IMPACTS ON PROGRAM 7.1 HVAC Unitary HVAC Systems

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1 7. 7. CODES AND STANDARDS IMPACTS ON PROGRAM ASHRAE is the current energy code in New Jersey. This code has been superseded by two newer versions, 2010, and 2013, so there is reason to assume that the state may need to update to a more recent version of ASHRAE The approved and proposed updates to the DOE and ASHRAE 90.1 Efficiency Standards affect several of the appliances incentivized under the SmartStart and Direct Install Programs, and will also have indirect effects on the Pay for Performance Program. In this document we provide an estimate of the impact based on an overall whole building energy performance basis and overview of the HVAC and Lighting program elements that may be impacted by an update to the state building energy code. We compared the current and expected updates for each appliance and evaluated how each update impacts the current program efficiency requirements and savings. Not all programs will be affected by these changes, within the Pay for Performance Program, the baseline against which a proposed project is compared will be affected; therefore, in order to be eligible, projects may need to install higher efficiency appliances to reach the program threshold saving requirements. 7.1 HVAC The tables below provide details of the comparison of efficiency requirements between the NJCEP rebated equipment and ASHRAE , 2010 and 2013 standards. The sections below provide summary information on these comparisons and how the ASHRAE 90.1 updates would impact the NJCEP Unitary HVAC Systems DOE Appliance Standards are generally aligned with either ASHRAE or 2010 standards. For Unitary AC and Split Systems, the DOE and ASHRAE 2007 standards are aligned and have requirements less stringent than the requirements of the NJCEP program. For these systems, ASHRAE 2010 standards are identical to ASHRAE 2007, but efficiency requirements in ASHRAE 2013 change from an EER metric to IEER, and increase significantly, especially for systems larger than 5.4 tons in capacity. For example, NJCEP requires that unitary AC and split systems between 5.4 and tons have efficiencies above 11.5 EER, compared to the average ASHRAE 2007 efficiency requirement of 11.1 (including equipment with no heating or electric resistance heating). However, the average ASHRAE 2013 requirement is 12.8 EER, well above the current NJCEP program requirement. For the ton size category, NJCEP requirements would need to increase from 11.5 EER to approximately 13.3 EER to maintain the same the efficiency margins as ASHRAE 2007 if using ASHRAE 2013 as the baseline. The DOE appliance standards are expected to implement efficiency improvements in 2019 that are well above the ASHRAE 2013 standards. Air to Air Heat Pumps are covered by aligned requirements under the DOE appliance standards and ASHRAE However, ASHRAE 2010 and 2013 incrementally increase the efficiency requirements

2 above ASHRAE In 2013, the efficiency metric changes from EER to IEER. Average ASHRAE 2013 efficiency requirements (including equipment with no heating or electric resistance heating) are equal to or more stringent than the current NJCEP requirements. The DOE appliance standards are expected to implement efficiency improvements in 2019 that are well above the ASHRAE 2013 standards. For Packaged Terminal Air Conditioners and Heat Pumps (PTACs and PTHPs), the DOE and ASHRAE 2010 standards are aligned. On average (including both standard and nonstandard size units), ASHRAE 2010 standards are slightly more stringent than ASHRAE 2007 requirements, but still lower than the NJCEP requirements. ASHRAE 2013 does not increase efficiency requirements beyond ASHRAE 2010 for PTACs and PTHPs. For example, NJCEP requires that PTACs and PTHPs with capacities between 9,000 and 12,000 BTUH have efficiencies above 11 EER, compared to the average ASHRAE 2007 efficiency requirement of 9.4. In ASHRAE 2010 and 2013, the minimum efficiency required for these systems is 9.7. The DOE appliance standards are expected to implement efficiency improvements in 2019 that are well above the NJCEP requirements Central Direct Expansion Systems DOE standards only have requirements for systems smaller than 63 tons (9.7 EER on average for aircooled air conditioners), which align with the ASHRAE 2007 requirements. The ASHRAE efficiency requirements are slightly lower for systems larger than 63 tons. ASHRAE 2010 requirements are largely equivalent to the 2007 requirements, but ASHRAE 2013 efficiency requirements significantly increase for central DX systems. The current NJCEP requirements (9.5 EER) are below current DOE and ASHRAE standards (9.7 EER) and need to increase to avoid freeridership. For central DX systems greater than 30 tons, the average ASHRAE standards increase from an average of 9.6 EER in 2010 to 10.9 EER in The DOE appliance standards are expected to implement efficiency improvements in 2019 that are well above the ASHRAE 2013 requirements. The following table summarizes the Unitary HVAC and Central DX changes. The yellow highlighted values indicate where the ASHRAE Standards align with the DOE appliance standards. The Required Efficiencies in the far right columns represent the necessary program efficiency threshold to maintain the same efficiency margin compared to the different versions of ASHRAE. For example, if the program was to adopt ASHRAE 2013 Standards for Unitary AC and Split systems, then for units smaller than 5.4 tons the program threshold would need to increase from 14 to Gray highlighted values indicate that there were no changes compared to ASHRAE 2007 Standard.

3 Technology Classification / Size Unitary AC and Split Systems ASHRAE ASHRAE ASHRAE NJCEP Threshold Required Efficiency < 5.4 tons to < tons to < 20 tons to 30 tons Air to Air Heat Pumps < 5.4 tons to < tons to < 20 tons to 30 tons Packaged Terminal AC & HP < 9,000 BTUH ,000 to 12,0000 BTUH > 12,000 BTUH Central DX AC Systems 30 to 63 tons > 63 tons Water Source Heat Pumps

4 7.1.3 Chillers ASHRAE90.1 is currently the only national standard with chiller efficiency requirements; the DOE does not currently have standards for chillers. While the ASHRAE Standards only have one compliance path, ASHRAE 2010 and 2013 allow two compliance paths for aircooled and watercooled electric chillers A for fixed speed chillers and B for variable speed chillers. The NJCEP requirements range from 0.27 to 1.2 kw/ton, depending on size, type of chiller (aircooled or watercooled), and whether efficiencies are at full load (FL) or part load (PLV). Generally, NJCEP requirements are more stringent than the ASHRAE 2007 requirements, except in the case of watercooled centrifugal chillers. NJCEP efficiency requirements (minimum of 0.75 kw/ton) are less stringent than ASHRAE 2007 (0.70 kw/ton) for watercooled centrifugal chillers smaller than 150 tons, and must be increased to avoid freeridership. Efficiency requirements increase incrementally in ASHRAE 2010 and NJCEP IPLV requirements are less stringent than ASHRAE 2010 and 2013 B requirements for watercooled centrifugal chillers. NJCEP IPLV requirements are less stringent than ASHRAE 2013 B requirements for water cooled reciprocating and displacement chillers greater than 150 tons. For Absorption Chillers, there are no changes from ASHRAE 2007 to ASHRAE 2010 or All FL and IPLV COPs are below the requirements of the NJCEP program. The following table summarizes the changes in Chiller Standards. The red highlighted values indicate where the ASHRAE Standards have changed so dramatically that they now exceed the program s minimum efficiency requirements. The Required Efficiencies in the far right columns represent the necessary program efficiency threshold to maintain the same efficiency margin compared to the different versions of ASHRAE. For example, if the program was to adopt ASHRAE 2013 Standards for Water Cooled Displacement chillers, then for units smaller than 75 tons the program minimum efficiency would need to increase from 0.75 to 0.71 under A to maintain the same efficiency margin. Gray highlighted values indicate that there were no changes compared to ASHRAE 2007 Standard.

5 Chiller Type 1 Size Air Cooled Water Cooled, Displacement Water Cooled, Centrifugal < 150 > 150 < <, < <, < <, < 600 Required Efficiency to Maintain Margins ASHRAE Standards NJCEP ASHRAE 2010 ASHRAE Max Min Max Min A B A B Max Min FL IPLV FL IPLV IPLV 0.70 FL IPLV FL IPLV FL IPLV FL IPLV > 600 FL < <, < <, < 400 IPLV FL IPLV FL IPLV FL IPLV A B A B A B A B

6 Chiller Type 1 Size 400 <, < 600 Required Efficiency to Maintain Margins ASHRAE Standards NJCEP ASHRAE 2010 ASHRAE Max Min Max Min A B A B Max Min FL IPLV > 600 FL IPLV All chiller efficiency requirements are in terms of kwh/ton A B A B A B A B

7 7.1.4 Boilers NJCEP currently has efficiency requirements that exceed those for DOE and ASHRAE requirements for gas fired boilers, both hot water and steam. Current 2012 DOE standards align with ASHRAE standards. ASHRAE standards for boilers remain the same until ASHRAE 2013, except boilers < 300 MBH must have a minimum efficiency of 82% rather than 80%. The next expected update to the DOE standards will not be in effect until March 2, 2022; this update will only affect natural draft steam boilers. The current NJCEP efficiency requirements still exceed the expected 2022 DOE updated efficiency values. Currently, the NJCEP efficiency values for all types of gas fired boilers are between 2% and 5% higher than DOE and ASHRAE Standards, depending on size and heat source. ASHRAE and DOE efficiency values are in terms of thermal efficiency for units between 300 MBH and 2,500 MBH and conversion efficiency for units greater than 2,500 MBH; whereas, NJCEP efficiency values are in terms of AFUE for all units. In order to maintain the current efficiency margin between NJCEP values and DOE/ASHRAE values for the expected 2022 DOE updates, NJCEP efficiency values for steam boilers would have to increase to 85% AFUE for units between 300 MBH and 1,500 MBH, and to 84% for units between 1,500 MBH and 4,000 MBH. NJCEP, DOE, and ASHRAE separate gas fired boilers into the following size categories: NJCEP DOE ASHRAE <300 MBH <300 MBH 300 to < 1,500 MBH 300 to </= 2,500 MBH 300 to </= 2,500, MBH 1,500 to < 4,000 MBH >2,500 MBH >2,500 MBH >4,000 MBH Furnaces DOE gas furnace requirements are aligned with ASHRAE 2007 through 2013 standards; all require a minimum of 80% thermal efficiency. The efficiency requirements for qualifying gas furnaces in NJCEP are 15% higher than both current DOE and ASHRAE requirements. There are no expected updates for the DOE or ASHRAE efficiency requirements. ASHRAE and DOE efficiency values are in terms of thermal efficiency, while the NJCEP efficiency value is in terms of AFUE Water Heating Current DOE and ASHRAE 90.1 standards are in alignment in terms of thermal efficiency requirements. DOE standards also include maximum standby loss requirements, while ASHRAE 90.1 does not. ASHRAE includes a separate energy factor requirement for smaller units. ASHRAE 2007 standards are equivalent

8 to 2010 and 2013 standards, except that the energy factor for water heaters less than 50 gallons in size incrementally increases from 0.55 to There are no expected updates to the DOE requirements. NJCEP, ASHRAE, and DOE each separate gas fired water heating equipment differently based on size and rating, but use different methods to delineate the categories. In DOE standards, there is one thermal requirement that applies to all sizes and ratings. This causes a discrepancy in requirements for smaller systems (less than 50 gallons in NJCEP terms) because the requirement is in terms of energy factor, not thermal efficiency, for both NJCEP and ASHRAE. For systems less than 50 gallons, NJCEP requirements exceed ASHRAE 2007 and 2013 energy factor requirements by 21% (0.12 EF) and 3% (0.02 EF), respectively. NJCEP requirements would need to increase from 0.67 to approximately 0.79 EF to maintain the same the efficiency margins as ASHRAE 2007 if using ASHRAE 2013 as the baseline. For systems greater than 50 gallons, NJCEP efficiency requirements are 4% to 5% better than current DOE and ASHRAE requirements. The DOE requirement does not align with NJCEP or ASHRAE energy factor requirements for systems less than 50 gallons. NJCEP and ASHRAE separates gas fired storage water heaters into the following categories: NJCEP ASHRAE <50 gallons >/= 20 gallons; </= 75 MBH >50 gallons, <300 MBH <4000 (Btu/h)/gal; >75 MBH 300 to 1,500 MBH >1,500 MBH to 4,000 MBH Refrigeration The DOE appliance standards have different requirements for commercial refrigeration depending on the size, orientation or presence of doors, and type of doors. There are no ASHRAE requirements. NCJEP requires that commercial refrigerators meet ENERGY STAR Version 2.0 specifications, which allow for a maximum kwh per day based on the volume of the equipment. There are four size categories based on volume, each with an equation used to calculate the allowed kwh per day of an individual unit. DOE standards also provide an equation to calculate the allowed kwh per day based on volume, but only have one equation for all size categories. The next DOE requirement update will be in effect in DOE separates requirements based on being selfcontained or remote condensing. DOE requirements for remote condensing units with transparent doors are based on Total Display Area, whereas Energy Star only references volume and does not separate for condensing type. Common commercial refrigerator sizes with transparent doors (in cubic feet) are 6.5, 12, 19, 23, 35, 49, and 72.

9 In comparison to 2012 DOE requirements, Energy Star 2.0 requirements are more stringent than DOE requirements for equipment 19 cubic feet or less, but are less stringent for units larger than 19 cubic feet. In comparison to 2017 DOE requirements, Energy Star 2.0 requirements are less stringent than by an average of 31% across all equipment sizes HVAC VFDs The NJCEP C&I New Construction and Retrofit program currently provides incentives for the following HVAC Variable Frequency Drives (VFD) components: Variable Air Volume added to existing VAV HVAC systems VFDs for existing Constant Volume HVAC systems Chilled Water Pumps Cooling Tower Fans Boilers ASHRAE has no requirements for VFDs for existing constant volume HVAC system, but do have requirements for VAV fan control, cooling tower fans, chilled water pumps, and boilers, as follows: VAV Fan Control PartLoad Fan Power Limitation for individual VAV fans with motors 7.3 kw and larger Cooling Tower Fan Speed Control, for each fan powered by a motor of 5.6 kw or larger Chilled Water and Boiler pumps, Hydronic Variable Flow Systems requirements to modulate fluid flow for motors exceeding 37 kw. ASHRAE did not change the requirements for VAV part load fan controls and cooling tower fans, but did add requirements for VFDs for existing Constant Volume HVAC systems and Chilled Water Pumps. The Hydronic Variable Flow Systems (chilled water and boiler) requirements were modified, but not in a way that impacts the program requirements. ASHRAE added requirements for cooling system fan airflow controls to vary the indoor fan airflow as a function of load that may impact the program requirements or limit rebates and incentives, based on system type and control strategy Motors ASHRAE has no requirement that directly impacts the program requirements for premium motors. There is no change to ASHRAE ASHRAE adds requirements for fractional Horsepower Fan Motors to have a minimum motor efficiency of 70% when rated in accordance with DOE 10 CFR 431. However, this should have no impact on the premium motors in refrigerated/freezer cases. 7.2 Lighting ASHRAE is the current energy code in New Jersey. This code has been superseded by two newer versions, 2010, and 2013, so there is reason to assume that the state may need to update to a more recent version of ASHRAE 90.1.

10 There are several code requirement changes that would significantly impact the program. The first and most important for lighting programs is the reduction of the threshold for code compliance in retrofit or renovation work. The 2007 code requires a change to 50% of the lighting equipment to trigger the new code, but subsequent code versions have the threshold set to 10%, and lamp and ballast retrofits are specifically cited as being included in the fixture count to trigger the code change. This change is likely to force a second baseline on the project, both for baseline energy consumption and controls requirements. Instead of using the previous building power density, the code trigger will force the baseline to be the current adopted code Lighting Power Density (LPD) values, which may be considerably lower than the existing building, and much harder to achieve substantial gains against. Second, it will likely require more lighting controls than the existing building had, eliminating some potential program incentive opportunities. Since this code trigger change is a wide coverage issue, it pertains to a whole variety of changes in the baseline that will result in a large impact compared to any single code line item change. Another change in the code is reductions to the LPD allowance tables. This is very difficult to characterize, because in some cases the LPD values drop, and in other cases they have risen some. However, the majority have dropped, with some representative samples being: Space Type Classroom Dining Area Family Gymnasium Exercise Library Reading Room Manuf. High Bay Office Open Plan Note that the Library Reading Room increased from 2010 to It is not unique in this respect. Of the many other changes in the code that may occur if the 2007 version of ASHRAE is updated to the 2010 or 2013 version, the introduction of daylighting requirements is likely to have an impact in both the baselines, and the ability to offer prescriptive measures in the lighting program. Once again, this will also be triggered by the retrofit requirements at much lower thresholds than before. Changing the code to a newer version of 90.1 will impact several programs in New Jersey. Several of the specific line items in the SmartStart program may have to be eliminated or reevaluated (occupancy sensors and daylight sensor incentives) because most of these areas are now required under the newer codes. However, since there are still areas that do not require these devices (where they will still be effective controls measures), it might be possible to modify the conditions of the application to exclude the code required areas. These changes will also impact the Pay for Performance program because it uses the LPD values in 90.1 to establish the 15% threshold below. The Direct Install program will also be impacted by these changes.

11 The following table provides details of specific code sections and the impact updates to the new code would have on the program.

12 Lighting Code Impact of Adopting ASHRAE or Section Description ASHRAE ASHRAE ASHRAE Impact NJ Program Notes Alterations Threshold: 50% of equipment Threshold: 10% of equipment Threshold: 10% of equipment High This is a major impact. It results in code compliance requirements to be reviewed when only a small portion of the building is being affected, even if SF or walls are not being moved. "Lamps plus Ballasts" retrofit triggers code "Lamps plus Ballasts" retrofit triggers code High This is a major impact. It defines a ballast and lamp replacement as an event that will trigger code Interior Lighting Power Interior lighting power Table Representative values: Office Enclosed 1.1 Office Open plan 1.1 Lobby 1.3 Retail Sales 1.7 Interior lighting power Table Representative values: Office Enclosed 1.11 Office Open plan 0.98 Lobby 0.90 Retail Sales 1.68 Interior lighting power Table Representative values: Office Enclosed 1.11 Office Open plan 0.98 Lobby 0.90 Retail Sales 1.44 Med The LPD values have become increasingly tighter with each code revision, but the tightening is not uniform, so it will be difficult to characterize without setting up a representative sample. The introduction of the PAF table (Table 9.6.3) is a good benefit for the programs, because the allowance will take back some of the tighter LPD requirements, which should provide a bit higher baseline for the programs.

13 Description ASHRAE ASHRAE 90.1 Section 2010 ASHRAE Impact NJ Program Notes Lighting Control Any automatic control device shall either be manualon or autoon to maximum of 50% power except in listed spaces: corridors, restrooms, primary building, entrances, areas where safety is a concern This requirement has been moved to Table 9.6.1, but for the most part, is functionally equivalent to The list excepted are (plus previous list): Healthcare Facility High This has a large benefit because it establishes a baseline of lighting control that is higher than simple timeclock controls, in particular, it makes the lighting be humanactivated, rather than simply from a TC. In most cases, an occupancy sensor will satisfy this requirement, if it is manualon or partialon only Lighting Control Automatic Lighting Shutoff Building shutoff controls required over 5,000 sf. Time Clock, Occ. Sensor Building of any size require controls to shutoff lighting in all spaces. Time Clock or Occ. Sensor. Buildings of any size require controls, based on the specifics of the space type. Time Clock or Occ. Sensor. Low This requires that all buildings have controls. It is not clear how this exactly overlaps with the Space controls requirements. I believe that the space control requirements will essentially satisfy this requirements as well, but there is the issue of egress lighting that is not clearly defined Space Control Occupant Sensor is required in listed spaces: classrooms conference/meeting rooms employee lunch and break rooms Occupant Sensor is required in listed spaces (plus previous list): storage/supply rooms between 50 and 1000 sf. Copy rooms office spaces up to 250 sf restrooms dressing, locker, fitting rooms This requirement has been moved to Table 9.6.1, but for the most part, is functionally equivalent to Low There is a short list of spaces where OS's are required. This has not changed substantially in the newer versions of the code, but how they are activated has changed.

14 Description ASHRAE ASHRAE 90.1 Section 2010 ASHRAE Impact NJ Program Notes Except for those spaces listed directly above, all controls shall be at least either manual or automatically sensing occupants, and shall have at most a 2hour manual override. Except for those spaces listed directly above, all controls shall be at least either manual or automatically sensing occupants, and shall have at most a 2hour manual override. High "This is the requirement that the sensors must be manualon or partialon for most spaces. This means there must be some multilevel capabilities in many spaces, because manual ON is not viable in a lot of spaces. The programs need to clarify that the devices in the program must meet the manualon or partialon requirements." NA Parking Garage Lighting Control Parking Garage lighting control requirements added: 30% reduction when no activity for 30 minutes. Parking Garage lighting control requirements added: 30% reduction when no activity for 20 minutes. Low Some kind of bilevel controls are required in parking garages. This may have a large impact if a lot of garages are being done in the programs now. The power to any luminaire within 20' of the perimeter shall be automatically "reduced" by photocell if the wall has a WWR of.4. The power to any luminaire within 20' of the perimeter shall be automatically "reduced" by photocell if the wall has a WWR of.4. Low New requirement for daylight controls in the garage to turn off lights in perimeter zones. May have a large impact if the programs have a lot of parking garages.

15 Description ASHRAE ASHRAE 90.1 Section 2010 ASHRAE Impact NJ Program Notes NA Daylighting Controls Primary Sidelighted Areas When the combined primary sidelighting area is > 250 sf, the general lighting must be separately controlled by at least one multilevel photocontrol. Must provide control step in the 5070% range, plus one no greater than 35%. OFF is considered to meet the "under 35%" requirement. Exceptions available for geometry issues. When the combined primary sidelighting wattage is > 150W, the general lighting must be separately controlled by at least automatic photocontrol. When the combined primary and secondary sidelighting wattage is > 300W, the general lighting must be separately controlled by at least automatic photocontrol. Must provide control step in the 5070% range, plus one between 2040%, plus OFF. Exceptions available for geometry issues. High Daylighting requirements will eliminate the primary benefit that daylight controls have in a program.

16 Description ASHRAE ASHRAE 90.1 Section 2010 ASHRAE Impact NJ Program Notes NA Daylighting Controls Toplighted Areas When the When the combined combined toplighting area is toplighting > 900 sf, the wattage is > general lighting 150W, the must be general lighting separately must be controlled by at separately least one controlled by at multilevel least one photocontrol. multilevel Must provide photocontrol. control step in Must provide the 5070% control step in range, plus one the 5070% no greater than range, plus one 35%. OFF is between 2040%, considered to plus OFF. meet the "under Exceptions 35%" available for requirement. geometry issues. Exceptions available for geometry issues. Low This may not have a huge impact unless there is a lot of skylighting that is being retrofitted Tandem Wiring Luminaires greater than 30W shall be tandem wired when two or more are in a space on a single control. With exceptions. Controlled lighting all have at least one control step between 30% and 70% of full lighting power. With exceptions for corridors, small spaces, and low LPD spaces. Controlled lighting all have at least one control step between 30% and 70% of full lighting power. With exceptions for corridors, small spaces, as found in Table Low No anticipated impact.

17 Description ASHRAE ASHRAE 90.1 Section 2010 ASHRAE Impact NJ Program Notes Exterior Building Lighting Power Exterior lighting power Table Representative values: Uncovered parking 0.15 Building grounds plaza 0.2 Building entrances Main 30 w/l.f. Outdoor Sales 0.5 Addition of the Lighting Zone concept to the code, and inclusion of recommended LPD values for each LZ. Exterior lighting power Table Representative values for LZ3: Uncovered parking 0.10 Building grounds plaza 0.16 Building entrances Main 30 w/l.f. Outdoor Sales 0.5 Functionally similar to Exterior lighting power Table Representative values for LZ3: Uncovered parking 0.10 Building grounds plaza 0.16 Building entrances Main 30 w/l.f. Outdoor Sales 0.5 Med LPDs have reduces for exterior lighting. LEDs are likely to be able to beat these values considerably, so there may be some good opportunities regardless Exterior Building Grounds Lighting Luminaires over 100W shall contain lamps having at least 60 lumens per watt unless the light is controlled by a motion sensor or other exemptions. Low No anticipated impact Exterior Lighting Control Automatic controls Automatic required for dusktodawn operation. for dusktodawn controls required operation. Automatic controls required for dusktodawn operation. Low No anticipated impact. TimeClock and PC or Astro TC required for partnight operation designated areas. Low No anticipated impact.

18 Description ASHRAE ASHRAE 90.1 Section 2010 ASHRAE Impact NJ Program Notes Building facades and landscape lighting shall be turned off between midnight or business closing and 6AM. Building facades and landscape lighting shall be turned off between midnight or business closing and 6AM. Low No anticipated impact. All lighting other than that listed directly above must be set to reduce power by 30% during the late night period, or when no activity is detected after 15 minutes. All lighting other than that listed directly above must be set to reduce power by 30% during the late night period, or when no activity is detected after 15 minutes. Med This may be a big impact for exterior spaces. May require a sensor system to effectively comply, but it appears that a 'partnight' lighting approach will effectively do this as well. Comment [JB1]: These tables should be added to an appendix CHANGING BASELINES IMPACTS ON PROGRAM In this document we provide an estimate of the impact based on an overall whole building energy performance basis and overview of the HVAC and Lighting program elements that may be impacted by an update to the state building energy code. We compared the current and expected updates for each appliance and evaluated how each update impacts the current program efficiency requirements and savings. For the Pay for Performance Program, the baseline against which a proposed project is compared will be affected by these updates; therefore, in order to be eligible, projects may need to install higher efficiency appliances to reach the program threshold saving requirements. 8.1 Whole Building Energy Performance This section presents the estimate of energy use reductions for moving from ASHRAE to 2010 and 2013 and the supporting calculations. The analysis is based on data provided in two DOE/PNNL reports. CostEffectiveness of ASHRAE Standard for the State of New Jersey, November 2013 (PNNL23002) ANSI/ASHRAE/IES Standard Preliminary Determination: Quantitative Analysis, March 2014 (PNNL23236) The table below shows:

19 an average (nonweighted) improvement of 16% moving from 2007 to 2010, with a range of 7% 24% depending on building type. an average improvement of 22% moving from 2007 to 2013, with a range of 12%35% depending on building type. kbtu/sfyr Savings from '07'10 Savings from '07'13 NJ 2007 NJ 2010 NJ 2013 % savings kbtu/sfyr kbtu/sfyr % savings Small Office % % Large Office % % StandAlone Retail % % Primary School % % Small Hotel % % Midrise Apartment % % average 16% 22% The methodology of how these savings were determined is presented below. The first step provided the PNNL NJspecific comparison of ASHRAE to The second step looked at the PNNL national comparison of 2010 to The third step made a translation from the national comparison to New Jersey to estimate the impact of moving from 2007 to The analysis in each step is based on the simulated energy consumption (site EUI, kbtu/sfyr) for various building types for the different versions of the code. The analysis provides the site kbtu/sfyr difference and the percent difference of the two versions of the code. The two PNNL reports presented information for a different set of building types. We present the information from both reports for easy reference to the appropriate tables in these reports. The table below shows the NJspecific comparison of ASHRAE to The PNNL analysis was done for two climate zones representing NJ. For simplicity, we used the straight average of the two to estimate state impacts. The light blue shaded cells are calculated from the data pulled directly from the PNNL report.

20 CZ 5A Allentown PA Base Code: Total Savings % Savings CZ 4A Newark Base Code: Savings % Savings Small Office kwh/sfyr % kwh/sfyr % therms/sfyr % therms/sfyr % Average % Savings (statewide) Totals, kbtu/ft % Totals, kbtu/ft % 18.5% Large Office kwh/sfyr % kwh/sfyr % therms/sfyr % therms/sfyr % Totals, kbtu/ft % Totals, kbtu/ft % 11.8% StandAlone Retail kwh/sfyr % kwh/sfyr % therms/sfyr % therms/sfyr % Totals, kbtu/ft % Totals, kbtu/ft % 24.1% Primary School kwh/sfyr % kwh/sfyr % therms/sfyr % therms/sfyr % Totals, kbtu/ft % Totals, kbtu/ft % 23.9% Small Hotel kwh/sfyr % kwh/sfyr % therms/sfyr % therms/sfyr % Totals, kbtu/ft % Totals, kbtu/ft % 7.0% Midrise Apartment kwh/sfyr % kwh/sfyr % therms/sfyr % therms/sfyr % Totals, kbtu/ft % Totals, kbtu/ft % 8.0% average 2007 average 2010 average savings

21 This table shows the national average site EUI for the 2010 and the 2013 standards as well as the percent by building type. National average (site EUI) to 2013 % Savings Small Office % Med Office % Large Office % StandAlone Retail % Strip Mall % Primary School % Secondary School % Small Hotel % Large Hotel % Midrise Apartment % Highrise Apartment % To translate the national level information to New Jersey, we applied the national average percent savings between 2010 and 2013 to the NJspecific 2010 EUIs from above to estimate a NJspecific 2013 EUIs by building type. We then calculated the EUI and percent difference between 2007 and 2013, shown here as blue highlight. kbtu/sfyr NJ 2007 NJ 2010 NJ 2013 savings from '07'10 savings from '07'13 % savings kbtu/sfyr kbtu/sfyr % savings Small Office % % Large Office % % StandAlone Retail % % Primary School % % Small Hotel % % Midrise Apartment % % average 16% 22%

22 8.2 HVAC The following table depicts the NJCEP threshold efficiency margins compared with the three ASHRAE Standards. For example, for Unitary AC and Split Systems less than 5.4 tons in size, there was a 1 EER margin between the NJCEP efficiency and ASHRAE 2007 (or 8% of the ASHRAE 2007 Standard). If all of the units of this type and size enter the program at the minimum program efficiency (14 EER), and ASHRAE 2013 is used as the baseline, then half of the program savings currently claimed would be lost because the 2013 baseline is 13.5 EER. For unitary and split systems between 5.4 and tons, all of the savings would be lost, because the ASHRAE 2013 minimum efficiency is above the minimum program efficiency. Gray cells values indicate no difference from ASHRAE Comment [JB2]: Add to appendix Technology Classification / Size Unitary AC and Split Systems ASHRAE 90.1 EER NJCEP Threshold Incentive Margin (EER) EER 2007 % 2010 % 2013 % < 5.4 tons % 1.0 8% 0.5 4% 5.4 to < tons % 0.4 4% % to < 20 tons % 0.6 6% 0.8 7% 20 to 30 tons % 0.6 6% 1.0 9% Air to Air Heat Pumps < 5.4 tons % 1.0 8% 0.0 0% 5.4 to < tons % 0.4 4% 0.6 5% to < 20 tons % 0.9 8% 0.0 0% 20 to 30 tons % % 0.0 0% Packaged Terminal AC & HP < 9,000 BTUH % % % 9,000 to 12,0000 BTUH % % % > 12,000 BTUH % 0.7 8% 0.7 7% Central DX AC Systems 30 to 63 tons % 0.2 2% % > 63 tons % 0.0 1% % Water Source Heat Pumps % 1.0 8% 0.3 2%

23 Similar margins are shown below for chiller efficiency values. (ASHRAE Standards and NJCEP thresholds are not presented for simplicity, but are available for reference in the table in Section 7). As an example, for a Displacement Chiller between 150 and 300 tons in capacity at Full Load, there was a 0.16 kw/ton margin between the NJCEP efficiency and ASHRAE 2007 (or 22% of the ASHRAE 2007 Standard). If all of the units of this type and size enter the program at the minimum program efficiency (0.56 kw/ton), and ASHRAE 2013 is used as the baseline, then onefifth of the program savings currently claimed would be lost (going from a 22% margin to an 18% margin). Gray cells values indicate no difference from ASHRAE 2007.

24 Type Size % % Air Cooled Water Cooled, Displace ment Water Cooled, Centrifu gal Incentive Margin (kw/ton and %) Max Min Maximum Minimum Maximum Minimum A % B % A % B % A % B % A % B % < 150 FL % % % % % % % % > 150 FL % % % % % % % < 75 FL % % % % % % % % 0 0% % 75 <, < 150 FL % % % % % % % % % 0 0% 150 <, < <, < 600 > 600 < <, < <, < <, < 600 FL % % % % % % % % % % IPLV % % % % % % % % % 0.06 FL % % % % % % % % % % IPLV % % % % % % % % % 0.05 FL % % % % % % % % % % IPLV % % % % % % % % % 0.08 FL % % % % % % % % % 14% 12% 21% % FL % % % % % % % % % % IPLV % % % % % % % % % 0.1 FL % % % % % % % % % % IPLV % % % % % % % % % 0.07 FL % % % % % % % % % % IPLV % % % % % % % % % 0.08 > 600 FL % % % % % % % % % % 25% 18% 21%

25 Type Size % % Incentive Margin (kw/ton and %) Max Min Maximum Minimum Maximum Minimum A % B % A % IPLV % % % % % 0.06 B % A % B % A % 15% % % % 0.08 B % 21%

26 8.3 Lighting Federal Standards Updates Impact There have been no recent changes to the minimum performance requirements for incandescent, HID, general service fluorescent, or PAR and R lamps due to either EISA 2007 or DOE There are also no known planned changes to these lamp performance requirements in the next four years. The DOE is working on a revision to the DOE 2009 standards, but once accepted, it will not become in effect for four years beyond the acceptance date to provide the manufacturers time to ensure the supply chain is available to meet the requirements. The impact of the previous increases in the efficacy requirements from EISA 2007 and DOE 2009 will be felt over time in the baseline calculations that are made to determine the delta watts from an incumbent technology to a high efficacy product as part of a lamp replacement program. These impacts should affect the calculation of the energy savings associated with any lighting retrofit, and will likely impact the incentive levels set for prescriptive measures in SmartStart or Direct Install program primarily. They should not directly impact any program that compares the final building performance against the code as a baseline (Pay for Performance). The impact to the lighting baseline calculations will be gradual as old lamps expire and the new lamps move into larger market share. These impacts are normally defined as part of a market baseline evaluation study.