below.

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

2.1.1 Benefits
This analysis used both On-Bill and time dependent valuation (TDV) of energy-based approaches to evaluate cost- effectiveness. Both On-Bill and TDV require estimating and quantifying the energy savings and costs associated with energy measures. The primary difference between On-Bill and TDV is how energy is valued:
 On-Bill: Customer-based lifecycle cost approach that values energy based upon estimated site energy usage and customer On-Bill savings using electricity and natural gas utility rate schedules over a 15 -year duration accounting for a three percent discount rate and energy cost inflation per Appendix 8.2.  TDV: TDV was developed by the Energy Commission to reflect the time dependent value of energy , including long-term projected costs of energy such as the cost of providing energy during peak periods of demand and other societal costs including projected costs for carbon emissions and grid transmission impacts. This metric values energy uses differently depending on the fuel source (gas, electricity, and propane), time of day, and season. Electricity used (or saved) during peak periods has a much higher value than electricity used (or saved) during off-peak periods. This refers to the “Total TDV” that includes all the energy end uses such as space-conditioning, mechanical ventilation, service water heating indoor lighting, photovoltaic (PV) and battery storage systems, and covered process loads.

2.1.2 Costs
The Reach Code Team assessed the incremental costs and savings of the energy packages over a 15 year lifecycle.

Incremental costs represent the equipment, installation, replacements, and maintenance costs of the proposed measure relative to the 2022 Title 24 standards minimum requirements or standard industry practices. The Reach Code Team obtained baseline and measure costs from manufacturer distributors, contractors, literature review, and online sources such as RS Means.

For heating, ventilation, and air conditioning (HVAC) and water heating baseline and measure costs, including gas and electrical infrastructure, the Reach Code Team contracted two different firms, one mechanical contractor (Western Allied Mechanical, based in Menlo Park) and one mechanical designer (P2S Engineering, based in Irvine) to provide cost data. The Reach Code Team developed a basis of design for all prototypes described in section 3.1 and worked with the mechanical contractor and designer to get cost estimates. The Reach Code Team determined HVAC design heating and cooling loads and capacities by climate zone from the energy models. For each HVAC system type, the Reach Code Team requested costs for the smallest capacity unit required and the largest capacity unit required and specified federal minimum equipment efficiency.

The mechanical contractor and mechanical designer collected equipment costs and labor assumptions from their vendors and manufacturers’ representatives, as well as through their own recent projects. The mechanical contractor and designer provided material and labor cost estimates for the entire HVAC and DHW systems, disaggregated by the HVAC and DHW equipment itself; refrigerant piping; structural; electrical supply; gas supply; controls; commissionin g and startup; general conditions and overhead; design and engineering; permit, testing, and inspection; and a contractor profit or market factor. The mechanical contractor and designer provided costs for each of the system capacities, based on which the Reach Code Team developed a relationship between HVAC system capacity and cost to calculate the cost for each building in each climate zone. In most cases, the analysis uses the average of the costs provided by Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 6 Methodology and Assumptions

California Energy Codes & Standards | A statewide utility program 2023-03-24

the contractor and the costs provided by the designer. In some limited cases where costs provided by one source were unlikely to be representative of the measure, costs from only the other source were used. The Reach Code Team added taxes, contractor markups, maintenance costs, and replacement costs where needed, and adjusted material and labor costs for each climate zone based on weighting factors from RS Means (presented in Appendix 8.3).

Actual project costs vary widely based on a range of real-building considerations. The costs that the Reach Code Team determined through contractors are likely costs for the given prototypes and are not representative of all projects.

2.1.3 Metrics
Cost-effectiveness is presented using net present value (NPV) and benefit-to-cost (B/C) ratio metrics.  NPV: Net savings (NPV benefits minus NPV costs). If the net savings of a measure or package is positive over a lifetime of 15 years, it is considered cost-effective. Negative net savings represent net costs to the consumer.

A measure that has negative energy cost benefits (energy cost increase) can still be cost -effective if the incremental costs to implement the measure (i.e., construction and maintenance cost savings) outweigh the negative energy cost impacts.
 B/C Ratio: Ratio of the present value of all benefits to the present value of all costs over 15 years (NPV benefits divided by NPV costs). The criterion for cost-effectiveness is a B/C greater than 1.0. A value of one indicates the savings over the life of the measure are equivalent to the incremental cost of that measure. A value greater than one represents a positive return on investment.

Improving the energy performance of a building often requires an initial capital investment, though in some cases an energy measure may be cost neutral or have a lower cost. In most cases the benefit is represented by annual On -Bill utility or TDV savings and the cost by incremental first cost and replacement costs. 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., shows positive upfront construction cost savings and lifetime energy cost savings), B/C ratio cost-effectiveness is represented by “>1”. Because of these situations, NPV savings are also reported, which, in these cases, are positive values.

2.1.4 Utility Rates
In coordination with the IOU and POU rate teams the Reach Code Team determined appropriate utility rates for each CZ and package as of October 2022. The utility tariffs, summarized in Table 1, were determined based on the annual load profile of each prototype and the corresponding package, the most prevalent rate in each utility territory, and information indicating that the rates were unlikely to be phased out during the code cycle.

A time-of-use (TOU) rate was applied to most cases, some POUs may not have TOU rates. In addition to energy consumption charges, there are kW demand charges for monthly peak loads. Utilities calculate the peak load by the highest kW of the 15-minute interval readings in the month. However, the energy modeling software produces results on hourly intervals; hence, the Team calculated the demand charges by multiplying the highest load of all hourly loads in a month with the corresponding demand charge per kW. The utility rates applicable to a prototype may vary by package and CZ especially between a mixed fuel and all-electric package if the monthly peak demand loads exceed the applicable threshold.

The Reach Code Team coordinated with utilities to select tariffs for each prototype given the annual energy demand profile of each specific prototype, climate zone, and measure package and the most prevalent rates in each utility territory. The Reach Code Team did not compare a variety of tariffs to determine their impact on cost -effectiveness.

Utility rate updates can affect cost-effectiveness results. For a more detailed breakdown of the rates selected, refer to Appendix 8.2.

Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 7 Methodology and Assumptions

California Energy Codes & Standards | A statewide utility program 2023-03-24

For packages with PV generation, the approved Net Energy Metering (NEM) 2.0 tariffs were applied along with minimum daily use billing and mandatory non-bypassable charges. For the PV cases, annual electric production was always less than the modeled annual electricity consumption; therefore, no credits for surplus generation were necessary.

The analysis assumes that utility rates escalate over time for commercial buildings, as described in Appendix 8.2.

Escalation rates above inflation for electricity beyond 2023 are assumed to be between 0.2% and 0.7%, before dropping to a steady 0.6% escalation per year in 2030. Natural gas is assumed to escalate at a relatively higher rate, peaking at 7.7% in 2024, then escalating more slowly to a rate of approximately 2% in the latter years of the analysis period.

Table 1. Utility Tariffs Used Based on CZ (October 2022) 1A: Investor-Owned Utilities
CZs Electric / Gas Utility Electricity Natural Gas
1-5,11-13,16 Pacific Gas & Electric Company (PG&E) B-1 / B-10 G-NR1 6, 8-10, 14,
15 Southern California Edison (SCE) / Southern
California Gas (SCG)
TOU-GS-1 / TOU-GS-2
/TOU-GS-3 G-10 (GN-10)
7, 10, 14 San Diego Gas and Electric Company (SDG&E) AL-TOU + EECC (AL-TOU) GN-3
1A: Publicly-Owned Utilities
CZs Electric / Gas Utility Electricity Natural Gas
4 City of Palo Alto Utilities (CPAU) E-2 G-2
12 Sacramento Municipal Utilities District (SMUD) CI-TOD 1 (CITS-0 /CITS-1) G-NR1

2.2 Energy Simulations
The Reach Code Team performed energy simulations using California’s Building Energy Code Compliance Software CBECC 2022.1.0 (1250) with ruleset version BEMCmpMgr 2022.1.0 (7361) (California Building Energy Code Compliance 2022).2 This is the first 2022 Title 24 code compliance software approved by Energy Commission for compliance of nonresidential buildings on June 8, 2022. The CBECC software combined the capabilities of CBECC- Com and CBECC-Res software into one to model both nonresidential and multifamily building prototypes in one interface.

The Reach Code Team set up parametric simulations using Modelkit software to run thousands of measure packages for each prototype in all California’s CZs. Individual measures were simulated separately and combined into cost- effective measure packages for each CZ. Where necessary, the Reach Code Team employed minor ruleset changes, such as load flexibility measures that alter thermostat setpoint schedules, to improve the cost -effectiveness of measure packages. While these measures produce operational savings, they may not be used to achieve code compliance without further software upgrades.

2 Prior to the CBECC software, the Reach Code Team used CBECC-Com 2022 and CBECC 2022.0.8 Beta to model nonresidential prototypes for the 2022 reach code analysis. The Reach Code Team noted the changes in results due to updates in functionalities and standard design assumptions.

Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 8 Methodology and Assumptions

California Energy Codes & Standards | A statewide utility program 2023-03-24

2.3 2022 T24 Compliance Metrics
2022 Title 24 Section 140.1 defines the energy budget of the building based on source energy and TDV energy for space-conditioning, indoor lighting, mechanical ventilation, photovoltaic (PV) and battery storage systems, and service water heating and covered process loads. CEC has introduced two new compliance metrics in addition to Total Compliance TDV Margin for 2022 code cycle. A building needs to comply with all three compliance metrics 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 Compliance metric includes regulated end-uses accounting for PV and battery storage contributions.
 Source Energy. Source energy is based on fuel used for power generation, assuming utilities meet all Renewable Portfolio Standard (RPS) goals and other obligations projected over 15-year lifecycle.

2.4 GHG Emissions
The analysis uses the GHG emissions estimates built into CBECC. The GHG emission multipliers were developed by Energy + Environmental Economics (E3) to support development of compliance metrics for use in the 2022 California energy code (E3 2021). There are 8,760 hourly multipliers accounting for time dependent energy use and carbon emissions based on source emissions, including RPS projections. For the 2022 code cycle, the multipliers incorporate GHG from methane and refrigerant leakage, which are two significant sources of GHG emissions (NORESCO 2020).

There are 32 strings of multipliers, with a different string for each California CZ and each fuel type (metric tons of CO 2 per kWh for electricity and metric tons of CO2 per therm for natural gas).

2.5 Limitations and Further Considerations
The Team encountered some modeling limitations, outside of the Team’s control that should be noted while using these results to inform reach code policies,
 CBECC Software:
• The Reach Code Team coordinated with the CBECC software development team on potential differences in our understanding of 2022 code requirements and its implementation in standard design such as battery controls. The version of 2022 CBECC software v1.0, described in Section 2.2, available to the Reach Code Team at the time of the analysis has limited functionalities and could not model heat pump hydronic system or other measures like drain water heat recovery. As the software evolves, some results may look different.
• T he most likely all-electric replacement for a central gas boiler serving a variable air volume reheat system would be a central heat pump boiler; however, this system cannot be modeled in CBECC at the time of the writing of this report. The Reach Code Team is treating this analysis as temporary until a compliance pathway is established for a central heat pump boiler in the Energy Code and results can be updated accordingly.
• The team identified some apparent anomalies in software-reported compliance margins when they became available in June 2022. The Reach Code Team is in the midst of discussing outputs and ramifications with software development team specifically related to ventilation such as fan power and heat recovery, among other modeling methods. Results may change with future software versions. In the interim, the Reach Code Team manually calculated the compliance margins using the mixed fuel baseline model created in this study based on our best understanding.

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 Prototype Building: The cost-effectiveness analysis is based on standard prototypical buildings, which may differ from actual buildings being constructed. Jurisdictions should keep this in mind while extrapolating to the buildings in their territory.
 System Cost Assumptions: The incremental electrification and additional measure costs are based on specific system selection and assumptions made by experienced professionals. These costs can vary based on contractor, system design and specifications, and regional variation.

The Team will re-evaluate packages with central heat pump boiler system in Medium Office and Small Hotel in early 2023. In addition to the packages assessed in the report, there are other future potential enhancements that can be considered for more cost-effective or compliant packages:
 Adding more solar PV than already analyzed if the building has more roof space to accommodate.  Adding battery at higher levels than prescriptively required in 2022 Title 24 with more advanced controls.  Adding energy efficiency measures as software capability evolves such as drain water heat recovery.  Applying federally pre-emptive (high) efficiency energy systems or appliances.

Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 10 Prototypes, Measure Packages, and Costs

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3 Prototypes, Measure Packages, and Costs
This section describes the prototype characteristics and the scope of analysis including measures and their corresponding costs. The Reach Code Team used versions of the following four DOE building prototypes to evaluate cost-effectiveness of measure packages in the occupancy types listed below:
 Medium Office
 Medium Retail
 Quick-Service Restaurant (QSR)
 Small Hotel
The Reach Code Team designed the baseline prototypes to be mixed fuel based on 2022 Title 24 Final Express Terms requirements. The Reach Code Team reviewed the 2022 T24 ACM HVAC system map to ensure alignment as applicable for most cases, differences if any are discussed in subsequent sections. The Team built new construction prototypes to have compliance margins as close to zero as possible to reflect a prescriptively compliant new construction building in each CZ. The code compliance is based on the first publicly available CBECC v1.0 compliance software as described in Section 2.2. Misalignments have been reported back to the software team for future software iterations, as described in Section 2.5.

3.1 Prototype Characteristics
The DOE provides building prototype models which, when modified to comply with 20 22 Title 24 requirements, can be used to evaluate the cost-effectiveness of efficiency measures (U.S. Department of Energy 2022 A). These prototypes have historically been used by the Energy Commission to assess potential code enhancements. The selection of four building types for this analysis is based on the priority suggested by a group of California cities. The cost-effectiveness results of this study could potentially be extrapolated to other building types that have similar properties such as occupancy pattern, HVAC design and layout.

Water heating includes both service hot water (SHW) for office and retail buildings and domestic hot water for hotel guest rooms. In this report, water heating or SHW is used to refer to both. The compliance software assumes a Standard Design, where HVAC and SHW systems are based on the system maps included in 2022 Nonresidential ACM Reference Manual. However, the Reach Code Team applied both 2022 Title 24 prescriptive requirements and 2022 ACM system map for baseline mixed fuel model, HVAC and SHW system characteristics as described below.  Medium Office
• The HVAC design is a variable air volume (VAV) reheat system with two gas hot water boilers, three packaged rooftop units (one serving each floor), and VAV terminal units with hot water reheat coils. • The SHW design includes one 8.7 kW electric resistance hot water heater with a 5-gallon storage tank.  Medium Retail
• For CZs 2 to 15, the 2022 Title 24 ACM System Map Standard Design informed the baseline model to have three packaged Single Zone Heat Pump (SZHP) systems for the smaller capacity (<240 kBtuh) thermal zones, in alignment with 2022 Title 24 prescriptive code requirements. 3 The large (>240
kBtuh) core thermal zone has two smaller (<240 kBtuh) SZHPs with VAV fans instead of one large SZHP, since larger rooftop packaged heat pumps are not available in the market. The 2022 Title24 ACM Standard Design assumes a large SZHP for larger zones as well, however this deviation does not impact the results considerably.3

3 https://www.energy.ca.gov/publications/2022/2022-nonresidential-and-multifamily-alternative-calculation-method-reference Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 11 Prototypes, Measure Packages, and Costs

California Energy Codes & Standards | A statewide utility program 2023-03-24

• For CZs 1 and 16, the baseline model assumed all-electric packaged single zone heat pumps similar to CZs 2-15. The assumption deviates from 2022 Title24 ACM System Map that suggests a single zone dual fuel heat pump. Presumably this will not impact results significantly because the dual fuel system will be in heat-pump mode most times.
• The SHW design includes one 8.7 kW electric resistance hot water heater with a 5-gallon storage tank.  Quick-Service Restaurant
• HVAC includes two SZAC (VAV or constant volume, depending on capacity) with gas furnace, one for kitchen and another for dining area. An exhaust fan is applied for kitchens in all climates based on prescriptive requirements in 2022 Title 24 code.
• The SHW design includes a gas storage water heater with a 100-gallon storage tank.  Small Hotel
• The nonresidential HVAC design is a VAV reheat system with two gas hot water boilers, four packaged rooftop units (one serving each floor), and VAV terminal units with hot water reheat coils. The SHW design includes a small electric resistance water heater with 30-gallon storage tank. • The guest room HVAC design includes one packaged SZAC unit with gas furnace serving each guest room. The water heating design includes a central gas water heater with a 250-gallon storage tank and recirculation pump, serving all guest rooms.

Table 2 summarizes the baseline mixed-fuel prototype characteristics, based on prescriptive 2022 Title 24 new construction requirements.

Table 2. Baseline Prototype Characteristics

Medium Office

Medium Retail

Quick-Service Restaurant

Small Hotel
Conditioned floor
area (ft2) 53,628 24,563 2,501
42,554
(77 guest rooms)
(Nonresidential area:
15,282 (36%))
Number of stories 3 1 1 4
Window-to-Wall
Area ratio 0.33 0.07 0.11 0.14
Window U-
factor/SHGC
U-factor:

CZ 1-8, 10, 16 – 0.36
CZ 9, 11-15 – 0.34
SHGC:

CZ 1-8, 10, 16 – 0.25
CZ 9, 11-15 – 0.22
U-factor:

CZ 1-8, 10, 16 – 0.36
CZ 9, 11-15 – 0.34
SHGC:

CZ 1-8, 10, 16 – 0.25
CZ 9, 11-15 – 0.22
U-factor:

CZ 1-8, 10, 16 – 0.36
CZ 9, 11-15 – 0.34
SHGC:

CZ 1-8, 10, 16 – 0.25
CZ 9, 11-15 – 0.22
Nonresidential:

U-factor:

CZ 1-8,10,16 – 0.36
CZ 9, 11-15 –0.34
SHGC:

CZ 1-8,10,16 – 0.25
CZ 9, 11-15 – 0.22

Guest Rooms:

U-factor: 0.36
SHGC: 0.25
Solar PV size 123 kW – 204 kW
Depending on CZ
64 kW – 87 kW
Depending on CZ None 17 kW – 25 kW
Depending on CZ
Battery Storage 217 kWh – 360 kWh
Depending on CZ
70 kWh – 94 kWh
Depending on CZ None 16 kWh – 24 kWh
Depending on CZ

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Medium Office

Medium Retail

Quick-Service Restaurant

Small Hotel
HVAC System
VAV reheat system with
packaged rooftop units,
gas boilers, VAV terminal
units with hot water
reheat
CZ 1
Heat recovery for Core
Retail space only

< 65 kBtu/h: SZHP
> 65 kBtu/h and < 240
kBtu/h: SZHP VAV
> 240 kBtu/h: SZHP VAV
< 65 kBtu/h:

SZAC + gas furnace

> 65 kBtu/h:

SZAC VAV
Nonresidential and Laundry:

VAV reheat system with
packaged rooftop units, gas
boilers, VAV terminal units with
hot water reheat

Guest Rooms: SZAC with gas
furnaces
SHW System 5-gallon electric resistance
water heater
5-gallon electric resistance
water heater
100-gallon gas water
heater
Nonresidential: 30-gallon
electric resistance water heater
Laundry Room: 120-gal gas
storage water heater
Guest rooms: Central gas water
heater, 250 gallons storage,
recirculation loop

3.2 Measure Definitions and Costs
The measures evaluated in the analysis fall into four different categories:

Fuel Substitution
 Heat pump or electric
space heating or gas
furnace
 Heat pump or electric
water heaters
 Electric cooking
 Electric clothes dryer
 Electrical panel capacity
 Natural gas infrastructure
Energy Efficiency
 Envelope
 Mechanical equipment
(HVAC and SHW)
 Lighting
Load Flexibility
 Peak Load
shedding
 Load shift

Additional solar PV
and/or battery
storage.

These measures are detailed further in this section.

3.2.1 Fuel Substitution
The Reach Code Team investigated the cost and performance impacts and associated infrastructure costs associated with changing the mixed-fuel baseline HVAC and water heating systems to all-electric equipment for all prototypes except Medium Retail where the baseline is already an all-electric design.

For Medium Office, Quick Service Restaurant and Small Hotel, the fuel substitution measure entails electrification including heat pump space heating, electric resistance re-heat coils, electric water heaters with storage tank, heat pump water heating, increasing electrical capacity, and eliminating natural gas connections that would have been present in mixed-fuel new construction.

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For Medium Retail with all-electric baseline, the fuel substitution measure entails mixed-fuel space conditioning system including single zone packaged AC with gas furnace, dual fuel heat pump, adding gas infrastructure costs and eliminating any additional electric infrastructure.

3.2.1.1 HVAC and Water Heating
The 2022 T24 nonresidential standards analysis uses a mixed-fuel baseline for most of the Standard Design mechanical equipment, primarily gas for space heating, except for some heat pump scenarios in Retail prototype (see Table 2). Quick-Service Restaurant has a gas storage water heater in baseline, and heat pump water heater in all- electric scenario. The Small Hotel has a central gas water heating system serving the guest rooms and a separate gas storage water heater for laundry room. In the all-electric scenario, gas equipment serving HVAC and water heating end-uses is replaced with electric equipment. Full details of HVAC and water heating systems in baseline and proposed fuel substitution measure package are described in Table 3.

Regions of California covered by the South Coast Air Quality Management District have emissions restrictions imposed on mechanical equipment. The Reach Code Team investigated the potential cost implications of meeting these requirements for gas furnaces and boilers but found that costs are minimal for mechanical systems under 2,000,000 Btu/h, and therefore did not include them. All gas-fired mechanical systems in this study are under 2,000,000 Btu/h and are subject to only an initial permitting fee, while larger systems require additional permitting costs and annual renewals.

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Table 3. HVAC and Water Heating Characteristics Summary

Medium Office

Medium Retail

Quick-Service
Restaurant

Small Hotel
HVAC
Baseline
Packaged DX +
VAV with hot
water reheat.

Central gas
boilers.

All zones and CZs: Single
zone packaged heat
pumps
Packaged SZAC +
gas furnace

Nonresidential: Packaged DX
+ VAV with hot water
reheat. Central gas boilers.

Guest Rooms: Packaged
SZAC +
gas furnaces
Proposed – Fuel
Substitution
Packaged DX +
VAV with electric
resistance reheat.

Core zone (>30 ton):

Packaged SZAC + VAV +
gas furnace
Other small zones: SZHP,
or dual fuel heat pump
for CZ 1 and 16
Single zone packaged
heat pumps
Nonresidential: Packaged DX
+ VAV with electric
resistance reheat

Guest Rooms: SZHPs
SHW
Baseline
Electric resistance
with storage
Electric resistance with
storage
Gas storage water
heater
Nonresidential: Electric
resistance storage

Guest Rooms: Central gas
storage with recirculation
Proposed – Fuel
Substitution
Unitary heat pump
water heater
Nonresidential: Electric
resistance storage

Guest Rooms: Central heat
pump water heater with
recirculation
The Reach Code Team received cost data for mechanical equipment from two experienced mechanical design firms including equipment and material, labor, subcontractors (for example, HVAC and SHW control systems), and contractor overhead.

3.2.1.1.1 Medium Office
For the Medium Office all-electric HVAC design, the Reach Code Team investigated several potential all-electric design options, including variable refrigerant flow, packaged heat pumps, and variable volume and temperature systems. The most likely all-electric replacement for a central gas boiler serving a variable air volume reheat system would be a central heat pump boiler; however, this system cannot be modeled in CBECC at the time of writing of this report. As such, Reach Code Team is treating this analysis as temporary until a compliance pathway is established for a central heat pump boiler in the Energy Code and results can be updated accordingly. This modeling capability is anticipated by Q1 2023 according to discussions with the CBECC software development team, and the cost - effectiveness analysis should become available in the first half of 2023.

After seeking feedback from the design community and considering the software modeling constraints, the Reach Code Team determined that the most feasible all-electric HVAC system is a VAV system with an electric resistance reheat instead of hot water reheat coil. A parallel fan-powered box (PFPB) implementation of electric resistance reheat

Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 15 Prototypes, Measure Packages, and Costs

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would further improve efficiency due to reducing ventilation requirements, but an accurate implementation of PFPBs is not currently available in compliance software.

The actual gas consumption for the VAV hot water reheat baseline may be higher than the current simulation results due to a combination of boiler and hot water distribution losses. A recent research study shows that the total losses can account for as high as 80 percent of the boiler energy use. 4 If these losses are considered savings for the electric resistance reheat (which has zero associated distribution loss), cost-effectiveness may be higher than presented.

The all-electric SHW system remains the same electric resistance water heater as the baseline and has no associated incremental costs. Cost data for Medium Office designs are presented in Table 4. The all-electric HVAC system presents cost savings compared to the hot water reheat system from elimination of the hot water boiler and associated hot water piping distribution. CZ10 and CZ15 all-electric design costs are slightly higher because they require larger size rooftop heat pumps than the other CZs.

Table 4. Medium Office Average Mechanical System Costs
Components (HVAC Only)

Baseline – Mixed Fuel

Proposed – All-electric Incremental Cost
Description
Packaged units, boilers,
hot water piping, VAV
boxes, ductwork, grilles
Packaged units, electric
resistance VAV boxes,
electric circuitry,
ductwork, grilles
VAV Boxes, electric
infrastructure
Material $491,630 $438,555 $(53,075)
Labor $173,816 $102,120 $(71,696)
Electric Infrastructure $0 $112,340 $112,340
Gas Infrastructure $17,895 $0 $(17,895)
Overhead & CZ adjustment ** $267,052 $250,114 $(16,938) TOTAL $950,393 $903,129 $(47,264)
** The overhead and CZ adjustment factors are presented in Section 8.3.

3.2.1.1.2 Medium Retail
The baseline HVAC system includes five packaged single zone heat pumps. Based on fan control requirements in Section 140.4(m), units with cooling capacity ≥ 65,000 Btu/h have variable air volume fans, while smaller units have constant volume fans. For the Medium Retail proposed fuel substitution scenario, the Reach Code Team assumed one large Single Zone Packaged ACs with gas furnaces to replace the two smaller packaged heat pumps in the large core thermal zone. The all-electric SHW system remains the same electric resistance water heater as the baseline and has no associated incremental costs. In addition, according to the prescriptive requirement in Section 140.4 (q), the air system of Core Retail Zone in CZ1 meets the requirement in Table 140.4 J, which should include exhaust air heat recovery. Cost data for Medium Retail designs are presented in Table 5. Costs for rooftop air-conditioning systems are very similar to rooftop heat pump systems.

4 Raftery, P., A. Geronazzo, H. Cheng, and G. Paliaga. 2018. Quantifying energy losses in hot water reheat systems. Energy and Buildings, 179: 183-199. November. https://doi.org/10.1016/j.enbuild.2018.09.020. Retrieved from https://escholarship.org/uc/item/3qs8f8qx

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For climate zones 2 to 15, the proposed fuel substitution HVAC design includes three SZHP units (VAV or constant volume, depending on capacity) based on prescriptive requirements and one large SZAC that is between 35-45 tons for the core zone.

For climate zones 1 and 16, the smaller capacity (<240 kBtuh) thermal zones may have either of dual-fuel SZHPs or SZACs, depending on capacity. The core zone with 35-to-45-ton cooling capacity is assumed to have one large SZAC.

CZ 1 also assumes an exhaust air heat recovery system for core zone based on prescriptive requirement in Title 24 Part 6 Section 140.4.

Table 5. Medium Retail Average Mechanical System Costs
Components (HVAC
Only)
Baseline – All-electric

Proposed – Mixed Fuel Incremental Cost
Description SZHPs
Single zone AC +
furnace, SZHP, or dual
fuel SZHP, depending
upon capacity and CZ
SZAC with gas furnace,
Added gas
infrastructure cost
HVAC – Material $189,160 $183,157 $(6,003)
HVAC – Labor $54,785 $52,886 $(1,899)
Electric Infrastructure $0 $0 -
Gas Infrastructure $0 $17,895 $17,895
Overhead & CZ
adjustment **
$94,600 $98,519 $3,919
TOTAL $338,546 $352,458 $13,912
** The overhead and CZ adjustment factors are presented in Section 8.3.

3.2.1.1.3 Quick-Service Restaurant
The baseline HVAC system includes two packaged single zone rooftop ACs with gas furnaces . Based on fan control requirements in Section 140.4(m), units with cooling capacity ≥ 65,000 Btu/h have variable air volume fans, while smaller units have constant volume fans. The SHW design includes one central gas storage water heater with 150 kBtu/h input capacity and a 100-gallon storage tank. For the QSR all-electric design, the Reach Code Team assumed packaged heat pumps and an A.O. Smith CHP-120 heat pump water heater with a 120-gallon storage tank. Cost data for the QSR designs are presented in Table 6, which shows the costs for full electrification of the HVAC and water heating equipment.

The Team has not included costs of electrifying the cooking equipment because of the negative impact on cost- effectiveness, as demonstrated in a 2021 Restaurants cost-effectiveness study (TRC, P2S Engineers, and Western Allied Mechanical 2022). The HVAC and SHW electrification packages are referred to as the HS package to reflect all- electric HVAC and SHW.

Table 6. Quick-Service Restaurant Average Mechanical System Costs - HS Package Components

Baseline – Mixed Fuel

Proposed – All-electric Incremental Cost
Description Single zone AC + furnace, gas
storage water heater
SZHP, heat pump water
heater
HVAC +SHW
electrification
HVAC Material $50,065 $52,785 $2,719
HVAC Labor $6,748 $6,249 $(499)
SHW – Material $10,198 $13,720 $3,523
SHW – Labor $2,650 $2,529 $(121)
Electric Infrastructure $0 $12,960 $12,960

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Gas Infrastructure $17,895 $15,878 -$2,017
Overhead & CZ adjustment ** $41,633 $47,612 $5,979 TOTAL $150,838 $173,382 $22,544
** The overhead and CZ adjustment factors are presented in Section 8.3.

3.2.1.1.4 Small Hotel
The Small Hotel has two different baseline equipment systems, one for the nonresidential spaces and one for the guest rooms. The nonresidential HVAC system includes two gas hot water boilers, four packaged rooftop units , and twenty- eight VAV terminal boxes with hot water reheat coil. The SHW design includes a small electric water heater with storage tank for nonresidential areas and gas storage water heater dedicated to laundry room. The guest rooms HVAC design includes one single-zone AC unit with gas furnace for each guest room, and the water heating design includes one central gas storage water heater with a recirculation pump for all guest rooms.

For the Small Hotel all-electric design, the Reach Code Team assumed the nonresidential HVAC system to be packaged heat pumps with electric resistance VAV terminal units, and the SHW system will remain a small electric resistance water heater. As described in Section 3.2.1.1.1 above, a central heat pump boiler may be the most commonly employed system type but was not evaluated in this study because of modeling limitations. For the guest room all-electric HVAC system, the Team assumed SZHPs and a central heat pump water heater serving all guest rooms. For the laundry room, all-electric HVAC system is same as other nonresidential areas and all-electric water heating is a split heat pump water heater. The central heat pump water heater includes a temperature maintenance loop with an electric resistance backup heater.

Cost data for Small Hotel designs are presented in Table 7. The all-electric design presents substantial cost savings because there is no hot water plant or piping distribution system serving the nonresidential spaces. The incremental cost savings are further enhanced considerably if packaged terminal heat pumps (PTHPs) are used instead of SZHPs in guest rooms compared to split DX/furnace systems with individual flues.

Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 18 Prototypes, Measure Packages, and Costs

California Energy Codes & Standards | A statewide utility program 2023-03-24

Table 7. Small Hotel HVAC and Water Heating System Costs Components

Baseline – Mixed Fuel

Proposed – All-electric Incremental Cost
Description
Non-residential spaces: Packaged
units, boilers, hot water piping,
VAV boxes, ductwork, grilles, gas
water heater for laundry

Guest rooms: SZAC + furnace,
central gas water heater
Non-residential spaces:

Packaged units, electric
resistance VAV boxes, electric
circuitry, ductwork, grilles, heat
pump water heater for laundry

Guest rooms: SZHP, central
heat pump water heater
HVAC (NR and Guest Rooms)
Electrification
SHW (Laundry Room and
Guest Rooms)
HVAC - Material $802,004 $625,642 $(176,361)
HVAC - Labor $366,733 $282,394 $(84,339)
SHW - Material $55,829 $139,087 $83,258
SHW - Labor $11,780 $15,080 $3,300
Electric
Infrastructure
$- $119,625 $119,625
Gas Infrastructure $74,943 $- $(74,943)
Overhead & CZ
adjustment **
$518,741 $461,001 $(57,739)
TOTAL $1,830,029 $1,642,830 $(187,199)
TOTAL
HVAC (PTHP option) $1,830,029 $1,161,178 ($668,851)
** The overhead and CZ adjustment factors are presented in 8.3.

3.2.1.2 Commercial Cooking Equipment
For Quick-Service Restaurant prototype, the Reach Code Team evaluated electrification of commercial cooking equipment extensively in 2019 Restaurants Cost Effectiveness analysis and leveraged it for cost and other specifications for the this study. It assumes a Type I exhaust hood and shows high incremental cost affecting the cost- effectiveness of this measure. Table 8 summarizes the quick-service restaurant cooking equipment costs for both mixed-fuel and all-electric scenarios.

Table 8. Quick-Service Restaurant Cooking Equipment Costs Components

Baseline – Mixed Fuel

Proposed – All-electric (non
“HS” scenario) Incremental Cost
Description Gas based appliances Electric cooking appliance Cooking appliance electrification
Cooking equipment
cost
$21,649 $43,534 $21,886
TOTAL $21,649 $43,534 $21,886

This measure also adds electric infrastructure cost as detailed in Table 10 below.

3.2.1.3 Commercial Clothes Dryer
For the all-electric measure, the Reach Code Team assumed electric resistance clothes dryers for Small Hotel prototype. Commercial-scale heat pump clothes dryers take significantly longer time to dry compared to a conventional

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gas or electric dryer and are not common in the United States On-Premise Laundry (OPL) market, where labor is relatively expensive and use of heat pump dryers implies hotels may need to require more than one shift to perform laundry duties. Most commercial clothes dryers are available in models that use either gas or electricity as the fuel source, so there is negligible incremental cost for electric resistance dryers. Table 9 summarizes the Small Hotel construction costs for both mixed-fuel and all-electric OPL scenarios.

Table 9. Small Hotel Clothes Dryer Costs
Components

Baseline – Mixed Fuel

Proposed – All-electric Incremental Cost
Description Gas clothes dryer Electric resistance clothes dryer -
Clothes Dryer cost $29,342 $29,342 $0
TOTAL $29,342 $29,342 $(0)

This measure also adds electric infrastructure cost as detailed in Table 10 below.

3.2.1.4 I nfrastructure Impacts

3.2.1.4.1 Electrical infrastructure
Electric heating appliances and equipment often require a larger electrical connection than an equivalent gas appliance because of the higher voltage and amperage necessary to electrically generate heat . Thus, many buildings may require larger electrical capacity than a comparable building with natural gas appliances. This includes:
 Electric resistance VAV space heating in the medium office and common area spaces of the small hotel .  Heat pump water heating for the guest room spaces of the small hotel.

Table 10 details the cost impact of additional electrical panel sizing and wiring required for all-electric scenarios as compared to their corresponding mixed-fuel scenario The costs are based on estimates from one contractor. The Reach Code Team excluded costs associated with electrical service connection upgrades because these costs are very often rate-based and highly complex.

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California Energy Codes & Standards | A statewide utility program 2023-03-24

Table 10. Electrical Infrastructure Costs
Mixed-Fuel Equipment All-electric Equipment Electrical Infrastructure Impact
Incremental
Cost
Medium
Office
Hot water reheat system
with gas boiler plant and
VAV boxes with hot water
reheat coils
VAV boxes with electric
resistance reheat coils
Upgraded transformers,
transformer feeders,
switchboards, and branch
circuits
$ 112,340
Medium
Retail
Mix of SZHPs and single zone
AC plus furnace serving all
zones
SZHPs serving all zones Electrical requirements are
driven by cooling capacity,
so no impact.
$0
Quick-Service
Restaurant
Gas water heater Heat pump water heater Upgraded switchboard, transformer feeder, and
branch circuits
$12,960
Gas Water heater, Gas
cooking
Heat pump water heater,
Electric cooking
Upgraded switchboard,
transformer feeder, and
branch circuits
$95,260
Small Hotel Guest rooms HVAC: Single
zone AC plus furnace

Non-residential spaces
HVAC: Hot water reheat
system with gas boiler plant
and VAV boxes with hot
water reheat coils.

Water heating: Gas water
heating serving both laundry
and guest rooms.

Process: Gas dryers.

Guest rooms HVAC: SZHPs

Non-residential spaces
HVAC: VAV boxes with
electric resistance reheat
coils.

Water heating: Heat pump
water heating serving both
laundry and guest rooms.

Process: Electric resistance
dryers.

Upgraded transformers,
transformer feeders,
switchboards, and branch
circuits
$119,625

3.2.1.4.2 Gas Piping
The Reach Code Team assumes that gas would not be supplied to the site in an all-electric new construction scenario.

Eliminating natural gas in new construction would save costs associated with connecting a service line from the street main to the building, piping distribution within the building, and monthly connection charges by the utility.

The Reach Code Team determined that for a new construction building with natural gas piping, there is a service line (branch connection) from the natural gas main to the building meter. Table 11 gives a summary of the gas infrastructure costs by component, assuming 1-inch corrugated stainless-steel tubing (CSST) material is used for the plumbing distribution. The Reach Code Team assumes that the gas meter costs vary depending on the gas load.

Based on typical space heating loads for all building types, the Reach Code Team categorized CZs 1 and 16 as ‘High- load CZs’ and CZs 2-15 as ‘Low-load CZs’. The Reach Code Team assumed an interior plumbing distribution length based on the expected layout. Table 12 gives the total gas infrastructure cost by building type. The costs are based on estimates from one contractor.

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Table 11. Gas Infrastructure Costs by Component
Component Details Cost
Meter, including Pressure
Regulator, and Earthquake Valve
Low load CZ (CZ 2-15) $11,056
High load CZ (CZ 1,16) $15,756
Gas lateral Cost per linear foot of 1" CSST $40
Connection charges Includes street cut and plan review $1,015 Interior plumbing distribution Cost per linear foot of 1" CSST $40

Table 12. Total Gas Infrastructure Cost Estimates by Building Type Total gas infrastructure cost
Building Prototype Interior plumbing distribution length (ft) Low load CZ High load CZ Medium Office 100 $17,307 $22,007
Medium Retail 100 $17,307 $22,007
Quick-Service Restaurant 100 $2,017*
Small Hotel 1,412 $70,243 $74,943
*The Quick-Service Restaurant package includes gas cooking appliances, which will require a gas lateral and meter. These costs represent only the interior plumbing distribution costs that would have served the HVAC and SHW systems.

3.2.2 Efficiency
The Reach Code Team started with a potential list of energy efficiency measures proposed for the 2025 Title 24 energy code update by the Statewide Building Codes Advocacy program (CASE Team)5, which initially included over 500 options. Other options originated in previous energy code cycles or were drawn from other codes or standards (examples: ASHRAE 90.1 and International Energy Conservation Code [IECC]), literature reviews, or expert recommendations. The Reach Code Team leveraged the CASE Team's assessment tools for the 2025 Cycle, focusing on measures prioritized by the CASE Team. The Reach Code Team filtered the list of potential measures based on building type (to remove measures that applied to building types not covered in this study), measure category (to remove end-uses and loads that are not relevant to the prototypes) and impacts to new construction. Based on this filtering, the Team was left with around 100 measures to consider. The Reach Code Team ranked this list of potential measures based on applicability to the prototypes in this study, ability to model in simulation software, demonstrated energy savings potential, and market readiness.

Please note that the measures requiring a ruleset update cannot currently be modeled for compliance purposes. The modeling method for each efficiency measure is defined in their respective measure descriptions in Section 3.2.2.1 and if the ruleset amendment was applied. Please refer to Section 2.5 for further details.

The subsections below describe the energy efficiency measures that the Team analyzed, including description, modeling approach, and specification.

3.2.2.1 Envelope

1. Cool Roof: Requires higher reflectance and emittance values for the Medium Office building only. This measure was not shown to produce substantial savings in the other prototypes.

5 https://title24stakeholders.com/
Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 22 Prototypes, Measure Packages, and Costs

California Energy Codes & Standards | A statewide utility program 2023-03-24

Modeling: Modeled cool roof measure in efficiency measures package by updating Aged Solar Reflectance (ASR) and/or Thermal Emittance (TE) in CBECC software.

Specification: Increased ASR from 0.63 to 0.70 with a TE of 0.85 in CZs 4 and 6-15.

2. Efficient Vertical Fenestration: Requires lower U-factor and Solar Heat Gain Coefficient (SHGC) for windows in select climate zones for three building types (Medium Office, Retail, and Small Hotel). The measure details and the climate zone selection are based on the proposition of 2022 NR CASE Report (Statewide CASE Team 2020 B).

Modeling: Modeled high performance windows in efficiency measures package by updating U -factor and SHGC inputs in CBECC software.

Specification: Reduced U-factor from 0.36 to 0.34 and SHGC from 0.25 to 0.22 in CZs 2, 6, 7 and 8 for Medium Office and Retail, Reduced U-factor from 0.36 to 0.34 and SHGC from 0.25 to 0.22 in all CZs for Small Hotel.

3. Vertical Fenestration as a Function of Orientation: Limit the amount of fenestration area as a function of orientation for the Medium Office. East-facing and west-facing windows are each limited to one-half of the average amount of north-facing and south-facing windows.

Modeling: Change z-coordinate input of windows in CBECC software for Medium Office to increase or decrease fenestration area for the Medium Office.

Specification: Decreased east-facing and west-facing fenestration area from 468 to 390 square feet.

Increased north-facing and south-facing fenestration area from 703 to 781 square feet.

3.2.2.2 Mechanical Equipment (SHW and HVAC)

4. Water Efficient Fixtures in Kitchen: Specifies commercial dishwashers that use 20% less water than ENERGY STAR® specifications. In addition, the dishwasher includes heat recovery function such that it only needs connection to cold water and reduces hot water demand and central SHW system capacity. For QSRs, which typically specify a three-compartment sink for dishwashing, this measure would replace or add a dishwasher to reduce total hot water load. The measure also adds 1.0 gallon per minute (GPM) faucet aerators to hand-washing sinks in the kitchen to reduce water usage. Title 20 requires kitchen sinks to have a flow rate of 1.8 GPM at most. The reduced hot water load from the water efficient fixtures above allows the heat pump water heater (HPWH) to operate without an electric resistance back-up.

Modeling: Reduced water usage in the ruleset based on calculations of expected water usage from literature review and fixture specifications. HPWH coefficient of performance (COP) is increased since there is no electric resistance back-up.

Specification: Decreased hot water usage by 26% in the software ruleset (13.4 gallons per person to 9.9 gallons per person) and increased HPWH COP from 3.1 to 4.2.

5. Ozone Washing Machines: Adds an ozone system to the large on-premises washing machines. The ozone laundry system generates ozone, which helps clean fabrics by chemically reacting with soils in cold water. This measure saves energy by reducing hot water usage and by reducing cycle time for laundry systems. Refer to DEER Deemed measure SWAP005-01 for more information (California Public Utilites Commission 2022).

Modeling: R educed the total runtime of each cycle and hot water hourly usage per person (gallons per hour per person) for laundry area in software ruleset.

Specification: Reduced hot water usage by 85%, from 48.4 to 7.3 gal/hour-person based on the deemed measure data from the California electronic Technical Reference Manual (California Technical Forum 2022).

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6. Efficient Hot Water Distribution: Reduces domestic hot water (DHW) distribution system pipe heat losses in two ways. First, the Team used pipe sizing requirements in Appendix M of the California Plumbing Code instead of Appendix A. Appendix M reduces pipe diameters for the cold and hot water supply lines based on advancements made in water efficiency standards for plumbing fixtures found in hotel bathrooms. Second, the Team added more stringent pipe insulation thickness requirements for hotels to match that of single and multifamily dwellings using Title 24 Table 160.4-A Pipe Insulation Thickness Requirements for Multifamily DHW Systems instead of Table 120.3-A.

Modeling: The Team calculated the pipe heat loss savings for the Small Hotel prototype by following the modelling methodology applied to the low-rise loaded corridor multi-family building prototype in the 2022 CASE Multifamily Domestic Hot Water Distribution report (Statewide CASE Team 2020 A). The Team designed a riser distribution system for the Small Hotel prototype building using the baseline Appendix A and modern Appendix M pipe sizing tables. The pipe design and total pipe surface area of the supply and return lines for the Small Hotel closely matched the Low-Rise Loader Corridor Building prototype. The hotel insulated pipe heat loss for both Appendix A and M was approximated from the multifamily building heat loss modelling results for the 16 CZs and water heater energy savings calculated for the two sub-measures.

Specification: (a) Pipe diameter decreased from Appendix A requirements to Appendix M multifamily plumbing requirements (b) For pipe diameters at or above 1.5 inches, increase the insulation thickness from 1.5 to two inches thick for fluids operating in the 105-140⁰F temperature range. . The Team reduced the DHW energy consumption by 0.4 – 0.7% depending on CZ in a post- processing of the model.

7. Demand Control Ventilation (DCV) and Transfer Air: The California Energy Code requires kitchen exhaust to have DCV if the exhaust rate is greater than 5,000 cfm. This measure expands this requirement and applies DCV regardless of the exhaust rate for the QSR. Additionally, the kitchen makeup air supply is decreased by requiring at least 15% of replacement air to come from the transfer air in the dining space that would otherwise be exhausted.

Modeling: Changed exhaust fan from constant speed fan to variable speed and reduce kitchen ventilation airflow rate for the QSR.

Specification: Changed Kitchen Exhaust Fan Control Method to Variable Flow Variable Speed Drive, reduced kitchen ventilation from 2,730 cfm to 2,293 cfm.

8. Guest Room Ventilation and Fan Power: Uses the 2021 IECC fan power limitation requirements for ventilation fans under 1/12 horsepower, and approximates the ASHRAE 90.1 Small Hotel guestroom control requirements, which require shutting off ventilation within five minutes of all occupants leaving the room and changing the cooling setpoint to at least 80⁰F and heating setpoint to at most 60⁰F.

Modeling: Since variable occupancy cannot be modeled in CBECC, the Reach Code Team revised the software ruleset ventilation schedule and setpoints from 8:00 AM to 7:00 PM—the time range where the CBECC software assumed occupancy to be less than half for all guestrooms.

Specification: Heating setpoint reduced from 68°F to 66°F, cooling setpoint increased from 78°F to 80°F PM, and ventilation shut off from 8:00 AM to 7:00 PM. Guestroom ventilation fans have fan efficacy of 0.263 W/cfm.

9. Variable speed Fans: Require variable speed fans at lower capacities than required by Title 24 Part 6 Section 140.4(m), currently at 65,000 Btu/hr. This measure is based on the 2022 Title 24 Part 6, Section 140.4(m), Cost-Effectiveness Analysis: Nonresidential New Construction Buildings 24 Prototypes, Measure Packages, and Costs

California Energy Codes & Standards | A statewide utility program 2023-03-24

where direct expansion units greater than 65,000 Btu/hr that control the capacity of the mechanical cooling directly shall have a minimum of two stages of mechanical cooling capacity and variable speed fan control.

Modeling: Reduced the cooling capacity threshold from 65,000 Btu/hr to 48,000 Btu/hr. Changed the supply fan control from constant speed to variable speed for zones that have cooling capacity > 48,000 Btu/hr and < 65,000 Btu/hr in the Medium Retail and QSR.

Specification: Changed the supply fan control from Constant Volume to Variable Speed Drive for the Front Retail and Point-of-Sale thermal zones in Medium Retail prototype and the Dining Zone in the QSR prototype.

3.2.2.3 Lighting

10. Interior lighting reduced lighting power density: Update lighting power densities (LPD, measured as Watts/ft2) requirements based on technology advances (e.g., optical efficiency, thermal management, and improved bandgap materials). Identify spaces with opportunities for more savings from lowered LPDs—not all spaces are subject to LPD reductions. Take into consideration IES recommended practices and biological effectiveness metrics (such as WELL) when developing the proposed LPD values (WELL 2022).

The 2022 Indoor Lighting CASE Study (Statewide CASE Team 2021 D) provided a survey of 2x2 troffer products available in the Design Lights Consortium Qualified Products List (DLC -QPL) and the efficacy level each measured. This study indicated that at the time of the report approximately 20% of available DLC -QPL products exceeded the performance level of the ‘Standard’ DLC-QPL listing by approximately 15%, meeting the ‘Premium’ listing criteria. The Title 24 2022 CASE Report uses the ‘Standard’ designation performance level as the design baseline for all the LPD calculations in the code. This document proposes using the ‘Premium’ designation performance as the basis of the LPD allowances.

A DOE study on solid-state light sources (LEDs) provides projections of efficacy improvement for LED light sources that are in the range of 2.5 to 3% per year, continuing for the next five or ten years (U.S. Department of Energy 2019 B).

So, the products offered for sale by the luminaire manufacturers are improving as older products are discontinued and newer ones are introduced. Even in just three years, the overall performance of the products available can improve by 7 to 9%.

A recent Navigant LED pricing study shows a slightly negative cost to efficacy correlation, indicating that higher performing products may be slightly lower in cost (Navigant Consulting 2018). This is likely to be in part caused by the decreasing cost of the LED chips with each subsequent generation produced. T here is likely to be no cost associated with employing higher performing LED luminaires.

Modeling: Reduce LPDs by approximately 13% in each space listed below under regulated lighting below Title 24 prescriptive requirements.

Specification: Medium Office
• All spaces: 0.52 W/ft2
Medium Retail
• Storage: 0.36 W/ft2
• Retail sales: 0.86 W/ft2
• Main entry lobby: 0.63 W/ft2
QSR
• Dining: 0.41 W/ft2
• Kitchen: 0.86 W/ft2
Small Hotel
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California Energy Codes & Standards | A statewide utility program 2023-03-24

Stairs: 0.54 W/ft2
Corridor: 0.36 W/ft2
Lounge: 0.50 W/ft2
The measures are summarized below by building type, including measure costs, in Table 13.

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Table 13. Efficiency Measures Applicability, Costs, and Sources Measure Applicability
• Included in packages with energy efficiency measures
- Not Applicable
Measure
Baseline T24
Requirement Proposed Measure
Med
Office
Med
Retail
Quick-
Service
Restaurant
Small
Hotel:

Guest
Rooms
Small Hotel:

Nonresidential
Incremental
Cost Sources & Notes
Envelope

1. Cool Roof For low slope roofs:

ASR = 0.63
TE = 0.75
For low slope roofs:

ASR = 0.7
TE = 0.85 ● ─ ─ ─ ─ $0.04/ft2
Final Nonresidential High
Performance Envelope Case
Report (Statewide CASE Team
2020 B)

2. Efficient
Vertical
Fenestration
U-factor = 0.36
SHGC = 0.25
U-factor = 0.34
SHGC = 0.22 ● ● ─ ● ● $1.75/ft2
Final Nonresidential High
Performance Envelope Case
Report (Statewide CASE Team
2020 B)

3. Vertical
Fenestration
as a Function
of Orientation
40% window-to-wall
ratio in each
orientation per Title
24 Table 140.3-B.

Redistribute window
areas by orientation ● ─
─ ─ ─ $0
No additional cost. This
measure is a design
consideration.

HVAC and SHW

4. Water
Efficient
Fixtures in
Kitchen
Kitchen faucet max
flow rate is 1.8 GPM
(Title 20)

Kitchen faucet flow
rate is 1 GPM
─ ─ ● ─ ─
High efficiency,
door-type, high
temperature
dishwasher:
$7,633/unit
Faucet aerator:
$8/unit
Combination of literature
review, online sources such as
Home Depot and
manufacturer websites

5.Ozone
Washing
Machine
Not required Reduced hot water
use ─ ─ ─ ─ ● $25,469/unit
DEER Deemed measure
SWAP005-01 (California
Public Utilites Commission
2022)
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Measure Applicability
• Included in packages with energy efficiency measures
- Not Applicable
Measure
Baseline T24
Requirement Proposed Measure
Med
Office
Med
Retail
Quick-
Service
Restaurant
Small
Hotel:

Guest
Rooms
Small Hotel:

Nonresidential
Incremental
Cost Sources & Notes

6. Efficient Hot
Water
Distribution
Appendix A Pipe
Sizing with standard
pipe insulation
thickness 1.5’’
Appendix M pipe
sizing with 2” pipe
insulation thickness ─ ─ ─ ● ─ $5,819
Multifamily Domestic Hot
Water Final CASE Report

7. DCV &
Transfer Air
DCV required in
kitchen for exhaust
air rate > 5000 cfm
DCV for all exhaust
fans ─ ─ ● ─ ─ $8,500
Mechanical contractor cost
estimate

8. Guest Room
Ventilation,
Temperature
Setback, and
Fan Power
Guest rooms
required to have
occupancy sensing
zone controls, but
no ventilation fan
power requirement.

Updated fan power
and HVAC schedules
─ ─ ─ ● ─ $0
No cost increase, as guest
rooms already have controls.

9. Variable
Speed Fans
Variable speed
required if cooling
capacity is greater
than 65,000 Btu/h
Variable speed
control for smaller
capacity systems ─ ● ● ─ ─ $6,390/unit
Mechanical contractor cost
estimate
Lighting

10. Interior
Lighting
Reduced LPD
Per Area Category
Method, varies by
Primary Function
Area.

Top 20% of market
products ● ● ● ─ ● $0
Industry report on LED pricing
analysis shows that costs are
not correlated with efficacy.
(Navigant Consulting 2018)
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3.2.3 Load Flexibility
The Reach Code Team investigated a range of high-impact demand flexibility strategies potentially applicable to the four prototypes. The list of strategies is informed by DOE’s Grid-interactive Efficient Buildings efforts and the 2022 Nonresidential Grid Integration CASE report (U.S. Department of Energy 2021, Statewide CASE Team 2020). The Team selected the three measures based on their load flexibility potential, cost, compliance software modeling capabilities, savings potential and the ease of project implementation and field verification:

Please note that these measures require a ruleset update and cannot be modeled currently for compliance purposes.

11. Temperature Setback using Smart Thermostat: This measure leverages the existing mandatory requirement for HVAC zone thermostatic controls to pre-condition spaces prior to, and to shed demand during, peak period. This measure introduces a setback in temperature setpoint during peak period and incurs no additional cost because Occupant-Controlled Smart Thermostats (OCSTs) are already required for buildings similar to the Medium Office prototype.

Modeling: Instead of utilizing the demand responsive features, OCST would be used to change temperature setpoints and setpoint schedules. These changes were integrated by altering the setpoint schedules directly in the backend ruleset files of CBECC software.

Specification: In the base case, the Medium Office prototype HVAC equipment schedules dictate "on" hours (at desired temperature) from 6:00 AM through 12:00 AM on weekdays and 6:00 AM – 7:00 PM on Saturdays. All Sunday hours are "off." Cooling setpoints are 75°F during "on" and 85°F when "off" hours; heat setpoints are 70°F during "on" and 60°F during "off" hours. The Team modified this schedule such that the "on" setpoints are stepped back by 2°F from 4:00 PM through 12:00 AM on weekdays; and from 4:00 PM – 7:00 PM on Saturdays.

12. Demand Response Capable HPWH: The Reach Code Team modeled a measure intended to reduce the peak demand of the significant hot water loads in the QSR prototype. The measure increases costs due to adding a 100-gallon storage tank and plumbing hardware. The additional hot water storage enables pre- heating water ahead of demand by effectively increasing the HPWH’s thermal storage capacity. The extra plumbing hardware is needed to keep the stored hot water stratified to maintain efficient HPWH operations.

The Team did not directly address the issue of storage tank location but assumed floor plan design would be able to accommodate it.

Modeling: The measure uses the HPWH and additional storage tank capacity to produce and store hot water ahead of actual use during evening peak period. QSR hot water baseline schedule exhibits a low morning load (6:00 AM – 8:00 AM), moderate load near lunch time (11:00 AM), and a peak evening load (4:00 PM – 11:00 PM). These changes were made by changing the hot water load fraction in the ruleset.

Specification: I mplements an early pre-heat that starts at 12:00 PM and finishes by 7:00 PM, avoiding the super peak hours of 7:00 PM – 9:00 PM.

13. Demand Response Lighting: This measure extends existing Title 24 mandatory requirements for demand responsive lighting by shedding demand during peak hours. There are no additional measure costs because demand responsive control capability is already required for nonresidential buildings with more than 4kW of total lighting load. This measure does not require additional commissioning.

Modeling: The baseline lighting schedule exhibits a plateau of 0.65 load fraction from 8:00 AM – 8:00 PM and trails off after 8:00 PM through the end of the day for weekdays. The Team altered the ruleset to reduce the load fraction during 4:00 PM – 9:00 PM.

Specification: The Team implemented a 10% setback during the 4-9pm peak hours.

Cost-effectiveness Analysis: Nonresidential New Construction 29 Prototypes, Measure Packages, and Costs

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The load flexibility measure applications to each prototype are summarized in Table 14.

Table 14. Load Flexibility Measure Summary
Measure Med
Office
Med
Retail QSR Small Hotel Incremental Cost Other Notes

11. Smart
Thermostat ● - - - $0 Capability already required

12. Demand Control
HPWH - - ● - $5,400
An additional 100-gallon tank,
plumbing hardware, and related
labor hours

13. Demand
Response Lighting ● - - - $0 Capability already required

None of the measures apply to the Medium Retail or Small Hotel prototypes. While the Small Hotel contains some office space and common areas, the Medium Office load flexibility measures were not applied to the Small Hotel spaces because of the potential for unpopular impacts, varying occupancy schedules, difficult field maintenance, and limited energy impacts. Team also explored the impact of load flexibility in all-electric clothes dryer scenario but did not see enough savings impact, hence the measure was not included in the package.

3.2.4 Additional Solar PV and Battery Storage
The Reach Code Team considered additional solar PV and battery storage measures that exceed the 2022 Title 24 prescriptive requirements to improve the cost-effectiveness of proposed scenarios. For Medium Office and Retail, the prescriptive solar PV sizes are large enough to occupy the entirety of the available roof space. Additional rooftop solar PV could not be considered for the two prototypes. For the Quick-Service Restaurant, solar PV is not prescriptively required since the prototype qualifies for the exception and the Reach Code Team considered adding solar PV to improve cost-effectiveness. For Small Hotel, the required PV size in the code-compliant models did not occupy the entire available roof space. Additional PV system capacity was considered as a measure to improve cost-effectiveness.

For the cost-effectiveness analysis, the Team evaluated additional solar PV for all-electric scenarios for the two building types, Quick Service Restaurant and Small Hotel. The additional PV size is calculated based on available roof space, assuming the maximum available space is 50% of total roof space and 15 Watt per square foot panel size.

Modeling: Updated PV capacity (kW) input in CBECC software.

Specification: Baseline requirement is 0 kW and 22-32.6 (depending on climate zone) kW for Quick-Service Restaurant and Small Hotel respectively. Proposed measure specification is 18.8 kW and 79.8 kW for Quick-Service Restaurant and Small Hotel respectively.

The costs for PV include first cost to purchase and install the system, inverter replacement costs, and annual maintenance costs. A summary of incremental costs and sources is given in Table 15 below.

Cost-effectiveness Analysis: Nonresidential New Construction 30 Prototypes, Measure Packages, and Costs

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Table 15. Additional Solar PV Measure Summary
Measure Med
Office
Med
Retail QSR Small
Hotel Incremental Cost Cost Source
Solar PV - - ● ●
First Cost: $3.20/W
Inverter replacement cost at 10-yr:
$0.15/W
Annual Maintenance Cost: $0.02/W
ITC Federal Incentive: 30%
National Renewable Energy
Laboratory (NREL) Q1 2016
(National Renewable Energy
Laboratory 2016)
E3 Rooftop Solar PV System
Report (Energy and
Environmental Economics,
Inc. 2017)
Upfront solar PV system costs are lowered because of the federal income tax credit (ITC)—approximately 30 percent based on the passage of Inflation Reduction Act. PV energy output is built into CBECC and is based on NREL’s PVWatts calculator, which includes long term performance degradation estimates.

A battery storage system is prescriptively required for three prototypes: Medium Office, Medium Retail, and Small Hotel. The current software, CBECC v1.0, applies the appropriate prescriptive battery size (kWh) and capacity (kW) in the standard design. However, the control assumed in standard design is “Basic Control”, which does not function for optimum battery use. The Team did not evaluate additional battery measures because the compliance software does not apply the “Time of Use” battery control method in standard design, which impacts the incremental energy costs and TDV benefits.

3.3 Measure Packages
The Reach Code Team compared a baseline Title 24 prescriptive package to mixed-fuel packages and two to four electrification packages depending on applicability of building type. Note that most QSR all-electric packages exclude kitchen electrification, while the Small Hotel all-electric package does include electric laundry cost and energy impacts.  Mixed Fuel Code Minimum: Mixed-fuel prescriptive building per 2022 Title 24 requirements.  Mixed Fuel + Efficiency Measures: Mixed-fuel prescriptive building per 2022 Title 24 requirements, including additional efficiency measures.
 All-electric Code Minimum Efficiency: All-electric building to minimum Title 24 prescriptive standards and federal minimum efficiency standards. This package has the same PV size as mixed- fuel prescriptive baseline.  All-electric Energy Efficiency: All-electric building with added energy efficiency measures related to HVAC, SHW, lighting or envelope.
 All-electric Energy Efficiency + Load Flexibility: All-electric building with added energy efficiency and load flexibility measures.
 All-electric Energy Efficiency + Solar PV: All-electric building with added energy efficiency and additional Solar PV. The added PV size is larger than prescriptive 2022 Title 24 code requirements and accounts for roof space availability.

For QSR, the Reach Code Team has analyzed two scenarios for all-electric packages, one with electric cooking and the one with gas cooking (the latter of which is referred to as the “HS” package to reflect all-electric HVAC and SHW).

The results section includes results for both scenarios since all-electric package with electric cooking appliance can be cost-effective in POU territories. This study did not evaluate pre-empted package with all-electric HVAC and SHW to Cost-effectiveness Analysis: Nonresidential New Construction 31 Prototypes, Measure Packages, and Costs

California Energy Codes & Standards | A statewide utility program 2023-03-24

have higher efficiency than required by federal regulations, that will potentially enhance cost -effectiveness and/or compliance margins.

For Small Hotel, the Reach Code Team also analyzed an alternative scenario with PTHP instead of SZHP in all-electric scenario. It is denoted by the “PTHP” in parenthesis in package name.

Cost-effectiveness Analysis: Nonresidential New Construction 32 Cost-Effectiveness Results

California Energy Codes & Standards | A statewide utility program 2023-03-24

4 Cost-Effectiveness Results
Cost-effectiveness results are presented in this section and the attached workbook per prototype and measure packages described in Section 3. The TDV and On-Bill based cost-effectiveness results are presented in terms of B/C ratio and NPV.

In the following figures, the result Both (shown in green shading) indicates that the result is cost-effective on both On- Bill and (Total) TDV basis. The result On-Bill or TDV (shown in yellow shading) indicates that the result is either cost- effective on On-Bill or (Total) TDV basis, respectively. The result “ - “ (results with no shading) indicates that the result is not cost-effective on either an On-Bill basis or (Total) TDV basis.

Across all prototypes and climate zones, efficiency measures improve cost-effectiveness when added to the mixed-fuel baseline prototype and all-electric federal code minimum designs.

All-electric cost-effectiveness results by prototype can be summarized as:

Medium Office (Figure 1): All-electric space heating is predominantly achieved through electric resistance due to modeling limitations, which limits operational benefits. Efficiency measures yield some On-Bill cost- effective all-electric packages in milder climate zones. Adding load flexibility measures increases the cost- effectiveness to most climates.

Medium Retail (Figure 2): All-electric packages are cost-effective in all climate zones with added efficiency measures over all-electric baseline. Proposed mixed-fuel packages are cost-effective too with added efficiency measures in most climate zones primarily driven by cost-equivalency in the all-electric package compared to a mixed-fuel package.

Quick-Service Restaurant (

Cost-effectiveness Analysis: Nonresidential New Construction 33 Cost-Effectiveness Results

California Energy Codes & Standards | A statewide utility program 2023-03-24

Figure 3): All-electric package with and without cooking electrification is cost-effective in CPAU and SMUD territories only, On-Bill. All-electric HVAC and SHW package with added efficiency measures is On -Bill cost-effective in CZs 1, 3- 5 and 12. Adding efficiency and solar PV is On-Bill cost-effective in CZs 1-5, 11-13, and 16. While not depicted in Cost-effectiveness Analysis: Nonresidential New Construction 34 Cost-Effectiveness Results

California Energy Codes & Standards | A statewide utility program 2023-03-24

Figure 3, the Results Workbook indicates that all-electric HVAC and SHW plus efficiency packages are nearly cost-effective (greater than
-$350/month) in all climate zones using On-Bill Net Present Values.

Small Hotel (Error! Reference source not found.): The all-electric hotel has tremendous cost savings compared to a mixed-fuel package, primarily due to the avoidance of gas infrastructure to each guest room.

All-electric packages achieve TDV cost-effectiveness in all CZs except 16. On-Bill cost-effectiveness is limited to CZs 2-5, 12 and 15 with single zone ducted heat pumps, but nearly all CZs with a packaged terminal heat pump.

Cost-effectiveness Analysis: Nonresidential New Construction 35 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

4.1 Medium Office
In the all-electric Medium Office building, the upfront cost savings associated with avoiding boiler and gas infrastructure supports cost-effective packages in several climate zones, particularly with additional efficiency and load flexibility measures .  Adding energy efficiency measures over mixed fuel code minimum is On-Bill cost-effective in all climate zones.  The all-electric code minimum efficiency package is cost-effective for CZs 4 (CPAU), 6-10, 12 (SMUD) and 15.  Adding energy efficiency measures to the all-electric code minimum package extends On-Bill cost-effectiveness to CZ 3 as well.  All-electric energy efficiency along with load flexibility measure package is On-Bill cost-effective in most climate zones except 1, 11 and 16.

Figure 1. Medium Office Cost-Effectiveness Summary
Climate Zone CZ1 CZ2 CZ3 CZ4 CZ5 CZ6 CZ7 CZ8 CZ9 CZ10 CZ11 CZ12 CZ13 CZ14 CZ15 CZ16 Utility

PG&E PG&E PG&E

PG&E PG&E SCE SDG&E PG&E SCE

SDG&E PG&E

PG&E PG&E

SDG&E SCE PG&E
Prototype Package CPAU SCG SCE SMUD SCE
Medium
Office
(MO)
Mixed Fuel +
Efficiency
Measures
Both Both Both
Both Both
Both Both Both Both
Both
Both
Both
Both
Both
Both Both
Both Both Both Both Both
All Electric Code
Minimum
Efficiency
─ ─ ─
On-
Bill
─
Both Both Both On-
Bill
On-
Bill ─
─
─
─
Both ─ On-
Bill
─ On-
Bill
On-
Bill
─
All Electric
Energy Efficiency
─ ─ On-
Bill
Both ─
Both Both Both Both
Both
─
─
─
─
Both ─
Both ─ Both On-
Bill
─
All-Electric
Energy Efficiency
+ Load Flexibility
─ Both Both
Both Both
Both Both Both Both
Both On-
Bill
Both
Both
On-
Bill Both ─
Both Both Both Both On-
Bill

Cost-effectiveness Analysis: Nonresidential New Construction 36 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

4.2 Medium Retail
2022 Title 24 code prescriptively requires heat pumps in most scenarios already. This report evaluates added energy efficiency measures over the baseline all- electric scenario and proposed mixed-fuel packages.
 The mixed-fuel code minimum is not cost-effective by itself in most climate zones.  Adding energy efficiency measures to the mixed-fuel code minimum package is On-Bill and/or TDV cost-effective in most climate zones.  Adding energy efficiency measures over prescriptive all-electric package is also cost-effective in most climate zones except CZ16 using TDV.

Figure 2. Medium Retail Cost-effectiveness Summary
Climate Zone CZ1 CZ2 CZ3 CZ4 CZ5 CZ6 CZ7 CZ8 CZ9 CZ10 CZ11 CZ12 CZ13 CZ14 CZ15 CZ16 Utility

PG&E PG&E PG&E

PG&E PG&E

SCE SDG&E PG&E SCE
SDG&E
PG&E
PG&E
PG&E
SDG&E

SCE PG&E
Prototype Package CPAU SCG SCE SMUD SCE
Retail
(RE)
Mixed Fuel Code
Minimum Both ─ ─
─ ─
─ ─ ─ ─
─
─
─
─
On-
Bill ─ On-
Bill ─ ─ ─ ─ On-
Bill
Mixed Fuel +
Efficiency
Measures
Both Both Both
Both Both
Both Both Both TDV
On-
Bill On-
Bill
Both
Both
Both
Both On-
Bill TDV Both ─ TDV Both
All Electric Energy
Efficiency Both Both Both
Both Both
Both Both Both Both
Both
Both
Both
Both
Both
Both On-
Bill Both Both Both Both Both

Cost-effectiveness Analysis: Nonresidential New Construction 37 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

4.3 Quick-Service Restaurant (QSR)
High incremental cost for HVAC and SHW electrification (“HS” package) makes restaurant electrification challenging. Because cooking electrification packages are very expensive – both upfront and operationally in IOU territories – the Team evaluated HS packages that do not consider cooking equipment electrification.

This affects cost-effectiveness as gas infrastructure cost savings do not materialize.  Adding energy efficiency measures over mixed fuel code minimum is On-Bill cost-effective in all climate zones.  All-electric HVAC and SHW “HS” package is On-Bill cost-effective in CZ4 (CPAU) and CZ12 (SMUD) territory only.  Adding energy efficiency and load flexibility measures extends On-Bill cost-effectiveness to CZs 1, 3 and 5.  All-electric HVAC and SHW “HS” package with energy efficiency and solar PV measure is On -Bill cost-effective in climate zones 1-5, 11-13 and 16.  All-electric package including cooking electrification is On-Bill cost-effective in CZ 4 (CPAU) territory only.  The Results Workbook indicates that all-electric HVAC and SHW plus efficiency packages are nearly cost-effective (greater than -$350/month) in all climate zones using On-Bill Net Present Values.

Cost-effectiveness Analysis: Nonresidential New Construction 38 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Figure 3. QSR Cost-effectiveness Summary
Climate Zone CZ1 CZ2 CZ3 CZ4 CZ5 CZ6 CZ7 CZ8 CZ9 CZ10 CZ11 CZ12 CZ13 CZ14 CZ15 CZ16 Utility

PG&E PG&E PG&E

PG&E PG&E

SCE SDG&E PG&E SCE
SDG&E
PG&E
PG&E
PG&E
SDG&E

SCE PG&E
Prototype Package CPAU SCG SCE SMUD SCE
Quick-
Service
Restaurant
(QSR)
Mixed Fuel +
Efficiency
Measures
Both Both Both
Both Both
Both Both Both Both
Both
Both
Both
Both
Both
Both Both
Both Both Both Both Both
All Electric HS
Code Minimum
Efficiency
─ ─ ─
─ ─
─ ─ ─ ─
─
─
─
─
─
─ ─ On-
Bill
─ ─ On-
Bill
─
All Electric HS
Energy Efficiency
On-
Bill
─ On-
Bill
─ On-
Bill ─ ─ ─ ─
─
─
─
─
─
─ ─ On-
Bill
─ ─ On-
Bill
─
All-Electric HS
Energy Efficiency
+ Load Flexibility
On-
Bill ─ On-
Bill
─ ─
─ ─ ─ ─
─
─
─
─
─
─ ─ On-
Bill
─ ─ On-
Bill
─
All Electric HS
Energy Efficiency
+ Solar PV
On-
Bill
On-
Bill
On-
Bill
On-
Bill
On-
Bill ─ ─ ─ ─
─ On-
Bill
On-
Bill On-
Bill
─
─ On-
Bill On-
Bill
On-
Bill
─ On-
Bill
─
All Electric Code
Minimum
Efficiency
─ ─ ─
─ ─
─ ─ ─ ─
─
─
─
─
─
─ ─ On-
Bill
─ ─ ─ ─
All Electric
Energy Efficiency
─ ─ ─
─ ─
─ ─ ─ ─
─
─
─
─
─
─ ─ On-
Bill
─ ─ ─ ─

Cost-effectiveness Analysis: Nonresidential New Construction 39 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

4.4 Small Hotel
The all-electric hotel has cost savings compared to a mixed-fuel package, primarily due to the avoidance of boilers and gas infrastructure to each guest room. The analysis assumes single zone ducted heat pump for all all-electric scenarios; however, the Team analyzed a Packaged Terminal Heat Pump (PTHP) scenario as well. PTHP shows higher incremental cost savings as compared to a baseline of mixed fuel single zone packaged system and hence are cost-effective in many climate zones.
 Adding energy efficiency measures over mixed fuel code minimum is On-Bill cost-effective in all climate zones.  All-electric code minimum packages with or without energy efficiency measure packages are TDV cost-effective in all climate zones except 16, and On- Bill cost-effective in CZ4 (CPAU) and CZ12 (SMUD) due to relatively lower electricity costs.  Additional solar PV over all-electric energy efficiency package extends On-Bill cost-effectiveness to CZs 2, 3, 4 (PG&E), 5 and 15.  The alternative all-electric scenario with PTHP is cost-effective in all climates, On-Bill in most CZs except 7,10 and 14 SDG&E territories.

Figure 4. Small Hotel Cost-effectiveness Summary
Climate Zone CZ1 CZ2 CZ3 CZ4 CZ5 CZ6 CZ7 CZ8 CZ9 CZ10 CZ11 CZ12 CZ13 CZ14 CZ15 CZ16 Utility

PG&E PG&E PG&E

PG&E PG&E

SCE SDG&E PG&E SCE
SDG&E
PG&E
PG&E
PG&E
SDG&E

SCE PG&E
Prototype Package CPAU SCG SCE SMUD SCE
Small
Hotel (SH)
Mixed Fuel +
Efficiency
Measures
Both Both Both
Both Both
Both Both Both Both
Both
Both
Both
Both
Both
Both Both
Both Both Both Both Both
All Electric Code
Minimum
Efficiency

TDV TDV TDV

TDV TDV

TDV TDV TDV TDV
TDV
TDV
TDV
TDV
TDV
TDV ─
Both TDV TDV Both TDV
All Electric Energy
Efficiency TDV TDV TDV
Both TDV

TDV TDV TDV TDV
TDV
TDV
TDV
TDV
TDV
TDV ─
Both TDV TDV Both TDV
All Electric Energy
Efficiency + Solar
PV
TDV Both Both
Both Both

TDV TDV TDV TDV
TDV
TDV
TDV
TDV
TDV
Both ─
Both TDV TDV Both TDV
All Electric Code
Minimum
Efficiency (PTHP)
Both Both Both
Both Both
Both TDV Both Both
TDV
Both
Both
Both
TDV
Both Both
Both Both Both Both Both

Cost-effectiveness Analysis: Nonresidential New Construction 40 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

5 Energy Code Compliance Results and Reach Code Considerations This section combines the cost-effectiveness and 2022 Title 24 energy code compliance metric results — efficiency TDV, total TDV, and source energy, described in Section 2.3 — to highlight the viable reach code options for local jurisdictions. The Reach Code Team calculated metrics using both:

1. Software outputs using the ACM standard design and

2. Manually by subtraction against the baseline model because of software limitations that are beyond the Reach Code Team’s control.6
All Efficiency TDV margins presented in this section are the lower of the two approaches, Software output and Manual, to be conservative and inform the minimum compliance margins that can be met by a typical modeler. Full details of compliance margins and cost-effectiveness results are presented in the Final Results Workbook for reference.

Importantly, the workbook shows that for all prototypes, all-electric packages are capable of achieving greater greenhouse savings as compared to mixed-fuel buildings. Below is a summary of how compliance results as well as cost-effectiveness for each prototype and package could influence reach code options. The Reach Code Team outlines recommendations using the following framework, based on reach codes that were adopted across California under the 2019 building code cycle:
 Mixed fuel buildings are allowed, with efficiency. Local amendments governing efficiency and conservation must be performed in the Title 24 Part 6 Building Energy Efficiency Standards and be approved by the Energy Commission.
• Energy Efficiency — Require energy efficiency for buildings regardless of fuel type. A jurisdiction can require different compliance thresholds for all-electric and/or mixed-fuel. The thresholds should be set considering how they may affect mixed-fuel or all-electric buildings. • Electric-Preferred — Allow mixed-fuel appliances but require a higher building performance via efficiency, total, or source compliance metric (for example, (Milpitas 2019), section 140.1).7 Applies only to mixed-fuel buildings.
 Mixed fuel buildings are not allowed. Local amendments governing green building requirements may be performed in the Title 24 Part 11 Green Building Standards Code and must be filed with the Building Standards Commission. Alternatively, the local amendment may be performed in a municipal code chapter of the ir respective jurisdictions.
• All-Electric — Require certain all-electric only appliances, with exceptions (for example (Menlo Park 2019). Does not involve efficiency or conservation measures, and cost-effectiveness is a not a legal requirement.8 Local amendments may be performed through other building code sections, such as Part 11. See discussion on Exceptions below.
• All-Electric + Efficiency — Require certain all-electric appliances, but with a higher building performance via efficiency, total, or source compliance metric. Also requires amendment to Title 24 Part 6 and approval by the Energy Commission.

6 The difference between the two methods of calculating TDV margins occurs due to various software limitations. The Team had challenges modeling a baseline showing zero-percent (exactly compliant) compliance margin, and differing interpretations of 2022 Title 24 code regarding fan power, exhaust fan, heat recovery, battery control, and other aspects. Most scenarios show similar trends between software calculated compliance margin and the Team’s manual subtraction against baseline model, with a difference in magnitude. For example, if the Total TDV Compliance margin as shown by software directly is negative, it is typically negative per manual calculation as well. Nonetheless, modeling limitations introduce error into the calculations, which may affect results. Many scenarios have very low negative compliance margin and are very close to being zero. While this uncertainty in error may lead to imprecision in results, relative performance across packages can yield information helpful for decision-making. 7 Note Milpitas has since adopted an All-electric with Exceptions code for the 2022 code cycle. 8 See letter from CEC to South San Francisco for reference.

Cost-effectiveness Analysis: Nonresidential New Construction 41 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Exceptions enable reach codes to broadly require electrification except for specific building systems. These systems may have uncertainty on energy code compliance, building industry electrification approaches, or other related impacts on economic development. During the 2019 code cycle, cities developed exemptions based on discussions with local stakeholders, resulting in a wide array of exemption types.9 For the four prototypes in this study, the Team has determined two exemptions that may be necessary for cities passing All-Electric reach codes.  Building systems without a prescriptive compliance pathway in the energy code. This exemption considers that all-electric central space heating does not have a prescriptive pathway in Title 24, and central heat pump boilers cannot be currently modeled, which has impacted compliance results for the Medium Office and Small Hotel. This exemption has broad precedence and can apply to other large nonresidential buildings (e.g., (Berkeley 2019), section 12.80.040.A Exception 1). These exemptions typically state that the building is also not able to comply via the performance approach using commercially available technology.  Commercial cooking. Cooking electrification does not considerably impact code compliance but is not nearly cost-effective against a mixed-fuel baseline. To account for this challenge, cities may wish to adopt reach codes that exempt commercial kitchen cooking appliances (e.g., (Menlo Park 2019) 100.0(e)2.A Exception 4).

9 See list of exemptions on Bay Area Reach Codes.

Cost-effectiveness Analysis: Nonresidential New Construction 42 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Table 16. Reach Code Pathway Considerations
Prototype Compliance and Cost-Effectiveness Results Summary Energy Efficiency Electric- Preferred All-Electric All-Electric +
Efficiency
Medium
Office
The Team could not identify any all-electric package that complies with all three compliance metrics, with the Efficiency TDV Compliance margin being the most challenging.

Future iterations of this study will re-evaluate the Medium Office with a central heat pump boiler, an anticipated compliance software capability in early 2023, instead of electric resistance VAVs.

To Be Determined.

Modeling constraints
impacted achievable
compliance margins
for all-electric
packages.

All CZs. Exempt building
systems without a
prescriptive
pathway in the
energy code.

To Be Determined.

Modeling constraints
impacted achievable
compliance margins
for all-electric
packages
Medium
Retail
The Team identified cost-effective and code compliant packages of all-electric + energy efficiency measures across most CZs.

Mixed-fuel + efficiency was cost-effective but not code compliant in most CZs.

CZs 7 and 9. CZs 7 and 9. CZs 2-15. 2022
T24 prescriptive
baseline
CZs 1-10, 12-14.

Quick-
Service
Restaurant
The Mixed-fuel + efficiency package is cost-effective and compliant in many climate zones. Code compliance and cost-effectiveness results support reach code adoption for all-electric space conditioning and service water heating when adding efficiency and solar PV for CZs 1 and 3-5, many others are likely to be compliant with future modeling input updates. Cost-effectiveness is achieved or nearly achieved (Net Present Value is greater than -$350/month) On-Bill in all CZs.

Cooking electrification does not impact code compliance but is not cost-effective against a mixed-fuel baseline except for CPAU territory.

CZs 1, 3-7. CZs 1-7, 13. CZs 1, 3-7. Exempt
commercial kitchen
appliances, except
CZ4 (CPAU).

Nearly all remaining
CZs have a nearly
cost-effective
and/or nearly
compliant pathway
for HVAC and SHW
only.

CZs 1, 3-5.

Small Hotel
Results support Electric-Preferred reach code for all CZs. The all- electric packages are near compliant and TDV cost-effective for most CZs when including energy efficiency measures and additional solar PV. They are likely to be compliant with future modeling iterations.

Future iterations of this study will re-evaluate the nonresidential areas of the hotel with a central heat pump boiler, as mentioned for the Medium Office, which can potentially improve code compliance.

To Be Determined.

Modeling constraints
impacted achievable
compliance margins
for all-electric
packages.

All CZs. Exempt building
systems without a
prescriptive
pathway in the
energy code.

To Be Determined.

Modeling constraints
impacted achievable
compliance margins
for all-electric
packages.

Cost-effectiveness Analysis: Nonresidential New Construction 43 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

The combined result of cost-effectiveness and code compliance across all climate zones and packages are detailed in Section 0 through 5.4 below. The tables are formatted to show:
 Cost-effectiveness results with color highlight:
• Green highlight — for scenarios that are cost-effective on both On-Bill and TDV metrics, may or may not be compliant.
• Yellow highlight — for scenarios that are cost-effective on either one of the On-Bill/TDV metrics, may or may not be compliant.
• Gray highlight — for scenarios that are not cost-effective on either metric, either compliant currently or likely to be compliant in future.
• W hite highlight — for scenarios that are not cost-effective on either metric and are not compliant.  Compliance results with cell values:
• “EffTDV Margin” percentages — for scenarios that are compliant, across both Manual and CBECC software output, the reported value is the minimum of the two. • “-” for scenarios that do not comply across any one code compliance metric. “TBD” – for scenarios that are likely to be compliant with modeling updates or software versions in future, maybe compliant across either one of the Manual or CBECC software output approach or has a system type modeling limitation such as central heat pump boiler for Medium Office and Small Hotel. The package names in table results columns are as follows, as defined in Section 3.3:
 Mixed fuel — Code Min: Mixed Fuel Code Minimum Efficiency  Mixed fuel — EE: Mixed Fuel + Efficiency Measures
 All-electric — Code Min: All-electric Code Minimum Efficiency  All-electric — EE: All-electric Energy Efficiency
 All-electric — EE + LF: All-electric Energy Efficiency and Load Flexibility  All-electric — EE + PV: All-electric Energy Efficiency and Solar PV The QSR has two electrification scenarios, with and without cooking appliance electrification, which is denoted by “HS” prefix.

The Small Hotel has an extra package that evaluates a different HVAC type in the all -electric Code Minimum Efficiency package, a Packaged Terminal Heat Pump (PTHP) instead of a Single Zone Heat Pump.

Cost-effectiveness Analysis: Nonresidential New Construction 44 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

5.1 Medium Office
For Medium Office, the Reach Code Team analyzed EE measures over mixed fuel baseline model and three electrification packages: 1) Code Min, 2) EE and 3) EE + LF packages, results shown in Table 17.

The most likely all-electric replacement for a central gas boiler serving a VAV reheat system would be a central heat pump boiler; however, this system cannot be modeled in CBECC at the time of the writing of this report. As such, the Reach Code Team is treating this analysis as temporary until a compliance pathway is established for a central heat pump boiler in the Energy Code and results can be updated accordingly. This modeling capability is anticipated in early 2023 according to discussions with the CBECC software development team, and the cost -effectiveness analysis should become available in the first half of 2023. Heat pump systems are multiple times more efficient, but may also be multiple times more costly, than the electric resistance reheat systems currently analyzed.  Results support reach code adoption for energy efficiency measures over mixed fuel baseline, also known as the “Electric-Preferred”. A compliance margin of 4–5% is achievable depending on the climate zone.  No all-electric package complies with all three-compliance metrics, with the efficiency compliance TDV margin being the most challenging. The Reach Code Team explored other efficiency measures that reduce the efficiency compliance TDV margin, but not enough to make the TDV margin positive. The compliance values are labeled as “TBD” for all-electric packages, as they are likely to be compliant with future modeling and/or software updates. Some climate zones are compliant currently on either one of the Software output or Manual compliance approaches.

Table 17. Cost-effectiveness and Compliance Summary – Medium Office CZ Utility
Mixed
Fuel All-electric
EE Code Min EE EE + LF
cz01 PG&E 4% TBD TBD TBD
cz02 PG&E 5% TBD TBD TBD
cz03 PG&E 5% TBD TBD TBD
cz04 PG&E 4% TBD TBD TBD
cz04-2 CPAU 4% TBD TBD TBD
cz05 PG&E 5% TBD TBD TBD
cz05-2 SCG 5% TBD TBD TBD
cz06 SCE 6% TBD TBD TBD
cz07 SDG&E 7% TBD TBD TBD
cz08 SCE 6% TBD TBD TBD
cz09 SCE 4% TBD TBD TBD
cz10 SDG&E 4% TBD TBD TBD
cz10-2 SCE 4% TBD TBD TBD
cz11 PG&E 3% TBD TBD TBD
cz12 PG&E 4% TBD TBD TBD
cz12-2 SMUD 4% TBD TBD TBD
cz13 PG&E 4% TBD TBD TBD
cz14 SDG&E 4% TBD TBD TBD
cz14-2 SCE 4% TBD TBD TBD
cz15 SCE 3% TBD TBD TBD
cz16 PG&E 4% TBD TBD TBD

Cost-effectiveness Analysis: Nonresidential New Construction 45 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

* These results will be re-evaluated with central heat pump boiler system instead of electric resistance VAV systems, which largely are unable to achieve energy code compliance.

KEY
Cell Color
Cost effective on both TDV/On-Bill metrics
Cost effective on either TDV/On-Bill metrics
Compliant, not cost effective
Not compliant nor cost effective
Cell Value
X% EffTDV Compliance Margin percentages (Lowest common) Compliant on both Manual and Software output approaches TBD Likely to comply with future modeling updates or software versions, maybe compliant on either Manual or Software output approach presently - Not compliant on either approach

5.2 Medium Retail
For Medium Retail, the Team analyzed EE measure package over an all-electric baseline model and two mixed fuel packages — Code Min and EE, with results in Table 18.  Results support reach code adoption for energy efficiency measures over mixed fuel code minimum package, also known as “Electric-Preferred” or “Energy Efficiency” reach code pathways in climate zones 7 and 9.  Results also support “All-Electric + Efficiency” reach code option, with compliance margins of 4-14% above the all-electric code minimum baseline in climate zones 1-10 and 12-14.  For some scenarios in climate zone 6, 8, 11, 15 and 16, labeled as “TBD”, the package is cost-effective and likely to be compliant in future with modeling input and/or software version updates.

Cost-effectiveness Analysis: Nonresidential New Construction 46 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Table 18. Cost-effectiveness and Compliance Summary – Medium Retail CZ Utility Mixed Fuel All-
electric
Code Min EE EE
cz01 PG&E - - 6%
cz02 PG&E - - 4%
cz03 PG&E - - 12%
cz04 PG&E - - 11%
cz04-2 CPAU - - 11%
cz05 PG&E - - 12%
cz05-2 SCG - - 12%
cz06 SCE - TBD 9%
cz07 SDG&E - 12% 14%
cz08 SCE - TBD 8%
cz09 SCE - 11% 12%
cz10 SDG&E - - 3%
cz10-2 SCE - - 3%
cz11 PG&E - - TBD
cz12 PG&E - - 10%
cz12-2 SMUD - - 10%
cz13 PG&E - - 4%
cz14 SDG&E - - 7%
cz14-2 SCE - - 7%
cz15 SCE - - TBD
cz16 PG&E - - TBD

Cost-effectiveness Analysis: Nonresidential New Construction 47 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

5.3 Quick-Service Restaurant (QSR)
The Team analyzed efficiency measures over a mixed fuel baseline and electrification packages, with and without cooking appliance electrification. For the “HS” scenario including HVAC and SHW electrification only, packages with EE, EE + LF and EE + PV were analyzed, with results in Table 19.  Results support reach code adoption for energy efficiency measures over a mixed fuel baseline, also known as “Electric-Preferred” in climate zones 1 to 7 and 13, or “Energy Efficiency” in CZs 1 and 3 to 7.  All-electric “HS” HVAC and SHW electrification can be adopted in CZs 1 and 3-7 since it is code compliant and nearly cost effective on at least one metric when energy efficiency measures and/or load flexibility or solar PV measure is added, demonstrated by yellow or gray cells.  All-electric “HS” HVAC and SHW option with additional efficiency measures can be adopted in CZs 1 and 3-5.

Adding solar PV makes the package on-bill cost-effective on at least one metric marked as yellow cells..  Packages labeled as “TBD” may or may not be cost-effective but are likely to be compliant in the future with modeling input and/or software updates.

Table 19. Cost-effectiveness and Compliance Summary – Quick-Service Restaurant (without cooking electrification)
CZ Utility Mixed Fuel All-electric "HS" (HVAC+SHW)
EE Code Min EE EE + LF EE + PV
cz01 PG&E 16% - 6% 16% 6%
cz02 PG&E 6% - TBD TBD TBD
cz03 PG&E 18% - 8% 13% 8%
cz04 PG&E 16% - 5% 8% 5%
cz04-2 CPAU 16% - 5% 8% 5%
cz05 PG&E 18% - 8% 15% 8%
cz05-2 SCG 18% - 8% 15% 8%
cz06 SCE 16% - 3% 6% 3%
cz07 SDG&E 21% - 9% 13% 9%
cz08 SCE TBD - - - -
cz09 SCE TBD - TBD TBD TBD
cz10 SDG&E TBD - - - -
cz10-2 SCE TBD - - - -
cz11 PG&E TBD - TBD TBD TBD
cz12 PG&E TBD - TBD TBD TBD
cz12-2 SMUD TBD - TBD TBD TBD
cz13 PG&E 7% - TBD TBD TBD
cz14 SDG&E TBD - TBD TBD TBD
cz14-2 SCE TBD - TBD TBD TBD
cz15 SCE TBD - TBD TBD TBD
cz16 PG&E TBD - - TBD -

Cost-effectiveness Analysis: Nonresidential New Construction 48 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

The Reach Code Team analyzed a completely all-electric package including cooking appliances, results shown in Table 20, which show compliance in many climate zones with added efficiency and load flexibility. Remaining CZs are “TBD”, except climate zone 16, which comply on either one of the Manual or Software output approaches currently and are likely to show compliance with future modeling updates. However, the all-electric package is cost- effective in CZ4 CPAU territory only and very close to being cost-effective in SMUD territory. Cooking electrification is expensive and challenging to show cost-effective.

Cost-effectiveness Analysis: Nonresidential New Construction 49 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Table 20. Cost-effectiveness and Compliance Summary – Quick-Service Restaurant (with cooking electrification)
CZ Utility All-electric
Code Min EE EE + LF
cz01 PG&E - 6% 15%
cz02 PG&E - TBD 2%
cz03 PG&E - 10% 14%
cz04 PG&E - 8% 10%
cz04-2 CPAU - 8% 10%
cz05 PG&E - 10% 17%
cz05-2 SCG - 10% 17%
cz06 SCE - 6% 10%
cz07 SDG&E - 11% 14%
cz08 SCE - TBD TBD
cz09 SCE - TBD TBD
cz10 SDG&E - TBD TBD
cz10-2 SCE - TBD TBD
cz11 PG&E - TBD 0%
cz12 PG&E - TBD TBD
cz12-2 SMUD - TBD TBD
cz13 PG&E - TBD TBD
cz14 SDG&E - TBD TBD
cz14-2 SCE - TBD TBD
cz15 SCE - TBD 2%
cz16 PG&E - - -

Cost-effectiveness Analysis: Nonresidential New Construction 50 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

5.4 Small Hotel
The Team analyzed EE package over mixed fuel baseline and three electrification packages - Code Min, EE, EE+PV, with results in Table 21.
 Results support reach code adoption for energy efficiency measures over mixed fuel baseline, also known as “Electric-Preferred” reach code pathway with 2-5% compliance margin.  All-electric packages with efficiency measures and/or solar PV in most CZs are cost-effective and likely to be compliant in future with modeling and/or software version updates. Some climate zones are compliant currently across either one of the Manual or Software output approaches.  All all-electric scenarios are labeled as “TBD” because 36% of conditioned floor area is nonresidential space and has the same system type limitation as Medium Office (see Section 5.1). Hence, the Small Hotel will be re- evaluated as well with a central heat pump boiler system instead of electric resistance VAV system in early 2023. The current results show compliance on either one of the Manual or Software output approaches in some climate zones with efficiency measures and solar PV, still labeled as “TBD” until the software inconsistencies are resolved.

Table 21. Cost-effectiveness and Compliance Summary – Small Hotel.

CZ Utility
Mixed
Fuel All-electric
EE Code Min EE EE + PV
cz01 PG&E 5% TBD TBD TBD
cz02 PG&E 4% TBD TBD TBD
cz03 PG&E 5% TBD TBD TBD
cz04 PG&E 5% TBD TBD TBD
cz04-2 CPAU 5% TBD TBD TBD
cz05 PG&E 5% TBD TBD TBD
cz05-2 SCG 5% TBD TBD TBD
cz06 SCE 5% TBD TBD TBD
cz07 SDG&E 4% TBD TBD TBD
cz08 SCE 5% TBD TBD TBD
cz09 SCE 5% TBD TBD TBD
cz10 SDG&E 5% TBD TBD TBD
cz10-2 SCE 5% TBD TBD TBD
cz11 PG&E 3% TBD TBD TBD
cz12 PG&E 4% TBD TBD TBD
cz12-2 SMUD 4% TBD TBD TBD
cz13 PG&E 3% TBD TBD TBD
cz14 SDG&E 4% TBD TBD TBD
cz14-2 SCE 4% TBD TBD TBD
cz15 SCE 5% TBD TBD TBD
cz16 PG&E 2% TBD TBD TBD

KEY
Cell Color
Cost effective on both TDV/On-Bill metrics
Cost effective on either TDV/On-Bill metrics
Compliant, not cost effective
Cost-effectiveness Analysis: Nonresidential New Construction 51 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Not compliant nor cost effective
Cell Value
X% EffTDV Compliance Margin percentages (Lowest common) Compliant on both Manual and Software output approaches TBD Likely to comply with future modeling updates or software versions, maybe compliant on either Manual or Software output approach presently - Not compliant on either approach

The Team analyzed an additional scenario that proposes PTHP compared to the same SZAC mixed fuel baseline model, results shown in Table 22. Though PTHP is a much cheaper alternative than SZHP, it is not compliant by itself.

Table 22. Cost-effectiveness and Compliance Summary – Small Hotel (PTHP) CZ Utility
All-electric
Code Min
(PTHP)
cz01 PG&E -
cz02 PG&E -
cz03 PG&E -
cz04 PG&E -
cz04-2 CPAU -
cz05 PG&E -
cz05-2 SCG -
cz06 SCE -
cz07 SDG&E TBD
cz08 SCE TBD
cz09 SCE TBD
cz10 SDG&E -
cz10-2 SCE -
cz11 PG&E -
cz12 PG&E -
cz12-2 SMUD -
cz13 PG&E -
cz14 SDG&E -
cz14-2 SCE -
cz15 SCE -
cz16 PG&E -

KEY
Cell Color
Cost effective on both TDV/On-Bill metrics
Cost effective on either TDV/On-Bill metrics
Compliant, not cost effective
Not compliant nor cost effective
Cell Value
X% EffTDV Compliance Margin percentages (Lowest common) Compliant on both Manual and Software output approaches Cost-effectiveness Analysis: Nonresidential New Construction 52 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

TBD Likely to comply with future modelling updates or software versions, maybe compliant on either Manual or Software output approach presently - Not compliant on either approach

Cost-effectiveness Analysis: Nonresidential New Construction 53 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

6 Conclusions
The Reach Code Team developed a variety of packages involving fuel substitution, energy efficiency, load flexibility, and solar PV, simulated them in building modeling software, and gathered costs to determine the c ost-effectiveness of multiple scenarios. The 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, fuel costs, other costs, energy escalation rates, software or utility tariffs may change the results.

These results, including the attached Reach Code Results Workbook, indicate all-electric packages are capable of achieving the greatest GHG savings as compared to mixed-fuel buildings, see Appendix 8.5. Jurisdictions may adopt a variety of reach codes such as “Energy Efficiency”, “Electric-Preferred”, “All-Electric” or “All-Electric + Efficiency.” In summary:
 The Reach Code Team has identified a cost-effective and code compliant energy efficiency measure package for most prototypes and climate zones analyzed, which supports an “Electric-Preferred” and/or “Energy Efficiency” reach code pathways for jurisdictions.
 “All-Electric” reach codes are feasible for all building types and climate zones when Part 11 is modified, including some exceptions.
• All-electric HVAC consisting of packaged single zone systems, including rooftop units in the Medium Retail and Quick-Service Restaurant, and single zone heat pumps in the Small Hotel guest rooms, are widely shown to be cost-effective and energy code compliant, with exceptions in CZs 1 and 16. • All-electric SHW systems have a prescriptive pathway for all building types and have not been shown to be an impediment to cost-effectiveness or energy code compliance of all-electric packages in this study.
• All-electric laundry in the Small Hotel can be cost-effective with added energy efficiency and additional solar PV than required prescriptively by 2022 Title 24 code. • Medium Office all-electric packages are cost-effective with energy efficiency and load flexibility measures, but not code compliant due to the use of electric resistance VAV reheat systems. The Small Hotel faces a similar issue for its smaller nonresidential area HVAC systems in some climate zones.

This indicates that further efficiency measures would need to be added to achieve energy code compliance which may not be cost-effective. As described in Sections 5.1 and 5.4, modeling limitations impacted the code compliance results for the medium office and nonresidential portion of the small hotel. These prototypes will be re-evaluated using a more appropriate central heat pump boiler HVAC system, likely available in compliance software in early 2023. In the meantime, jurisdictions can choose to exempt building systems that do not have a prescriptive compliance pathway in the energy code. See Berkeley’s all-electric ordinance (Berkeley 2019) section 12.80.040.A Exception 1 for an example.
 Commercial kitchen electrification is challenging to design cost-effectively currently. These results align with a previous study focusing on restaurants (Statewide IOU Team 2022). Jurisdictions may choose to exempt cooking appliances until cost-effectiveness factors improve. See Menlo Park's ordinance (Menlo Park 2019) 100.0(e)2.A Exception 4 for an example.
 For the Medium Retail prototype in CZs 2 to 15, there is already a prescriptive pathway to comply with packaged single zone heat pumps in smaller (<240 kBtuh) thermal zones. This study supports an “All-Electric + Efficiency” reach code pathway for many climates. However, mixed-fuel scenarios with SZAC and gas furnaces for larger (>240 kBtuh) thermal zones are challenging to show cost-effectiveness and/or code compliance, except for climate zones 7 and 9, when including efficiency measures.

Cost-effectiveness Analysis: Nonresidential New Construction 54 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Further discussion is required at the jurisdiction and community members to review results and determine appropriate reach code pathways. Please refer to the limitations of this study, described in Section 2.5, while using them to inform reach code policies. Of note:
 The Team employed several CBECC ruleset modifications to support achieving cost-effective packages, especially load flexibility measures. Ruleset modifications cannot be used by the building industry for code compliance without supporting justification or alternate methods. Where jurisdictions want to encourage the adoption of Load Flexibility measures through modeling estimates, the Reach Code Team can support cities and building applicants by providing modeling approximations that may achieve similar energy and compliance total impacts, in coordination with the Energy Commission. For example, for the Demand Response Lighting measure, the Team may be able to share a TDV/ft
2 impact of the measure in that climate zone or provide guidance to the building applicant’s energy consultant on appropriate modeling and documentation.  Results are predominantly based on the code compliance metrics that are manually calculated based on the mixed fuel baseline model and not the standard design model assumed by the current software version. The Team also provided software reported compliance metrics in the workbook for reference. The Team is in communication with software development team to resolve differences in future iterations of this study and the software and improve code compliance reporting.

Even considering the limitations, this study has identified a set of reach code pathways for all climate zones, and jurisdictions have broad discretion on how to interpret the study’s findings. Jurisdictions can adopt reach codes requiring energy efficiency via a Title 24 Part 6 local amendment, or electrification via a Title 24 Part 11 (or municipal code) amendment, or both. Jurisdictions may choose to except particular building systems from certain reach codes pathways.

Cost-effectiveness Analysis: Nonresidential New Construction 55 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

7 References
Berkeley. 2019. Local Energy Codes.
https://localenergycodes.com/download/398/local_government_adoption_ordinance/fieldList/Berkeley%20 2019%20All-Electric%20-%20Ordinance%207672.pdf.

California Building Energy Code Compliance. 2022. CBECC Title-24 Compliance Software. August 2. https://bees.noresco.com/software2022.html.

California Public Utilites Commission. 2022. "Workpaper and Disposition Archive." SWAP005. June 9. http://deeresources.net/workpapers.

California Technical Forum. 2022. THE CA ELECTRONIC TECHNICAL REFERENCE MANUAL (ETRM). June 9. http://www.caltf.org/etrm-overview.

E3. 2021. https://efiling.energy.ca.gov/GetDocument.aspx?tn=233260&DocumentContentId=65748 .

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. 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. 2019a. "Residential Building Electrification in California." April. Accessed 8 2, 2022. https://www.ethree.com/wp-
content/uploads/2019/04/E3_Residential_Building_Electrification_in_California_April_2019.pdf.

Energy and Environmental Economics, Inc. 2017. "2019 Update to the Title 24 Part 6 Building Energy Efficiency Standards: Rooftop Solar PV System." September. Accessed 8 2, 2022. file:///C:/Users/mflores/Downloads/TN221366_20171002T104342_Rooftop_Solar_PV_Stystem_Report%20( 1).pdf.

Lawrence Berkeley National Lab. 2020. Proving the Business Case for Building Analytics. October. http://smart- energy-analytics.org/assets/EMIS%20Report.pdf.

Menlo Park. 2019. Local Energy Codes.
https://localenergycodes.com/download/353/local_government_adoption_ordinance/fieldList/Menlo%20Pa rk%202019%20-%20Ordinance%201057.pdf.

Milpitas. 2019. Local Energy Codes.
https://localenergycodes.com/download/356/local_government_adoption_ordinance/fieldList/Milpitas%20L ocal%20Ordinance%20NO%2065%20148.pdf.

National Renewable Energy Laboratory. 2016. "U.S. Solar Photovoltaic System Cost Benchmark: Q1 2016." NREL.gov.

September. Accessed 8 2, 2022. https://www.nrel.gov/docs/fy16osti/66532.pdf.

Navigant Consulting. 2018. "California LED Pricing Analysis." January. https://www.calmac.org/publications/LED_Pricing_Analysis_Report_-_Revised_1.19.2018_Final.pdf.

NORESCO. 2020. "Time Dependent Valuation of Energy for Developing Building Efficiency Standards." https://efiling.energy.ca.gov/GetDocument.aspx?tn=233257&DocumentContentId=65743 .

San Diego Gas and Electric Company. 2012. "Commercial Kitchen Demand Ventilation Controls-Electric." June 15. https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fwww.sdge.com%2Fsites%2Fdefault%2F files%2FWPSDGENRCC0019%252520Rev%2525200%252520Demand%252520Ventilation%252520Controls_0. doc&wdOrigin=BROWSELINK.

Statewide CASE Team. 2020. August. https://title24stakeholders.com/wp-content/uploads/2020/08/NR-Grid- Integration_Final-CASE-Report_Statewide-CASE-Team.pdf.

Cost-effectiveness Analysis: Nonresidential New Construction 56 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

—. 2011 C. "Fan Control and Integrated Economizers." September. https://title24stakeholders.com/wp- content/uploads/2020/01/2013_CASE-Report_Fan-Control-and-Integrated-Economizers.pdf. —. 2020 A. Multifamily Domestic Hot Water. September. https://title24stakeholders.com/wp- content/uploads/2020/09/2022_T24_Final-CASE-Report-MF-DHW-Dist.pdf. —. 2020 B. "Nonresidential High Performance Envelope." October. https://title24stakeholders.com/wp- content/uploads/2020/10/2020-T24-NR-HP-Envelope-Final-CASE-Report.pdf. —. 2021 D. "Nonresidential Indoor Lighting March." March. https://title24stakeholders.com/wp- content/uploads/2021/03/2022-T24-Indoor-Lighting_Final-CASE-Report_Statewid-CASE-Team_w- Addendum.pdf.

Statewide IOU Team. 2022. "2019 Restaurants Reach Code Cost-Effectiveness Analysis." 2 18. file:///C:/Users/mflores/Downloads/2019%20Restaurants%20Cost-eff%20Report%20(10).pdf.

TRC, P2S Engineers, and Western Allied Mechanical. 2022. "2019 Reach Code Cost-Effectiveness Analysis." February

22. https://localenergycodes.com/download/968/file_path/fieldList/2019%20Restaurants%20Cost- eff%20Report.pdf.

U.S. Department of Energy . 2021. "A National Roadmap for Grid-Interactive Efficient Buildings." May 17. https://gebroadmap.lbl.gov/A%20National%20Roadmap%20for%20GEBs%20-%20Final.pdf.

U.S. Department of Energy. 2019 B. U.S. Department of Energy. December. https://www.energy.gov/sites/default/files/2020/02/f72/2019_ssl-energy-savings-forecast.pdf. —. 2022 A. Prototype Building Models. June 9. https://www.energycodes.gov/prototype-building-models.

WELL. 2022. wellcertified.com. June 9. Accessed June 8, 2022. wellcertified.com.

Cost-effectiveness Analysis: Nonresidential New Construction 57 Energy Code Compliance Results and Reach Code Considerations California Energy Codes & Standards | A statewide utility program 2023-03-24 8 Appendices

8.1 Map of California CZs
Climate Zone geographical boundaries are depicted in Figure 5 below. An interactive GIS location based map and zip- code based search directory is available at: Climate Zone tool, maps, and information supporting the California Energy Code
Figure 5. Map of California CZs
Building Climate Zones
California, 2017
50 cJ Building Climate Zones
LJ County Boundary
Source: Cahfomla Energy Commission
100 200
Mtles
Cost-effectiveness Analysis: Nonresidential New Construction 58 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

8.2 Utility Rate Schedules
The Reach Codes Team used the IOU and POU rates depicted in to determine the On- Bill savings for each prototype.

Table 23. Utility Tariffs Analyzed Based on CZ – Detailed View Electric Rate (Time of Use) Gas Rate
CZs Utility Medium
Office
Medium
Retail QSR Small Hotel All Prototypes
CZ01 PG&E B-10 B-1 B-1 B-1 or B-10 G-NR1
CZ02 PG&E B-10 B-1 or B-10 B-1 or B-10 B-1 or B-10 G-NR1 CZ03 PG&E B-10 B-1 B-1 B-1 or B-10 G-NR1
CZ04 PG&E B-10 B-1 or B-10 B-1 or B-10 B-1 or B-10 G-NR1 CZ04-2 CPAU E-2 E-2 E-2 E-2 G-2
CZ05 PG&E B-10 B-1 B-1 B-1 or B-10 G-NR1
CZ05-2 SCG B-10 B-1 B-1 B-1 or B-10 G-10 (GN-10)
CZ06 SCE TOU-GS-2 TOU-GS-2 TOU-GS-2 TOU-GS-2 G-10 (GN-10) CZ07 SDG&E
AL-
TOU+EECC
(AL-TOU)
AL-TOU+EECC
(AL-TOU)
AL-
TOU+EECC
(AL-TOU)
AL-TOU+EECC
(AL-TOU) GN-3
CZ08 SCE TOU-GS-2 TOU-GS-2 TOU-GS-2 TOU-GS-2 G-10 (GN-10) CZ09 SCE TOU-GS-2 TOU-GS-2 TOU-GS-2 TOU-GS-2 G-10 (GN-10) CZ10 SDG&E
AL-
TOU+EECC
(AL-TOU)
AL-TOU+EECC
(AL-TOU)
AL-
TOU+EECC
(AL-TOU)
AL-TOU+EECC
(AL-TOU) G-10 (GN-10)
CZ10-2 SCE TOU-GS-2 TOU-GS-2 TOU-GS-2 TOU-GS-2 GN-3
CZ11 PG&E B-10 B-10 B-1 or B-10 B-10 G-NR1
CZ12 PG&E B-10 B-1 or B-10 B-1 or B-10 B-10 G-NR1
CZ12-2 SMUD CITS-1
(CI-TOD 1)
CITS-1
(CI-TOD 1)
CITS-1
(CI-TOD 1) CITS-1 G-NR1
CZ13 PG&E B-10 B-10 B-1 or B-10 B-10 G-NR1
CZ14 SDG&E
AL-
TOU+EECC
(AL-TOU)
AL-TOU+EECC
(AL-TOU)
AL-
TOU+EECC
(AL-TOU)
AL-TOU+EECC
(AL-TOU) G-10 (GN-10)
CZ14-2 SCE TOU-GS-2 TOU-GS-2 TOU-GS-2 TOU-GS-2 or TOU- GS-3 GN-3
CZ15 SCE TOU-GS-2 TOU-GS-2 TOU-GS-2 TOU-GS-2 G-10 (GN-10) CZ16 PG&E B-10 B-1 or B-10 B-1 or B-10 B-1 or B-10 G-NR1

Cost-effectiveness Analysis: Nonresidential New Construction 59 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

8.2.1 PG&E
Figure 6. PG&E Electric Schedule - B-1

Pacific Gas and
Electric Company~ CiiJ'ncelling
Revised
Revise<!
Clill. P. U.C. Sheet No.

Clill. P.U.C. Sheet No.
53377-E
526 8-E
U 39 s~m Francisco, Ciil'lifomiiil'
RATES:

Adllfce
D-ecisfo.n
E IECTIRl:C SCHEDULE B-1

SMALL GENERAL SERVICE
Sheet 3
Total !bundled ser.•ice charges are ca'lculated using the tota'I rates shown below. Direct Access (DA) and Community Choice Aggregation (CCA) charges shall be calculated in accordance wittl the paragraph in llhis rate schedule tiUed Bill1ng.

T,otal Sund ed Tme-of-Use Rates B-1 Rates B1-ST Rates
Total Customer Chafge Rates
Oustomer Charge Single-phase
($ per meter per day)
Oustome;r Charge Poly-phase
($ per meter per day)
Demand Charge (forB1-ST only)
Total Demand Rate {per meter,ed kW/month
assessed from 2:00 p.m. to 11,D0 p.m. only)
Summer
w·nter
Total TOU Bnergy Rates,($ per kWh)
Peak Summer
Pa:rt~Peak Summer
Off-Peak Summer
Peak Winter
Pa:rtial-P,ea'k Winter (for B1-ST only)
Off-Peak Winter
Super Off-Peak Winter
PDP Rates (Consecutive Day and Fiv~Hour
Event Option>•
PDP Oha:rges ($ per Wh),
All Usage During IPDP Event
PDP Oredil.s
Energy ($ per kWh)
Peak Summer
Part-Peak Summer
• See PDP Detail, sedion ,91, for oorrespon.dmg
rce,duclion in PDP cred[ts and chial'g;es • • olhe;r
option.(s·) e ecied.
$0.328:54
$0.82136
$0.388:27
$0.331}04
$0.318:24
$0.31285
$0.29a74
$0.28032
$0.60
($0.0!5667)
($0.0168:3)
1(1)
(I)
(I)
(I)
(I)
(I)
$0.3.2B54
$0.8.2136
$4.75
$4.75
$0.4ffi84
$0.30754
$0.260,21
$0.35089
$0.32139
$0.232'34
$0.215g2
(I)
(I)
(I)
(I)
(I)
(I)
(I)
(I)
(I)
,(Continued)
(T)
6603-E-A Issued by
.R.o.ben S .. Kenney
Submitt.ed
Etfeative
Resolution
May 3 , 2022
Jurte 1 2022
Vice Presid·ent, Regulatory Affairs
Cost-effectiveness Analysis: Nonresidential New Construction 60 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Figure 7. PG&E Electric Schedule - B-10

Pacific Gas and
Electric Companf
Revised
Gance/fing Revised
Gal. P:U.C. Sheet No.

Gal. .P'. U. C. Sheet No.
53381i-E
52969-E
U 39 San Fraoci.sco, Galifomia
RAlE:

Advice
Decision
ELECTRilC SCHEDULE B-10 Sheet 3
MEDIUM GENERAL DEMAND-MEl7ERiED SERVICE
Tot bundled service charges sllovm on mstomers' bflls are mbundl.edl accorcfing to the component rates shovm below. Direct Access (OA)i arnd Cornn unity Choice Aggregatol"I (OCA) charges sllall be c culal:oo in accordance Vl,l1(h the parag~pl1 in this rate schedule tilledl ffllingi.
lOTAL BUNDLED TIME-0:F-USE RA TES
Tola! a..istomer Charge Ra es
Customer Charge
($, per me er per da,y)
Tola! Demand Rates@, per kW)
Summer
WinlN
Tola! Enernv Ra·e.s ($ pe;r kW l
Peale Summer·
P ,Peak Summer
Olli.Peak Summer
Peale Win er
Off.Peak nter
Super Off-Peak Win er
PDP Rates (Oonsecutive Day an<! Fi e-1-!C>U~
Event Option
PDP Char,ges {S per kW l
All Usa~ DUiing PDP Event
PDPCrecfils
Eneng;y ($ pe;r kWh!
Pe.ale Summer
P.arl,Peak Summer
• See PDP Delaills. section g. for
co:rrespom:ling reduction • PDP ,credits
and ch.af'Qes if o er option(s) eteciedL
Sevonclary Prima.iy
Vo age Voltage
$6A2D16 (I) $1H2011l (I)
$17.47
$17.47
$0.31411
$0.2524.2
S0.21005
$0.23784
$0.20236
$0.16002
($0.07825)
($0.02710)
(I)
(I)
(I)
(I)
(I)
(I)
(I)
(I)
.$H.19
.$H.19
$0.2.98.23
$0.23993
$0.20900
$0.22538
$0.19'174
$0.15540
$0.00
($0.078-25)
($0.02710)
(I)
(I)
(I)
(I)
(I)
(I)
(I)
(I)
6603-E-A lssuedlly
Rooon s. Kem1ey
Submitted
Effective
Resolution Vice President, Regulatory Artairs
Transmission
Voltage
$6.42(116 (I)
$13.66
$13.66
$0.23025
$0.17351
$0.14344
$0.17720
$0.14436
$0.10802
$0.90
($0.07B:25)
($0.02710)
(I)
(I)
(I)
(I)
(I)
(I)
(I)
(I)
(Continued)
May 31, 2022
June 11, 2022
Cost-effectiveness Analysis: Nonresidential New Construction 61 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Figure 8. PG&E Gas Schedule – G-NR1

Core Commercial Gas Rates
Rates below are effective October 1, 2022, through October 31, 2022.

Small Commercial: Schedule G-NRl (Usage less than 20,800 therms per month)* HIGHES'I AVERAGE DAILY USAGE**
0-5.0
THERMS

5.1-16.0
THERMS

16.1- 41.0 41.1-123.0 123.1 & UP

THERMS THERMS THERMS
Customer Char e (per day) $0.27048 $0.52106 $0.95482 $1.66489 $2.14936

PER THERM

SUMMER WINTER
FIRST4,000 ExCESS FIRST4,000

THERMS THERMS
THERMS
Pro (per therm) $0.87890 $0.87890 $0.87890
Tra e (per therm) $0.93090 $0.58273 $1.09498
ule elf $1.80980 $1.46163 $1.97388
Ca and-Trade Cost Exem tion Credit '1/ $0.10235
Schedule G-PPPS (Public Purpose Program
Surchar e 11 er therm $0.06237 $0.06237 $0.06237
*Excluding months during which usage is less than 200 therms. **Based on customer's highest Average
Daily Usage (ADU) determined from among the
billing periods occurring within the last
twelve months, including current billing period. PG&E calculates the ADU for each billing period by dividing the total usage by
the number of days in the billing period.

EXCESS
THERMS
$0.87890
$0.68545
$1.56435
$0.06237
Cost-effectiveness Analysis: Nonresidential New Construction 62 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

8.2.2 SCE
Figure 9. SCE Electric Schedule – TOU-GS-1

Ja~MIT&ll,\,,t~O:..,a"J'
Soufflem Califomia IEd son
!Rosemead, C ifom·a (LJ 338,£) Cancelling
IR!eviiSed
IR!evised
C - PUC Sheet No.

Cal. PLJC Sheet No.
74535-E
73990-E
RA TES (Continued)
Schedule TOU-GS-1

TIME-OF-USE

GENERAL SERVICE
(Continue<:I)
Smee 5
G.el'ie
Dl:-lltin NS::,~ ,. - T ::; ... C'&\'JEC
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"- C.tln:!iJ
"- liDl'.m
.. Jhe ongoing cooipe: .. on TranslUoo Charcy;e (CTC) of S(ll.DJ □ 15) Vh Is reco--o1ere1:rn Ille UG rorrpx1em ar Gener. ram; - ransrnl66lan and Ille ra=ioo 0-MJEIS .- Cllarge Ad~ems (TOTO which are FERC ~ he OTCA rEpresems ttJe. =~ E11112 ca1-m:c1g Acc:olEI ~us.:mem i;a,,. ,C( □ .~<!11 1) per '1h. R alll Sel'ilce& Bal clng Aooots1t µ61ment (RSE\O.A) of S[IJ,DD □a7) pa '1h. anll li R.Smlil,llln AOOe&i ChaAJ= Bal:mWig Aecoo l Ad~stmmt AClflM) ar W-0 □ 1 e,3 per lW 2 Olfitrtlll • Ol.trt11t.lCln
3 NSGC • lllew sys, Gener. ctJarye
4 NOC • Nwe- Oeo:im SS!bnlrg Charge
5 PPPC - .iaic Pwpoee Pro;ir= Charge c1002s. ca mla AJte -:;, Ra':~ Ei ergy ~remrge •me.e calile.) 6 IA'FC • \I re Fund 14an-6)ilasslti'e Ctwge. Ile \'Ill re F~d or.-B:,pass.allle ChaAJ= QJPPMS tile ca1romIa t re Fllnd II Is not aw ~e to He"llt QJ6trmer,; pul'Sll •o .19" 10-ll66.
7 PUCRF • E UC RelrrtlLMSeJDefl• Fie€ Is dE'Scrlllell Sclle<I e ~-E. 8 0 • Total DEll!,'ety Semce rates. ,- ,- lcallle CD B~l!ell Semce,. D..-ect ~ ! ,anll C'oo:mtJlllty Cllc.ce Aggreg.l".lCln ser. (CCA servlee) QJ6trme~ except DA and ca,,, S-Ervlee ~stamen; are nol QI ect 11> 1he D'IVR6C rate oami!On.e of lllls Sche<!Vle llllt d pay 1he owi;ac as pw, ded ti)' Seheelllle 1\--CRS ,or SdledLCe CCA-ORS. 9 General!'o - Jhe Genera:ian rates, .ap~lcalile o B1m11!1ed S-EN!ce custcmer,;_ See Special Condition be law for PC IA. recovery. 1m OW REC • Oepanmmt of \lial8r R-= (OW } EnEJID' Cred , - Fiar more I :ocma11oo 00 ,:lie \VR Energy Crelf', - :lie Bl D:,j Ca!'clllaUDll Special Don 00 DI lllls Sdled e.
11 OWFt!>, • A rel'Und :ne Calllcmla Oepanmmt ,C( Water i;oorc:es. (OW ) itlng ID Ille purcha:.e of power dll[lng 1he 2 001-'2!!1D1 E!flerg)' cr1ilS.
(Io Ile insertecl by utility),
Advice _4_8"'"'64---'-Ec,._ ____ _
Decision 22-08-001
oeu
(Continu:ed}
lssueclby
Michael Backstrom
Vice Presi:dent
{To Ile inserted! by Gal. PUC)
Date Subn'itted Sep 15, 2022
Eiffeclive Oct1,2022
ResoluliDl'l
ii."".
ii."
ii."
ii.
ii." --
ii."".

Cost-effectiveness Analysis: Nonresidential New Construction 63 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Figure 10. SCE Electric Schedule – TOU-GS-2

.>-.MlllQfll.MT.a.&'Mll'»IILiro1.0:- ... ar
Sornllem Califollil1lia IEcfison
Rosemead, C ifom·ii1l ,(U 338sE)
IR!eviood
Ca11cell'ing Revised
Schedule TOU-GS-2
C _ IPUC Sheet No.

Cal. PUC Sheet No.

Sheet4
74551-IE
74003-E
TIME-OF-USE - GENERAL SERVICE - DEMA D MIEliEIRED
RATES ,(Co11tinlled)
TOU
C..WWCiw!i•·~
~~ R~et..-g,i,- lYNI
OnAnM C!ur;• -:t,Mt~
baa;d~~~--~
DM Al,"alHCwnuclCd'..ilQli
~~ - $,Wi'
~.PNM ~-•l'lio:irlfi
~. Diazua, Du.rd . . cm
'lknp ~ ~C..FM'J:-•UW
l~liitilil.:l!'l-~.11
~.Ii
.....
~IJM-.-llilcl-,Pu.11 ,..,,
Qqtll"-Ol'-,Pu.~
~· bit.ad
l='fM'IJWD-2'~
.it.bica!.oW .blbil!2'lOW
"""'"'
rratnJ~•ui~W
Mii:.6!.DW •t.MM2J'Dk:f,I
~;,. Iiw.flnl, ~w..t'afll,Mp!IW,li. :lliW
C.lkffllca,,..c.u-'~
~liefi...mlM:~~~-s.w.t.

It.nnw,,C ~~~
~~ ~ Cl!id'-~
~~tNc.dt-·•'Wr"
Gurrw(~
R - .•
2 Dl!tltltll - • &'.rtb o
rratnJW1a-~W
.Attica!.oW ,bil,,t,,,p2'lOW
.N'2J'Dk:f,I
·is;s:oo c,
'd'ngl\ccoonl
m.aoon~"l611t.
3 tllSGC -·New.System Ge eratloo Ch.arge
4 clear [)E£001l11llii;IDfitig Chaige
(U.<Wt]j
(U.<Wt]j
(U.<Wt]j
(U.<Wt]j
(U.<Wt]j
(U.<Wt]j
..
om
om
om
om
om
om
""' om
""'
---
,(Continued)
"' ,,. ...... ,_, ~bl:'
'1Jl<~«I ~(Al 000>10 D.!ltlJ'ISl(R'J .,..,., ........ GbiiDt A .....,. ....... «I ~(Al 000>10 twtli'tSi(R"J ~ OJJC>-"<J G.bill!IA .....,. «I -(R] =o <twtlJ'ISl(R'J o..ixa:c- OU--"<J O:::Nll-4A
""""' .... «I ~(Al 000>10 twtlJ'ISl(lfJ ~ ..... _.,. O~A .....,. ..,..,.«I """""'(Rl =o <twtlJ'ISl(R"J WliCi'C' •--"" O::Nlll4A --"""""'«I ~(RI =o twtlJ'ISl(R"J ~l' a.oo-~ aba.aoR .....,. a:rowi,
,,. 111Q ?,(R"J
1IIAIC- ..... ~
..... i .... -J.X,(R"J l.Z(ll1
-~
il-"t~ -0)
!l.>Jt~ ~a) ....
(i' .. UiRi .><Ila)
~ «I JUl..-41'Jfl
p.> !I ~a) -0)
(51~1' •~a) (1"'10)
~>.q«) ia.aJ'Jfl (t"1j(J)
~bl.HJ irwfil'R) !1111
"""'
,_oo !1""1
{J>tl [>-x,[l;J
"""' -OJ
-OJ .,,,..,, OJ
1111).W . ....,. ..,., JI.II
.......
--
i
ii, ft. m-&.
(T RC a~ra,,e,d_ e O CA ,E£.ents
) sen11:es Billilollelng Accolll'! A.d]11&:'.Tte
BM), '.~.Dll189 per kV .
5 PP.?C - I~ PIIIJIO&e Rrograms Chalge (I CIUOO. CillllmUa M.emate Rates l'<lr EnERJ)' Surd1ilnj)2 where e.) 6 Filrlll 00-6~1:(e Ch.arge. TI:le \'Vlldr.te I'll d Noo-B:,p;i~llle Cl1a:rge SA!,ppol15 :l1ie Ci!Jl'Orrfla VII re l'llnd a d Ii mlt .ap~ICiil!le D exernpl C .llfflEIS pifiUJn'I to D.19·1 D,056, 7 PUCRF - he P1JC =€flt l'ee IS ,006Cf!bBl I S~e -E.
8 otal • T [le lei)' Semce ;a; are,, li:a?lle to Bulll!lled S Ice. I red ltrees6 A) and COO"fru Chlllce AgaregaUoo Ser 02· [CCII.

Ser ce) =tomeis, except DA,- II CCII. .Ser Ci!· Clr<&'.JJmErS ari!· ll!K stqect 1D 11le· DWFISC rate COOlpOOEm al mil; Sdledlie· oot t16tead pay tile Ol'IRBC as pro•i11fell by' Sdledlfe DA.-CRS, or Schedule CCA.-CRS. 9 GemeraUoo - !lie· G...aneraUoo ra:a; are• a~ ooiy· tD B dlBl .Ser, ce C11e/lomen;_ See SJieclal C o rc.-POii'!. ll',el)'. 1111 Ol'IREC - DEpartm ,111 V/ater Rero= \'IR) BlEf!n' Crel11- fct" more rrna-.Jcm oo me DWR Emeqgr ere~ see 1lle Bl n;J i:ua'.xm Spec! COO.d 300 ,1111tis Sctlemlle.
11 Ol'!ffiA -· ;;, rel\Zlll Ille ca mla D:JE;J>altmen.l or Water Resoo= (DW ) re1- to the ~n:llase p,:M'er IIIJl!ng Ille 200111-2001 Elg)' ,Cl(s
ff o be inserted! by utility),
Advice 4864-E ------------Decision 22-08-001
(Continued),
Issued by
Michael Backstrom
Vioe Presiden
, o be inserted by Gal. PUC)
Date Su mitted Sep 15,. 2022
Eiffective Oct 11, 2022
Resolution
Cost-effectiveness Analysis: Nonresidential New Construction 64 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Figure 11. SCE Electric Schedule – TOU-GS-3

.>..~~l"»ll.iL.::..paar
Soutflem Califomia Ed son
!Rosemead, C ifomiai {U 338ct)
ReviiS8d
cancelling Revised
Sclil,edule TOU-GS-3
C _ PUC Sheet No_
Gal_ PUC Sheet No_
Shee 3
TIME-OF-USE - GENERAL SERVIOE - DEMAND MElBRED
RA lES {Continued)
, - , - OflD-ol'P
_ _.,.,_ I'd!
:SU.fffilli :&iii:iurt-Ofi.Pli

1.i,W,,oli
O!!'-Pooli
~ra--
O.OOQl5
O.OOQl5
O.OOQl5
o.ooxie Iii
OJ!Qlfle ill
o.ooxie 111

1.i..._oli O.OOQIS OJ!Qlfle ill
-oli O.OOQIS OJ!Qlfle ill
~-Pooli O.OOQl5 OJ!Qlfle ill
CLiiiefflil'Ch.qii•1iMilJt.t.wai
C!w, -IIIWo,IBllloQ
F ... li,_,_d s.es
r;i.....,
&.lll'n'llif ~in-Ott-PiaMI!
'>'""'ii' Ill-.,._ Domood-WN
F<lil,-
Fi'att:1'2WraSO._V 0.00
~ 50 ._V tnl !lab.¥220 ._V CulO.
210lV ll.i!O
-.i l)i ctwfm.lft, !:i rOft lfii.._ ili'id rMIJblf 'Ilia 1- F,... 21111 o, 50 lV 1100
-51l•Vb.a !lol:,;,2:ltl•V 0.00
.. 210,v o.oo
'>'""'ii' llloioo,.,._ Er.rg, - p:--
F-~ ~\lo, 50 lV 0.0!Q!O
-~•Vb.a !lolow2:ltllV 0.0!0!()
... 220,v o.ooo!ll
Cfillllii'llhlfl!Sll V
C ■ ll:a .Mlifflilil RiilM lbr
~r,..,....,,_ ...
ip:pflpn D-C!P1f
CPP EwM Eiw'GYctiiii'C ■ • $,6.1,il
S OPP Ncr,..Enft1 Cr•:!I!
Oft.l'ooli Diffiio~ f>lidl - &!
C.id•--
Ml/a'N!::il:il
s.- .-.,,. ~I
1 4fl
,13Uh
41a2lll(fl
Domood-WN
131
,9:!Wt
-•WI
tllOM-)
10 111
10 10)11)
a,,
a,,eo
iOO.M-'
,(Continued)
D'li &C IPUCRF
IRt 00010 0.01111 R] !1l 0.00 ~
IRt O!llil) O.Q,1111 Rq !1l O.OOl~
IRt ID.OOOiO 0,01111-R] C. !1l ll.OOl~
IRt 1100010 0,01111-11:, !1l
IRt 00010 0,01111-11:1 0. !1l 0.00 ~
1R1 (1!1)10 0,01111-11:1 !1l ll.OOl~
Repre~ ln<ll¾ Ofllle,lllicoom p;!reEOtageas~ nl 1/ie cable~al coo o. or 6 Sdle e.

11.!'I
MO
illO.IXF
(l.S!i
73208r1E
72721-IE

0.Q(ll(I)
ll.Q(ll(I)

0.Q(ll(I)

0.Q(ll(I)
ne oogalng CompeUUoo Tram ~1111 Charge [C q « .~llJ!lllil 15) p;!r tlN recovered ti Ille G Clllllpanem elf Ge erauoo. (Rl Ile, Moielll!ltnl Available CrB1 Ila Ille capped ere<! am.otE!for CPP CI.IS!omen; ml p ClpaUDJ! In olller derrn3!1~ re6panse-p~ ran& - Tran oo and :he ran6111sSfan 0-11,'Cleis = Clwge· ,µ&1rnen\6 il'CA) \ltllcll are FERC a,Wl'CII/Ed. Tile OTCA rey;eseni6 1he r.= o Re.'enlE Ba ·ng /\llCoonl ~em RB.Ii. '~ ~ □ 141) per Wt, R la?ll 1)' Ser cea Balardng /\l:coJnl Al:IJUslment {RSBAA) Of □ .00079) per k_!j\l d ra loo Acee66 Charge e- CIDJI /i.000l1l1I AdJIIS':ID21\l (TAaaM) 01' ~ clilOJ15 p;!r tv, .
2 Dl&'.!lltn • Dl&'.J!b
3 NISGC -· f'II System Ge1terauoo Ctmge
4 NOC - l'IIUdElaf Decanrnlialoollg Ch .ge
5 PP.PC - F1J c LIIJl(l6e ragrams o .ge {lncru«IDJI ca ornla AJtEmate Ra::&~ Bnl!fg)' s □~ 1,111ere a~llcab.12.) 6 DV R6C • Departtinem 01' \'la ,611Urre6 {DV ) Boom . Tile DWR Boo.d Cl13r~ la Ille V flllld Nl~.12 Cll~i! hlcll 1iup,Jl01il61l:te Ca' mla, V I Fi111m and la nlll ap,JMlcabl;! to e:xemjl'l Ou:stomen; pun;mnt 1D D.19,-1 CH)56_ 7 PUCRF • ';! PUC n;sment ee IS ~Ed Slille!IUI;! Rf-E_
8 otal • TClt!il Dell,'EI)' SE!Mee .11$ :e ,apJMlca!ile D Bund:ed Semce, Dlr,Ed: Aeee66 (DA) alld Ollfflll!llmlily' Coolce Aggregalfo SS!,1ce [CCA Ser ce) Cu:stomen;, exeept D.", and CCA. SS!,1ce cui;,'i:l ers are l1Di sulljed ta, me ov,~,u;c rate COlll]OOeflt or 1l1S Setted'!lle lllUI rm;tea pay· 1he il\lRBC as pro, tied II)' Seheelllle A-ORS ,I!(' ~Ile e CCA-CRS. 9 Generauoo - Ile Gen.eraUoo ra:ei;. ar1= a leatce, ooly ta, 611 died Ser ce, C1.1&'i:l en;._ see sir,:ctal coo o ow fN ot'!. o..-el)'. 1 D'IVREC _, D e 01' wa:er Reroirces {D'll'R) E'lnEfQY' Credl - fix 11!1- 1nrom10"Jllll 00 the DVi IE ergy Credl. - 11le B II g CalCl.latloo Spe::ISI Olllldltloo 1111& SctlEdllle..
(To be inserlied by utility}
Advice 4n9-E -----------
Dedsiorn
.le
(Contirnl.JBd}
lssu:edl by
Michael Backstrom
Vioe resldern
{To be insenedl by Gal. PUC}
Date SIUlmffled Feb 115, 2022
Eiffective Mar 11, 2022
Resolution
Cost-effectiveness Analysis: Nonresidential New Construction 65 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

8.2.3 SCG
Figure 12. SCG Gas Schedule – G-10

SOUTHERN CALIFOR.."\"l.A. GAS COl\<IPAl'•J~ Revised :AL. !>.U.C. SHEET, :o. 46445-G AL !>.U.C. SHE.ET KO. 46215-G
43002-G
WS A!"GF!LE-S.. CALIFORNL>\ CA.~CEUKG Re ;ised
APPilCABIIJITY
Schedule No. G-10
OORE OO!v1MERC1AL AND INDUSTRIAL SERVICE
(Jncludes GN-10. GN-!OC and GI-10 Rates)
Sheet 1
Applicable to oore non-residential natural gas sernice, including both procurement service (GN rates) and f4·anq>artation--Only service (GT rates) incrud.ing Core Aggregation Transportation (CAT}. This schedule is a1oo available to resi.dential customa-s with separately metered service to commcm facilities (swimming pools, reneaf:ion rooms saunas, S1'as, etc.) only and otherwise eligible for service t1Il.de£ rntes designated for GM-C, GM-CC, GM-BC, GM-BCC, GT-MC or GT ~-IBC as appropriate, if so elected by the customer. A.loo applicable to service not provided under any other rate schedule.

Pmsuant to D.02-08-065, this schedule is not available to, tfrose eledric generation, refinery and enhanced oil recovery customers that are defined as ineligible for core service in Rule o,. 23.B.

The California Aftemate Rates for Energy (CARE) discount of20%, refilected as a separate line item on the bill, is: applicable to Nonprofit Group Living F acililies and Qualified Agricu]tnral Employee Housing Facilities (migrant fumr.vod::er honsing centers, privately ov.'ll.ed employee housing, and agricultural employee housing operated by nonprofit entities) that meet the requirements for the C_;\RE as set forth in Schedule o .. G-CARE.

TERRITORY
Applicable tbrougb.011t the service territory.

RA.TES
Customer Charge
Per meter per day:

All cust.omet'S except
"Space Heating Only"
"Space Heating Only'' customers:

Beginning Dec. 1 through Mar. 31
Beginning A.pl:. 1 through ov. 30
(TO SE INSERiEID SY UTIUTY)
ADVICE LETIER Q,_ 4l52
DECISION NO. 98-07-068

49.315
L48760
None
(Continued)
ISSU:BD BY
Lee Sd1auieu
Senior Vice Pres ent
Regulatory Affairs
{VO BE INSEIUEID BY CAIL PUC)
DATE ED Sep 30, 2010
EFFECTWE Oct l, 2010
RESOlUTION NO. -------
Cost-effectiveness Analysis: Nonresidential New Construction 66 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

SOUTHER...'-CAI.IFORL'HA GAS COMl'A.!.~-Y Revised CAI.. !'.U.C. SHEET NO. 60204'G CAL. !'.U.C. SHEET NO. 60169~0 LOS A!"<l!ELES. !\l.!FORNEA CA!"CEDJ!\G Revised Scheoole o. G-10

CORE COMMERCIAL AND INDUSTRIAL SERVICE
jJn.dndes GN-10. GN-!OC and GT-lO Rates)
tContinned)
Sheet2
Ri\TES (Continued)
All Procurement, TraDSmissioo, and Commodity Charge are billed per them1.

Tier II11 Tier fill/
GN-10:..., Applicable to nahlral gas procurement service t.o no.n-iesi.dentw oore cnstomer , including service not provided Wlder any other rate ochedule.

Pro=ement Charge: "
Transmission Cbar!!e:
,Commodity Charge:

G~CPNR ...................... 64.959¢
GPf-10 ..................... 106.047¢
GN-10 ·--·····-····-·····--·· 171.006¢

64.959¢

60.635t
125.594¢
64 . .959¢

30.186t

95.145¢
GN-l0C•": Core procm-ement service fOJ" previons non-residenl:iat transporlati.on~nly cnstoruers retnmiug to core procnrement service, including CAT customers with annnal comumption o,ver 50 000 thenns., as .futiher defined m Scheoole o. G~P.

Pro=ement Charge: "
Transmission Cbar!!e:
,Commodity Charge:

G~C'PNRC ----···----··--···· 2 .. 898
GPf-10 ..................... 106.047¢
GN-lOC . _______ ..... 178.945¢

72.898¢

60.635t
133.533¢

72.898¢

30.1861!
103.084¢
GT-1 OU, Applicable to non-tesidentiaJ traDSportatioll-only se1vice including CAT service., as set forth in Special Condition 13.

Transmission Cbarg.e: GT-10 ··--·····-····-·-···--·· 106.047¢11 60.635¢" 30.186 " 11 Tier I rates are appl!icable for the first 250 lbenm used! pe. month. Ti.e. II rates are app]icallle for usage abcne Tier I quantities md up lhrough 4,167 therms per momh. Tie.rm rates are app.ticable for all usage above 4,167 therms per month. Under Ibis sclJ.edul.e, lh.e winter season sh.,ll be defined as Decembe. 1 through Nfarch 3 and fue S1illllmer season as April 1 throlilgh November 30. 11 This dharge is applicable forsen~ce to Utility Procurement Customers as shown in Schedule No. G-CP, in the wanner approved by D.96--00-037, md subj eot to cli.ange monthly, as se forth in Special Condition 5. 31 These charges are equal to ihe core oonunodi.ty mte less lhe follov,ing two components as approved in D.97-04- 082: {1) die weighted average cost of gas; and (2) the core brokerage fee. (Foolnotes continue nei,.1 page.)
Contin·
(TO BE INSERlilBD SY UTILITY)
ADVIC'E LETTER NO. 605l
DECISION NO. 98~7~68

ISSUEIDBY
Dan Sk""<>pee
Sen:ior Vice President
Regulatory Ai!ar.;
fTO BE [NSERTl:D BY CAL PUC)
SLIBMITIED Oct 31, 2022
EPFECTIVE Nov 1, 2022
,er, RESOlUflO~ NO. -------
R.,R,R.

R.,R,R.

Cost-effectiveness Analysis: Nonresidential New Construction 67 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

8.2.4 SDG&E
Figure 13. SDG&E Electric Schedule – AL-TOU

soG~ .,...f
S Di~o Gas & Electric Coonpany
San IDiego, Ca!ifomia
Descrip!ion -AL-TOU Transm
Basic Savice Fees
fmon )
0-500 ~w
Secondary
l'miary
Secondary Substation
l'miary SUbs,talion
Trans sfio:n
>500 W
Seconda,y
l'miary
Seconda,y Sut>sta!ian
l'mary Subs,talion
Transirnis on
> 12 ~w
Secondary Sut>sta!ian
l'miary SUbs,talion
Trans. !.h,tt;o!e Bus
Di5:laa~ ACiu~t E,~
Secondary - OH
Seconda,y - UG
l'mary-OH
l'mary-UG
2C7
Ad,,,ioeltr. No. 3855-E
Decision No,. 21-07-01D
Cal P.U.C. S!heet o.

Canceilir19 RevilSed Cal P.U.C. S!heet o.

SCHEDULE AL-l'OU

GENERAL SERVICE - TIME METERED
Dis!r PPP ND CTC LGC RS TRAC
100.35 I
53T I
111,717.3- I

18.717.35 l
2811.9•1 I
766.9•1 r

63.9- l
18,717 ,35 I
18,717.35 I
1,159•:95 I
31,585,5(1 I
31,644.17 I
3,000.00

1.23 3.17

1.22 3.13
,(Continued)
lssu..d by Su'bmi-ed
Dan Sko;pec Effective
Vioe Pres;ci!,n
Regu!afory Affairs Resolulion 0.
35374-E
31333-E
Sheet 2
UDC Totall
199.35 I

53.75 I
18,717.35 [
18,717.35 [
289.91 [
7,66.91 [

63.95 [
18,717.35 [
18,717.35 [
1,1811.9- [
31,5115.50 I
31,644.17 [
3,000.00

1.23 3.17

1.22 3.13
See3D. 2021
Nov 1. 2021
Cost-effectiveness Analysis: Nonresidential New Construction 68 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

soq(
San Diego Gas & El Ccmp y
San Diego, C omia
RATES* (Continued)
IDescmipfam-.A'L-TOU Transrn
Pma
Secondary Substati
PmaJy Subsration
Trans - sion
IMaxirnvirm On:Peak
Summer
Secondary
Pma-.

Secondary Sub-sta1ion
PmaJy Subsration
Trans • sion
Winier
Secondary
Pma
Secondary Sub-sta1ion
PmaJy Subsra.tion
Trans • sion
Secondary
Pma
Secondary Sub-sta • on
PmaJy Subsration
Trans sion
3G9
AdYioe Lir. o,_ 4004-E

18.63 18 0

18.63 18 D

17..93

3.90 3.77

3.90 3..77
l.75

0.8,2

0.79 0..82
0 .. 79

0.79 22-03-003
Revised Cal P.U.C_ S eet o.

CarwellingI Revised Cal .u.c_ s eet o_
SCHEDllJlllE AL-TOllJI

GENERAL SERVICE - TIME METERED
IDistr
I12.@ll I

12.62 I
D23 I

0.23 I
023 I

23.00 I

23.77 I

0.00 0.00

0.00 27.8.2 I

27.77 0.00

0.00 0.00
o:r
o:r

0.25 025

0.00 It-ID CTC
D.00
D.00

0.52 DZi'

0.52 0.37

0.52 [1,37
, Co ~inued)
ls.sued by
Dan Sllilopec
Vioe Presi~n •
Regu a·ory ··aii:s
ILGC
I
I
I
RS

0.00 OJO0
OJO0
OJOD
OJOD
Submi ·eel
Effective
Resolution o.

TR:AC
36350-E
35768-E
Sheet 3
UDC
Total
311.32

30.62 l'll.75
rn.12
rn.05

27. 27.54
:ill()
l.77

3.T

28.74 28.00
[l_,82
Cl.79
Cl.79
02-
o:r
ctr
or

0.00 May 16. 2022
Jun 1. 2022
Cost-effectiveness Analysis: Nonresidential New Construction 69 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

San Diego Gas & Electric Company
San Diego, C omia
IRA.TES" Continue(!
l)es,eliiption, -A'L- Transm TOU
l"[l;[:IIX !;;llii~5 (lillt'l'lh)
On:eea~ - Su[IIliDe[
Secondary
Pri ry
Secondary Stmsla
Primary Sub-sta1ion
- Reat - Summer
dary
ry
dary Stmsla -
ry Sub-sta1ion
ransmiss:ian
Sgeer ·peat
Secondary (D..01745)
Primary (0..017. -)
Secondary Stmslaticn (0..0174-)
Pri ry Sub-sta1ian (D..01745)
(0..0174-)
On-P,ea -Win~
Secondary
Primary
Secondary Stmsl
Primary Sub-s:ta1ian
ransmis.s:ian
Oni·Be.i~ - !i!liaie[
Secondary
Primary
Secondary Stmsl
Primary Substation
RevilSed Cal _u .C. S!heet D.

Carweli 91 Revised Cal P.U.C. S!heet o.

SCHEDULE AL-T'OU
GE!f'IIERAL SERVICE - TIME METERED
IDisfr PPP ND CTC LGC
.00132 0.0,1Q1711 D.001106 D.00289

0.00132 0.0,1Qi711 D.001106 D.002.89
.OOOM 0.011837 0.00289
.OOOlliS 0.011837 01.00209
.OOOM 0.°'1837 01.00209
.00132 0.0,19,111 D.001106 01.00209
.00132 0.0,1Q1711 0.00,106 o,_002a9
O.OOOlliS 0.011837 0.00289
.OOOlliS 0.011837 01.00209
.00008 0.01837 01.00209
.00132 0..01Qi711 D.001106 01.00209
.00132 0.019'711 0.0°'106 o,_00209
O.OOOlliS o.o,1a31 0.00289

0.00008 0.01837 01.00209
.00008 o. □,1a31 0.00289

0.00132 0.01Qi711 D.@1 □ 6 0.002.89
.00132 o. □,rn111 0.001106 0.00289
.□ 0008 0.011837 01.00209
.OOOM 0.011837 0I.002a9
.00008 o. □,1a31 01.00209
.00132 o. □,rn111 0.00,106 o,_002a9
.00132 o. □,rn111 D.001106 0.00289
.00008 0..011837 01.00209
.OOOM o. □,1a31 01.00209

0.00008 o. □,1031 o,_00209
.00132 o. □,rn111 0.0°'106 01.00209

0.00132 o .. □,rn111 D.001106 01.00289
.00008 0.011837 01.00209
.OOOM o. □,1a31 o,_00209
.00008 0.. □1 1837 01.00289
3£351-E
35769-E
Sheet4
RS TRAC Ul)C
Total

0.007@1!

0.00700

0.00467
.00467

0.00467

0.007@1!

0..007@1!

0.00467

0.000°'1 0.00467

0.00700

0.007@1!

0.00467

0.00467
a,_ 000,1 0.00700
D.000°'1 0.00700
a,_ 000,1 0.00467

0. 000<1 0.00467
D 00°'1 .00467

0.0000<1
D 00°'1 .00700
a,_ 000,1 0.00467

0.0000<1 0..00467
D.000°'1 0.00467
0 000<1 0.00700

0.000°'1 0.00,100
a,_ 000,1 0.00467
D 00°'1 0.00467
D.000°'1 0.00467
No~s: Transmission !Energy charges indulie . Transmission Revenue Balancing Ar:count Adjusllllent RBAA} of ~(O. 130) per tlMi and Transmission Aoces:s: Oharge !Balancing Accou , Adjustment ACBAA) 'S(D.01615) per . The PPP rate is ccmpased o· Ener;gy and Demand <narge:s. Far voltage levels .. lhe PPP Energy char;ges ncludes L,ow lnCOOJ1e PP rate ~I-PPP) So_o 1 □ao.lk.Wh. Noo-low lnCOOJ1e rate (Nan-U-PPP) io.ooOOi)ll!:Wh (pur,uanl to PU Code Section .399.H. Non-LI.PPP rate may n~ exceed JalMlal)' 1, 2000 l~els). Procursem.!11t En..~ 8 - ·ency ~arge Ra.te • $D..004TTll1M'l. ~or Secondary and Prima vcftage levels:, the PPP Bner;gy ,charge also i1c1udes C .mia Sola:r n"tial:Ne rate (CSI} oii ~-0 [J)'ltWh and Self-Generation lncen e Program rate {SGIP) -S D.001 2 I lMi. Fer Secondaly Sub-s:tal" ·mary Substation rans:mission 11nltage vets, the PPP e mud es DEmand charges fer CSI • SO.OD ITtW and SG IP ·-$0,"52 l'kW. "These rates are nal al!1lli to TOU P,eriod Grandfathering1 Eligible Customer Generators, ple--a.se l'efs to SC .W far appica rates.

Continued
I
l
I
I
I
I
I
[
I
I
I
l
I
l
I
I
l
I
I
I
[
I
I
I
I
I
I
I
4C8 Issued by Su mi- ed Ma.:i,: 16. 2022
Act,,,ic:e ltr. o,_ 4004-E Dan Sko;pec Effective un 1. 2022 Vice Presiden
edsion No1• 22-03-003 ~egur.a ory ·-airs Resolulion 0.

Cost-effectiveness Analysis: Nonresidential New Construction 70 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Figure 14. SDG&E Electric Schedule - EECC

soqf
Cal .U.C. Sheet o.

San Diego Gas & Ele<:tric Company
San iego, Ca!ifomia Cancesling1 Revi;s;ed Cal

S,CHEDIULE EECC

ELECTRIC ENERGY COMMODITY COST
Commod[ty Rates (Continued)
Sclu!dule A- TC
S'Ummer
Winter
Sc'hedule OU-t.
5GB
Advi:ce Ltr. o,.
ecision No,.

S1.1mmer
On-!Peak Ener,g[Y
o· Peak Ener,g,[Y
Su per Off-P,e.ak Energy
Winter
On~Peak Ener,gi)f
Oi Peak Ener,gi)f
Super Off-P,eak Energy
Sclu!dule OL-TOU
S'Ummer
On~Peak Ener,g[Y
0 'Peak Ener,gi)f
Su per Off-P,ealk Energy
Winter
On-!Peak Ener,g[Y
O --a.Peak EnerrgiY
Su per Off-Pealk Energy
Sclhecfule A!L-TOU
Maximum On"Peak. Demand: Summer
Secondary
Primary
Secondary S1.1bslation
Primary S1.1bs1ation
lf'.311SlffiL:SSion
Maximum On-Peak. Demand: Win·.er
Secondary
Primary
Secondary Substation
Primary S1.1bs • ·on
TransmLssion
011-P,e.ak E ergy: Su:mme;r
Secondary
Primary
Secondary Substation
Primary S1.1bsiation
Transmission
Off-P,e.ak Energy: Su.mme;r
Secondary
Primary
Secondary Substation
Primary S1.1bslation
Tr·a11sm1ssion
S1.1per o·· Peak Ene:r1w: Summer
Secondary
4004-E
Primary
Secondary Substation
Primary Subs·• on
Tr·a11sm1ssion
22-03-003
Coniinued)
Issued by
Dan S1llm, ec
Vi:ce Presid'.e:n
Regu!a ory. ..airs
($/kWh)

0.00147

0.34164

0.111656

0.00544

0.13581

0.07640
O.D5Q03

0.40931

0.13Q21

0.07661

0.16080

0.00017
O.OOQ66
~

12.18 12.12

12.18 12 .. 12

11.60 ($J1kWh,}

0.17868

0.17782

0.17868

0.17782

0.17021

0.1 D'l23

0.10375

0.1CM23

0.10375
O.D0033
O.D0060
O.D0027

0.00060
O.D0027
O.DQ526
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
IR
R
IR
IR
IR
IR
R
R
R
R
Submr·ed
Effective
Resolu~on o.
36409-E
15858-E
Sheet 5
May 16, 2022
un 1, 2022
Cost-effectiveness Analysis: Nonresidential New Construction 71 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Figure 15. SDG&E Gas Schedule – GN-3

soqf
San Diego Gas & Elec • Company
San IJiego, California
ReYi'See<I Cal P.U.C. Slheet No.

CancelingI ReYi'See<I Cal .U .C. Slheet No.

SCHEDULE GN-3
NA TU RAl GAS SERVICE FOR CO'RE ON-RESIOENTIIAL CUSTOMERS (lnoludes Rates for GN-3. GN-3C. GN-3/GTC and GN-3/GTCA)

APPLICABILITY
18445-G
18058--G
Sheet 1
Appl cable to core nonresidential nat1Ural gas seivice, ·ncw·ng bolh promrement service and transportation only set'Vice including Core Aggrega ·on Transportation (CAT) . .Also, sAPlicable to sewice not provided 'llnder any olher rate sd1edule. This sched1Ule iis no available to elecmc generation customers who generators rated capacity exoeeds me megawatt, refinery customers, and enhanced oil recovery cus omers, wtiose gas 00J'ilsu11 ption ex.ceeds 251),000 tllerrns. per year.

The G
3 ral:e is ~pplicabl'e to nat1Ural gas procurement and trnnsportatio11 servioo to inomesidentiall core cootmneis and to separately metered, comma areai use service to residenli detached homes. This sd1edule is optionally availru>le to customers with separate!¥ metered, oormncm area use sewice to residenti , m1.11ti1-famif!/ acco11 modatims, as defined in Rule 1.

The GN-3C cross-over rate is a core pmcuremen service for previous transportation-only oustomers returning to core procurement sel\lice cus,tmners with annual oonsu pfion over 50.,000 therms, as set footh in Special Condition 8.

The G 3/GTC (GlC) and GN-3/GTCA (GTCA) rates are applicable • o irntrasta e gas transportation-only services as set footh in Speci Conditions '9-'14.

NonrJ}rofil gm~p r in.g fac~ities ta ·ng service under· his schedule may be eligible for a 200/4 row-income rate disc,oun on their biU, if s1Uch raci'lities q,ualif\J to receive service under tile terms and oondilions of Sched1.1le &CA.RE.

Ag ·cultural 1En13loy1ee Housing Facilities, as defined i1r1 Sclledule G-CARE,, may qualify for a 200/4 CARE disc,ount on the lfll if I eligibi ity criteoa set forth in Form 1142-4032 or Form 'l42-4035 is met.

TERRITORY
lMl.ll·n tile entire enilory served nat1Jral gas. by the Utility.

RATES
Customer charo:es, $ per meter per monlh:

GNi--3
$110.00
1Ct1
Advioe Ltr. o,. 1000-0
-ecision Mo,_
(Continue<!)
lssu:ed by
Lee Sohavri.en
Senio:r Vice PTesr.derit
R!egutatory A ·airs
GN-3-C
$10.00
Dae Fir:ed
Effecii.ve
GTCIGTCA.
.10.00
Oci 15, 2010
ov t4. 2mo
Resotu ·on No.

T
NI
T
D
Cost-effectiveness Analysis: Nonresidential New Construction 72 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

S- Di~o Gas & Eledl"ic Company
San Diego, California
Re ·sect Cal .U.C. S!heet o.

Can.ceiling Re ·sect Cal .U.C .. S!heet o.

SiCHEDUII!.£ GNl-3
NA TIJRAL GAS SEIRVlCE IFOR CORE NON-IR • OUSTOMEIRS
{Includes ates for GN-3, GN-3C, GN-3/G -3/GTCA}
IRA TES (oontin1.1ed)
Volumetric c!tiarges, _ per fllem,r:

Promrernent Charge (0 to 1,000}
Transportation Charge
-r:otal Cllarge
Procurement Charge (t,0011 to 211,0D0
Transportation Charge
-r:otal Cllmge
Procurement Charge ~Over 21,000
Transpmratio:rn Charge
"Total Charge
0N-3 0N-3C
$0.65036 $0.717'90
:§0.72856 io.n856
$1.378-92 $1.44646
$0.65036 $0.71790
:§0.48510 t0.48510
$ .13546 $1.20300
$0.65036 $0.71790
:§0.41632 t0.41632
$1.06668 $1.13422
R
R
R
R.

R
26223-G
26210-G
Sheet 2
GTC/GTCA.2
NIA
$0.72858
$0.72858
NIA
$0.48512
$0.48512
NIA
$0.41634
$0.41634
The rates f<lf core transpcrtaiian-on1y customers, with the ,exception 'custcmer:s taklng seivice ..-ider Schedule GT -NGV. include a '!/ IFERC Settleme t Proceeds eroorandum Accouni (FSIPMA) ,er .adjustments.. standby Senllce Fee for GTCIGTCA Cus omers.

Pe,-dee.a· enn rn
LS fee stlall be assessed ro customeJ"S. only during ourta me:n!s. of 1nms:portaii:o services to, furn non.crxe ,custamers.

LS fee ·11 apply only to the d" er-ence betwee,n Ille customesr's nomination.sand theiT,confiirmed deliveries. e customer's stD.r.3sge-volumes, if avai able. may be usedl to, ,offset ttie- slan.dby sen,,ioe- e. Reven.ues Q(ll]ected from • is fee stta11 be ,credited ·o ttle- Ulil'ity's or1>-MaJ1!1in Fi:,(e.dl Cost Account ( M CA}. Curtail:ments of siaru:lby services provirled to Q(lr,e customeJ"S are <fescn.lled in Rule 14.

GTCfGTCA C11JstomeJ"S wtto receive seirvi:oe under this s.c'hedule sh• I ' so be ,eligiblle for siaru:lby seirvices ahea of s1.1ch services offe:r,ed ·o n.o core oos omers. including1 coo:e subscription ,customers.

Bming adj;ustments may be e.cessary o ircefle.ct ,changes in volumes used in dev qpi:ng prior periods' tran,s,porta··o dharges.
2C6
Advi:oe Ltr. o,_ 3138-G
Decisi:o Mo,_
Co:ntin e
ls-sued by
Dm Skopec
Sesnior Vice Presi:de111t
R~gulatory Affairs
Submrrted
E eci:ive
eso uiio:n o,_
Cost-effectiveness Analysis: Nonresidential New Construction 73 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

8.2.5 CPAU
Figure 16. CPAU Electric Schedule – E-2

RESIDENTIAL MASTER-.~IEITRED Al'U) SMALL ON-RESIDE1'1TIAL ELECTRIC

SERVICE
UTILITY RATE SCHEDULE E-2
A. APPUCABILITY:

Thi:s Rate Schedl!lle applies to the following Customers receiving Eloofric Service from the City of Palo Alto utilities:

1. Small non-resideotial Customers receiving Non-Demand Metered Electric • ervice; and

2. Customers with Accol!lllts at •. aster- Mered multi-fantily fac:ihti.es.

B. TERRITORY:

Thi:s rate schedule applies e11·erywhere the City of Palo Alto provides EJeotrtc erv1ce.

C. il'!:~UNDLED RA.TES:

Per kilowatt-hour (k\¥h)
ummer Period
Wmter Period
Minimum Bill ($Ida~
D. SPECIALNOTE :

Commoditv
$0.12151

0.08715
L Calculation of Cost Components
Distabution Public Benefits
$0.0!/276 . 0.00469

0.06H1l 0.00469
Total
$0.21896

0.15355

0.8777
The actual bill amount is calculated based on the applicable rates in eotion C above and adjusted for any applicable di:scouot:s, smchai:ges andfor tm,:.es_ On a Customer's l:lill statement, the bilJ amol!lllt may be broken down mto appropriate components as calculated 11nder ection C.

2.. Seasonal Rafce Changes
The Smwuer Period is effective May 1
to October J and the Winter Period ts effective
from ovember 1 to April 30. \¥hen the billing period mdudes use l1l both the ummer and the Winter Periods, the usage wlll be prorated based on the nl!lfflber of days m. each seasonail period, and the charges based on the applicable rates therein. For further di:souss~on of bill caiculabon and proration, refer t-0 Rule and Regulation 11.

CITY OF PALO ALTO

UTILITIES
Issued by the City Cmmcil
Supersedes Sheet No E-2-1
dated 7-1-2019 0
cirY 0

PALO AL,TO

UTILITIES
Sheet No E-2-1
Effective 7-]-202:2:

Cost-effectiveness Analysis: Nonresidential New Construction 74 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Figure 17. CPAU Gas Schedule – G-2

CITY 0

PALO ALTO,
UTILITIES llouthly Gas
Commo ity & Volumeb:ir R.ates
Your gas bill includes two charge types: 1) a senrice dharge, and 2) a volumetric charge. 11he service dharge for your gas service can be found on the appropriate rate schedule, which you can find in tlhefollowing locations: Residentia11 Rate Sdhedule5. and Business Rate Schedules.

The vo I umetnic charge depends on your consumption, and the rate varies monthly based on the current price of gas .. l1he following tables show the vo'lumetric rates ($/The,rm) for eadh g.as rate schedule. The volumetric rates inducfe a) a Commodity charge, whidh represenh tlhe cost ofthe gas, b) a Distribution rate, c) a Cap and Trade Compliance charge, a di) Carbon Offset Charge and e) a Transportation Charge. The Cap and Trade charge covers the cost of acquining ,comp iance instruments in California's Cap and Trade program, and \•Jill change in response to market concfitions, sales volumes, and the ,quantity of allowances required. The Transportation Charge is based on the cunrent PG&E G-WS L rate for Palo Alto, accounting for delivery I osses to the CUsto mer' s Meter. IPri or to N ovembe,r 1, 2016, ii:
w-as included \•litlhin the Distribution rate.

On September 15, 2014, Counaill adopted Re.sollution #94'51 authorizing the City's participation in a natural gas purchase from Mun· dpal Gas Ac,quisitio n and Sup ply Corporation (Muni Gas) for the City's entire rera i I gas load for a periiod ofat least 10 years. The Mu niGas transaction in cl udes a mechanism for municipal utilities to uti I ii;e their ta:x-eJliempt status to ach·eve a discount on the manket price of gas. As of November 1, 2018, gas willl begin owing undertlhis program, reducing tlhe City's gas commodity cost by about $1 Milli on per year and saving gas austome rs a ppro)!jjmately $0.03 per The,rm on tih e commodity portion of tih eir ill5.

These charges are shown on tihe left-hand side oftlhe table be ow for information pur1Pos,es, while the total volumetiric r,ate (Commodity+ Distribution+ Cap and Trade Compliance+ Carbon Offset+ Transportation) is shown on the right-hand
sidle of the table. To cal cu I ate your vari ab
e gas costs, apply the total rate to your consumption for each month. If you are a resldem:, note tlhatyour gas rate varies based on ow much you consume (Tier 1 and Tier 2). fo:r information on consumption tiers please refer to the G-1 Resi dentia I Gas SeNlce Rate Schedule.

If you have questions on your bill, please call the Oity of Palo Alto Ultilities Customer SeNlce Genter at 650-329°2161.

Effective Commocl'ity Cap and Tra nsportatio111 Carbon Total VolumetJric Rate Date IRa,te Tracie •Charge Offr,et G-1 (Residentiial} G-2 (Master G-3 {Larile Go11npl'iance Charge Metered Commercial]
Charge Multi- Family
Tieir 1 Tier 2 and1Smc1II
Com mercia II
perTherm perTherm per Therm per Therm perThenm perTherm per Therm perTherm 3/1/22 05370 0.0486 0.15000 0.040 1.30460 2.12820 1.47040 1..46350 2/l/22 0.5360 0.0486 0.15000 0.040 1.30360 2.12720 1.46940 1..46250 1/1/22 0.7714 0.0486 0.15000 0.040 1.53900 2.36260 1.70480 1..69790

1.2/1/21 0.6321 0.0486 0.12274 0.040 1.37244 2.19604 1.53824 1..53134 11/1/21 0.7505 0.0486 0.12274 0.040 1.49084 2.31444 1.65664 1..64974 10/1/21 0.7175 0.0486 0.12274 0.040 1.45784 2.28144 1.62364 1..61674 9/1/21 0.5217 0.0486 0.12274 0.040 1.26204 2.08564 1.42784 1..42094 8/1/21 0.5492 0.0486 0.12274 0.040 1.28954 2.11314 1.45534 1..44844 7/1/21 0.4800 0.0486 0.12274 0.040 1.22034 2.04394 1.38614 1..37924 6/1./21 0.3982 0.0486 0.12214 0.040 1.U274 1.89714 1.27064 1..26404 5/1/21 0.3901 0.0486 0.12200 0.040 1.10450 1 .. 88890 1.26240 1..25580 4/1./21 0.3375 0.0486 0.12200 0.040 1.05190 1.83630 1.20980 1..20320 3/1/21 0.3577 0.0486 0.12200 0.040 1.07210 1.85650 1.23000 1..22340 Cost-effectiveness Analysis: Nonresidential New Construction 75 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

8.2.6 SMUD (Electric Only)
Figure 18. SMUD Electric Schedule – CITS-0/CITS-1

Commercia ,& Industrial Tlime-of-Day
Rait,e Sclhedu e CI-TOD1
C. Reslnl.rtmed. Commer,cw ,& lndmmal Trme-.of-Daiy Rates G,t! iiJJiisl J.ffi !Pi§
• :1111~rS•c• ■ (Octaboc-Ma,)
Sy,if'm i!llfumutlln Fb:NI ~• p;,, 110,11'1fp;,, .111
Mlc:i.m.mD l>e,caHDd!~ i F "'""""' ,l!t,:C: kLlfl
D.ectrimy &:, c•iu:r•
Pd&
OfF-Pml< L½ll1\
OfF-Pml<~ncM-1111
s-r s._...,a ■ {l::,:,o - Sopt;,m;r)
SJ>i•m [Dfi--<:111n Fa.NI~• p;,, "'""m'p;tr.lH
Mlc:i.m.mD D.-cDHDd!~ :t p,r 11m11dl,' ma,: .ltlfl
D.ectrimy &:, c•iu:r•
Pd&
OfF-Pml< L½ it!\
Cll'S--1: CllI S:emeduyll-2.!l!il kW
1'1111.-.SmnmorS•ca ■ (Octaboc-M.-1)
S]"i•m ~mu-o Fu.NI~• p;,, .,,,.,_Ei'fp;,,"' ,
Sii'Jo ilii.fns,tgm,n, ~ p;,, j2,111a,1du =>: ,r =LY<l<T"'J"Idt::

DMirimy il1ll:, c•RJ:?•
Pd&
OfF-Pml< &½ it!\
OfF-Pml< S....cL½IJ,!\
SIElllllfr S•ca ■ {l::,:,o - Sopt;,m;r)
S]"i•m ~mu-o Fu.NI.~ p;,, "'""Ei'fp;tr"'
Sii'Jo ilil.fr.am'■ m,n, O"Jwre'~ p;,, U.111a,ulu""""
S ■IIIIIIU P<ed:.D,:mn;d.Oiwre;t,., p;tr .Ill
D.ectrimy i11n:, c•iu:r•
Pd&
OfF-Pml<&½lf'l\
me<1ne,.,.r
O~rt!D!l
t2&.¥.I
IIWXI
t0.1410
t0.U9}
tD.UU
tZ&.¥.1
tD.00:I
tD . .3
tn.in,
SS8.0)
s .9](1
tD.l@
tD.l lo
tD.1018
SS8.0)

17.930
su;:so
tD.189
tD.l 02
flfi'<ii.110sof m«m,, "" ar
Mm:ib 1. Wl:2 J'uzl?DB
12:us D .l

10.000 ~-00)
SO.l4Sl ID.

50.141 to. ™
S0.11 tD. lll
12iUS D .l

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H93S n :.J(I
5S:.IH9

50.116 to. 230

50.1H3 to. '~
5 .l(lll)4 to. 0.l,(I
H93S n :.J(I
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tl.-DS ll.4&

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. itl'll' ffi/!itTUChuf.ld C<lll'lJIIWil"ial Tatll:i ,!i wd (} j trTtl ~cm~' a. :ihm4!!1 ill fi/Clilill'I L[ Tr=ili<lll ' h IV. Eledri'city Usa;ge Sur-charges
Refer to, the follo•;J;iag r.rte ;cib.edn!e;; foo ., c;n]_,; on lhe;e surd!arys:

A. Hrw, Gti!Ha.til>JIJ Ad!jmiment (HGA).. iR.efeI to, !Ra.11! SC!lledu:!e !EIGA.

V. Rate Opti:011 Menu1
.~. El1mror .~isluc,e, Pro-gn:m far No profil ~'.-~ cil!5.. Refer lo Rare Scnelf·II!!_ EA!. R..

B. Campus Rates. &eru to Rate Sd'lec.11le CiB.

C. Imp~mt11.tafui of!E~u~· !EffitienqProp-am o:r l:mmllafioo of New ola.r,IPl111tonlta.ic o:r·Stor:l,'g.i! ,~fems.

OE.1on::en MIO imJL~t a. SMllD-sJ!O!LiOOBdl EllETgy Effici:em:)' progr,a:m on1,ho, m; ,a s._ . ·ilp]lrol,--erl SO~Dlliovoltaic or 5'1:0ill!lf.' ;ysrnn to ofli;et their 011-',;et:e enugir usage I!!BJ reqn.~"t, in 'l\mffing, 'l\rnfrin J.O ,d11J;; oflfle proj&! ,coo:.Jl.etion and col!!lll!l.is-ioning;. ,;m ,ali:ju;,;tn::mt co ttim: m--elve !l:.(latfl. ma1,in:.rum cfi!rrlimd. bai5ed. o:n ID= illltfd]la!E!dl rad!Jction ink from ID= !El!.ergy Effidmcy Pui" _ct ti; orlisteet. The~ rrwek,;, Ill.Om I!!lalmll.l.Im dl?l!!lllDd is mdl fo:r 1 mon11!.;. or·lllltil • is e111oei!ded by mm I!!lamJJl!!l de!!!lll.llli!.

SACRAMENTO IMUNICll?AL UlllllliTY D:li511iRilCT
Resolt(" 11 o. 21-00-06 adoptecl September 16, .2021
Sheet o. CI-TOD1-3
Effe~ve-: Sepfem'l:H!iF 11,, 2021
5diticm: Sepfern'be;r 11,, 2021
Cost-effectiveness Analysis: Nonresidential New Construction 76 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

8.2.7 Escalation Rates
Utility rates are assumed to escalate over time, using assumptions from research conducted by Energy and Environmental Economics (E3) in Appendix 8.2. The 2019 study Residential Building Electrification in California (Energy + Environmental Economics 2019a) and escalation rates used in the development of the 2022 TDV multipliers Table 24 below demonstrate the escalation rates used for nonresidential buildings. As stated by E3 in the TDV report, this latter assumption “does not presuppose specific new investments, changes in load and gas throughput, or other measures associated with complying with California’s climate policy goals” (i.e., business -as-usual is assumed).

Table 24. Real Utility Rate Escalation Rate Assumptions Above Inflation

Source
Statewide Electric
Nonresidential Average
Rate (%/year, real)
Statewide Natural Gas
Nonresidential Core Rate
(%/year, real)
2023 E3 2019 2.0% 4.0%
2024 2022 TDV 0.7% 7.7%
2025 2022 TDV 0.5% 5.5%
2026 2022 TDV 0.7% 5.6%
2027 2022 TDV 0.2% 5.6%
2028 2022 TDV 0.6% 5.7%
2029 2022 TDV 0.7% 5.7%
2030 2022 TDV 0.6% 5.8%
2031 2022 TDV 0.6% 3.3%
2032 2022 TDV 0.6% 3.6%
2033 2022 TDV 0.6% 3.4%
2034 2022 TDV 0.6% 3.4%
2035 2022 TDV 0.6% 3.2%
2036 2022 TDV 0.6% 3.2%
2037 2022 TDV 0.6% 3.1%

8.3 HVAC and SHW System Cost Scalers
Table 25 shows the material and labor adjustment factors used to determine the costs.

Table 25. Materials and Labor Adjustment Factors by Climate Zone Materials Labor
CZ 01 0.963 0.994
CZ 02 0.963 1.387
CZ 03 1.001 1.291
CZ 04 0.998 1.298
CZ 05 0.964 0.997
CZ 06 0.960 0.997
CZ 07 0.999 0.985
CZ 08 0.998 0.996
CZ 09 0.964 0.996
CZ 10 0.998 0.996
CZ 11 1.002 0.990
CZ 12 1.000 1.000
Cost-effectiveness Analysis: Nonresidential New Construction 77 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

CZ 13 1.000 0.990
CZ 14 0.964 0.980
CZ 15 0.963 0.996
CZ 16 0.967 0.990

Table 26 shows the contractor markup values used to determine the costs.

Table 26. Contractor Markup Values
Contractor 1 Contractor 2
General Conditions and Overhead 15% 20%
Design and Engineering 5% 10%
Permit, testing and inspection 5% 3%
Contractor Profit/Market Factor 10% 10%

8.4 Mixed Fuel Baseline Figures
Table 27. Mixed Fuel Baseline Model – Medium Office
Climate
zone Utility
Annual
Electricity
Consumption
(kWh)
Annual
Natural Gas
Consumption
(therms)
Total
kTDV/ft2
Total TDV
Compliance
kTDV/ft2
Efficiency
TDV
Compliance
kTDV/ft2
GHG
Emissions
Total TDV
Compliance
Margin
Proposed
Elec
Utility
Cost
Proposed
Gas
Utility
Cost tons/yr
CZ01 PG&E 186,894 5,331 130 10 72 63 1 $67,234 $10,377 CZ02 PG&E 163,979 3,253 142 12 107 52 2 $67,798 $6,493 CZ03 PG&E 176,640 2,672 131 5 83 48 1 $67,999 $5,352
CZ04 PG&E 163,768 2,003 125 -2 107 46 1 $68,366 $4,093 CZ04-2 CPAU 163,768 2,003 125 -2 107 46 1 $30,988 $6,966 CZ05 PG&E 170,544 2,575 113 -8 76 46 1 $66,040 $5,156
CZ05-2 SCG 170,544 2,575 113 -8 76 46 1 $66,040 $4,242 CZ06 SCE 163,722 1,066 122 -7 76 39 0 $76,817 $1,980
CZ07 SDG&E 169,611 747 114 -9 76 38 0 $120,127 $1,150
CZ08 SCE 191,703 941 130 -2 76 41 1 $83,752 $1,763
CZ09 SCE 169,514 1,119 135 0 76 41 1 $82,274 $2,046
CZ10 SDG&E 185,682 1,445 141 10 76 45 2 $134,646 $2,113 CZ10-2 SCE 185,682 1,445 141 10 76 45 2 $86,338 $2,474 CZ11 PG&E 209,343 3,309 166 40 136 59 2 $81,001 $6,669 CZ12 PG&E 178,461 2,864 145 19 118 53 2 $72,381 $5,784 CZ12-2 SMUD 178,461 2,864 145 19 118 53 2 $26,576 $5,784 CZ13 PG&E 211,193 2,377 165 37 139 55 2 $81,491 $4,852 CZ14 SDG&E 156,689 3,058 147 13 139 52 3 $128,390 $4,337 CZ14-2 SCE 156,689 3,058 147 13 139 52 3 $83,690 $4,756 CZ15 SCE 209,720 662 161 32 139 47 2 $101,041 $1,311
CZ16 PG&E 177,562 5,799 127 9 94 67 4 $68,281 $11,409

Cost-effectiveness Analysis: Nonresidential New Construction 78 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Table 28. All-electric Baseline Model – Medium Retail
Climate
zone Utility
Annual
Electricity
Consumption
(kWh)
Annual
Natural Gas
Consumption
(therms)
Total
kTDV/ft2
Total TDV
Compliance
kTDV/ft2
Efficiency
TDV
Compliance
kTDV/ft2
GHG
Emissions
Total TDV
Compliance
Margin
Proposed
Elec
Utility
Cost
Proposed
Gas
Utility
Cost tons/yr
CZ01 PG&E 138,367 0 192 110 162 28 -8 $43,917 $0
CZ02 PG&E 131,521 0 211 125 198 28 -15 $50,499 $0
CZ03 PG&E 112,237 0 176 91 156 25 -1 $36,206 $0
CZ04 PG&E 122,256 0 197 111 193 27 -5 $47,522 $0
CZ04-2 CPAU 122,256 0 197 111 193 27 -5 $22,961 $0
CZ05 PG&E 108,753 0 159 76 146 24 -8 $35,179 $0
CZ05-2 SCG 108,753 0 159 76 146 24 -8 $35,179 $0
CZ06 SCE 111,442 0 175 89 146 24 -8 $42,572 $0
CZ07 SDG&E 109,079 0 172 87 146 23 0 $71,108 $0
CZ08 SCE 129,105 0 196 107 146 26 -10 $47,404 $0
CZ09 SCE 123,673 0 193 105 146 26 -3 $46,830 $0
CZ10 SDG&E 114,235 0 174 87 146 25 4 $77,903 $0
CZ10-2 SCE 114,235 0 174 87 146 25 4 $45,763 $0
CZ11 PG&E 144,411 0 229 144 218 30 -6 $54,592 $0
CZ12 PG&E 141,639 0 221 136 211 30 -4 $53,798 $0
CZ12-2 SMUD 141,639 0 221 136 211 30 -4 $21,079 $0
CZ13 PG&E 153,371 0 244 158 236 32 -15 $56,701 $0
CZ14 SDG&E 145,499 0 223 135 236 31 -8 $86,177 $0
CZ14-2 SCE 145,499 0 223 135 236 31 -8 $52,840 $0
CZ15 SCE 146,092 0 244 158 236 29 -24 $56,750 $0
CZ16 PG&E 157,944 0 224 144 214 34 -31 $57,190 $0

Cost-effectiveness Analysis: Nonresidential New Construction 79 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Table 29. Mixed Fuel Baseline Model – Quick-Service Restaurant Climate
zone Utility
Annual
Electricity
Consumption
(kWh)
Annual
Natural Gas
Consumption
(therms)
Total
kTDV/ft2
Total TDV
Compliance
kTDV/ft2
Efficiency
TDV
Compliance
kTDV/ft2
GHG
Emissions
Total TDV
Compliance
Margin
Proposed
Elec
Utility
Cost
Proposed
Gas
Utility
Cost tons/yr
CZ01 PG&E 63,187 12,237 1,974 820 820 80 5 $20,126 $23,401 CZ02 PG&E 66,343 11,170 1,989 839 839 74 20 $21,332 $21,422 CZ03 PG&E 67,877 10,605 1,922 769 769 71 1 $21,657 $20,336 CZ04 PG&E 77,615 10,277 2,062 910 910 71 -4 $24,931 $19,725 CZ04-2 CPAU 77,615 10,277 2,062 910 910 71 -4 $15,041 $30,442 CZ05 PG&E 69,442 10,655 1,898 744 744 71 -2 $22,105 $20,416 CZ05-2 SCG 69,442 10,655 1,898 744 744 71 -2 $22,105 $14,924 CZ06 SCE 78,813 9,600 1,934 778 744 67 -1 $19,698 $13,599 CZ07 SDG&E 76,653 9,425 1,898 739 744 66 18 $26,903 $13,116 CZ08 SCE 77,418 9,554 1,948 792 744 66 28 $20,356 $13,542 CZ09 SCE 77,625 9,687 1,993 837 744 67 7 $20,405 $13,709 CZ10 SDG&E 81,897 9,907 2,032 877 744 69 26 $31,166 $13,782 CZ10-2 SCE 81,897 9,907 2,032 877 744 69 26 $21,407 $13,986 CZ11 PG&E 85,725 10,748 2,259 1,109 1,109 75 -12 $27,885 $20,664 CZ12 PG&E 74,131 10,726 2,080 928 928 72 2 $24,000 $20,605 CZ12-2 SMUD 74,131 10,726 2,080 928 928 72 2 $11,272 $20,605 CZ13 PG&E 88,060 10,441 2,240 1,089 1,089 73 -2 $28,620 $20,070 CZ14 SDG&E 87,498 10,655 2,251 1,097 1,089 74 -31 $30,692 $14,728 CZ14-2 SCE 87,498 10,655 2,251 1,097 1,089 74 -31 $22,471 $14,925 CZ15 SCE 118,353 9,194 2,444 1,289 1,089 71 -13 $28,746 $13,090 CZ16 PG&E 75,373 12,242 2,143 983 983 82 2 $24,194 $23,494

Cost-effectiveness Analysis: Nonresidential New Construction 80 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

Table 30. Mixed Fuel Baseline Model – Small Hotel
Climate
zone Utility
Annual
Electricity
Consumption
(kWh)
Annual
Natural Gas
Consumption
(therms)
Total
kTDV/ft2
Total TDV
Compliance
kTDV/ft2
Efficiency
TDV
Compliance
kTDV/ft2
GHG
Emissions
Total TDV
Compliance
Margin
Proposed
Elec
Utility
Cost
Proposed
Gas
Utility
Cost tons/yr
CZ01 PG&E 230,187 16,824 299 161 173 137 7 $72,520 $32,208 CZ02 PG&E 243,164 13,161 287 152 169 117 5 $77,188 $25,351 CZ03 PG&E 232,511 12,725 272 136 151 113 6 $73,496 $24,461 CZ04 PG&E 251,386 11,608 280 146 165 109 5 $80,034 $22,342 CZ04-2 CPAU 251,386 11,608 280 146 165 109 5 $48,175 $34,218 CZ05 PG&E 232,585 12,375 264 127 143 111 6 $73,479 $23,746 CZ05-2 SCG 232,585 12,375 264 127 143 111 6 $73,479 $17,084 CZ06 SCE 251,627 10,100 260 124 143 100 4 $53,976 $14,227 CZ07 SDG&E 250,625 9,977 257 120 143 100 3 $77,312 $13,878 CZ08 SCE 271,204 9,874 269 136 143 101 3 $60,488 $13,943 CZ09 SCE 265,607 10,246 273 140 143 103 4 $60,896 $14,411 CZ10 SDG&E 276,218 9,903 276 142 143 102 3 $91,917 $13,642 CZ10-2 SCE 276,218 9,903 276 142 143 102 3 $63,534 $13,980 CZ11 PG&E 285,482 12,457 315 179 197 118 4 $82,170 $24,172 CZ12 PG&E 263,561 11,890 293 158 176 112 2 $76,104 $23,029 CZ12-2 SMUD 263,561 11,890 293 158 176 112 2 $34,853 $23,029 CZ13 PG&E 293,124 11,309 310 175 193 113 1 $84,632 $21,924 CZ14 SDG&E 276,292 12,071 298 166 193 115 2 $89,492 $16,232 CZ14-2 SCE 276,292 12,071 298 166 193 115 2 $63,611 $16,703 CZ15 SCE 349,319 7,895 309 174 193 98 -4 $78,507 $11,458 CZ16 PG&E 228,611 17,363 310 170 195 142 9 $72,664 $33,471

Cost-effectiveness Analysis: Nonresidential New Construction 81 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

8.5 GHG Savings Summary
This section shows the percent GHG savings for each package. GHG multipliers in CBECC software have utility emissions multipliers assigned only to each of the California’s sixteen climate zones, does not vary by utility within each zone. Individual utility assumptions may vary widely. In the Medium Office, the GHG emissions increases in all- electric package because the proposed all-electric system is electric resistance VAV system instead of a more efficient heat pump boiler system.

Figure 19. Percentage GHG Savings – Medium Office
CZ Mixed Fuel All-Electric
EE Code Min EE EE + LF
cz01 0% 3% 4% 12%
cz02 1% 0% 1% 8%
cz03 1% 0% 1% 8%
cz04 2% -1% 1% 7%
cz04-2 2% -1% 1% 7%
cz05 1% 0% 2% 9%
cz05-2 1% 0% 2% 9%
cz06 2% 0% 2% 8%
cz07 3% 0% 3% 8%
cz08 3% 0% 2% 8%
cz09 2% -1% 2% 7%
cz10 2% -2% 0% 6%
cz11 1% -3% -1% 5%
cz12 1% -2% -1% 5%
cz13 2% -3% -1% 5%
cz14 2% -4% -2% 5%
cz15 3% -1% 2% 7%
cz16 1% 1% 2% 7%

Figure 20. Percentage GHG Savings – Medium Retail
CZ Utility Mixed Fuel All-Electric
Code Min EE EE
cz01 PG&E -4% -2% 9%
cz02 PG&E -21% -13% 10%
cz03 PG&E -18% -8% 11%
cz04 PG&E -14% -5% 10%
cz05 PG&E -15% -5% 12%
cz06 SCE -7% 4% 13%
cz07 SDG&E -5% 7% 14%
cz08 SCE -7% 4% 12%
cz09 SCE -8% 3% 13%
cz10 SDG&E -12% -9% 3%
cz11 PG&E -23% -21% 2%
Cost-effectiveness Analysis: Nonresidential New Construction 82 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

cz12 PG&E -19% -11% 9%
cz13 PG&E -17% -8% 10%
cz14 SDG&E -15% -5% 10%
cz15 SCE -3% 0% 3%
cz16 PG&E -34% -33% 2%

Figure 21. Percentage GHG Savings – Quick Service Restaurant CZ Utility Mixed Fuel All-electric "HS" (HVAC+SHW) All-electric EE Code Min EE EE + LF EE + PV Code Min EE
cz01 PG&E 10% 21% 26% 28% 27% 47% 52%
cz02 PG&E 7% 16% 19% 21% 21% 45% 49%
cz03 PG&E 8% 14% 20% 22% 22% 45% 51%
cz04 PG&E 7% 12% 17% 19% 19% 43% 49%
cz05 PG&E 8% 14% 20% 22% 22% 45% 51%
cz06 SCE 7% 9% 15% 16% 17% 43% 48%
cz07 SDG&E 6% 8% 14% 15% 16% 43% 48%
cz08 SCE 4% 9% 12% 13% 14% 43% 46%
cz09 SCE 5% 9% 12% 13% 15% 43% 46%
cz10 SDG&E 5% 10% 13% 14% 15% 42% 46%
cz11 PG&E 6% 13% 17% 18% 18% 43% 46%
cz12 PG&E 6% 14% 17% 18% 19% 44% 48%
cz13 PG&E 6% 12% 15% 16% 17% 43% 46%
cz14 SDG&E 6% 13% 16% 17% 18% 42% 46%
cz15 SCE 4% 7% 9% 11% 12% 40% 42%
cz16 PG&E 8% 18% 23% 24% 24% 44% 49%

Figure 22. Percentage GHG Savings – Small Hotel
CZ Utility
Mixed Fuel All-Electric All-Electric
EE Code Min EE EE + PV Code Min
(PTHP)
cz01 PG&E 13% 47% 48% 50% 47%
cz02 PG&E 11% 42% 44% 47% 43%
cz03 PG&E 12% 43% 45% 48% 43%
cz04 PG&E 11% 41% 44% 46% 42%
cz05 PG&E 11% 43% 45% 48% 43%
cz06 SCE 10% 41% 43% 46% 41%
cz07 SDG&E 10% 41% 43% 47% 41%
Cost-effectiveness Analysis: Nonresidential New Construction 83 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

cz08 SCE 10% 40% 42% 46% 40%
cz09 SCE 10% 40% 42% 46% 40%
cz10 SDG&E 11% 37% 39% 43% 37%
cz11 PG&E 12% 39% 41% 43% 39%
cz12 PG&E 12% 38% 41% 43% 39%
cz13 PG&E 11% 37% 39% 42% 37%
cz14 SDG&E 12% 38% 40% 44% 38%
cz15 SCE 10% 33% 35% 40% 33%
cz16 PG&E 13% 43% 46% 48% 45%

Cost-effectiveness Analysis: Nonresidential New Construction 84 Energy Code Compliance Results and Reach Code Considerations

California Energy Codes & Standards | A statewide utility program 2023-03-24

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