Agenda packet — Santa Cruz City Council, August 6, 2024

CITY OF SANTA CRUZ
809 Center Street
Santa Cruz, California 95060

CITY COUNCIL AGENDA
Study Session – August 6, 2024
4:00 p.m. GENERAL BUSINESS, ZOOM/COUNCIL CHAMBERS
The meeting may be viewed remotely, using any of the following sources:
 Click on Zoom link (no time delay): https://zoom.us/j/94684401344  Online at http://www.cityofsantacruz.com/government/city-council/council-meetings  Online at Watch – Community Television of Santa Cruz County  Comcast Channel 25
Or: Call any of the numbers below. If one is busy, try the next one.  1-833-548-0276 (Toll Free)
 1-833-548-0282 (Toll Free)
 1-877-853-5247 (Toll Free)
 1-669-900-9128
 Enter the meeting ID number: 946 8440 1344
 When prompted for a Participant ID, press #.
 Press *9 on your phone to “raise your hand” when the Mayor calls for public comment.  It will be your turn to speak when the Mayor calls on you. Press *6 to unmute yourself. The timer will then be set.

Correspondence to be included in the agenda packet must be received by 12:00 pm on Tuesday, August 6th
The City of Santa Cruz does not discriminate against persons with disabilities. Out of consideration for people with chemical sensitivities we ask that you attend fragrance free. Upon request, the agenda can be provided in a format to accommodate special needs. Additionally, if you wish to attend this public meeting and will require assistance such as an interpreter for American Sign Language, Spanish, or other special equipment, please call the City Clerk’s Department at 420-5030 at least five days in advance so that we can arrange for such special assistance, or email [email protected]. The CalRelay system number: 1-800-735-2922.

Si desea asistir a esta reunión pública y necesita ayuda - como un intérprete de lenguaje de señas americano, español u otro equipo especial - favor de llamar al Departamento de la Secretaría de la Ciudad al 420-5030 al menos cinco días antes para que podamos coordinar dicha asistencia especial o envié un correo electrónico a [email protected]. El número del sistema Cal-Relay es: 1-800-735-2922.

Agenda and Agenda Packet Materials: The City Council agenda and the complete agenda packet containing public records, which are not exempt from disclosure pursuant to the California Public Records Act, are available for review on the City’s website: www.cityofsantacruz.com/government/city-council-meetings and at the Office of the City Clerk located at 809 Center Street, Room 9, Santa Cruz, California, during normal business hours.

Agenda Materials Submitted after Publication of the Agenda Packet: Pursuant to Government Code §54957.5, public records related to an open session agenda item submitted after distribution of the agenda packet are available at the same time they are distributed or made available to the legislative body on the City’s website at:
www.cityofsantacruz.com/government/city-council-meetings and are also available for public inspection at the Office of the City Clerk, 809 Center Street Room 9, Santa Cruz, California, during normal business hours, and at the council meeting.

Need more information? Contact the City Clerk’s office at 831-420-5030.

August 6, 2024 City Council Study Session 2
City Council Study Session
4:00 P.M.

Call to Order
Roll Call
General Business

1. City Council Study Session on Energy Efficient Renovations Policy Development (CM/PL)
Review energy efficient renovations policy development and provide feedback as desired.

Adjournment
City Council Study Session

AGENDA REPORT
DATE: 7/17/2024
AGENDA OF: 8/6/2024
DEPARTMENT: City Manager/Planning and Community Development SUBJECT: City Council Study Session on Energy Efficient Renovations Policy Development (CM/PL)
RECOMMENDATION: Review energy efficient renovations policy development and provide feedback as desired.

BACKGROUND: The California Air Resources Board (CARB) has introduced zero-emission appliance standards with a phased implementation beginning in 2027. These standards aim to reduce greenhouse gas emissions and improve air quality by targeting residential and commercial appliances, including heaters and water heaters, to transition towards cleaner energy sources. By 2030, all new space and water heaters sold in California are expected to meet zero-emission standards. This initiative is part of California's broader strategy to achieve carbon neutrality by 2045.

The City adopted its Climate Action Plan 2030 (CAP 2030) in 2022 with a legal target to reduce emissions 40% from 1990 levels by 2030 and an aspirational target of carbon neutral by 2035, 10 years earlier than the State target. The CAP 2030 contains three measures related to existing building energy use which accounts for 24% of greenhouse gas emissions regulated by CARB:
 Measure BE-2 is to electrify 31% of existing residential buildings by 2030 and 53% by 2035.
 Measure BE-3 is to electrify 26% of existing commercial buildings by 2030 and 45% by 2035.
 Measure BE-5 is to increase resiliency through equitable energy efficiency and local solar programs.

In 2022, when staff began work on exploring existing building decarbonization policies, staff considered building performance standards, building system replacement upon time of property transfer, and building system replacement upon time of permit. Considering that 96% of the City’s building stock is residential and 87% of residential buildings are single family homes older than 1978, staff determined that large renovations are one of the best opportunities to make improvements to single family homes resulting in reduce energy use and emissions and improved comfort and satisfaction. With the incentives available and planned, the proposed energy efficient renovations ordinance is the first of what may be several policies coming forward to regulate energy use in existing buildings in order to reach the CAP 2030 targets.

1.1 DISCUSSION: Staff will review the proposed ordinance in detail at the study session but include a brief summary herein. The proposed policy would require that major residential additions and/or alteration projects must include energy efficiency measures and, in some cases, provide outlets for future zero emission appliances. A major addition or alteration would trigger the ordinance and includes the addition or alteration of 350 square feet more of floor area. If the ordinance applies, the permit applicant would choose from and install any number of energy efficiency measures that meet a point score in addition to the mandatory electric ready pre-wiring and outlet requirements. The state requires that at least one cost effective option must exist to meet the point score; there are at least five cost effective combinations in the proposed energy efficient renovations ordinance.

The proposed policy does not require electrification and considers special onsite challenges or circumstances. The proposed ordinance would not apply to small projects, repairs, appliance replacements (e.g., kitchen appliances or gas stoves), window projects, roof projects, cosmetic changes, and work that does not require a permit. There are also exemptions for pre-compliance, incompatibility with historical building status, seismic retrofits, temporary structures, and when upgrades present a significant cost burden.

One quarter of housing occupants are highly sensitive to energy bills, thus promotion and availability of incentives are critical for the proposed energy efficient renovations policy to succeed and not increase energy burden of residents, especially those with lower incomes.

Rebates are available from Central Coast Community Energy and 30% tax credits are available for most residential energy upgrades with caps per measure and total in a given tax year. Other incentives and services to help residents navigate complex projects are also in development.

Staff estimate that the proposed policy will impact approximately 300 permits annually, with a median project valuation at $130,000, increasing project costs, on average, by 5%.

To date, staff have primarily focused on the portion of the policy related to single-family detached residential. In addition to the attached single family cost effectiveness study, a multifamily cost effectiveness study is also attached to this report. At the time of writing this agenda report, staff are still considering how the proposed energy efficient renovations ordinance would apply to multifamily residential. Additional information regarding a separate or combined energy efficiency renovations policy applicable to multifamily residential may be provided at the study session.

Community Outreach
Staff conducted extensive outreach on this topic between 2020 and 2022 during the development of the CAP 2030. In the spring of 2022, staff conducted four listening sessions on the topic of existing building decarbonization with the housing and healthcare sector, designers, buildings and contractors, large multifamily property owners and developers, and non-profits and communitybased organizations. In 2023, because staff had to develop a replacement ordinance for the suspended natural gas prohibition in new construction, progress on existing building decarbonization was paused for about a year. Once the new buildings energy reach code was adopted by City Council in November 2023, City staff began immediately developing the energy efficient renovations policy.

On June 13, 2024, staff conducted outreach with the Mayor’s Community Climate Action Task Force, where ten individuals participated. In early June 2024, staff mailed postcards regarding the

1.2 development of the proposed ordinance to over 500 builders, designers, contractors, and developers listed in the City’s business database. On June 27, 2024, staff conducted a virtual outreach meeting for builders, designers, developers, and contractors who do business in the City of Santa Cruz. On July 10, 2024, staff conducted a virtual outreach meeting for the public with only six participants, despite heavy promotion of the meeting. All materials from the outreach described above are included at the City’s Building Decarbonization webpage (https://www.cityofsantacruz.com/government/city-departments/planning-and-communitydevelopment/long-range-policy-planning/ordinance-policy-updates/Decarbonization-Citywide) Feeback from the outreach included questions related to:
 The addition of a low emission refrigerant option for heat pump appliances,  How the policy would accommodate the imminent advance in technology to 110 volt/120 volt appliances versus 240 volt appliances,
 Whether a subpanel addition versus a main panel would trigger the electric readiness requirements for future space and water heating appliances,  How project valuations are computed for the purpose of building permits, and  Where to find assistance to install a heat pump water heater in a homeowners’ association.

Concern was expressed that the proposed policy could present another barrier to legalizing illegal accessory dwelling units (ADUs) and that the square footage threshold that triggers compliance should be increased to the size of a junior ADU (500 square feet or greater). It was suggested that the proposed policy, should it be adopted, go into effect at the same time as the regular code update cycle. Although this proposed policy would not require installation of induction cooktops, it could result in making the building’s electric infrastructure ready for induction cooktop appliances.

Another concern articulated was the need to advise people with pacemakers of homes with induction cooktops, as they can interfere with pacemakers.

It was also suggested that staff better emphasize the cost effectiveness of the energy efficiency measures that will offset the costs of installing the energy efficiency measures. Last, another participant offered to host the public to view two different types of heat pump space heating units installed at two dwelling units on one property.

Staff are developing a Frequently Asked Questions document to address these concerns and other common questions. This document will be periodically updated based on feedback and questions from the community.

Next Steps
Staff will continue to conduct outreach with community members, including collecting input via an online survey, meeting with affordable housing and realtor groups, and featuring the project at an upcoming open house in October. The proposed ordinance is planned to be presented to the Planning Commission on October 17, 2024 for feedback and to City Council for a first reading on November 26, 2024. The tentative implementation date would be April 1, 2025.

Health in All Policies (HiAP)
HiAP is a collaborative approach to improving the health of all people by incorporating health considerations into decision-making across sectors and policy areas. HiAP is based on three pillars: equity, public health, and sustainability. The goal of HiAP is to ensure that all decisionmakers are informed about the health, equity, and sustainability impacts of various policy options during the policy development process. The development of policy to improve the

1.3 energy efficiency of residential building renovations supports the pillars of equity and public health by ensuring all buildings are safe and healthy while remaining cost effective. This policy development supports sustainability by reducing greenhouse gas (GHG) emissions and fossil fuel dependence citywide, consistent with the CAP 2030. Therefore, the proposed code amendments are considered consistent with the three pillars of HiAP.

Environmental Review/CEQA
Municipal code amendments created as a result of this policy development will be consistent with the Negative Declaration approved for the City of Santa Cruz 2030 Climate Action Plan adopted by City Council on September 13, 2022. Therefore, no further environmental review under the California Environmental Quality Act (CEQA) will be required. The code amendments will also be exempt from CEQA under the general rule, 15061(b)(3), because it can be seen with certainty that the provisions would not have the potential for causing a significant effect on the environment. Further, resulting code amendments will be exempt per CEQA Guidelines Section 15308, Class 8, Actions by Regulatory Agencies for Protection of Natural Resources, since the cod amendments would institute regulatory requirements intended to protect the environment and natural resources.

FISCAL IMPACT: Consideration of the energy efficient renovations policy has no fiscal impact on the City. The consultant assisting the City on the policy development, TRC, is funded by Central Coast Community Energy as part of their member services programming.

As this policy will provide less flexibility than the standard California Energy Code regulations, the policy could potentially lead to a slight decrease in development and renovation applications compared to what would be proposed if only the standard state energy code continued to apply.

However, with the policy resulting in an estimated five percent increase in cost, with the offsetting cost savings for reduced energy use, and with the rebates and tax incentives available for energy efficient upgrades, a reduction in development and renovation interest is unlikely.

City staff or consulting plan check staff will need to update materials, answer questions, and review plans and construction for compliance. This is expected to be handled with existing and planned staff and consultant resources.

In consideration of the above information, the policy is not anticipated to result in noticeable fiscal changes, either positive or negative.

Prepared by:

Tiffany Wise-West
Sustainability and Resiliency
Officer
Submitted by:

Lee Butler, AICP, LEED/AP
Director of Planning and
Community Development
Approved by:

Matt Huffaker
City Manager
ATTACHMENTS:

1. Cost Effective Retrofit Study for Single Family Housing

2. Cost Effective Retrofit Study for Low Rise, Multifamily Housing

1.4 Prepared by:

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

Kelly Cunningham, Codes and Standards Program, Pacific Gas and Electric Last modified: 2024/04/25
Revision: 1.0

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3.2.1 HPSH Cost-Effectiveness ........................................................................................................................................... 26

3.2.2 HPWH Cost-Effectiveness .......................................................................................................................................... 27

3.2.3 Envelope & Duct Improvement Cost-Effectiveness..................................................................................................... 28

3.2.4 Sensitivities................................................................................................................................................................. 29

3.3 Gas Pathways for Heat Pump Replacements..................................................................................................................... 30 4 Recommendations and Discussion.......................................................................................................................32 5 References ...............................................................................................................................................................36 6 Appendices ..............................................................................................................................................................37

6.1 Map of California Climate Zones......................................................................................................................................... 37

6.2 Utility Rate Schedules......................................................................................................................................................... 38

6.2.1 Pacific Gas & Electric.................................................................................................................................................. 39

6.2.2 Southern California Edison ......................................................................................................................................... 47

6.2.3 Southern California Gas.............................................................................................................................................. 51

6.2.4 San Diego Gas & Electric............................................................................................................................................ 53

6.2.5 City of Palo Alto Utilities.............................................................................................................................................. 63

6.2.6 Sacramento Municipal Utilities District (Electric Only)................................................................................................. 65

6.2.7 Fuel Escalation Assumptions...................................................................................................................................... 67

1.9 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
6 LIST OF TABLES
Table 1. Prototype Characteristics........................................................................................................................................................ 8 Table 2. Efficiency Characteristics for Three Vintage Cases ................................................................................................................ 9 Table 3. Measure Cost Assumptions – Efficiency & Duct Measures .................................................................................................. 14 Table 4. Measure Descriptions & Cost Assumptions – PV ................................................................................................................. 15 Table 5. Lifetime Analysis Replacement Assumptions for DFHP (Existing Furnace) Scenario .......................................................... 16 Table 6. System Sizing by Climate Zone ............................................................................................................................................ 17 Table 7. Ducted HVAC Measure Cost Assumptions – 4-Ton Electric Replacements ......................................................................... 18 Table 8. Non-Ducted HVAC Measure Cost Assumptions – 4-Ton Electric Replacements ................................................................. 18 Table 9. Water Heating Measure Cost Assumptions – Existing Gas .................................................................................................. 19 Table 10. Water Heating Measure Cost Assumptions – Existing Electric Resistance ........................................................................ 20 Table 11. HPSH CZ 12 [1992-2010]................................................................................................................................................... 26 Table 12. HPSH CZ 16 [1992-2010]................................................................................................................................................... 26 Table 13. HPWH CZ 12 [1992-2010].................................................................................................................................................. 27 Table 14. HPWH CZ 16 [1992-2010].................................................................................................................................................. 27 Table 15. Envelope and Duct Measures CZ 3 [Pre-1978] .................................................................................................................. 28 Table 16. Envelope and Duct Measures CZ 10 [Pre-1978]................................................................................................................. 28 Table 17. Envelope and Duct Measures CZ 12 [Pre-1978]................................................................................................................. 28 Table 18. Sensitivity Analysis Results for On-Bill NPV Cost-Effectiveness in Climate Zone 12, PG&E.............................................. 29 Table 19. Electric Panel Upgrade Sensitivity for CZ 12 [1992-2010] .................................................................................................. 29 Table 20. PG&E Baseline Territory by Climate Zone.......................................................................................................................... 39 Table 21. PG&E Monthly Gas Rate ($/therm)..................................................................................................................................... 39 Table 22: SCE Baseline Territory by Climate Zone ............................................................................................................................ 47 Table 23. SoCalGas Baseline Territory by Climate Zone ................................................................................................................... 51 Table 24. SoCalGas Monthly Gas Rate ($/therm) .............................................................................................................................. 51 Table 25. SDG&E Baseline Territory by Climate Zone ....................................................................................................................... 53 Table 26. SDG&E Monthly Gas Rate ($/therm).................................................................................................................................. 53 Table 27. CPAU Monthly Gas Rate ($/therm)..................................................................................................................................... 63 Table 28: Real Utility Rate Escalation Rate Assumptions, CPUC En Banc and 2022 TDV Basis ...................................................... 67 Table 29: Real Utility Rate Escalation Rate Assumptions, 2025 LSC Basis ....................................................................................... 68

1.10 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
7 LIST OF FIGURES
Figure 1: DFHP with Existing Furnace............................................................................................................................................ 22 Figure 2: Standard Efficiency HPSH............................................................................................................................................... 22 Figure 3: High Efficiency HPSH...................................................................................................................................................... 23 Figure 4: Ducted MSHP.................................................................................................................................................................. 23 Figure 5: HPSH + PV...................................................................................................................................................................... 23 Figure 6: 240V Federal Minimum HPWH........................................................................................................................................ 24 Figure 7: 240V Market Standard NEEA HPWH .............................................................................................................................. 24 Figure 8: 120V Market Standard NEEA HPWH .............................................................................................................................. 24 Figure 9: 240V Federal Minimum HPWH + PV............................................................................................................................... 24 Figure 10: R-6 Ducts....................................................................................................................................................................... 25 Figure 11: 10% Duct Leakage ........................................................................................................................................................ 25 Figure 12: R-13 Wall Insulation....................................................................................................................................................... 25 Figure 13: R-49 Attic Insulation....................................................................................................................................................... 25 Figure 14. Heat pump space heater path compared to the air conditioner path. ............................................................................ 31 Figure 15. Heat pump water path compared to gas with solar thermal........................................................................................... 31 Figure 16. Map of California climate zones..................................................................................................................................... 37

1.11 1.12
Cost-Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
1 California Energy Codes & Standards | A statewide utility program 2024-04-25 Executive Summary
The California Codes and Standards (C&S) Reach Codes program provides technical support to local governments considering adopting a local ordinance (reach code) intended to support meeting local and/or statewide energy efficiency and greenhouse gas (GHG) reduction goals. The program facilitates adoption and implementation of the code when requested by local jurisdictions by providing resources such as cost-effectiveness studies, model language, sample findings, and other supporting documentation.

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

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

The following summarizes key results from the study:

Conclusions and Discussion:

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

1.13 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
2 California Energy Codes & Standards | A statewide utility program 2024-04-25 the 1978-1991 vintage. If duct systems still have remaining life they should be sealed and tested to meet 10% leakage or lower; however, duct upgrades alone were only found to be cost-effective for newer homes in Climate Zones 10 (SDG&E territory only), 11, and 13 through 16. Duct upgrades may be able to be coupled with other measures to reduce the cost.

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

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

1.14 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
3 California Energy Codes & Standards | A statewide utility program 2024-04-25 new initiatives to obtain current costs including the TECH Clean California program1 that publishes heat pump data and costs; however, at the time of this analysis, the TECH data did not contain incremental costs because it only had the heat pump costs but not the gas base case costs.

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

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

Recommendations:

1.15 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
4 California Energy Codes & Standards | A statewide utility program 2024-04-25 iii. A gas path should also be prescriptively allowed to safely satisfy federal preemption requirements considering the CRA v. Berkeley case.3 Additional requirements may apply to the gas path, as described in Section 3.3, as long as the paths are reasonably energy or cost equivalent.
c. “Flexible Path”, minimum energy savings target: This flexible approach establishes a target for required energy savings based on a measure or a set of measures that were found to be cost-effective based on either LSC or On-Bill. A points menu compares various potential upgrades ranging from efficiency, PV, and fuel substitution measures, based on site or source energy savings. The applicant must select upgrades that individually or in combination meet the minimum energy savings target. The maximum target value shown in the Cost-effectiveness Explorer is based on a combination of costeffective, non-preempted measures.

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

3. Consider extending relevant proposals made by the CEC for the 2025 Title 24 code (California Energy Commission, 2023) in ordinances that apply under the 2022 Title 24 code, such as the following:
a. Mandatory ventilation requirements for HPWH installations (Section 110.3(c)7). The cost-effectiveness analysis can be found in the Multifamily Domestic Hot Water CASE report (Statewide Team, 2023). b. Requirement for HERS verified refrigerant charge verification for heat pumps in all climate zones (Table 150.1-A4). The cost-effectiveness analysis can be found in the Residential HVAC Performance CASE report (Statewide Team, 2023).

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

5. Education and training can play a critical role in ensuring that heat pumps are installed, commissioned, and controlled properly to mitigate grid impacts and maximize occupant satisfaction. Below are select recommended strategies.
a. The Quality Residential HVAC Services Program5 is an incentive program to train California contractors in providing quality installation and maintenance while advancing energy-efficient technologies in the residential HVAC industry. Jurisdictions can market this to local contractors to increase the penetration of contractors skilled in heat pump design and installation. b. Educate residents and contractors of available incentives, tax credits, and financing opportunities. c. Educate contractors on code requirements. Energy Code Ace provides free tools, training, and resources to help Californians comply with the energy code. Contractors can access interactive compliance forms, fact sheets, and live and recorded trainings, among other things, on the website:
https://energycodeace.com/. Jurisdictions can reach out to Energy Code Ace directly to discuss offerings.

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

1.16 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades Executive Summary
5 California Energy Codes & Standards | A statewide utility program 2024-04-25 if the appliances are not being replaced. It is recommended that the building department require inspection and testing of all combustion appliances located within the pressure boundary of the building after completion of retrofit work that involves air sealing or insulation measures. b. Jurisdictions may consider requiring mechanical ventilation in homes where air sealing has been conducted. In older buildings, outdoor air is typically introduced through leaks in the building envelope.

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

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

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

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

1.17 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades Introduction
6 California Energy Codes & Standards | A statewide utility program 2024-04-25 1 Introduction
This report documents cost-effective measure upgrades in existing single family buildings that exceed the minimum state requirements, the 2022 Building Energy Efficiency Standards, effective January 1, 2023. Local jurisdictions in California may consider adopting local energy ordinances to achieve energy savings beyond what will be accomplished by enforcing building efficiency requirements that apply statewide. This report was developed in coordination with the California Statewide Investor-Owned Utilities (IOUs) Codes and Standards Program, key consultants, and engaged cities—collectively known as the Statewide Reach Codes Team.

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

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

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

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

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

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

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

1.18 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades Methodology and Assumptions
7 California Energy Codes & Standards | A statewide utility program 2024-04-25 2 Methodology and Assumptions

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

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

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

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

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

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

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

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

1.19 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades Methodology and Assumptions
8 California Energy Codes & Standards | A statewide utility program 2024-04-25 Table 1. Prototype Characteristics
Specification
Existing Conditioned Floor Area 1,665 ft2
Num. of Stories 1
Num. of Bedrooms 3
Window-to-Floor Area Ratio 13%
Attached Garage 2-car garage
Three building vintages were evaluated to determine sensitivity of existing building performance on cost-effectiveness of upgrades. For example, it is widely recognized that adding attic insulation in an older home with no insulation is costeffective, however, newer homes will likely have existing attic insulation reducing the cost-effectiveness of an incremental addition of insulation. The building characteristics for each vintage were determined based on either prescriptive requirements from Title 24 that were in effect or standard construction practice during that time period.

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

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

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

1.20 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades Methodology and Assumptions
9 California Energy Codes & Standards | A statewide utility program 2024-04-25 Table 2. Efficiency Characteristics for Three Vintage Cases Building Component Efficiency
Feature
Vintage Case
Pre-1978 1978-1991 1992-2010
Envelope
Exterior Walls 2x4, 16-inch on center wood frame,
R-0a
2x4 16 inch on center wood frame,
R-11
2x4 16 inch on center wood frame,
R-13
Foundation Type & Insulation Uninsulated slab (CZ 2-15) Raised floor, R-0 (CZ 1 & 16)
Uninsulated slab (CZ 2-15)
Raised floor, R-0 (CZ 1 & 16)
Uninsulated slab (CZ 2-15)
Raised floor, R-19 (CZ 1 & 16)
Ceiling Insulation & Attic Type
Vented attic, R-5 @ ceiling level for CZ
6 & 7,
Vented attic, R-11 @ ceiling level
(all other CZs)
Vented attic, R-19 @ ceiling level Vented attic, R-30 @ ceiling level Roofing Material & Color Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Radiant Barrier No No No
Window Type: U-factor/SHGCb Metal, single pane: 1.16/0.76 Metal, dual pane: 0.79/0.70 Vinyl, dual pane Low-E: 0.55/0.40 House Infiltration at 50 Pascals 15 ACH50 10 ACH50 7 ACH50 HVAC Equipment
Heating Efficiency 78 AFUE (assumes 2 replacements) 78 AFUE (assumes 1 replacement) 78 AFUE Cooling Efficiency 10 SEER (assumes 2 replacements) 10 SEER (assumes 1 replacement) 13 SEER, 11 EER Duct Location & Details Attic, R-2.1, 30% leakage at 25 Pa Attic, R-2.1, 25% leakage at 25 Pa Attic, R-4.2, 15% leakage at 25 Pa Whole Building Mechanical
Ventilation None None None
Water Heating Equipment
Water Heater Efficiency 0.575 Energy Factor (assumes 2
replacements)

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

1.21 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 10 Methodology and Assumptions
California Energy Codes & Standards | A statewide utility program 2024-04-25

2.1.3 Cost-Effectiveness Approach

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

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

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

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

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

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

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

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

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

1.22 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 11 Methodology and Assumptions
California Energy Codes & Standards | A statewide utility program 2024-04-25 The lifetime costs or benefits are calculated according to Equation 3.

Equation 3
𝑣𝑣𝑣𝑣𝑣𝑣𝑣𝑣 𝑜𝑜𝑜𝑜 𝑙𝑙 𝑙𝑙𝑙𝑙 𝑐𝑐 𝑜𝑜 𝑏𝑏 = �(𝐴𝐴 𝑐𝑐 𝑜𝑜 𝑏𝑏 )𝑡𝑡
(1 + )𝑡𝑡
𝑛𝑛
𝑡𝑡=0
Where:

1. n = analysis term in years

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

3. Analysis term of 30 years

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

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

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

For cases with onsite generation (i.e. solar photovoltaics (PV)), the approved NBT tariffs were applied along with monthly service fees and hourly export compensation rates for 2024.7 In December 2022, the California Public Utilities Commission (CPUC) issued a decision adopting NBT as a successor to NEM 2.0 that went into effect April of 20238.

Utility rates are assumed to escalate over time according to the assumptions from the CPUC 2021 En Banc hearings on utility costs through 2030 (California Public Utilities Commission, 2021a). Escalation rates through the remainder of the 30-year evaluation period are based on the escalation rate assumptions within the 2022 TDV factors. The Statewide Natural Gas Residential Average Rate for 2023 through 2030 is projected to be 4.6%. The Electric Residential Average Rate for PG&E, SCE and SDG&E for 2023 through 2030 is projected to be 1.8%,1.6% and 2.8% respectively. A second set of escalation rates were also evaluated to demonstrate the impact that utility cost changes have on cost-effectiveness over time. This utility rate escalation sensitivity analysis, presented in Section 3.2.4, was based on those used within the 2025 LSC factors (LSC replaces TDV in the 2025 code cycle) which assumed steep 7 Hourly export compensation rates were based on the NBT spreadsheet model created by E3 for the CPUC. https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/energy-division/documents/net-energy-meteringnem/nemrevisit/nbt-model--12142022.xlsb 8 https://www.cpuc.ca.gov/nemrevisit

1.23 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 12 Methodology and Assumptions
California Energy Codes & Standards | A statewide utility program 2024-04-25 increases in gas rates in the latter half of the analysis period. See Appendix 6.2.7 Fuel Escalation Assumptions for details.

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

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

The collected cost data was intended to represent recent costs for a “typical” retrofit installation. Each home in which a contractor does work has different site-specific issues that will likely affect costs. In addition, different jurisdictions have different levels of building department installation oversight and permit fees. Finally, each contractor typically has a different manufacturer product line they prefer to install. All these factors will influence installed costs11.

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

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

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

1.24 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 13 Methodology and Assumptions
California Energy Codes & Standards | A statewide utility program 2024-04-25 include equipment, labor, permit fees, and required HERS testing. Additional details of the measures can be found in Appendix Section Error! Reference source not found..

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

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

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

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

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

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

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

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

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

0.28 Btu/hour-ft2-°F or lower and a Solar Heat Gain Coefficient (SHGC) equal to 0.23 or lower, except in heating dominated climates (Climate Zones 1, 3, 5, and 16) where an SHGC of 0.35 was evaluated.

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

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

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

1.25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 14 Methodology and Assumptions
California Energy Codes & Standards | A statewide utility program 2024-04-25 Table 3 summarizes the cost assumptions for the building envelope and HVAC duct improvement measures evaluated.

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

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

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

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

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

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

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

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

1.26 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 15 Methodology and Assumptions
California Energy Codes & Standards | A statewide utility program 2024-04-25 $0.31/WDC present value. These costs do not include costs associated with electrical panel upgrades, which will be necessary in some instances.

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

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

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

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

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

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

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

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

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

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

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

1.27 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 16 Methodology and Assumptions
California Energy Codes & Standards | A statewide utility program 2024-04-25 evaluated using CBECC-Res’ detailed VCHP model12 by simulating the performance of a representative high efficiency product (14.3 SEER2, 11.7 EER2, 7.5 HSPF2). Savings are compared to a new natural gas wall furnace with fan distribution (75% AFUE) and window AC (9 CEER).

Over the 30-year analysis period, certain changes are assumed when the equipment is replaced that impact both lifetime costs and energy use. Table 5 presents the lifetime scenario for the DFHP (existing furnace) measure. The analysis assumed a 20-year effective useful lifetime (EUL) for a furnace, a 15-year EUL for an air conditioner and a 15- year EUL for a heat pump. Lifetimes are based on the Database for Energy Efficient Resources (DEER) (California Public Utilities Commission, 2021b). The existing furnace is assumed to be halfway through its EUL at the beginning of the analysis period. After 10 years when the furnace reaches the end of its life and needs to be replaced, it will be subject to new federal efficiency standards for residential gas furnaces that go into effect in 2028 requiring 95 AFUE13. 5 years later the air conditioner reaches the end of its life and is replaced with a new air conditioner.

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

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

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

1.28 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 17 Methodology and Assumptions
California Energy Codes & Standards | A statewide utility program 2024-04-25 Table 6. System Sizing by Climate Zone
Climate
Zone
Air Conditioner
Capacity (tons)
Heat Pump
Capacity (tons)
1 1.5 3.0
2 3.5 3.5
3 2.5 2.5
4 3.5 3.5
5 3.0 3.0
6 3.0 3.0
7 3.0 3.0
8 4.0 4.0
9 4.0 4.0
10 4.0 4.0
11 4.5 4.5
12 4.0 4.0
13 4.5 4.5
14 4.0 4.0
15 5.0 5.0
16 3.5 4.0
Table 7 presents estimated first and lifetime costs for the various ducted baseline and heat pump scenarios for 4-ton equipment. Costs include all material and installation labor including providing new 240 V electrical service to the air handler location for all new air handler installations and decommissioning of the furnace for the cases where the furnace is removed. DFHP costs incorporate controls installation and commissioning to ensure the heat pump and the furnace communicate properly and don’t operate at the same time. Future replacement costs do not include any initial costs associated with 240V electrical service or furnace decommissioning.

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

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

1.29 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 18 Methodology and Assumptions
California Energy Codes & Standards | A statewide utility program 2024-04-25 Table 7. Ducted HVAC Measure Cost Assumptions – 4-Ton Electric Replacements Case AC + Coil
Gas
Furnace
/AC
DFHP
(Existing
Furnace)
DFHP (New
Furnace)
Min. Eff.

Heat Pump
High Eff.

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

Ductless
MSHP
High Eff.

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

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

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

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

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

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

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

1.30 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 19 Methodology and Assumptions
California Energy Codes & Standards | A statewide utility program 2024-04-25 The four cases above were evaluated with the HPWH located within an attached garage. Additionally, three separate cases for the federal minimum efficiency HPWH were analyzed to consider the impacts of location on performance and cost-effectiveness. These locations included the following:

1. Exterior closet.

2. Interior closet, no ducting.

3. Interior closet, ducted to the outside.

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

For this analysis, a HPWH that just meets the federal minimum efficiency standards of close to 2.0 Uniform Energy Factor (UEF) was evaluated in order to satisfy preemption requirements. However, the Reach Codes Team is not aware of any 2.0 UEF products that are available on the market. The lowest UEF reported for certified products in the Northwest Energy Efficiency Alliance (NEEA)16 database is 2.73. In fact, of the four certification tiers offered by NEEA for high efficiency HPWHs, those meeting Tier 3 or Tier 4 are the dominant products on the market today. According to NEEA all major HPWH manufacturers are represented in NEEA’s qualified product list17 and there are fewer than 10 integrated products certified as Tier 1 or Tier 2, all of which have UEFs greater than 3.0.18 Therefore, in this analysis, we refer to the NEEA rated HPWH as the “market standard” HPWH.

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

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

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

Min.

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

Min.

HPWH,
Exterior
Closet
240V Fed.

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

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

1.31 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 20 Methodology and Assumptions
California Energy Codes & Standards | A statewide utility program 2024-04-25 Table 10 presents similar costs to Table 9, except that the costs assume replacement of an existing 50-gallon electric storage water heater and does not include the 240 V electrical service cost.

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

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

Min.

HPWH,
Exterior
Closet
240V Fed.

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

Min. HPWH,
Interior
Closet,
Ducted
First Cost $2,583 $6,413 $7,274 $7,274 $5,101 $6,413 $6,413 $7,492 Replacement Cost
(Future Value)
$2,583 $6,413 $7,274 $7,274 $5,101 $6,413 $6,413 $6,413 Replacement Cost
(Present Value)
$1,658 $4,116 $4,669 $4,669 $3,274 $4,116 $4,116 $4,116 Total Lifecycle Cost $4,241 $10,529 $11,943 $11,943 $8,375 $10,529 $10,529 $11,608 Incremental Cost - $6,288 $7,702 $7,702 $4,134 $6,288 $6,288 $7,367

1.32 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 21 Results
California Energy Codes & Standards | A statewide utility program 2024-04-25 3 Results
The primary objective of the evaluation is to identify cost-effective energy upgrade measures and packages for existing single family buildings, to support the design of local ordinances requiring upgrades, which may be triggered by different events, such as at the time of a significant remodel or at burnout of mechanical equipment. In this report, the 1992-2010 vintage is shown for the equipment measures because it is the most conservative case (lowest loads), while the pre-1978 vintage is shown for the envelope and duct measures because some of those measures only apply to the pre-1978 vintage. A full dataset of all results can be downloaded at https://localenergycodes.com/content/resources.

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

1.33 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 22 Results
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

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

Figure 1: DFHP with Existing Furnace Figure 2: Standard Efficiency HPSH

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

1.35 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 24 Results
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

1.36 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 25 Results
California Energy Codes & Standards | A statewide utility program 2024-04-25 • Envelope and Duct Measures
Figure 10 through Figure 13 show the cost-effectiveness results of envelope and duct measures for the pre-1978 vintage including the following measures. The pre-1978 vintage is presented as representing the most favorable existing conditions for cost-effective upgrades. Newer homes with higher performing envelope may still benefit from these types of upgrade measures, but cost-effectiveness is reduced. Some measures, like R-13 wall insulation, aren’t applicable to newer homes which would have been constructed originally with insulated walls. • New R-6 ducts
• 10% duct leakage
• R-13 wall insulation
• R-49 attic insulation
Figure 10: R-6 Ducts Figure 11: 10% Duct Leakage
Figure 12: R-13 Wall Insulation Figure 13: R-49 Attic Insulation

1.37 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 26 Results
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

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

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

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

1.38 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 27 Results
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

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

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

1.39 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 28 Results
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

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

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

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

1.40 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 29 Results
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

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

1.41 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 30 Results
California Energy Codes & Standards | A statewide utility program 2024-04-25

3.3 Gas Pathways for Heat Pump Replacements
Many jurisdictions are exploring policy options to accelerate the decarbonization of existing homes. A recent Ninth Circuit Court ruling in California Rest. Ass'n v. City of Berkeley20 invalidated Berkeley’s ordinance banning the installation of gas infrastructure in new construction. The ruling stated that the ordinance effectively banned covered products and was preempted by the Energy Policy and Conservation Act (“EPCA”), 42 U.S.C. § 6297(c). Given the possible impacts of that ruling, the Reach Codes Team analyzed policy options targeting equipment replacements that allow for the installation of either electric or gas-fueled equipment. These packages include gas equipment combined with additional efficiency measures resulting in options that are reasonably energy or LSC cost equivalent, to the extent feasible.

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

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

1.42 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 31 Results
California Energy Codes & Standards | A statewide utility program 2024-04-25 Figure 14. Heat pump space heater path compared to the air conditioner path.

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

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

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

1.43 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 32 Recommendations and Discussion
California Energy Codes & Standards | A statewide utility program 2024-04-25 4 Recommendations and Discussion
This analysis evaluated the feasibility and cost-effectiveness of retrofit measures in California existing homes built before 2010. The Statewide Reach Codes Team used both On-Bill and LSC-based LCC approaches to evaluate costeffectiveness and quantify the energy cost savings associated with energy efficiency measures compared to the incremental costs associated with the measures.

Conclusions and Discussion:

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

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

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

1.44 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 33 Recommendations and Discussion
California Energy Codes & Standards | A statewide utility program 2024-04-25 directly condition all habitable spaces (as is required under the VCHP compliance credit as evaluated in this study) which may be an incentive for a homeowner to upgrade their system. c. Higher efficiency equipment lowered utility costs in all cases and improved cost-effectiveness in many cases, particularly with a ducted MSHP.

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

5. The contractor surveys revealed overall higher heat pump costs than what has been found in previous analyses. This could be due to incentive availability raising demand for heat pumps and thereby increasing the price. This price increase may be temporary and may come down once the market stabilizes. There are also new initiatives to obtain current costs including the TECH Clean California program21 that publishes heat pump data and costs; however, at the time of this analysis, the TECH data did not contain incremental costs because it only had the heat pump costs but not the gas base case costs.

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

1.45 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 34 Recommendations and Discussion
California Energy Codes & Standards | A statewide utility program 2024-04-25 While the anticipated impact of this rate change is lower volumetric electricity rates, the rate design is not finalized. While lower volumetric electricity rates provide many benefits, it also will make building efficiency measures harder to justify as cost-effective due to lower utility bill cost savings.

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

Recommendations:

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

1.46 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 35 Recommendations and Discussion
California Energy Codes & Standards | A statewide utility program 2024-04-25 b. Requirement for HERS verified refrigerant charge verification for heat pumps in all climate zones (Table 150.1-A24).

5. Education and training can play a critical role in ensuring that heat pumps are installed, commissioned, and controlled properly to mitigate grid impacts and maximize occupant satisfaction. Below are select recommended strategies.
a. The Quality Residential HVAC Services Program25 is an incentive program to train California contractors in providing quality installation and maintenance while advancing energy-efficient technologies in the residential HVAC industry. Jurisdictions can market this to local contractors to increase the penetration of contractors skilled in heat pump design and installation. b. Educate residents and contractors of available incentives, tax credits, and financing opportunities. c. Educate contractors on code requirements. Energy Code Ace provides free tools, trainings, and resource to help Californians comply with the energy code. Contractors can access interactive compliance forms, fact sheets, and live and recorded trainings, among other things, on the website:
https://energycodeace.com/. Jurisdictions can reach out to Energy Code Ace directly to discuss offerings.

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

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

1.47 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 36 References
California Energy Codes & Standards | A statewide utility program 2024-04-25 5 References
California Energy Commission. (2017). Rooftop Solar PV System. Measure number: 2019-Res-PV-D Prepared by Energy and Environmental Economics, Inc. Retrieved from https://efiling.energy.ca.gov/getdocument.aspx?tn=221366 California Energy Commission. (2021b). Final Express Terms for the Proposed Revisions to the 2022 Energy Code Reference Appendices. Retrieved from https://efiling.energy.ca.gov/Lists/DocketLog.aspx?docketnumber=21- BSTD-01
California Energy Commission. (2022b). 2022 Reference Appendices for the 202 Building Energy Efficiency Standards.

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

1.48 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 37 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25 6 Appendices

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

1.49 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 38 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

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

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

1.50 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 39 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

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

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

Table 21. PG&E Monthly Gas Rate ($/therm)
Month Total Charge
Baseline Excess
January $2.05 $2.43
February $2.08 $2.46
March $1.92 $2.31
April $1.80 $2.20
May $1.77 $2.18
June $1.78 $2.18
July $1.80 $2.20
August $1.85 $2.26
September $1.92 $2.33
October $1.99 $2.40
November $2.06 $2.46
December $2.05 $2.44

1.51 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 40 Appendices
California Energy Codes & Standards 1.52 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 41 Appendices
California Energy Codes & Standards 1.53 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 42 Appendices
California Energy Codes & Standards 1.54 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 43 Appendices
California Energy Codes & Standards 1.55 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 44 Appendices
California Energy Codes & Standards 1.56 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 45 Appendices
California Energy Codes & Standards 1.57 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 46 Appendices
California Energy Codes & Standards 1.58 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 47 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

1.59 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 48 Appendices
California Energy Codes & Standards 1.60 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 49 Appendices
California Energy Codes & Standards 1.61 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 50 Appendices
California Energy Codes & Standards 1.62 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 51 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

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

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

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

1.63 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 52 Appendices
California Energy Codes & Standards 1.64 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 53 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

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

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

Table 26. SDG&E Monthly Gas Rate ($/therm)
Month Total Charge
Baseline Excess
January $2.34 $2.63
February $2.28 $2.57
March $2.21 $2.51
April $2.14 $2.45
May $2.18 $2.48
June $2.23 $2.55
July $2.26 $2.57
August $2.32 $2.62
September $2.26 $2.59
October $2.21 $2.55
November $2.24 $2.57
December $2.38 $2.70

1.65 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 54 Appendices
California Energy Codes & Standards 1.66 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 55 Appendices
California Energy Codes & Standards 1.67 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 56 Appendices
California Energy Codes & Standards 1.68 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 57 Appendices
California Energy Codes & Standards 1.69 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 58 Appendices
California Energy Codes & Standards 1.70 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 59 Appendices
California Energy Codes & Standards 1.71 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 60 Appendices
California Energy Codes & Standards 1.72 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 61 Appendices
California Energy Codes & Standards 1.73 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 62 Appendices
California Energy Codes & Standards 1.74 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 63 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

Table 27. CPAU Monthly Gas Rate ($/therm)
Month G1 Volumetric
Total Baseline
G1 Volumetric
Total Excess
January $1.83532 $3.35639
February $1.38055 $2.59947
March $1.32506 $2.47695
April $1.29680 $2.44038
May $1.29511 $2.43804
June $1.32034 $2.45406
July $1.35688 $2.61519
August $1.40696 $2.67944
September $1.42130 $2.70301
October $1.42310 $2.48300
November $1.46286 $2.45547
December $1.62415 $2.62128

1.75 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 64 Appendices
California Energy Codes & Standards 1.76 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 65 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

1.77 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 66 Appendices
California Energy Codes & Standards 1.78 | A statewide utility program 2024-04-25 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 67 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

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

Table 28: Real Utility Rate Escalation Rate Assumptions, CPUC En Banc and 2022 TDV Basis
28https://www.energy.ca.gov/files/2025-energy-code-hourly-factors. Actual escalation factors were provided by consultants E3.

Statewide Natural
Gas Residential
Average Rate
(%/year, real)
Electric Residential Average Rate
(%/year, real)

PG&E SCE SDG&E
2024 4.6% 1.8% 1.6% 2.8%
2025 4.6% 1.8% 1.6% 2.8%
2026 4.6% 1.8% 1.6% 2.8%
2027 4.6% 1.8% 1.6% 2.8%
2028 4.6% 1.8% 1.6% 2.8%
2029 4.6% 1.8% 1.6% 2.8%
2030 4.6% 1.8% 1.6% 2.8%
2031 2.0% 0.6% 0.6% 0.6%
2032 2.4% 0.6% 0.6% 0.6%
2033 2.1% 0.6% 0.6% 0.6%
2034 1.9% 0.6% 0.6% 0.6%
2035 1.9% 0.6% 0.6% 0.6%
2036 1.8% 0.6% 0.6% 0.6%
2037 1.7% 0.6% 0.6% 0.6%
2038 1.6% 0.6% 0.6% 0.6%
2039 2.1% 0.6% 0.6% 0.6%
2040 1.6% 0.6% 0.6% 0.6%
2041 2.2% 0.6% 0.6% 0.6%
2042 2.2% 0.6% 0.6% 0.6%
2043 2.3% 0.6% 0.6% 0.6%
2044 2.4% 0.6% 0.6% 0.6%
2045 2.5% 0.6% 0.6% 0.6%
2046 1.5% 0.6% 0.6% 0.6%
2047 1.3% 0.6% 0.6% 0.6%
2048 1.6% 0.6% 0.6% 0.6%
2049 1.3% 0.6% 0.6% 0.6%
2050 1.5% 0.6% 0.6% 0.6%
2051 1.8% 0.6% 0.6% 0.6%
2052 1.8% 0.6% 0.6% 0.6%
2053 1.8% 0.6% 0.6% 0.6%

1.79 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 68 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25 Table 29: Real Utility Rate Escalation Rate Assumptions, 2025 LSC Basis Year
Statewide Natural
Gas Residential
Average Rate
(%/year, real)
Statewide
Electricity
Residential
Average Rate
(%/year, real)
2024 4.6% 2.1%
2025 4.6% 2.1%
2026 4.6% 2.1%
2027 4.2% 0.6%
2028 3.2% 1.9%
2029 3.6% 1.6%
2030 6.6% 1.3%
2031 6.7% 1.0%
2032 7.7% 1.2%
2033 8.2% 1.1%
2034 8.2% 1.1%
2035 8.2% 0.9%
2036 8.2% 1.1%
2037 8.2% 1.1%
2038 8.2% 1.0%
2039 8.2% 1.1%
2040 8.2% 1.1%
2041 8.2% 1.1%
2042 8.2% 1.1%
2043 8.2% 1.1%
2044 8.2% 1.1%
2045 8.2% 1.1%
2046 8.2% 1.1%
2047 3.1% 1.1%
2048 -0.5% 1.1%
2049 -0.6% 1.1%
2050 -0.5% 1.1%
2051 -0.6% 1.1%
2052 -0.6% 1.1%
2053 -0.6% 1.1%

1.80 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 69 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25 Get In Touch
The adoption of reach codes can differentiate jurisdictions as efficiency leaders and help accelerate the adoption of new equipment, technologies, code compliance, and energy savings strategies.

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

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

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

Visit LocalEnergyCodes.com to
access our resources and sign up
for newsletters.

Contact [email protected]
for no-charge assistance from expert
Reach Code advisors
Follow us on LinkedIn

1.81 Cost-Effectiveness Analysis: Existing Single Family Building Upgrades 70 Appendices
California Energy Codes & Standards | A statewide utility program 2024-04-25

1.82 Prepared by:

Frontier Energy, Inc.

Misti Bruceri & Associates, LLC
Prepared for:

Kelly Cunningham
Codes and Standards Program
Pacific Gas and Electric Company
Last modified: 2022/03/07
Revision: 1.0
2019 Cost - Effectiveness Study :

Existing Multifamily Residential
Building Upgrades

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

Acronym List
ACH50 – Air Changes per Hour at 50 pascals pressure differential AC – Air Conditioner
ACM – Alternative Calculation Method
AFUE – Annual Fuel Utilization Efficiency
A – Ampere
B/C – Benefits–to-Cost; as in Lifecycle Benefit–to–Cost Ratio BSC –– Building Standards Commission
Btu – British thermal units
CALGreen – Title 24, Part 11
CASE – Codes and Standards Enhancement
CBECC–Res – California Building Energy Code Compliance – Residential: Computer program developed by the California Energy Commission for use in demonstrating compliance with the California Residential Building Energy Efficiency Standards
CFI – California Flexible Installation
CFL – Compact Fluorescent Lamp
CO2e – Carbon Dioxide (CO2)–equivalent
CPAU – City of Palo Alto Utilities
CPUC – California Public Utilities Commission
CRRC – Cool Roof Rating Council
CZ – Climate Zone
DHW – Domestic Hot Water
E3 – Energy and Environmental Economics
EDR – Energy Design Rating
EER – Energy Efficiency Ratio
ft2 – Square foot
GHG – Greenhouse Gas

1.84 Cost-Effectiveness Analysis: Existing Multifamily Residential Building Upgrades GRC – General Rate Case
gpm – Gallons per minute
HERS Rater – Home Energy Rating System Rater
HPWH – Heat Pump Water Heater
HSPF – Heating Seasonal Performance Factor
HVAC – Heating, Ventilation, and Air Conditioning
IC – Insulation Contact
IOU – Investor–Owned Utility
ITC – Income Tax Credit (federal)
kWh – Kilowatt Hour
kWDC – Kilowatt Direct Current; nominal rated power of a photovoltaic system
lb(s) – Pound(s)
LCC – Lifecycle Cost
LED – Light–Emitting Diode
MF – Multifamily
NEEA – Northwest Energy Efficiency Alliance
NEM – Net Energy Metering
NPV – Net Present Value
PG&E – Pacific Gas & Electric (utility)
PV – Solar Photovoltaic
SCE – Southern California Edison (utility)
SDG&E – San Diego Gas & Electric (utility)
SEER – Seasonal Energy Efficiency Ratio
SHGC – Solar Heat Gain Coefficient
SMUD – Sacramento Municipal Utility District
TDV – Time Dependent Valuation
therm – Unit for quantity of heat that equals 100,000 Btu Title 24 – California Code of Regulations Title 24
TOU – Time-of-Use
V – Volt
VNEM – Virtual Net Energy Metering
W – Watt
WDC – Watt Direct Current

1.85 Cost-Effectiveness Analysis: Existing Multifamily Residential Building Upgrades Summary of Revisions
Date Description Reference (page or section)
03/07/2022 Original Release NA

1.86 Cost-Effectiveness Analysis: Existing Multifamily Residential Building Upgrades

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

2.1 Building Prototypes ............................................................................................................................................................... 2

2.2 Efficiency Measures.............................................................................................................................................................. 5

2.2.1 Building Envelope/Non-Preempted Measures .............................................................................................................. 5

2.2.2 Photovoltaics (PV) and Battery Measures..................................................................................................................... 7

2.2.3 Equipment Fuel Substitution Measures – Heat Pump Replacements........................................................................... 7

2.3 Efficiency Packages.............................................................................................................................................................. 9

2.3.1 Envelope and Duct Packages....................................................................................................................................... 9

2.3.2 Additional Packages ................................................................................................................................................... 10

2.4 Measure Cost...................................................................................................................................................................... 10

2.4.1 Building Envelope/Non-Preempted Measures ............................................................................................................ 10

2.4.2 PV and Battery Measures ........................................................................................................................................... 11

2.4.3 Equipment Fuel Substitution Measures – Heat Pump Equipment............................................................................... 14

2.5 Cost Effectiveness .............................................................................................................................................................. 16

2.5.1 On-Bill LCC................................................................................................................................................................. 17

2.5.2 TDV LCC..................................................................................................................................................................... 18

2.6 Greenhouse Gas (GHG) Emissions Reductions................................................................................................................. 19 3 Results......................................................................................................................................................................20

3.1 Building Envelope/Non-Preempted Measures .................................................................................................................... 20

3.2 Envelope and Duct Packages............................................................................................................................................. 24

3.3 Water Heating and Lighting Measures/Packages ............................................................................................................... 24

3.4 PV and Batteries................................................................................................................................................................. 27

3.5 Equipment Fuel Substitution Measures .............................................................................................................................. 30

3.6 TOU, Tiered, and CARE Tariff Comparison........................................................................................................................ 40 4 Recommendations and Discussions.....................................................................................................................49

4.1 Recommended Efficiency Measures................................................................................................................................... 49

4.2 Fuel Substitution Measures ................................................................................................................................................ 52

4.3 Other Considerations .......................................................................................................................................................... 54 5 References ...............................................................................................................................................................56 6 Appendices ..............................................................................................................................................................58

6.1 Appendix A: Map of California Climate Zones .................................................................................................................... 58

6.2 Appendix B: Utility Rate Schedules..................................................................................................................................... 59

6.2.1 PG&E .......................................................................................................................................................................... 59

6.2.2 SCE ............................................................................................................................................................................ 66

6.2.3 SoCalGas.................................................................................................................................................................... 70

6.2.4 SDG&E ....................................................................................................................................................................... 72

6.2.5 SMUD ......................................................................................................................................................................... 78

6.2.6 CPAU .......................................................................................................................................................................... 79

6.2.7 Escalation Assumptions.............................................................................................................................................. 81

6.3 Appendix C: Standards Sections ........................................................................................................................................ 82

6.4 Appendix D: Cost-Effectiveness Detail by Climate Zone .................................................................................................... 83

6.4.1 Climate Zone 1:........................................................................................................................................................... 84

1.87 Cost-Effectiveness Analysis: Existing Multifamily Residential Building Upgrades

6.4.2 Climate Zone 2:........................................................................................................................................................... 88

6.4.3 Climate Zone 3:........................................................................................................................................................... 92 Climate Zone 4 PG&E: ............................................................................................................................................................... 96

6.4.4 Climate Zone 4 CPAU:.............................................................................................................................................. 100

6.4.5 Climate Zone 5 (PG&E): ........................................................................................................................................... 104

6.4.6 Climate Zone 5 (PG&E/SoCalGas):.......................................................................................................................... 108

6.4.7 Climate Zone 6:......................................................................................................................................................... 112

6.4.8 Climate Zone 7:......................................................................................................................................................... 116

6.4.9 Climate Zone 8:......................................................................................................................................................... 120

6.4.10 Climate Zone 9:......................................................................................................................................................... 124

6.4.11 Climate Zone 10 (SCE/SoCalGas):........................................................................................................................... 128

6.4.12 Climate Zone 10 (SDG&E):....................................................................................................................................... 132

6.4.13 Climate Zone 11:....................................................................................................................................................... 136

6.4.14 Climate Zone 12 (PG&E): ......................................................................................................................................... 140

6.4.15 Climate Zone 12 (SMUD):......................................................................................................................................... 144

6.4.16 Climate Zone 13:....................................................................................................................................................... 148

6.4.17 Climate Zone 14 (SCE/SoCalGas):........................................................................................................................... 152

6.4.18 Climate Zone 14 (SDG&E):....................................................................................................................................... 156

6.4.19 Climate Zone 15:....................................................................................................................................................... 160

6.4.20 Climate Zone 16:....................................................................................................................................................... 164

1.88 Cost-Effectiveness Analysis: Existing Multifamily Residential Building Upgrades

LIST OF TABLES
Table 1: Prototype Characteristics........................................................................................................................................................ 3 Table 2: Efficiency Characteristics for Three Vintage Cases ................................................................................................................ 4 Table 3: Multifamily PV Sizing for 6,960 ft2 building by Climate Zone (kWDC) ....................................................................................... 7 Table 4: High Efficiency Heat Pump Capacity per Floor....................................................................................................................... 8 Table 5: Measure Descriptions & Cost Assumptions - Non-Preempted Measuresa............................................................................ 12 Table 6: Measure Descriptions & Cost Assumptions – PV and Batteriesa .......................................................................................... 13 Table 7: HVAC Measure Cost Assumptions – Electric Replacements................................................................................................ 14 Table 8: Water Heating Measure Cost Assumptions – Electric Replacements................................................................................... 15 Table 9: Electric Ready Measure Cost Assumptions .......................................................................................................................... 16 Table 10: Utility Tariffs Applied Based on Climate Zone..................................................................................................................... 17 Table 11: IOU Tiered Tariffs Applied Based on Climate Zone ............................................................................................................ 18 Table 12: Results Table Legend......................................................................................................................................................... 20 Table 13: Summary of Multifamily Efficiency Measures – On-Bill & 2019 TDV................................................................................... 22 Table 14: Summary of Multifamily Efficiency Packages – On-Bill & 2019 TDV................................................................................... 25 Table 15: Summary of Multifamily PV & Batteries – On-Bill & 2019 TDV ........................................................................................... 29 Table 16: Summary of Multifamily Equipment Fuel Substitution– On-Bill & TDV – Federal Minimum Efficiency................................ 36 Table 17: Summary of Multifamily Equipment Fuel Substitution + PV – On-Bill & TDV – Federal Minimum Efficiency ...................... 37 Table 18: Summary of Multifamily Electric Ready Measures at PV Install – On-Bill & 2019 TDV....................................................... 39 Table 19: PG&E Baseline Territory by Climate Zone.......................................................................................................................... 59 Table 20: PG&E Monthly Gas Rate ($/therm)..................................................................................................................................... 59 Table 21: PG&E Monthly CARE (GL-1) Gas Rate ($/therm)............................................................................................................... 60 Table 22: SCE Baseline Territory by Climate Zone ............................................................................................................................ 66 Table 23: SoCalGas Baseline Territory by Climate Zone ................................................................................................................... 70 Table 24: SoCalGas Monthly Gas Rate ($/therm) .............................................................................................................................. 70 Table 25: SDG&E Baseline Territory by Climate Zone ....................................................................................................................... 72 Table 26: SDG&E Monthly Gas Rate ($/therm).................................................................................................................................. 72 Table 27: CPAU Monthly Gas Rate ($/therm)..................................................................................................................................... 79 Table 28: Real Utility Rate Escalation Rate Assumptions................................................................................................................... 81 Table 29: CZ 1 - Multifamily Efficiency Upgrade Cost-Effectiveness Results ..................................................................................... 84 Table 30: CZ 1 - Multifamily Efficiency Packages Cost-Effectiveness Results ................................................................................... 85 Table 31: CZ 1 - Multifamily PV & Battery Cost-Effectiveness Results............................................................................................... 86

1.89 Cost-Effectiveness Analysis: Existing Multifamily Residential Building Upgrades Table 32: CZ 1 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results....................................................................... 87 Table 33: CZ 2 - Multifamily Efficiency Upgrade Cost-Effectiveness Results ..................................................................................... 88 Table 34: CZ 2 - Multifamily Efficiency Packages Cost-Effectiveness Results ................................................................................... 89 Table 35: CZ 2 - Multifamily PV & Battery Cost-Effectiveness Results............................................................................................... 90 Table 36: CZ 2 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results....................................................................... 91 Table 37: CZ 3 - Multifamily Efficiency Upgrade Cost-Effectiveness Results ..................................................................................... 92 Table 38: CZ 3 - Multifamily Efficiency Packages Cost-Effectiveness Results ................................................................................... 93 Table 39: CZ 3 - Multifamily PV & Battery Cost-Effectiveness Results............................................................................................... 94 Table 40: CZ 3 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results....................................................................... 95 Table 41: CZ 4 (PG&E) - Multifamily Efficiency Upgrade Cost-Effectiveness Results ........................................................................ 96 Table 42: CZ 4 (PG&E) - Multifamily Efficiency Packages Cost-Effectiveness Results ...................................................................... 97 Table 43: CZ 4 (PG&E) - Multifamily PV & Battery Cost-Effectiveness Results.................................................................................. 98 Table 44: CZ 4 (PG&E) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results ......................................................... 99 Table 45: CZ 4 (CPAU) - Multifamily Efficiency Upgrade Cost-Effectiveness Results ...................................................................... 100 Table 46: CZ 4 (CPAU) - Multifamily Efficiency Packages Cost-Effectiveness Results .................................................................... 101 Table 47: CZ 4 (CPAU) - Multifamily PV & Battery Cost-Effectiveness Results................................................................................ 102 Table 48: CZ 4 (CPAU) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results ....................................................... 103 Table 49: CZ 5 (PG&E) - Multifamily Efficiency Upgrade Cost-Effectiveness Results ...................................................................... 104 Table 50: CZ 5 (PG&E) - Multifamily Efficiency Packages Cost-Effectiveness Results .................................................................... 105 Table 51: CZ 5 (PG&E) - Multifamily PV & Battery Cost-Effectiveness Results................................................................................ 106 Table 52: CZ 5 (PG&E) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results ....................................................... 107 Table 53: CZ 5 (PG&E/SoCalGas) - Multifamily Efficiency Upgrade Cost-Effectiveness Results..................................................... 108 Table 54: CZ 5 (PG&E/SoCalGas) - Multifamily Efficiency Packages Cost-Effectiveness Results................................................... 109 Table 55: CZ 5 (PG&E/SoCalGas) - Multifamily PV & Battery Cost-Effectiveness Results .............................................................. 110 Table 56: CZ 5 (PG&E/SoCalGas) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results ...................................... 111 Table 57: CZ 6 - Multifamily Efficiency Upgrade Cost-Effectiveness Results ................................................................................... 112 Table 58: CZ 6 - Multifamily Efficiency Packages Cost-Effectiveness Results ................................................................................. 113 Table 59: CZ 6 - Multifamily PV & Battery Cost-Effectiveness Results............................................................................................. 114 Table 60: CZ 6 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results..................................................................... 115 Table 61: CZ 7 - Multifamily Efficiency Upgrade Cost-Effectiveness Results ................................................................................... 116 Table 62: CZ 7 - Multifamily Efficiency Packages Cost-Effectiveness Results ................................................................................. 117 Table 63: CZ 7 - Multifamily PV & Battery Cost-Effectiveness Results............................................................................................. 118

1.90 Cost-Effectiveness Analysis: Existing Multifamily Residential Building Upgrades Table 64: CZ 7 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results ..................................................................... 119 Table 65: CZ 8 - Multifamily Efficiency Upgrade Cost-Effectiveness Results ................................................................................... 120 Table 66: CZ 8 - Multifamily Efficiency Packages Cost-Effectiveness Results ................................................................................. 121 Table 67: CZ 8 - Multifamily PV & Battery Cost-Effectiveness Results............................................................................................. 122 Table 68: CZ 8 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results..................................................................... 123 Table 69: CZ 9 - Multifamily Efficiency Upgrade Cost-Effectiveness Results ................................................................................... 124 Table 70: CZ 9 - Multifamily Efficiency Packages Cost-Effectiveness Results ................................................................................. 125 Table 71: CZ 9 - Multifamily PV & Battery Cost-Effectiveness Results............................................................................................. 126 Table 72: CZ 9 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results..................................................................... 127 Table 73: CZ 10 (SCE/SoCalGas) - Multifamily Efficiency Upgrade Cost-Effectiveness Results ..................................................... 128 Table 74: CZ 10 (SCE/SoCalGas) - Multifamily Efficiency Packages Cost-Effectiveness Results ................................................... 129 Table 75: CZ 10 (SCE/SoCalGas) - Multifamily PV & Battery Cost-Effectiveness Results............................................................... 130 Table 76: CZ 10 (SCE/SoCalGas) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results....................................... 131 Table 77: CZ 10 (SDG&E) - Multifamily Efficiency Upgrade Cost-Effectiveness Results ................................................................. 132 Table 78: CZ 10 (SDG&E) - Multifamily Efficiency Packages Cost-Effectiveness Results ............................................................... 133 Table 79: CZ 10 (SDG&E) - Multifamily PV & Battery Cost-Effectiveness Results ........................................................................... 134 Table 80: CZ 10 (SDG&E) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results................................................... 135 Table 81: CZ 11 - Multifamily Efficiency Upgrade Cost-Effectiveness Results ................................................................................. 136 Table 82: CZ 11 - Multifamily Efficiency Packages Cost-Effectiveness Results ............................................................................... 137 Table 83: CZ 11 - Multifamily PV & Battery Cost-Effectiveness Results........................................................................................... 138 Table 84: CZ 11 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results................................................................... 139 Table 85: CZ 12 (PG&E) - Multifamily Efficiency Upgrade Cost-Effectiveness Results .................................................................... 140 Table 86: CZ 12 (PG&E) - Multifamily Efficiency Packages Cost-Effectiveness Results .................................................................. 141 Table 87: CZ 12 (PG&E) - Multifamily PV & Battery Cost-Effectiveness Results.............................................................................. 142 Table 88: CZ 12 (PG&E) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results ..................................................... 143 Table 89: CZ 12 (SMUD) - Multifamily Efficiency Upgrade Cost-Effectiveness Results ................................................................... 144 Table 90: CZ 12 (SMUD) - Multifamily Efficiency Packages Cost-Effectiveness Results ................................................................. 145 Table 91: CZ 12 (SMUD) - Multifamily PV & Battery Cost-Effectiveness Results............................................................................. 146 Table 92: CZ 12 (SMUD) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results..................................................... 147 Table 93: CZ 13 - Multifamily Efficiency Upgrade Cost-Effectiveness Results ................................................................................. 148 Table 94: CZ 13 - Multifamily Efficiency Packages Cost-Effectiveness Results ............................................................................... 149 Table 95: CZ 13 - Multifamily PV & Battery Cost-Effectiveness Results........................................................................................... 150

1.91 Cost-Effectiveness Analysis: Existing Multifamily Residential Building Upgrades Table 96: CZ 13 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results................................................................... 151 Table 97: CZ 14 (SCE/SoCalGas) - Multifamily Efficiency Upgrade Cost-Effectiveness Results ..................................................... 152 Table 98: CZ 14 (SCE/SoCalGas) - Multifamily Efficiency Packages Cost-Effectiveness Results ................................................... 153 Table 99: CZ 14 (SCE/SoCalGas) - Multifamily PV & Battery Cost-Effectiveness Results............................................................... 154 Table 100: CZ 14 (SCE/SoCalGas) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results..................................... 155 Table 101: CZ 14 (SDG&E) - Multifamily Efficiency Upgrade Cost-Effectiveness Results ............................................................... 156 Table 102: CZ 14 (SDG&E) - Multifamily Efficiency Packages Cost-Effectiveness Results ............................................................. 157 Table 103: CZ 14 (SDG&E) - Multifamily PV & Battery Cost-Effectiveness Results ......................................................................... 158 Table 104: CZ 14 (SDG&E) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results................................................. 159 Table 105: CZ 15 - Multifamily Efficiency Upgrade Cost-Effectiveness Results ............................................................................... 160 Table 106: CZ 15 - Multifamily Efficiency Packages Cost-Effectiveness Results ............................................................................. 161 Table 107: CZ 15 - Multifamily PV & Battery Cost-Effectiveness Results......................................................................................... 162 Table 108: CZ 15 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results................................................................. 163 Table 109: CZ 16 - Multifamily Efficiency Upgrade Cost-Effectiveness Results ............................................................................... 164 Table 110: CZ 16 - Multifamily Efficiency Packages Cost-Effectiveness Results ............................................................................. 165 Table 111: CZ 16 - Multifamily PV & Battery Cost-Effectiveness Results......................................................................................... 166 Table 112: CZ 16 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results................................................................. 167

LIST OF FIGURES
Figure 1: Net benefit - rooftop PV system sized to new construction standards (2-4 kW): 1978-1991. .............................................. 27 Figure 2: Net benefit - rooftop PV + 16 kWh battery: pre-1978........................................................................................................... 28 Figure 3: Net benefit - rooftop PV + 16 kWh battery: 1992-2010........................................................................................................ 28 Figure 4: Net benefit – minimum efficiency heat pump at HVAC replacement: 1978-1991. ............................................................... 30 Figure 5: Net benefit – high-efficiency heat pump at HVAC replacement: 1978-1991........................................................................ 31 Figure 6: Net benefit – min efficiency heat pump at HVAC replacement + PV: 1978-1991. ............................................................... 32 Figure 7: Net benefit – min efficiency heat pump at HVAC replacement + PV + panel upgrade: 1978-1991. .................................... 32 Figure 8: Net benefit – minimum efficiency HPWH at DHW replacement: 1978-1991........................................................................ 33 Figure 9: Net benefit – high-efficiency HPWH at DHW replacement: 1978-1991. .............................................................................. 34 Figure 10: Net benefit – min efficiency HPWH at DHW replacement + PV: 1978-1991...................................................................... 35 Figure 11: Net benefit – min efficiency HPWH at DHW replacement + PV + Panel Upgrade: 1978-1991.......................................... 35 Figure 12: Net benefit – PV and electric readiness: 1978-1991.......................................................................................................... 38 Figure 13: First year total utility costs after R-49 attic insulation upgrade........................................................................................... 41

1.92 Cost-Effectiveness Analysis: Existing Multifamily Residential Building Upgrades Figure 14: First year utility cost savings for adding R-49 attic insulation compared to existing R-11.................................................. 42 Figure 15: 30-year net present value for adding R-49 attic insulation compared to existing R-11. ..................................................... 42 Figure 16: First year annual utility cost after replacement of gas furnace with a split heat pump. ...................................................... 44 Figure 17: First year utility cost savings for a minimum efficiency heat pump compared to gas furnace and A/C. ............................. 45 Figure 18: 30-year net present value for a minimum efficiency heat pump compared to gas furnace and A/C. ................................. 45 Figure 19: First year annual utility cost after installation of a PV system. ........................................................................................... 47 Figure 20: First year utility cost savings for a PV system.................................................................................................................... 48 Figure 21: 30-year net present value for a PV system........................................................................................................................ 48 Figure 22: Map of California Climate Zones........................................................................................................................................ 58

1.93 1.94
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 1 Introduction
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 1 Introduction
The California Codes and Standards Reach Codes program provides technical support to local governments considering adopting a local ordinance (reach code) intended to support meeting local and/or statewide energy and greenhouse gas reduction goals. The program facilitates adoption and implementation of the code when requested by local jurisdictions by providing resources such as cost effectiveness studies, model language, sample findings, and other supporting documentation. Local jurisdictions that are considering adopting ordinances may contact the program for support through its website, LocalEnergyCodes.com.

This report documents cost-effective combinations of measures that exceed the minimum state requirements, both the current 2019 Building Energy Efficiency Standards, effective January 1, 2020, and the upcoming 2022 Building Energy Efficiency Standards, effective January 1, 2023. Local jurisdictions in California may consider adopting local energy ordinances to achieve energy savings beyond what will be accomplished by enforcing building efficiency requirements that apply statewide. This report was developed in coordination with the California Statewide Investor-Owned Utilities (IOUs) Codes and Standards Program, key consultants, and engaged cities—collectively known as the Statewide Reach Code Team.

The focus of this study is on existing multifamily buildings and expands on a similar analysis completed for single family buildings (Statewide Reach Code Team, 2021). Each jurisdiction must establish the appropriate structure and threshold for triggering existing building reach code requirements. Some common structures include triggering the requirements at major remodels, additions, or date-certain (upgrades must be completed by a specific date). Some of these measures could be triggered with a permit for another specific measure, such as a roof replacement. The analysis includes scenarios of individual measures, as well as package upgrades, and identifies cost-effective options based on the existing conditions of buildings in all 16 California Climate Zones (CZs) (see Appendix A: Map of California Climate Zones for a graphical depiction of climate zone locations).

The California Building Energy Efficiency Standards, or Title 24, Part 6 (California Energy Commission, 2018) is maintained and updated every three years by two state agencies: the California Energy Commission (Energy Commission) and the Building Standards Commission (BSC). In addition to enforcing the code, local jurisdictions have the authority to adopt local energy efficiency ordinances—or reach codes—that exceed the minimum standards defined by Title 24, Part 6 (as established by Public Resources Code Section 25402.1(h)2 and Section 10-106 of the Building Energy Efficiency Standards). Local jurisdictions must demonstrate that the requirements of the proposed ordinance are cost-effective and result in buildings consuming less energy than is permitted by Title 24, Part 6. In addition, the jurisdiction must obtain approval from the Energy Commission and file the ordinance with the BSC for the ordinance to be legally enforceable.

This analysis does not evaluate the impact of retrofit measures on Title 24, Part 6 compliance margins, as the proposed measures are required in addition to achieving compliance with all codes.

1.95 Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 2 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 2 Methodology and Assumptions
This analysis uses two different metrics to assess cost effectiveness of the proposed upgrades. Both methodologies require estimating and quantifying the incremental costs and energy savings associated with each energy efficiency measure. The main difference between the methodologies is the manner in which they value energy and thus the cost savings of reduced or avoided energy use:
• Utility Bill Impacts (On-Bill): Customer-based Lifecycle Cost (LCC) approach that values energy based upon estimated site energy usage and customer On-Bill savings using electricity and natural gas utility rate schedules over a 30-year duration accounting for discount rate and energy cost inflation. • Time Dependent Valuation (TDV): Energy Commission LCC methodology, which is intended to capture the total value or cost of energy use including long-term projected costs, such as the cost of providing energy during peak periods of demand and other societal costs, such as projected costs for carbon emissions, as well as grid transmission and distribution impacts. This metric values energy use differently depending on the fuel source (natural gas, electricity, and propane), time of day, and season. Electricity used (or saved) during peak periods has a much higher value than electricity used (or saved) during off-peak periods (Horii, Cutter, Kapur, Arent, & Conotyannis, 2014). This is the methodology used by the Energy Commission in evaluating cost effectiveness for efficiency measures in Title 24, Part 6. TDV multipliers used in both the 2019 and 2022 Title 24, Part 6 code are evaluated and documented in this analysis.

The general approach applied in this analysis is to evaluate performance and determine cost effectiveness of various energy retrofit measures, individually and as packages, in low-rise multifamily buildings. Three unique building vintages are considered: pre-1978, 1978–1991, and 1992–2010. The vintages were defined based on review of historic Title 24, Part 6 code requirements and selecting year ranges with distinguishing features. The applied approach establishes recommendations based on existing conditions and cost effectiveness of each measure or package.

The California Building Energy Code Compliance Residential (CBECC-Res) 2019.1.3 and 2022.0.1 compliance simulation tools were used to evaluate energy savings for most measures, with the exception of those outside the code compliance scope. In these cases, a combination of the Department of Energy’s BEopt software and EnergyPlus v9.3. simulation engine was used.

This analysis builds on the work completed earlier in 2021 for single family buildings (Statewide Reach Code Team, 2021) and has been updated to reflect nuances for multifamily buildings, changes in measure costs over time, current utility tariffs and updated assumptions of utility rate escalation. Energy simulations were evaluated in CBECC-Res 2019 to evaluate cost effectiveness from a TDV perspective under the 2019 Title 24, Part 6. CBECC-Res 2022 was used to evaluate cost effectiveness under the 2022 Title 24, Part 6 code as well as on-bill cost effectiveness using the updated 2022 weather files.

2.1 Building Prototypes
The Energy Commission defines building prototypes which it uses to evaluate the cost effectiveness of proposed changes to Title 24, Part 6 requirements. For this analysis, an 8-unit 2-story garden-style multifamily prototype was used. This prototype is estimated to be representative of 40 percent of the existing multifamily building stock (Statewide CASE Team, 2020a). It is a 6,960 square foot building with slab-on-grade foundation, wood framed wall construction and a sloped roof. Table 1 describes the basic characteristics of the multifamily prototype.

1.96 Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 3 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 1: Prototype Characteristics
Multifamily Prototype
Existing Conditioned Floor Area 6,960 ft2:
(4) 780 ft2 & (4) 960 ft2 units
Number of Stories 2
Number of Units 8
Number of Bedrooms 12 beds:
(4) 1-bed & (4) 2-bed
Window-to-Floor Area Ratio 15%
Three building vintages were evaluated to determine sensitivity of existing building performance on cost effectiveness of upgrades. For example, it is widely recognized that adding attic insulation in an older building with no insulation is cost-effective; however, newer buildings will likely have at least some existing insulation in the attic reducing the potential savings from the measure. The building characteristics for each vintage were determined based on either prescriptive requirements from Title 24, Part 6 that were in effect or standard construction practice during that time period.

Table 2 summarizes the assumptions for each of the three vintages. Additionally, the analysis assumed the following features when modeling the prototype buildings:
• Individual space conditioning and water heating systems, one per multifamily unit. • Split-system air conditioner with natural gas furnace with an efficiency defined by year of the most recent equipment replacement (based on standard equipment lifetime). • Small storage natural gas water heater with an efficiency defined by year of most recent equipment replacement (based on standard equipment lifetime).
• Gas cooktop, oven, and clothes dryer.

Additions are not evaluated in this analysis as they are separately addressed in Section 150.2 of Title 24, Part 6 and have unique code requirements more similar to new construction than alterations.

1.97 Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 4 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 2: Efficiency Characteristics for Three Vintage Cases Building Component Efficiency
Feature
Vintage Case
Pre-1978 1978-1991 1992-2010
Envelope
Exterior Walls 2x4, 16 inch on center wood frame,
R-0a
2x4 16 inch on center wood frame,
R-11
2x4 16 inch on center wood frame,
R-13
Foundation Type & Insulation Uninsulated slab (CZ 2-15) Raised floor, R-0 (CZ 1 & 16)
Uninsulated slab (CZ 2-15)
Raised floor, R-0 (CZ 1 & 16)
Uninsulated slab (CZ 2-15)
Raised floor, R-19 (CZ 1 & 16)
Ceiling Insulation & Attic Type
Vented attic, R-11 @ ceiling level
Vented attic, R-5 @ ceiling level
(CZ 6 & 7)
Vented attic, R-19 @ ceiling level Vented attic, R-30 @ ceiling level Roofing Material & Color Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Radiant Barrier No No No
Window Type: U-factor/SHGCb Metal, single pane: 1.16/0.76 Metal, dual pane: 0.79/0.70 Vinyl, dual pane Low-E: 0.55/0.40 House Infiltration 15 ACH50 10 ACH50 7 ACH50
HVAC Equipment
Heating Efficiency 78 AFUE (assumes 2 replacements) 78 AFUE (assumes 1 replacement) 78 AFUE Cooling Efficiency 10 SEER (assumes 2 replacements) 10 SEER (assumes 1 replacement) 13 SEER, 11 EER Duct Location & Details Attic, R-2.1, 30% leakage Attic, R-2.1, 25% leakage Attic, R-4.2, 15% leakage Whole Building Mechanical Ventilation None None None
Water Heating Equipment
Water Heater Efficiency 0.575 Energy Factor (assumes 2
replacements)

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

1.98 Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 5 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

2.2 Efficiency Measures
The methodology used in the analyses for each of the prototypical building types begins with a design that matches the specifications as described in Table 2 for each of the three vintages. Prospective energy efficiency measures were modeled in each of the prototypes to determine the projected electricity and natural gas energy impacts relative to the baseline vintage. In some cases, measures were packaged together where justified by complementary work flows, such as attic insulation and air sealing. Unless specified otherwise, all measures were evaluated using CBECC-Res 2019.1.3 and CBECC-Res 2022.0.1.

All measures are evaluated assuming they are not otherwise required by Title 24, Part 6. For example, duct sealing is required by code whenever HVAC equipment is altered. For this analysis duct sealing was evaluated for those projects where it is not already triggered by code (i.e., no changes to the heating or cooling equipment). Where appropriate, measure requirements align with those defined in Title 24, Part 6. In some cases, cost-effective measures were identified that exceed Title 24, Part 6 requirements, such as attic insulation, cool roofs, and duct sealing.

Following are descriptions of each of the efficiency upgrade measures applied in this analysis.

2.2.1 Building Envelope/Non-Preempted Measures
Attic Insulation: Add attic insulation in buildings with vented attic spaces to meet R-49. This aligns with upcoming requirements in the 2022 Title 24, Part 6 code for altered ceilings.

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

Cool Roof: For steep slope roofs, install a roofing product rated by the Cool Roof Rating Council (CRRC) with an aged solar reflectance of 0.25 or higher and thermal emittance of 0.75 or higher. This measure only applies to buildings that are installing a new roof as part of the scope of the remodel; the cost and energy savings associated with this upgrade reflects the incremental step between a standard roofing product with one that is CRRC rated with an aged solar reflectance of 0.25. This is similar to cool roof requirements in 2019 Title 24, Part 6 Section 150.2(b)1Ii but assumes a higher solar reflectance.

Raised Floor Insulation: Add R-19 insulation in existing buildings with raised floors and no insulation (pre-1978 vintages). While the base case for Climate Zones 2 through 15 is evaluated with a slab-on-grade, a parallel analysis was done with an uninsulated raised floor in these climate zones to evaluate the floor insulation measure.

Wall Insulation: Blow-in R-13 wall insulation in existing buildings that currently have no insulation in the walls (pre1978 vintages).

Window Replacement: Replace existing metal-frame windows with a non-metal dual-pane product, which has a Ufactor equal to 0.30 Btu/hour-ft2-°F or lower and a Solar Heat Gain Coefficient (SHGC) equal to 0.23 or lower, except in heating dominated climates (Climate Zones 1, 3, 5, and 16) where an SHGC of 0.35 improves overall performance. This measure was only evaluated for the two older vintages, pre-1992, which are assumed to have either single- or dual-pane, metal-frame windows. This aligns with new window requirements in 2019 Title 24, Part 6. New windows have other non-energy benefits such as reduced noise and improved occupant comfort.

Duct Sealing, New Ducts, and Duct Insulation: Air-seal all ductwork to meet the requirements of the 2019 Title 24, Part 6 Section 150.2(b)1E. For this analysis, a total duct leakage value of 15 percent (which corresponds to Option i in

1.99 Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 6 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 the Title 24, Part 6 section referenced) was evaluated. This measure was only evaluated for the two older vintages, pre-1992, where existing leakage rates were higher than 15 percent.

Replacing existing ductwork with entirely new ductwork was also evaluated. New ductwork must meet Sections 150.2(b)1Di and 150.2(b)1Diia of the 2019 Title 24, Part 6 code, as well as R-8 duct insulation and five percent duct leakage in all climates. The prescriptive requirement for total leakage in new ducts in multifamily dwelling units per Section 150.2(b)1DiiaII is 12 percent as opposed to five percent for single family dwellings. However, under most conditions, five percent is as attainable in multifamily buildings as it is in single family. Therefore, this lower threshold is recommended.

Both duct measures were evaluated only for ducts in the vented attic at the second floor units of the 2-story prototype.

CBECC-Res does not evaluate the sealing impacts for ducts in conditioned space.

Water Heater Blanket: Add R-6 insulation to the exterior of existing residential tank storage water heaters. For the analysis, the water heater was modeled within conditioned space, which is a typical configuration for older buildings.

This assumption is conservative since a water heater located in unconditioned space will tend to have higher tank losses and installing a water heater blanket in those situations will result in additional savings. The energy savings for this measure reflect water heating energy savings only, and do not include any impacts to the space conditioning load, which reduces space cooling loads and increases space heating loads. The impact on space conditioning energy used is minimal and in most climate zones, except for heating dominated ones, the combination of these two impacts results in net energy savings. This measure was evaluated using EnergyPlus for individual water heaters only and does not apply to central water heating systems.

Hot Water Pipe Insulation: Insulate all accessible hot water pipes with R-3 pipe insulation. In certain buildings such as those with slab-on-grade construction where most pipes are located either underground or within the walls, most of the pipes are inaccessible. For the purposes of this analysis, a conservative assumption that only ten percent of the pipes could be insulated was applied. In buildings where pipes are in the attic, crawlspace, or are otherwise more accessible, energy savings will be higher than those presented in this analysis. This measure was evaluated using BEopt and EnergyPlus. Savings were estimated by scaling the savings estimated for single family homes in the previous reach code analysis (Statewide Reach Code Team, 2021) based on the number of anticipated occupants for the multifamily prototype relative to the single family prototype.

Low-Flow Fixtures: Upgrade sink and shower fittings to meet current Title 24, Part 11 (CALGreen) requirements, which require maximum flow rates of 1.8 gallons per minute (gpm) for showerheads and kitchen faucets, and

1.2 gpm for bathroom faucets. Baseline dwelling unit hot water use was based on BEopt assumptions, and this measure assumed the upgraded fixtures reduce flow rates by ten percent for showerheads and 20 percent for all faucets, based on a 2010 water use study (CONSOL, January 2010). This measure was evaluated using BEopt and EnergyPlus. Savings were estimated by scaling the savings estimated for single family homes in the previous reach code analysis (Statewide Reach Code Team, 2021) based on the number of anticipated occupants for the multifamily prototype relative to the single-family prototype.

LED Lighting: Replace screw-in (A-based) incandescent and CFLs lamps with light-emitting diode (LED) lamps. This analysis was conducted external to the energy model and evaluated replacement of a 13 W CFL lamp with an 11 W LED lamp operating 620 hours annually. Annual hour estimates were based on whole building average hours of operation from a 2010 lighting study by KEMA (KEMA, Inc., February 2010). Lifetime assumptions were 10,000 hours for CFLs and 25,000 hours for LED lamps. For incremental cost calculations it was assumed CFLs have a lifetime of 15 years, are installed five years prior to the retrofit, and would need to be replaced at year ten and 25.

Exterior Lighting Controls: Evaluation of exterior lighting controls was completed on a per-luminaire basis external to the energy model and assumes a screw-in photosensor control is installed in outdoor lighting luminaires. Energy savings of 12.1 kWh per year was applied based on analysis done by the Consortium for Energy Efficiency, assuming LED lamps, 2.6 hours per day of operation, and that photosensor controls reduce operating hours on average 20

1.100
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 7 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 percent each day (Consortium for Energy Efficiency, January 2014). Energy savings will be higher for incandescent or CFL luminaires.

2.2.2 Photovoltaics (PV) and Battery Measures
PV: Installation of on-site PV is required in the 2019 residential code for new construction but not for additions or alterations to existing buildings. This report does not focus on optimizing PV system sizing for each prototype and climate zone. For this study, the PV system was sized to the 2019 new construction standards for a 6,960 square foot building. Based on prior studies, PV system cost effectiveness was not sensitive to system sizing up to 90 percent of annual electricity use (Statewide Reach Code Team, 2019). The system is sized to offset a portion of annual building electricity use for a new construction building and avoid oversizing, which would violate net energy metering (NEM) rules in place at the time of analysis. In all cases, PV is evaluated in CBECC-Res according to the California Flexible Installation (CFI) assumptions. Table 3 summarizes the PV sizing used in the analysis.

Table 3: Multifamily PV Sizing for 6,960 ft2 building by Climate Zone (kWDC) CA
Climate
Zone
PV Capacity
(kWDC)
a
CA
Climate
Zone
PV Capacity
(kWDC)
a
1 15.68 9 15.15
2 14.08 10 15.64
3 13.33 11 17.34
4 13.76 12 15.47
5 12.55 13 18.3
6 13.97 14 15.24
7 13.18 15 22.62
8 15.04 16 13.97
a PV system sized using residential new construction sizing methodology based on climate zone and dwelling unit size.

Energy Storage (Batteries): This measure includes installation of batteries to allow energy generated through PV to be stored and used later, providing energy cost and resiliency benefits. This report does not focus on optimizing battery sizes or controls for each prototype and climate zone. A 16 kWh battery system for the 8-unit building was evaluated in CBECC-Res in conjunction with a PV system sized to the 2019 new construction standards. The battery system was sized based on the upcoming 2022 Title 24, Part 6 requirements for multifamily buildings four habitable stories and greater. The control type was set to “Basic” in the software with default efficiencies of 95 percent for both charging and discharging (round trip efficiency of 90 percent). The 90 percent efficiency reflects products that are available on the market today. The Basic control charges the battery anytime PV generation is greater than the building load and discharges whenever the PV system does not cover the entire building load. It discharges only to serve building loads and does not discharge to the electric grid.

The “Time-of-Use” (TOU) battery control in CBECC-Res was not applied in this analysis to comply with current interconnection rules which do not allow battery systems to be interconnected under virtual net energy metering (VNEM) and export to the grid. While batteries are allowed to export if charged entirely from on-site renewables, this has not yet been allowed under VNEM.

2.2.3 Equipment Fuel Substitution Measures – Heat Pump Replacements The baseline for the retrofit analysis assumes a mixed-fuel baseline for all cases, with natural gas furnaces for space heating and natural gas storage tank water heaters for domestic hot water (DHW). For the fuel substitution analysis,

1.101
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 8 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 the natural gas appliances are replaced with heat pump equipment at the end of equipment life, when the equipment is being replaced.

Ducted Heat Pump: Replace an existing ducted natural gas furnace and air conditioner (AC) with an electric heat pump. Savings are relative to a new ducted gas furnace/AC (14 SEER, 11.7 EER, 80 AFUE). Ductwork was sealed to 15 percent total leakage as is required by code for both the gas and heat pump cases. Minimum federal efficiency and higher efficiency heat pumps were evaluated. For the first case minimum efficiencies of 14 SEER, 11.7 EER, and 8.2 HSPF were applied, and heat pump capacities were based on autosizing in the software. The high efficiency heat pump specifications were based on a Bryant1 variable capacity unit with rated efficiencies of 22 SEER, 14 EER, and 11 HSPF. While there are many variable capacity heat pumps with comparable performance, the Bryant unit was selected as a representative example. The heating capacities at 47 and 17 degrees Fahrenheit were entered in the software for the smallest Bryant unit that satisfied the heating load based on CBECC-Res load calculations. The system sizes described in Table 4 differed by climate zone and whether the apartment was on the lower floor or upper floor of the two-story prototype. Cooling capacity is not an input in CBECC-Res and was autosized in the simulation in all cases.

Table 4: High Efficiency Heat Pump Capacity per Floor
Climate
Zone
1st Floor Apartment
Nominal Capacity
(Tons)
2nd Floor Apartment
Nominal Capacity
(Tons)
1 2 2
2 2 3
3 2 2
4 2 2
5 2 2
6 2 2
7 2 2
8 2 3
9 2 3
10 2 3
11 2 4
12 2 3
13 2 4
14 2 3
15 2 5
16 2 2
Heat Pump Water Heater (HPWH): Replace an existing natural gas storage tank water heater with either a minimum efficiency (UEF 2.0) HPWH, or a HPWH that meets the Northwest Energy Efficiency Alliance (NEEA) Advanced Water Heating Specification Tier 32 rating. Analysis is based on the water heater located in an exterior closet, a typical configuration in the style of multifamily building represented by this 8-unit prototype. The evaluated NEEA HPWH is an 80-gallon unit with a UEF of 3.45.3 Savings are relative to a new 50-gallon natural gas storage water heater (UEF

0.63).
1 Bryant Evolution Extreme 24. https://www.bryant.com/en/us/products/heat-pumps/284anv/ 2 https://neea.org/our-work/advanced-water-heating-specification 3 The 1-bed and 2-bed apartments in the multifamily prototype used in this analysis likely wouldn’t require an 80-gallon HPWH. When loads can be served by a 50-gallon or 65-gallon the resultant electricity use and incremental cost will both be slightly lower and cost effectiveness will improve.

1.102
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 9 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

2.3 Efficiency Packages
Some of the measures described above were also evaluated as packages.

2.3.1 Envelope and Duct Packages
Five envelope and duct packages were developed as described below. Air sealing and attic insulation are very often applied as a package in building retrofits. From a performance perspective, air sealing of the boundary between the attic and living space should be addressed any time there is significant work in the attic, such as adding attic insulation and sealing or replacing ductwork. At time of building shell improvement, air sealing is an important component to be addressed. The boundary between the living space and vented attics is where a significant amount of building air leakage can occur and sealing these areas prior to covering the attic floor with insulation is both practical and effective.

These measures also directly address occupant comfort, as they reduce heat transfer, and result in more consistent temperatures within the building. When ductwork is located in the attic there are synergies with addressing all three of these building aspects at the same time.

1. R-49 Attic Insulation and Air Sealing: This package includes attic insulation and air sealing measures, as described below.
• R-49 attic insulation installed in attic.
• Air sealing and weatherstripping to reduce total building air leakage by 30 percent. Target air leakage assumptions are ten ACH50 for pre-1978 vintage, seven ACH50 for 1978–1991 vintage, and five ACH50 for the 1992–2010 vintage.

2. R-49 Attic Insulation and Duct Sealing: This package includes attic insulation and duct sealing measures, as described below. This only applies to the pre-1978 and 1978–1991 vintage buildings since the 1992–2010 vintage base case already includes 15 percent leakage ducts. • R-49 attic insulation installed in attic.
• Ductwork sealed to 15 percent of nominal airflow.

R-49 Attic Insulation, Air Sealing, and Duct Sealing: This package includes attic insulation, air sealing, and duct sealing measures, as described below. This combination of measures is common when a whole building performance upgrade is done in combination with HVAC equipment replacement. Incorporating these measures can allow for contractor to downsize HVAC equipment by lowering heating and cooling loads in the building.
• R-49 attic insulation installed in attic.
• Ductwork sealed to 15 percent of nominal airflow (pre-1978 and 1978–1991 only). • Air sealing and weatherstripping to reduce total building air leakage by 30 percent. Target air leakage assumptions are ten ACH50 for pre-1978 vintage, seven ACH50 for 1978–1991 vintage, and five ACH50 for the 1992–2010 vintage.

4. R-49 Attic Insulation, Air Sealing, and Entirely New Ducts: This package is similar to Package 3 above but assumes that all existing ductwork is replaced with new R-8 ducts and sealed to new construction standards (five percent total leakage). This package assumes that if an existing HVAC system is being replaced with new ductwork, the area between the vented attic and conditioned space be air sealed and insulation added to the attic.
• R-49 attic insulation installed in attic.

1.103
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 10 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 • New R-8 ductwork sealed to five percent of nominal airflow. • Air sealing and weatherstripping to reduce total building air leakage by 30 percent. Target air leakage assumptions are ten ACH50 for pre-1978 vintage, seven ACH50 for 1978–1991 vintage, and five ACH50 for the 1992–2010 vintage.

5. Advanced Envelope Package: Attic Insulation, Air and Duct Sealing, plus Wall Insulation and New Windows: This package includes all the measures in Package 3, in addition to insulating exterior walls, and replacing existing single-pane windows with improved high-performance windows. This package only applies to older vintage buildings with no wall cavity insulation and single-pane windows. • R-49 attic insulation installed in attic.
• Ductwork sealed to 15 percent of nominal airflow (pre-1978 and 1978-1991 only). • Air sealing and weatherstripping to reduce total building air leakage by 30 percent. Target air leakage assumptions are ten ACH50 for pre-1978 vintage, seven ACH50 for 1978–1991 vintage, and five ACH50 for the 1992–2010 vintage.
• Insulate exterior walls to R-13.
• New windows with 0.30 U-factor and 0.23 SHGC (0.35 SHGC in Climate Zones 1, 3, 5, and 16).

2.3.2 Additional Packages
Water Heating Package: Includes storage tank water heater blanket, hot water pipe insulation, and low-flow fixtures.

These three water heating measures are all relatively low cost and work together to reduce building hot water energy use.4
PV plus Batteries: PV sized to the 2019 Title 24, Part 6 residential new construction standards and a 16 kWh battery system with Basic control.

PV plus Heat Pump: PV sized to 2019 Title 24, Part 6 residential new construction standards and one fuel substitution measure, either a ducted heat pump for space heating or heat pump water heater.

PV plus Heat Pump plus Panel Upgrade: The PV plus Heat Pump package with the additional cost included for upgrading the electric panel.

PV plus Electric Ready Measures: Includes adding electric ready measures for future replacement of natural gas furnaces and water heaters with heat pumps, along with installation of an on-site PV system. The electric ready measures include prewiring 240 V power to the furnace location in an attic or an interior closet and the water heater location in an exterior closet, and panel upgrade to allow for installation of future electric appliances at a future date.

2.4 Measure Cost
Measure costs were obtained from various sources, including prior reach code studies, past Title 24, Part 6 Codes and Standards Enhancement (CASE) work, local contractors, internet searches, past projects, and technical reports.

2.4.1 Building Envelope/Non-Preempted Measures
Table 5 summarizes the cost assumptions for the building envelope and non-preempted HVAC measures evaluated. 4 For additional information on residential water savings measures refer to the Energy plus Water 2019 reach code report. https://localenergycodes.com/download/454/file_path/fieldList/Energy%20plus%20Water%20Cost-eff%20Report-2019-10-22.pdf

1.104
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 11 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

2.4.2 PV and Battery Measures
The costs for installing PV and batteries are summarized in Table 6. For PV, they include first cost to purchase and install the system, inverter replacement costs, and annual maintenance costs. Upfront solar PV system costs are reduced by the federal investment tax credit (ITC) by 26 percent based on renewal of the credit through the year 2023.

Costs for batteries include first cost and replacement at year 10 and 20, assuming a 10 year battery life. Batteries are also eligible for the ITC if they are installed at the same time as the renewable generation source and charged by a renewable energy system more than 75% of the time.

1.105
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 12 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 5: Measure Descriptions & Cost Assumptions - Non-Preempted Measuresa Measure Performance Level
Incremental Lifecycle
Cost – Multifamily Unit Source Notes
Pre
1978
1978 –
1991
1992 –
2010
Wall Insulation R-13 $1,006 N/A N/A Retrofit contractorb $2.14/ ft2 exterior wall area. Assumes installation by drilling 2-inch holes from outside.

Raised Floor Insulation R-19 $822 N/A N/A Retrofit contractorb $1.89/ ft2 of raised floor area. Assumes installation of R-19 batt insulation when existing condition is no insulation.

Attic Insulation R-49 $745 $625 $484
2022 Alterations
CASE
Report (Statewide
CASE Team,
2020a)
$1.71/ ft2 ceiling area to add insulation to existing R-11 insulation.
$1.44/ ft2 to add to existing R-19 insulation.
$1.11/ ft2 to add to existing R-30 insulation.

Air Sealing
10 ACH50 $448 N/A N/A
Retrofit contractorb
Based on contractor quote to seal building shell and reduce building air leakage by 30%. Assumes all accessible leaks are sealed and assumes existing attic insulation is not removed.
7 ACH50 N/A $448 N/A
5 ACH50 N/A N/A $448
Cool Roof Aged Solar Reflectance
> 0.25 $225 $225 $225
2022 Alterations
CASE Report
(Statewide CASE
Team, 2020a)
Based on $0.32/ ft2 roof area first incremental cost for cool asphalt shingle product. Total costs assume present value of replacement at year 20 and residual cost for remaining
product life at end of 30-year analysis period. Higher
reflectance values for lower cost are achievable for tile roof products
Window
U-factor/SHGC

0.30 U-factor

0.23 SHGC in CZs 2,4,6-15

0.35 SHGC in CZs 1,3,5,16
$5,873 N/A N/A Retrofit contractorc Based on $45/ ft2 window area installed cost.

Duct Sealing 15% nominal airflow $260 $260 N/A HVAC contractor Assume ducts in attic with 1 return. Costs scaled based on pricing from contractor for SF home. ~1 hour of labor at $120/hour and $15 material for 15% leakage from a starting point of 25-30%. $125 for HERS Rater.

Entirely New Ducts R-8 ducts, 5% duct leakage $1,353 $1,353 $1,353 Retrofit contractorb Scaled to the MF prototype based on duct layout provided for prototype single story model, and all ducts located in attic.

Water Heater Blanket R-6 $40 Internet search of
big box retailers
$20 blanket + ½-hour labor ($40.30/hour laborer rate). Sixyear life assuming that the existing water heater is already part way through its life and will need to be replaced after 6 years on average.

Hot Water Pipe Insulation 3/4 inch (R-3) $42 Internet search of big box retailers
$0.20/ft of ¾ inch pipe insulation. 10ft total + 1-hour labor ($40.30/hour common labor rate). 15-year life assumed.

1.106
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 13 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Low-flow Fixtures CALGreen $86 Retrofit contractorc
Showerheads at $34.74 each + sink aerators at $5.37 each + 1-hour labor ($40.30/hour common labor rate). 1
showerheads & 2 aerators assumed. 15-year life assumed.

LED Lamp 11 W screw-in lamp $3.99/luminaire Internet search $3.99 for LED dimmable A19 lamp 60 W equivalent. $1.83
for an equivalent CFL product which was used to estimate total replacement costs at years 10 and 25. Cost based on a single LED lamp replacement.

Exterior Lighting Controls Photocell control with motion sensor $42.58/device Internet search
Incremental cost of $9.95, based on a screw-in photosensor control, was obtained from an on-line product search of available products. A five-year lifetime for this type of control was assumed with 5 replacements over the analysis period. a Costs include contractor overhead and profit.
b Source: Central Valley retrofit contractor who provided upgrade estimates in 2020 for a single family home prototype c Source: Retrofit contractor pricing obtained by Davis Energy Group through the Stockton Energy Challenge neighborhood retrofit program (Davis Energy Group, 2017).

Table 6: Measure Descriptions & Cost Assumptions – PV and Batteriesa Measure Performance Level
Incremental Cost –
Multifamily Unit Source Notes
Pre 1978 1978 – 1991 1992 - 2010
PV
Sized to 2019
New Construction Standards:

System size varies by
climate (1.57 -

2.83 kW per unit)
$2.74/WDC
$4,292 - $7,734
(Barbose &
Darghouth,
2019)
First costs are from LBNL’s Tracking the Sun 2019 costs (Barbose & Darghouth, 2019) and represent costs for the first half of 2019 of $3.10/WDC for residential systems. These costs were reduced by 26% for the solar ITC, which is the average credit over years 2021-2022.

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

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

Batteries 16 kWh, Basic controls $2,274
$1,137/kWh
(Self
Generation
Incentive
Program,
2020), (E
Source
Companies,
2020)
$1,000/kWh first cost in 2020 based on SelfGeneration Incentive Program residential participant cost data. To estimate the first cost in future years this was reduced by 7% annually based on SDG&E’s Behind-the-Meter Battery Market Study (E Source Companies, 2020). The first cost is reduced by the Residential Storage Step 7 SGIP incentive of
$0.15/Wh and the solar ITC of 26%. Costs are presented as the average of 2021 and 2022.

Replacement cost at year 10 and 20 calculated based on the 2020 cost of $1,000/kWh reduced by 7% annually over the next 11 years for a future value cost of $450 (present value of $335 in year 10 and $249 in year 20).
a Costs include contractor overhead and profit.

1.107
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 14 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

2.4.3 Equipment Fuel Substitution Measures – Heat Pump Equipment The cost assumptions used for fuel substitution measures are summarized in Table 7 and Table 8. Incremental costs for the heat pump replacement measures were obtained from several sources, including a 2019 report on residential building electrification in California (Energy & Environmental Economics, April 2019), pricing information provided from Sacramento Municipal Utility District’s (SMUD’s) electric appliance incentive program (SMUD, 2020), online equipment pricing, and contractor outreach. Both material and labor costs are included, assuming that existing natural gas equipment is being replaced with heat pumps at the end of equipment life, at time of equipment replacement.

For both the space heating and water heating cases, costs for service panel upgrades are not included as many existing buildings have the service capacity to support converting one appliance from gas to electric. In some buildings and in cases where multiple end uses are electrified, a larger electrical panel may be necessary. There are alternate scenarios evaluated that combine heat pumps with PV system installation, both with and without a panel upgrade. Cost assumptions for electric ready measures including a panel upgrade for future equipment fuel substitution measures are included in Table 9.5
Ducted Heat Pump: Table 7 presents estimated costs to replace existing equipment with a heat pump instead of a minimum efficiency natural gas furnace and AC. It is assumed there is no incremental labor except in providing new 240 V electrical service to the air handler location.

The lifetime for the heat pump, furnace, and air conditioner are based on the Database for Energy Efficient Resources (DEER) (California Public Utilities Commission, 2021a). In DEER, heat pump and air conditioner measures are assigned an effective useful lifetime (EUL) of 15 years and a furnace an EUL of 20 years. The heating and cooling system components are typically replaced at the same time when one reaches the end of its life and the other is near it. Therefore, it is assumed that both the furnace and air conditioner are replaced at the same time at year 17.5, halfway between 15 and 20 years. Present value replacement costs are included in the LCC.

The base case assumes that an existing AC is replaced. In mild climates, where AC may not be installed, there will be additional costs for installing an outdoor unit, refrigerant lines, and condensate drain pan.

Table 7: HVAC Measure Cost Assumptions – Electric Replacements Gas
Furnace/AC
14 SEER
Heat
Pump
22 SEER
Heat
Pump
Notes
First Cost $8,545 $8,731 $10,725
Equipment costs from on-line sources and HVAC
contractors for 2-ton unit. Other supply and labor costs from 2019 report on residential building electrification in California (Energy & Environmental Economics, April
2019). First cost includes disposal, electrical upgrade, and labor costs.

Replacement Cost
(Future Value) $8,545 $6,433 $8,028 Future total replacement costs for the heat pumps are reduced by 20%6 to account for cost reductions because 5 In some cases when electrifying larger buildings or many buildings throughout a neighborhood, transformers may require upgrading. This is outside the scope of this analysis.
6 Limited data on expected cost decreases in heat pumps over time are available. Instead, the Reach Code Team relied on recent solar PV trends.

According to NREL’s 2020 PV cost benchmark report (National Renewable Energy Laboratory, 2021) residential installed PV costs declined by 4.6 percent annually on average between 2014 and 2020. Installed residential PV capacity in the United States has increased by 335 percent between 2015 and 2020 according to 2021 Solar Market Insight Report (Solar Energy Industries Association, 2021). Data from AHRI (AHRI, 2021) reports an increase of United States shipments of air-to-air heat pumps of 151 percent between the same time period (2015-2020). The 4.6 percent growth rate was scaled to account for the different increases in market penetration (4.6% * 151%/335% = 2.1%). Over the 15 year expected useful life of the heat pump, the 2.1 percent annual decrease results in an estimated 31 percent total decrease. To be conservative and not overestimate cost

1.108
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 15 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Gas
Furnace/AC
14 SEER
Heat
Pump
22 SEER
Heat
Pump
Notes
of a maturing market and electrical upgrade costs are
removed.

Replacement Cost
(Present Value) $5,094 $4,129 $5,153 Based on 17.5-year lifetime for gas furnace/AC, 15-year lifetime for heat pumps, and 3% discount rate.

Remaining Value at
Year 30 ($1,006) $0 $0 Residual value of the gas furnace/AC to account for the remaining life at end of 30-year analysis period.

Total Lifecycle Cost $12,633 $12,859 $15,878
Incremental Cost - $227 $3,245

Heat Pump Water Heater (HPWH): Table 8 presents estimated costs for the replacement of a natural gas storage water heater with a HPWH. Costs include all material and installation labor including providing new 240 V electrical service to the water heater location. Total installed costs are based on data from SMUD’s HPWH incentive program between 2018 and 2020 (Sacramento Municipal Utility District, 2020). Equipment replacement costs are included based on an equipment life of 15 years for both the base case gas water heater and the HPWH. Present value replacement costs are included in the LCC.

Table 8: Water Heating Measure Cost Assumptions – Electric Replacements Item
Gas
Storage
Water
Heater

2.0 UEF
HPWH
NEEA
Tier 3
HPWH
Notes
First Cost $1,600 $4,018 $4,155
First cost based on 2018-2020 costs from SMUD
incentive program for NEEA Tier 3 HPWH (Sacramento
Municipal Utility District, 2020). 2.0 UEF first cost
assumes 90% of equipment cost compared to NEEA Tier
3 unit based on on-line product research. Includes
equipment cost, electrical upgrade, permitting, and labor.

Replacement Cost
(Future Value) $1,600 $1,874 $1,943
Future replacement cost assumes the same labor for the
gas and HPWH case. HPWH replacement equipment
costs are reduced by 50% to account for cost reductions because of a maturing market.

Replacement Cost
(Present Value) $1,027 $1,203 $1,247 Based on 15-year lifetime and 3% discount rate.

Total Lifecycle Cost $2,627 $5,221 $5,402
Incremental Cost - $2,594 $2,775

Electric Ready: Table 9 presents electric ready measure costs. Appliance pre-wiring costs assume materials and labor for prewiring 240 V, 30 A dedicated circuits to the existing furnace location in an attic or interior closet and the water heater location in an exterior closet. Panel upgrade costs are based on upgrading to 200 A service to allow for electric appliance installation at a future date.
decreases this was reduced by about one third to arrive at the 20 percent assumption applied in this analysis. If annual heat pump installations increase beyond the 30 percent annual increase assumed based on this data (151%/5 = 30%), which is likely if electrification goals across the United States are met, cost reductions could be much higher.

1.109
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 16 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 9: Electric Ready Measure Cost Assumptions
Measure Incremental Cost Notes
Appliance prewire
$455 per appliance.
$910 total for space and
water heating
$125 parts, $330 labor. (Energy &
Environmental Economics, April 2019)
Panel upgrade $3,181 (TRC, 2016)

2.5 Cost Effectiveness
Cost effectiveness was evaluated for all climate zones and is presented based on both TDV energy, using the Energy Commission’s LCC methodology, and an On-Bill, customer-based approach using residential customer utility rates.

Both methodologies require estimating and quantifying the value of the energy impact associated with energy efficiency measures over the life of the measures (30 years) as compared to the base case assumptions.

Additional analysis included evaluating the measures using both the 2019 and 2022 TDV multipliers. The 2022 weather files were also used to evaluate On-Bill energy performance. The 2022 weather files were updated in 2019 and are considered to better represent conditions now and in the future. They tend to increase cooling and reduce space heating energy use, based on recent warming trends throughout the state.

Cost effectiveness is presented using both lifecycle NPV savings and benefit-to-cost (B/C) ratio metrics, which represent the cost effectiveness of a measure over a 30-year lifetime taking into account discounting of future savings and costs and financing of incremental first costs.
• NPV Savings: NPV benefits minus NPV costs is reported as a cost-effectiveness metric. If the net savings of a measure or package is positive, it is considered cost-effective. Negative savings represent net costs. A measure that has negative energy cost benefits (energy cost increase) can still be cost-effective if the costs to implement the measure are more negative (i.e., material and maintenance cost savings). • B/C Ratio: Ratio of the present value of all benefits to the present value of all costs over 30 years (NPV benefits divided by NPV costs). The criteria for cost effectiveness is a B/C ratio greater than one. A value of one indicates the NPV of the savings over the life of the measure is equivalent to the NPV of the lifetime incremental cost of that measure. A value greater than one represents a positive return on investment. The B/C ratio is calculated according to Equation 1.

Equation 1
𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵 − 𝑡𝑡 − 𝐶𝐶 𝐶𝐶 𝑅𝑅𝑅𝑅 = 𝑁𝑁𝑁𝑁𝑁𝑁 𝑙𝑙 𝑙𝑙 𝑏𝑏
𝑁𝑁𝑁𝑁𝑁𝑁 𝑙𝑙 𝑙𝑙 𝑐𝑐
Improving the efficiency of a project often requires an initial incremental investment. In most cases the benefit is represented by annual On-Bill utility or TDV savings, and the cost by incremental first cost and replacement costs.

However, some packages result in initial construction cost savings (negative incremental cost), and either energy cost savings (positive benefits), or increased energy costs (negative benefits). In cases where both construction costs and energy-related savings are negative, the construction cost savings are treated as the ‘benefit’ while the increased energy costs are the ‘cost.’ In cases where a measure or package is cost-effective immediately (i.e., upfront construction cost savings and lifetime energy cost savings), B/C ratio cost effectiveness is represented by “>1”.

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

The lifetime costs or benefits are calculated according to Equation 2.

1.110
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 17 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Equation 2
NPV of lifetime cost or benefit = �(𝐴𝐴 𝐴𝐴 𝑐𝑐 𝑜𝑜 𝑏𝑏 )𝑡𝑡
(1 + )𝑡𝑡
𝑛𝑛
𝑡𝑡=0
Where:
• n = analysis term in years
• r = discount rate
The following summarizes the assumptions applied in this analysis to both methodologies. • Analysis term of 30 years except:
• 15-year analysis term for the water heating package
• Real discount rate of three percent

2.5.1 On-Bill LCC
Residential utility rates at the time of the analysis were applied to calculate utility costs for all cases and determine OnBill cost effectiveness for the proposed measures and packages. The Statewide Reach Code Team obtained the recommended utility rates from each IOU based on the assumption that the reach codes go into effect in 2020. Firstyear utility costs were calculated using hourly electricity and natural gas output from CBECC-Res and applying the utility tariffs summarized in Table 10. Appendix B: Utility Rate Schedules includes details on the utility rate schedules used for this study. The applicable residential TOU rate was applied to all cases. For cases with PV generation, the approved NEM2 tariffs were applied along with minimum daily use billing and mandatory non-bypassable charges.

Future changes to the NEM tariffs are likely and the CPUC has issued a proposed decision with suggested changes that is expected to be finalized in 2022.7
Utility rates were applied to each climate zone based on the predominant IOU serving the population of each zone according to Table 10. Climate Zones 10 and 14 are evaluated with both SCE/SoCalGas and SDG&E tariffs since each utility has customers within these climate zones. Climate Zone 5 is evaluated under both PG&E and SoCalGas natural gas rates. Two municipal utility rates were also evaluated: SMUD in Climate Zone 12 and City of Palo Alto Utilities (CPAU) in Climate Zone 4.

Table 10: Utility Tariffs Applied Based on Climate Zone Climate Zones Electric/Gas Utility Electricity Natural Gas 1-5, 11-13, 16 PG&E E-TOU-C G1
5 PG&E/SoCalGas E-TOU-C GR
6, 8-10, 14, 15 SCE/SoCalGas TOU-D-4-9 GR
7, 10, 14 SDG&E D TOU-DR1 GR
12 SMUD/PG&E R-TOD (RT02) G1
4 CPAU E-1 G-2
Source: Utility websites, see Appendix B: Utility Rate Schedules for details on the tariffs applied.

A comparison of utility bill costs and subsequent cost savings from the measures evaluated in this study was conducted across TOU, tiered, and CARE rates. The TOU rates are described in Table 10 while the tiered rates are in Table 11. The CARE discount was evaluated for the TOU and tiered electricity tariffs and the gas tariffs in Table 10. 7 https://www.cpuc.ca.gov/nemrevisit

1.111
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 18 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 11: IOU Tiered Tariffs Applied Based on Climate Zone Climate Zones Electric Utility Electricity Tiered Tariff 1-5, 11-13, 16 PG&E E-1
6, 8-10, 14, 15 SCE D
7, 10, 14 SDG&E DR
Source: Utility websites, see Appendix B: Utility Rate Schedules for details on the tariffs applied.

Utility rates are assumed to escalate over time, using assumptions from the California Public Utilities Commission (CPUC) 2021 En Banc hearings on utility costs through 2030 (California Public Utilities Commission, 2021b).

Escalation rates through the remainder of the 30-year evaluation period are based on the escalation rate assumptions within the 2022 TDV factors. See Appendix B: Utility Rate Schedules - Escalation Assumptions for details.

In calculating On-Bill cost effectiveness, incremental first costs are assumed to be financed into a mortgage or loan with a 30-year loan term and four percent interest rate. The only exceptions are the lighting measures. These are lowcost measures that are more likely than the other measures evaluated to be installed by the owner or occupant and are not assumed to be financed. Present value of replacement cost is included for measures with equipment lifetimes less than the evaluation period.

2.5.2 TDV LCC
Cost effectiveness was also assessed using the Energy Commission’s TDV LCC methodology. TDV is a normalized monetary format developed and used by the Energy Commission for comparing electricity and natural gas savings, and it considers the cost of electricity and natural gas consumed during different times of the day and year. Both 2019 and proposed 2022 TDV values were used and are based on long term discounted costs of 30 years for all residential measures. The CBECC-Res simulation software results are expressed in terms of TDV kBtu and normalized by area (per sq ft). The present value of the energy cost savings in dollars is calculated by multiplying the TDV kBtu savings by a NPV factor, also developed by the Energy Commission. The 30-year NPV factor $0.173/TDV kBtu, used for both 2019 and 2022 Title 24, Part 6 code cycles for residential buildings, was used. As with the customer B/C ratio, a TDV B/C ratio 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. The ratio is calculated according to Equation 3. In calculating TDV cost effectiveness, incremental first costs were not assumed to be financed into a mortgage or loan.

Equation 3
𝑻𝑻𝑻𝑻𝑻𝑻 𝑩𝑩𝑩𝑩𝑩𝑩𝑩𝑩𝑩𝑩𝑩𝑩𝑩𝑩 − 𝒕𝒕 − 𝑪𝑪 𝑪𝑪 𝑹𝑹𝑹𝑹 = 𝑻𝑻𝑻𝑻𝑻𝑻 𝒆𝒆𝒆𝒆𝒆𝒆 𝒔𝒔 ∗ 𝑵𝑵𝑵𝑵 𝒇𝒇 𝑵𝑵𝑵𝑵 𝒍𝒍 𝒍𝒍

2.5.2.1 2019 and 2022 TDV Differences
There were key changes to the 2022 TDV methodology as compared to the 2019 TDV, including the major updates below:
• Updated weather files to reflect historical data from recent years. • New load profiles representing building and transportation electrification and renewable generation. • Addition of internalized cost streams to account for carbon emissions. • Shaped retail rate adjustment partially scaled to hourly marginal cost of service.

1.112
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 19 Methodology and Assumptions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 • Addition of non-combustion emissions from methane and refrigerant leakage.

The impact of these key changes for electricity TDV are lower values during the mid-day that correspond with an abundance of solar production and a shift of the peak TDV to later in the day as a result of increasing levels of rooftop PV systems. However, the overall magnitude of the 2022 TDV does not increase significantly relative to 2019 TDV. For natural gas TDV there is a large increase in magnitude with the 2022 TDV being roughly 70 percent higher than in 2019. This is driven by the new retail rate forecast, increased fixed costs for maintaining the distribution system, and the new carbon cost component. Additional details about 2022 TDV are described in the final 2022 TDV methodology (California Energy Commission, May 2020).

The updated weather files represent an updated dataset based on historical weather sampled from recent years (1998- 2017) to reflect the impacts of climate change. Cooling loads increase significantly, particularly for the mild climates zones where cooling energy use was previously low. Heating loads decrease on average 30 percent across all climate zones. The weather files used for the 2019 code cycle had not been updated since the 2013 code cycle and represented data only up until 2009. The Energy Commission and the Statewide Reach Code Team contend that the updated 2022 weather files better reflect changing climate conditions in California. Therefore, the 2022 files are used for all the analysis reported in this study.

2.6 Greenhouse Gas (GHG) Emissions Reductions
Equivalent CO2 emission reductions were calculated based on outputs from the CBECC-Res 2022.0.1 simulation software. GHG emissions resulting from electricity use vary by region and by hour of the year. CBECC-Res applies two distinct hourly profiles, one for Climate Zones 1 through 5 and 11 through 13 and another for Climate Zones 6 through 10 and 14 through 16. For natural gas, a fixed factor of 9.9 pounds (lbs) per therm is used. To compare the mixed-fuel and all-electric cases side-by-side, GHG emissions are calculated in CBECC-Res and presented as lbs CO2- equivalent (CO2e) emissions for the evaluated prototype.

1.113
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 20 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 3 Results
The primary objective of the evaluation is to identify cost-effective energy upgrade measures and packages for existing multifamily buildings, to support the design of local ordinances requiring upgrades, which may be triggered by different events, such as at the time of a significant remodel or addition. Cost-effectiveness analysis was completed for all climate zones based on multifamily prototype designs representing building features commonly used during each of three vintages. Table 13 through Table 18 summarize cost effectiveness of efficiency measures and packages. Costeffectiveness analysis was evaluated using both On-Bill and TDV cost-effectiveness criteria described in Section 2.5.

Detailed cost-effectiveness analysis results, along with energy savings are presented in Appendix D: CostEffectiveness Detail by Climate Zone in Table 29 through Table 112 by climate zone and building vintage. Site energy savings, cost savings, measure cost, and cost effectiveness including lifecycle B/C ratio and NPV of savings are provided. For climate zones that are served by multiple utilities, where cost effectiveness may differ based on applicable utility rates, cost-effectiveness results are reported for both applicable utility territories.

Where measures are dependent on climate zone and building vintage (envelope efficiency measures), cost effectiveness is reported for each vintage and climate zone. Some measure results do not differ between the vintages such as LED lamp replacement and water heating upgrades. The water heating and LED lighting measures are costeffective in all cases and are presented as a single line-item in each climate zone.

Cost effectiveness by metric for each climate zone and building vintage is represented by labor and color in Table 13 through Table 18 as summarized in Table 12.

Table 12: Results Table Legend
Cost Effectiveness Label
Cost-effective both On-Bill and TDV Both
Cost-effective TDV only, not On-Bill TDV
Cost-effective On-Bill only, not TDV On-Bill
Not cost-effective On-Bill or TDV N/A
Unless called out specifically, TDV cost effectiveness is based on the 2019 TDV, using the 2019 version of CBECCRes software. On-Bill cost effectiveness reflects savings based on the 2022 weather files.

The On-Bill results presented in Sections 3.1 through 3.5 reflect the mostly TOU tariffs described in Table 10. The Statewide Reach Code Team analyzed the impacts to utility costs and On-Bill cost-effectiveness when tiered and CARE utility rates are applied. CARE rates are approximately 35 percent lower than standard rates for electricity and 20 percent for natural gas. These results are presented in Section 3.6.

3.1 Building Envelope/Non-Preempted Measures
A summary of the cost effectiveness of individual efficiency measures is summarized in Table 13 based on both the On-Bill and 2019 TDV metrics.

R-49 Attic Insulation: R-49 attic insulation is cost-effective based on either On-Bill or TDV in pre-1992 vintage buildings except some coastal climates (Climate Zones 1, 3 and 5 through 7), and not cost-effective in 1992-2010 buildings because of lower energy savings.

1.114
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 21 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Air Sealing: Reducing building leakage by 30 percent alone is only cost-effective in a few cases in the hotter and colder climates.

Duct Sealing: Duct sealing to 15 percent of nominal airflow has the best economics of the envelope/duct measures in most climates and vintages and is cost-effective everywhere except Climate Zone 5 in 1978-1991 vintage buildings.

This measure was not evaluated for 1992-2010 vintage buildings because the base case already assumed 15 percent duct leakage.

New Ducts: Replacing old ductwork with new R-8 ducts sealed to five percent of nominal airflow is not as cost effective as sealing existing leaky ducts but is still cost-effective in many cases. It is not cost-effective in Climate Zones 1, 3, 5, and 6 in any vintage and is only cost-effective in a handful of climate zones in 1992-2010 vintage buildings.

Cool Roof: Cool roof is cost-effective for all vintages in Climate Zones 4 and 8 through 15. It is also cost-effective for buildings built before 1992 in Climate Zone 2, 6, 7, and 16.

Wall Insulation: Blowing in wall insulation into exterior walls is only practical in older buildings with no insulation installed in the wall cavities and was only evaluated for the pre-1978 vintage. It is cost-effective On-Bill and TDV in Climate Zones 1, 2, 4 in PG&E territory, and 10 through 16, and it is additionally cost-effective based on only TDV in Climate Zones 3, 4 in CPAU territory, 5, 8, and 9.

Floor Insulation: Insulating existing raised floors is only practical in older buildings with no insulation installed in the floor and was only evaluated for the pre-1978 vintage. It is cost-effective only in a few cases, in Climate Zones 1, 5, 11, 14, 15, and 16.

Window Replacement: Window replacements are only cost-effective in buildings built before 1992 in Climate Zones 10 through 15 in certain cases.

1.115
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 22 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 13: Summary of Multifamily Efficiency Measures – On-Bill & 2019 TDV Climate Zone 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Utility PG&E PG&E PG&E
PG&E
CPAU
PG&E
SCG

SCE SDG&E SCE SCE
SCE
SDGE
PG&E
PG&E
SMUD
PG&E
SCE
SDGE

SCE PG&E
R-49 Attic
Insulation
Pre1978
Both Both TDV Both TDV Both Both Both Both Both Both Both Both Both Both Both 1978-
1991 N/A Both N/A
Both
TDV N/A N/A N/A On-Bill TDV Both Both
Both
TDV
Both Both Both Both
1992-
2010 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Air
Sealing
Pre1978
Both N/A N/A N/A N/A N/A N/A N/A N/A TDV Both
Both
TDV
Both Both Both Both
1978-
1991
Both N/A N/A N/A N/A N/A N/A N/A N/A N/A Both TDV TDV
TDV
Both
TDV Both
1992-
2010 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A TDV N/A N/A N/A Duct
Sealing
Pre1978
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both 1978-
1991
Both Both TDV Both N/A Both Both Both Both Both Both Both Both Both Both Both New
Ducts
Pre1978 N/A Both N/ABoth
TDV N/A N/A On-Bill Both Both Both Both Both Both Both Both Both 1978-
1991 N/A TDV N/A
Both
TDV N/A N/A N/A Both Both Both Both Both Both Both Both Both 1992-
2010 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A TDV N/A Both TDV
Both
Both N/A

1.116
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 23 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Climate Zone 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Utility PG&E PG&E PG&E
PG&E
CPAU
PG&E
SCG

SCE SDG&E SCE SCE
SCE
SDGE
PG&E
PG&E
SMUD
PG&E
SCE
SDGE

SCE PG&E
Cool
Roof
Pre1978 N/A Both N/A Both N/A Both Both Both Both Both Both Both Both Both Both On-Bill 1978-
1991 N/A Both N/A
Both
TDV
N/A Both Both Both Both Both Both Both Both Both Both On-Bill 1992-
2010 N/A N/A N/A TDV N/A N/A N/A Both Both Both Both
Both
TDV
Both Both Both N/A
Insulate
Walls
Pre1978
Both Both TDV
Both
TDV
TDV N/A N/A TDV TDV Both Both Both Both Both Both Both
Insulate
Floor
Pre1978
Both N/A N/A N/A TDV N/A N/A N/A N/A N/A Both N/A N/A
TDV
Both
Both Both
Windows
Pre1978 N/A N/A N/A N/A N/A N/A N/A N/A N/A
N/A
On-Bill
Both
On-Bill
N/A
Both On-Bill Both N/A
1978-
1991 N/A N/A N/A N/A N/A N/A N/A N/A N/A
N/A
On-Bill
On-Bill N/A On-Bill
N/A
On-Bill
Both N/A

1.117
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 24 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

3.2 Envelope and Duct Packages
Cost effectiveness of the various envelope and duct packages are summarized in Table 14 based on both the On-Bill and 2019 TDV metrics. Cost effectiveness is better in older vintage buildings where potential for heating and cooling savings are higher.

1. R-49 Attic Insulation and Air Sealing: Increasing attic insulation to R-49 and air sealing the building is costeffective based on either On-Bill or TDV in all climates in pre-1978 buildings, and everywhere except Climate Zones 3 through 9 in 1978–1991 vintage buildings. Air sealing and attic insulation are less cost-effective in newer vintages and in mild climates where heating and cooling energy use is lower.

2. R-49 Attic Insulation and Duct Sealing: Increasing attic insulation to R-49 and duct sealing is cost-effective both On-Bill and TDV in all climates except Climate Zones 1, 3, 5, and 6 in 1978–1991 vintage buildings.

3. R-49 Attic Insulation, Air Sealing, and Duct Sealing: Duct sealing is more cost-effective than air sealing and attic insulation measures. Packaging these measures provides improved cost effectiveness relative to these measures on their own. This package of measures is cost-effective based on either On-Bill or TDV in all climates in pre-1978 buildings, and everywhere except Climate Zones 1, 3 and 5 through 7 in 1978–1991 vintage buildings.

The package is less cost-effective in newer vintages and in mild climates where heating and cooling energy use is lower.

4. R-49 Attic Insulation, Air Sealing, and New Ducts: Replacing ducts is less cost-effective than sealing existing leaky ducts so this package is generally less cost-effective than Package 3. This package of measures is costeffective based on either On-Bill or TDV in all climates in pre-1978 buildings except in Climate Zones 3 and 5, and everywhere except Climate Zones 1, 3 and 5 through 7 in 1978–1991 vintage buildings. The package is less costeffective in newer vintages and in mild climates where heating and cooling energy use is lower.

5. Advanced Envelope Package - R-49 Attic Insulation, Air Sealing, and Duct Sealing, plus Wall Insulation and New Windows: This package only applies to pre-1978 buildings without wall insulation. It is cost-effective On-Bill in Climate Zones 10 in SDG&E territory, 11, 12 in PG&E territory, and 13 through 16. Additionally, it is costeffective only based on TDV in Climate Zones 10 in SCE territory and 12 in SMUD territory.

3.3 Water Heating and Lighting Measures/Packages
Cost effectiveness of water heating and lighting measures are also summarized in Table 14.

Water Heating Package – Water Heater Blanket, Hot Water Pipe Insulation, and Low-Flow Fixtures: The package including these three water heating measures is cost-effective On-Bill in all climate zones and vintages. Cost effectiveness was evaluated on a customer On-Bill basis only. TDV cost effectiveness was not evaluated because the evaluation period was less than the 30-year evaluation period used for TDV.

Lighting Measures – LED Lamps and Exterior Photocell Control: Replacing either an existing CFL or incandescent lamp with an LED lamp is cost-effective in all climate zones and vintages. The lighting results in Appendix D: CostEffectiveness Detail by Climate Zone report cost effectiveness for replacement of CFLs with LED lamps. Savings for exterior photocell controls assume LED luminaires. Exterior photocell controls are cost-effective On-Bill in all cases except in Climate Zone 4 with CPAU rates and Climate Zone 12 with SMUD rates, where they are cost-effective only based on TDV.

1.118
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 25 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 14: Summary of Multifamily Efficiency Packages – On-Bill & 2019 TDV Climate Zone 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Utility PG&E PG&E PG&E
PG&E
CPAU
PG&E
SCG

SCE SDG&E SCE SCE
SCE
SDGE
PG&E
PG&E
SMUD
PG&E
SCE
SDGE

SCE PG&E
R-49 Attic &
Air Sealing
Pre1978
Both Both TDV
Both
TDV
TDV TDV On-Bill Both Both Both Both Both Both Both Both Both 1978-
1991
Both Both N/A N/A N/A N/A N/A N/A N/A
Both
TDV
Both
Both
TDV
Both Both Both Both
1992-
2010 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A R-49 Attic &
Duct Sealing
Package
Pre1978
Both Both Both Both
Both
TDV
Both Both Both Both Both Both Both Both Both Both Both
1978-
1991 N/A Both N/A
Both
TDV
N/A N/A On-Bill Both Both Both Both Both Both Both Both Both R-49, Air
Sealing &
Duct Sealing
Package
Pre1978
Both Both TDV Both TDV Both On-Bill Both Both Both Both Both Both Both Both Both 1978-
1991 N/A Both N/A
Both
TDV
N/A N/A N/A Both TDV Both Both Both Both Both Both Both 1992-
2010 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A R-49, Air
Sealing &
New Ducts
Package
Pre1978
On-Bill Both N/A
Both
TDV
N/A TDV On-Bill Both Both Both Both Both Both Both Both Both 1978-
1991 N/A TDV N/A TDV N/A N/A N/A Both Both Both Both
Both
TDV
Both Both Both Both
1992-
2010 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A TDV N/A N/A
TDV
N/A

1.119
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 26 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Climate Zone 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Utility PG&E PG&E PG&E
PG&E
CPAU
PG&E
SCG

SCE SDG&E SCE SCE
SCE
SDGE
PG&E
PG&E
SMUD
PG&E
SCE
SDGE

SCE PG&E
Advanced
Envelope
Package
Pre- 1978 N/A N/A N/A N/A N/A N/A N/A N/A N/A
TDV
Both
Both
Both
TDV
Both Both Both Both
Water
Heating
Package
All
Vintages
On-Bill On-Bill On-Bill On-Bill On-Bill On-Bill On-Bill On-Bill On-Bill On-Bill On-Bill On-Bill On-Bill On-Bill On-Bill On-Bill LED Lamps
All
Vintages
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both Exterior
Photosensor
All
Vintages
Both Both Both Both Both Both Both Both Both Both Both Both Both Both TDV
Both
TDV
Both

1.120
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 27 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

3.4 PV and Batteries
For this analysis, a PV system sized to offset the electricity use per the 2019 new construction standards by climate zone was evaluated. On-Bill and 2019 TDV cost effectiveness for PV and PV with batteries are summarized in Table

15. Cost effectiveness for PV is not affected much by building vintage. Both a PV system alone and a paired PV and battery system are cost-effective based on both On-Bill and TDV in all cases.

PV: PV systems are cost-effective in all climate zones and vintages based on both an On-Bill and TDV basis. 30-year On-Bill net benefits exceed $5,000 across all the IOU scenarios, but cost effectiveness is lower under both CPAU and SMUD municipal utility rates. Figure 1 summarizes both customer On-Bill and TDV lifecycle net benefits. PV cost effectiveness is not very sensitive to system size until the PV system size approaches net zero on an annual basis, or with very small systems which are more costly per kilowatt.

Figure 1: Net benefit - rooftop PV system sized to new construction standards (2-4 kW):
1978-1991.

PV and Batteries: Pairing a 2 kWh battery storage system (16 kWh for the 8-unit building) with a PV system sized to the 2019 new construction sizing criteria is cost-effective in all climate zones and vintages. Figure 2 and Figure 3 summarize customer On-Bill and TDV lifecycle net benefits for PV and Battery for the pre-1978 vintage and the 1992- 2010 vintage, respectively.

1.121
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 28 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Figure 2: Net benefit - rooftop PV + 16 kWh battery: pre-1978.

Figure 3: Net benefit - rooftop PV + 16 kWh battery: 1992-2010.

1.122
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 29 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 15: Summary of Multifamily PV & Batteries – On-Bill & 2019 TDV Climate Zone 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Utility PG&E PG&E PG&E
PG&E
CPAU
PG&E
SCG

SCE SDG&E SCE SCE
SCE
SDGE
PG&E
PG&E
SMUD
PG&E
SCE
SDGE

SCE PG&E
PV
All
Vintages
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both PV +
Battery
All
Vintages
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both

1.123
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 30 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

3.5 Equipment Fuel Substitution Measures
On-Bill and TDV (both 2019 and 2022) cost effectiveness for electric fuel substitution measures are summarized in Table 16 and Table 17. Cost-effectiveness for these measures is not as sensitive to building vintage as the building envelope and duct measures but HVAC heat pump installations in newer vintage buildings tend to be more costeffective than in older vintage buildings.

Heat Pump at HVAC Replacement: Cost-effectiveness of replacing a ducted furnace and air conditioner with a minimum efficiency ducted air-source heat pump is limited. It is cost-effective On-Bill in SMUD territory with SMUD’s favorable electricity rates relative to natural gas rates. It is also cost-effective On-Bill with newer vintage buildings in Climate Zone 15. In all other climates, shifting from natural gas to electricity for space heating results in both an increase in incremental lifecycle installed cost and utility costs. Incremental first costs are similar between a heat pump and gas furnace/AC, but because the assumed average equipment lifetime is 15 years for a heat pump compared to

17.5 years for the gas furnace/AC, lifetime incremental costs are slightly higher than first costs for heat pumps. TDV cost effectiveness is very different under the 2019 and 2022 metrics, and results are more favorable under the 2022 TDV and the upgrade is cost-effective based on 2022 TDV for a few scenarios. Figure 4 compares lifecycle net benefit of the heat pump installation based on customer On-Bill, 2019 TDV, and 2022 TDV for the 1978-1991 vintage building.

Cost effectiveness for a scenario without AC in the gas base case is not shown. In mild climates without AC, the higher incremental costs do not justify heat pump replacement unless the project is planning on installing AC at replacement.

Figure 4: Net benefit – minimum efficiency heat pump at HVAC replacement: 1978-1991.

1.124
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 31 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 High-Efficiency Heat Pump at HVAC Replacement: Cost-effectiveness of replacing a ducted furnace and air conditioner with a high-efficiency, 22 SEER, 11 HSPF ducted air-source heat pump is also limited. Higher efficiency provides operating cost savings in most cases, but incremental costs are also higher. It is cost-effective On-Bill only in Climate Zone 15 across all vintages and in Climate Zones 12 in SMUD territory and 13 in the pre-1978 vintage.

Figure 5: Net benefit – high-efficiency heat pump at HVAC replacement: 1978-1991.

1.125
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 32 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 HVAC Heat Pump + PV: Combining heat pump installation with a new PV system when replacing natural gas furnace/AC increases first costs but improves cost effectiveness substantially (see Figure 6 and Table 17). PV offsets additional electricity used by the heat pump, resulting in net energy cost savings and On-Bill cost effectiveness in all cases. Adding the $3,181 cost to upgrade the main service panel, the combination of these measures is still costeffective in most cases (see Figure 7).

Figure 6: Net benefit – min efficiency heat pump at HVAC replacement + PV: 1978-1991.

Figure 7: Net benefit – min efficiency heat pump at HVAC replacement + PV + panel upgrade: 1978-1991.

1.126
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 33 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Heat Pump at DHW Replacement: Cost effectiveness of replacing a natural gas storage water heater with a minimum efficiency HPWH is limited under customer On-Bill and 2019 TDV metrics. Due to higher incremental costs and operating costs relative to natural gas storage water heaters, it is only cost-effective On-Bill in SMUD territory due to the favorable electricity utility rates relative to natural gas rates. A HPWH is cost-effective in all climate zones except 1 and 16 based on 2022 TDV economics. Figure 8 compares lifecycle net benefit of the HPWH installation for customer On-Bill, 2019 TDV, and 2022 TDV, showing how cost effectiveness is positive for most climates based on 2022 TDV.

Figure 8: Net benefit – minimum efficiency HPWH at DHW replacement: 1978-1991.

1.127
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 34 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 High-Efficiency Heat Pump at DHW Replacement: Cost effectiveness improves when replacing a natural gas storage water heater with a NEEA Tier 3 HPWH but still is limited under customer On-Bill and 2019 TDV metrics.

Higher efficiency equipment results in operating cost savings in most cases, but due to higher incremental costs it is only cost-effective On-Bill in SMUD territory. Similar to the minimum efficiency HPWH case, the high-efficiency HPWH is cost-effective based on 2022 TDV in all climate zones except 16. Figure 9 compares lifecycle net benefit of the HPWH installation for customer On-Bill, 2019 TDV, and 2022 TDV, showing how cost effectiveness is positive for most climates based on 2022 TDV.

Figure 9: Net benefit – high-efficiency HPWH at DHW replacement: 1978-1991.

1.128
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 35 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 HPWH + PV: Combining installation of PV with a HPWH at the time of water heater replacement increases first costs but improves On-Bill cost effectiveness (see Figure 10 and Table 17). PV offsets additional electricity used by the HPWH, resulting in net energy cost savings and positive customer On-Bill cost effectiveness in all cases. If the $3,181 cost to upgrade the main service panel is included in the first cost, the combination of these measures is still costeffective in most cases (see Figure 11).

Figure 10: Net benefit – min efficiency HPWH at DHW replacement + PV: 1978-1991.

Figure 11: Net benefit – min efficiency HPWH at DHW replacement + PV + Panel Upgrade:
1978-1991.

1.129
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 36 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 16: Summary of Multifamily Equipment Fuel Substitution– On-Bill & TDV – Federal Minimum Efficiency Climate Zone 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Utility PG&E PG&E PG&E
PG&E
CPAU
PG&E
SCG

SCE SDG&E SCE SCE
SCE
SDGE
PG&E
PG&E
SMUD
PG&E
SCE
SDGE

SCE PG&E
Heat Pump at HVAC Replacement
2019
TDV
Pre1978 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A On-Bill

N/A N/A N/A N/A
1978-
1991 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
N/A
On-Bill

N/A N/A N/A N/A
1992-
2010 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
N/A
On-Bill
N/A N/A On-Bill N/A
2022
TDV
Pre1978 N/A TDV TDV TDV N/A N/A N/A N/A N/A N/A TDVTDV Both

TDV N/A N/A N/A
1978-
1991 N/A TDV TDV N/A N/A N/A N/A N/A N/A N/A TDV
TDV
Both N/A N/A N/A N/A
1992-
2010 N/A N/A TDV N/A N/A N/A N/A N/A N/A N/A N/A
N/A
On-Bill
N/A N/A On-Bill N/A
HPWH at DHW Replacement
2019
TDV
Pre1978 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
N/A
On-Bill

N/A N/A N/A N/A
1978-
1991 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
On-Bill

N/A N/A N/A N/A
1992-
2010 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
On-Bill

N/A N/A N/A N/A
2022
TDV
Pre1978 N/A TDV TDV TDV TDV TDV TDV TDV TDV TDV TDVTDV Both

TDV TDV TDV N/A
1978-
1991 N/A TDV TDV TDV TDV TDV TDV TDV TDV TDV TDV
TDV
Both

TDV TDV TDV N/A
1992-
2010 N/A TDV TDV TDV TDV TDV TDV TDV TDV TDV TDV
TDV
Both

TDV TDV TDV N/A

1.130
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 37 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 17: Summary of Multifamily Equipment Fuel Substitution + PV – On-Bill & TDV – Federal Minimum Efficiency Climate Zone 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Utility PG&E PG&E PG&E
PG&E
CPAU
PG&E
SCG

SCE SDG&E SCE SCE
SCE
SDGE
PG&E
PG&E
SMUD
PG&E
SCE
SDGE

SCE PG&E
Heat Pump + PV at HVAC Replacement
2019
TDV
Pre1978
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both On-Bill 1978-
1991
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both On-Bill 1992-
2010
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both 2022
TDV
Pre1978
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both 1978-
1991
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both 1992-
2010
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both HPWH + PV at DHW Replacement
2019
TDV
Pre1978
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both On-Bill 1978-
1991
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both On-Bill 1992-
2010
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both On-Bill 2022
TDV
Pre1978
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both 1978-
1991
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both 1992-
2010
Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both Both

1.131
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 38 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 PV and Electric Readiness Measures: Electric ready measures do not result in any energy savings, but combining electric ready measures with installation of PV provides a path to finance needed prewiring and service panel upgrades and reduce fuel substitution costs when appliances are replaced at end of useful life (see Figure 12 and Table 18).

Upgrading the main service panel and pre-wiring for future space and water heating heat pumps with installation of a PV system is cost-effective On-Bill in all cases except in Climate Zone 4 with CPAU rates and Climate Zone 12 with SMUD rates due to reduced cost effectiveness of PV with those municipal rates. It is cost-effective based on TDV in all climate zones.

Figure 12: Net benefit – PV and electric readiness: 1978-1991.

1.132
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 39 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 18: Summary of Multifamily Electric Ready Measures at PV Install – On-Bill & 2019 TDV Climate Zone 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Utility PG&E PG&E PG&E
PG&E
CPAU
PG&E
SCG

SCE SDG&E SCE SCE
SCE
SDGE
PG&E
PG&E
SMUD
PG&E
SCE
SDGE

SCE PG&E
2019
TDV
Pre1978
Both Both Both
Both
TDV
Both Both Both Both Both Both Both
Both
TDV
Both Both Both Both
1978-
1991
Both Both Both
Both
TDV
Both Both Both Both Both Both Both
Both
TDV
Both Both Both Both
1992-
2010
Both Both Both
Both
TDV
Both Both Both Both Both Both Both
Both
TDV
Both Both Both Both

1.133
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 40 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

3.6 TOU, Tiered, and CARE Tariff Comparison
The following results compare IOU utility cost savings for one efficiency, one electrification, and one solar PV measure in existing multifamily homes across TOU, tiered, and CARE tariffs. Table 10 and Table 11 describe the tariffs that were applied. A CARE discount was evaluated for both the TOU and tiered electricity tariffs as well as the gas tariffs.

Applying the residential tiered and TOU electricity rates result in very similar energy costs, within 10% annually throughout the state. In most climate zones, costs using tiered rates are slightly lower than with the TOU rate.

CARE rates are 30-35% lower than standard tiered or TOU electricity rates and 20% lower than natural gas rates. Reduced monthly energy costs from the CARE rate structure impacts cost-effectiveness depending on the energy savings profile of the measure.

Figure 13 through Figure 15 present results for a pre-1978 multifamily dwelling unit for an attic insulation upgrade from R-11 to R-49. The first figure shows annual utility costs (gas and electricity) with R-49 attic insulation. The last two figures present first year utility cost savings and 30-year net present value for the efficiency upgrade.

Observations:
• The CARE tariff substantially reduces utility costs and as a result reduces the cost savings from the efficiency upgrade. Generally, the tariff selected does not impact the cost-effective outcome. However, in one instance (Climate Zone 6) the measure is not cost-effective under a CARE tariff where it is under a non-CARE tariff.
• Annual utility costs are lower under a tiered tariff than a TOU tariff in most climate zones. In Climate Zones 1, 3, and 5 (PG&E) the tiered tariff results in slightly higher costs than the TOU. Reduced energy costs and cost savings associated with a tiered rate reduce cost-effectiveness (except Climate Zone 1).

1.134
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 41 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Figure 13: First year total utility costs after R-49 attic insulation upgrade.

1.135
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 42 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Figure 14: First year utility cost savings for adding R-49 attic insulation compared to existing R-11.

Figure 15: 30-year net present value for adding R-49 attic insulation compared to existing R-11.

1.136
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 43 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Figure 16 through Figure 18 present results for a fuel substitution measure for a pre-1978 multifamily dwelling unit. This measure covers installation of a split ducted heat pump in place of a ducted gas furnace and air conditioner at time of replacement. The first figure shows annual utility costs after the replacement. The last two figures present first year utility cost savings and 30-year net present value for the heat pump upgrade.

Observations:
• The CARE tariff reduces electricity costs more than natural gas utility costs. As a result, the increase in utility cost when switching from gas to electric heating (based on the current rates) is lower and the cost-effectiveness improves with a CARE tariff versus non-CARE. In some instances, total utility costs decrease enough that in Climate Zones 1, 3, 11, 12, & 13 the cost-effectiveness outcome is changed for the measure, and it is cost effective under a CARE tariff while not under a non-CARE tariff. o While not shown, the trends for the heat pump at DHW replacement measure are similar.

However, because the incremental cost for the water heating measure is much more than for the space heating measure there is no shift in cost-effectiveness conclusions. The measure is not cost effective under either the non-CARE or CARE tariffs. • Annual utility costs are lower under a tiered than a TOU tariff in Climate Zones 4 and 6 through 15. The opposite is true in the other climate zones. In all cases annual TOU and tiered costs are within 10%.

When switching from gas to electric heating utility costs increase, but the increase is less and therefore the cost-effectiveness improves under a TOU tariff compared to a tiered tariff in every climate zone exception Climate Zone 15.

1.137
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 44 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Figure 16: First year annual utility cost after replacement of gas furnace with a split heat pump.

1.138
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 45 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Figure 17: First year utility cost savings for a minimum efficiency heat pump compared to gas furnace and A/C.

Figure 18: 30-year net present value for a minimum efficiency heat pump compared to gas furnace and A/C.

1.139
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 46 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Figure 19 through Figure 21 present results for the PV system measure for a pre-1978 multifamily dwelling unit. the PV system was sized to the 2019 new construction standards for a 6,960 square foot building (see Table 3 for sizing details). The first figure shows annual utility costs after the replacement. The last two figures present first year utility cost savings and 30-year net present value for the heat pump upgrade.

Observations:
• Across all scenarios this measure is cost effective.
• Similar to the attic insulation case, the CARE tariff substantially reduces utility costs and as a result reduces the cost savings from the addition of a PV system. However, the tariff selected does not impact the costeffective outcome. • Annual utility costs are lower under a tiered than a TOU tariff in all climate zones. In PG&E and SDG&E territories, annual electricity costs are about 15 percent lower with the tiered than the TOU tariffs. In SCE territory, the difference is much larger and the tiered electricity costs are on average about 40 percent lower.

This is because the baseline rate under SCE’s tiered tariff is quite low and with a PV system it’s likely all the electricity use is under the baseline threshold.

1.140
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 47 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Figure 19: First year annual utility cost after installation of a PV system.

1.141
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 48 Results
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Figure 20: First year utility cost savings for a PV system.

Figure 21: 30-year net present value for a PV system.

1.142
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 49 Recommendations and Discussions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 4 Recommendations and Discussions
This analysis evaluated the feasibility and cost effectiveness of retrofit measures in California existing multifamily buildings built before 2010. The Statewide Reach Code Team used both On-Bill- and TDV-based LCC approaches to evaluate cost effectiveness and quantify the energy cost savings associated with energy efficiency measures compared to the incremental costs associated with the measures.

4.1 Recommended Efficiency Measures
Based on the analysis, the following cost-effective measures or packages of measures are recommended where they are found to be cost-effective in Section 3. Descriptions of each measure or package and the relevant recommended requirements are provided below. In most cases, exceptions are defined which would exempt a particular project from a measure under certain conditions. These exceptions are based on existing on-site conditions and cost effectiveness.

Attic Insulation: In vented attics, insulation shall be installed to achieve a weighted U-factor of 0.020 or insulation installed at the ceiling level shall result in an installed thermal resistance of R-49 or greater for the insulation alone.

This measure applies to buildings according to vintage and climate zone as defined in Table 13.

Exception 1: Buildings with at least R-38 existing insulation installed at the ceiling level.

Exception 2: Buildings where the alteration would directly cause the disturbance of asbestos unless the alteration is made in conjunction with asbestos abatement.

Exception 3: Buildings with knob and tube wiring located in the vented attic.

Exception 4: Where the accessible space in the attic is not large enough to accommodate the required Rvalue, the entire accessible space shall be filled with insulation provided such installation does not violate roof ventilation clearance requirements in Section 806.3 of Title 24, Part 2.5.

Exception 5: Where the attic space above the altered dwelling unit is shared with other dwelling units and the attic insulation requirement is not triggered for the other dwelling units.

Air Sealing: Seal all accessible cracks, holes, and gaps in the building envelope at walls, floors, and ceilings. Pay special attention to penetrations including plumbing, electrical, and mechanical vents, and windows. Weather-strip doors if not already present. Verification shall be conducted following a prescriptive checklist8 that outlines which building aspects need to be addressed by the permit applicant and verified by an inspector. Compliance can also be demonstrated with blower door testing showing at least a 30 percent reduction from pre-retrofit conditions. This measure applies to buildings according to vintage, building type and climate zone as defined in Table 13.

Exception 1: Buildings that can demonstrate blower door test results showing five ACH50 or lower or can otherwise demonstrate that air sealing meeting the requirements of this ordinance was conducted within the last 12 months.

Duct Sealing: Air seal all space conditioning ductwork to meet the requirements of the 2019 Title 24, Part 6 Section 150.2(b)1E (15 percent maximum leakage). See Appendix C: Standards Sections for additional details on the requirements per Title 24, Part 6. The duct system must be tested to confirm that the requirements have been met.

Cost effectiveness included costs for a third-party HERS Rater to verify the duct sealing. This measure applies to buildings according to vintage, building type and climate zone as defined in Table 13.

Exception 1: All exceptions as stated in the 2019 Title 24, Part 6 Section 150.2(b)1E are allowed. 8 This checklist was not developed as part of this analysis.

1.143
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 50 Recommendations and Discussions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Exception 2: Buildings without ductwork or where the ducts are in conditioned space.

New Ducts: Replace existing space conditioning ductwork with new R-8 ducts that meet the requirements of 2019 Title 24, Part 6 Section 150.0(m)11, with the exception that the maximum duct leakage be reduced from the current code requirement of 12 percent to five percent in alignment with the requirement for single family homes. This measure applies to buildings according to vintage and climate zone as defined in Table 13.

Exception 1: Buildings without ductwork or where the ducts are in conditioned space.

Windows: Replace existing windows with high performance windows with an area weighted average U-factor no greater than 0.32.

Exception 1: All exceptions as stated in the 2019 Title 24, Part 6 Section 150.1©3A are allowed.

Exception 2: Buildings where it is not feasible to meet the performance requirements as a result of historic preservation design guidelines or other reasons as determined by the jurisdiction.

Window upgrades were only found to be cost-effective in Climate Zones 10 through 15 for certain scenarios and in Climate Zones 9 through 16 as part of the Advanced Envelope Package in pre-1978 vintage buildings (see Table 13 and Table 14). Because the cost requirement for window replacement is significant and the margin for cost effectiveness is lower than many other measures, it is recommended that jurisdictions consider whether a window replacement requirement is appropriate and only require it for large projects where the additional cost is small relative to total cost.

Wall Insulation: Older vintage buildings with no insulation in exterior walls shall be insulated to achieve a weighted Ufactor of 0.102 or insulation installed in the exterior wall cavity shall result in an installed thermal resistance of R-13 or greater for the insulation alone. This measure applies to buildings according to vintage and climate zone as defined in Table 13.

Floor Insulation: Older vintage buildings with no insulation in exterior raised floors shall be insulated to achieve a weighted U-factor of 0.037 or insulation installed in the floor cavity shall result in an installed thermal resistance of R-19 or greater for the insulation alone. This measure applies to buildings according to vintage and climate zone as defined in Table 13.

Cool Roof: When replacing a roof, install a roofing product rated by the Cool Roof Rating Council to have an aged solar reflectance equal to or greater than 0.25, and a thermal emittance equal to or greater than 0.75, regardless of the compliance approach (prescriptive or performance). This measure only applies to steep slope roofs (ratio of rise to run greater than 2:12) and to buildings that are installing a new roof as part of the scope of the remodel and where more than 50 percent of the roof is being replaced. This applies only to certain buildings according to vintage, building type, and climate zone as defined in Table 13. Low slope roofs (ratio of rise to run of 2:12 or less) shall meet the requirements of Section 150.2(b)1Iii of 2019 Title 24, Part 6. See Appendix C: Standards Sections for additional details on the requirements per Title 24, Part 6.

Exception 1: Projects that are not installing a new roof as part of the scope. Only areas of roof that are to be reroofed are subject to the cool roof upgrade.

Exception 2: All exceptions as stated in the 2019 Title 24, Part 6 Section 150.2(b)1Ii for steep slope roofs and 150.2(b)1Iii for low slope roofs are allowed.

Envelope and Duct Packages: Air sealing of the boundary between the attic and living space should be addressed any time there is significant work in the attic, such as adding attic insulation and sealing or replacing ductwork. At time of building shell improvement, air sealing is an important component to be addressed. The boundary between the living space and vented attics is where a significant amount of building air leakage can occur and sealing these areas prior to covering the attic floor with insulation is both practical and effective. For this reason, several envelope and duct

1.144
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 51 Recommendations and Discussions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 packages were evaluated and are recommended when cost-effective. Detailed requirements and relevant exceptions are listed above for the individual measures.

Attic Insulation, Air Sealing, and Duct Packages: Jurisdictions may consider applying these package requirements when an entirely new or complete replacement duct system is installed in a vented attic space, in alignment with the 2022 Title 24, Part 6 code requirements. Addressing air sealing and attic insulation when attic ductwork is being replaced avoids lost opportunities to improve the building shell. While replacing ductwork the contractor accesses most areas of the ceiling and there are efficiencies to be gained with performing air sealing at the same time. Addressing air sealing and ceiling insulation when HVAC systems and ductwork are being replaced provides the potential ability to downsize equipment by reducing heating and cooling loads.

Advanced Envelope Package: This package only applies to older vintage buildings with single-pane windows and no exterior wall insulation where cost-effective as defined in Table 14. Because the incremental cost of this package is significantly higher than other packages, jurisdictions may wish to consider placing a limit on the incremental cost relative to the total project cost, limiting the requirement to large projects.

Water Heating Package: Add exterior insulation meeting a minimum of R-6 to existing storage water heaters. Insulate all accessible hot water pipes with pipe insulation a minimum of ¾ inch thick. This includes insulating the supply pipe leaving the water heater, piping to faucets underneath sinks, and accessible pipes in attic spaces or crawlspaces.

Upgrade fittings in sinks and showers to meet current CALGreen (Title 24, Part 11) requirements.

Exception 1: Water heater blanket is not required on water heaters less than 20 gallons.

Exception 2: Water heater blanket not required if application of a water heater blanket voids the warranty on the water heater.

Exception 3: Fixtures with rated or measured flow rates no more than ten percent greater than current CALGreen requirements.

Lighting Measures – LED Lamps and Exterior Photocell Sensors: Replace all interior and exterior screw-in incandescent, halogen, and compact fluorescent lamps with screw-in LED lamps. Install photocell controls on all exterior lighting luminaires.

Installation of PV: Install a PV system that meets the requirements of 2019 Title 24, Part 6 Section 150.1(c)14.

Alternatively, a smaller PV system can be required as analysis found that cost-effectiveness results do not change appreciably with a PV system as small as one kWDC.

Exception 1: All exceptions as stated in the 2019 Title 24, Part 6 Section 150.1(c)14 are allowed.

Exception 2: A smaller PV system may be installed if the proposed system capacity is larger than the maximum size allowed by the electric utility based on NEM requirements.

Installation of PV and Battery: Install a PV system that meets the requirements of 2019 Title 24, Part 6 Section 150.1(c)14 and a battery system that meets the requirements of 2019 Title 24, Part 6 Joint Appendix 12. Combining PV with a battery system is cost-effective both On-Bill and TDV as shown in Table 15; however, battery systems are not cost-effective on their own without the energy savings from the PV system.

Alternatively, instead of requiring a battery system battery-ready measures could be required with a PV installation including locating and reserving a zone for installation of a battery storage system, running conduit for a future battery storage system, and possibly panel upgrades if the main service panel is replaced as part of the scope of work.

Exception 1: All exceptions as stated in the 2019 Title 24, Part 6 Section 150.1(c)14 are allowed.

1.145
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 52 Recommendations and Discussions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

4.2 Fuel Substitution Measures
HVAC Heat Pump: Replace an existing ducted natural gas furnace/AC with a ducted heat pump at time of equipment replacement. This measure applies to buildings according to climate zone as defined in Table 16 and Table 17, and summarized in Figure 4, Figure 5, Figure 6, and Figure 7. While it is cost-effective based on 2022 TDV in some conditions, replacement of the HVAC equipment with a minimum efficiency heat pump results in higher utility costs in most cases, resulting in negative impact on customer’s ability to recover costs. Operating costs are sensitive to utility rate structures and changes in natural gas and electricity rates. As shown in Climate Zone 12 with SMUD rates, installing a heat pump can result in lower utility costs. Installing high-efficiency heat pumps can improve costeffectiveness and lower operating costs but cannot be used for the basis of a reach code.

Installation of PV in addition to replacing a gas furnace/AC with a heat pump increases first cost but results in reduced utility costs and positive On-Bill cost effectiveness in most cases.

Exception 1: Non-ducted space conditioning systems and systems without central air conditioning.

Exception 2: Ducted space conditioning systems where only the gas furnace is replaced.

Exception 3: The main service panel does not have the capacity or space to accommodate an additional 240 V, 30 A circuit, and the cost to upgrade the main service panel and run required electrical service to the heat pump air handler is prohibitive as determined by the jurisdiction.

HPWH: Replace an existing natural gas storage water heater with a heat pump at time of equipment replacement.

This measure applies to buildings according to climate zone as defined in Table 16 and Table 17, and summarized in Figure 8, Figure 9, Figure 10, and Figure 11. This measure is cost-effective based on 2022 TDV in all climate zones except 1 and 16, but installation of a HPWH to replace an existing storage tank water heater can result in higher utility costs. Like the space conditioning heat pump, operating costs are sensitive to utility rate structures and future changes in natural gas and electricity rates. Installing a HPWH in Climate Zone 12 with SMUD rates results in lower utility costs.

Like space conditioning heat pumps, installing higher efficiency equipment lowers operating costs but cannot be used for the basis of a reach code.

While replacing an electric resistance water heater wasn’t directly evaluated, cost effectiveness will only improve relative to a gas water heater baseline as incremental costs will be similar and utility cost savings will be greater. This was evaluated in the Residential Energy Savings and Process Improvements for Additions and Alterations 2022 CASE analysis and was found to be cost effective for multifamily buildings using the 8-unit prototype in all climate zones except 16 (Statewide CASE Team, 2020b).

Installation of PV in addition to replacing an existing water heater with a HPWH significantly increases first cost but results in reduced utility costs and positive On-Bill cost effectiveness in all cases. While not evaluated in this report, 120V HPWHs are starting to enter the market and may be considered in future evaluations by the Statewide Reach Code Team.

This requirement applies when replacing an existing water heater under the following conditions:

1. Natural gas, propane, or electric resistance water heater located in a vented closet with adequate space and ventilation or a garage, and

2. There is adequate space in the main service panel for a 240 V, 30 A dedicated breaker.

Exception 1: The proposed location of the new water heater is within conditioned space.

Exception 2: The proposed location of the replacement water heater is not large enough to accommodate a HPWH equivalent in size and one-hour capacity rating to the existing water heater or the next nominal size available.

1.146
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 53 Recommendations and Discussions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Exception 3: The main service panel does not have the capacity or space to accommodate an additional 240 V, 30 A circuit, or the cost to upgrade the main service panel and run required electrical service to the water heater is prohibitive as determined by the jurisdiction.

Exception 4: A solar water heating system is installed meeting the installation criteria specified in Reference Residential Appendix RA4.4.20 and with a minimum solar savings fraction of 60 percent.

PV and Electric Readiness Measures: Install a PV system and wiring for 240 V power to the furnace location and the water heater location and upgrade the main service panel to allow for installation of electric appliances at a future date. The requirements include the following:

1. Heat Pump Space Heater Ready
a. Install a dedicated 240 volt branch circuit wiring within 3 feet from the existing furnace and accessible to the furnace with no obstructions. The branch circuit conductors shall be rated at 30 amps minimum.

The blank cover shall be identified as “240V ready”. All electrical components shall be installed in accordance with the California Electrical Code.
b. The main electrical service panel shall have a reserved space to allow for the installation of a double pole circuit breaker for a future heat pump space heater installation. The reserved space shall be permanently marked as “For Future 240V use”.

Exception 1: The building does not have existing central ducted heating or cooling system.

Exception 2: The building already has a heat pump for space heating.

2. Heat Pump Water Heater Ready
a. Install a dedicated 240 volt branch circuit wiring within three feet from the existing water heater and accessible to the water heater with no obstructions. The branch circuit conductors shall be rated at 30 amps minimum. The blank cover shall be identified as “240V ready”. All electrical components shall be installed in accordance with the California Electrical Code. b. The main electrical service panel shall have a reserved space to allow for the installation of a double pole circuit breaker for a future heat pump space heater installation. The reserved space shall be permanently marked as “For Future 240V use”.

Exception 1: The proposed location of the new water heater is located within conditioned space.

Exception 2: The proposed location of the replacement water heater is not large enough to accommodate a heat pump water heater equivalent in size and one-hour capacity rating to the existing water heater or the next larger nominal size available.

Exception 3: The building already has a heat pump water heater.

3. Upgrade existing main service panel to a minimum 200 A panel to accommodate future connection of electric appliances.

Exception 1: The existing main service panel can be documented by an electrician or engineer to have sufficient capacity for the following electrical appliances: space heating, water heating, cooking, clothes drying, and Level 2 electric vehicle service equipment.

Exception 2: The building already uses electric appliances for space heating, water heating, cooking, and clothes drying.

1.147
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 54 Recommendations and Discussions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

4.3 Other Considerations
Measure Tradeoffs for Energy Performance Equivalency: Jurisdictions that wish to provide more flexibility than a prescriptive approach that requires the installation of specific measures or packages, may specify a target performance level based upon the potential savings from the cost-effective measures. This flexible approach expands the menu of available measure options beyond only cost-effective measures. It allows (but does not require) owners to select measures that are not cost-effective based on the analysis but that may be more appropriate for the specific project scope. The combination of measures must achieve equivalent site energy savings as the target performance level or score.

A jurisdiction may quickly develop an ordinance using this flexible approach in the Cost-Effectiveness Explorer9 tool developed by the Statewide Reach Code Team. The tool walks the user through the process and allows the user to test various scenarios. Once complete, draft policy options (including weighted measure menu tables and draft model ordinance language) can be downloaded and shared with colleagues to gather feedback and refine requirements.

Tiered and CARE Tariffs: Whether a customer is on a TOU or tiered rate generally won’t impact the results of this analysis as total utility costs under these two rate options were found to be within 10 percent of one another. Homes with PV systems are the exception where there are larger differences in total utility costs. Even so, this didn’t impact cost effectiveness in the scenarios evaluated by the Reach Code Team because PV is so cost effective.

CARE tariffs can have a substantial impact on total utility costs and can change whether a measure is cost effective depending on how beneficial the measure is. For efficiency measures the CARE tariff decreases how cost-effective a measure is and in some cases an efficiency measure may be cost-effective under a non-CARE tariff but not under a CARE tariff. The opposite is true for fuel substitution measures. There is a larger reduction in electricity rates relative to natural gas rates in the CARE tariffs, and as a result utility savings for fuel substitution measures increase. In some cases, a fuel substitution measure may not be cost-effective under a non-CARE tariff but is under a CARE tariff.

It’s important to consider these impacts carefully when developing a local ordinance. Complete results for all measures presented in this report for tiered and CARE rates will be available on the Cost-Effectiveness Explorer. 9 HERS Rater Field Verification: HERS Rater field verification applies to duct sealing and new duct measures. It also may be required for other measures depending on the project work scope.

Combustion Appliance Safety and Indoor Air Quality: Implementation of some of the recommended measures will affect the pressure balance of the home which can subsequently impact the safe operation of existing combustion appliances as well as indoor air quality. Buildings with older gas appliances can present serious health and safety problems which may not be addressed in a remodel if the appliances are not being replaced. It is recommended that the building department require inspection and testing of all combustion appliances after completion of the retrofit work.

It is also recommended that jurisdictions require combustion safety testing by a certified professional whenever air sealing and insulation measures are applied, and existing combustion appliances are located within the pressure boundary of the building.

Jurisdictions may also want to consider requiring mechanical ventilation in buildings where air sealing has been conducted. In older buildings, outdoor air is typically introduced through leaks in the building envelope. After air sealing a building, it may be necessary to forcefully bring in fresh outdoor air using supply and/or exhaust fans to minimize potential issues associated with poor indoor air quality.

Required Measures Included in Title 24, Part 6 Performance Simulation: If any of the measures above are included in a performance Title 24, Part 6 compliance report, it’s suggested that trade-offs be allowed as long as all minimum code requirements are met. For example, if a project is installing new windows, a new roof, and insulating the 9 https://explorer.localenergycodes.com/

1.148
Cost-Effectiveness Analysis: Multifamily Existing Building Efficiency Upgrades 55 Recommendations and Discussions
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 attic and is demonstrating Title 24, Part 6 compliance with a performance simulation run, it would be acceptable if the installed roof did not meet the requirements listed above as long as this was traded off with either an increase in attic insulation or better performing windows. This would also allow trade-offs for projects that are installing high impact measures, such as solar water heating or whole house fans.

This would require two simulation runs; however, it’s not expected this approach would be utilized often. • Run number one would evaluate the proposed building upgrades. This would also be the report submitted to the building department for the permit application demonstrating compliance with Title 24, Part 6. • Run number two would also be completed with the minimum ordinance requirements modeled for each of the affected building components.

To show compliance with the ordinance the applicant would need to demonstrate that the proposed upgrades in run one would result in annual TDV energy use equal to or less than the annual TDV energy use of the case based on the ordinance requirements in run two.

1.149
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 5 References
AHRI. (2021, December 30). Central Air Conditioners and Air-Source Heat Pumps. Retrieved from AHRI website:
https://www.ahrinet.org/resources/statistics/historical-data/central-air-conditioners-and-air-sourceheat-pumps Barbose, G., & Darghouth, N. (2019, October). Tracking the Sun. Pricing and Design Trends for Distributed Photovoltaic Systems in the United States 2019 Edition. Retrieved from https://emp.lbl.gov/sites/default/files/tracking_the_sun_2019_report.pdf California Energy Commission. (2017). Rooftop Solar PV System. Measure number: 2019-Res-PV-D Prepared by Energy and Environmental Economics, Inc. Retrieved from https://efiling.energy.ca.gov/getdocument.aspx?tn=221366 California Energy Commission. (2018). 2019 Building Energy Efficiency Standards for Residential and Nonresidential Buildings. CEC-400-2018-020-CMF. California Energy Commission. Retrieved from https://ww2.energy.ca.gov/2018publications/CEC-400-2018-020/CEC-400-2018-020-CMF.pdf.

California Energy Commission. (May 2020). Time Dependent Valuation of Energy for Developing Building Efficiency Standards: 2022 Time Dependent Valuation (TDV) and Source Energy Metric Data Sources and Inputs. Energy & Environmental Economics. Retrieved from https://efiling.energy.ca.gov/GetDocument.aspx?tn=233345&DocumentContentId=65837 California Public Utilities Commission. (2021a). Database for Energy-Efficient resources (DEER2021 Update).

Retrieved April 13, 2021, from DEER Resources: http://www.deeresources.com/index.php/deerversions/deer2021 California Public Utilities Commission. (2021b). Utility Costs and Affordability of the Grid of the Future: An Evaluation of Electric Costs, Rates, and Equity Issues Pursuant to P.U. Code Section 913.1. Retrieved from https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/office-of-governmental-affairsdivision/reports/2021/senate-bill-695-report-2021-and-en-banc-whitepaper_final_04302021.pdf CONSOL. (January 2010). Water Use in the California Residential Home. California Homebuilding Foundation.

Retrieved from https://wordpressstorageaccount.blob.core.windows.net/wp-media/wpcontent/uploads/sites/833/2018/10/2010-chf_water_use_in_the_California_Residential_Home-.pdf.

Consortium for Energy Efficiency. (January 2014). Residential Lighting Controls Market Characterization.

Consortium for Energy Efficiency. Retrieved from https://library.cee1.org/content/cee-residentiallighting-controls-market-characterization Davis Energy Group. (2017). Large scale residential retrofit program : final project report. CEC-500-2017-009.

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

Retrieved from https://www.etcc-ca.com/reports/behind-meter-battery-market-study?dl=1582149166 Energy & Environmental Economics. (April 2019). Residential Building Electriication in California. Energy & Environmental Economics. Retrieved from https://www.ethree.com/wpcontent/uploads/2019/04/E3_Residential_Building_Electrification_in_California_April_2019.pdf Horii, B., Cutter, E., Kapur, N., Arent, J., & Conotyannis, D. (2014). Time Dependent Valuation of Energy for Developing Building Energy Efficiency Standards.

1.150
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 KEMA, Inc. (February 2010). Final Evaluation Report: Upstream Lighting Program, Vol. 1. KEMA, Inc. Retrieved from
http://www.calmac.org/publications/FinalUpstreamLightingEvaluationReport_Vol1_CALMAC_3.pdf National Renewable Energy Laboratory. (2021). U.S. Solar Photovoltaic System and Energy Storage Cost Benchmark: Q1 2020. Retrieved from https://www.nrel.gov/docs/fy21osti/77324.pdf Sacramento Municipal Utility District. (2020). SMUD Residential Electrification Project Costs. Sacramento Municipal Utility District (SMUD). Retrieved from
https://efiling.energy.ca.gov/GetDocument.aspx?tn=234862&DocumentContentId=67717 Self Generation Incentive Program. (2020). Retrieved from http://localenergycodes.com/download/430/file_path/fieldList/PV%20Plus%20Battery%20Storage%20R eport
Solar Energy Industries Association. (2021, December 30). Solar Industry Research Data. Retrieved from Solar Energy Industries Association website: https://www.seia.org/solar-industry-research-data Statewide CASE Team. (2020a). Multifamily Restructuring Final CASE Report. Retrieved from https://title24stakeholders.com/wp-content/uploads/2020/11/2022_T24_CASEReport_Final_MultifamilyRestructuring_Statewide-CASE-Team.pdf Statewide CASE Team. (2020b). Residential Energy Savings and Process Improvements for Additions and Alterations Final CASE Report. Retrieved from https://title24stakeholders.com/wpcontent/uploads/2020/08/SF-Additions-and-Alterations_Final_-CASE-Report_Statewide-CASE-Team.pdf Statewide Reach Code Team. (2019, August). 2019 Cost-effectiveness Study: Low-Rise Residential New Construction. Retrieved from
https://localenergycodes.com/download/800/file_path/fieldList/2019%20Res%20NC%20Reach%20Cod es
Statewide Reach Code Team. (2021). 2019 Cost-Effectiveness Study: Existing Single Family Residential Building Upgrades. Retrieved from
https://localenergycodes.com/download/873/file_path/fieldList/2019%20Residential%20Retrofit%20Co st-eff%20Report%20(8/27/2021).pdf
TRC. (2016). Palo Alto Electrification Final Report. Retrieved from https://www.cityofpaloalto.org/files/assets/public/development-services/advisorygroups/electrification-task-force/palo-alto-electrification-study-11162016.pdf

1.151
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 6 Appendices

6.1 Appendix A: Map of California Climate Zones
Climate zone geographical boundaries are depicted in Figure 22. The map in Figure 22 along with a zip-code search directory is available at: https://ww2.energy.ca.gov/maps/renewable/building_climate_zones.html Figure 22: Map of California Climate Zones.

Source: California Energy Commission

1.152
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.2 Appendix B: Utility Rate Schedules

6.2.1 PG&E
The following pages provide details on the PG&E electricity and natural gas tariffs applied in this study. Table 19 describes the baseline territories that were assumed for each climate zone.

Table 19: PG&E Baseline Territory by Climate Zone
Baseline
Territory
CZ01 V
CZ02 X
CZ03 T
CZ04 X
CZ05 T
CZ11 R
CZ12 S
CZ13 R
CZ16 Y
The PG&E monthly gas rate in $/therm was applied on a monthly basis for the 12-month period ending August 2021 according to the rates shown in Table 20. The corresponding CARE rates are shown in Table 21.

Table 20: PG&E Monthly Gas Rate ($/therm)
Month Procurement
Charge
Transportation Charge Total Charge
Baseline Excess Baseline Excess
Jan 2021 $0.49332 $1.09586 $1.53752 $1.58918 $2.03084
Feb 2021 $0.49073 $1.09586 $1.53752 $1.58659 $2.02825
Mar 2021 $0.42316 $1.19868 $1.68034 $1.62184 $2.10350
Apr 2021 $0.22304 $1.19868 $1.68034 $1.42172 $1.90338
May 2021 $0.21063 $1.19868 $1.68034 $1.40931 $1.89097
June 2021 $0.21778 $1.20019 $1.68243 $1.41797 $1.90021
July 2021 $0.19109 $1.20019 $1.68243 $1.39128 $1.87352
Aug 2021 $0.22551 $1.20019 $1.68243 $1.42570 $1.90794
Sept 2020 $0.41891 $1.13126 $1.64861 $1.55017 $2.06752
Oct 2020 $0.38068 $1.13416 $1.65280 $1.51484 $2.03348
Nov 2020 $0.46046 $1.13416 $1.65280 $1.59462 $2.11326
Dec 2020 $0.48474 $1.13416 $1.65280 $1.6189 $2.13754

1.153
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 21: PG&E Monthly CARE (GL-1) Gas Rate ($/therm)
Month CARE Discount Total CARE Charge
Baseline Excess Baseline Excess
Jan 2021 -$0.31722 -$0.40555 $1.26886 $1.62219
Feb 2021 -$0.31670 -$0.40503 $1.26679 $1.62012
Mar 2021 -$0.32375 -$0.42008 $1.29499 $1.68032
Apr 2021 -$0.28372 -$0.38006 $1.13490 $1.52022
May 2021 -$0.28124 -$0.37757 $1.12497 $1.51030
June 2021 -$0.28297 -$0.37942 $1.13190 $1.51769
July 2021 -$0.27764 -$0.37408 $1.11054 $1.49634
Aug 2021 -$0.28452 -$0.38097 $1.13808 $1.52387
Sept 2020 -$0.30964 -$0.41311 $1.23858 $1.65246
Oct 2020 -$0.30258 -$0.40631 $1.21031 $1.62522
Nov 2020 -$0.31853 -$0.42226 $1.27414 $1.68905
Dec 2020 -$0.32339 -$0.42712 $1.29356 $1.70847

1.154
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.155
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.156
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.157
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.158
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.159
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.2.2 SCE
The following pages provide details on are the SCE electricity tariffs applied in this study. Table 22 describes the baseline territories that were assumed for each climate zone.

Table 22: SCE Baseline Territory by Climate Zone
Baseline
Territory
CZ06 6
CZ08 8
CZ09 9
CZ10 10
CZ14 14
CZ15 15

1.160
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.161
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.162
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.163
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

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

Table 23: SoCalGas Baseline Territory by Climate Zone
Baseline
Territory
CZ05 2
`CZ06 1
CZ08 1
CZ09 1
CZ10 1
CZ14 2
CZ15 1
The SoCalGas monthly gas rate in $/therm was applied on a monthly basis for the 12-month period ending August 2021 according to the rates shown in Table 24. Historical natural gas rate data was only available for SoCalGas’ procurement charges.10 To estimate total costs by month, the baseline and excess transmission charges were assumed to be relatively consistence and applied for the entire year based on January 2021 and April 2021 costs. CARE rates reflect the 20 percent discount per the GR tariff.

Table 24: SoCalGas Monthly Gas Rate ($/therm)
Month Procurement
Charge
Transportation Charge Total Charge
Baseline Excess Baseline Excess
Jan 2021 $0.39764 $0.82358 $1.21382 $1.22122 $1.61146
Feb 2021 $0.36766 $0.82358 $1.21382 $1.19124 $1.58148
Mar 2021 $0.36982 $0.82358 $1.21382 $1.1934 $1.58364
Apr 2021 $0.31373 $0.80599 $1.20562 $1.11972 $1.51935
May 2021 $0.35684 $0.80599 $1.20562 $1.16283 $1.56246
June 2021 $0.3946 $0.80599 $1.20562 $1.20059 $1.60022
July 2021 $0.42622 $0.80599 $1.20562 $1.23221 $1.63184
Aug 2021 $0.44599 $0.80599 $1.20562 $1.25198 $1.65161
Sept 2020 $0.25498 $0.82358 $1.21382 $1.07856 $1.4688
Oct 2020 $0.25268 $0.82358 $1.21382 $1.07626 $1.4665
Nov 2020 $0.3432 $0.82358 $1.21382 $1.16678 $1.55702
Dec 2020 $0.36159 $0.82358 $1.21382 $1.18517 $1.57541
10 The SoCalGas procurement and transmission charges were obtained from the following site: https://www.socalgas.com/for-yourbusiness/energy-market-services/gas-prices

1.164
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.165
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.2.4 SDG&E
Following are the SDG&E electricity and natural gas tariffs applied in this study. Table 25 describes the baseline territories that were assumed for each climate zone.

Table 25: SDG&E Baseline Territory by Climate Zone
Baseline
Territory
CZ07 Coastal
CZ10 Inland
CZ14 Mountain
The SDG&E monthly gas rate in $/therm was applied on a monthly basis for the 12-month period ending August 2021 according to the rates shown in Table 26. CARE rates reflect the 20 percent discount per the G-CARE tariff.

Table 26: SDG&E Monthly Gas Rate ($/therm)
Month Procurement
Charge
Transportation Charge Total Charge
Baseline Excess Baseline Excess
Jan 2021 $0.39803 $1.44464 $1.70732 $1.84267 $2.10535
Feb 2021 $0.36802 $1.44464 $1.70732 $1.81266 $2.07534
Mar 2021 $0.37018 $1.44464 $1.70732 $1.81482 $2.07750
Apr 2021 $0.31401 $1.44464 $1.70732 $1.75865 $2.02133
May 2021 $0.35719 $1.44464 $1.70732 $1.80183 $2.06451
June 2021 $0.39498 $1.44464 $1.70732 $1.83962 $2.10230
July 2021 $0.42663 $1.44464 $1.70732 $1.87127 $2.13395
Aug 2021 $0.44642 $1.44464 $1.70732 $1.89106 $2.15374
Sept 2020 $0.25521 $1.39202 $1.62888 $1.64723 $1.88409
Oct 2020 $0.2529 $1.42577 $1.67181 $1.67867 $1.92471
Nov 2020 $0.34351 $1.42577 $1.67181 $1.76928 $2.01532
Dec 2020 $0.36192 $1.42577 $1.67181 $1.78769 $2.03373

1.166
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.167
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.168
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.169
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.170
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.171
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.2.5 SMUD
Following are the SMUD electricity tariffs applied in this study.

1.172
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.2.6 CPAU
Following are the CPAU electricity and natural gas tariffs applied in this study. The CPAU monthly gas rate in $/therm was applied on a monthly basis for the 12-month period ending August 2021 according to the rates shown in Table 27. The distribution charge was $0.4835/therm for Tier 1 and $1.0426/therm for Tier 2. The monthly service charge applied was $10.94 per month per the G-1 tariff in effect at the time of the analysis.

Table 27: CPAU Monthly Gas Rate ($/therm)
Effective
Date
Commodity
Rate
Cap and Trade
Compliance
Charge
Transportation
Charge
Carbon
Offset
Charge
G1 Tier 1
Volumetric
Totals
G1 Tier 2
Volumetric
Totals
Jan 2021 $0.3436 $0.0486 $0.11104 $0.040 $1.04704 $1.83144 Feb 2021 $0.3309 $0.0486 $0.11104 $0.040 $1.03434 $1.81874 Mar 2021 $0.3577 $0.0486 $0.12200 $0.040 $1.0721 $1.8565 Apr 2021 $0.3375 $0.0486 $0.12200 $0.040 $1.0519 $1.8363 May 2021 $0.3901 $0.0486 $0.12200 $0.040 $1.1045 $1.8889 June 2021 $0.3982 $0.0486 $0.12214 $0.040 $1.11274 $1.89714 July 2021 $0.4800 $0.0486 $0.12274 $0.040 $1.22034 $2.04394 Aug 2021 $0.5492 $0.0486 $0.12274 $0.040 $1.28954 $2.11314 Sept 2020 $0.3203 $0.033 $0.09862 $0.040 $0.99572 $1.78012 Oct 2020 $0.3724 $0.033 $0.09862 $0.040 $1.04782 $1.83222 Nov 2020 $0.3749 $0.033 $0.09862 $0.040 $1.05032 $1.83472 Dec 2020 $0.3446 $0.033 $0.09862 $0.040 $1.02002 $1.80442

1.173
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

1.174
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.2.7 Escalation Assumptions
The average annual escalation rates in Table 28 were used in this study. These are based on assumptions from the CPUC 2021 En Banc hearings on utility costs through 2030 (California Public Utilities Commission, 2021b).

Escalation rates through the remainder of the 30-year evaluation period are based on the escalation rate assumptions within the 2022 TDV factors.

Table 28: Real Utility Rate Escalation Rate Assumptions Statewide Natural
Gas Residential
Average Rate
(%/year, real)
Electric Residential Average Rate
(%/year escalation, real)

PG&E SCE SDG&E
2022 4.6% 1.80% 1.60% 2.80%
2023 4.6% 1.80% 1.60% 2.80%
2024 4.6% 1.80% 1.60% 2.80%
2025 4.6% 1.80% 1.60% 2.80%
2026 4.6% 1.80% 1.60% 2.80%
2027 4.6% 1.80% 1.60% 2.80%
2028 4.6% 1.80% 1.60% 2.80%
2029 4.6% 1.80% 1.60% 2.80%
2030 4.6% 1.80% 1.60% 2.80%
2031 2.0% 0.57% 0.57% 0.57%
2032 2.4% 0.57% 0.57% 0.57%
2033 2.1% 0.57% 0.57% 0.57%
2034 1.9% 0.57% 0.57% 0.57%
2035 1.9% 0.57% 0.57% 0.57%
2036 1.8% 0.57% 0.57% 0.57%
2037 1.7% 0.57% 0.57% 0.57%
2038 1.6% 0.57% 0.57% 0.57%
2039 2.1% 0.57% 0.57% 0.57%
2040 1.6% 0.57% 0.57% 0.57%
2041 2.2% 0.57% 0.57% 0.57%
2042 2.2% 0.57% 0.57% 0.57%
2043 2.3% 0.57% 0.57% 0.57%
2044 2.4% 0.57% 0.57% 0.57%
2045 2.5% 0.57% 0.57% 0.57%
2046 1.5% 0.57% 0.57% 0.57%
2047 1.3% 0.57% 0.57% 0.57%
2048 1.6% 0.57% 0.57% 0.57%
2049 1.3% 0.57% 0.57% 0.57%
2050 1.5% 0.57% 0.57% 0.57%
2051 1.8% 0.57% 0.57% 0.57%

1.175
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.3 Appendix C: Standards Sections
2019 Building Energy Efficiency Standards Section 150.2(b)1I Roofs. Replacements of the exterior surface of existing roofs, including adding a new surface layer on top of the existing exterior surface, shall meet the requirements of Section 110.8 and the applicable requirements of Subsections i and ii where more than 50 percent of the roof is being replaced. i. Low-rise residential buildings with steep-sloped roofs, in Climate Zones 10 through 15 shall have a minimum aged solar reflectance of 0.20 and a minimum thermal emittance of 0.75, or a minimum SRI of 16.

EXCEPTION TO 150.2(b)1Ii: The following shall be considered equivalent to Subsection i:
a. Air-space of 1.0 inch (25 mm) is provided between the top of the roof deck to the bottom of the roofing product; or
b. The installed roofing product has a profile ratio of rise to width of 1 to 5 for 50 percent or greater of the width of the roofing product; or
c. Existing ducts in the attic are insulated and sealed according to Section 150.1(c)9; or d. Buildings with at least R-38 ceiling insulation; or
e. Buildings with a radiant barrier in the attic meeting the requirements of Section 150.1(c)2; or f. Buildings that have no ducts in the attic; or
g. In Climate Zones 10-15, R-2or greater insulation above the roof deck. ii. Low-sloped roofs in Climate Zones 13 and 15 shall have a 3-year aged solar reflectance equal or greater than

0.63 and a thermal emittance equal or greater than 0.75, or a minimum SRI of 75.

EXCEPTION 1 to Section 150.2(b)1Iii: Buildings with no ducts in the attic.

EXCEPTION 2 to Section 150.2(b)1Iii: The aged solar reflectance can be met by using insulation at the roof deck specified in TABLE 150.2-B.
2019 Building Energy Efficiency Standards Section 150.2(b)1E Altered Space-Conditioning System - Duct Sealing: In all climate zones, when a space-conditioning system serving a single family or multifamily dwelling is altered by the installation or replacement of space-conditioning system equipment, including replacement of the air handler, outdoor condensing unit of a split system air conditioner or heat pump, or cooling or heating coil; the duct system that is connected to the altered space-conditioning system equipment shall be sealed, as confirmed through field verification and diagnostic testing in accordance with the applicable procedures for duct sealing of altered existing duct systems as specified in Reference Residential Appendix RA3.1 and the leakage compliance criteria specified in subsection i, ii, or iii below. Additionally, when altered ducts, air-handling units, cooling or heating coils, or plenums are located in garage spaces, the system shall comply with Section 150.2(b)1Diic regardless of the length of any new or replacement space-conditioning ducts installed in the garage space.
i. The measured duct leakage shall be equal to or less than 15 percent of system air handler airflow as determined utilizing the procedures in Reference Residential Appendix Section RA3.1.4.3.1; or ii. The measured duct leakage to outside shall be equal to or less than 10 percent of system air handler airflow as determined utilizing the procedures in Reference Residential Appendix Section RA3.1.4.3.4; or iii. If it is not possible to meet the duct sealing requirements of either Section 150.2(b)1Ei or Section 150.2(b)1Eii, then, all accessible leaks shall be sealed and verified through a visual inspection and a smoke test by a certified HERS Rater utilizing the methods specified in Reference Residential Appendix RA3.1.4.3.5.

EXCEPTION 1 to Section 150.2(b)1E: Duct Sealing. Duct systems that are documented to have been previously sealed as confirmed through field verification and diagnostic testing in accordance with procedures in the Reference Residential Appendix RA3.1.

EXCEPTION 2 to Section 150.2(b)1E: Duct Sealing. Duct systems with less than 40 linear feet as determined by visual inspection.

EXCEPTION 3 to Section 150.2(b)1E: Duct Sealing. Existing duct systems constructed, insulated or sealed with asbestos.

1.176
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4 Appendix D: Cost-Effectiveness Detail by Climate Zone Detailed cost-effectiveness analysis results are summarized by vintage and climate zone in Table 29 through Table 112. Site energy savings, cost savings, measure cost, and cost effectiveness including lifecycle B/C ratio and NPV of savings are provided. For climate zones that are served by multiple utilities, where cost effectiveness may differ based on applicable utility rates, cost-effectiveness results are reported for both applicable utility territories.

Shaded cells in the tables and values in red indicate that the measure is not cost-effective with B/C ratios less than one. Cells with “n/a” reflect lighting and water heating efficiency measures and packages that did not look at TDV cost effectiveness.

1.177
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.1 Climate Zone 1:

Note: Values in red and grey rows indicate option is not cost-effective with B/C ratio less than 1. Cells with “n/a” reflect lighting and water heating efficiency measures and packages that did not look at TDV cost effectiveness or GHG impacts.

Table 29: CZ 1 - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 17 20 202 $41 $41 1.49 $407 1.22 $167 1.67 $503 1978-1991 $745 8 10 101 $19 $20 0.71 -$245 0.62 -$286 0.84 -$120 1992-2010 $625 3 4 38 $7 $7 0.31 -$485 0.28 -$452 0.38 -$389 Reduced
Infiltration
Pre-1978
$448
11 14 143 $29 $30 1.78 $391 1.33 $150 1.95 $423
1978-1991 7 10 100 $19 $20 1.17 $85 1.05 $22 1.36 $162
1992-2010 4 7 74 $14 $14 0.83 -$86 0.81 -$85 1.00 $2
Duct Sealing
Pre-1978 $130 7 8 84 $17 $17 3.58 $377 3.08 $270 3.99 $389 1978-1991 $130 3 3 36 $7 $7 1.46 $67 1.31 $40 1.71 $93
New Ducts
Pre-1978
$1,353
17 19 198 $40 $41 0.80 -$303 0.70 -$404 0.91 -$124
1978-1991 10 11 117 $22 $23 0.45 -$837 0.43 -$777 0.54 -$619 1992-2010 3 4 38 $7 $7 0.14 -$1,307 0.14 -$1,162 0.17 -$1,120 Cool Roof
Pre-1978
$225
-2 -3 -27 -$5 -$6 0.00 -$413 0.00 -$333 0.00 -$380
1978-1991 -1 -2 -16 -$3 -$3 0.00 -$340 0.00 -$293 0.00 -$315 1992-2010 0 -1 -10 -$2 -$2 0.00 -$301 0.00 -$270 0.00 -$284 R-13 Wall
Insulation Pre-1978 $1,006 36 45 460 $92 $93 2.48 $1,674 2.15 $1,155 2.79 $1,800 Floor
Insulation Pre-1978 $822 33 43 436 $87 $88 2.88 $1,731 2.29 $1,059 3.22 $1,822 Windows
Pre-1978
$5,873
43 50 512 $102 $103 0.47 -$3,495 0.28 -$4,206 0.54 -$2,697 1978-1991 36 43 444 $84 $85 0.39 -$4,040 0.24 -$4,438 0.47 -$3,118 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.29 $0.22 2.97 $4.45 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.09 $2.38 1.68 $28.96 n/a n/a n/a n/a

1.178
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 30: CZ 1 - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 28 34 347 $70 $71 1.59 $787 1.28 $339 1.79 $937 1978-1991 $1,193 16 20 202 $39 $39 0.88 -$162 0.79 -$252 1.04 $50 1992-2010 $1,073 8 11 112 $21 $21 0.53 -$570 0.50 -$534 0.64 -$384 R49 Attic & Duct
Sealing Package
Pre-1978 $875 23 27 275 $55 $56 1.72 $703 1.44 $385 1.95 $830 1978-1991 $875 11 13 131 $25 $26 0.78 -$216 0.69 -$267 0.93 -$59 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 34 41 416 $83 $85 1.71 $1,056 1.41 $537 1.94 $1,239 1978-1991 $1,323 18 23 232 $44 $45 0.90 -$141 0.82 -$241 1.08 $104 1992-2010 $1,203 8 11 112 $21 $21 0.47 -$716 0.45 -$664 0.57 -$514 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 42 50 513 $102 $104 1.09 $265 0.92 -$209 1.24 $618 1978-1991 $2,546 24 29 301 $57 $58 0.61 -$1,117 0.56 -$1,113 0.73 -$684 1992-2010 $2,427 10 14 145 $27 $27 0.30 -$1,903 0.29 -$1,716 0.37 -$1,531 Advanced
Envelope
Package
Pre-1978 $8,201 106 129 1,323 $256 $261 0.85 -$1,378 0.66 -$2,762 0.99 -$48 Water Heating
Package
All
Vintages $168 0 12 0 $23 $17 1.37 $70 n/a n/a n/a n/a

1.179
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 31: CZ 1 - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$5,362
2,569
0 158 $538 $416 2.11 $6,563 1.92 $4,941 1.49 $2,638
1978-1991 2,569 158 $531 $410 2.08 $6,392 1.92 $4,936 1.49 $2,635 1992-2010 2,557 157 $522 $403 2.05 $6,189 1.90 $4,834 1.48 $2,596 PV + Battery
Pre-1978
$7,636
2,516
0 325 $543 $420 1.51 $4,263 1.53 $4,050 1.22 $1,717
1978-1991 2,516 325 $536 $414 1.49 $4,091 1.53 $4,050 1.22 $1,715 1992-2010 2,516 325 $528 $408 1.47 $3,907 1.53 $4,050 1.22 $1,717

1.180
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 32: CZ 1 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at HVAC
Replacement
Pre-1978
$227
-2,352 213 1,166 -$215 -$65 0.00 -$2,200 0.00 -$3,941 1.00 -$1 1978-1991 -1,729 150 791 -$156 -$50 0.00 -$1,764 0.00 -$3,172 0.00 -$398 1992-2010 -1,020 84 418 -$95 -$35 0.00 -$1,289 0.00 -$2,132 0.00 -$535 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-2,020 213 1,295 -$122 $7 0.06 -$3,307 0.00 -$5,215 0.60 -$1,301 1978-1991 -1,497 150 882 -$95 -$4 0.00 -$3,628 0.00 -$4,957 0.32 -$2,210 1992-2010 -895 84 467 -$66 -$12 0.00 -$3,878 0.00 -$4,470 0.10 -$2,908 Heat Pump at HVAC
Replacement + PV
Pre-1978
$5,588
217 213 1,324 $438 $439 2.14 $7,015 1.20 $1,091 1.48 $2,681 1978-1991 839 150 949 $475 $437 2.13 $6,950 1.33 $1,841 1.41 $2,270 1992-2010 1,548 84 575 $526 $445 2.17 $7,184 1.51 $2,848 1.38 $2,121

HVAC HP
Replacement, PV, +
Panel Upgrade
Pre-1978
$8,769
217 213 1,324 $438 $439 1.35 $3,443 0.76 -$2,090 0.94 -$500 1978-1991 839 150 949 $475 $437 1.35 $3,378 0.85 -$1,340 0.90 -$911 1992-2010 1,548 84 575 $526 $445 1.37 $3,612 0.96 -$333 0.88 -$1,060 HPWH at Water
Heater Replacement
Pre-1978
$2,594
-1,504 151 1,090 -$199 -$83 0.00 -$5,379 0.00 -$4,985 0.55 -$1,161 1978-1991 -1,504 151 1,090 -$205 -$91 0.00 -$5,615 0.00 -$4,985 0.55 -$1,161 1992-2010 -1,504 151 1,090 -$208 -$95 0.00 -$5,727 0.00 -$4,985 0.55 -$1,161 NEEA Tier 3 HPWH
at Replacement
Pre-1978
$2,775
-1,088 151 1,224 -$64 $21 0.21 -$2,445 0.00 -$3,266 1.30 $840 1978-1991 -1,088 151 1,224 -$70 $14 0.13 -$2,681 0.00 -$3,266 1.30 $840 1992-2010 -1,088 151 1,224 -$73 $10 0.10 -$2,792 0.00 -$3,266 1.30 $840 HPWH at Water
Heater Replacement
+ PV
Pre-1978
$7,955
1,064 151 1,248 $510 $465 1.58 $5,143 1.02 $189 1.21 $1,709 1978-1991 1,064 151 1,248 $501 $455 1.55 $4,837 1.02 $186 1.21 $1,707 1992-2010 1,064 151 1,248 $495 $449 1.53 $4,658 1.02 $181 1.21 $1,706 HPWH
Replacement, PV, +
Panel Upgrade
Pre-1978
$11,136
1,064 151 1,248 $510 $465 1.13 $1,571 0.73 -$2,992 0.87 -$1,472 1978-1991 1,064 151 1,248 $501 $455 1.10 $1,265 0.73 -$2,995 0.87 -$1,474 1992-2010 1,064 151 1,248 $495 $449 1.09 $1,086 0.73 -$3,000 0.87 -$1,475 PV + Electric Ready
Pre-Wire
Pre-1978
$9,453
2,569 0 868 $538 $416 1.19 $1,970 1.09 $850 0.85 -$1,453 1978-1991 2,569 0 910 $531 $410 1.17 $1,798 0.75 -$2,318 0.85 -$1,456 1992-2010 2,557 0 971 $522 $403 1.15 $1,595 0.41 -$5,610 0.84 -$1,495

1.181
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.2 Climate Zone 2:

Table 33: CZ 2 - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 141 12 142 $70 $60 2.14 $956 1.96 $712 2.24 $921 1978-1991 $745 72 6 70 $34 $29 1.04 $32 1.01 $8 1.19 $142 1992-2010 $625 20 2 26 $10 $9 0.37 -$442 0.46 -$336 0.58 -$266 Reduced
Infiltration
Pre-1978
$448
1 9 94 $16 $16 0.97 -$13 0.97 -$11 1.42 $190
1978-1991 -3 7 66 $10 $11 0.63 -$188 0.63 -$167 0.91 -$39 1992-2010 1 5 50 $9 $9 0.53 -$237 0.58 -$188 0.81 -$85
Duct Sealing
Pre-1978 $130 75 5 62 $35 $29 6.05 $736 7.00 $781 9.39 $1,091 1978-1991 $130 41 2 29 $18 $15 3.02 $295 4.01 $391 5.06 $528 New Ducts
Pre-1978
$1,353
168 11 144 $80 $67 1.32 $485 1.55 $746 2.10 $1,482
1978-1991 125 6 92 $53 $44 0.87 -$197 1.16 $220 1.58 $779 1992-2010 30 2 30 $13 $11 0.22 -$1,187 0.38 -$833 0.53 -$638 Cool Roof
Pre-1978
$225
69 -1 -1 $23 $17 2.13 $276 1.93 $210 2.24 $279
1978-1991 50 -1 1 $16 $12 1.51 $124 1.55 $124 1.87 $196 1992-2010 21 -1 -1 $6 $4 0.49 -$125 0.85 -$34 0.96 -$10 R-13 Wall
Insulation Pre-1978 $1,006 38 25 265 $55 $54 1.43 $487 1.81 $811 2.15 $1,158 Floor
Insulation Pre-1978 $822 -70 18 162 $4 $11 0.37 -$581 0.21 -$652 0.68 -$264 Windows
Pre-1978
$5,873
351 18 262 $151 $125 0.57 -$2,853 0.52 -$2,847 0.81 -$1,134 1978-1991 284 16 224 $117 $98 0.44 -$3,660 0.42 -$3,380 0.68 -$1,895 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.29 $0.22 2.97 $4.45 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.09 $2.38 1.68 $28.96 n/a n/a n/a n/a

1.182
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 34: CZ 2 - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 142 21 236 $86 $76 1.70 $938 1.60 $713 1.97 $1,154 1978-1991 $1,193 69 12 136 $44 $40 0.89 -$148 0.87 -$151 1.08 $98 1992-2010 $1,073 22 7 77 $19 $18 0.44 -$674 0.50 -$536 0.64 -$390 R49 Attic & Duct
Sealing Package
Pre-1978 $875 204 16 196 $99 $84 2.56 $1,536 2.65 $1,440 3.22 $1,943 1978-1991 $875 108 7 95 $49 $41 1.26 $254 1.38 $335 1.71 $623 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 204 25 288 $114 $100 2.01 $1,503 2.11 $1,469 2.63 $2,160 1978-1991 $1,323 104 14 159 $58 $51 1.04 $57 1.17 $221 1.47 $620 1992-2010 $1,203 22 7 77 $19 $18 0.39 -$820 0.45 -$666 0.57 -$520 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 289 30 361 $152 $131 1.37 $1,071 1.55 $1,399 1.98 $2,500 1978-1991 $2,546 182 18 215 $90 $77 0.81 -$542 1.02 $47 1.31 $791 1992-2010 $2,427 49 9 103 $31 $28 0.31 -$1,892 0.43 -$1,374 0.55 -$1,092 Advanced
Envelope
Package
Pre-1978 $8,201 455 73 834 $274 $245 0.80 -$1,858 0.85 -$1,198 1.16 $1,303 Water Heating
Package
All
Vintages $168 0 12 0 $38 $19 1.52 $98 n/a n/a n/a n/a

1.183
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 35: CZ 2 - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$4,815
2,693
0 169 $661 $511 2.89 $10,016 2.31 $6,309 1.80 $3,867
1978-1991 2,693 169 $632 $489 2.76 $9,350 2.31 $6,298 1.80 $3,858 1992-2010 2,693 169 $571 $442 2.49 $7,934 2.26 $6,078 1.80 $3,837 PV + Battery
Pre-1978
$7,090
2,637
0 307 $675 $521 2.03 $7,916 1.66 $4,648 1.31 $2,206
1978-1991 2,637 313 $639 $494 1.92 $7,096 1.67 $4,758 1.32 $2,239 1992-2010 2,637 330 $578 $447 1.74 $5,680 1.73 $5,193 1.36 $2,535

1.184
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 36: CZ 2 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-1,182 105 504 -$119 -$44 0.00 -$1,560 0.00 -$3,941 1.71 $162 1978-1991 -788 69 323 -$68 -$21 0.00 -$877 0.00 -$3,172 1.01 $2 1992-2010 -608 53 247 -$52 -$16 0.00 -$726 0.00 -$2,132 0.38 -$141 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-925 105 606 -$38 $19 0.16 -$2,953 0.00 -$5,215 0.75 -$804 1978-1991 -611 69 393 -$19 $17 0.14 -$3,014 0.00 -$4,957 0.55 -$1,462 1992-2010 -490 53 296 -$21 $8 0.06 -$3,286 0.00 -$4,470 0.36 -$2,073 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$5,042
1,510 105 673 $554 $476 2.57 $8,733 1.20 $1,091 1.80 $4,044 1978-1991 1,905 69 492 $584 $483 2.60 $8,925 1.33 $1,841 1.77 $3,871 1992-2010 2,085 53 416 $594 $483 2.61 $8,927 1.51 $2,848 1.74 $3,711

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$8,223
1,510 105 673 $554 $476 1.57 $5,161 0.76 -$2,090 1.10 $863 1978-1991 1,905 69 492 $584 $483 1.59 $5,353 0.85 -$1,340 1.08 $690 1992-2010 2,085 53 416 $594 $483 1.59 $5,355 0.96 -$333 1.06 $530 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-1,171 141 1,057 -$100 -$16 0.00 -$3,361 0.00 -$4,985 1.06 $163 1978-1991 -1,171 141 1,057 -$96 -$13 0.00 -$3,285 0.00 -$4,985 1.06 $163 1992-2010 -1,171 141 1,057 -$78 $1 0.01 -$2,870 0.00 -$4,985 1.06 $163 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-937 141 1,149 -$27 $40 0.39 -$1,880 0.00 -$3,266 1.41 $1,144 1978-1991 -937 141 1,149 -$25 $42 0.41 -$1,826 0.00 -$3,266 1.41 $1,144 1992-2010 -937 141 1,149 -$11 $52 0.51 -$1,523 0.00 -$3,266 1.41 $1,144 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,409
1,522 141 1,226 $606 $530 1.94 $7,695 1.02 $189 1.57 $4,216 1978-1991 1,522 141 1,226 $596 $522 1.91 $7,455 1.02 $186 1.57 $4,209 1992-2010 1,522 141 1,226 $592 $519 1.90 $7,355 1.02 $181 1.57 $4,189 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$10,590
1,522 141 1,226 $606 $530 1.35 $4,123 0.73 -$2,992 1.10 $1,035 1978-1991 1,522 141 1,226 $596 $522 1.33 $3,883 0.73 -$2,995 1.10 $1,028 1992-2010 1,522 141 1,226 $592 $519 1.32 $3,783 0.73 -$3,000 1.10 $1,008 PV + Electric
Ready Pre-Wire
Pre-1978
$8,906
2,693 0 1,049 $661 $511 1.55 $5,422 1.09 $850 0.97 -$224 1978-1991 2,693 0 1,080 $632 $489 1.48 $4,756 0.75 -$2,318 0.97 -$233 1992-2010 2,693 0 1,072 $571 $442 1.34 $3,340 0.41 -$5,610 0.97 -$254

1.185
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.3 Climate Zone 3:

Table 37: CZ 3 - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 42 10 106 $30 $28 1.00 -$2 1.15 $113 1.25 $187 1978-1991 $745 19 4 48 $13 $12 0.44 -$469 0.62 -$281 0.62 -$280 1992-2010 $625 6 2 18 $5 $4 0.18 -$575 0.26 -$460 0.29 -$442 Reduced
Infiltration
Pre-1978
$448
-1 7 74 $12 $12 0.73 -$134 0.92 -$36 0.98 -$10
1978-1991 -2 5 45 $6 $7 0.42 -$293 0.62 -$171 0.57 -$191 1992-2010 0 3 34 $5 $6 0.34 -$331 0.48 -$233 0.47 -$236 Duct Sealing
Pre-1978 $130 16 3 37 $11 $10 2.00 $146 2.45 $189 3.64 $343 1978-1991 $130 8 1 14 $5 $4 0.85 -$22 1.10 $13 1.82 $106 New Ducts
Pre-1978
$1,353
41 8 89 $26 $24 0.47 -$798 0.62 -$513 0.89 -$146
1978-1991 29 4 49 $16 $14 0.29 -$1,086 0.40 -$810 0.64 -$494 1992-2010 6 1 15 $4 $4 0.07 -$1,408 0.11 -$1,201 0.19 -$1,094 Cool Roof
Pre-1978
$225
20 -1 -6 $5 $4 0.44 -$137 0.37 -$142 0.59 -$93
1978-1991 13 -1 -3 $3 $2 0.29 -$173 0.41 -$132 0.59 -$93 1992-2010 5 0 -3 $1 $1 0.07 -$229 0.17 -$186 0.30 -$157 R-13 Wall
Insulation Pre-1978 $1,006 13 19 198 $35 $36 0.96 -$43 1.23 $234 1.37 $373 Floor
Insulation Pre-1978 $822 -22 18 177 $22 $25 0.82 -$162 0.95 -$39 0.79 -$173 Windows
Pre-1978
$5,873
82 20 223 $60 $55 0.25 -$4,934 0.22 -$4,571 0.44 -$3,279 1978-1991 57 16 175 $44 $41 0.19 -$5,362 0.19 -$4,771 0.35 -$3,811 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.29 $0.22 2.97 $4.45 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.09 $2.38 1.68 $28.96 n/a n/a n/a n/a

1.186
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 38: CZ 3 - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 42 17 180 $42 $40 0.91 -$127 1.07 $85 1.15 $178 1978-1991 $1,193 17 9 93 $20 $19 0.43 -$760 0.62 -$448 0.61 -$470 1992-2010 $1,073 6 5 52 $10 $10 0.25 -$905 0.36 -$691 0.37 -$677 R49 Attic & Duct
Sealing Package
Pre-1978 $875 55 12 137 $39 $36 1.09 $84 1.29 $257 1.56 $492 1978-1991 $875 26 5 60 $17 $16 0.48 -$511 0.67 -$285 0.78 -$189 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 55 19 208 $50 $48 0.96 -$55 1.16 $214 1.35 $468 1978-1991 $1,323 24 10 104 $24 $23 0.46 -$805 0.65 -$459 0.71 -$384 1992-2010 $1,203 6 5 52 $10 $10 0.22 -$1,051 0.32 -$821 0.33 -$807 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 76 23 249 $63 $59 0.62 -$1,085 0.78 -$559 0.98 -$61 1978-1991 $2,546 44 12 132 $34 $31 0.33 -$1,917 0.47 -$1,339 0.60 -$1,017 1992-2010 $2,427 12 6 65 $13 $13 0.14 -$2,330 0.21 -$1,909 0.26 -$1,794 Advanced
Envelope
Package
Pre-1978 $8,201 131 53 568 $129 $124 0.40 -$5,504 0.48 -$4,262 0.66 -$2,798 Water Heating
Package
All
Vintages $168 0 12 0 $36 $19 1.49 $92 n/a n/a n/a n/a

1.187
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 39: CZ 3 - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$4,559
2,660
0 173 $559 $432 2.58 $7,923 2.27 $5,784 1.84 $3,847
1978-1991 2,649 173 $548 $424 2.53 $7,678 2.25 $5,690 1.84 $3,811 1992-2010 2,559 167 $522 $404 2.41 $7,077 2.21 $5,497 1.78 $3,534 PV + Battery
Pre-1978
$6,833
2,602
0 348 $564 $436 1.76 $5,647 1.67 $4,606 1.35 $2,408
1978-1991 2,602 350 $555 $429 1.73 $5,427 1.69 $4,713 1.36 $2,481 1992-2010 2,602 357 $532 $411 1.66 $4,893 1.75 $5,108 1.44 $2,989

1.188
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 40: CZ 3 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-714 70 350 -$53 -$9 0.00 -$525 0.00 -$933 2.67 $380
1978-1991 -438 42 205 -$30 -$4 0.00 -$365 0.00 -$708 1.41 $94 1992-2010 -327 32 154 -$23 -$3 0.00 -$352 0.00 -$591 1.08 $17 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-583 70 410 -$16 $19 0.16 -$2,937 0.08 -$3,000 0.52 -$1,557 1978-1991 -355 42 243 -$9 $12 0.10 -$3,160 0.04 -$3,102 0.34 -$2,141 1992-2010 -274 32 180 -$10 $7 0.06 -$3,317 0.02 -$3,193 0.23 -$2,511 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$4,785
1,945 70 523 $592 $489 2.78 $9,396 2.02 $4,876 1.88 $4,235 1978-1991 2,221 42 378 $568 $458 2.60 $8,467 2.06 $5,088 1.82 $3,941 1992-2010 2,332 32 328 $552 $441 2.51 $7,949 2.09 $5,204 1.81 $3,860

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$7,966
1,945 70 523 $592 $489 1.66 $5,824 1.21 $1,695 1.13 $1,054 1978-1991 2,221 42 378 $568 $458 1.55 $4,895 1.24 $1,907 1.10 $760 1992-2010 2,332 32 328 $552 $441 1.49 $4,377 1.25 $2,023 1.09 $679 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-1,037 141 1,108 -$101 -$18 0.00 -$3,425 0.00 -$3,053 1.29 $753 1978-1991 -1,037 141 1,108 -$100 -$16 0.00 -$3,385 0.00 -$3,053 1.29 $753 1992-2010 -1,037 141 1,108 -$95 -$13 0.00 -$3,275 0.00 -$3,053 1.29 $753 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-842 141 1,195 -$37 $32 0.31 -$2,140 0.26 -$2,055 1.57 $1,591 1978-1991 -842 141 1,195 -$36 $33 0.32 -$2,100 0.26 -$2,055 1.57 $1,591 1992-2010 -842 141 1,195 -$31 $37 0.36 -$1,991 0.26 -$2,055 1.57 $1,591 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,152
1,623 141 1,282 $614 $535 2.03 $8,123 1.41 $2,936 1.67 $4,801 1978-1991 1,623 141 1,282 $611 $533 2.02 $8,068 1.41 $2,935 1.67 $4,798 1992-2010 1,623 141 1,282 $609 $531 2.01 $8,014 1.41 $2,932 1.67 $4,792 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$10,333
1,623 141 1,282 $614 $535 1.40 $4,551 0.98 -$245 1.16 $1,620 1978-1991 1,623 141 1,282 $611 $533 1.39 $4,496 0.98 -$246 1.16 $1,617 1992-2010 1,623 141 1,282 $609 $531 1.39 $4,442 0.98 -$249 1.16 $1,611 PV + Electric
Ready Pre-Wire
Pre-1978
$8,650
2,660 0 1,059 $559 $432 1.35 $3,330 1.20 $1,693 0.97 -$244 1978-1991 2,649 0 1,093 $548 $424 1.32 $3,084 0.95 -$454 0.97 -$280 1992-2010 2,559 0 1,091 $522 $404 1.26 $2,483 0.77 -$1,970 0.94 -$557

1.189
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Climate Zone 4 PG&E:

Table 41: CZ 4 (PG&E) - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 148 8 107 $68 $56 2.02 $850 1.98 $729 2.07 $801 1978-1991 $745 75 4 50 $35 $28 1.02 $18 1.05 $41 1.20 $152 1992-2010 $625 23 1 20 $10 $8 0.36 -$448 0.43 -$357 0.42 -$360 Reduced
Infiltration
Pre-1978
$448
-1 6 61 $9 $10 0.60 -$199 0.73 -$123 1.07 $31
1978-1991 -4 4 39 $5 $6 0.35 -$325 0.50 -$222 0.78 -$100 1992-2010 -1 3 30 $5 $5 0.30 -$354 0.37 -$282 0.45 -$248 Duct Sealing
Pre-1978 $130 97 3 47 $41 $33 6.72 $835 8.25 $943 9.44 $1,097 1978-1991 $130 54 1 22 $22 $18 3.61 $382 5.13 $537 5.15 $540 New Ducts
Pre-1978
$1,353
235 7 116 $98 $79 1.56 $857 2.04 $1,410 $929 $349
1978-1991 185 4 79 $75 $60 1.18 $267 1.62 $835 $874 $311 1992-2010 50 1 25 $19 $15 0.30 -$1,069 0.48 -$706 $742 $297 Cool Roof
Pre-1978
$225
83 -1 6 $29 $22 2.72 $422 2.98 $446 $985 $362
1978-1991 62 0 7 $22 $17 2.07 $262 2.23 $278 $920 $318
1992-2010 27 0 3 $8 $6 0.77 -$56 1.02 $4 $750 $300
R-13 Wall
Insulation Pre-1978 $1,006 40 16 171 $41 $39 1.04 $43 1.40 $400 $1,002 $333 Floor
Insulation Pre-1978 $822 -81 12 106 -$10 -$2 0.00 -$980 0.00 -$876 $1,077 $349 Windows
Pre-1978
$5,873
475 10 191 $189 $150 0.68 -$2,084 0.62 -$2,224 $843 $345 1978-1991 394 8 166 $157 $125 0.57 -$2,854 0.53 -$2,777 $800 $304 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.29 $0.22 2.97 $4.45 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.09 $2.38 1.68 $28.96 n/a n/a n/a n/a

1.190
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 42: CZ 4 (PG&E) - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 148 14 167 $78 $67 1.49 $658 1.54 $648 1.75 $892 1978-1991 $1,193 70 8 91 $39 $34 0.76 -$323 0.85 -$184 0.94 -$73 1992-2010 $1,073 22 4 49 $15 $13 0.33 -$804 0.40 -$644 0.43 -$608 R49 Attic & Duct
Sealing Package
Pre-1978 $875 234 11 149 $104 $85 2.60 $1,568 2.83 $1,598 3.02 $1,771 1978-1991 $875 124 5 71 $54 $44 1.34 $336 1.59 $514 1.60 $526 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 232 17 207 $113 $95 1.91 $1,353 2.13 $1,495 2.38 $1,823 1978-1991 $1,323 119 9 109 $59 $50 1.00 $1 1.19 $257 1.31 $409 1992-2010 $1,203 22 4 49 $15 $13 0.30 -$950 0.36 -$774 0.39 -$738 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 364 20 270 $167 $138 1.45 $1,276 1.75 $1,909 1.83 $2,120 1978-1991 $2,546 246 11 162 $109 $89 0.93 -$197 1.21 $524 1.19 $482 1992-2010 $2,427 70 5 72 $32 $27 0.30 -$1,901 0.44 -$1,353 0.44 -$1,365 Advanced
Envelope
Package
Pre-1978 $8,201 560 46 566 $279 $237 0.77 -$2,107 0.84 -$1,287 0.99 -$117 Water Heating
Package
All
Vintages $168 0 13 0 $41 $20 1.56 $106 n/a n/a n/a n/a

1.191
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 43: CZ 4 (PG&E) - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$4,705
2,798
0 182 $713 $551 3.18 $11,337 2.38 $6,481 1.99 $4,663
1978-1991 2,798 182 $701 $542 3.13 $11,060 2.38 $6,472 1.99 $4,649 1992-2010 2,798 182 $626 $484 2.80 $9,322 2.36 $6,418 1.98 $4,618 PV + Battery
Pre-1978
$6,979
2,738
0 306 $726 $561 2.21 $9,229 1.65 $4,521 1.43 $2,971
1978-1991 2,738 310 $715 $552 2.18 $8,964 1.65 $4,565 1.43 $3,000 1992-2010 2,738 334 $634 $490 1.93 $7,096 1.80 $5,597 1.49 $3,424

1.192
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 44: CZ 4 (PG&E) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-620 58 278 -$57 -$18 0.00 -$785 0.00 -$1,855 1.53 $121 1978-1991 -382 35 160 -$41 -$16 0.00 -$724 0.00 -$1,285 0.62 -$87 1992-2010 -280 25 116 -$27 -$9 0.00 -$518 0.00 -$1,080 0.43 -$129 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-374 58 366 $21 $43 0.37 -$2,228 0.09 -$2,949 0.70 -$977 1978-1991 -195 35 225 $21 $32 0.27 -$2,553 0.13 -$2,812 0.52 -$1,573 1992-2010 -158 25 163 $12 $21 0.18 -$2,888 0.07 -$3,033 0.36 -$2,085 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$4,932
2,177 58 460 $645 $525 2.90 $10,315 1.94 $4,647 1.97 $4,787 1978-1991 2,416 35 342 $655 $522 2.88 $10,211 2.05 $5,202 1.93 $4,564 1992-2010 2,518 25 299 $635 $502 2.77 $9,619 2.09 $5,390 1.91 $4,493

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$8,113
2,177 58 460 $645 $525 1.75 $6,743 1.18 $1,466 1.20 $1,606 1978-1991 2,416 35 342 $655 $522 1.74 $6,639 1.25 $2,021 1.17 $1,383 1992-2010 2,518 25 299 $635 $502 1.67 $6,047 1.27 $2,209 1.16 $1,312 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-924 134 1,068 -$44 $24 0.25 -$2,171 0.00 -$2,609 1.34 $887 1978-1991 -924 134 1,068 -$41 $26 0.27 -$2,110 0.00 -$2,609 1.34 $887 1992-2010 -924 134 1,068 -$28 $36 0.37 -$1,810 0.00 -$2,609 1.34 $887 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-764 134 1,143 $4 $61 0.59 -$1,260 0.27 -$2,024 1.55 $1,530 1978-1991 -764 134 1,143 $6 $63 0.61 -$1,207 0.27 -$2,024 1.55 $1,530 1992-2010 -764 134 1,143 $17 $71 0.69 -$948 0.27 -$2,024 1.55 $1,530 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,299
1,874 134 1,250 $705 $603 2.24 $10,015 1.56 $4,057 1.78 $5,722 1978-1991 1,874 134 1,250 $693 $593 2.20 $9,716 1.56 $4,051 1.78 $5,710 1992-2010 1,874 134 1,250 $668 $574 2.13 $9,138 1.55 $4,033 1.78 $5,681 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$10,480
1,874 134 1,250 $705 $603 1.55 $6,443 1.08 $876 1.24 $2,541 1978-1991 1,874 134 1,250 $693 $593 1.53 $6,144 1.08 $870 1.24 $2,529 1992-2010 1,874 134 1,250 $668 $574 1.48 $5,566 1.08 $852 1.24 $2,500 PV + Electric
Ready Pre-Wire
Pre-1978
$8,796
2,798 0 1,086 $713 $551 1.69 $6,743 1.27 $2,390 1.07 $572 1978-1991 2,798 0 1,115 $701 $542 1.66 $6,467 0.92 -$704 1.06 $558 1992-2010 2,798 0 1,108 $626 $484 1.48 $4,728 0.38 -$5,457 1.06 $527

1.193
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.4 Climate Zone 4 CPAU:

Table 45: CZ 4 (CPAU) - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 148 8 107 $68 $56 1.07 $57 1.98 $729 2.07 $801 1978-1991 $745 75 4 50 $35 $28 0.52 -$401 1.05 $41 1.20 $152 1992-2010 $625 23 1 20 $10 $8 0.18 -$573 0.43 -$357 0.42 -$360 Reduced
Infiltration
Pre-1978
$448
-1 6 61 $9 $10 0.38 -$312 0.73 -$123 1.07 $31
1978-1991 -4 4 39 $5 $6 0.23 -$388 0.50 -$222 0.78 -$100 1992-2010 -1 3 30 $5 $5 0.19 -$408 0.37 -$282 0.45 -$248 Duct Sealing
Pre-1978 $130 97 3 47 $41 $33 3.43 $354 8.25 $943 9.44 $1,097 1978-1991 $130 54 1 22 $22 $18 1.75 $110 5.13 $537 5.15 $540 New Ducts
Pre-1978
$1,353
235 7 116 $98 $79 0.79 -$317 2.04 $1,410 2.13 $1,526
1978-1991 185 4 79 $75 $60 0.57 -$647 1.62 $835 1.57 $767 1992-2010 50 1 25 $19 $15 0.14 -$1,303 0.48 -$706 0.46 -$727 Cool Roof
Pre-1978
$225
83 -1 6 $29 $22 1.33 $81 2.98 $446 2.75 $395
1978-1991 62 0 7 $22 $17 0.96 -$10 2.23 $278 2.24 $279
1992-2010 27 0 3 $8 $6 0.35 -$161 1.02 $4 0.85 -$34
R-13 Wall
Insulation Pre-1978 $1,006 40 16 171 $41 $39 0.61 -$444 1.40 $400 1.58 $581 Floor
Insulation Pre-1978 $822 -81 12 106 -$10 -$2 0.06 -$865 0.00 -$876 0.42 -$474 Windows
Pre-1978
$5,873
475 10 191 $189 $150 0.34 -$4,355 0.62 -$2,224 0.81 -$1,107 1978-1991 394 8 166 $157 $125 0.27 -$4,807 0.53 -$2,777 0.66 -$1,982 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.17 $0.13 1.75 $1.70 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $1.66 $1.29 0.91 -$3.99 n/a n/a n/a n/a

1.194
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 46: CZ 4 (CPAU) - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 148 14 167 $78 $67 0.81 -$252 1.54 $648 1.75 $892 1978-1991 $1,193 70 8 91 $39 $34 0.41 -$793 0.85 -$184 0.94 -$73 1992-2010 $1,073 22 4 49 $15 $13 0.19 -$981 0.40 -$644 0.43 -$608 R49 Attic & Duct
Sealing Package
Pre-1978 $875 234 11 149 $104 $85 1.34 $338 2.83 $1,598 3.02 $1,771 1978-1991 $875 124 5 71 $54 $44 0.67 -$321 1.59 $514 1.60 $526 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 232 17 207 $113 $95 1.01 $20 2.13 $1,495 2.38 $1,823 1978-1991 $1,323 119 9 109 $59 $50 0.52 -$713 1.19 $257 1.31 $409 1992-2010 $1,203 22 4 49 $15 $13 0.17 -$1,127 0.36 -$774 0.39 -$738 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 364 20 270 $167 $138 0.75 -$715 1.75 $1,909 1.83 $2,120 1978-1991 $2,546 246 11 162 $109 $89 0.47 -$1,513 1.21 $524 1.19 $482 1992-2010 $2,427 70 5 72 $32 $27 0.15 -$2,305 0.44 -$1,353 0.44 -$1,365 Advanced
Envelope
Package
Pre-1978 $8,201 560 46 566 $279 $237 0.40 -$5,494 0.84 -$1,287 0.99 -$117 Water Heating
Package
All
Vintages $168 0 13 0 $30 $16 1.24 $45 n/a n/a n/a n/a

1.195
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 47: CZ 4 (CPAU) - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$4,705
2,798
0 182 $713 $551 1.58 $3,024 2.38 $6,481 1.99 $4,663
1978-1991 2,798 182 $701 $542 1.55 $2,870 2.38 $6,472 1.99 $4,649 1992-2010 2,798 182 $626 $484 1.49 $2,542 2.36 $6,418 1.98 $4,618 PV + Battery
Pre-1978
$6,979
2,738
0 306 $726 $561 1.12 $905 1.65 $4,521 1.43 $2,971
1978-1991 2,738 310 $715 $552 1.09 $709 1.65 $4,565 1.43 $3,000 1992-2010 2,738 334 $634 $490 1.04 $342 1.80 $5,597 1.49 $3,424

1.196
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 48: CZ 4 (CPAU) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-620 58 278 -$57 -$18 0.00 -$642 0.00 -$1,855 1.53 $121 1978-1991 -382 35 160 -$41 -$16 0.00 -$390 0.00 -$1,285 0.62 -$87 1992-2010 -280 25 116 -$27 -$9 0.00 -$312 0.00 -$1,080 0.43 -$129 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-374 58 366 $21 $43 0.17 -$2,907 0.09 -$2,949 0.70 -$977 1978-1991 -195 35 225 $21 $32 0.16 -$2,958 0.13 -$2,812 0.52 -$1,573 1992-2010 -158 25 163 $12 $21 0.10 -$3,178 0.07 -$3,033 0.36 -$2,085 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$4,932
2,177 58 460 $645 $525 1.43 $2,345 1.94 $4,647 1.97 $4,787 1978-1991 2,416 35 342 $655 $522 1.43 $2,324 2.05 $5,202 1.93 $4,564 1992-2010 2,518 25 299 $635 $502 1.41 $2,224 2.09 $5,390 1.91 $4,493

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$8,113
2,177 58 460 $645 $525 0.86 -$1,227 1.18 $1,466 1.20 $1,606 1978-1991 2,416 35 342 $655 $522 0.86 -$1,248 1.25 $2,021 1.17 $1,383 1992-2010 2,518 25 299 $635 $502 0.85 -$1,348 1.27 $2,209 1.16 $1,312 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-924 134 1,068 -$44 $24 0.41 -$1,698 0.00 -$2,609 1.34 $887 1978-1991 -924 134 1,068 -$41 $26 0.43 -$1,639 0.00 -$2,609 1.34 $887 1992-2010 -924 134 1,068 -$28 $36 0.52 -$1,388 0.00 -$2,609 1.34 $887 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-764 134 1,143 $4 $61 0.59 -$1,270 0.27 -$2,024 1.55 $1,530 1978-1991 -764 134 1,143 $6 $63 0.60 -$1,228 0.27 -$2,024 1.55 $1,530 1992-2010 -764 134 1,143 $17 $71 0.67 -$1,025 0.27 -$2,024 1.55 $1,530 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,299
1,874 134 1,250 $705 $603 1.23 $1,889 1.56 $4,057 1.78 $5,722 1978-1991 1,874 134 1,250 $693 $593 1.22 $1,756 1.56 $4,051 1.78 $5,710 1992-2010 1,874 134 1,250 $668 $574 1.18 $1,474 1.55 $4,033 1.78 $5,681 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$10,480
1,874 134 1,250 $705 $603 0.86 -$1,683 1.08 $876 1.24 $2,541 1978-1991 1,874 134 1,250 $693 $593 0.84 -$1,816 1.08 $870 1.24 $2,529 1992-2010 1,874 134 1,250 $668 $574 0.82 -$2,098 1.08 $852 1.24 $2,500 PV + Electric
Ready Pre-Wire
Pre-1978
$8,796
2,798 0 1,086 $713 $551 1.69 $6,743 1.27 $2,390 1.07 $572 1978-1991 2,798 0 1,115 $701 $542 1.66 $6,467 0.92 -$704 1.06 $558 1992-2010 2,798 0 1,108 $626 $484 1.48 $4,728 0.38 -$5,457 1.06 $527

1.197
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.5 Climate Zone 5 (PG&E):

Table 49: CZ 5 (PG&E) - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 45 9 102 $30 $28 0.99 -$8 1.13 $96 1.05 $35 1978-1991 $745 23 4 46 $14 $13 0.46 -$450 0.56 -$328 0.49 -$382 1992-2010 $625 5 2 17 $4 $4 0.17 -$585 0.25 -$472 0.22 -$488 Reduced
Infiltration
Pre-1978
$448
-3 7 73 $11 $12 0.70 -$149 0.99 -$5 0.93 -$33
1978-1991 -5 5 45 $6 $6 0.39 -$309 0.63 -$165 0.55 -$201 1992-2010 0 3 34 $5 $6 0.34 -$331 0.51 -$221 0.44 -$251 Duct Sealing
Pre-1978 $130 13 3 33 $9 $9 1.78 $114 2.03 $133 2.10 $142 1978-1991 $130 6 1 12 $4 $3 0.71 -$42 0.86 -$19 0.86 -$19 New Ducts
Pre-1978
$1,353
36 7 80 $24 $22 0.43 -$862 0.52 -$655 0.53 -$638
1978-1991 26 3 41 $14 $12 0.25 -$1,147 0.31 -$927 0.34 -$896 1992-2010 5 1 13 $3 $3 0.06 -$1,430 0.08 -$1,243 0.10 -$1,222 Cool Roof
Pre-1978
$225
19 -1 -6 $5 $4 0.43 -$141 0.34 -$148 0.23 -$174
1978-1991 16 -1 -2 $4 $3 0.39 -$149 0.33 -$150 0.28 -$162 1992-2010 5 0 -3 $1 $0 0.05 -$232 0.13 -$195 0.11 -$201 R-13 Wall
Insulation Pre-1978 $1,006 7 19 189 $32 $33 0.89 -$125 1.23 $227 1.16 $156 Floor
Insulation Pre-1978 $822 -24 15 148 $16 $20 0.64 -$336 1.09 $75 0.79 -$173 Windows
Pre-1978
$5,873
74 17 186 $51 $47 0.21 -$5,177 0.19 -$4,732 0.26 -$4,325 1978-1991 52 13 146 $38 $35 0.16 -$5,542 0.15 -$4,969 0.21 -$4,668 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.29 $0.22 2.97 $4.45 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.09 $2.38 1.68 $28.96 n/a n/a n/a n/a

1.198
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 50: CZ 5 (PG&E) - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 43 16 175 $42 $40 0.89 -$147 1.09 $103 1.01 $10 1978-1991 $1,193 18 9 90 $20 $19 0.44 -$757 0.59 -$490 0.51 -$585 1992-2010 $1,073 5 5 51 $10 $10 0.24 -$914 0.35 -$697 0.31 -$738 R49 Attic & Duct
Sealing Package
Pre-1978 $875 54 11 128 $37 $34 1.04 $39 1.20 $179 1.16 $141 1978-1991 $875 28 5 55 $17 $16 0.47 -$517 0.58 -$366 0.54 -$402 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 52 18 198 $48 $46 0.92 -$114 1.13 $175 1.07 $93 1978-1991 $1,323 23 9 99 $23 $22 0.44 -$827 0.60 -$531 0.53 -$616 1992-2010 $1,203 5 5 51 $10 $10 0.22 -$1,060 0.31 -$827 0.28 -$868 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 71 21 234 $59 $55 0.58 -$1,197 0.72 -$705 0.71 -$742 1978-1991 $2,546 41 11 122 $31 $29 0.31 -$1,986 0.41 -$1,496 0.40 -$1,538 1992-2010 $2,427 10 6 61 $12 $12 0.13 -$2,359 0.19 -$1,961 0.19 -$1,975 Advanced
Envelope
Package
Pre-1978 $8,201 115 48 515 $116 $111 0.36 -$5,872 0.44 -$4,597 0.46 -$4,429 Water Heating
Package
All
Vintages $168 0 13 0 $37 $19 1.50 $94 n/a n/a n/a n/a

1.199
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 51: CZ 5 (PG&E) - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$4,292
2,676
0 200 $555 $429 2.72 $8,134 2.41 $6,049 1.99 $4,255
1978-1991 2,632 197 $542 $419 2.66 $7,840 2.37 $5,879 1.96 $4,120 1992-2010 2,548 191 $519 $401 2.54 $7,298 2.34 $5,750 1.90 $3,863 PV + Battery
Pre-1978
$6,567
2,616
0 380 $561 $434 1.82 $5,864 1.82 $5,381 1.47 $3,096
1978-1991 2,616 382 $553 $427 1.79 $5,679 1.83 $5,464 1.48 $3,138 1992-2010 2,616 391 $530 $409 1.72 $5,137 1.85 $5,593 1.52 $3,442

1.200
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 52: CZ 5 (PG&E) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-752 61 247 -$77 -$32 0.00 -$1,209 0.00 -$1,950 0.00 -$415 1978-1991 -447 35 129 -$44 -$18 0.00 -$798 0.00 -$1,303 0.00 -$439 1992-2010 -337 27 102 -$33 -$14 0.00 -$656 0.00 -$1,100 0.00 -$353 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-634 61 301 -$44 -$6 0.00 -$3,707 0.00 -$4,091 0.17 -$2,699 1978-1991 -376 35 161 -$27 -$5 0.00 -$3,659 0.00 -$3,768 0.09 -$2,968 1992-2010 -291 27 125 -$22 -$5 0.00 -$3,663 0.00 -$3,751 0.06 -$3,056 Heat Pump at
HVAC
Replacement +
PV
Pre-1978 $4,519 1,923 61 447 $570 $468 2.82 $9,064 1.94 $4,241 1.85 $3,847 1978-1991 $4,446 2,228 35 329 $554 $444 2.72 $8,417 2.08 $4,877 1.87 $3,890 1992-2010 $4,245 2,338 27 303 $543 $431 2.77 $8,265 2.12 $5,081 1.98 $4,173

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978 $7,700 1,923 61 447 $570 $468 1.64 $5,492 1.14 $1,060 1.09 $666 1978-1991 $7,627 2,228 35 329 $554 $444 1.57 $4,845 1.22 $1,696 1.09 $709 1992-2010 $7,426 2,338 27 303 $543 $431 1.57 $4,693 1.25 $1,900 1.13 $992 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-1,066 141 1,090 -$109 -$23 0.00 -$3,584 0.00 -$3,479 1.16 $407 1978-1991 -1,066 141 1,090 -$108 -$23 0.00 -$3,580 0.00 -$3,479 1.16 $407 1992-2010 -1,066 141 1,090 -$103 -$19 0.00 -$3,467 0.00 -$3,479 1.16 $407 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-861 141 1,175 -$41 $29 0.28 -$2,225 0.14 -$2,376 1.47 $1,315 1978-1991 -861 141 1,175 -$41 $29 0.28 -$2,221 0.14 -$2,376 1.47 $1,315 1992-2010 -861 141 1,175 -$36 $33 0.32 -$2,107 0.14 -$2,376 1.47 $1,315 HPWH at Water
Heater
Replacement +
PV
Pre-1978 $6,886 1,610 141 1,290 $608 $531 2.09 $8,295 1.42 $2,905 1.71 $4,861 1978-1991 $6,814 1,610 141 1,290 $605 $528 2.10 $8,300 1.42 $2,903 1.72 $4,931 1992-2010 $6,612 1,610 141 1,290 $604 $527 2.16 $8,490 1.42 $2,902 1.78 $5,128 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978 $10,067 1,610 141 1,290 $608 $531 1.42 $4,723 0.97 -$276 1.17 $1,680 1978-1991 $9,995 1,610 141 1,290 $605 $528 1.43 $4,728 0.97 -$278 1.18 $1,750 1992-2010 $9,973 1,610 141 1,290 $604 $527 1.45 $4,918 0.97 -$279 1.20 $1,947 PV + Electric
Ready Pre-Wire
Pre-1978 $8,383 2,676 0 1,074 $555 $429 1.38 $3,540 1.23 $1,958 1.02 $164 1978-1991 $8,311 2,632 0 1,111 $542 $419 1.36 $3,326 0.98 -$138 1.01 $101 1992-2010 $8,109 2,548 0 1,101 $519 $401 1.33 $3,007 0.84 -$1,353 1.01 $46

1.201
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.6 Climate Zone 5 (PG&E/SoCalGas):

Table 53: CZ 5 (PG&E/SoCalGas) - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 45 9 102 $27 $24 0.85 -$128 1.13 $96 1.05 $35 1978-1991 $745 23 4 46 $13 $11 0.40 -$503 0.56 -$328 0.49 -$382 1992-2010 $625 5 2 17 $4 $3 0.14 -$604 0.25 -$472 0.22 -$488 Reduced
Infiltration
Pre-1978
$448
-3 7 73 $8 $9 0.51 -$247 0.99 -$5 0.93 -$33
1978-1991 -5 5 45 $4 $4 0.27 -$369 0.63 -$165 0.55 -$201 1992-2010 0 3 34 $4 $4 0.26 -$372 0.51 -$221 0.44 -$251 Duct Sealing
Pre-1978 $130 13 3 33 $8 $7 1.51 $75 2.03 $133 2.10 $142 1978-1991 $130 6 1 12 $3 $3 0.63 -$55 0.86 -$19 0.86 -$19 New Ducts
Pre-1978
$1,353
36 7 80 $21 $19 0.37 -$955 0.52 -$655 0.53 -$638
1978-1991 26 3 41 $13 $11 0.22 -$1,191 0.31 -$927 0.34 -$896 1992-2010 5 1 13 $3 $3 0.05 -$1,443 0.08 -$1,243 0.10 -$1,222 Cool Roof
Pre-1978
$225
19 -1 -6 $6 $4 0.49 -$126 0.34 -$148 0.23 -$174
1978-1991 16 -1 -2 $5 $3 0.43 -$141 0.33 -$150 0.28 -$162 1992-2010 5 0 -3 $1 $1 0.07 -$227 0.13 -$195 0.11 -$201 R-13 Wall
Insulation Pre-1978 $1,006 7 19 189 $24 $25 0.67 -$373 1.23 $227 1.16 $156 Floor
Insulation Pre-1978 $822 -24 15 148 $10 $13 0.42 -$539 1.09 $75 0.79 -$173 Windows
Pre-1978
$5,873
74 17 186 $44 $40 0.18 -$5,396 0.19 -$4,732 0.26 -$4,325 1978-1991 52 13 146 $32 $30 0.13 -$5,706 0.15 -$4,969 0.21 -$4,668 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.29 $0.22 2.97 $4.45 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.09 $2.38 1.68 $28.96 n/a n/a n/a n/a

1.202
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 54: CZ 5 (PG&E/SoCalGas) - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 43 16 175 $35 $32 0.73 -$365 1.09 $103 1.01 $10 1978-1991 $1,193 18 9 90 $17 $16 0.35 -$866 0.59 -$490 0.51 -$585 1992-2010 $1,073 5 5 51 $8 $8 0.19 -$973 0.35 -$697 0.31 -$738 R49 Attic & Duct
Sealing Package
Pre-1978 $875 54 11 128 $32 $29 0.89 -$112 1.20 $179 1.16 $141 1978-1991 $875 28 5 55 $15 $13 0.41 -$580 0.58 -$366 0.54 -$402 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 5 2 17 $4 $3 0.12 -$750 1.13 $175 1.07 $93 1978-1991 $1,323 52 18 198 $40 $38 0.76 -$359 0.60 -$531 0.53 -$616 1992-2010 $1,203 23 9 99 $19 $18 0.36 -$944 0.31 -$827 0.28 -$868 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 5 5 51 $8 $8 0.17 -$1,119 0.72 -$705 0.71 -$742 1978-1991 $2,546 71 21 234 $50 $46 0.48 -$1,481 0.41 -$1,496 0.40 -$1,538 1992-2010 $2,427 41 11 122 $27 $24 0.26 -$2,125 0.19 -$1,961 0.19 -$1,975 Advanced
Envelope
Package
Pre-1978 $8,201 10 6 61 $10 $10 0.11 -$2,429 0.44 -$4,597 0.46 -$4,429 Water Heating
Package
All
Vintages $168 0 13 0 $31 $15 1.22 $42 n/a n/a n/a n/a

1.203
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 55: CZ 5 (PG&E/SoCalGas) - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$4,292
2,676
0 200 $555 $429 2.72 $8,134 2.41 $6,049 1.99 $4,255
1978-1991 2,632 197 $542 $419 2.66 $7,840 2.37 $5,879 1.96 $4,120 1992-2010 2,548 191 $519 $401 2.54 $7,298 2.34 $5,750 1.90 $3,863 PV + Battery
Pre-1978
$6,567
2,616
0 380 $561 $434 1.82 $5,864 1.82 $5,381 1.47 $3,096
1978-1991 2,616 382 $553 $427 1.79 $5,679 1.83 $5,464 1.48 $3,138 1992-2010 2,616 391 $530 $409 1.72 $5,137 1.85 $5,593 1.52 $3,442

1.204
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 56: CZ 5 (PG&E/SoCalGas) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-752 61 247 -$102 -$57 0.00 -$1,967 0.00 -$1,950 0.00 -$415 1978-1991 -447 35 129 -$57 -$32 0.00 -$1,207 0.00 -$1,303 0.00 -$439 1992-2010 -337 27 102 -$43 -$24 0.00 -$960 0.00 -$1,100 0.00 -$353 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-634 61 301 -$69 -$32 0.00 -$4,465 0.00 -$4,091 0.17 -$2,699 1978-1991 -376 35 161 -$40 -$18 0.00 -$4,067 0.00 -$3,768 0.09 -$2,968 1992-2010 -291 27 125 -$32 -$15 0.00 -$3,967 0.00 -$3,751 0.06 -$3,056 Heat Pump at
HVAC
Replacement +
PV
Pre-1978 $4,519 1,923 61 447 $546 $443 2.67 $8,306 1.94 $4,241 1.85 $3,847 1978-1991 $4,446 2,228 35 329 $541 $430 2.63 $8,009 2.08 $4,877 1.87 $3,890 1992-2010 $4,245 2,338 27 303 $533 $421 2.70 $7,961 2.12 $5,081 1.98 $4,173

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978 $7,700 1,923 61 447 $546 $443 1.55 $4,734 1.14 $1,060 1.09 $666 1978-1991 $7,627 2,228 35 329 $541 $430 1.52 $4,437 1.22 $1,696 1.09 $709 1992-2010 $7,426 2,338 27 303 $533 $421 1.53 $4,389 1.25 $1,900 1.13 $992 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-1,066 141 1,090 -$157 -$73 0.00 -$5,086 0.00 -$3,479 1.16 $407 1978-1991 -1,066 141 1,090 -$155 -$72 0.00 -$5,053 0.00 -$3,479 1.16 $407 1992-2010 -1,066 141 1,090 -$150 -$68 0.00 -$4,941 0.00 -$3,479 1.16 $407 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-861 141 1,175 -$89 -$21 0.00 -$3,727 0.14 -$2,376 1.47 $1,315 1978-1991 -861 141 1,175 -$88 -$20 0.00 -$3,693 0.14 -$2,376 1.47 $1,315 1992-2010 -861 141 1,175 -$83 -$16 0.00 -$3,581 0.14 -$2,376 1.47 $1,315 HPWH at Water
Heater
Replacement +
PV
Pre-1978 $6,886 1,610 141 1,290 $560 $481 1.89 $6,793 1.42 $2,905 1.71 $4,861 1978-1991 $6,814 1,610 141 1,290 $558 $479 1.91 $6,828 1.42 $2,903 1.72 $4,931 1992-2010 $6,612 1,610 141 1,290 $557 $478 1.96 $7,016 1.42 $2,902 1.78 $5,128 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978 $10,067 1,610 141 1,290 $560 $481 1.29 $3,221 0.97 -$276 1.17 $1,680 1978-1991 $9,995 1,610 141 1,290 $558 $479 1.29 $3,256 0.97 -$278 1.18 $1,750 1992-2010 $9,973 1,610 141 1,290 $557 $478 1.32 $3,444 0.97 -$279 1.20 $1,947 PV + Electric
Ready Pre-Wire
Pre-1978 $8,383 2,676 0 1,074 $555 $429 1.38 $3,540 1.23 $1,958 1.02 $164 1978-1991 $8,311 2,632 0 1,111 $542 $419 1.36 $3,326 0.98 -$138 1.01 $101 1992-2010 $8,109 2,548 0 1,101 $519 $401 1.33 $3,007 0.84 -$1,353 1.01 $46

1.205
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.7 Climate Zone 6:

Table 57: CZ 6 - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 143 4 64 $52 $41 1.48 $398 1.61 $455 1.31 $233 1978-1991 $745 58 1 20 $20 $16 0.57 -$361 0.63 -$272 0.50 -$375 1992-2010 $625 18 0 7 $6 $5 0.21 -$556 0.29 -$445 0.21 -$491 Reduced
Infiltration
Pre-1978
$448
-17 2 20 -$3 -$2 0.00 -$549 0.24 -$343 0.23 -$347
1978-1991 -15 1 9 -$3 -$2 0.00 -$566 0.06 -$422 0.06 -$422 1992-2010 -8 1 5 -$1 -$1 0.00 -$527 0.05 -$424 0.02 -$437 Duct Sealing
Pre-1978 $130 63 1 19 $23 $18 3.71 $396 4.30 $428 4.06 $398 1978-1991 $130 38 0 10 $13 $10 2.04 $152 2.43 $186 2.58 $206 New Ducts
Pre-1978
$1,353
146 2 46 $52 $41 0.80 -$297 0.99 -$11 0.94 -$78
1978-1991 116 1 29 $39 $30 0.59 -$620 0.78 -$301 0.76 -$321 1992-2010 28 0 8 $9 $7 0.14 -$1,312 0.24 -$1,025 0.23 -$1,045 Cool Roof
Pre-1978
$225
89 0 19 $30 $23 2.83 $450 2.67 $377 2.29 $291
1978-1991 51 0 8 $16 $12 1.49 $121 1.36 $82 1.33 $74
1992-2010 22 0 4 $7 $5 0.60 -$97 0.78 -$51 0.63 -$84
R-13 Wall
Insulation Pre-1978 $1,006 -1 7 64 $8 $8 0.22 -$883 0.64 -$360 0.52 -$485 Floor
Insulation Pre-1978 $822 -101 5 28 -$29 -$20 0.00 -$1,523 0.00 -$1,141 0.00 -$1,159 Windows
Pre-1978
$5,873
397 2 87 $128 $98 0.45 -$3,646 0.33 -$3,922 0.47 -$3,099 1978-1991 340 2 79 $108 $83 0.38 -$4,113 0.29 -$4,158 0.42 -$3,394 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.28 $0.22 2.86 $4.19 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $2.34 $1.78 1.25 $10.76 n/a n/a n/a n/a

1.206
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 58: CZ 6 - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 125 7 83 $49 $39 0.88 -$155 1.09 $109 0.89 -$129 1978-1991 $1,193 43 2 28 $17 $14 0.30 -$932 0.42 -$698 0.33 -$803 1992-2010 $1,073 9 1 12 $5 $4 0.10 -$1,090 0.19 -$867 0.13 -$935 R49 Attic & Duct
Sealing Package
Pre-1978 $875 198 5 80 $71 $56 1.70 $688 1.95 $833 1.68 $593 1978-1991 $875 93 1 29 $32 $25 0.75 -$243 0.88 -$109 0.78 -$196 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 181 7 98 $68 $54 1.10 $144 1.36 $482 1.18 $233 1978-1991 $1,323 78 3 36 $28 $23 0.46 -$810 0.60 -$536 0.52 -$632 1992-2010 $1,203 9 1 12 $5 $4 0.08 -$1,236 0.17 -$997 0.12 -$1,065 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 258 8 120 $94 $74 0.78 -$637 1.01 $31 0.90 -$266 1978-1991 $2,546 154 3 54 $53 $41 0.43 -$1,621 0.60 -$1,022 0.55 -$1,155 1992-2010 $2,427 37 1 19 $13 $10 0.12 -$2,410 0.22 -$1,903 0.18 -$1,986 Advanced
Envelope
Package
Pre-1978 $8,201 399 15 207 $146 $117 0.38 -$5,709 0.45 -$4,550 0.46 -$4,452 Water Heating
Package
All
Vintages $168 0 13 0 $33 $15 1.20 $38 n/a n/a n/a n/a

1.207
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 59: CZ 6 - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$4,779
3,035
0 241 $595 $453 2.58 $8,315 2.25 $5,950 2.10 $5,265
1978-1991 3,035 241 $589 $448 2.55 $8,175 2.24 $5,939 2.10 $5,248 1992-2010 2,845 226 $510 $388 2.21 $6,372 2.18 $5,652 1.97 $4,622 PV + Battery
Pre-1978
$7,053
2,973
0 367 $649 $494 1.93 $7,141 1.66 $4,622 1.54 $3,796
1978-1991 2,973 373 $623 $474 1.85 $6,545 1.67 $4,742 1.55 $3,853 1992-2010 2,973 401 $558 $425 1.66 $5,072 1.74 $5,201 1.58 $4,118

1.208
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 60: CZ 6 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-178 17 80 -$28 -$15 0.00 -$695 0.00 -$508 0.46 -$123
1978-1991 -79 8 35 -$15 -$9 0.00 -$515 0.00 -$412 0.15 -$194 1992-2010 -52 5 25 -$5 -$2 0.00 -$316 0.00 -$367 0.14 -$195 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-34 17 121 $19 $20 0.17 -$2,899 0.24 -$2,458 0.41 -$1,921 1978-1991 31 8 66 $22 $20 0.17 -$2,925 0.20 -$2,606 0.32 -$2,196 1992-2010 15 5 46 $16 $14 0.12 -$3,103 0.14 -$2,801 0.23 -$2,488 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$5,005
2,857 17 321 $570 $440 2.39 $7,673 2.09 $5,445 2.03 $5,135 1978-1991 2,955 8 276 $556 $426 2.31 $7,256 2.10 $5,527 2.01 $5,049 1992-2010 2,824 5 254 $510 $390 2.12 $6,192 2.11 $5,557 1.90 $4,522

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$8,186
2,857 17 321 $570 $440 1.45 $4,101 1.28 $2,264 1.24 $1,954 1978-1991 2,955 8 276 $556 $426 1.41 $3,684 1.29 $2,346 1.23 $1,868 1992-2010 2,824 5 254 $510 $390 1.29 $2,620 1.29 $2,376 1.16 $1,341 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-793 130 1,072 -$32 $22 0.22 -$2,246 0.25 -$1,957 1.49 $1,265 1978-1991 -793 130 1,072 -$31 $23 0.23 -$2,214 0.25 -$1,957 1.49 $1,265 1992-2010 -793 130 1,072 -$16 $33 0.35 -$1,888 0.25 -$1,957 1.49 $1,265 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-681 130 1,133 $0 $46 0.45 -$1,708 0.46 -$1,502 1.61 $1,682 1978-1991 -681 130 1,133 $1 $47 0.46 -$1,677 0.46 -$1,502 1.61 $1,682 1992-2010 -681 130 1,133 $14 $57 0.55 -$1,392 0.46 -$1,502 1.61 $1,682 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,372
2,241 130 1,313 $584 $491 1.80 $6,561 1.57 $4,175 1.91 $6,696 1978-1991 2,241 130 1,313 $578 $486 1.79 $6,423 1.57 $4,167 1.91 $6,679 1992-2010 2,241 130 1,313 $574 $483 1.78 $6,334 1.56 $4,151 1.90 $6,651 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$10,553
2,241 130 1,313 $584 $491 1.25 $2,990 1.09 $994 1.33 $3,515 1978-1991 2,241 130 1,313 $578 $486 1.24 $2,851 1.09 $986 1.33 $3,498 1992-2010 2,241 130 1,313 $574 $483 1.24 $2,762 1.09 $970 1.33 $3,470 PV + Electric
Ready Pre-Wire
Pre-1978
$8,870
3,035 0 1,153 $595 $453 1.38 $3,721 1.21 $1,859 1.13 $1,174 1978-1991 3,035 0 1,182 $589 $448 1.36 $3,582 1.01 $62 1.13 $1,157 1992-2010 2,845 0 1,176 $510 $388 1.18 $1,779 0.70 -$2,638 1.06 $531

1.209
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.8 Climate Zone 7:

Table 61: CZ 7 - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 129 3 42 $63 $54 1.93 $775 1.10 $74 0.90 -$74 1978-1991 $745 55 1 13 $27 $22 0.80 -$166 0.40 -$445 0.37 -$466 1992-2010 $625 15 0 4 $8 $6 0.27 -$509 0.20 -$502 0.13 -$543 Reduced
Infiltration
Pre-1978
$448
-19 1 9 -$5 -$4 0.00 -$620 0.00 -$466 0.00 -$466
1978-1991 -16 1 1 -$5 -$4 0.00 -$631 0.00 -$516 0.00 -$504 1992-2010 -8 0 0 -$3 -$2 0.00 -$565 0.00 -$498 0.00 -$478 Duct Sealing
Pre-1978 $130 55 0 13 $27 $23 4.69 $538 2.77 $230 2.47 $191 1978-1991 $130 33 0 9 $16 $13 2.73 $253 1.69 $90 1.83 $108 New Ducts
Pre-1978
$1,353
140 1 36 $69 $58 1.15 $227 0.65 -$476 0.65 -$479
1978-1991 115 0 27 $57 $47 0.94 -$99 0.53 -$629 0.56 -$598 1992-2010 28 0 8 $14 $12 0.23 -$1,165 0.17 -$1,124 0.17 -$1,128 Cool Roof
Pre-1978
$225
87 0 18 $40 $33 4.05 $748 2.09 $246 1.93 $208
1978-1991 50 0 10 $22 $19 2.26 $310 1.06 $13 1.20 $44
1992-2010 21 0 5 $9 $8 0.94 -$16 0.64 -$82 0.53 -$105
R-13 Wall
Insulation Pre-1978 $1,006 -16 4 29 $2 $3 0.08 -$1,040 0.19 -$812 0.11 -$893 Floor
Insulation Pre-1978 $822 -101 3 1 -$40 -$32 0.00 -$1,895 0.00 -$1,314 0.00 -$1,289 Windows
Pre-1978
$5,873
343 1 69 $158 $132 0.60 -$2,633 0.25 -$4,416 0.32 -$3,978 1978-1991 295 1 67 $139 $116 0.53 -$3,126 0.23 -$4,507 0.30 -$4,096 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.41 $0.34 4.49 $7.87 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.39 $2.82 1.99 $42.01 n/a n/a n/a n/a

1.210
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 62: CZ 7 - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 110 4 50 $58 $50 1.11 $146 0.66 -$403 0.55 -$535 1978-1991 $1,193 38 1 12 $21 $18 0.39 -$813 0.19 -$966 0.18 -$982 1992-2010 $1,073 7 0 4 $5 $4 0.11 -$1,075 0.07 -$1,001 0.05 -$1,021 R49 Attic & Duct
Sealing Package
Pre-1978 $875 177 3 57 $87 $74 2.25 $1,227 1.29 $257 1.17 $150 1978-1991 $875 84 1 20 $41 $34 1.05 $47 0.59 -$359 0.54 -$399 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 159 4 63 $82 $70 1.41 $604 0.84 -$218 0.75 -$333 1978-1991 $1,323 67 1 20 $35 $30 0.60 -$594 0.33 -$886 0.31 -$911 1992-2010 $1,203 7 0 4 $5 $4 0.10 -$1,221 0.06 -$1,131 0.04 -$1,151 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 240 5 83 $122 $104 1.09 $250 0.64 -$913 0.60 -$1,008 1978-1991 $2,546 149 1 39 $76 $63 0.66 -$959 0.37 -$1,593 0.38 -$1,580 1992-2010 $2,427 35 0 12 $19 $16 0.18 -$2,245 0.12 -$2,132 0.12 -$2,138 Advanced
Envelope
Package
Pre-1978 $8,201 332 8 117 $174 $148 0.48 -$4,766 0.26 -$6,103 0.26 -$6,043 Water Heating
Package
All
Vintages $168 0 13 0 $44 $20 1.61 $116 n/a n/a n/a n/a

1.211
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 63: CZ 7 - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$4,507
2,687
0 226 $948 $788 4.76 $18,682 2.35 $6,093 1.94 $4,258
1978-1991 2,687 226 $947 $788 4.75 $18,669 2.35 $6,086 1.94 $4,248 1992-2010 2,687 226 $857 $713 4.30 $16,410 2.28 $5,777 1.94 $4,219 PV + Battery
Pre-1978
$6,782
2,626
0 351 $935 $778 3.16 $15,944 1.72 $4,854 1.40 $2,739
1978-1991 2,626 357 $999 $831 3.38 $17,541 1.73 $4,956 1.41 $2,770 1992-2010 2,626 388 $857 $713 2.90 $14,000 1.79 $5,391 1.44 $2,997

1.212
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 64: CZ 7 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-84 10 55 -$36 -$26 0.00 -$1,033 0.12 -$200 0.74 -$58
1978-1991 -32 4 27 -$26 -$20 0.00 -$841 0.17 -$188 0.40 -$135 1992-2010 -19 3 22 -$13 -$9 0.00 -$528 0.21 -$179 0.38 -$139 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
41 10 92 $27 $26 0.22 -$2,725 0.24 -$2,481 0.33 -$2,175 1978-1991 70 4 58 $27 $24 0.21 -$2,781 0.20 -$2,601 0.27 -$2,363 1992-2010 45 3 45 $21 $19 0.16 -$2,952 0.15 -$2,767 0.20 -$2,583 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$4,734
2,603 10 281 $922 $771 4.43 $17,903 2.24 $5,893 1.89 $4,196 1978-1991 2,656 4 253 $929 $775 4.45 $18,024 2.25 $5,898 1.87 $4,108 1992-2010 2,669 3 249 $853 $711 4.08 $16,101 2.19 $5,636 1.86 $4,080

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$7,915
2,603 10 281 $922 $771 2.63 $14,331 1.34 $2,712 1.13 $1,015 1978-1991 2,656 4 253 $929 $775 2.64 $14,452 1.34 $2,717 1.12 $927 1992-2010 2,669 3 249 $853 $711 2.42 $12,529 1.31 $2,455 1.11 $899 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-782 130 1,078 -$29 $27 0.28 -$2,075 0.25 -$1,944 1.49 $1,276 1978-1991 -782 130 1,078 -$25 $31 0.32 -$1,971 0.25 -$1,944 1.49 $1,276 1992-2010 -782 130 1,078 -$13 $40 0.42 -$1,688 0.25 -$1,944 1.49 $1,276 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-675 130 1,140 $10 $60 0.58 -$1,292 0.44 -$1,544 1.63 $1,736 1978-1991 -675 130 1,140 $15 $63 0.62 -$1,187 0.44 -$1,544 1.63 $1,736 1992-2010 -675 130 1,140 $24 $71 0.69 -$950 0.44 -$1,544 1.63 $1,736 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,101
1,905 130 1,304 $814 $728 2.78 $13,991 1.61 $4,333 1.80 $5,695 1978-1991 1,905 130 1,304 $811 $726 2.77 $13,915 1.61 $4,327 1.80 $5,686 1992-2010 1,905 130 1,304 $806 $722 2.75 $13,788 1.61 $4,319 1.80 $5,662 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$10,282
1,905 130 1,304 $814 $728 1.91 $10,419 1.11 $1,152 1.24 $2,514 1978-1991 1,905 130 1,304 $811 $726 1.90 $10,343 1.11 $1,146 1.24 $2,505 1992-2010 1,905 130 1,304 $806 $722 1.89 $10,216 1.11 $1,138 1.24 $2,481 PV + Electric
Ready Pre-Wire
Pre-1978
$8,598
2,687 0 1,185 $948 $788 2.47 $14,089 1.23 $2,002 1.02 $167 1978-1991 2,687 0 1,215 $947 $788 2.47 $14,075 1.13 $1,084 1.02 $157 1992-2010 2,687 0 1,208 $857 $713 2.24 $11,816 0.89 -$925 1.01 $128

1.213
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.9 Climate Zone 8:

Table 65: CZ 8 - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 211 3 47 $71 $55 1.97 $809 1.80 $598 2.09 $814 1978-1991 $745 108 1 18 $36 $28 1.01 $4 0.98 -$16 1.09 $66 1992-2010 $625 33 0 6 $11 $8 0.35 -$454 0.45 -$342 0.48 -$323 Reduced
Infiltration
Pre-1978
$448
-7 2 15 $0 $1 0.04 -$481 0.39 -$272 0.45 -$245
1978-1991 -8 1 8 -$1 -$1 0.00 -$519 0.18 -$365 0.12 -$392 1992-2010 -6 1 3 -$1 -$1 0.00 -$519 0.15 -$380 0.15 -$379 Duct Sealing
Pre-1978 $130 167 1 27 $58 $44 9.12 $1,185 9.02 $1,042 11.11 $1,315 1978-1991 $130 100 0 17 $35 $27 5.50 $657 5.48 $582 6.11 $665 New Ducts
Pre-1978
$1,353
375 2 64 $131 $100 1.98 $1,491 2.00 $1,351 2.44 $1,947
1978-1991 303 1 49 $107 $82 1.61 $929 1.66 $889 1.96 $1,300 1992-2010 87 0 17 $29 $22 0.44 -$856 0.55 -$613 0.64 -$482 Cool Roof
Pre-1978
$225
128 0 11 $41 $31 3.80 $688 3.07 $466 3.81 $633
1978-1991 96 0 11 $32 $24 2.94 $478 2.67 $377 3.03 $457 1992-2010 44 0 6 $14 $10 1.27 $65 1.32 $73 1.58 $132
R-13 Wall
Insulation Pre-1978 $1,006 40 6 58 $22 $19 0.51 -$556 1.04 $37 0.98 -$25 Floor
Insulation Pre-1978 $822 -102 3 7 -$30 -$21 0.00 -$1,568 0.00 -$1,105 0.00 -$1,089 Windows
Pre-1978
$5,873
634 2 98 $213 $163 0.74 -$1,699 0.51 -$2,897 0.76 -$1,407 1978-1991 515 2 83 $177 $135 0.62 -$2,536 0.42 -$3,389 0.63 -$2,149 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.28 $0.22 2.86 $4.19 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $2.34 $1.78 1.25 $10.76 n/a n/a n/a n/a

1.214
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 66: CZ 8 - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 200 5 60 $69 $55 1.22 $296 1.27 $320 1.50 $592 1978-1991 $1,193 98 2 24 $34 $27 0.60 -$533 0.67 -$398 0.72 -$330 1992-2010 $1,073 26 1 8 $10 $8 0.19 -$976 0.31 -$745 0.34 -$703 R49 Attic & Duct
Sealing Package
Pre-1978 $875 366 4 75 $125 $97 2.95 $1,921 2.86 $1,624 3.33 $2,040 1978-1991 $875 200 1 34 $69 $53 1.62 $608 1.60 $526 1.82 $717 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 353 5 87 $123 $96 1.94 $1,392 2.00 $1,320 2.33 $1,763 1978-1991 $1,323 185 2 35 $65 $51 1.02 $33 1.11 $142 1.31 $414 1992-2010 $1,203 26 1 8 $10 $8 0.17 -$1,122 0.27 -$875 0.31 -$833 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 559 6 122 $197 $152 1.60 $1,706 1.65 $1,662 2.00 $2,537 1978-1991 $2,546 387 2 70 $138 $106 1.11 $314 1.17 $432 1.38 $980 1992-2010 $2,427 111 1 25 $38 $29 0.32 -$1,846 0.42 -$1,397 0.49 -$1,227 Advanced
Envelope
Package
Pre-1978 $8,201 755 12 186 $272 $211 0.69 -$2,873 0.69 -$2,524 0.86 -$1,172 Water Heating
Package
All
Vintages $168 0 13 0 $34 $15 1.21 $39 n/a n/a n/a n/a

1.215
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 67: CZ 8 - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$5,142
3,143
0 250 $678 $516 2.73 $9,817 2.31 $6,751 2.17 $6,037
1978-1991 3,143 250 $660 $502 2.66 $9,401 2.31 $6,737 2.17 $6,013 1992-2010 3,143 250 $614 $468 2.47 $8,354 2.30 $6,703 2.16 $5,952 PV + Battery
Pre-1978
$7,417
3,081
0 339 $731 $557 2.07 $8,618 1.70 $5,167 1.61 $4,497
1978-1991 3,081 343 $716 $546 2.02 $8,283 1.71 $5,288 1.62 $4,609 1992-2010 3,081 367 $670 $510 1.89 $7,221 1.79 $5,863 1.67 $4,937

1.216
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 68: CZ 8 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-148 14 67 -$34 -$20 0.00 -$864 0.00 -$285 0.48 -$118
1978-1991 -73 7 33 -$26 -$17 0.00 -$758 0.00 -$278 0.21 -$179 1992-2010 -49 5 24 -$17 -$11 0.00 -$585 0.00 -$263 0.17 -$189 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
123 14 133 $59 $50 0.43 -$2,018 0.51 -$1,588 0.66 -$1,093 1978-1991 156 7 89 $53 $43 0.37 -$2,220 0.42 -$1,871 0.56 -$1,444 1992-2010 116 5 70 $40 $32 0.28 -$2,545 0.33 -$2,187 0.41 -$1,910 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$5,369
2,995 14 317 $616 $474 2.40 $8,311 2.20 $6,462 2.10 $5,902 1978-1991 3,070 7 283 $615 $470 2.38 $8,192 2.20 $6,453 2.08 $5,818 1992-2010 3,094 5 273 $606 $463 2.35 $7,976 2.20 $6,440 2.07 $5,759

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$8,550
2,995 14 317 $616 $474 1.50 $4,739 1.38 $3,281 1.32 $2,721 1978-1991 3,070 7 283 $615 $470 1.49 $4,620 1.38 $3,272 1.31 $2,637 1992-2010 3,094 5 273 $606 $463 1.46 $4,404 1.38 $3,259 1.30 $2,578 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-750 127 1,048 -$31 $21 0.22 -$2,265 0.35 -$1,680 1.51 $1,313 1978-1991 -750 127 1,048 -$29 $22 0.23 -$2,222 0.35 -$1,680 1.51 $1,313 1992-2010 -750 127 1,048 -$22 $28 0.29 -$2,047 0.35 -$1,680 1.51 $1,313 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-637 127 1,106 $1 $45 0.44 -$1,726 0.50 -$1,383 1.63 $1,757 1978-1991 -637 127 1,106 $2 $47 0.45 -$1,691 0.50 -$1,383 1.63 $1,757 1992-2010 -637 127 1,106 $9 $52 0.50 -$1,535 0.50 -$1,383 1.63 $1,757 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,736
2,393 127 1,298 $673 $557 1.95 $8,160 1.68 $5,244 1.97 $7,500 1978-1991 2,393 127 1,298 $656 $544 1.91 $7,760 1.68 $5,230 1.97 $7,479 1992-2010 2,393 127 1,298 $610 $509 1.78 $6,716 1.67 $5,198 1.96 $7,420 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$10,917
2,393 127 1,298 $673 $557 1.38 $4,588 1.19 $2,063 1.40 $4,319 1978-1991 2,393 127 1,298 $656 $544 1.35 $4,188 1.19 $2,049 1.39 $4,298 1992-2010 2,393 127 1,298 $610 $509 1.26 $3,144 1.18 $2,017 1.39 $4,239 PV + Electric
Ready Pre-Wire
Pre-1978
$9,233
3,143 0 1,155 $678 $516 1.51 $5,223 1.29 $2,660 1.21 $1,946 1978-1991 3,143 0 1,186 $660 $502 1.47 $4,807 1.01 $109 1.21 $1,922 1992-2010 3,143 0 1,178 $614 $468 1.37 $3,760 0.47 -$4,867 1.20 $1,861

1.217
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.10 Climate Zone 9:

Table 69: CZ 9 - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 192 5 70 $66 $52 1.88 $734 2.19 $885 1.93 $695 1978-1991 $745 98 2 30 $33 $26 0.92 -$63 1.18 $133 1.02 $18 1992-2010 $625 32 1 12 $10 $8 0.35 -$457 0.53 -$293 0.46 -$339 Reduced
Infiltration
Pre-1978
$448
-2 3 28 $3 $3 0.19 -$406 0.95 -$21 0.52 -$216
1978-1991 -6 2 16 $0 $1 0.06 -$473 0.61 -$173 0.37 -$284 1992-2010 -3 1 11 $1 $1 0.06 -$472 0.47 -$237 0.27 -$329 Duct Sealing
Pre-1978 $130 158 1 41 $56 $43 8.79 $1,138 12.71 $1,523 9.84 $1,149 1978-1991 $130 92 0 20 $31 $24 4.89 $568 7.61 $859 6.03 $654 New Ducts
Pre-1978
$1,353
363 3 94 $126 $97 1.92 $1,403 2.77 $2,391 2.27 $1,725
1978-1991 292 2 67 $95 $73 1.44 $671 2.21 $1,639 1.86 $1,163 1992-2010 84 0 23 $26 $20 0.39 -$923 0.75 -$339 0.61 -$533 Cool Roof
Pre-1978
$225
121 0 14 $39 $29 3.60 $639 3.92 $657 3.08 $467
1978-1991 91 0 10 $28 $22 2.64 $403 3.32 $523 2.77 $398 1992-2010 43 0 6 $12 $9 1.14 $34 1.64 $144 1.44 $98
R-13 Wall
Insulation Pre-1978 $1,006 52 9 96 $30 $26 0.69 -$347 1.61 $615 1.23 $230 Floor
Insulation Pre-1978 $822 -99 5 27 -$26 -$18 0.00 -$1,465 0.00 -$858 0.00 -$938 Windows
Pre-1978
$5,873
653 4 131 $211 $162 0.74 -$1,738 0.67 -$1,943 0.82 -$1,085 1978-1991 538 3 112 $169 $130 0.59 -$2,703 0.56 -$2,578 0.70 -$1,753 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.28 $0.22 2.86 $4.19 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $2.34 $1.78 1.25 $10.76 n/a n/a n/a n/a

1.218
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 70: CZ 9 - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 188 8 98 $69 $55 1.23 $314 1.72 $860 1.39 $466 1978-1991 $1,193 91 4 45 $33 $26 0.59 -$546 0.94 -$70 0.76 -$287 1992-2010 $1,073 29 2 22 $11 $9 0.23 -$932 0.51 -$527 0.37 -$679 R49 Attic & Duct
Sealing Package
Pre-1978 $875 339 6 106 $118 $92 2.80 $1,769 3.70 $2,366 3.12 $1,855 1978-1991 $875 185 3 50 $61 $47 1.44 $431 2.09 $951 1.72 $629 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 333 9 133 $119 $94 1.90 $1,330 2.74 $2,307 2.22 $1,615 1978-1991 $1,323 175 4 61 $60 $47 0.95 -$70 1.56 $735 1.29 $379 1992-2010 $1,203 29 2 22 $11 $9 0.20 -$1,078 0.45 -$657 0.33 -$809 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 536 10 184 $186 $145 1.52 $1,488 2.25 $3,182 1.87 $2,217 1978-1991 $2,546 372 5 108 $123 $96 1.01 $15 1.61 $1,555 1.33 $836 1992-2010 $2,427 110 2 44 $36 $28 0.31 -$1,878 0.63 -$902 0.49 -$1,244 Advanced
Envelope
Package
Pre-1978 $8,201 772 22 317 $273 $216 0.70 -$2,740 0.99 -$110 0.94 -$491 Water Heating
Package
All
Vintages $168 0 13 0 $33 $15 1.20 $37 n/a n/a n/a n/a

1.219
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 71: CZ 9 - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$5,179
3,306 0
0 0
260 $665 $506 2.66 $9,471 2.36 $7,044 2.18 $6,104
1978-1991 3,306 260 $649 $494 2.59 $9,106 2.36 $7,022 2.17 $6,080 1992-2010 3,306 260 $636 $484 2.54 $8,807 2.35 $6,985 2.16 $6,020 PV + Battery
Pre-1978
$7,454
3,244 0
0 0
354 $719 $547 2.02 $8,293 1.70 $5,202 1.60 $4,491
1978-1991 3,244 358 $705 $537 1.98 $7,989 1.71 $5,255 1.62 $4,600 1992-2010 3,244 381 $666 $507 1.87 $7,095 1.76 $5,674 1.65 $4,877

1.220
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 72: CZ 9 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-283 26 121 -$45 -$25 0.00 -$992 0.00 -$356 0.70 -$67
1978-1991 -158 14 65 -$26 -$14 0.00 -$679 0.00 -$329 0.27 -$167 1992-2010 -111 10 47 -$12 -$5 0.00 -$411 0.00 -$311 0.22 -$177 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-4 26 198 $45 $44 0.37 -$2,204 0.66 -$1,113 0.68 -$1,042 1978-1991 72 14 128 $48 $42 0.36 -$2,264 0.54 -$1,492 0.55 -$1,468 1992-2010 50 10 97 $36 $31 0.27 -$2,577 0.42 -$1,894 0.40 -$1,933 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$5,406
3,023 26 380 $611 $475 2.39 $8,277 2.24 $6,687 2.11 $6,022 1978-1991 3,148 14 324 $622 $479 2.41 $8,393 2.24 $6,692 2.09 $5,900 1992-2010 3,195 10 307 $620 $476 2.40 $8,322 2.24 $6,678 2.08 $5,841

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$8,587
3,023 26 380 $611 $475 1.49 $4,705 1.41 $3,506 1.33 $2,841 1978-1991 3,148 14 324 $622 $479 1.51 $4,822 1.41 $3,511 1.32 $2,719 1992-2010 3,195 10 307 $620 $476 1.50 $4,750 1.41 $3,497 1.31 $2,660 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-778 128 1,049 -$32 $21 0.21 -$2,270 0.32 -$1,756 1.49 $1,277 1978-1991 -778 128 1,049 -$29 $23 0.24 -$2,211 0.32 -$1,756 1.49 $1,277 1992-2010 -778 128 1,049 -$14 $35 0.36 -$1,848 0.32 -$1,756 1.49 $1,277 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-662 128 1,108 $0 $45 0.44 -$1,741 0.51 -$1,368 1.61 $1,700 1978-1991 -662 128 1,108 $2 $47 0.46 -$1,682 0.51 -$1,368 1.61 $1,700 1992-2010 -662 128 1,108 $15 $57 0.55 -$1,384 0.51 -$1,368 1.61 $1,700 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,773
2,528 128 1,309 $657 $545 1.90 $7,749 1.70 $5,467 1.97 $7,546 1978-1991 2,528 128 1,308 $641 $533 1.86 $7,385 1.70 $5,449 1.97 $7,523 1992-2010 2,528 128 1,308 $628 $523 1.82 $7,089 1.70 $5,413 1.96 $7,467 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$10,954
2,528 128 1,309 $657 $545 1.34 $4,177 1.21 $2,286 1.40 $4,365 1978-1991 2,528 128 1,308 $641 $533 1.31 $3,813 1.21 $2,268 1.40 $4,342 1992-2010 2,528 128 1,308 $628 $523 1.29 $3,517 1.20 $2,232 1.39 $4,286 PV + Electric
Ready Pre-Wire
Pre-1978
$9,270
3,306 0 1,141 $665 $506 1.47 $4,877 1.32 $2,953 1.22 $2,013 1978-1991 3,306 0 1,157 $649 $494 1.44 $4,512 0.92 -$771 1.21 $1,989 1992-2010 3,306 0 1,151 $636 $484 1.41 $4,213 0.20 -$7,428 1.21 $1,929

1.221
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.11 Climate Zone 10 (SCE/SoCalGas):

Table 73: CZ 10 (SCE/SoCalGas) - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 235 6 79 $78 $62 2.21 $1,010 2.28 $954 2.04 $772 1978-1991 $745 121 3 31 $39 $31 1.11 $89 1.24 $181 1.11 $81 1992-2010 $625 39 1 12 $12 $10 0.42 -$411 0.55 -$281 0.49 -$321 Reduced
Infiltration
Pre-1978
$448
16 4 42 $10 $9 0.56 -$220 1.01 $4 0.96 -$16
1978-1991 7 3 25 $5 $5 0.31 -$347 0.69 -$141 0.65 -$156 1992-2010 4 2 17 $4 $4 0.21 -$396 0.39 -$275 0.50 -$225 Duct Sealing
Pre-1978 $130 218 2 45 $73 $56 11.58 $1,544 14.01 $1,691 11.62 $1,381 1978-1991 $130 125 1 22 $41 $31 6.44 $795 8.38 $960 6.94 $772 New Ducts
Pre-1978
$1,353
476 5 103 $159 $123 2.43 $2,168 3.03 $2,750 2.55 $2,096 1978-1991 374 2 71 $123 $95 1.87 $1,324 2.41 $1,905 2.06 $1,433 1992-2010 110 1 26 $33 $26 0.51 -$747 0.79 -$283 0.69 -$426 Cool Roof
Pre-1978
$225
144 -1 8 $44 $33 4.04 $748 4.08 $693 3.14 $481
1978-1991 107 0 4 $32 $24 2.96 $483 3.10 $472 2.67 $377 1992-2010 50 0 4 $14 $11 1.28 $69 1.75 $168 1.36 $80
R-13 Wall
Insulation Pre-1978 $1,006 99 12 133 $48 $41 1.08 $92 1.94 $948 1.57 $578 Floor
Insulation Pre-1978 $822 -65 8 65 -$11 -$5 0.00 -$1,085 0.22 -$643 0.32 -$556 Windows
Pre-1978
$5,873
806 6 153 $259 $199 0.91 -$618 0.78 -$1,282 0.87 -$782
1978-1991 655 5 130 $208 $160 0.73 -$1,787 0.64 -$2,114 0.73 -$1,613 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.28 $0.22 2.86 $4.19 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $2.34 $1.78 1.25 $10.76 n/a n/a n/a n/a

1.222
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 74: CZ 10 (SCE/SoCalGas) - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 250 10 121 $88 $71 1.58 $780 1.81 $971 1.65 $774 1978-1991 $1,193 127 5 57 $44 $36 0.80 -$265 1.04 $47 0.93 -$88 1992-2010 $1,073 43 3 31 $16 $13 0.33 -$809 0.53 -$503 0.48 -$562 R49 Attic & Duct
Sealing Package
Pre-1978 $875 438 8 120 $146 $114 3.48 $2,434 3.96 $2,590 3.44 $2,132 1978-1991 $875 238 3 53 $78 $60 1.85 $832 2.22 $1,070 1.93 $811 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 448 12 161 $154 $122 2.46 $2,165 2.97 $2,601 2.59 $2,106 1978-1991 $1,323 241 6 78 $82 $65 1.31 $458 1.68 $897 1.48 $629 1992-2010 $1,203 43 3 31 $16 $13 0.29 -$955 0.47 -$633 0.43 -$692 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 705 14 217 $240 $188 1.97 $2,776 2.43 $3,637 2.13 $2,884 1978-1991 $2,546 485 7 124 $162 $126 1.33 $930 1.73 $1,861 1.51 $1,295 1992-2010 $2,427 149 4 56 $48 $38 0.42 -$1,579 0.66 -$813 0.58 -$1,010 Advanced
Envelope
Package
Pre-1978 $8,201 1,054 31 420 $368 $292 0.95 -$461 1.13 $1,042 1.08 $688 Water Heating
Package
All
Vintages $168 0 13 0 $34 $15 1.22 $41 n/a n/a n/a n/a

1.223
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 75: CZ 10 (SCE/SoCalGas) - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$5,350
3,409
0 271 $704 $536 2.73 $10,182 2.28 $6,830 2.14 $6,097
1978-1991 3,409 271 $683 $520 2.65 $9,707 2.27 $6,809 2.13 $6,067 1992-2010 3,409 271 $657 $500 2.54 $9,102 2.26 $6,765 2.12 $5,996 PV + Battery
Pre-1978
$7,624
3,347
0 362 $755 $575 2.07 $8,933 1.65 $4,948 1.57 $4,358
1978-1991 3,347 365 $737 $561 2.03 $8,520 1.65 $4,954 1.58 $4,430 1992-2010 3,347 383 $715 $544 1.96 $8,019 1.69 $5,233 1.60 $4,582

1.224
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 76: CZ 10 (SCE/SoCalGas) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-458 39 155 -$60 -$32 0.00 -$1,203 0.00 -$547 0.33 -$152 1978-1991 -272 22 86 -$37 -$20 0.00 -$858 0.00 -$456 0.00 -$240 1992-2010 -202 17 62 -$22 -$11 0.00 -$585 0.00 -$416 0.00 -$246 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-100 39 254 $48 $50 0.43 -$2,004 0.67 -$1,064 0.76 -$765 1978-1991 17 22 164 $50 $46 0.39 -$2,136 0.56 -$1,432 0.61 -$1,257 1992-2010 7 17 126 $37 $34 0.29 -$2,497 0.43 -$1,856 0.46 -$1,739 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$5,576
2,951 39 426 $614 $482 2.35 $8,298 2.13 $6,285 2.06 $5,930 1978-1991 3,136 22 357 $628 $487 2.37 $8,447 2.14 $6,353 2.04 $5,813 1992-2010 3,207 17 333 $634 $489 2.38 $8,516 2.14 $6,356 2.03 $5,748

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$8,757
2,951 39 426 $614 $482 1.49 $4,726 1.35 $3,104 1.31 $2,749 1978-1991 3,136 22 357 $628 $487 1.50 $4,875 1.36 $3,172 1.30 $2,632 1992-2010 3,207 17 333 $634 $489 1.51 $4,944 1.36 $3,175 1.29 $2,567 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-825 128 1,018 -$44 $11 0.12 -$2,558 0.28 -$1,865 1.39 $1,009 1978-1991 -825 128 1,018 -$38 $16 0.17 -$2,401 0.28 -$1,865 1.39 $1,009 1992-2010 -825 128 1,018 -$26 $25 0.26 -$2,141 0.28 -$1,865 1.39 $1,009 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-686 128 1,082 -$7 $40 0.39 -$1,889 0.51 -$1,371 1.54 $1,504 1978-1991 -686 128 1,082 -$1 $44 0.43 -$1,763 0.51 -$1,371 1.54 $1,504 1992-2010 -686 128 1,082 $9 $52 0.50 -$1,541 0.51 -$1,371 1.54 $1,504 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,943
2,584 128 1,289 $684 $566 1.93 $8,187 1.65 $5,137 1.91 $7,266 1978-1991 2,584 128 1,289 $664 $550 1.88 $7,714 1.64 $5,118 1.91 $7,237 1992-2010 2,584 128 1,289 $637 $530 1.81 $7,113 1.64 $5,076 1.90 $7,171 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$11,124
2,584 128 1,289 $684 $566 1.37 $4,615 1.18 $1,956 1.37 $4,085 1978-1991 2,584 128 1,289 $664 $550 1.34 $4,142 1.17 $1,937 1.36 $4,056 1992-2010 2,584 128 1,289 $637 $530 1.29 $3,541 1.17 $1,895 1.36 $3,990 PV + Electric
Ready Pre-Wire
Pre-1978
$9,441
3,409 0 1,110 $704 $536 1.53 $5,588 1.29 $2,739 1.21 $2,006 1978-1991 3,409 0 1,129 $683 $520 1.49 $5,113 0.84 -$1,530 1.21 $1,976 1992-2010 3,409 0 1,121 $657 $500 1.43 $4,508 0.05 -$8,962 1.20 $1,905

1.225
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.12 Climate Zone 10 (SDG&E):

Table 77: CZ 10 (SDG&E) - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 235 6 79 $113 $97 3.46 $2,060 2.28 $954 2.04 $772 1978-1991 $745 121 3 31 $59 $50 1.79 $658 1.24 $181 1.11 $81 1992-2010 $625 39 1 12 $20 $17 0.71 -$202 0.55 -$281 0.49 -$321 Reduced
Infiltration
Pre-1978
$448
16 4 42 $16 $15 0.87 -$65 1.01 $4 0.96 -$16
1978-1991 7 3 25 $9 $8 0.49 -$255 0.69 -$141 0.65 -$156 1992-2010 4 2 17 $6 $6 0.36 -$322 0.39 -$275 0.50 -$225 Duct Sealing
Pre-1978 $130 218 2 45 $107 $90 18.48 $2,551 14.01 $1,691 11.62 $1,381 1978-1991 $130 125 1 22 $62 $52 10.69 $1,414 8.38 $960 6.94 $772 New Ducts
Pre-1978
$1,353
476 5 103 $237 $199 3.92 $4,443 3.03 $2,750 2.55 $2,096 1978-1991 374 2 71 $188 $157 3.11 $3,205 2.41 $1,905 2.06 $1,433 1992-2010 110 1 26 $55 $46 0.91 -$131 0.79 -$283 0.69 -$426 Cool Roof
Pre-1978
$225
144 -1 8 $63 $52 6.39 $1,324 4.08 $693 3.14 $481
1978-1991 107 0 4 $48 $40 4.87 $950 3.10 $472 2.67 $377 1992-2010 50 0 4 $22 $19 2.26 $310 1.75 $168 1.36 $80
R-13 Wall
Insulation Pre-1978 $1,006 99 12 133 $71 $64 1.70 $792 1.94 $948 1.57 $578 Floor
Insulation Pre-1978 $822 -65 8 65 -$13 -$7 0.00 -$1,145 0.22 -$643 0.32 -$556 Windows
Pre-1978
$5,873
806 6 153 $383 $321 1.46 $3,033 0.78 -$1,282 0.87 -$782 1978-1991 655 5 130 $316 $265 1.20 $1,342 0.64 -$2,114 0.73 -$1,613 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.41 $0.34 4.49 $7.87 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.39 $2.82 1.99 $42.01 n/a n/a n/a n/a

1.226
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 78: CZ 10 (SDG&E) - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 250 10 121 $128 $111 2.48 $1,982 1.81 $971 1.65 $774 1978-1991 $1,193 127 5 57 $67 $58 1.29 $391 1.04 $47 0.93 -$88 1992-2010 $1,073 43 3 31 $26 $23 0.56 -$528 0.53 -$503 0.48 -$562 R49 Attic & Duct
Sealing Package
Pre-1978 $875 438 8 120 $215 $182 5.55 $4,466 3.96 $2,590 3.44 $2,132 1978-1991 $875 238 3 53 $118 $99 3.03 $1,990 2.22 $1,070 1.93 $811 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 448 12 161 $227 $194 3.92 $4,331 2.97 $2,601 2.59 $2,106 1978-1991 $1,323 241 6 78 $124 $106 2.14 $1,691 1.68 $897 1.48 $629 1992-2010 $1,203 43 3 31 $26 $23 0.50 -$674 0.47 -$633 0.43 -$692 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 705 14 217 $358 $304 3.19 $6,252 2.43 $3,637 2.13 $2,884 1978-1991 $2,546 485 7 124 $250 $211 2.21 $3,469 1.73 $1,861 1.51 $1,295 1992-2010 $2,427 149 4 56 $80 $68 0.74 -$696 0.66 -$813 0.58 -$1,010 Advanced
Envelope
Package
Pre-1978 $8,201 1,054 31 420 $555 $474 1.54 $5,016 1.13 $1,042 1.08 $688 Water Heating
Package
All
Vintages $168 0 13 0 $46 $21 1.63 $120 n/a n/a n/a n/a

1.227
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 79: CZ 10 (SDG&E) - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$5,350
3,409
0 271 $1,259 $1,047 5.32 $25,513 2.28 $6,830 2.14 $6,097 1978-1991 3,409 271 $1,240 $1,032 5.24 $25,047 2.27 $6,809 2.13 $6,067 1992-2010 3,409 271 $1,225 $1,019 5.18 $24,678 2.26 $6,765 2.12 $5,996 PV + Battery
Pre-1978
$7,624
3,347
0 362 $1,254 $1,043 3.77 $22,982 1.65 $4,948 1.57 $4,358 1978-1991 3,347 365 $1,273 $1,059 3.82 $23,458 1.65 $4,954 1.58 $4,430 1992-2010 3,347 383 $1,225 $1,019 3.68 $22,268 1.69 $5,233 1.60 $4,582

1.228
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 80: CZ 10 (SDG&E) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-458 39 155 -$101 -$69 0.00 -$2,307 0.00 -$547 0.33 -$152 1978-1991 -272 22 86 -$70 -$49 0.00 -$1,724 0.00 -$456 0.00 -$240 1992-2010 -202 17 62 -$49 -$34 0.00 -$1,269 0.00 -$416 0.00 -$246 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-100 39 254 $67 $71 0.61 -$1,373 0.67 -$1,064 0.76 -$765 1978-1991 17 22 164 $71 $68 0.58 -$1,478 0.56 -$1,432 0.61 -$1,257 1992-2010 7 17 126 $51 $49 0.42 -$2,046 0.43 -$1,856 0.46 -$1,739 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$5,576
2,951 39 426 $1,124 $951 4.64 $22,377 2.13 $6,285 2.06 $5,930 1978-1991 3,136 22 357 $1,142 $959 4.68 $22,608 2.14 $6,353 2.04 $5,813 1992-2010 3,207 17 333 $1,140 $955 4.66 $22,499 2.14 $6,356 2.03 $5,748

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$8,757
2,951 39 426 $1,124 $951 2.93 $18,805 1.35 $3,104 1.31 $2,749 1978-1991 3,136 22 357 $1,142 $959 2.96 $19,036 1.36 $3,172 1.30 $2,632 1992-2010 3,207 17 333 $1,140 $955 2.95 $18,927 1.36 $3,175 1.29 $2,567 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-825 128 1,018 -$52 $7 0.07 -$2,680 0.28 -$1,865 1.39 $1,009 1978-1991 -825 128 1,018 -$50 $9 0.09 -$2,623 0.28 -$1,865 1.39 $1,009 1992-2010 -825 128 1,018 -$40 $17 0.18 -$2,384 0.28 -$1,865 1.39 $1,009 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-686 128 1,082 -$3 $48 0.47 -$1,650 0.51 -$1,371 1.54 $1,504 1978-1991 -686 128 1,082 -$1 $49 0.48 -$1,614 0.51 -$1,371 1.54 $1,504 1992-2010 -686 128 1,082 $7 $56 0.54 -$1,411 0.51 -$1,371 1.54 $1,504 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,943
2,584 128 1,289 $1,091 $958 3.27 $19,934 1.65 $5,137 1.91 $7,266 1978-1991 2,584 128 1,289 $1,073 $943 3.22 $19,503 1.64 $5,118 1.91 $7,237 1992-2010 2,584 128 1,289 $1,047 $921 3.14 $18,837 1.64 $5,076 1.90 $7,171 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$11,124
2,584 128 1,289 $1,091 $958 2.32 $16,362 1.18 $1,956 1.37 $4,085 1978-1991 2,584 128 1,289 $1,073 $943 2.29 $15,931 1.17 $1,937 1.36 $4,056 1992-2010 2,584 128 1,289 $1,047 $921 2.23 $15,265 1.17 $1,895 1.36 $3,990 PV + Electric
Ready Pre-Wire
Pre-1978
$9,441
3,409 0 1,110 $1,259 $1,047 2.99 $20,920 1.29 $2,739 1.21 $2,006 1978-1991 3,409 0 1,129 $1,240 $1,032 2.95 $20,453 0.84 -$1,530 1.21 $1,976 1992-2010 3,409 0 1,121 $1,225 $1,019 2.91 $20,084 0.05 -$8,962 1.20 $1,905

1.229
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.13 Climate Zone 11:

Table 81: CZ 11 - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 226 13 158 $105 $87 3.13 $1,778 3.21 $1,644 2.81 $1,349 1978-1991 $745 120 6 75 $53 $44 1.58 $489 1.66 $495 1.46 $340 1992-2010 $625 40 2 29 $17 $14 0.61 -$275 0.77 -$147 0.66 -$211 Reduced
Infiltration
Pre-1978
$448
39 10 103 $31 $29 1.72 $363 1.80 $359 2.02 $457
1978-1991 25 7 69 $20 $19 1.11 $54 1.28 $127 1.35 $159
1992-2010 16 5 53 $13 $13 0.75 -$127 0.76 -$106 0.94 -$27 Duct Sealing
Pre-1978 $130 265 6 97 $110 $88 18.10 $2,496 20.79 $2,573 17.31 $2,120 1978-1991 $130 156 3 51 $62 $49 10.09 $1,327 11.94 $1,422 9.93 $1,161 New Ducts
Pre-1978
$1,353
563 14 222 $236 $189 3.73 $4,146 4.43 $4,643 3.66 $3,606 1978-1991 439 8 154 $177 $140 2.77 $2,691 3.46 $3,328 2.83 $2,483 1992-2010 137 3 57 $50 $40 0.79 -$317 1.14 $188 0.96 -$53 Cool Roof
Pre-1978
$225
135 -1 7 $49 $37 4.56 $874 4.62 $815 3.25 $506
1978-1991 101 0 5 $36 $28 3.41 $592 4.15 $708 2.59 $359 1992-2010 50 0 4 $16 $12 1.46 $112 1.83 $186 1.44 $98
R-13 Wall
Insulation Pre-1978 $1,006 194 25 294 $116 $102 2.71 $1,930 3.32 $2,337 3.15 $2,162 Floor
Insulation Pre-1978 $822 -21 20 206 $29 $33 1.07 $62 1.24 $194 1.54 $445 Windows
Pre-1978
$5,873
974 25 405 $398 $319 1.45 $2,973 1.12 $699 1.37 $2,145
1978-1991 798 19 322 $320 $256 1.17 $1,098 0.91 -$513 1.11 $642 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.29 $0.22 2.97 $4.45 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.09 $2.38 1.68 $28.96 n/a n/a n/a n/a

1.230
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 82: CZ 11 - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 265 23 263 $136 $116 2.60 $2,139 2.76 $2,105 2.53 $1,825 1978-1991 $1,193 145 13 146 $74 $63 1.41 $548 1.55 $657 1.42 $506 1992-2010 $1,073 56 7 81 $30 $27 0.66 -$404 0.78 -$232 0.79 -$224 R49 Attic & Duct
Sealing Package
Pre-1978 $875 481 18 248 $210 $171 5.22 $4,144 5.80 $4,196 4.90 $3,415 1978-1991 $875 268 8 122 $112 $90 2.76 $1,731 3.25 $1,965 2.67 $1,459 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 516 28 354 $239 $198 3.99 $4,445 4.46 $4,573 3.90 $3,831 1978-1991 $1,323 291 15 193 $132 $108 2.19 $1,769 2.62 $2,143 2.22 $1,609 1992-2010 $1,203 56 7 81 $30 $27 0.59 -$550 0.70 -$362 0.71 -$354 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 816 34 474 $362 $296 3.10 $6,016 3.65 $6,737 3.11 $5,375 1978-1991 $2,546 571 20 292 $244 $198 2.07 $3,067 2.56 $3,969 2.14 $2,911 1992-2010 $2,427 188 10 133 $78 $65 0.71 -$777 0.98 -$36 0.88 -$289 Advanced
Envelope
Package
Pre-1978 $8,201 1,390 81 1,039 $647 $537 1.75 $6,905 1.76 $6,233 1.82 $6,720 Water Heating
Package
All
Vintages $168 0 13 0 $42 $20 1.57 $107 n/a n/a n/a n/a

1.231
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 83: CZ 11 - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$5,929
3,376
0 217 $915 $707 3.24 $14,664 2.44 $8,518 1.84 $4,986
1978-1991 3,376 217 $887 $686 3.14 $14,025 2.43 $8,488 1.84 $4,954 1992-2010 3,376 217 $818 $632 2.90 $12,427 2.42 $8,424 1.82 $4,887 PV + Battery
Pre-1978
$8,203
3,319
0 304 $922 $712 2.39 $12,422 1.79 $6,467 1.38 $3,127
1978-1991 3,319 305 $896 $693 2.32 $11,827 1.79 $6,446 1.38 $3,101 1992-2010 3,318 319 $831 $642 2.15 $10,316 1.79 $6,465 1.38 $3,079

1.232
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 84: CZ 11 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-1,291 116 534 -$84 -$12 0.00 -$615 0.00 -$1,748 2.63 $369 1978-1991 -865 76 343 -$60 -$12 0.00 -$599 0.00 -$1,198 1.41 $94 1992-2010 -649 57 252 -$55 -$16 0.00 -$743 0.00 -$994 0.87 -$30 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-746 116 710 $80 $115 0.98 -$75 0.79 -$694 1.31 $1,013
1978-1991 -438 76 478 $64 $85 0.72 -$977 0.67 -$1,063 1.01 $34 1992-2010 -336 57 357 $35 $53 0.45 -$1,917 0.51 -$1,587 0.76 -$789 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$6,156
2,085 116 751 $747 $631 2.79 $12,128 2.10 $6,791 1.87 $5,358 1978-1991 2,511 76 560 $759 $622 2.75 $11,864 2.19 $7,303 1.82 $5,048 1992-2010 2,727 57 468 $760 $613 2.71 $11,609 2.21 $7,458 1.79 $4,869

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$9,337
2,085 116 751 $747 $631 1.83 $8,556 1.39 $3,610 1.23 $2,177 1978-1991 2,511 76 560 $759 $622 1.80 $8,292 1.44 $4,122 1.20 $1,867 1992-2010 2,727 57 468 $760 $613 1.78 $8,037 1.46 $4,277 1.18 $1,688 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-994 130 982 -$60 $12 0.13 -$2,526 0.00 -$2,815 1.14 $353 1978-1991 -994 130 982 -$59 $12 0.13 -$2,518 0.00 -$2,815 1.14 $353 1992-2010 -994 130 982 -$46 $23 0.23 -$2,216 0.00 -$2,815 1.14 $353 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-808 130 1,057 -$5 $55 0.53 -$1,453 0.24 -$2,101 1.37 $1,032 1978-1991 -808 130 1,057 -$4 $54 0.53 -$1,458 0.24 -$2,101 1.37 $1,032 1992-2010 -808 130 1,057 $7 $63 0.61 -$1,202 0.24 -$2,101 1.37 $1,032 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$8,523
2,382 130 1,199 $888 $745 2.37 $12,913 1.69 $5,881 1.65 $5,500 1978-1991 2,382 130 1,199 $863 $725 2.31 $12,321 1.69 $5,855 1.64 $5,470 1992-2010 2,382 130 1,199 $796 $673 2.14 $10,755 1.68 $5,795 1.63 $5,407 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$11,704
2,382 130 1,199 $888 $745 1.72 $9,341 1.23 $2,700 1.20 $2,319 1978-1991 2,382 130 1,199 $863 $725 1.67 $8,749 1.23 $2,674 1.20 $2,289 1992-2010 2,382 130 1,199 $796 $673 1.55 $7,183 1.22 $2,614 1.19 $2,226 PV + Electric
Ready Pre-Wire
Pre-1978
$10,020
3,376 0 1,008 $915 $707 1.90 $10,070 1.44 $4,427 1.09 $895 1978-1991 3,376 0 1,036 $887 $686 1.85 $9,431 0.75 -$2,467 1.09 $863 1992-2010 3,376 0 1,036 $818 $632 1.70 $7,833 0.00 -$13,027 1.08 $796

1.233
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.14 Climate Zone 12 (PG&E):

Table 85: CZ 12 (PG&E) - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 200 11 142 $91 $75 2.70 $1,420 2.83 $1,367 2.60 $1,195 1978-1991 $745 105 6 71 $46 $38 1.37 $312 1.64 $474 1.39 $289 1992-2010 $625 34 2 29 $14 $12 0.51 -$345 0.68 -$202 0.59 -$257 Reduced
Infiltration
Pre-1978
$448
13 8 84 $18 $18 1.06 $29 1.39 $175 1.51 $229
1978-1991 6 6 59 $12 $12 0.69 -$158 1.03 $16 0.99 -$4
1992-2010 6 4 45 $9 $9 0.52 -$243 0.78 -$100 0.70 -$135 Duct Sealing
Pre-1978 $130 173 5 77 $72 $58 11.93 $1,596 16.58 $2,025 13.43 $1,616 1978-1991 $130 99 2 40 $40 $32 6.51 $805 9.32 $1,082 7.70 $871 New Ducts
Pre-1978
$1,353
380 11 182 $160 $129 2.54 $2,338 3.45 $3,320 2.96 $2,652 1978-1991 296 7 129 $118 $94 1.86 $1,299 2.71 $2,316 2.31 $1,774 1992-2010 86 2 46 $31 $25 0.50 -$761 0.87 -$172 0.76 -$327 Cool Roof
Pre-1978
$225
119 -1 7 $42 $32 3.92 $718 4.67 $827 3.42 $545
1978-1991 88 0 9 $31 $24 2.89 $463 3.86 $643 2.71 $386
1992-2010 42 0 6 $12 $9 1.14 $35 1.81 $183 1.29 $65
R-13 Wall
Insulation Pre-1978 $1,006 97 22 249 $73 $67 1.77 $869 2.64 $1,648 2.41 $1,414 Floor
Insulation Pre-1978 $822 -87 15 138 -$5 $3 0.11 -$819 0.44 -$459 0.65 -$288 Windows
Pre-1978
$5,873
684 20 321 $276 $222 1.01 $59 0.91 -$534 1.06 $354
1978-1991 565 16 273 $221 $178 0.81 -$1,245 0.74 -$1,506 0.88 -$681 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.29 $0.22 2.97 $4.45 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.09 $2.38 1.68 $28.96 n/a n/a n/a n/a

1.234
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 86: CZ 12 (PG&E) - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 212 20 225 $109 $93 2.08 $1,452 2.31 $1,566 2.22 $1,450 1978-1991 $1,193 111 11 129 $58 $50 1.12 $160 1.35 $418 1.26 $308 1992-2010 $1,073 40 6 72 $23 $21 0.52 -$582 0.69 -$336 0.70 -$318 R49 Attic & Duct
Sealing Package
Pre-1978 $875 360 16 214 $157 $128 3.92 $2,871 4.78 $3,305 4.18 $2,784 1978-1991 $875 197 7 107 $82 $67 2.04 $1,024 2.72 $1,503 2.31 $1,146 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 370 24 296 $173 $145 2.92 $2,858 3.58 $3,420 3.26 $2,983 1978-1991 $1,323 202 13 165 $93 $78 1.57 $852 2.07 $1,415 1.86 $1,138 1992-2010 $1,203 40 6 72 $23 $21 0.46 -$728 0.61 -$466 0.63 -$448 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 574 29 395 $256 $211 2.22 $3,478 2.88 $4,799 2.59 $4,052 1978-1991 $2,546 394 17 248 $168 $137 1.44 $1,265 2.02 $2,588 1.79 $1,999 1992-2010 $2,427 123 9 114 $53 $45 0.49 -$1,383 0.78 -$533 0.73 -$652 Advanced
Envelope
Package
Pre-1978 $8,201 908 69 858 $434 $367 1.20 $1,802 1.40 $3,257 1.43 $3,557 Water Heating
Package
All
Vintages $168 0 13 0 $41 $20 1.57 $108 n/a n/a n/a n/a

1.235
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 87: CZ 12 (PG&E) - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$5,289
3,097
0 190 $789 $610 3.14 $12,456 2.38 $7,307 1.88 $4,637
1978-1991 3,097 190 $768 $594 3.05 $11,975 2.38 $7,292 1.87 $4,619 1992-2010 3,097 190 $715 $552 2.84 $10,739 2.37 $7,255 1.87 $4,577 PV + Battery
Pre-1978
$7,563
3,041
0 295 $801 $619 2.25 $10,318 1.70 $5,271 1.38 $2,841
1978-1991 3,041 298 $781 $603 2.20 $9,858 1.70 $5,268 1.37 $2,834 1992-2010 3,041 318 $722 $558 2.03 $8,502 1.72 $5,412 1.38 $2,858

1.236
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 88: CZ 12 (PG&E) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-1,095 101 468 -$80 -$16 0.00 -$720 0.00 -$1,067 2.34 $305 1978-1991 -743 67 308 -$58 -$14 0.00 -$661 0.00 -$841 1.35 $80 1992-2010 -566 51 233 -$45 -$11 0.00 -$585 0.00 -$742 0.92 -$18 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-717 101 604 $25 $65 0.56 -$1,557 0.67 -$1,067 1.02 $66 1978-1991 -452 67 411 $25 $50 0.43 -$2,019 0.55 -$1,465 0.78 -$699 1992-2010 -362 51 310 $13 $33 0.28 -$2,517 0.40 -$1,940 0.57 -$1,386 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$5,516
2,003 101 658 $669 $563 2.78 $10,804 2.14 $6,271 1.90 $4,948 1978-1991 2,355 67 498 $690 $564 2.78 $10,844 2.17 $6,473 1.85 $4,701 1992-2010 2,532 51 422 $702 $566 2.79 $10,890 2.19 $6,542 1.83 $4,570

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$8,697
2,003 101 658 $669 $563 1.75 $7,232 1.36 $3,090 1.20 $1,767 1978-1991 2,355 67 498 $690 $564 1.75 $7,272 1.38 $3,292 1.17 $1,520 1992-2010 2,532 51 422 $702 $566 1.76 $7,318 1.39 $3,361 1.16 $1,389 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-1,010 134 1,030 -$60 $13 0.14 -$2,488 0.00 -$2,741 1.19 $493 1978-1991 -1,010 134 1,030 -$56 $16 0.17 -$2,404 0.00 -$2,741 1.19 $493 1992-2010 -1,010 134 1,030 -$37 $31 0.32 -$1,962 0.00 -$2,741 1.19 $493 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-822 134 1,110 -$3 $57 0.55 -$1,376 0.25 -$2,084 1.44 $1,229 1978-1991 -822 134 1,110 $0 $59 0.57 -$1,317 0.25 -$2,084 1.44 $1,229 1992-2010 -822 134 1,110 $15 $71 0.69 -$963 0.25 -$2,084 1.44 $1,229 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,883
2,087 134 1,220 $768 $653 2.24 $10,855 1.60 $4,750 1.67 $5,306 1978-1991 2,087 134 1,220 $746 $636 2.19 $10,350 1.60 $4,736 1.67 $5,288 1992-2010 2,087 134 1,220 $724 $619 2.13 $9,838 1.60 $4,703 1.67 $5,251 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$11,064
2,087 134 1,220 $768 $653 1.59 $7,283 1.14 $1,569 1.19 $2,125 1978-1991 2,087 134 1,220 $746 $636 1.55 $6,778 1.14 $1,555 1.19 $2,107 1992-2010 2,087 134 1,220 $724 $619 1.51 $6,266 1.14 $1,522 1.19 $2,070 PV + Electric
Ready Pre-Wire
Pre-1978
$9,380
3,097 0 1,068 $789 $610 1.75 $7,862 1.34 $3,216 1.06 $546 1978-1991 3,097 0 1,089 $768 $594 1.71 $7,381 0.77 -$2,172 1.06 $528 1992-2010 3,097 0 1,085 $715 $552 1.59 $6,145 0.00 -$10,311 1.05 $486

1.237
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.15 Climate Zone 12 (SMUD):

Table 89: CZ 12 (SMUD) - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 200 11 142 $54 $47 1.69 $577 2.83 $1,367 2.60 $1,195 1978-1991 $745 105 6 71 $28 $24 0.87 -$108 1.64 $474 1.39 $289 1992-2010 $625 34 2 29 $10 $9 0.37 -$441 0.68 -$202 0.59 -$257 Reduced
Infiltration
Pre-1978
$448
13 8 84 $16 $16 0.95 -$27 1.39 $175 1.51 $229
1978-1991 6 6 59 $10 $11 0.63 -$186 1.03 $16 0.99 -$4
1992-2010 6 4 45 $8 $8 0.48 -$261 0.78 -$100 0.70 -$135 Duct Sealing
Pre-1978 $130 173 5 77 $40 $33 6.88 $858 16.58 $2,025 13.43 $1,616 1978-1991 $130 99 2 40 $22 $18 3.74 $400 9.32 $1,082 7.70 $871 New Ducts
Pre-1978
$1,353
380 11 182 $90 $75 1.48 $735 3.45 $3,320 2.96 $2,652
1978-1991 296 7 129 $68 $56 1.10 $151 2.71 $2,316 2.31 $1,774 1992-2010 86 2 46 $21 $17 0.34 -$1,007 0.87 -$172 0.76 -$327 Cool Roof
Pre-1978
$225
119 -1 7 $20 $15 1.86 $211 4.67 $827 3.42 $545
1978-1991 88 0 9 $15 $12 1.43 $106 3.86 $643 2.71 $386
1992-2010 42 0 6 $7 $5 0.66 -$83 1.81 $183 1.29 $65
R-13 Wall
Insulation Pre-1978 $1,006 97 22 249 $56 $53 1.41 $467 2.64 $1,648 2.41 $1,414 Floor
Insulation Pre-1978 $822 -87 15 138 $11 $16 0.51 -$453 0.44 -$459 0.65 -$288 Windows
Pre-1978
$5,873
684 20 321 $160 $133 0.60 -$2,612 0.91 -$534 1.06 $354
1978-1991 565 16 273 $134 $111 0.50 -$3,274 0.74 -$1,506 0.88 -$681 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.26 $0.20 2.70 $3.83 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $1.53 $1.18 0.83 -$7.16 n/a n/a n/a n/a

1.238
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 90: CZ 12 (SMUD) - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 212 20 225 $70 $63 1.41 $554 2.31 $1,566 2.22 $1,450 1978-1991 $1,193 111 11 129 $39 $35 0.78 -$288 1.35 $418 1.26 $308 1992-2010 $1,073 40 6 72 $18 $17 0.42 -$694 0.69 -$336 0.70 -$318 R49 Attic & Duct
Sealing Package
Pre-1978 $875 360 16 214 $92 $78 2.39 $1,363 4.78 $3,305 4.18 $2,784 1978-1991 $875 197 7 107 $49 $41 1.26 $256 2.72 $1,503 2.31 $1,146 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 370 24 296 $107 $93 1.88 $1,310 3.58 $3,420 3.26 $2,983 1978-1991 $1,323 202 13 165 $59 $52 1.04 $62 2.07 $1,415 1.86 $1,138 1992-2010 $1,203 40 6 72 $18 $17 0.38 -$840 0.61 -$466 0.63 -$448 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 574 29 395 $155 $133 1.40 $1,135 2.88 $4,799 2.59 $4,052 1978-1991 $2,546 394 17 248 $103 $87 0.92 -$242 2.02 $2,588 1.79 $1,999 1992-2010 $2,427 123 9 114 $38 $33 0.37 -$1,729 0.78 -$533 0.73 -$652 Advanced
Envelope
Package
Pre-1978 $8,201 908 69 858 $284 $251 0.82 -$1,674 1.40 $3,257 1.43 $3,557 Water Heating
Package
All
Vintages $168 0 13 0 $37 $20 1.57 $108 n/a n/a n/a n/a

1.239
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 91: CZ 12 (SMUD) - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$5,289
3,097
0 190 $394 $304 1.56 $3,295 2.38 $7,307 1.88 $4,637
1978-1991 3,097 190 $394 $304 1.56 $3,295 2.38 $7,292 1.87 $4,619 1992-2010 3,097 190 $394 $304 1.56 $3,295 2.37 $7,255 1.87 $4,577 PV + Battery
Pre-1978
$7,563
3,041
0 295 $408 $315 1.15 $1,210 1.70 $5,271 1.38 $2,841
1978-1991 3,041 298 $409 $316 1.15 $1,227 1.70 $5,268 1.37 $2,834 1992-2010 3,041 318 $412 $318 1.16 $1,296 1.72 $5,412 1.38 $2,858

1.240
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 92: CZ 12 (SMUD) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-1,095 101 468 $51 $85 10.25 $2,309 0.00 -$1,067 2.34 $305 1978-1991 -743 67 308 $33 $57 6.81 $1,450 0.00 -$841 1.35 $80 1992-2010 -566 51 233 $25 $42 5.10 $1,024 0.00 -$742 0.92 -$18 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-717 101 604 $109 $130 1.11 $401 0.67 -$1,067 1.02 $66
1978-1991 -452 67 411 $80 $93 0.79 -$731 0.55 -$1,465 0.78 -$699 1992-2010 -362 51 310 $57 $68 0.58 -$1,486 0.40 -$1,940 0.57 -$1,386 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$5,516
2,003 101 658 $445 $390 1.92 $5,603 2.14 $6,271 1.90 $4,948 1978-1991 2,355 67 498 $427 $361 1.78 $4,745 2.17 $6,473 1.85 $4,701 1992-2010 2,532 51 422 $419 $347 1.71 $4,319 2.19 $6,542 1.83 $4,570

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$8,697
2,003 101 658 $445 $390 1.21 $2,031 1.36 $3,090 1.20 $1,767 1978-1991 2,355 67 498 $427 $361 1.12 $1,173 1.38 $3,292 1.17 $1,520 1992-2010 2,532 51 422 $419 $347 1.08 $747 1.39 $3,361 1.16 $1,389 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-1,010 134 1,030 $99 $136 1.41 $1,198 0.00 -$2,741 1.19 $493 1978-1991 -1,010 134 1,030 $99 $135 1.41 $1,173 0.00 -$2,741 1.19 $493 1992-2010 -1,010 134 1,030 $98 $135 1.40 $1,167 0.00 -$2,741 1.19 $493 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-822 134 1,110 $122 $154 1.49 $1,521 0.25 -$2,084 1.44 $1,229 1978-1991 -822 134 1,110 $121 $153 1.48 $1,496 0.25 -$2,084 1.44 $1,229 1992-2010 -822 134 1,110 $121 $153 1.48 $1,490 0.25 -$2,084 1.44 $1,229 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,883
2,087 134 1,220 $493 $441 1.51 $4,493 1.60 $4,750 1.67 $5,306 1978-1991 2,087 134 1,220 $492 $440 1.51 $4,468 1.60 $4,736 1.67 $5,288 1992-2010 2,087 134 1,220 $492 $440 1.51 $4,462 1.60 $4,703 1.67 $5,251 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$11,064
2,087 134 1,220 $493 $441 1.07 $921 1.14 $1,569 1.19 $2,125 1978-1991 2,087 134 1,220 $492 $440 1.07 $896 1.14 $1,555 1.19 $2,107 1992-2010 2,087 134 1,220 $492 $440 1.07 $890 1.14 $1,522 1.19 $2,070 PV + Electric
Ready Pre-Wire
Pre-1978
$9,380
3,097 0 1,068 $394 $304 0.88 -$1,299 1.34 $3,216 1.06 $546 1978-1991 3,097 0 1,089 $394 $304 0.88 -$1,299 0.77 -$2,172 1.06 $528 1992-2010 3,097 0 1,085 $394 $304 0.88 -$1,299 0.00 -$10,311 1.05 $486

1.241
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.16 Climate Zone 13:

Table 93: CZ 13 - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 310 8 119 $124 $100 3.57 $2,153 2.95 $1,453 3.10 $1,567 1978-1991 $745 166 4 60 $67 $53 1.91 $764 1.67 $497 1.69 $513 1992-2010 $625 55 2 23 $22 $17 0.74 -$180 0.83 -$108 0.75 -$157 Reduced
Infiltration
Pre-1978
$448
41 6 72 $26 $23 1.39 $194 1.79 $354 1.67 $300
1978-1991 28 5 49 $19 $17 0.99 -$3 1.18 $79 1.35 $159
1992-2010 19 4 39 $13 $12 0.69 -$154 1.00 $2 0.85 -$69
Duct Sealing
Pre-1978 $130 334 4 84 $131 $103 21.08 $2,932 19.38 $2,390 19.98 $2,468 1978-1991 $130 197 2 45 $77 $60 12.32 $1,653 11.83 $1,408 12.26 $1,464 New Ducts
Pre-1978
$1,353
718 9 190 $283 $223 4.40 $5,167 4.18 $4,304 4.33 $4,511 1978-1991 564 5 144 $222 $174 3.43 $3,691 3.41 $3,264 3.38 $3,215 1992-2010 176 2 53 $65 $51 1.01 $9 1.27 $372 1.11 $155
Cool Roof
Pre-1978
$225
180 -1 14 $64 $49 6.03 $1,235 4.53 $794 4.68 $828
1978-1991 137 -1 13 $50 $38 4.65 $897 3.86 $643 3.78 $625 1992-2010 66 0 5 $23 $17 2.10 $271 2.35 $305 2.17 $263
R-13 Wall
Insulation Pre-1978 $1,006 235 17 220 $117 $99 2.62 $1,831 3.26 $2,271 2.87 $1,879 Floor
Insulation Pre-1978 $822 -31 11 111 $10 $13 0.42 -$534 0.85 -$121 0.85 -$119 Windows
Pre-1978
$5,873 1,113 16 312 $436 $344 1.56 $3,716 1.04 $262 1.44 $2,558 1978-1991 913 13 266 $358 $282 1.28 $1,878 0.87 -$745 1.17 $988 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.29 $0.22 2.97 $4.45 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.09 $2.38 1.68 $28.96 n/a n/a n/a n/a

1.242
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 94: CZ 13 - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 353 15 189 $152 $124 2.78 $2,378 2.49 $1,777 2.69 $2,019 1978-1991 $1,193 194 9 114 $85 $70 1.57 $764 1.47 $564 1.49 $582 1992-2010 $1,073 73 5 62 $34 $29 0.72 -$343 0.87 -$137 0.81 -$205 R49 Attic & Duct
Sealing Package
Pre-1978 $875 630 11 202 $250 $198 6.06 $4,968 5.37 $3,819 5.59 $4,020 1978-1991 $875 354 6 106 $140 $111 3.38 $2,334 3.11 $1,842 3.12 $1,857 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 668 18 275 $275 $221 4.46 $5,136 4.13 $4,145 4.23 $4,272 1978-1991 $1,323 378 10 155 $157 $126 2.55 $2,301 2.47 $1,943 2.51 $1,996 1992-2010 $1,203 73 5 62 $34 $29 0.64 -$489 0.78 -$267 0.72 -$335 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 1,051 22 382 $427 $340 3.57 $7,351 3.43 $6,194 3.47 $6,301 1978-1991 $2,546 739 13 252 $299 $237 2.49 $4,264 2.51 $3,835 2.46 $3,711 1992-2010 $2,427 243 7 113 $96 $77 0.85 -$405 1.06 $143 0.97 -$77 Advanced
Envelope
Package
Pre-1978 $8,201 1,686 54 799 $715 $577 1.88 $8,112 1.68 $5,557 1.86 $7,029 Water Heating
Package
All
Vintages $168 0 13 0 $44 $20 1.61 $116 n/a n/a n/a n/a

1.243
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 95: CZ 13 - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$6,259
3,702
0 236 $1,024 $791 3.44 $16,826 2.30 $8,145 1.93 $5,848
1978-1991 3,702 236 $1,002 $775 3.37 $16,337 2.30 $8,109 1.93 $5,806 1992-2010 3,702 236 $907 $701 3.04 $14,118 2.28 $8,037 1.91 $5,719 PV + Battery
Pre-1978
$8,533
3,643
0 313 $1,029 $795 2.56 $14,547 1.71 $6,075 1.46 $3,953
1978-1991 3,643 316 $1,010 $780 2.51 $14,091 1.71 $6,045 1.46 $3,923 1992-2010 3,643 331 $919 $710 2.29 $11,991 1.71 $6,020 1.46 $3,895

1.244
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 96: CZ 13 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-859 77 339 -$45 $0 0.00 -$250 0.00 -$1,169 1.31 $70
1978-1991 -580 51 220 -$28 $2 0.20 -$201 0.00 -$924 0.60 -$90 1992-2010 -436 38 161 -$31 -$7 0.00 -$458 0.00 -$800 0.30 -$159 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-297 77 505 $137 $141 1.20 $715 0.90 -$327 1.26 $834
1978-1991 -125 51 352 $116 $113 0.96 -$131 0.75 -$802 1.01 $16 1992-2010 -98 38 267 $68 $70 0.59 -$1,425 0.58 -$1,350 0.76 -$787 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$6,485
2,843 77 575 $884 $718 3.01 $14,383 2.08 $6,990 1.91 $5,908 1978-1991 3,123 51 455 $880 $703 2.95 $13,941 2.11 $7,193 1.88 $5,705 1992-2010 3,266 38 397 $860 $682 2.86 $13,305 2.12 $7,261 1.86 $5,568

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$9,666
2,843 77 575 $884 $718 2.01 $10,811 1.39 $3,809 1.28 $2,727 1978-1991 3,123 51 455 $880 $703 1.97 $10,369 1.42 $4,012 1.26 $2,524 1992-2010 3,266 38 397 $860 $682 1.91 $9,733 1.42 $4,080 1.25 $2,387 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-901 127 986 -$40 $25 0.26 -$2,130 0.00 -$2,675 1.25 $645 1978-1991 -901 127 986 -$39 $26 0.27 -$2,104 0.00 -$2,675 1.25 $645 1992-2010 -901 127 986 -$34 $30 0.31 -$1,992 0.00 -$2,675 1.25 $645 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-728 127 1,061 $10 $64 0.62 -$1,161 0.28 -$1,992 1.45 $1,241 1978-1991 -728 127 1,061 $11 $65 0.63 -$1,137 0.28 -$1,992 1.45 $1,241 1992-2010 -728 127 1,061 $16 $68 0.66 -$1,036 0.28 -$1,992 1.45 $1,241 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$8,852
2,801 127 1,221 $1,009 $836 2.56 $15,288 1.64 $5,646 1.75 $6,656 1978-1991 2,801 127 1,221 $991 $822 2.52 $14,870 1.63 $5,613 1.75 $6,617 1992-2010 2,801 127 1,221 $901 $753 2.31 $12,784 1.63 $5,545 1.74 $6,534 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$12,033
2,801 127 1,221 $1,009 $836 1.88 $11,717 1.20 $2,465 1.29 $3,475 1978-1991 2,801 127 1,221 $991 $822 1.85 $11,298 1.20 $2,432 1.29 $3,436 1992-2010 2,801 127 1,221 $901 $753 1.69 $9,212 1.20 $2,364 1.28 $3,353 PV + Electric
Ready Pre-Wire
Pre-1978
$10,350
3,702 0 1,060 $1,024 $791 2.06 $12,232 1.39 $4,054 1.17 $1,757 1978-1991 3,702 0 1,078 $1,002 $775 2.02 $11,743 0.77 -$2,341 1.17 $1,715 1992-2010 3,702 0 1,071 $907 $701 1.83 $9,524 0.00 -$12,863 1.16 $1,628

1.245
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.17 Climate Zone 14 (SCE/SoCalGas):

Table 97: CZ 14 (SCE/SoCalGas) - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 211 13 154 $82 $67 2.40 $1,173 2.84 $1,373 2.92 $1,427 1978-1991 $745 111 6 71 $41 $34 1.21 $171 1.56 $414 1.54 $399 1992-2010 $625 36 2 27 $13 $11 0.48 -$368 0.70 -$187 0.70 -$187 Reduced
Infiltration
Pre-1978
$448
40 10 109 $25 $23 1.35 $176 2.19 $535 1.98 $440
1978-1991 24 7 69 $16 $14 0.85 -$73 1.53 $235 1.46 $207 1992-2010 14 5 51 $10 $9 0.55 -$226 0.96 -$19 0.98 -$10 Duct Sealing
Pre-1978 $130 241 6 88 $86 $68 13.94 $1,889 18.61 $2,289 17.02 $2,082 1978-1991 $130 138 2 41 $48 $37 7.60 $964 11.32 $1,342 9.54 $1,110 New Ducts
Pre-1978
$1,353
523 13 196 $186 $147 2.89 $2,878 3.95 $3,996 3.63 $3,553 1978-1991 404 7 128 $141 $110 2.18 $1,787 3.13 $2,882 2.78 $2,409 1992-2010 121 3 47 $39 $31 0.61 -$598 1.02 $28 0.92 -$103 Cool Roof
Pre-1978
$225
124 -1 -3 $39 $29 3.55 $626 3.76 $622 3.62 $589
1978-1991 92 -1 -1 $28 $21 2.57 $385 3.28 $512 2.92 $431 1992-2010 43 -1 -1 $12 $9 1.12 $29 1.72 $162 1.54 $123
R-13 Wall
Insulation Pre-1978 $1,006 166 26 293 $89 $77 2.04 $1,179 3.12 $2,131 2.87 $1,884 Floor
Insulation Pre-1978 $822 -11 21 215 $20 $22 0.73 -$251 1.58 $475 1.48 $395 Windows
Pre-1978
$5,873
855 15 277 $293 $229 1.04 $272 0.99 -$36 1.10 $563
1978-1991 701 11 211 $234 $182 0.83 -$1,120 0.81 -$1,110 0.90 -$572 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.28 $0.22 2.86 $4.19 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $2.34 $1.78 1.25 $10.76 n/a n/a n/a n/a

1.246
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 98: CZ 14 (SCE/SoCalGas) - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 252 24 264 $107 $90 2.01 $1,357 2.59 $1,900 2.60 $1,905 1978-1991 $1,193 134 13 138 $57 $48 1.08 $102 1.54 $648 1.54 $642 1992-2010 $1,073 50 7 79 $23 $20 0.51 -$592 0.85 -$166 0.80 -$214 R49 Attic & Duct
Sealing Package
Pre-1978 $875 440 18 233 $162 $130 3.96 $2,912 5.12 $3,609 4.91 $3,421 1978-1991 $875 241 8 108 $86 $69 2.10 $1,079 2.92 $1,684 2.68 $1,469 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 474 28 338 $184 $150 3.04 $3,027 4.15 $4,174 3.87 $3,797 1978-1991 $1,323 261 15 178 $101 $82 1.66 $978 2.45 $1,916 2.21 $1,595 1992-2010 $1,203 50 7 79 $23 $20 0.45 -$738 0.75 -$296 0.71 -$344 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 756 34 439 $285 $229 2.40 $4,014 3.29 $5,839 3.08 $5,307 1978-1991 $2,546 524 19 255 $192 $153 1.61 $1,737 2.32 $3,367 2.15 $2,926 1992-2010 $2,427 165 10 122 $60 $49 0.54 -$1,257 0.92 -$196 0.85 -$363 Advanced
Envelope
Package
Pre-1978 $8,201 1,228 76 932 $485 $396 1.29 $2,678 1.63 $5,164 1.64 $5,238 Water Heating
Package
All
Vintages $168 0 13 0 $34 $16 1.24 $45 n/a n/a n/a n/a

1.247
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 99: CZ 14 (SCE/SoCalGas) - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$5,210
3,593
0 289 $756 $575 3.00 $11,516 2.64 $8,561 2.32 $6,889
1978-1991 3,593 289 $736 $560 2.92 $11,058 2.64 $8,530 2.32 $6,854 1992-2010 3,593 289 $690 $526 2.74 $10,019 2.63 $8,471 2.30 $6,787 PV + Battery
Pre-1978
$7,485
3,530
0 392 $802 $611 2.25 $10,171 1.90 $6,746 1.69 $5,147
1978-1991 3,530 393 $785 $598 2.20 $9,785 1.91 $6,815 1.70 $5,265 1992-2010 3,530 406 $746 $568 2.09 $8,878 1.96 $7,223 1.72 $5,405

1.248
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 100: CZ 14 (SCE/SoCalGas) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-1,361 105 359 -$166 -$89 0.00 -$2,921 0.00 -$1,920 0.00 -$696 1978-1991 -872 66 211 -$107 -$57 0.00 -$1,972 0.00 -$1,405 0.00 -$594 1992-2010 -685 52 166 -$83 -$45 0.00 -$1,600 0.00 -$1,158 0.00 -$574 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-858 105 527 -$24 $19 0.17 -$2,933 0.60 -$1,284 0.87 -$411 1978-1991 -485 66 339 $1 $25 0.21 -$2,776 0.53 -$1,522 0.68 -$1,036 1992-2010 -396 52 267 -$7 $13 0.11 -$3,128 0.41 -$1,907 0.51 -$1,584 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$5,437
2,232 105 648 $546 $454 2.27 $7,609 2.23 $6,686 2.14 $6,196 1978-1991 2,721 66 500 $593 $475 2.38 $8,260 2.32 $7,154 2.15 $6,260 1992-2010 2,909 52 455 $606 $480 2.40 $8,403 2.35 $7,356 2.14 $6,224

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$8,618
2,232 105 648 $546 $454 1.42 $4,037 1.41 $3,505 1.35 $3,015 1978-1991 2,721 66 500 $593 $475 1.49 $4,688 1.46 $3,973 1.36 $3,079 1992-2010 2,909 52 455 $606 $480 1.50 $4,831 1.48 $4,175 1.35 $3,043 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-1,037 131 963 -$97 -$28 0.00 -$3,731 0.00 -$2,896 1.10 $249 1978-1991 -1,037 131 963 -$89 -$22 0.00 -$3,550 0.00 -$2,896 1.10 $249 1992-2010 -1,037 131 963 -$76 -$12 0.00 -$3,252 0.00 -$2,896 1.10 $249 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-849 131 1,034 -$43 $13 0.13 -$2,690 0.17 -$2,307 1.32 $892 1978-1991 -849 131 1,034 -$36 $19 0.18 -$2,522 0.17 -$2,307 1.32 $892 1992-2010 -849 131 1,034 -$26 $26 0.25 -$2,306 0.17 -$2,307 1.32 $892 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,804
2,556 131 1,252 $689 $570 1.98 $8,473 1.75 $5,879 1.94 $7,334 1978-1991 2,556 131 1,252 $673 $559 1.94 $8,124 1.75 $5,851 1.94 $7,302 1992-2010 2,556 131 1,252 $629 $525 1.82 $7,109 1.74 $5,797 1.93 $7,238 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$10,985
2,556 131 1,252 $689 $570 1.40 $4,901 1.25 $2,698 1.38 $4,153 1978-1991 2,556 131 1,252 $673 $559 1.37 $4,552 1.24 $2,670 1.38 $4,121 1992-2010 2,556 131 1,252 $629 $525 1.29 $3,537 1.24 $2,616 1.37 $4,057 PV + Electric
Ready Pre-Wire
Pre-1978
$9,301
3,593 0 1,022 $756 $575 1.67 $6,922 1.48 $4,470 1.30 $2,798 1978-1991 3,593 0 1,049 $736 $560 1.63 $6,464 0.79 -$1,996 1.30 $2,763 1992-2010 3,593 0 1,046 $690 $526 1.52 $5,425 0.00 -$11,567 1.29 $2,696

1.249
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.18 Climate Zone 14 (SDG&E):

Table 101: CZ 14 (SDG&E) - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 211 13 154 $115 $102 3.64 $2,210 2.84 $1,373 2.92 $1,427 1978-1991 $745 111 6 71 $58 $51 1.83 $692 1.56 $414 1.54 $399 1992-2010 $625 36 2 27 $20 $17 0.75 -$179 0.70 -$187 0.70 -$187 Reduced
Infiltration
Pre-1978
$448
40 10 109 $37 $35 2.09 $550 2.19 $535 1.98 $440
1978-1991 24 7 69 $23 $22 1.29 $144 1.53 $235 1.46 $207 1992-2010 14 5 51 $14 $14 0.83 -$88 0.96 -$19 0.98 -$10 Duct Sealing
Pre-1978 $130 241 6 88 $124 $105 21.64 $3,012 18.61 $2,289 17.02 $2,082 1978-1991 $130 138 2 41 $68 $58 11.84 $1,582 11.32 $1,342 9.54 $1,110 New Ducts
Pre-1978
$1,353
523 13 196 $269 $230 4.53 $5,366 3.95 $3,996 3.63 $3,553 1978-1991 404 7 128 $203 $172 3.40 $3,640 3.13 $2,882 2.78 $2,409 1992-2010 121 3 47 $60 $51 1.01 $13 1.02 $28 0.92 -$103 Cool Roof
Pre-1978
$225
124 -1 -3 $53 $43 5.28 $1,052 3.76 $622 3.62 $589
1978-1991 92 -1 -1 $39 $32 3.96 $727 3.28 $512 2.92 $431 1992-2010 43 -1 -1 $18 $15 1.80 $197 1.72 $162 1.54 $123 R-13 Wall
Insulation Pre-1978 $1,006 166 26 293 $130 $119 3.15 $2,429 3.12 $2,131 2.87 $1,884 Floor
Insulation Pre-1978 $822 -11 21 215 $34 $37 1.22 $199 1.58 $475 1.48 $395 Windows
Pre-1978
$5,873
855 15 277 $422 $358 1.63 $4,134 0.99 -$36 1.10 $563
1978-1991 701 11 211 $340 $287 1.31 $2,022 0.81 -$1,110 0.90 -$572 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.41 $0.34 4.49 $7.87 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.39 $2.82 1.99 $42.01 n/a n/a n/a n/a

1.250
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 102: CZ 14 (SDG&E) - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 252 24 264 $152 $137 3.06 $2,757 2.59 $1,900 2.60 $1,905 1978-1991 $1,193 134 13 138 $81 $73 1.63 $843 1.54 $648 1.54 $642 1992-2010 $1,073 50 7 79 $34 $31 0.78 -$263 0.85 -$166 0.80 -$214 R49 Attic & Duct
Sealing Package
Pre-1978 $875 440 18 233 $233 $201 6.15 $5,062 5.12 $3,609 4.91 $3,421 1978-1991 $875 241 8 108 $123 $106 3.23 $2,192 2.92 $1,684 2.68 $1,469 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 474 28 338 $266 $232 4.70 $5,489 4.15 $4,174 3.87 $3,797 1978-1991 $1,323 261 15 178 $144 $126 2.54 $2,294 2.45 $1,916 2.21 $1,595 1992-2010 $1,203 50 7 79 $34 $31 0.70 -$409 0.75 -$296 0.71 -$344 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 756 34 439 $410 $355 3.73 $7,801 3.29 $5,839 3.08 $5,307 1978-1991 $2,546 524 19 255 $279 $240 2.52 $4,337 2.32 $3,367 2.15 $2,926 1992-2010 $2,427 165 10 122 $92 $80 0.88 -$322 0.92 -$196 0.85 -$363 Advanced
Envelope
Package
Pre-1978 $8,201 1,228 76 932 $704 $616 2.01 $9,280 1.63 $5,164 1.64 $5,238 Water Heating
Package
All
Vintages $168 0 13 0 $44 $20 1.61 $114 n/a n/a n/a n/a

1.251
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 103: CZ 14 (SDG&E) - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$5,210
3,593
0 289 $1,356 $1,128 5.89 $28,082 2.64 $8,561 2.32 $6,889 1978-1991 3,593 289 $1,382 $1,149 6.00 $28,737 2.64 $8,530 2.32 $6,854 1992-2010 3,593 289 $1,260 $1,048 5.47 $25,687 2.63 $8,471 2.30 $6,787 PV + Battery
Pre-1978
$7,485
3,530
0 392 $1,377 $1,146 4.21 $26,207 1.90 $6,746 1.69 $5,147 1978-1991 3,530 393 $1,407 $1,170 4.30 $26,956 1.91 $6,815 1.70 $5,265 1992-2010 3,530 406 $1,260 $1,048 3.85 $23,276 1.96 $7,223 1.72 $5,405

1.252
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 104: CZ 14 (SDG&E) - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-1,361 105 359 -$232 -$151 0.00 -$4,770 0.00 -$1,920 0.00 -$696 1978-1991 -872 66 211 -$147 -$96 0.00 -$3,142 0.00 -$1,405 0.00 -$594 1992-2010 -685 52 166 -$126 -$84 0.00 -$2,770 0.00 -$1,158 0.00 -$574 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-858 105 527 -$28 $18 0.16 -$2,959 0.60 -$1,284 0.87 -$411 1978-1991 -485 66 339 $5 $31 0.26 -$2,592 0.53 -$1,522 0.68 -$1,036 1992-2010 -396 52 267 -$12 $11 0.09 -$3,192 0.41 -$1,907 0.51 -$1,584 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$5,437
2,232 105 648 $1,104 $961 4.81 $22,822 2.23 $6,686 2.14 $6,196 1978-1991 2,721 66 500 $1,183 $1,011 5.06 $24,320 2.32 $7,154 2.15 $6,260 1992-2010 2,909 52 455 $1,258 $1,067 5.34 $26,004 2.35 $7,356 2.14 $6,224

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$8,618
2,232 105 648 $1,104 $961 3.01 $19,250 1.41 $3,505 1.35 $3,015 1978-1991 2,721 66 500 $1,183 $1,011 3.17 $20,748 1.46 $3,973 1.36 $3,079 1992-2010 2,909 52 455 $1,258 $1,067 3.34 $22,432 1.48 $4,175 1.35 $3,043 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-1,037 131 963 -$106 -$37 0.00 -$3,987 0.00 -$2,896 1.10 $249 1978-1991 -1,037 131 963 -$107 -$38 0.00 -$4,021 0.00 -$2,896 1.10 $249 1992-2010 -1,037 131 963 -$99 -$31 0.00 -$3,825 0.00 -$2,896 1.10 $249 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-849 131 1,034 -$42 $17 0.16 -$2,591 0.17 -$2,307 1.32 $892 1978-1991 -849 131 1,034 -$43 $15 0.15 -$2,625 0.17 -$2,307 1.32 $892 1992-2010 -849 131 1,034 -$37 $21 0.20 -$2,461 0.17 -$2,307 1.32 $892 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,804
2,556 131 1,252 $1,116 $980 3.40 $20,758 1.75 $5,879 1.94 $7,334 1978-1991 2,556 131 1,252 $1,098 $965 3.35 $20,307 1.75 $5,851 1.94 $7,302 1992-2010 2,556 131 1,252 $1,135 $995 3.46 $21,221 1.74 $5,797 1.93 $7,238 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$10,985
2,556 131 1,252 $1,116 $980 2.41 $17,186 1.25 $2,698 1.38 $4,153 1978-1991 2,556 131 1,252 $1,098 $965 2.37 $16,735 1.24 $2,670 1.38 $4,121 1992-2010 2,556 131 1,252 $1,135 $995 2.45 $17,649 1.24 $2,616 1.37 $4,057 PV + Electric
Ready Pre-Wire
Pre-1978
$9,301
3,593 0 1,022 $1,356 $1,128 3.27 $23,488 1.48 $4,470 1.30 $2,798 1978-1991 3,593 0 1,049 $1,382 $1,149 3.33 $24,144 0.79 -$1,996 1.30 $2,763 1992-2010 3,593 0 1,046 $1,260 $1,048 3.04 $21,093 0.00 -$11,567 1.29 $2,696

1.253
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.19 Climate Zone 15:

Table 105: CZ 15 - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 410 2 60 $127 $97 3.49 $2,086 3.30 $1,713 3.13 $1,586 1978-1991 $745 224 1 30 $60 $46 1.64 $536 1.80 $596 1.61 $455 1992-2010 $625 75 0 8 $21 $16 0.68 -$226 0.76 -$150 0.75 -$156 Reduced
Infiltration
Pre-1978
$448
101 1 27 $33 $25 1.50 $254 2.06 $475 1.54 $241
1978-1991 70 1 18 $18 $14 0.83 -$86 1.35 $159 0.96 -$18 1992-2010 40 0 10 $10 $8 0.48 -$261 0.76 -$109 0.56 -$195 Duct Sealing
Pre-1978 $130 572 1 66 $181 $138 28.35 $3,992 29.07 $3,649 26.17 $3,272 1978-1991 $130 338 0 41 $94 $71 14.65 $1,993 17.62 $2,161 16.04 $1,955 New Ducts
Pre-1978
$1,353
1,179 2 144 $367 $280 5.53 $6,880 5.81 $6,505 5.35 $5,889 1978-1991 921 1 121 $257 $196 3.87 $4,361 4.66 $4,952 4.27 $4,420 1992-2010 294 0 46 $84 $64 1.27 $403 1.64 $873 1.47 $632 Cool Roof
Pre-1978
$225
246 0 15 $76 $58 7.03 $1,480 5.88 $1,098 5.86 $1,095
1978-1991 190 0 19 $52 $39 4.81 $935 4.76 $847 4.45 $776 1992-2010 93 0 12 $26 $20 2.40 $344 2.53 $345 2.35 $305 R-13 Wall
Insulation Pre-1978 $1,006 452 4 101 $148 $114 3.03 $2,288 4.20 $3,214 3.10 $2,117 Floor
Insulation Pre-1978 $822 159 1 58 $49 $38 1.22 $207 1.92 $757 1.35 $286 Windows
Pre-1978
$5,873 1,869 2 229 $557 $425 1.93 $6,142 1.57 $3,321 1.81 $4,773 1978-1991 1,521 2 184 $421 $321 1.46 $3,051 1.25 $1,442 1.47 $2,785 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.29 $0.22 2.97 $4.45 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.09 $2.38 1.68 $28.96 n/a n/a n/a n/a

1.254
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 106: CZ 15 - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 512 4 85 $159 $123 2.75 $2,341 2.79 $2,138 2.55 $1,850 1978-1991 $1,193 291 1 39 $76 $59 1.31 $417 1.56 $663 1.44 $523 1992-2010 $1,073 115 1 17 $31 $24 0.59 -$489 0.77 -$245 0.67 -$352 R49 Attic & Duct
Sealing Package
Pre-1978 $875 969 3 132 $300 $230 7.01 $5,903 7.08 $5,320 6.50 $4,808 1978-1991 $875 550 1 72 $151 $115 3.51 $2,466 4.07 $2,686 3.68 $2,349 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 1,063 4 157 $330 $252 5.10 $6,084 5.35 $5,751 4.83 $5,062 1978-1991 $1,323 608 1 79 $165 $126 2.55 $2,302 3.08 $2,748 2.82 $2,404 1992-2010 $1,203 115 1 17 $31 $24 0.53 -$634 0.69 -$375 0.60 -$482 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 1,679 4 239 $505 $386 4.05 $8,720 4.47 $8,829 4.09 $7,872 1978-1991 $2,546 1,185 2 158 $328 $251 2.63 $4,661 3.22 $5,645 2.95 $4,960 1992-2010 $2,427 399 1 62 $113 $86 0.95 -$139 1.26 $623 1.11 $266 Advanced
Envelope
Package
Pre-1978 $8,201 2,873 9 415 $831 $636 2.07 $9,875 2.24 $10,152 2.15 $9,410 Water Heating
Package
All
Vintages $168 0 13 0 $36 $16 1.25 $47 n/a n/a n/a n/a

1.255
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 107: CZ 15 - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$7,734
4,911
0 404 $1,086 $827 2.91 $16,277 2.42 $10,967 2.14 $8,801 1978-1991 4,911 404 $1,034 $787 2.77 $15,092 2.41 $10,885 2.13 $8,702 1992-2010 4,911 404 $982 $748 2.63 $13,897 2.39 $10,730 2.10 $8,512 PV + Battery
Pre-1978
$10,009
4,848
0 447 $1,120 $853 2.34 $14,636 1.89 $8,957 1.68 $6,842
1978-1991 4,848 449 $1,070 $815 2.23 $13,500 1.89 $8,894 1.67 $6,751 1992-2010 4,848 467 $1,030 $784 2.15 $12,586 1.89 $8,886 1.67 $6,731

1.256
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 108: CZ 15 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-104 10 43 -$55 -$39 0.00 -$1,410 0.00 -$299 0.19 -$185 1978-1991 -49 5 20 -$15 -$10 0.00 -$544 0.00 -$269 0.11 -$203 1992-2010 -32 3 14 $14 $12 1.41 $103 0.00 -$254 0.09 -$206 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
677 10 206 $199 $155 1.32 $1,141 1.57 $1,850 1.48 $1,567 1978-1991 616 5 164 $196 $151 1.29 $1,010 1.33 $1,071 1.26 $856 1992-2010 485 3 139 $167 $128 1.09 $332 1.09 $293 1.00 -$3 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$7,961
4,807 10 446 $999 $764 2.61 $14,138 2.33 $10,594 2.07 $8,535 1978-1991 4,862 5 424 $991 $756 2.58 $13,898 2.33 $10,553 2.06 $8,436 1992-2010 4,880 3 418 $971 $740 2.53 $13,429 2.31 $10,463 2.04 $8,291

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$11,142
4,807 10 446 $999 $764 1.86 $10,566 1.67 $7,413 1.48 $5,354 1978-1991 4,862 5 424 $991 $756 1.84 $10,326 1.66 $7,372 1.47 $5,255 1992-2010 4,880 3 418 $971 $740 1.80 $9,857 1.65 $7,282 1.46 $5,110 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-539 109 923 -$8 $32 0.34 -$1,922 0.54 -$1,188 1.50 $1,307 1978-1991 -539 109 923 -$3 $36 0.37 -$1,811 0.54 -$1,188 1.50 $1,307 1992-2010 -539 109 923 $1 $39 0.40 -$1,722 0.54 -$1,188 1.50 $1,307 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-457 109 963 $17 $52 0.50 -$1,534 0.63 -$1,015 1.56 $1,563 1978-1991 -457 109 963 $22 $55 0.53 -$1,442 0.63 -$1,015 1.56 $1,563 1992-2010 -457 109 963 $24 $57 0.55 -$1,384 0.63 -$1,015 1.56 $1,563 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$10,328
4,372 109 1,327 $1,100 $876 2.30 $14,866 1.96 $9,911 1.99 $10,221 1978-1991 4,372 109 1,327 $1,048 $837 2.20 $13,683 1.95 $9,831 1.98 $10,123 1992-2010 4,372 109 1,327 $1,002 $801 2.10 $12,619 1.94 $9,681 1.96 $9,938 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$13,509
4,372 109 1,327 $1,100 $876 1.75 $11,294 1.50 $6,730 1.52 $7,040 1978-1991 4,372 109 1,327 $1,048 $837 1.67 $10,112 1.49 $6,650 1.51 $6,942 1992-2010 4,372 109 1,327 $1,002 $801 1.60 $9,047 1.48 $6,500 1.50 $6,757 PV + Electric
Ready Pre-Wire
Pre-1978
$11,825
4,911 0 1,047 $1,086 $827 1.89 $11,683 1.58 $6,876 1.40 $4,710 1978-1991 4,911 0 1,067 $1,034 $787 1.80 $10,499 0.86 -$1,685 1.39 $4,611 1992-2010 4,911 0 1,062 $982 $748 1.71 $9,303 0.00 -$17,301 1.37 $4,421

1.257
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07

6.4.20 Climate Zone 16:

Table 109: CZ 16 - Multifamily Efficiency Upgrade Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C
Ratio NPV
R-49 Attic
Insulation
Pre-1978 $745 111 25 268 $84 $77 2.77 $1,484 2.18 $882 2.62 $1,204 1978-1991 $745 56 12 131 $40 $37 1.31 $259 1.10 $72 1.28 $209 1992-2010 $625 18 5 50 $13 $13 0.54 -$326 0.49 -$317 0.57 -$269 Reduced
Infiltration
Pre-1978
$448
7 15 155 $30 $31 1.85 $426 1.37 $166 2.14 $509
1978-1991 4 11 107 $19 $20 1.17 $83 1.09 $38 1.46 $207
1992-2010 3 9 87 $15 $16 0.94 -$31 0.89 -$48 1.19 $86
Duct Sealing
Pre-1978 $130 71 14 154 $51 $47 9.62 $1,258 7.63 $862 8.82 $1,017 1978-1991 $130 39 6 72 $25 $22 4.51 $512 3.80 $364 4.24 $421 New Ducts
Pre-1978
$1,353
173 31 343 $118 $106 2.10 $1,675 1.70 $948 1.92 $1,246
1978-1991 136 20 228 $81 $72 1.41 $630 1.24 $323 1.32 $433 1992-2010 39 7 82 $24 $22 0.44 -$854 0.43 -$768 0.45 -$738 Cool Roof
Pre-1978
$225
57 -2 -12 $17 $12 1.46 $112 0.90 -$23 0.43 -$129
1978-1991 42 -2 -8 $12 $9 1.08 $20 0.76 -$54 0.30 -$157 1992-2010 19 -1 -7 $4 $3 0.35 -$161 0.33 -$151 0.06 -$212 R-13 Wall
Insulation Pre-1978 $1,006 49 52 537 $109 $111 2.94 $2,188 2.62 $1,628 3.36 $2,375 Floor
Insulation Pre-1978 $822 -48 44 427 $59 $68 2.21 $1,116 1.73 $603 2.94 $1,594 Windows
Pre-1978
$5,873
234 69 739 $202 $190 0.86 -$905 0.51 -$2,877 0.88 -$677 1978-1991 265 41 472 $159 $142 0.64 -$2,344 0.40 -$3,494 0.63 -$2,190 LED lamp vs
CFL All $2.26 1.2 0 n/a $0.29 $0.22 2.97 $4.45 n/a n/a n/a n/a Exterior
Photosensor All $42.58 12.1 0 n/a $3.09 $2.38 1.68 $28.96 n/a n/a n/a n/a

1.258
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 110: CZ 16 - Multifamily Efficiency Packages Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
R49 Attic & Air
Sealing Package
Pre-1978 $1,193 118 40 422 $112 $107 2.39 $1,866 1.90 $1,069 2.43 $1,707 1978-1991 $1,193 60 23 239 $59 $56 1.26 $351 1.08 $98 1.36 $428 1992-2010 $1,073 21 13 137 $29 $28 0.71 -$352 0.66 -$360 0.83 -$178 R49 Attic & Duct
Sealing Package
Pre-1978 $875 175 37 403 $128 $117 3.58 $2,531 2.89 $1,654 3.38 $2,086 1978-1991 $875 91 18 196 $62 $56 1.71 $700 1.46 $401 1.66 $579 R49 Attic, Air
Sealing & Duct
Sealing Package
Pre-1978 $1,323 179 52 552 $155 $145 2.94 $2,875 2.34 $1,779 2.92 $2,545 1978-1991 $1,323 95 29 304 $80 $76 1.53 $783 1.32 $423 1.60 $793 1992-2010 $1,203 21 13 137 $29 $28 0.63 -$498 0.59 -$490 0.74 -$308 R49 Attic, Air
Sealing & New
Ducts Package
Pre-1978 $2,546 279 67 729 $215 $199 2.09 $3,118 1.72 $1,844 2.06 $2,693 1978-1991 $2,546 188 41 449 $133 $122 1.28 $810 1.13 $338 1.29 $732 1992-2010 $2,427 59 20 215 $52 $49 0.54 -$1,242 0.53 -$1,143 0.61 -$947 Advanced
Envelope
Package
Pre-1978 $8,201 435 165 1,741 $428 $410 1.33 $3,081 1.02 $202 1.45 $3,653 Water Heating
Package
All
Vintages $168 0 12 0 $35 $18 1.40 $76 n/a n/a n/a n/a

1.259
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 111: CZ 16 - Multifamily PV & Battery Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings
(lb CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Prescriptive
PV System
Pre-1978
$4,742
2,911
0 205 $717 $554 3.18 $11,388 2.38 $6,553 1.99 $4,677
1978-1991 2,911 205 $696 $538 3.09 $10,914 2.38 $6,538 1.98 $4,662 1992-2010 2,911 205 $633 $489 2.81 $9,450 2.37 $6,510 1.98 $4,635 PV + Battery
Pre-1978
$7,016
2,855
0 333 $729 $564 2.21 $9,270 1.74 $5,196 1.51 $3,556
1978-1991 2,855 336 $703 $543 2.13 $8,647 1.75 $5,234 1.51 $3,574 1992-2010 2,855 352 $640 $495 1.94 $7,207 1.76 $5,357 1.52 $3,628

1.260
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Table 112: CZ 16 - Multifamily Equipment Fuel Substitution Cost-Effectiveness Results Measure Vintage Measure
Cost ($)
Electricity
Savings
(kWh)
Gas
Savings
(therm)
GHG
Savings (lb
CO2e)
Utility Cost Savings Customer On-Bill 2019 TDV 2022 TDV Year 1 Avg
Annual B/C Ratio NPV B/C Ratio NPV B/C Ratio NPV
Heat Pump at
HVAC
Replacement
Pre-1978
$227
-3,740 303 1,517 -$394 -$163 0.00 -$5,139 0.00 -$8,687 0.00 -$4,424 1978-1991 -2,835 228 1,131 -$278 -$109 0.00 -$3,524 0.00 -$6,679 0.00 -$3,466 1992-2010 -1,865 148 722 -$184 -$74 0.00 -$2,480 0.00 -$4,712 0.00 -$2,420 High-Effic. Heat
Pump at HVAC
Replacement
Pre-1978
$3,245
-3,101 303 1,759 -$213 -$23 0.00 -$4,217 0.00 -$8,144 0.00 -$3,742 1978-1991 -2,331 228 1,323 -$145 -$6 0.00 -$3,708 0.00 -$6,931 0.00 -$3,543 1992-2010 -1,543 148 845 -$103 -$11 0.00 -$3,858 0.00 -$5,732 0.00 -$3,567 Heat Pump at
HVAC
Replacement +
PV
Pre-1978
$4,968
-828 303 1,722 $348 $410 2.25 $6,827 0.60 -$1,984 1.07 $333 1978-1991 77 228 1,336 $436 $442 2.42 $7,787 1.00 -$8 1.25 $1,264 1992-2010 1,047 148 926 $521 $470 2.57 $8,622 1.38 $1,907 1.46 $2,277

HVAC HP
Replacement,
PV, + Panel
Upgrade
Pre-1978
$8,149
-828 303 1,722 $348 $410 1.36 $3,255 0.37 -$5,165 0.65 -$2,848 1978-1991 77 228 1,336 $436 $442 1.47 $4,216 0.61 -$3,189 0.76 -$1,917 1992-2010 1,047 148 926 $521 $470 1.56 $5,050 0.84 -$1,274 0.89 -$904 HPWH at Water
Heater
Replacement
Pre-1978
$2,594
-1,745 149 998 -$233 -$112 0.00 -$6,246 0.00 -$6,850 0.00 -$2,663 1978-1991 -1,745 149 998 -$234 -$115 0.00 -$6,335 0.00 -$6,850 0.00 -$2,663 1992-2010 -1,745 149 998 -$220 -$104 0.00 -$6,011 0.00 -$6,850 0.00 -$2,663 NEEA Tier 3
HPWH at
Replacement
Pre-1978
$2,775
-1,525 149 1,061 -$166 -$60 0.00 -$4,881 0.00 -$6,235 0.29 -$1,964 1978-1991 -1,525 149 1,061 -$167 -$63 0.00 -$4,969 0.00 -$6,235 0.29 -$1,964 1992-2010 -1,525 149 1,061 -$154 -$53 0.00 -$4,676 0.00 -$6,235 0.29 -$1,964 HPWH at Water
Heater
Replacement +
PV
Pre-1978
$7,336
1,166 149 1,202 $556 $498 1.84 $6,828 1.00 -$16 1.31 $2,284 1978-1991 1,166 149 1,202 $542 $485 1.79 $6,440 1.00 -$25 1.31 $2,272 1992-2010 1,166 149 1,202 $533 $478 1.76 $6,211 0.99 -$46 1.31 $2,250 HPWH
Replacement,
PV, + Panel
Upgrade
Pre-1978
$10,517
1,166 149 1,202 $556 $498 1.28 $3,256 0.70 -$3,197 0.91 -$897 1978-1991 1,166 149 1,202 $542 $485 1.25 $2,868 0.70 -$3,206 0.91 -$909 1992-2010 1,166 149 1,202 $533 $478 1.23 $2,639 0.69 -$3,227 0.91 -$931 PV + Electric
Ready Pre-Wire
Pre-1978
$8,833
2,911 0 1,008 $717 $554 1.69 $6,794 1.28 $2,462 1.07 $586 1978-1991 2,911 0 1,035 $696 $538 1.64 $6,320 0.77 -$2,003 1.06 $571 1992-2010 2,911 0 1,057 $633 $489 1.49 $4,856 0.17 -$7,302 1.06 $544

1.261
localenergycodes.com California Energy Codes & Standards | A statewide utility program 2022-03-07 Get In Touch
The adoption of reach codes can differentiate jurisdictions as efficiency leaders and help accelerate the adoption of new equipment, technologies, code compliance, and energy savings strategies.

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

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

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

Visit LocalEnergyCodes.com to
access our resources and sign up
for newsletters
Contact [email protected]
for no-charge assistance from expert
Reach Code advisors
Follow us on Twitter

1.262
Energy Efficient
Renovations Policy
Development
City Council Study Session
August 6, 2024

1.263
1 Introductions + Background
2 Proposed Policy Requirements
3 Proposed Policy Exemptions
Agenda
4 Examples + Next Steps
5 Q + A Discussion

1.264

INTRODUCTIONS

OBJECTIVE OF MEETING
To share where the City is in developing
an energy efficient renovation policy and
receive feedback from City Council.

1.265
Summer
2020
Prohibition
of Gas in
New
Construction
Ordinance
Spring 2022
4 Community
Conversations on
Existing
Building
Decarbonization
2022
Grant to
decarbonize
existing low
income
homes
Fall 2022
Climate
Action Plan
2030
adopted
Summer
2023
Prohibition
of Gas in
New
Construction
Ordinance
Suspended
Fall 2023
New
Construction
Energy
Reach Code
Adopted
Spring 2024
New
Construction
Energy
Reach Code
goes into
effect
Winter 2024
Energy
Efficient
Renovations
Policy
Development begins
Timeline of Building Decarbonization Efforts
Decarbonization includes lower carbon fuels, renewable energy, energy efficiency, electrification, carbon capture, and other ways to reduce carbon.

1.266
California is pursuing ambitious efficiency measures…
26% of
Santa Cruz’
Community-wide
emissions are
from building
energy

1.267
WELCOME! MEET OUR TEAM
www.cityofsantacruz.com/climateactionplan
CEQA Qualified Target (legally defensible, minimum for CEQA):
40% emissions reduction by 2030 from 1990 levels (9% reduction 1990 to 2020) Aspirational Target of Carbon Neutral by 2035 (voluntary) 1 2

1.268
CAP 2030 Measures + Actions

1.269
Emissions Reductions by Measure to 2030 Target
17% of total
reductions needed

1.270
• 97% Lighting upgraded to LED
• 13 heat pump water heaters installed replacing gas water heaters • 2 buildings electrified with heat pump HVAC
• Municipal Decarbonization Roadmap pending grant award funding Decarbonizing City Building Stock

1.271
Gas Furnace
House Illustration source: Southern California Edison
Building
Envelope
How do
Our
Buildings
Use
Energy?

1.272
When are
building
energy
decisions
made?
• When they are built
• When something breaks
• When a building is undergoing a major
addition or alteration

1.273
What Are Major Additions and Alterations?

1.274
• “Any change to an existing building that increases conditioned floor area and conditioned volume.” (California Energy Code) • Proposed: A major addition is adding 350 or more square feet.
• Project requires a building permit and must comply with existing local and statewide requirements.
• A major addition requires an architect, engineer, and energy code compliance expertise.
• The contractor team will typically include, at a minimum, a general contractor, electrician, and plumber.

Example of a major addition:
• Single family home
• Adds 350+ square feet, such as in a second story addition with two new bedrooms and a full bathroom
• Project valuation reported at $230,000
What is a Major Addition?

1.275
• “Any construction or renovation to an existing structure other than repair or addition.” (California Building Code)
• Proposed: A major alteration is altering 350 square feet or more of existing floor area.
• Project requires a building permit and must comply with existing local and statewide requirements.
• A major alteration can also require an architect, engineer, and energy code compliance expertise.
• Depending on the alteration, the contractor team could include a general contractor, electrician, and plumber.

Example of a major alteration:
• Single family home
• Alters 350+ square feet of floor area, such as converting 2 bedrooms and a hallway into 3 bedrooms and adding a new bathroom
• Project valuation reported at $135,000
What is a Major Alteration?

1.276
Proposed Energy Efficiency Requirements

1.277
16 Existing Building Stock Mostly Single Family Homes
84% of Single Family Homes built before 1991

1.278
Proposed requirements for major residential addition and/or alteration projects to include energy efficiency measures.*
What is a “major” addition or alteration as proposed?
• An addition of 350 or more square feet of floor area (aligns with Green Building Program threshold). • Any addition and alteration combination with an impacted area of 350 or greater square feet.

What would a project applicant have to do?
• Pick from a menu of energy efficiency measures and in some cases provide outlets for future zero emission appliances.

Would this apply to small projects, appliance replacements, window projects, roof projects, cosmetic changes, work that doesn’t require a permit, kitchen appliances, or gas stoves? • No, no, no, no, no and no.

The proposed ordinance is projected to impact 300 permits a year with a median project valuation of $130k *Proposed requirements are current as of August 2024 and may be revised based on City Council and community feedback.

Proposed Policy-at-a-Glance

1.279
Energy Efficiency Measures + Packages
Measures Points
LED lamps and Exterior Photocells Mandatory
Water Heating Package 1
Air Sealing 2
R-49 Attic Insulation 4
Duct Sealing 3
New Ducts + Duct Sealing 6
Windows 4
R-13 Wall Insulation 5
R-19 Floor Insulation 9
R-30 Floor Insulation 10
Heat Pump Water Heater (HPWH) 12
Heat Pump Space Heater 18
Induction Cooktop 1
Heat Pump Clothes Dryer 1
Solar PV + Electric Ready Pre-Wire 13
Panel-related Pre-wiring Mandatory
Mechanical, Kitchen & Laundry Room
Electric Ready Pre-Wire
Mandatory
Requirements:

1. Install any number of the
measures from the table that
add up to a total score of 9 or
greater. Many combinations
possible

2. Complete all mandatory
requirements.

There are at least 5
cost effective combinations.

1.280
Compliance Examples

1.281
Electric Readiness
• If a project involves a new electrical panel OR electrical service upgrade to 200A, electric readiness components will be installed for space heating and water heating appliances. • If an alteration or addition includes work in utility, kitchen or laundry spaces, electric readiness components will be installed for electric appliances (e.g., water heater, furnace, stove and clothes dryer). • If installing solar PV to achieve compliance, must also include electric readiness for water heating, space heating, and either energy storage system ready OR EV charger ready.

1.282
Proposed Exemptions

1. Repairs

2. Pre-Compliance

3. Historic Building The applicant may request an exemption to any requirements of this chapter which would impair the historic integrity of any building listed on a local, state, or federal register of historic structures

4. Hazard Mitigation  e.g., seismic retrofit

5. Temporary Structures

6. Cost Burden Costs associated with ordinance compliance exceeds 20% of project valuation

7. Only touching roof or windows or roof and windows

8. Manufactured Homes (Title 25 compliance only)

1.283
Cost Impacts of the Proposed Policy
• The median project valuation for permits $130,000 captured by this policy. • The estimated typical cost of compliance (not $6,600 including rebates or incentives). • The increased cost for a typical project
complying with this policy (not including
rebates or incentives). 5%
• Large renovations projects are one of the best
opportunities to make improvements to buildings which
result in reduced energy usage, reduced emissions, and Why? improved comfort and satisfaction for residents.

1.284
Major Addition Example
Example
• Single family home
• Adds 350+ square feet in a second story with two
new bedrooms and a full bathroom
• Project valuation reported at $230,000
Compliance Example
• Project chooses a heat pump hot water heater to
comply ($6,500) and LED lightbulbs ($250)
• Total compliance cost = $6,750 (3% cost increase).
• Measures are cost effective
• Rebates and incentives up to approximately $5,000
(much higher if low-moderate income) available

1.285
Major Alteration Example
Local Example
• Single family home
• Alters 350+ square feet, including converting 2
bedrooms, and a hallway into 3 bedrooms and
renovating the kitchen
• Project valuation reported at $135,000
Compliance Example
• Project chooses a heat pump hot water heater to
comply ($6,500), electric circuit and outlet for
electric cooktop ($750) and installs LED lighting
($250)
• Total compliance cost = $7,500 (5.5% cost increase)
• Measures are cost effective
• Rebates and incentives up to approximately $5,000
(much higher if low-moderate income)

1.286
The policy is not:
• Regulating the use of gas cooking equipment or other kitchen equipment or appliances. • Requiring electrification.
• Triggered by small projects like flooring, window replacements, kitchen upgrades, etc. • Triggered by work that doesn’t require a permit.
• Triggered by single appliance replacements.

The policy does consider:
• Special onsite challenges or circumstances.

What this policy would not do

1.287
• Central Coast Community Energy provide direct incentives ($4,600 - $5,300+).
• Limited Self Generation Incentive Program applicability • New Regional Energy Network coming online with possible more incentives in 2025
• Inflation Reduction Act tax credits are available for most residential energy upgrades (approximately 30% for each improvement, with caps per measure and total in a given tax year).
• Exploring services to help community members navigate complicated projects, e.g., Quit Carbon
• Resubmitting grant proposal for low income decarbonization and resilience in frontline neighborhoods (with tenant
protections/affordability)
Resources

1.288
Engagement
• 1 Virtual Webinar with Developers, Designers, Contractors • 1 Virtual Webinar with the public
• Decarbonization Webpage
• FAQ
• Survey
Building Decarbonization
webpage + survey:

1.289
June – Aug
2024
Community
Engagement
August 6,
2024
Council
Study
Session
October 11,
2024
Community
Event
October 17,
2024
Planning
Commission
November
26, 2024
1st Council
Reading
December
10, 2024
2nd Council
Reading
December
16, 2024
File with
CEC &
CBSC
April 1,
2025
Code takes
effect
Policy Development Timeline

1.290
Thank you.

Questions
Discussion

1.291
Other Jurisdictions
• Berkeley – full menu of options under consideration
• San Luis Obispo – similar policy to proposed policy adopted in spring 2024. • Chula Vista, Santa Monica – building performance standards advancing • Piedmont, Portola Valley – time of permit requirements similar to proposed policy • Santa Monica, Ojai and West Hollywood– similar to proposed policy advancing (adoption targeting Q4 2024 and Q1 2025).

1.292

Santa Cruz City CouncilAugust 6, 2024

Santa Cruz City Council
August 6, 2024