Loading...
HomeMy WebLinkAboutEnergy Efficient Renovations Packet Staff Memo to the Sustainability Commission Date: 15 October 2024 Subject: Existing Home Energy Efficiency Ordinance From: Office of Sustainability Summary The Sustainability Department would like to provide an update toward the goal to develop an ordinance to require homes built before 2011 undergoing renovations to make certain targeted energy efficiency upgrades as mentioned in the 2021 Climate Action Roadmap. This memo highlights staff’s work developing program and the next steps the City could take to achieve the goal. Recommendation Create and add an ordinance to create a new section, 8.04.066, in the Palm Springs Municipal Code requiring single family buildings built before 2011 undergoing additions, alterations or remodels to make certain targeted energy efficiency upgrades. This ordinance will be a “reach code” - a local building energy code that “reaches” beyond the state minimum requirements for energy use in building design and construction. Background The Warren-Alquist Act authorizes the California Energy Commission (CEC) to adopt rules and regulations, as necessary, to reduce the inefficient consumption of energy and water in newly constructed buildings and certain additions and alterations to existing buildings. One of the ways the CEC satisfies this requirement is through the California Energy Code . The Energy Code includes all the energy efficiency requirements applicable to newly constructed buildings and additions and alterations to existing buildings. As a portion of the California Building Code (Title 24), the Energy Code (Title 24, Part 6) follows the same three-year update cycle. 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 (B SC). Homes in Palm Springs have been built over the years to meet the applicable energy -related building codes, which were first put in place in 1978. Since then, new homes have gotten healthier and more efficient while some existing homes, particularly those b uilt before 2011 that represent most of the Palm Springs housing stock, have been left behind. The city has over 10,000 residential buildings built before 1978. 8,000 between 1978-1991, 4,000 between 1992 - 2010, and 1,000 2010 to present. To help address this dichotomy, this proposal would require single -family homes built before 2011 undergoing additions, alterations, or remodels to make certain targeted upgrades, where applicable and feasible, to bring them closer to the provisions of the 2022 California Energy Code which went into effect on January 1, 2023. The ordinance is also tailored to the requirements of the 2025 California Energy Code, which the CEC adopted on September 11, to be effective on January 1, 2026. The City Council and Sustainability Commission dire cted City staff to investigate such an ordinance as part of the 2021 Climate Action Roadmap. Staff have collaborated with former Commissioner and current CVAG/Inland Regional Energy Network (I- REN) Program Manager David Freedman to develop a responsive ordinance draft. This ordinance would also align with our 2016 Sustainability Master Plan as it will contribute to the following goals: • reduce GHG emission by 80% from our 1990 levels • encourage one million sq feet of green buildings • help PS become more climate resilient - efficient homes are better able to withstand extreme temperatures and use less energy. The ordinance would also align with the Safety Element of the Palm Springs General Plan scheduled for adoption by City Council at its November 12 meeting, which sets a goal of making Palm Springs a community resilient to climate-change-related hazards. Additionally, the California Air Resources Board is required to ensure that statewide GHG emissions are reduced at least 40 percent below 1990 levels by December 31, 2030, and 85% below 1990 levels by 2045. According to our 2018 GHG Inventory, residential buildings make up 25% of our GHG emissions just behind Transportation with 45%, meaning that action to reduce emissions from residential buildings will be essential to achieving our compliance goals Staff Analysis Reach Codes Enacting a reach code that requires upgrades at the point of renovation or alteration is one of the few ways to improve energy efficiency and reduce carbon output of existing buildings. These energy saving improvements are something any home can benefit from, but because newer homes have already been built to meet more recent Energy Codes, the focus of this proposal is single-family homes built in Palm Springs before 2011 that are doing additions, alterations or remodels that trigger the need for a building permit. Potential examples of what projects would need to comply are: • Adding square footage • Adding windows and doors • Moving interior walls • Reroofing • Electric panel upgrades • Kitchen / bath / laundry room remodels • HVAC modification or replacement • Solar PV or thermal installation These projects would NOT trigger this requirement: • Projects that are medically necessary • Repairs to existing equipment • Additions, alterations, or remodels to homes built after 2010 • Accessory Dwelling Units • Projects in mobile homes, manufactured housing, or factory -built housing The ordinance as currently drafted also proposes that residents receiving the CARE/FERA discounted rates for electricity will be exempted from the requirements of the reach code. The reach code also only applies to single-family, not multi-family, housing as drafted. Counties, cities, and towns throughout California are actively implementing or exploring the ordinances similar to ours. Marin County has adopted Ordinance No. 3776 and the Town of Corte Madera has implemented Ordinance No. 1040. Both of these ordinances base their requirements or triggers on additions and alterations to existing single - and two-family residential buildings that are 750 square feet or large, while our ordinance will be based on project value of additions and alterations to existing single-family residential buildings. Requirements Based on the type and value of the building permit and year in which the home was built, different energy saving measures would be required. LED lighting and photosensors would be required (if not already installed) regardless of permit value. Qualifying projects having a permit value of at least $10,000 would also be required to install the water heating package , consisting of hot water pipe insulation and shower and sink fitting upgrades . In addition to those required measures, residents will have flexibility of which additional measures they want to combine. Measures fall roughly into two categories – energy efficiency and reduction in fossil fuel use. Especially in our harsh desert climate, improving the energy efficiency of older buildings is paramount to make sure that energy bills and energy demand can be controlled. Efficiency a nd fossil fuel reduction measures will improve thermal comfort in the buildings, improve indoor air quality, and, as is discussed in more detail below the table, save money over time. Table 1 - Additional Measures Air Sealing R-38 Attic Insulation R-49 Attic Insulation Duct Sealing New Ducts, R-6 Insulation + Duct Sealing New Ducts, R-6 Insulation + Duct Sealing Windows Wall Insulation R-19 Raised floor insulation R-30 Raised floor insulation Cool Roof Radiant Barrier Under Roof Heat Pump Water Heater Replacing Gas High Eff. Heat Pump Water Heater Replacing Gas Heat Pump Water Heater Replacing Electric High Eff. Heat Pump Water Heater Replacing Electric Heat Pump Space Conditioning System High Eff. Heat Pump Space Conditioning System Dual Fuel Heat Pump Space Conditioning System Heat Pump Clothes Dryer Induction Cooktop Solar PV Electric-Readiness- Service Upgrade Electric-Readiness- End Uses Under Section 10-106 of the Energy Code, local jurisdictions adopting reach codes 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 the Energy Code. Cost- effectiveness is based on the 2022 Cost-effectiveness Study: Existing Single Family Building Upgrades prepared for the California Codes and Standards Reach Codes program of the state’s three investor-owned utilities. Data specific for Palm Springs are derived from the program’s online Cost-Effectiveness Explorer. The Cost-Effectiveness Explorer produces a target metric that represents a user -defined fraction of the total site energy savings for all cost-effective retrofit measures – the Target Score. The Explorer also produces a table of all available measures, incl uding those that are not cost-effective, that are weighted using the same site energy metric. Using these values, specific to each home vintage, an applicant may install any combination of efficiency, solar and electrification measures that meet or exceed the target value. The study supports separate Target Scores for three different vintages, all of which are pre -2011. Please see the Ordinance Summary for more details on the scores and measures. Impacts Based on a review of recently issued building permits, approximately 50-60% are qualified for additional measures under the current the proposed ordinance. This figure aligns with th e estimates made by our building leadership. Of those qualified permits, 40-50% are for homes built pre-1978. The following tables outline the potential annual bill savings and GHG emission reductions for the estimated numbers of qualified home projects: Table 2 – Estimated Minimum Annual Bill Savings & GHG Emission for Pre-1978 Homes Permit Value Number of home projects Measures Annual Bill Savings Total GHG Emission Reduction (MTCO2e/year) $10,000- $24,999 500 Lighting and Water Heating Package $0 42 $25,000-$49,999 250 +16 point of additional measures $1,500 46 $50,000-$99,999 125 +32 point of additional measures $3,000 48 $100,000+ 5 +48 point of additional measures $4,400 3 Table 3 – Estimated Minimum Annual Bill Savings & GHG Emission for 1978-1991 Homes Permit Value Number of home projects Measures Annual Bill Savings Total GHG Emission Reduction (MTCO2e/year) $10,000- $24,999 400 Lighting and Water Heating Package $0 33 $25,000-$49,999 200 +12 point of additional measures $1,000 37 $50,000-$99,999 100 +25 point of additional measures $1700 38 $100,000+ 5 +37 point of additional measures $3400 20 Table 4 – Estimated Minimum Annual Bill Savings & GHG Emission for 1992-2011 Homes Permit Value Number of home projects Measures Annual Bill Savings Total GHG Emission Reduction (MTCO2e/year) $10,000- $24,999 200 Lighting and Water Heating Package $0 17 $25,000-$49,999 100 +6 point of additional measures $500 37 $50,000-$99,999 50 +12 point of additional measures $1000 14 $100,000+ 5 +17 point of additional measures $800 1 Based on an asse ssment from these tables of homes by building vintage and permit value, we can project a total minimum reduction of 336 MTCO2e per year. This reduction is equivalent to: • Avoiding the GHG emission from 106 tons of waste that would otherwise by recycled or landfilled, or • Removing 80 gas-powered passenger vehicles from the road per year. If we assumed a similar pace of projects over 10 years, the collected emissions reductions would represent just under 1% of the estimated 2020 emissions from Palm Springs. Implementation Considerations This ordinance will impact residents/residential building owners, contractors, and City staff. Residents and building owners are likely to incur additional cost if their initial retrofit project triggers the ordinance. While all measures are cost-effective, meaning that they pay for themselves over time via savings, many building owners are price -sensitive when implementing a new project. Benefits will need to be clearly communicated, especially for more expensive packages, and supporting resources will need to be available to help with compliance. Contractors and staff will need additional training and clarification of the ordinance to effectively communicate the components of the ordinance and to support the benefits of implementing these changes in buildings. Residents will need help identifying which packag es make sense for them, and contractors represent their primary source of advising and guidance on many projects of this scale. We can consider a few different resources that might help fill some of these gaps: • Federal, state, and local rebates are available for certain types of equipment that can be used to comply with the ordinance including heat pumps and heat pump water heaters. [insert current rebate value]. Rebates are generally not available for things like LED lighting or insulation, but depending on a building owner or tenant’s income level, weatherization programs might be available to assist with some funding for these types of measures. • The Sustainability Department still offers a scholarship program which currently includes a $100 rebate for a qualifying home ener gy audit. While energy audits are not required under the reach code, they can be very helpful in identifying which types of work will most benefit a particular home. We can consider adding to or making changes to the scholarship program to support the ordinance and would welcome recommendations from the Subcommittee. • Training is available via I-REN for contractors and Building department staff. We would plan to supplement this with our own resources and are consulting with the Building department to identify the best ways to support them as the ordinance goes into effect. Training courses are also available from the College of the Desert. To ensure that the codes create d would have minimal negative impact on stakeholders and to ensure that there is a positive impact for community members, we are actively holding consultative meetings over the next quarter with entities such as the Sustainability Commi ssion, the Building Department, Public Works, Homeowners, Local contractors, and any others who are interested the matter. These meetings will help us refine the potential ordinance and support programs to maximize benefit and minimize cost while also building support for the new initiative. Next Steps Following input from the Subcommittee, staff are presenting the ordinance concept to the Commission at its October 15 meeting. If the Commission so recommends, once a full draft has been reviewed by the City’s legal team, the ordinance text will return to the Commission for review and approval and, if approved, will be presented to City Council for consideration . Following adoption of the ordinance by City Council, the City must obtain approval from the CEC and file the ordinance with the Building Standards Commission for the ordinance to be legally enforceable. Conclusion As many buildings in Palm Springs were built long before an Energy Code was ever conceptualized, the Sustainability Department would like to push forward its pursuit of improving the livability of our aging homes. Updating and expanding our current energy regulations for aging single-family buildings will lower energy bills, create a more comfortable house that is better adapted to extreme heat, and lower our individual and collective carbon footprint. Livable and climate-smart homes are an essential component of our sustainable future. Appendix A – Ordinance Framework Summary Appendix B - Single Family Residential Building Cost-Effectiveness Explorer – Palm Springs Possible Palm Springs Existing Home Energy Efficiency Ordinance – Or, “Energy Efficient Renovations” Overview: An ordinance of the City of Palm Springs, California, adding section 8.04.066 of the Palm Springs Municipal Code to require single family buildings built before 2011 undergoing additions, alterations or remodels to make certain targeted energy efficiency upgrades. This ordinance will be a reach code - a local building energy code that “reaches” beyond the state minimum requirements for energy use in building design and construction . Main concept: The permit amount of an alteration to a home will require or “trigger” Energy Efficient (EE) measures. Background: From our 2020 GHG Inventory, residential buildings make up 2 2.6% of our GHG emissions. This was a suggested action in our 2021 Climate Action Plan. In the 2016 Sustainability Plan, established a vision that Palm Springs is resilient and carbon neutral and set the following goals: • reduce GHG emission by 80% from our 1990 levels • encourage one million sq feet of green buildings • reduce energy and carbon use from new homes and buildings • supply 50% of energy from renewable sources by 2030 • help PS become more climate resilient - efficient homes are better able to withstand extreme temperatures and use less energy Additionally, the California Air Resources Board is required to ensure that statewide GHG emissions are reduced at least 40 percent below 1990 levels by December 31, 2030, and 85% below 1990 levels by 2045 through AB 1279. As every city is unique in terms of the climatic, geologic, and topographical conditions, amending the California Energy Code to fit local needs would be reasonable. Enacting a reach code of this type is one of the few ways (other than bans on connections, sale of appliances, etc.) to improve energy efficiency and reduce carbon output of existing buildings. Key Provisions and Implications: A section will define a Covered Single -Family Project as a project that was constructed before 2011 has been permitted for any of the following: • Any additions, or any change, rearrangement or addition, other than a repair, of the structural elements of an existing building including foundations, footing, sub - floors, lintels, beams, columns, girders, slabs, roof trusses, staircases, load bearing walls, door frames, window frames, or any other part of the building that resists force or moment. • Change or rearrangement of the plan configuration of walls and full -height partitions of an existing building. • Modification of the electrical system, heating or cooling equipment or gas plumbing The exceptions include the following: • Specific house conditions like historic preservation design guidelines • HOA covenant/deed restrictions on the property • Mobile Homes, Manufactured Housing, or Factory-built Housing • Individuals who receive CARE/FERA via the utilities • building vintage reclassification • medically necessary improvements or solely of seismic safety improvements , etc. Based on the permit value, you have to do the mandatory measures plus a combo of additional measures as long it totals the minimum points. It will give flexibility to residents of which additional measures they want to combine. Additional measures include Air Sealing, R -49 Attic Insulation, Duct Sealing, New Ducts, R-6 Insulation + Duct Sealing, New Ducts, R -8 Insulation + Duct Sealing, Windows, Wall Insulation, Cool Roof, Heat Pump Water Heater Replacing Gas, High Efficiency Heat Pump Water Heater Replacing Gas, Heat Pump Water Heater Replacing Electric, High Efficiency Heat Pump Water Heater Replacing Electric, Heat Pump Space Conditioning System, High Efficiency Heat Pump Space Conditioning System, etc. These measures will have different value points based on cost- effectiveness and GHG emission reduction. Table 150.0-I Target Score Building Vintage Pre-1978 1978 - 1991 1992 - 2010 Permit Value Target Score All Projects LED + Photosensors LED + Photosensors LED + Photosensors $10,000 - $24,999 + Water Heating + Water Heating + Water Heating $25,000 - $49,999 + Water Heating & 16 points + Water Heating & 12 points + Water Heating & 6 points $50,000 - $99,999 + Water Heating & 32 points + Water Heating & 25 points + Water Heating & 12 points $100,000 + + Water Heating & 48 points + Water Heating & 37 points + Water Heating & 17 points Table – Proposed Measure Scores Table 150.0-J: Measure Menu Building Vintage Table 150.0-K ID Measures Pre-1978 1978 - 1991 1992 - 2010 E1 Lighting Measures Mandatory E2 Water Heating Package Mandatory for all projects with a permit value of $10,000 or more E3 Air Sealing 1 1 -- E4.A R-38 Attic Insulation 7 3 1 E4.B R-49 Attic Insulation 8 4 1 E5 Duct Sealing 9 10 1 E6.A New Ducts, R- 6 Insulation + Duct Sealing 17 13 5 E6.B New Ducts, R- 8 Insulation + Duct Sealing 18 14 5 E7 Windows 12 10 3 E8 Wall Insulation 5 -- -- E9 Reserved for future use -- -- -- E10.A R-19 Raised floor insulation 4 4 -- E10.B R-30 Raised floor insulation 4 4 -- E11 Cool Roof 2 2 1 E12 Radiant Barrier Under Roof 4 3 1 FS1 Heat Pump Water Heater Replacing Gas 11 11 11 FS2 High Eff. Heat Pump Water Heater Replacing Gas 11 11 11 FS3 Heat Pump Water Heater Replacing Electric 4 4 4 FS4 High Eff. Heat Pump Water Heater Replacing Electric 4 4 4 FS5 Heat Pump Space Conditioning System 2 1 1 FS6 High Eff. Heat Pump Space Conditioning System 5 3 1 FS7 Dual Fuel Heat Pump Space Conditioning System 2 1 1 FS8 Heat Pump Clothes Dryer 1 1 1 FS9 Induction Cooktop 1 1 1 PV Solar PV 17 17 17 ER1 Electric- Readiness – Service Upgrade Mandatory (see Note 2 below) ER2 Electric- Readiness – End Uses Mandatory (see Note 3 below) Note 1: Cool Roof (Measure E11) and Radiant Barrier (Measure E12) required when replacing 50% or more of an existing roof. Note 2: Electric Readiness Service Upgrade (Measure ER1) required to claim Solar PV credit. Note 3: Electric Readiness – End Uses (Measure ER2) required for the following project scopes: If the service panel is being upgraded or to claim the Solar PV credit, satisfy any [one / two] of the electric-readiness measures from ER2 in Table 150.0-K. If the kitchen is being remodeled, make the range electric ready as specified in ER2, Item D in Table 150.0-K and upgrade the panel board as specified under ER1 in Table 150.0-K. Exception: If an electrical permit is not otherwise required for the project other than compliance with this Item. If the laundry room is being remodeled, make the dryer electric ready as specified in ER2, Item C in Table 150.0 -K and upgrade the panel board as specified under ER1 in Table 150.0-K. Exception: If an electrical permit is not otherwise required for the project other than compliance with this Item. LEGAL NOTICE: This tool was prepared by Pacific Gas and Electric Company and funded by the California utility customers under the auspices of the California Public Utilities Commission. Copyright 2024, Pacific Gas and Electric Company. All rights reserved, except that information from this tool may be used, copied, and distributed without modification. 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 tool; or represents that its use will not infringe any privately-owned rights including, but not limited to, patents, trademarks or copyrights. Generated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings Cost-Effectiveness Results Summary City of Palm Springs Climate Zone 15 Single Family | Built before 1978 (12,598 units) Study Source: Existing Single Family Building Upgrades¹ | Release Date: 05/23/2024 | Newest Version | Code Cycle: 2022 Table 1 of 2 Benefit/Cost Ratios Per Home Results Measure On-Bill (2022 Esc) On-Bill (2025 Esc) 2022 TDV LSC Incremental Cost Annual Bill Savings ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective (on-bill) Heat Pump Space Conditioner --0.1 --0.4 $1,324 $8 Dual fuel heat pump space conditioner --0.3 --0.7 $1,906 $14 R-19 Raised Floor Insulation 2.5 2.8 --2.0 $3,633 $335 R-30 Raised Floor Insulation 2.5 2.8 --2.0 $4,113 $377 R-13 Wall Insulation 3.8 4.2 --2.7 $2,950 $413 R-38 Attic insulation 2.6 2.8 --1.7 $6,762 $625 R-49 Attic insulation 2.6 2.8 --1.7 $7,446 $697 Windows 2.9 3.1 --1.7 $11,463 $1,170 Radiant Barrier Under Roof (when re-roofing) 11.2 12.0 --6.5 $893 $358 Cool roof .20 Solar Reflectance 6.0 6.4 --3.3 $893 $255 Page 1 of 30 Cost-Effectiveness Results Summary City of Palm Springs - Climate Zone 15 ResultsGenerated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings Single Family | Built before 1978 (12,598 units) Study Source: Existing Single Family Building Upgrades¹ | Release Date: 05/23/2024 | Newest Version | Code Cycle: 2022 (Continued) Table 1 of 2 Benefit/Cost Ratios Per Home Results Measure On-Bill (2022 Esc) On-Bill (2025 Esc) 2022 TDV LSC Incremental Cost Annual Bill Savings ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective (on-bill) New Ducts, R-6 Insulation + Duct Sealing 10.0 10.7 --6.1 $4,808 $1,715 New Ducts, R-8 Insulation + Duct Sealing 7.8 8.3 --4.7 $6,311 $1,749 Duct sealing 9.0 9.6 --5.4 $2,590 $832 Heat Pump Water Heater 1.7 2.3 --1.7 $4,332 $510 High Eff Heat Pump Water Heater 1.5 2.0 --1.5 $5,193 $541 High Eff Heat Pump Space Conditioner 0.7 0.9 --0.8 $4,346 $222 Solar PV 3.0 3.2 --1.7 $9,608 $1,249 Air sealing 0.6 0.6 --0.4 $4,684 $99 Heat pump water heater with Elec Base 3.3 3.5 --1.1 $3,829 $732 High Eff Heat Pump Water Heater (repl electric) 2.8 3.0 --1.0 $4,690 $764 Page 2 of 30 Cost-Effectiveness Results Summary City of Palm Springs - Climate Zone 15 ResultsGenerated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings Single Family | Built before 1978 (12,598 units) Study Source: Existing Single Family Building Upgrades¹ | Release Date: 05/23/2024 | Newest Version | Code Cycle: 2022 (Continued) Table 1 of 2 Benefit/Cost Ratios Per Home Results Measure On-Bill (2022 Esc) On-Bill (2025 Esc) 2022 TDV LSC Incremental Cost Annual Bill Savings ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective (on-bill) Water Heating Package 1.4 ------$229 $0 Page 3 of 30 Cost-Effectiveness Results Summary City of Palm Springs - Climate Zone 15 ResultsGenerated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings Single Family | Built before 1978 (12,598 units) Study Source: Existing Single Family Building Upgrades¹ | Release Date: 05/23/2024 | Newest Version | Code Cycle: 2022 Table 2 of 2 Per Home Results City-Wide Estimates Measure Flexible Score Affected Units Emissions Reductions Lifecycle Savings annual energy savings (lifecycle)(lifecycle MTCOe)(on-bill) Heat Pump Space Conditioner 2 1,575 4,684 $238,292 Dual fuel heat pump space conditioner 2 1,575 4,494 $385,583 R-19 Raised Floor Insulation 4 1,575 3,127 $9,414,409 R-30 Raised Floor Insulation 4 1,575 3,525 $10,607,745 R-13 Wall Insulation 5 1,575 3,962 $11,618,140 R-38 Attic insulation 7 1,575 5,269 $17,603,584 R-49 Attic insulation 8 1,575 5,817 $19,603,735 Windows 12 1,575 7,770 $32,919,002 Radiant Barrier Under Roof (when re-roofing)4 1,575 2,612 $10,071,119 Cool roof .20 Solar Reflectance 2 1,575 1,166 $7,190,038 New Ducts, R-6 Insulation + Duct Sealing 17 1,575 11,494 $48,274,761 Page 4 of 30 Cost-Effectiveness Results Summary City of Palm Springs - Climate Zone 15 ResultsGenerated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings Single Family | Built before 1978 (12,598 units) Study Source: Existing Single Family Building Upgrades¹ | Release Date: 05/23/2024 | Newest Version | Code Cycle: 2022 (Continued) Table 2 of 2 Per Home Results City-Wide Estimates Measure Flexible Score Affected Units Emissions Reductions Lifecycle Savings annual energy savings (lifecycle)(lifecycle MTCOe)(on-bill) New Ducts, R-8 Insulation + Duct Sealing 18 1,575 11,845 $49,234,496 Duct sealing 9 1,575 5,772 $23,417,345 Heat Pump Water Heater 11 1,575 18,360 $14,348,178 High Eff Heat Pump Water Heater 11 1,575 18,610 $15,230,046 High Eff Heat Pump Space Conditioner 5 1,575 6,255 $6,250,004 Solar PV 17 1,575 10,616 $35,149,002 Air sealing 1 1,575 1,000 $2,777,884 Heat pump water heater with Elec Base 4 1,575 2,219 $20,609,440 High Eff Heat Pump Water Heater (repl electric)4 1,575 2,469 $21,492,246 Water Heating Package 1 1,575 1,336 $0 Page 5 of 30 Cost-Effectiveness Results Summary City of Palm Springs - Climate Zone 15 ResultsGenerated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings Single Family | Built from 1978 to 1991 (6,245 units) Study Source: Existing Single Family Building Upgrades¹ | Release Date: 05/23/2024 | Newest Version | Code Cycle: 2022 Table 1 of 2 Benefit/Cost Ratios Per Home Results Measure On-Bill (2022 Esc) On-Bill (2025 Esc) 2022 TDV LSC Incremental Cost Annual Bill Savings ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective (on-bill) Heat Pump Space Conditioner ------0.2 $1,324 -$75 Dual fuel heat pump space conditioner ------0.4 $1,906 -$72 R-19 Raised Floor Insulation 2.5 2.7 --1.9 $3,633 $324 R-30 Raised Floor Insulation 2.5 2.7 --1.9 $4,113 $370 R-38 Attic insulation 2.9 3.2 --1.8 $2,555 $269 R-49 Attic insulation 2.6 2.8 --1.6 $3,612 $332 Windows 2.3 2.5 --1.3 $11,463 $937 Radiant Barrier Under Roof (when re-roofing) 7.8 8.3 --4.3 $893 $248 Cool roof .20 Solar Reflectance 4.6 4.8 --2.5 $893 $193 New Ducts, R-6 Insulation + Duct Sealing 7.6 8.1 --4.6 $4,808 $1,305 Page 6 of 30 Cost-Effectiveness Results Summary City of Palm Springs - Climate Zone 15 ResultsGenerated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings Single Family | Built from 1978 to 1991 (6,245 units) Study Source: Existing Single Family Building Upgrades¹ | Release Date: 05/23/2024 | Newest Version | Code Cycle: 2022 (Continued) Table 1 of 2 Benefit/Cost Ratios Per Home Results Measure On-Bill (2022 Esc) On-Bill (2025 Esc) 2022 TDV LSC Incremental Cost Annual Bill Savings ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective (on-bill) New Ducts, R-8 Insulation + Duct Sealing 6.0 6.4 --3.6 $6,311 $1,338 Duct sealing 10.9 11.6 --6.7 $2,590 $1,004 Heat Pump Water Heater 1.0 1.6 --1.7 $4,332 $344 High Eff Heat Pump Water Heater 0.9 1.4 --1.5 $5,193 $375 High Eff Heat Pump Space Conditioner 0.3 0.4 --0.6 $4,346 $99 Solar PV 2.6 2.8 --1.7 $9,608 $1,079 Air sealing 0.4 0.5 --0.3 $4,684 $71 Heat pump water heater with Elec Base 2.5 2.7 --1.1 $3,829 $566 High Eff Heat Pump Water Heater (repl electric) 2.2 2.3 --1.0 $4,690 $597 Water Heating Package 1.4 ------$229 $0 Page 7 of 30 Cost-Effectiveness Results Summary City of Palm Springs - Climate Zone 15 ResultsGenerated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings Single Family | Built from 1978 to 1991 (6,245 units) Study Source: Existing Single Family Building Upgrades¹ | Release Date: 05/23/2024 | Newest Version | Code Cycle: 2022 Table 2 of 2 Per Home Results City-Wide Estimates Measure Flexible Score Affected Units Emissions Reductions Lifecycle Savings annual energy savings (lifecycle)(lifecycle MTCOe)(on-bill) Heat Pump Space Conditioner 1 781 1,256 -$1,047,309 Dual fuel heat pump space conditioner 1 781 1,216 -$1,007,314 R-19 Raised Floor Insulation 4 781 1,447 $4,516,637 R-30 Raised Floor Insulation 4 781 1,657 $5,161,206 R-38 Attic insulation 3 781 1,073 $3,746,967 R-49 Attic insulation 4 781 1,322 $4,633,366 Windows 10 781 3,138 $13,075,552 Radiant Barrier Under Roof (when re-roofing)3 781 892 $3,462,817 Cool roof .20 Solar Reflectance 2 781 450 $2,694,542 New Ducts, R-6 Insulation + Duct Sealing 13 781 4,179 $18,208,855 New Ducts, R-8 Insulation + Duct Sealing 14 781 4,352 $18,673,448 Page 8 of 30 Cost-Effectiveness Results Summary City of Palm Springs - Climate Zone 15 ResultsGenerated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings Single Family | Built from 1978 to 1991 (6,245 units) Study Source: Existing Single Family Building Upgrades¹ | Release Date: 05/23/2024 | Newest Version | Code Cycle: 2022 (Continued) Table 2 of 2 Per Home Results City-Wide Estimates Measure Flexible Score Affected Units Emissions Reductions Lifecycle Savings annual energy savings (lifecycle)(lifecycle MTCOe)(on-bill) Duct sealing 10 781 3,146 $14,007,527 Heat Pump Water Heater 11 781 9,106 $4,796,136 High Eff Heat Pump Water Heater 11 781 9,229 $5,234,685 High Eff Heat Pump Space Conditioner 3 781 1,889 $1,379,360 Solar PV 17 781 5,263 $15,050,186 Air sealing 1 781 349 $992,432 Heat pump water heater with Elec Base 4 781 1,103 $7,892,953 High Eff Heat Pump Water Heater (repl electric)4 781 1,227 $8,331,967 Water Heating Package 1 781 662 $0 Page 9 of 30 Cost-Effectiveness Results Summary City of Palm Springs - Climate Zone 15 ResultsGenerated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings Single Family | Built from 1992 to 2005 (2,318 units) Study Source: Existing Single Family Building Upgrades¹ | Release Date: 05/23/2024 | Newest Version | Code Cycle: 2022 Table 1 of 2 Benefit/Cost Ratios Per Home Results Measure On-Bill (2022 Esc) On-Bill (2025 Esc) 2022 TDV LSC Incremental Cost Annual Bill Savings ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective (on-bill) Heat Pump Space Conditioner ------0.1 $1,324 -$157 Dual fuel heat pump space conditioner ------0.2 $1,906 -$155 R-38 Attic insulation 1.0 1.1 --0.6 $1,781 $63 R-49 Attic insulation 1.7 1.9 --1.1 $1,827 $113 Windows 0.7 0.7 --0.4 $11,463 $271 Radiant Barrier Under Roof (when re-roofing) 3.5 3.7 --1.9 $893 $111 Cool roof .20 Solar Reflectance 2.3 2.4 --1.3 $893 $96 New Ducts, R-6 Insulation + Duct Sealing 2.8 3.0 --1.8 $4,808 $484 New Ducts, R-8 Insulation + Duct Sealing 2.3 2.4 --1.5 $6,311 $509 Duct sealing 2.2 2.3 --1.4 $1,400 $109 Page 10 of 30 Cost-Effectiveness Results Summary City of Palm Springs - Climate Zone 15 ResultsGenerated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings Single Family | Built from 1992 to 2005 (2,318 units) Study Source: Existing Single Family Building Upgrades¹ | Release Date: 05/23/2024 | Newest Version | Code Cycle: 2022 (Continued) Table 1 of 2 Benefit/Cost Ratios Per Home Results Measure On-Bill (2022 Esc) On-Bill (2025 Esc) 2022 TDV LSC Incremental Cost Annual Bill Savings ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective ≥ 1.0 is cost effective (on-bill) Heat Pump Water Heater --0.3 --1.7 $4,332 $65 High Eff Heat Pump Water Heater --0.4 --1.5 $5,193 $97 High Eff Heat Pump Space Conditioner ------0.4 $4,346 -$24 Solar PV 1.9 2.0 --1.6 $9,608 $763 Air sealing 0.2 0.2 --0.2 $4,684 $37 Heat pump water heater with Elec Base 1.3 1.3 --1.1 $3,829 $279 High Eff Heat Pump Water Heater (repl electric) 1.1 1.2 --1.0 $4,690 $311 Water Heating Package 1.4 ------$229 $0 Page 11 of 30 Cost-Effectiveness Results Summary City of Palm Springs - Climate Zone 15 ResultsGenerated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings Single Family | Built from 1992 to 2005 (2,318 units) Study Source: Existing Single Family Building Upgrades¹ | Release Date: 05/23/2024 | Newest Version | Code Cycle: 2022 Table 2 of 2 Per Home Results City-Wide Estimates Measure Flexible Score Affected Units Emissions Reductions Lifecycle Savings annual energy savings (lifecycle)(lifecycle MTCOe)(on-bill) Heat Pump Space Conditioner 1 290 318 -$811,825 Dual fuel heat pump space conditioner 1 290 300 -$801,468 R-38 Attic insulation 1 290 94.7 $324,523 R-49 Attic insulation 1 290 174 $584,659 Windows 3 290 411 $1,403,562 Radiant Barrier Under Roof (when re-roofing)1 290 149 $576,891 Cool roof .20 Solar Reflectance 1 290 84.6 $496,451 New Ducts, R-6 Insulation + Duct Sealing 5 290 577 $2,504,177 New Ducts, R-8 Insulation + Duct Sealing 5 290 605 $2,634,332 Duct sealing 1 290 121 $562,219 Heat Pump Water Heater 11 290 3,381 $334,017 Page 12 of 30 Cost-Effectiveness Results Summary City of Palm Springs - Climate Zone 15 ResultsGenerated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings Single Family | Built from 1992 to 2005 (2,318 units) Study Source: Existing Single Family Building Upgrades¹ | Release Date: 05/23/2024 | Newest Version | Code Cycle: 2022 (Continued) Table 2 of 2 Per Home Results City-Wide Estimates Measure Flexible Score Affected Units Emissions Reductions Lifecycle Savings annual energy savings (lifecycle)(lifecycle MTCOe)(on-bill) High Eff Heat Pump Water Heater 11 290 3,427 $499,903 High Eff Heat Pump Space Conditioner 2 290 497 -$123,595 Solar PV 17 290 1,953 $3,950,031 Air sealing --290 66.9 $193,851 Heat pump water heater with Elec Base 4 290 410 $1,446,198 High Eff Heat Pump Water Heater (repl electric)4 290 457 $1,612,085 Water Heating Package 1 290 246 $0 Page 13 of 30 Cost-Effectiveness Results Summary City of Palm Springs - Climate Zone 15 ResultsGenerated October 03, 2024 from the Cost-Effectiveness Explorer https://explorer.localenergycodes.com/jurisdiction/palm-springs-city/study-results/15-SCE?only_study_type=existing-buildings