SONOMA COUNTY RETROFIT AND RENEWABLES PROGRAM DESIGN MANUAL

Transcription

1 SONOMA COUNTY RETROFIT AND RENEWABLES PROGRAM DESIGN MANUAL REGIONAL CLIMATE PROTECTION AUTHORITY 490 Mendocino Avenue, Suite 206 Santa Rosa, CA Version 3.2 May 27, 2010

2 Sonoma County RRP Design Manual Sonoma County Retrofit and Renewables Program Design Manual Version 3.2 This is a living document and this version reflects program design as of the document issue date. If program modifications or policy changes necessitate changes to this Program Design Manual, an updated version will be distributed as appropriate. Table of Contents Table of Contents... i List of Figures... iii List of Tables... iii Program Goals, Objectives and Challenges...1 Goals... 1 Objectives... 1 Market Barriers & Solutions... 2 Program Approach... 4 Market Opportunity... 4 Loading Order... 4 Building as a System... 5 Basic and Advanced Paths... 5 Multi-Family and Non-Residential Approaches... 6 Program Timeline... 6 Legislative and Regulatory Requirements...8 American Recovery and Reinvestment Act of Assembly Bills 811 & Assembly Bill 32: Global Warming Solutions Act... 9 Assembly Bill 758: Energy Efficiency: Equity, Jobs and Green Buildings Act i

3 Sonoma County RRP Design Manual HERS II California Energy Efficiency Strategic Plan County and Other Local Policies Market Conditions Demographics Climate Market and Economic Conditions Built Environment Program Design Program Overview Participation Paths for Residential Projects Historic Preservation Considerations Social Equity Considerations Financing and Incentives Property Owner Incentives Property Assessed Clean Energy Financing Property Owner Engagement Business Capacity Development Contractor Credentials Workforce Training Plan Bulk Purchasing Performance Standards and Quality Assurance Protocols Coordination with Existing Local and Statewide Programs Program Tracking and Reporting Evaluation, Measurement, and Verification ii

4 Sonoma County RRP Design Manual Program Expansion Plans EECBG Competitive Solicitation: Retrofit Ramp-Up Utility and Governmental Programs Post Bibliography Glossary and Acronyms Appendix A: Insulation Material Specifications List of Figures Figure 1. California Building Climate Zone Map Figure 2. Measure Sequence for Residential Projects List of Tables Table 1. Program Timeline... 7 Table 2. Required Single-Family Measures (Prerequisites) Table 3. Optional Single-Family Measures Eligible for PACE Financing Table 4. Education-Only Measures Table 5. Technical Specifications for Residential Eligible Measures Table 6. Trigger Events Table 7. Contractor Credentials Table 8. Stakeholders iii

5 Program Goals, Objectives and Challenges Goals The Retrofit and Renewables Program (RRP) is a public purpose program whose objective is to promote energy-and resource-efficient retrofits of the existing building stock in Sonoma County, put construction professionals back to work, and reduce aggregate greenhouse gas emissions from the county. The program aims to retrofit 13,000 homes in Sonoma County by providing home owners with clear and concise information to support their decision making process; giving them expanded access to capital; helping them evaluate and minimize project risks; and expanding the pool of highly qualified service providers. RRP is administered by the Sonoma County Regional Climate Protection Authority (RCPA), a joint powers authority of all 10 Sonoma County local governments. RRP addresses residential (single and multi-family) and non-residential building stock; this Program Design Manual focuses on single family residential while forthcoming manuals will focus upon multi-family and non-residential. Funding for RRP is derived largely from the American Reinvestment and Recovery Act of 2009 (ARRA) through the Energy Efficiency and Conservation Block Grant (EECBG) Program, State Energy Program (SEP), Retrofit Ramp-Up, and other related grants. Consistent with the goals of these programs, RRP goals focus on creating jobs, saving energy, and reducing greenhouse gas emissions. RRP will achieve the following goals by the end of the ARRA funding term in Retrofit 13,000 single-family homes with an average 30 percent energy reduction; Create 1,400 home energy retrofit jobs; Make significant progress toward reducing the county s annual greenhouse gas emissions attributable to energy consumption in its existing building stock by 168,000 tons CO 2 e (152,407 metric tons CO 2 e). 1 In addition to the benefits offered by RRP, program participants will be encouraged to participate in the incentive programs offered by the Investor-Owned Utilities (IOUs) and the financing offered by the Sonoma County Energy Independence Program (SCEIP). Objectives The following program design objectives will ensure that RRP meets all program goals: Implement a self-sustaining community-scale building retrofit program in partnership with the Sonoma County Energy Independence Program (SCEIP), the existing Property Assessed Clean Energy (PACE) program, to offer attractive and accessible financing, consumer education, and contractor support; 1

6 Establish a regional program that allows participation of all 10 local governments in the county to ensure regional consistency and achieve economies of scale; Engage property owners through effective outreach strategies, providing clear and credible information and offering a user-friendly administrative system to maximize customer participation; Build local business capacity through training and workforce development that offers competitive pricing, consistent quality, high-performance standards and customer satisfaction; Coordinate with existing utility, local, and statewide programs to streamline efficiency and drive down program delivery costs; Develop and implement tools, processes, and systems to effectively manage and implement RRP, including project tracking, measuring energy benefits, and reporting results; Establish a successful regional program model that attracts additional ARRA funding and merits substantial investment of Public Goods Charge monies beyond the ARRA timeframe. Market Barriers & Solutions RRP s core focus is to enlist participation from two key participant classes: property owners and contractors. RRP s objective is to perform whole-building retrofits (to program standards and requirements) on a mass scale. Currently, the market does not support whole-building retrofits, and such an approach faces a number of existing market barriers: Lack of Information: Many property owners are unaware of the benefits of a building energy retrofit. In addition, they are financially constrained and hesitant to commit to the levels of energy savings improvements needed to meet RRP goals; Risk: Property owners perceive significant risks to making energy efficiency improvements. This perception stems from difficulties in evaluating contractor qualifications, lack of technical expertise to independently evaluate performance claims, and the inability to see clearly see the cost reduction benefits of improvements in utility bills; Access to Capital: Banks and other lending agencies have grown more reluctant to offer financing at affordable rates and terms; Capacity Constraints: The building industry does not currently have enough experienced professionals with the knowledge, tools, and expertise to deliver whole building retrofits. To address these barriers and assure that benefits of participation outweigh the required commitments of time, energy, and financial resources, RRP s program design is structured to deliver key value propositions. 2

7 For property owners, the value of participating consists of: Maximizing the value of their retrofit investment to reduce energy and water utility bills and improve their building s comfort and indoor air quality, in accordance with building sciencebased best practices; Gaining access to PACE financing at a competitive interest rate, thereby reducing or eliminating the need for significant upfront cash investments; Obtaining assistance in identifying and accessing additional sources of financing, incentives, rebates, and tax credits including utility programs; Obtaining program guidance in identifying qualified contractors who possess the requisite building performance skills and meet key program participation criteria (such as high customer satisfaction); Gaining assurance of future project performance through credible and rigorous program quality control and quality assurance procedures and related consumer protection measures; Making property improvements that support higher property values, either through wholebuilding energy performance labeling or more comprehensive green building labeling. Similarly, the value proposition for contractors consists of: Expanded business opportunities for performing whole-building retrofits through new financing, incentives, and other customer-focused value propositions; Reduced costs of customer acquisition on a per-customer basis through program marketing and lead generation efforts; Technical support and training to improve the contractor s building science expertise; Enhanced market credibility through objective program standards for contractor credentials, building performance modeling, installation procedures, and quality assurance. 3

8 Program Approach Market Opportunity Most of the approximately 197,000 housing units in the county 2 were built before state energy efficiency standards (Title 24) 3 were implemented, beginning in the early 1980s. More recent vintage residential buildings also offer great potential for energy savings because of deficiencies in construction specification and field work quality. A property owner investment of $5,000 to $15,000 for single-family building and $500 to $2,000 for a multifamily dwelling unit can often achieve an average of 20 to 30 percent energy savings, reduce utility bills, improve occupant comfort, enhance indoor air quality, and increase building value. Energy efficiency improvements are a crucial first step, but there is further high potential for these improvements to be augmented with clean distributed generation technologies to achieve even greater energy use reductions. Water efficiency measures offer additional economic benefits through direct utility bill savings to the customer and indirect reductions in energy use associated with pumping, pre-treating, and post-treating the water supply. Loading Order In keeping with building science best practices, State of California Energy Action Plan II, 4 and other local, state, and federal program policy, RRP will follow an energy efficiency loading order: The loading order identifies energy efficiency and demand response as the State s preferred means of meeting growing energy needs. After cost-effective efficiency and demand response, we rely on renewable sources of power and distributed generation, such as combined heat and power applications. 5 In keeping with State policy, RRP requires property owners to install energy efficiency improvements in advance of on-site solar-electric (photovoltaic) generation or other on-site renewable energy generation. Installing energy efficient improvements first will lead to: Installation of smaller and less costly solar-electric systems; Meeting a greater portion of the building s electricity load with the same size solar-electric system; and Maximizing energy savings for combined energy efficiency and solar-electric projects, while providing potential positive cash flow for the total project. 4

9 Building as a System RRP s approach to energy efficiency improvements is to follow the US EPA s Home Performance with ENERGY STAR (HPwES) model that treats the building as an integrated system rather than a combination of individual components or separate systems. The RRP model extends this basic platform to offer truly comprehensive retrofit options, including water efficiency and other non energy-related measures that address health and safety issues (such as indoor air quality). The essence of the building-as-a-system approach is that an optimized building shell (thermal boundary) provides increased comfort and indoor air quality while reducing energy use associated with space heating and cooling. A specific measure sequence is required to realize the full benefits of this approach: Air sealing to obtain a tight building envelope and reduce air leakage Insulation (attic, ceiling, walls, subfloor, water pipes) to complete the thermal boundary Proper sizing, design, installation and commissioning of space heating and cooling systems In addition to these measures to improve building shell and HVAC performance, a number of energy efficiency measures can be adopted at any time without compromising the building-as-a-system approach, including improvements to hot water systems, lighting, and appliances. Despite the fact that some of these improvements may not be eligible for rebates, incentives and SCEIP s PACE financing, RRP will still market their benefits in conjunction with other efficiency improvements. Basic and Advanced Paths The RRP model delivers building energy retrofit services through building performance contractors and building energy raters who are specially trained in advanced building science principles and possess multi-disciplinary skill sets in insulation, electrical, HVAC, plumbing, and renewable energy systems. Establishing a robust network of contractors with the requisite skill sets will take time. Thus, in keeping with the California Public Utility Commission (CPUC) approved energy efficiency programs, RRP offers two paths to participation: The Basic Path (also called the Prescriptive Path) will allow contractors to move quickly from business as usual to a first stage in the whole-building method of retrofitting. This pathway involves several prerequisite measures that are installed by a contractor who can be trained in a short time to acquire the required expertise. Like contractors, property owners must also move quickly into the whole-building retrofit performance approach. The Basic Path helps the property owner by providing a pre-defined work scope that can be adopted with minimal on-site analysis. The Basic Path measure package is designed to deliver 20 percent energy savings on average. 5

10 The Advanced Path (also called the Performance Path) represents RRP s preferred approach to building energy retrofitting. Programmatically, it aligns with the California Energy Commission (CEC) Phase Two Home Energy Rating System (HERS II) program, HPwES, and the CPUCapproved Whole-House Performance Program (WHPP). It includes a full-building energy performance assessment with comprehensive recommendations aimed at significantly improving energy and water efficiency, comfort and indoor air quality. This path emphasizes a whole-building performance approach to developing the project work scope, and can include any combination of energy efficiency and renewable energy measures that produce at least a 20 percent improvement in whole building energy performance, as modeled using a CEC-approved building energy simulation software package. The path also includes a second performance assessment at the end of the project to verify that installed measures will perform as designed. Consistent with the State-developed loading order, on-site renewable energy can be financed after completing the required measures in the Basic Path or achieving 20 percent efficiency improvement through the Advanced Path. Multi-Family and Non-Residential Approaches RRP is developing a comprehensive approach toward achieving energy efficiency retrofits in multi-family and small commercial properties. RRP intends to serve both as a complement to and provide coordination of existing retrofit programs for these properties through PG&E and county-wide organizations such as the Small Business Energy Alliance. RRP is currently developing program design standards for multi-family and small commercial and, once they are complete, they will be included in future versions of this document. Program Timeline RRP will be rolled out in phases (Table 1), starting with program development through the first two quarters (Q1-Q2) of RRP will launch in early Q3 2010, leveraging the existing SCEIP application process and platform and regional marketing and contractor lead-generation efforts through the SEP Bay Area program, and highlighting contractor engagement and workforce training. In late Q3, RRP and SCEIP will unveil the full county web tool for a streamlined one-stop process for consumers. In late Q3/early Q4 2010, RRP will coordinate with the IOU rebate programs. 6

11 Table 1. Program Timeline Activity Program planning in coordination with SCEIP X x Market research and planning x x 2010 Q1 Q2 Q3 Q4 Workforce development plan and stakeholder engagement (workforce investment boards, community x x colleges, etc.) Contractor engagement x x x County web-tool development x x County web-tool launch x Launch consumer education campaign x Ongoing consumer outreach and education x x x Ongoing contractor training x x x Financing coordination with utilities x x Ongoing project financing, tracking, quality assurance, and related implementation activities x x x Real estate sector engagement x x

12 Legislative and Regulatory Requirements American Recovery and Reinvestment Act of 2009 Funding for RRP derives largely from the American Recovery and Reinvestment Act of 2009 (ARRA), as programmed through US DOE-administered Energy Efficiency and Conservation Block Grant program. ARRA is an economic stimulus package enacted by the 111th United States Congress in February The Act followed other economic recovery legislation passed in the final year of the Bush presidency including the Economic Stimulus Act of 2008 and the Emergency Economic Stabilization Act of The financial allocations in ARRA are nominally worth $787 billion. ARRA includes federal tax cuts, expansion of unemployment benefits and other social welfare provisions, and domestic spending in education, health care, and infrastructure, including the energy sector s allocation of over $60 billion. The energy efficiency provisions within ARRA are substantial, and include the following: $3.2 billion toward Energy Efficiency and Conservation Block Grants; $6.3 billion for state and local governments to make investments in energy efficiency; $500 million for training of green-collar workers (by the Department of Labor); $2.5 billion for energy efficiency research; $5 billion for weatherizing modest-income housing; $4.5 billion for state and local governments to increase energy efficiency in federal buildings; $300 million to buy energy efficient appliances; $250 million to increase energy efficiency in low-income housing; $4 billion to the Department of Housing and Urban Development (HUD) for repairing and modernizing public housing, including increasing the energy efficiency of units; $2 billion to help communities purchase and repair foreclosed housing; $510 million for the rehabilitation of Native American housing. Sonoma County local governments contributed $415,000 in EECBG funding to RCPA to develop and implement RRP. RCPA, in collaboration with other local governments in the Bay Area, has successfully leveraged the EECBG funding to secure $1.2 million in SEP funds from CEC through the Comprehensive Residential Building Retrofit Program. SEP funds will be used to support Retrofit Bay Area, a $10.75 million program that seeks to support local programs by providing regional marketing resources and systems and retrofit program design tools. In addition, RCPA also successfully responded to the Retrofit Ramp-Up competitive solicitation from US DOE through the EECBG program. Los Angeles County, acting 8

13 as the lead applicant on behalf of four California regions, secured $30 million statewide, including $1.3 million for innovative financing and neighborhood-scale retrofitting pilot projects in Sonoma County. In addition to money awarded to RCPA, RRP will leverage $1 million awarded to Sonoma County Workforce Investment Board and community colleges for the Green Building and Clean Energy Retraining Program, and the $2.5 million awarded to the Sonoma County Energy Independence Program through the SEPfunded Municipal Financing Program. Assembly Bills 811 & 474 As part of RRP, RCPA will leverage the existing PACE district created by the Sonoma County Energy Independence Program, pursuant to Assembly Bills 811 and 474. Both AB 811 and 474 amended Chapter 29 of the California Streets and Highways Code to allow for contractual assessments to finance energy and water projects on private property. In 2008, AB 811 amended the Code to enable cities, counties and joint powers authorities to enter into contractual assessments with free and willing property owners to finance energy efficiency and renewable energy improvements that are permanently fixed to real property. 6 In this contractual property assessment, the agency provides the upfront cost of the measures, which is secured by a senior lien on the property and repaid over time through the property tax bill. In 2009, AB 474 was passed to add water efficiency improvements to the list of measures that can be financed through contractual assessment districts. AB 474 also enables PACE programs and other government entities to enter into contractual assessments with property owners to finance water efficiency measures. While the PACE finance mechanism will enable property owners to more easily finance energy efficiency and renewable energy retrofits, it will also help sustain building retrofit programs beyond the ARRA funding cycle. Assembly Bill 32: Global Warming Solutions Act California s AB 32 Global Warming Solutions Act (2006) and its supporting 2009 Scoping Plan, developed by the California Air Resources Board (ARB), requires the State to reduce greenhouse gas emissions to 1990 levels by 2020 and to 80 percent below 1990 levels by These provisions have been incorporated into the CPUC s 2008 Energy Efficiency Strategic Plan. 7 which targets an average 40 percent reduction in purchased energy for the existing building stock by 2020 and an 80 percent reduction by Per the Scoping Plan, ARB advises all local governments to set greenhouse gas emissions reduction targets and create climate action plans that outline strategies to meet those targets. RRP is a central 8 emissions reduction strategy of the countywide plan developed by the Climate Protection Campaign. RRP tracking and reporting systems will be intentionally designed to quantify the greenhouse gas 9

14 emission benefits of program activities for purposes of reporting on progress toward climate action plan goals. Assembly Bill 758: Energy Efficiency: Equity, Jobs and Green Buildings Act This recent legislation, signed into law on October 11, 2009, requires CEC to develop and implement a comprehensive energy efficiency program for existing residential and non-residential buildings. In keeping with the legislative intent of AB 32, this program is intended to reduce greenhouse gas emissions from the building sector. In effect, this new law allows CEC to reinforce and supplement the existing policies of CPUC for the large investor-owned utilities. It establishes similar CEC jurisdictional powers over the state s municipal utilities and other publicly owned utilities, particularly in adding mandates for strengthening the energy efficiency programs of those public utilities. AB 758 also requires CPUC to investigate energy efficiency financing options that could be provided by utilities, and to require utilities to provide low- or no-cost energy audits. Implementation of AB 758 is anticipated for 2011, following initial CEC studies and coordination with other agencies earlier in HERS II In December 2008, the CEC passed the Phase Two Home Energy Rating System (HERS II) program and its implementing regulations. HERS II establishes a California standard protocol for providing energy ratings for existing buildings. The rating scale extends from zero (for a net zero energy purchasing building) through 100 (a current State energy code compliant new building s energy use) and up to 250 for existing noncompliant buildings. HERS II includes training and certification requirements for both energy raters and building energy performance qualified contractors, and institutes a building retrofit reporting system through the State s three CEC-credentialed HERS providers: CalCERTS, California Home Energy Efficiency Rating Services (CHEERS), and the California Building Performance Contractors Association (CBPCA). The HERS II system establishes protocols for evaluating baseline conditions of a building, developing a cost-effective work scope, and verifying post-installation improvements in building performance. Qualified energy simulation models will be used by the raters and contractors to estimate building energy use, recommend improvements, and establish official energy ratings. RRP will include an Advanced Path for building energy retrofits that complies with HERS II and other state and federal standards, including HPwES retrofit and quality assurance standards and Building Performance Institute (BPI) standards for contractor certification. 10

15 California Energy Efficiency Strategic Plan The CPUC s California Energy Efficiency Strategic Plan sets the following goals to be reached by percent of existing homes exhibit a 70 percent decrease in purchased energy from 2008 levels; 75 percent of existing homes exhibit a 30 percent decrease in purchased energy from 2008 levels; 100 percent of existing multi-family homes exhibit a 40 percent decrease in purchased energy from 2008 levels. For the program cycle, the CPUC s statewide goal is to retrofit 130,000 housing units, representing one percent of the state s total housing stock. In collaboration with Pacific Gas and Electric (PG&E), RRP aims to contribute 13,000 units toward that goal. County and Other Local Policies RRP implements one of the main approaches outlined in the Sonoma County Community Climate Action Plan (CCAP), which outlined strategies to achieve the countywide greenhouse gas emissions target adopted by all ten local governments in the County. This target, reducing emissions to 25 percent below 1990 levels by 2015, is the one of the most aggressive targets in the country. 9 Current local government policies in the county are taking a voluntary market-based approach (e.g., AB 811 financing, incentives, education, and outreach, etc.) toward achieve the county s retrofit goals. Depending, however, on RRP s market penetration, targeted mandatory requirements may need to be considered in the future to achieve aggressive state energy and greenhouse gas emissions reduction goals. Market Conditions A detailed market analysis will be performed as part the development of a comprehensive marketing communications and outreach plan. Preliminary descriptive statistics are provided below. Demographics 10 Sonoma County, with an estimated population of 463,000 in 2008, is a relatively small county with a rural nature composed mainly of small towns and mid-sized cities. The county encompasses a land area of 1,575 square miles. 11 In 2008, the average household income was $63,768. Fifty-three percent of Sonoma County residents have obtained a high school degree or higher while 31 percent of residents have obtained a Bachelors degree or higher. Culturally, approximately one-sixth of residents are foreign born, and slightly less than 20 percent speak a language other than English at home. 12 Ethnically, Sonoma County residents are 22 11

16 percent Hispanic, 69 percent White (Non-Hispanic), 4 percent Asian, 1.5 percent African American, and 1.2 percent other races. Climate Sonoma County encompasses two California Climate Zones (1 and 2 Figure 1), which define Title 24 requirements for this area. The western edge of the county is in Climate Zone 1, which is defined largely by coastal conditions and is generally moist and cool, with average temperatures between approximately F. The rest of the county is in Climate Zone 2, which, while still having a significant marine influence, is generally hotter and drier than Zone 1 in the summer, with average temperatures at approximately 68 F during the hot season. Neither zone experiences significant freezing. 13 Figure 1. California Building Climate Zone Map 14 12

17 Market and Economic Conditions 15 Like most areas in the nation, economic conditions in the county have worsened as a result of the economic downturn in Between October 2008 and October 2009, the number of jobs in the county decreased by 4.8 percent, higher than the rate of most similar counties in California, but less than that of most Bay Area counties. During this time, unemployment increased to 10.3 percent, while the median income decreased slightly. The manufacturing and construction sectors have been hit especially hard, losing the most jobs out of all sectors. Despite the bad news, Sonoma County experienced significant growth in the number of firms established in , well above state levels. In addition, a number of sectors have experienced job growth in the last year, including the government, health and education, and professional services sectors. Built Environment 16 Sonoma County contains over 197,000 housing units. Nearly 63 percent (approximately 112,600) of these housing units are owner-occupied units, and nearly 70 percent are single-family homes. In 2008, the US Census estimated the median single-family home price at $589,700. Since 2006, however, the median sales price of a home has decreased by nearly 33 percent, and it can be expected that all homes have lost similar values. 17 In 2007, the residential sector consumed 1,264 million kwh and 76 million therms, or about 44 percent of total electricity and 67 percent of total natural gas consumed in the built environment. 18 In addition, the County produced more than 20,000 kw in renewable energy in Program Design Program Overview RRP will help property owners identify the right mix of financing and incentives for energy efficiency, renewable energy, and water efficiency improvements. The program will combine these services with education about additional opportunities to improve home health and safety through the retrofit process. For maximum benefit, the program will encourage contractors and customers to approach the building as an integrated system rather than a combination of individual components or separate systems. The essence of the building-as-a-system approach is that an optimized building shell provides increased comfort and indoor air quality while reducing energy use and associated costs. The thermal boundary consists of two layers air barrier and insulation both of which should be continuous as well as in contact with each other for optimum performance. Because of the interaction between the thermal boundary and space conditioning loads, heating or cooling systems upgrades are ideally not to be performed until the building shell is optimized. To ensure adequate safety precautions, RRP requires building shell and duct air sealing to be combined with combustion appliance safety and indoor air quality tests. Other related measures water efficiency, health and safety, and base load (i.e., year- 13

18 round) measures involving electrical appliances, lighting, plug loads, and demand response can be performed at any time without compromising the loading order, which establishes the proper sequence of energy improvements. Participation Paths for Residential Projects RRP will offer two residential participation paths to allow contractors and property owners to transition incrementally to the preferred performance-based whole-building method of building retrofitting: the Basic Prescriptive Path (or Basic Path) and the Advanced Performance Path (or Advanced Path). In both paths, RRP will encourage property owners to go beyond basic energy retrofits and choose comprehensive green retrofits and renewable energy investments customized to their property. Similarly RRP will encourage contractors to offer these services to their customers. The recommended measure sequence is illustrated in Figure 2 below. Figure 2. Measure Sequence for Residential Projects RRP PARTICIPATION PATHS Basic Prescriptive Path Includes prerequisites Minimum needed for financing Advanced Performance Path Requires energy audit Minimum 20 percent energy savings OPTIONAL GREEN BUILDING MEASURES RENEWABLES Reduce, then Produce after minimum 20 percent efficiency achieved Basic Prescriptive Path: Single-family projects participating through the Basic Path must complete the following prerequisites to be eligible for financing and incentives. After the prerequisites are met, additional optional green building and renewable energy measures may be financed. The technical specifications of the measures are presented in more detail in Table 5. Air Sealing: A blower door test shall be performed before and after air sealing to verify a minimum 20 percent reduction in air leakage (i.e., 50 Pascals) has been achieved. It is 14

19 recommended to pursue reductions of greater than 20 percent, whenever possible. Blower door test-in and test-out numbers must be recorded. Evidence of air sealing must also be observable for verification (e.g. presence of sealing materials at all major penetrations and gaps in the attic, top plate, etc.)air sealing shall also include weather stripping of doors and windows. Attic Insulation: Attic insulation must only be installed after air sealing is completed as described above. Attic insulation must meet current Title 24 code. If code cannot be met, then project must meet the requirements of the Advanced Path. Hot Water System insulation: Insulation includes hot water tank and accessible hot water pipes and the first five feet of cold water piping (if space permits). Combustion Appliance Safety Testing: Testing shall meet Building Performance Institute (BPI), California Community Services Department (CSD) or CPUC s Low Income Energy Efficiency (LIEE) standards for combustion appliance safety checks and must be performed by a properly credentialed provider. Carbon Monoxide Sensor: A carbon monoxide sensor and a smoke alarm shall be installed. Duct Testing and Sealing: Ducts must be tested and sealed to leakage levels less than 15 percent. Major duct sealing or duct system replacement can be included in Basic Path project work scopes only if design and installation is performed by a BPI-certified contractor. Additional optional measures are listed in Table 3. Because air sealing can adversely affect venting of poorly performing combustion appliances (furnaces and water heaters), RRP will require participating homes to pass an industry-standard combustion appliance safety check after any air sealing work is done to ensure that no lethal gases (primarily carbon monoxide) have been introduced into the home. Combustion appliance safety tests must be performed by a BPI-certified Building Analyst. Advanced Performance Path: In this path, single-family projects will be required to perform a HERS IIcompliant audit and rating (whole-house home energy rating with test-in and test-out and combustion safety testing) and submit a written report that includes a list of recommended cost-effective measures. The purpose of the audit and report is to achieve the following: To set a baseline energy score/index that will serve as a performance metric; To describe baseline conditions/physical infrastructure present in the building at start of project; To provide supporting documentation for the financing application and proposed performance of work; To help the property owner understand baseline conditions and the basis for the recommended options. 15

20 The project work scope can include any combination of energy efficiency and renewable energy measures that produce at least a 20 percent improvement in whole building energy performance, as modeled using a HERS II approved building energy simulation software package. Because this path does not prescribe particular measures that must be installed, it is well suited to the introduction of emerging technologies into the marketplace. Any technology that offers quantifiable benefits that contribute to the performance target is eligible. Projects receive financing upon achieving the minimum 20 percent efficiency improvement as indicated by the energy audit. Renewable Energy: For purposes of PACE financing through SCEIP, projects that propose to include renewable energy generation must also include an energy-efficient retrofit work scope that satisfies one of the three following conditions: Basic Path: Complete the basic package of prescribed measures, which have been designed to deliver 20 percent energy savings on average; Advanced Path: Achieve 20 percent or more energy performance improvement prior to installation of renewable energy technologies; or Bring the modeled building performance up to the 2005 Title 24 energy standard for that building. Tables 2-3 summarize the Basic Path and Advanced Path measures and their associated eligibility for financing and incentives. Comprehensive Green Retrofits: Energy efficiency, water efficiency, and renewable energy improvements are the centerpiece of comprehensive green home retrofits and remodeling projects. RRP s educational efforts will emphasize the connection between energy improvements and green building practices as a strategy for gaining participation from home owners pursuing remodeling projects and those contemplating buying or selling a home. RRP encourages homeowners to pursue comprehensive building energy and water retrofits (example measures in Table 4) that will meet most, if not all, the criteria for earning a third-party verified green building label such as GreenPoint Rated or another equivalent system. GreenPoint Rated Existing Home is the first comprehensive green building rating system for existing homes of its kind in the nation and is available for homes of all vintages. The system educates homeowners and building professionals about the benefits of green building best practices, including lower energy and water bills, improved occupant health and comfort, reduced maintenance, and enhanced property values. 16

21 Table 2. Required Single-Family Measures (Prerequisites) Pathway Advanced Path Eligible Measures xx Comprehensive Work Scope Use of approved simulation software to predict savings Contractor is a BPI Accredited Contractor and/or participates in Home Performance with ENERGY STAR (HPwES) program. If not a BPI-accredited contractor, then: Company must meet all of the following minimum credential requirements: o Class B General Building Contractor o A minimum number of certified BPI Building Analysts; to be based upon the size of the company by method to be determined o HERS II Whole-House Rater to conduct project test-in, test-out, and performance modeling; once HERS II standards have been released Company must become a BPI-accredited contractor within 12 months of first job completed under this program. 20 percent or more energy savings as verified by a HERS II or equivalent test-out analysis. Basic Path Air Sealing Attic insulation Duct test and seal or replacement Insulation of domestic hot water or replacement Combustion safety (requires BPI Building Analyst) Carbon monoxide alarm If one or more of these measures can t be done, then do Advanced Path above. 17

22 Table 3. Optional Single-Family Measures Eligible for PACE Financing Category Energy Efficiency Air Sealing and Ventilation Insulation Space Heating and Cooling Water Heating Measures Air sealing to reduce air filtration Mechanical ventilation per ASHRAE 62.2 Air barriers Bathroom fan Ceiling fan Crawlspace sealing Whole-house fan Roof Duct Floor or crawlspace Hot water system Cogeneration furnace Demand recirculation pump Duct replacement Ductless mini-split heat pump Evaporative coolers Exhaust fan Heat recovery ventilation system High-efficiency air conditioner High-efficiency furnace High-efficiency heat pump, including air source and geothermal Zoned hydronic radiant heating Programmable thermostat Radiant barrier installation Solar space heating High-efficiency hot water boiler High-efficiency water heater Heat pump water heater Combined space-and-water heating system Tankless water heater Drain water heat recovery system 18

23 Category Energy Efficiency (cont.) Renewable Energy Water Efficiency Lighting Windows, Doors and Skylights Reflective Roof Solar Wind Fuel Cell Indoor Landscaping On-demand recirculation pump Measures ENERGY STAR lighting fixtures, indoor or outdoor (hard-wired) LED lighting, hard-wired Lighting controls, including occupancy sensors ENERGY STAR doors ENERGY STAR skylights ENERGY STAR windows Window film ENERGY STAR cool roof Solar thermal installation Solar photovoltaics Wind turbine power system Fuel cell power system Showerheads: flow at 1.5 gallons-per-minute or less Toilets: dual-flush or flush at 1.28 gallons-per-flush or less Urinals: 0.5 gallons-per-flush or less Aerators: flow at 1.0 gallons-per-minute or less Grey water system Rainwater harvesting system High-efficiency irrigation system Performance-based landscaping water efficiency Improvements, min. 30 percent reduction in annual water use Misc. Other Swimming pool filtration pump and motor High-efficiency or solar pool heater Other water and energy measures shall be considered on a case-bycase basis in consultation with the RRP program. 19

24 Table 4. Optional Comprehensive Green Retrofit Measures (not eligible for PACE financing) Category Energy Efficiency Indoor Water Efficiency Outdoor Water Efficiency Resource Conservation Indoor Air Quality Measure Energy efficient lighting (lamps, bulbs) ENERGY STAR refrigerator ENERGY STAR clothes washer ENERGY STAR dishwasher Refrigerator / freezer recycling AC tune-up: airflow and refrigerant charge Smart power strips Fix plumbing leaks Mulch planting beds Divert all cardboard, concrete, asphalt, and metals from retrofit / remodel process Recycled content insulation Low mercury florescent lights Add a timer or humidistat control to the bathroom exhaust fan Low-emitting insulation Kitchen exhaust fan vented to the outside Garage exhaust fan vented to the outside Merv 6+ filter with appropriately sized equipment Plywood, MDF, particleboard is low-emitting Test for radon in zip codes where radon is expected 20

25 Table 5. Technical Specifications for Residential Eligible Measures Measure Air Sealing Attic Insulation Duct Sealing (existing) Technical Specifications Whole-house air sealing to reduce air infiltration shall be done in accordance with ASHRAE Standard There is a need for contractor instructions for how to comply with the new ASHRAE 62.2 standards. When completed, these will be referenced. In the interim, wholehouse air sealing to reduce air infiltration shall be done in accordance with BPI Standards. 21 Note: One must do air sealing before insulating. Note: One must do air sealing before insulating. This from City of Berkeley draft 22 and Home STAR combined: For feasibility of attic insulation see CSD WIS Manual 2. Attic Insulation shall meet installation and material specification standards indicated in WIS Manual, Appendix A 3. Insulation installed to Quality Insulation Installation (QII) standards as specified in the CEC 2008 Residential Compliance Manual24 with weather-tight patching when needed 4. Result in at least R 38 insulation, R-49 in CA Climate Zones 11 and 16 (matches Home STAR DOE climate zones 5-8), including existing insulation, within the limits of structural access or capacity (see WIS manual for feasibility criteria) 5. Must add at least R-19 per the limits defined above Ducts must be sealed, repaired or replaced in accordance with the requirements contained in the 2008 Title 24 Standards for Alteration in Section 152(b).1.E, as modified below. Section 152(b)(1)(E) requires duct sealing when a space-conditioning system is altered in certain climate zones. 152(b)(1)(E). The duct system shall be sealed, as confirmed through field verification and diagnostic testing in accordance with procedures for duct sealing of existing duct systems as specified in the Reference Residential Appendix RA3 25, to one of the following requirements: 1. The measured duct leakage shall be less than 15 percent of system fan flow, or 2. The measured duct leakage to outside shall be less than 10 percent of system fan flow or 1. EXCEPTION 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 2. EXCEPTION Duct systems with less than 40 linear feet in unconditioned spaces 3. EXCEPTION Existing duct systems constructed, insulated or sealed with asbestos 26 21

26 Measure Technical Specifications New Ducts (Distribution Systems) Section 150(m)(1) lists the Mandatory Features for Low-Rise Residential Buildings 150(m) Air-distribution System Ducts, Plenums, and Fans. 1. CMC compliance. All air-distribution system ducts and plenums, including, but not limited to, mechanical closets and air-handler boxes, shall be installed, sealed and insulated to meet the requirements of the CMC Sections 601, 602, 603, 604, 605 and Standard 6-5, incorporated herein by reference. Portions of supply-air and return-air ducts and plenums shall either be insulated to a minimum installed level of R-4.2 (or any higher level required by CMC Section 605) or be enclosed entirely in conditioned space. Connections of metal ducts and the inner core of flexible ducts shall be mechanically fastened. Openings shall be sealed with mastic, tape, or other duct-closure system that meets the applicable requirements of UL 181, UL 181A or UL 181B or aerosol sealant that meets the requirements of UL 723. If mastic or tape is used to seal openings greater than 1/4-inch, the combination of mastic and either mesh or tape shall be used. Building cavities, support platforms for air handlers, and plenums defined or constructed with materials other than sealed sheet metal, duct board or flexible duct shall not be used for conveying conditioned air. Building cavities and support platforms may contain ducts. Ducts installed in cavities and support platforms shall not be compressed to cause reductions in the cross-sectional area of the ducts. EXCEPTION to Section 150(m)1: The requirements do not apply to ducts and fans integral to a wood heater or fireplace. Section 152(b)(1)(D) lists the new duct Prescriptive approach for Alterations to Low-Rise Residential Buildings 152(b)(1)(D). When more than 40 feet of new or replacement space-conditioning ducts are installed in unconditioned space, the new ducts shall meet the requirements of Section 150(m) and the duct insulation requirements of Package D Section 151(f)10. For all climate zones, the duct system shall be sealed, as confirmed through field verification and diagnostic testing in accordance with procedures for duct sealing of existing duct systems as specified in the Reference Residential Appendix RA3, to meet one of the following requirements: i. If the new ducts form an entirely new duct system directly connected to the air handler, the measured duct leakage shall be less than 6 percent of fan flow and meet the airflow requirements of Reference Residential Appendix RA3; or ii. If the new ducts are an extension of an existing duct system, the combined new and existing duct system shall meet one of the following requirements: a. The measured duct leakage shall be less than 15 percent of system fan flow; or 22

27 Measure Technical Specifications b. The measured duct leakage to outside shall be less than 10 percent of system fan flow; or EXCEPTION: Existing duct systems that are extended, which are constructed, insulated or 27 sealed with asbestos. Combustion Appliance Safety Wall Insulation Crawlspace/ Raised Floor Insulation This is draft language from City of Berkeley: Combustion Safety Testing Combustion safety testing is required for all homes that receive infiltration reduction measures and that have at least one natural gas appliance affecting the living space (excluding oven or range), as defined by the CSD WIS Manual. These tests ensure carbon monoxide is not backdrafting into the home from any open-combustion fireplace, water heater or furnace and shall be conducted as follows: 1. Testing prior to commencement of envelop sealing measures to identify existing issues, such as gas leaks or poorly vented combustion air, that may impact health of occupants and the scope of work, and 2. Testing after envelop sealing measures by a BPI Certified Building Analyst shall meet the National Gas Appliance Test (NGAT) standards as set in the CEC 2008 Residential Compliance Manual (which references WIS standards). This from City of Berkeley and Home STAR combined: 1. Wall Insulation shall meet installation and material specification standards indicated in WIS Appendix A. 2. Insulation installed to QII Standards as specified in the CEC 2008 Residential Compliance Manual with weather-tight patching when needed: 3. Is minimum R-13; 4. Is to full-stud thickness; and 5. Covers at least 75 percent of total wall area. Note: Consider existing requirements in WIS Manual. This from City of Berkeley and Home STAR combined: 1. Wall Insulation shall meet installation and material specification standards indicated in WIS Appendix A. 2. Insulation installed to QII standards as specified in the CEC 2008 Residential Compliance Manual with weather-tight patching when needed: 3. Is minimum R-19; 4. Is to full-stud thickness; and 5. Covers at least 75 percent of conditioned floor space. Refer to local building codes for requirements on ventilation and vapor barriers. Note: Consider also this language from Home STAR? Crawl space insulation or basement wall and rim joist insulation that is installed in 23