HomeMy WebLinkAboutStaff Report 267-09TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
DATE: OCTOBER 19, 2009
REPORT TYPE: PUBLIC HEARING
DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
CMR: 267:09
SUBJECT: Adoption of two Ordinances: 1) Repealing Chapter 16.17 of the Palo Alto
Municipal Code and Amending Title 16 to Adopt a New Chapter 16.17,
California Energy Code, 2008 Edition; and 2) Repealing Chapter 16.18 of the
Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter
16.18, Establishing Local Energy Efficiency Standards for Certain Buildings
and Improvements Covered by the California Energy Code, 2008 Edition
EXECUTIVE SUMMARY
The 2008 California Energy Code is scheduled to become effective on August 1,2009.
Embedded within the updated Energy Code are prescribed Building Energy Efficiency Standards
that exceed those in the current (2005) Energy Code by roughly 10% -15%. Section 10-106 of
the State Standards authorizes cities to adopt and enforce local energy efficiency standards (local
Energy Code amendments) that are more restrictive than the State Standards upon the filing of an
application with the California Energy Commission. The application must include the proposed
local standards, a study with supporting analysis documenting energy savings, and a
determination that the proposed standards are cost-effective.
The City's mandatory green building regulations (PAMC Chapter 18.44) effectively require that
new residential and non-residential construction be designed to consume a minimum of 15% less
energy than what the State Standards allow. Staff recommends adoption of local amendments to
synchronize the State's Energy Code requirements with the City's green building regulations.
RECOMMENDATION
Staff recommends that the City Council conduct a public hearing to consider adoption of the two
attached ordinances: 1) repealing Chapter 16.17 of the Palo Alto Municipal Code and amending
Ti tle 16 to adopt by reference the 2008 California Energy Code (Part 6 of Title 24 of the
California Code of Regulations), and 2) repealing Chapter 16.18 and adopting a new Chapter
16.18 establishing local Energy Efficiency Standards for certain buildings and improvements
covered by the 2008 Edition of the California Energy Code. This second ordinance codifies Palo
Alto's local amendments to the new State Energy Code and contains the necessary Findings of
Fact supporting these amendments.
CMR: 267:09 Page 1 of 5
BACKGROUND
Both the California Energy Commission and Building Standards Commission approved new
Building Energy Efficiency Standards in 2008 that are scheduled to go into effect statewide on
August 1, 2009. The new standards will apply to all Building Permit applications submitted on
or after that date and were adopted for a number of compelling reasons, including:
1. To provide California with an adequate, reasonably-priced, and environmentally-sound
supply of energy.
2. To respond to Assembly Bi1132, the Global Warming Solutions Act of2006, which
mandates that California must reduce its greenhouse gas emissions to 1990 levels by
2020.
3. To pursue one ofthe primary goals of California's energy policy, which identifies
increasing the energy efficiency of buildings as a preferred strategy to meet the State's
growing energy demand.
4. To act on the findings of California's Integrated Energy Policy Report (IEPR), which
state that Standards are the most cost effective means to achieve energy efficiency,
expects the Building Energy Efficiency Standards to continue to be upgraded over time to
reduce electricity and peak demand, and recognizes the role of the Standards in reducing
energy related to meeting California's water needs and in reducing greenhouse gas
emISSIons.
5. To meet the West Coast Governors' Global Warming Initiative commitment to include
aggressive energy efficiency measures into updates of state building codes.
6. To meet the Executive Order in the Green Building Initiative to improve the energy
efficiency of nonresidential buildings through aggressive standards.
Additionally, on June 2, 2008, the Council passed Ordinance No. 5006, adopting mandatory
green building regulations for residential and commercial building projects (P AMC Chapter
18.44). The Council also adopted a companion Resolution No. 8825, establishing specific green
building standards to comply with the ordinance. The green building ordinance specifies use of
the United States Green Building Council's (USGBC) LEED (Leadership in Energy &
Environmental Design) rating system for commercial building projects and the Build it Green
organization'S GreenPoint Rated system for residential projects. Both rating systems include
minimum energy efficiency standards for buildings that may exceed the requirements of the state
standards. Council will consider revisions to the green building compliance standards on
October 19,2009.
DISCUSSION
Adoption of the two proposed ordinances will ensure consistency between the State standards
and the City's current green building regulations.
CMR: 267:09 Page 2 of5
The first ordinance amends Chapter 16.17 of the Palo Alto Municipal Code and adopts by
reference the 2008 California Energy Code in its entirety. Although the State's new energy
efficiency standards apply to buildings in Palo Alto whether fonnally adopted or not, adoption of
the 2008 Code is a pre-requisite to adopting any local amendments.
The second ordinance amends Chapter 16.18 ofthe Palo Alto Municipal Code and adopts local
amendments to the 2008 California Energy Code that establish increased energy efficiency
standards beyond those contained in the State Code. These increased standards are consistent
with the revised green building regulations presented to Council on October 19,2009.
Although the California Energy Code prescribes minimum energy perfonnance standards for
new buildings, requiring increased energy efficiency at the local level will further reduce energy
costs for building owners, further reduce energy consumption during periods of peak demand
and further reduce greenhouse gas emissions. The ordinance amending the Energy Code would
apply to all new residential and non-residential construction and certain types of tenant
improvements, renovations and additions and would establish energy efficiency standards for
covered projects that are roughly 15% better than the minimum standards in the new State Code.
California Public Resources Code Section 25402. 1 (h)(2) states that modifications to California's
energy efficiency standards by a local jurisdiction may be done only after a study has been
undertaken and findings made that determine that the proposed modifications are cost effective.
State law also requires that a noticed public hearing be held prior to the reading and adoption of
any ordinance that adopts by reference a model code. The public hearing for this item was
originally scheduled for June 1,2009 and was continued to July 6. Consistent with State law, the
ordinances and study will be forwarded to the California Energy Commission (CEC) following
Council introduction at this meeting. After CEC review and approval, which is expected to take
several weeks, staffwill schedule the ordinances for second reading, 30 days after which, the
ordinances and local amendments will become effective.
Because locally adopted energy efficiency standards also constitute amendments to the
California Buildings Standards Code, after the second reading by the Council, the ordinance
adopting the local amendments must be filed with the California Building Standards Commission
(CBSC) and must include additional findings that demonstrate how the amendments are
reasonably necessary due to unique local climatic, geologic or topographic conditions pursuant
to California Health and Safety Code Section 17958.5. To date, only 14 jurisdictions in the state
(12 cities and 2 counties) have amended the current (2005) California Energy Code to establish
increased local energy efficiency standards:
(http://www.energy.ca.gov/title24/2005standards/ordinances exceeding 2005 building standar
ds.html).
As of yet however, it is staffs understanding that no jurisdictions have completed the processing
of local amendments to the 2008 California Energy Code. Staff is aware that the cities of
Berkeley and Santa Rosa, as well as the County of Marin, are in the process of doing so.
CMR: 267:09 Page 3 of5
A copy ofthe recently completed study of Palo Alto's proposed local Energy Code amendments,
"Palo Alto Revised Green Building Ordinance Energy Cost-Effectiveness Study" prepared by
Gabel Associates, LLC, is attached and will be presented more fully to the Council at this
meeting. The study concludes that the increased energy efficiency standards of the City'S green
building regulations remain cost-effective under the 2008 Energy Code and therefore justifies the
approval of them to the CEC for the duration of three-year period that the new State Code will be
in effect.
RESOURCE IMPACT
Resource impacts resulting from the adoption of the two ordinances are limited to staff training
costs and implementation of public outreach efforts. As with the enforcement of all building
standards by the City, these costs are recovered through Building Permit fees.
POLICY IMPLICATIONS
The State of California mandates enforcement of the most current edition of the California
Building Standards Code and it becomes effective regardless of the City's action or lack of
action. As noted though, the City does have discretion to adopt local amendments to the CBSC
and must adopt those amendments with appropriate findings. Further, the Energy Code
amendments are consistent with and directly support the City'S green building regulations.
ENVIRONMENTAL REVIEW
The proposed ordinances preserve and enhance the environment, in that they set forth minimum
energy efficiency standards within the City of Palo Alto for all new residential and commercial
construction. Thus, staffhas determined that these actions are exempt from the California
Environmental Quality Act (CEQA) in accordance with Public Resources Code Section
15061(b)(3), because "it can be seen with certainty that there is no possibility that the activity in
question may have a significant effect on the environment."
PREPARED BY:
LARRY I. ERLIN, PE
Chief Buildi !icial
DEPARTMENT HEAD REVIEW:
Hl"r"'~"'" Community Environment
CITY MANAGER APPROVAL:
CMR: 267:09 Page 4 of5
ATTACHMENTS
Attachment A:
Attachment B:
Attachment C:
CMR: 267:09
Ordinance Repealing Chapter 16.17 of the Palo Alto Municipal Code and
Amending Title 16 to Adopt a New Chapter 16.17, California Energy
Code, 2008 Edition.
Ordinance Repealing Chapter 16.18 of the Palo Alto Municipal Code and
Amending Title 16 to Adopt a New Chapter 16.18, Establishing Local
Energy Efficiency Standards for Certain Buildings and Improvements
Covered by the California Energy Code, 2008 Edition.
Palo Alto Revised Green Building Ordinance Energy Cost-Effectiveness
Study" prepared by Gabel Associates, LLC.
Page 5 of5
ATTACHMENT A
NOT YET APPROVED
Ordinance No. ---
Ordinance of the Council of the City of Palo Alto Repealing
Chapter 16.17 of the Palo Alto Municipal Code and Amending
Title 16 to Adopt a New Chapter 16.17, California Energy
Code, 2008 Edition
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Title 16 of the Palo Alto Municipal Code is hereby amended by
repealing in its entirety Chapter 16.17 and enacting a new Chapter 16.17 to read as follows:
Chapter 16.17
CALIFORNIA ENERGY CODE
16.17.0102008 California Energy Code adopted.
The California Energy Code, 2008 Edition, Title 24, Part 6 of the California Code of
Regulations, is adopted and hereby incorporated in this Chapter by reference and made a part hereof
the same as if fully set forth herein. One copy of the California Energy Code, 2008 Edition, has
been filed for use and examination of the public in the Office of the Chief Building Official of the
City of Palo Alto.
16.17.020 Violations --Penalties.
Any person, firm, or corporation violating any provision of this Energy Code is guilty
of a misdemeanor, and upon conviction thereof shall be punished as provided in subsection (a) of
Section 1.08.010 of this code. Each separate day or any portion thereof during which any violation
of this Chapter occurs or continues constitutes a separate offense, and upon conviction thereof shall
be punishable as provided in this section.
16.17.030 Enforcement --Citation authority.
The following designated employee positions may enforce the provisions of this
Chapter by the issuance of citations. Persons employed in such positions are authorized to exercise
the authority provided in Penal Code section 836.5 and are authorized to issue citations for
violations of this Chapter. The designated employee positions are: (1) Chief Building Official; (2)
Assistant Building Official; (3) Supervisor, Building Inspection; and (4) Code Enforcement Officer.
SECTION 2. The Council finds that this project is exempt from the provisions of
the California Environmental Quality Act ("CEQ A"), pursuant to Section 15061 of the CEQA
Guidelines, because it can be seen with certainty that there is no possibility that the Code herein
adopted will have a significant effect on the environment.
091013 syn 6050794
NOT YET APPROVED
SECTION 3. This ordinance shall take effect on January 1, 2010, or upon the
date that the 2008 edition of the California Energy Code becomes effective, whichever is later;
provided that the City's Ordinance establishing local energy efficiency standards for certain
buildings and improvements covered by the 2008 California Energy Code has been approved by
the City Council and the California Energy Commission.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Deputy City Attorney
091013 syn 6050794
2
Mayor
APPROVED:
City Manager
Director of Planning & Community
Environment
Director of Utilities
ATTACHMENT B
NOT YET APPROVED
Ordinance No. ----
Ordinance of the City Council of the City of Palo Alto Repealing
Chapter 16.18 of the Palo Alto Municipal Code and Amending
Title 16 to Adopt a New Chapter 16.18 Establishing Local Energy
Efficiency Standards for Certain Buildings and Improvements
Covered by the 2008 California Energy Code
The City Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings. The City Council finds that:
1. The City of Palo Alto's (City) Comprehensive Plan sets forth goals for preserving
and improving the City's natural and built environment, protecting the health of its residents and
visitors, conserving water and energy, and fostering its economy; and
2. The City Council has identified Environmental Protection as one of its top three
goals, and energy efficiency is a key component of environmental protection; and
3. The City's Climate Protection Plan, adopted by the City Council on December 3,
2007, states that natural gas and electricity use within the City accounts for approximately
310,000 metric tons of carbon dioxide emissions annually, or 42.5% of total annual City-wide
emissions; and
4. The provisions of California Assembly Bill 32 (Global Warming Solutions Act)
require actions on the part of State and local governments to significantly reduce greenhouse gas
(GHG) emissions such that statewide GHG emissions are lowered to 1990 levels by 2020 and
80% below 1990 levels by 2050; and
5. Local government, by itself, cannot fully address all of the challenges posed by
climate change and comply with the mandates of AB 32; and
6. Energy efficiency is a key component in reducing GHG emISSIOnS, and
construction of more energy efficient buildings can help Palo Alto reduce its share of the GHG
emissions that contribute to climate change; and
7. On June 2, 2008, the City Council adopted regulations for the incorporation of
green building techniques and materials in private residential and nonresidential development
projects (Green Building Regulations), Ordinance No. 5006; and a resolution revising those
standards was introduced to Council on October 19, 2009; and
1
091014 syn 6050795
NOT YET APPROVED
8. Building Standards Code establishes building standards for all occupancies
throughout the State; and
9. Health and Safety Code Section 17958.5 provides that a city may establish more
restrictive building standards if they are reasonably necessary due to local climatic, geological or
topographical conditions; and
10. Based on the findings contained in this Ordinance, the City Council has found that
certain modifications and additions to the California Building Standards Code are reasonably
necessary based upon local climatic, topographical and geological conditions; and
11. In accordance with the 2008 California Building Energy Efficiency Standards,
including California Code of Regulations, Title 24, Parts 1 and 6 (Standards) all residential and
nonresidential development must meet or exceed the energy efficiency requirements contained
therein; and
12. California Public Resource Code Section 25402. 1 (h)(2) authorizes a city to adopt
and enforce increased energy efficiency standards, provided that a determination is made that the
local standards are cost effective and they are approved by the California Energy Commission;
and
13. On October 19, 2009, an Ordinance Repealing Chapter 16.17 of the Palo Alto
Municipal Code and Amending Title 16 to Adopt a New Chapter 16.17, California Energy Code,
2008 Edition was introduced to the City Council; and .
14. It is the purpose and intent of this Ordinance to amend the 2008 California
Building Energy Efficiency Standards as described herein; and
15. City staff has prepared a new Chapter 16.18 to Title 16 of the Palo Alto Municipal
Code, Local Energy Efficiency Standards; and
16. On March 23, 2009, the City hired Gabel Associates, LLC, an expert in the field
of building energy analysis and Energy Code compliance, to assist the City in preparing a study
and proposal for local amendments to the 2008 California Energy Code, and said study
demonstrated the cost effectiveness of these local amendments; and
17. The City will include the Gabel Associates study in an application for
consideration by the California Energy Commission in compliance with Public Resources Code
25402.1(h)(2); and
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091014 syn 6050795
NOT YET APPROVED
18. The modifications to the 2008 California Building Energy Efficiency Standards
required by this Ordinance are reasonably necessary due to local climatic, geologic and
topographic conditions, specifically:
a. The City of Palo Alto Utilities (CPAU) is the only municipal utility in
California that operates City-owned-utility services including electric,
fiber optic, natural gas, water and wastewater services, and as such, the
City Council is uniquely concerned that CPAU be able to provide reliable
power to Palo Alto residents and businesses, especially in periods of peak
energy demand.
b. Summer ambient temperatures in the City during the months of June, July
and August can reach over 100 degrees, creating peak energy load
demands that can cause power outages, affecting public safety and causing
adverse local economic impacts.
c. The total square footage of conditioned habitable space within residential
and nonresidential buildings in the City is increasing and using more
energy and resources than in the past.
d. The burning of fossil fuels used in the generation of electric power and
heating of buildings contributes to climate change, which could result in
rises in sea level, including in San Francisco Bay, that could put at risk
Palo Alto homes and businesses, public facilities, and Highway 101.
e. Reduction of total and peak energy use as a result of incremental energy
efficiency measures required by this Ordinance will have local and
regional benefits in the cost-effective reduction of energy costs for
building owners, additional available system energy capacity, and a
reduction in greenhouse gas emissions; and
19. In order to maintain and advance the energy efficiency standards adopted herein,
it is in the best interest of the City to revisit this Ordinance prior to its expiration, ensuring that
local energy standards meet the goals of reducing energy consumption, thereby saving on energy
bills and decreasing greenhouse gas emissions; and
20. The study conducted by Gabel Associates, LLC has concluded that the energy
efficiency measures contained in this Ordinance are cost-effective. The City Council hereby
adopts the conclusions of the study and authorizes its inclusion in an application for
consideration by the California Energy Commission in compliance with California Public
Resources Code Section 25402.1(h)(2). Upon approval by the California Energy Commission,
this Ordinance shall be presented to the City Council for final adoption.
3
091014 syn 6050795
NOT YET APPROVED
SECTION 2. Chapter 16.18 of Title 16, "Building Code," is hereby amended by
repealing in its entirety Chapter 16.18 and enacting a new Chapter 16.18 to read and provide as
follows:
Chapter 16.18
LOCAL ENERGY EFFICIENCY STANDARDS FOR CERTAIN BUILDINGS AND
IMPROVEMENTS COVERED BY THE CALIFORNIA ENERGY CODE, 2008 EDITION
Sections:
16.18.010
16.18.020
16.18.030
16.18.040
16.18.050
16.18.060
16.18.070
16.18.010
Purpose.
Definitions.
Buildings Covered.
Compliance.
General Compliance Requirements.
Solar Photo voltaic Energy Systems for Multi-Family Residential
Construction and Nonresidential Construction.
Expiration.
Purpose.
The purpose of this Ordinance is to promote the health, safety and welfare of Palo Alto
residents, workers, visitors and the environment by minimizing the use and waste of energy in
the construction and operation of the City's building stock. The Ordinance sets forth minimum
energy efficiency standards within the City of Palo Alto for certain types of residential and
nonresidential new construction and renovation, and should be used in conjunction with both the
City's Green Building Regulations, located in Chapter 18.44 of Title 18 (Zoning) of the Palo
Alto Municipal Code, and the City'S Green Building Standards for Compliance, adopted by City
Council Resolution. This Chapter is intended to amend the 2008 California Building Energy
Efficiency Standards, as specified in the California Code of Regulations, Title 24, Parts 1 and 6
(Standards), adopted by the City at Title 16, Chapters 16.04 and 16.17 of the Palo Alto
Municipal Code. Compliance with the 2008 California Building Energy Efficiency Standards is
required even if the increased minimum efficiency standards in this Chapter do not apply.
16.18.020 Defmitions.
(a) For purposes of this Chapter 16.18, words or phrases used in this Chapter that are
specifically defined in Parts 1,2 or 6 of Title 24 of the California Code of Regulations shall have
the same meaning as given in the Code of Regulations. In addition, for the purposes of this
Chapter 16.18, the following words and phrases shall have the meanings indicated herein:
(b) "2008 California Building Energy Efficiency Standards", or "California Energy
Code", shall mean the Standards and regulations adopted by the California Energy Commission
4
091014 syn 6050795
NOT YET APPROVED
contained in Parts 1 and 6 of Title 24 of the California Code of Regulations as such standards
and regulations may be amended from time to time.
(c) "Energy STAR Portfolio Manager" (Portfolio Manager) shall mean the program
managed by the U.S. Environmental Protection Agency that offers an energy management tool
that allows an applicant to track and assess energy and water consumption of a building project.
Tracked projects receive an energy performance rating on a scale of 1-100 relative to similar
buildings nationwide.
(d) "GreenPoint Rated" shall mean a residential green building rating system developed
by the Build It Green organization.
(e) "HERS Rating" shall mean the California Home Energy Rating System, a
statewide program for residential dwellings administered by the California Energy Commission
and defined in the 2008 California Building Energy Efficiency Standards. HERS Phase I
provides field verification and diagnostic testing to show compliance with Title 24, Part 6, of the
2008 California Building Energy Efficiency Standards. HERS Phase II includes whole-house
home energy efficiency ratings for existing and newly constructed homes.
(0 "IEED@" shall mean the "Leadership in Energy and Environmental Design" green
building rating system developed by the U.S. Green Building Council.
(g) "Multi-Family Residential" shall mean a building containing three or more attached
dwelling units.
(h) "Nonresidential" shall mean a new or replacement retail, office, industrial,
warehouse, service, or similar building(s).
(i) "Nonresidential Compliance Manual" shall mean the manual developed by the
California Energy Commission, under Section 25402.1(e) of the Public Resources Code, to aid
designers, builders, and contractors in meeting the requirements of the state's 2008 Building Energy
Efficiency Standards for nonresidential, high-rise residential, and hotel/motel buildings.
G) "Proposed Design" is defined in the Residential and Nonresidential Compliance
Manuals developed by the California Energy Commission, under Section 25402.1(e) of the Public
Resources Code, to aid designers, builders, and contractors in meeting the requirements of the
state's 2008 California Building Energy Efficiency Standards for nonresidential, high-rise
residential, and hotel/motel buildings.
(k) "Rebuild" shall mean home improvements or minor additions to an existing
structure that do not maintain 75% of the existing roof or exterior walls.
(1) "Residential Compliance Manual" shall mean the manual developed by the
California Energy Commission, under Section 25402.1(e) of the Public Resources Code, to aid
5
091014 syn 6050795
NOT YET APPROVED
designers, builders, and contractors in meeting the requirements of the state's 2008 Ca1ifornia
Building Energy Efficiency Standards for low-rise residential buildings.
(m) "Single-Family or Two-Family Residential" shall mean a single detached dwelling
unit or two units in a single building.
(n) "Solar Photovoltaic Energy System" shall mean a photovoltaic solar collector or
other photovoltaic solar energy device that has a primary purpose of providing for the collection and
distribution of solar energy for the generation of alternative current rated peak electricity.
(0) "Standard Design" is defined in the Residential and Nonresidential Compliance
Manuals developed by the California Energy Commission, under Section 25402.1(e) of the Public
Resources Code, to aid designers, builders, and contractors in meeting the requirements of the
state's 2008 California Building Energy Efficiency Standards for nonresidential, high-rise
residential, and hotel/motel buildings.
(p) "Time Dependent Valuation of Energy (TDV Energy)" shall mean the time varying
energy caused to be used by a building to provide space conditioning and water heating and, for
specified buildings, lighting. TDV Energy accounts for the energy used at the building site and
consumed in producing and in delivering energy to a site, including but not limited to, power
generation, transmission and distribution losses. TDV Energy is expressed in terms of thousands of
British thermal units per square foot per year (kBtu/sq.ft.-yr.).
16.18.030 Buildings Covered.
(a) Nonresidential Construction.
The provisions of this Ordinance shall apply to all nonresidential construction (including
Mixed Use and other development) for which a building permit has been applied and accepted as
complete by the Building Division on or after the effective date of this Ordinance for:
091014 8yn 6050795
(1) New construction greater than or equal to 5,000 square feet, including
additions to existing buildings.
(2) New construction between 500 square feet and 5,000 square feet,
including additions to existing buildings.
(3) Tenant improvements, renovations or alterations greater than or equal to
5,000 square feet that include replacement or alteration of at least two of
the following: HV AC system, building envelope, hot water system, or
lighting system.
(4) Tenant improvements, renovations or alternations greater than or equal
500 square feet with greater than $100,000 in building permit valuation in
a single unit, that are not otherwise covered under Section 3 of Table A of
the "City of Palo Alto Green Building Standards for Compliance for
Private Nonresidential Construction".
6
NOT YET APPROVED
(b) Residential Construction.
The provisions of this Ordinance shall apply to all residential construction for which a
building permit has been applied and accepted as complete by the Building Division on or after
the effective date of this Ordinance for:
(1) Multi-family new construction of three or more attached units.
(2) Multi-family renovations or alterations greater than or equal to 50% of the
existing unit square footage that include replacement or alternation of at
least two of the following: HV AC system, building envelope, hot water
system, or lighting system.
(3) Multi-family renovations, alterations, additions, and/or rebuilds to
individual units greater than or equal to 250 square feet with greater than
or equal to $100,000 in building permit valuation in a single unit.
(4) Single-family or two-family new construction greater than or equal to
1,250 square feet.
(5) Single-family or two-family existing home additions or rebuilds greater
than or equal to 1,250 square feet.
(6) Single-family or two-family existing home renovations, rebuilds and/or
additions between 250 square feet and 1,250 square feet, with greater than
$100,000 in building permit valuation in a single unit.
Subject to the foregoing limitation, applicability of the residential or nonresidential sections of
this Chapter shall be determined in accordance with either the Residential Compliance Manual or
the Nonresidential Compliance Manual, as appropriate for the proposed occupancy.
16.18.040
Inspection.
Compliance Required to Receive Building Permit and Final
The Chief Building Official shall be charged with enforcing the provIsIOns of this
Ordinance. A building permit application subject to the provisions of this Chapter shall not be
issued a building permit by the Chief Building Official unless the energy compliance
documentation submitted with the permit application meets the requirements of this Chapter. A
final inspection for a building permit subject to the requirements of this Chapter will not be
approved unless the work authorized by the building permit has been constructed in accordance
with the approved plans, conditions of approvals, and requirements of this Chapter.
16.18.050 General Compliance Requirements.
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NOT YET APPROVED
In addition to the requirements of the 2008 California Building Energy Efficiency
Standards the following general compliance requirements shaH apply to all building permit
applications subject to this chapter:
(a) Nonresidential Construction.
091014 syn 6050795
(1) New construction greater than or equal to 5,000 square feet, including
additions to existing buildings. The performance approach specified in
Section 151 of the 2008 California Building Energy Efficiency Standards
shall be used to demonstrate that the TDV Energy of the Proposed Design
is at least 15.0% less than the TDVEnergy of the Standard Design.
Compliance with this Section shall constitute achievement of LEED's
minimum energy prerequisite as described in Table A of the "City of Palo
Alto Green Building Standards for Compliance for Private Nonresidential
Construction and Renovation."
(2) New construction between 500 square feet and 5,000 square feet,
including additions to existing buildings. The performance approach
specified in Section 151 of the 2008 California Building Energy
Efficiency Standards shall be used to demonstrate that the TDV Energy of
the proposed building is at least 15.0% less than the TDV Energy of the
Standard Design. Compliance with this Section shall constitute
achievement of LEED's minimum energy LEED prerequisite as described
in Table A of the "City of Palo Alto Green Building Standards for
Compliance for Private Nonresidential Construction and Renovation."
(3) Tenant improvements, renovation or alterations greater than or equal to
5,000 square feet that include replacement or alteration of at least two of
the following: HV AC system, building envelope, hot water system, or
lighting system. Energy efficiency beyond 2008 California Building
Energy Efficiency Standard minimums is not required for projects covered
by this section.
(4) Tenant improvements, renovations or alternations greater than or equal to
500 square feet with greater than $100,000 in building permit valuation in
a single unit, that are not otherwise covered under Section 3 of Table A of
the "City of Palo Alto Green Building Standards for Compliance for
Private Nonresidential Construction." The applicant shall attain an Energy
STAR Portfolio Manager Building Energy Performance Rating prior to
the issuance of a building permit, although achievement of a particular
rating is not required. Compliance with this Section shall constitute
achievement of the Building Energy Performance Rating described in
Table A of the "City of Palo Alto Green Building Standards for
Compliance for Private Nonresidential Construction and Renovation."
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NOT YET APPROVED
(b) Residential Construction.
091014 syn 6050795
(1) Multi-family residential new construction of 3 or more attached units. The
building permit applicant must determine whether the building is low-rise
or high-rise as defined by the 2008 California Building Energy Efficiency
Standards, and then use the appropriate approach as described below:
(i) Low Rise (3 stories or less). The performance approach specified
in Section 151 of the 2008 California Building Energy Efficiency
Standards shall be used to demonstrate that the TDV Energy of the
proposed building is at least 15.0% less than the TDV Energy of
the Standard Design. Compliance with this Section shall constitute
achievement of GreenPoint Rated's minimum energy prerequisite
for new "Multi-Family Residential" construction, as described in
Table B of the "City of Palo Alto Green Building Standards for
Compliance for Private Residential Construction and Renovation".
(ii) High Rise (4 stories or more). The applicant shall model the
building envelope and mechanical system of the Proposed Design
consistent with the 2008 Title 24 performance method rules. The
applicant shall demonstrate that the TDV Energy of the Proposed
Design is less than the TDV Energy of the Standard Design by the
percentage (%) required for minimum energy performance
specified in the 2009 GreenPoint Rated new "Multi-Family
Residential" construction guidelines. Compliance with this
Section shall constitute achievement of GreenPoint Rated's
minimum energy prerequisite required for new "Multi-Family
Residential" construction as described in Table B of the "City of
Palo Alto Green Building Standards for Compliance for Private
Residential Construction and Renovation."
(2) Multi-family renovations or alterations greater than or equal to 50% of the
existing unit square footage that include replacement or alteration of at
least two of the following: HV AC system, building envelope, hot water
system, or lighting system. The building permit applicant shall determine
whether the building is low-rise or high-rise as defined by the 2008
California Building Energy Efficiency Standards, and then use the
appropriate approach as described below:
(i) Low Rise (3 stories or less). The performance approach specified
in Section 151 of the 2008 California Building Energy Efficiency
Standards shall be used to demonstrate that the TDV Energy of the
Proposed Design is at least 15.0% less than the TDV Energy of the
Standard Design. Compliance with this Section shall constitute
9
091014 syn 6050795
NOT YET APPROVED
achievement of GreenPoint Rated's minimum energy prerequisite
for new "Multi-Family Residential" construction, as described in
Table B of the "City of Palo Alto Green Building Standards for
Compliance for Private Residential Construction and Renovation".
(ii) High Rise (4 stories or more). The applicant shall model the
building envelope and mechanical system of the Proposed Design
consistent with the 2008 Title 24 performance method rules. The
applicant shall demonstrate that the TDV Energy of the Proposed
Design is less than the TDV Energy of the Standard Design by the
percentage (% ) required for minimum energy performance
specified in the current GreenPoint Rated new "Multi-Family
Residential" construction guidelines. Compliance with this
Section shall constitute achievement of GreenPoint Rated's
minimum energy prerequisite required for new "Multi-Family
Residential" construction as described in Table B of the "City of
Palo Alto Green Building Standards for Compliance for Private
Residential Construction and Renovation."
(3) Multi-family renovations, alterations, additions, and/or rebuilds to
individual units greater than or equal to 250 square feet with a building
permit valuation greater than or equal to $100,000 in a single unit. The
applicant shall attain a HERS II rating prior to issuance of the building
permit, although achievement of a particular rating is not required.
Compliance with this Section shall constitute achievement of the HERS
Rating requirement as described in Table B of the "City of Palo Alto
Green Building Standards for Compliance for Private Residential
Construction and Renovation". Compliance with this Section is not
required until January 1, 2011.
(4) Single-family or two-family residential new construction greater than or
equal to 1,250 square feet. The performance approach specified in Section
151 of the 2008 Building Energy Efficiency Standards shall be used to
demonstrate that the TDV Energy of the Proposed Design is at least 15.0%
less than the TDV Energy of the Standard Design. Compliance with this
Section shall constitute achievement of GreenPoint Rated's minimum
energy prerequisite for new "Single-Family and Two-Family Residential"
construction, as described in Table B of the "City of Palo Alto Green
Building Standards for Compliance for Private Residential Construction
and Renovation".
(5) Single-family or two-family residential additions or rebuilds greater than
or equal to 1,250 square feet. The performance approach specified in
Section 151 of the 2008 Building Energy Efficiency Standards shall be
10
NOT YET APPROVED
used to demonstrate that the TDV Energy of the Proposed Design is at
least 15.0% less than the TDV Energy of the Standard Design.
Compliance with this Section shall constitute achievement of GreenPoint
Rated's minimum energy prerequisite for new "Single-Family and Two-
Family Residential" construction, as described in Table B of the "City of
Palo Alto Green Building Standards for Compliance for Private
Residential Construction and Renovation".
(6) Single-family or two-family renovations, rebuilds and/or additions that are
between 250 sguare feet and 1,250 square feet, and that have greater than
$100,000 in building permit valuation in a single unit. The applicant shall
attain a HERS II rating prior to issuance of the building permit, although
achievement of a specific HERS II rating is not required. Compliance
with this Section shall constitute achievement of the minimum energy
requirement as described in Table B of the "City of Palo Alto Green
Building Standards for Compliance for Private Residential Construction
and Renovation", This Section has an effective date of January 1,2011
16.18.060 Solar Photovoltaic Energy Systems for Multi-Family Residential
Construction and Nonresidential Construction.
(a) Installation Criteria and Energy Credit. The installation of any solar photovoltaic
(PV) energy system must meet all installation criteria of the California Energy Commission's
Guidelines for California's Solar Electric Incentive Program Pursuant to Senate Bill 1. An energy
credit from solar PV energy systems may be used to demonstrate compliance with the general
compliance requirements of this Ordinance when evaluating LEED® energy performance. This
credit is available if the solar PV energy system is capable of generating electricity from
sunlight, supplying the electricity directly to the building, and the system is connected, through a
reversible meter, to the utility grid. The methodology used to calculate the energy equivalent to
the photovoltaic credit shall be the CECPV Calculator, using the most recent version available
prior to the permit application date, which may be found on the web site of the California Energy
Commission, at www.gosolarcalifornia.org; or shall be another Senate Bill 1 compliant method
as approved by the California Energy Commission.
(b) Documentation. In order to demonstrate compliance with the requirements of
this Section, a permit applicant may be required to submit supplementary forms and
documentation in addition to the building drawings, specifications, and standard energy
compliance (Title 24, HERS and Energy STAR Portfolio Manager) report forms, as deemed
appropriate by the Chief Building Official.
16.18.070 Expiration.
This Chapter 16.18 shall expire upon the date that the State's 2011 Building Energy
Efficiency Standards take effect.
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SECTION 3. Severability. Should any section, subsection, paragraph, sentence, clause,
or phrase of this Ordinance be declared unconstitutional or invalid for any reason, such
declaration shall not affect the validity of the remaining portions of this Ordinance.
SECTION 4. Efforts to Enhance Local Compliance. Given that the purpose of this
Ordinance is to adopt stricter local energy efficiency standards for the construction of new
buildings within the City, the Council further recognizes that the adoption of new standards
without additional education and training for City staff responsible for enforcement of the
standards could diminish compliance and potentially undermine the efficacy of the Ordinance.
Therefore, in order to ensure greater compliance and enforcement of the applicable energy
efficiency standards, better equip staff and provide a greater resource to the City's building
community, the City will seek additional education and training opportunities for staff in the
areas of energy standards, technology and Energy Code implementation and enforcement.
SECTION 5. Environmental Compliance. The proposed Ordinance preserves and
enhances the environment, in that it would set forth minimum energy efficiency standards within
the City of Palo Alto for all new residential and nonresidential construction. In accordance with
California Environmental Quality Act (CEQA) Section 15061(b)(3), "[C]EQA applies only to
projects which have the potential for causing a significant effect on the environment. Where it
can be seen with certainty that there is no possibility that the activity in question may have a
significant effect on the environment, the activity is not subject to CEQA." Staff has determined
that the proposed Ordinance is exempt from CEQA review.
/I
/I
II
II
II
II
II
II
II
/I
/I
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SECTION 6. Effective Date. This Ordinance shall be in full force and effective on
January 1, 2010 or 30 days after its adoption, which ever is later, provided that the Ordinance has
also been approved by the California Energy Commission by that date, and shall be published or
posted as required by law.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
City Clerk
APPROVED AS TO FORM:
Deputy City Attorney
091014 syn 6050795
13
APPROVED:
Mayor
City Manager
Director of Planning & Community
Environment
Director of Utilities
ATTACHMENT C
Palo Alto Revised Energy Efficiency Ordinance
Cost-Effectiveness Study
October 6, 2009
Report prepared by:
Michael Gabel
Gabel Associates, LLC
1818 Harmon Street, Suite #1
Berkeley, CA 94703
(S10) 428-0803
E-mail: mike@gabelenergy.com
Table of Contents
1.0 Executive Summary.. .. .. .. .. .. .. . . . . .. . . . . . . . .. .. .. .. . . . . . .. .. . .. . . .. . . .. .. . . .. . . .. . .. 1
2.0 Impacts of the New Ordinance ..................... . . . . . . . . . . . . . . . . .. 2
3.0 Cost Effectiveness .............................. .. .. . . . .. .. . . . .. . . . . . . .. 19
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 1016109 Page 0
1.0 Executive Summary
Gabel Associates has researched and reviewed the feasibility and cost-effectiveness of
requiring building permit applicants to exceed the 2008 California Building Energy
Efficiency Standards to meet the minimum energy-efficiency requirements of the City of
Palo Alto's updated Energy Efficiency Ordinance.
The study contained in this report shall be included in Palo Alto's application to the
California Energy Commission for approval of the City's local Energy Code Amendments.
The application to the Energy Commission must meet the requirements specified in
Section 10-106 of the California Code of Regulations, Title 24, Part 6, LOCALLY
ADOPTED ENERGY STANDARDS. The City's updated Energy Efficiency Ordinance
shall be enforceable after the Commission has reviewed and approved the local energy
efficiency standards as meeting all requirements of Section 10-106; and the Ordinance
has been filed with the California Building Standards Commission.
Please note that this cost-effectiveness study has been completed with respect to the
2008 Building Energy Efficiency Standards, which are scheduled to take effect on
January 1, 2010.
The following data has been developed and compiled 'from individual case studies as a
means of illustrating energy cost-effectiveness of the Palo Alto ordinance. The goal of
the case studies is to provide relatively real-world order-of-magnitude results for a local
jurisdiction to understand and calibrate energy and cost impacts of a local green building
or energy ordinance. In this limited study no attempt has been made to gather
statistically significant data that can be applied to all new construction projects and
thereby determine macro-effects of specific policy decisions.
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 1016109 Page 1
2.0 Impacts of the New Ordinance
The energy performance impacts of the new ordinance have been evaluated using five
case studies, which collectively reflect the broad range of building types covered by the
Ordinance.
• Three single family home designs: 1,705 sf; 2,682 sf; 5,074 sf
• Single family addition analyzed alone (without the existing house): 1,295 sf
• Low-rise multi-family residential building: 8,442 sf, 8 dwelling units
• High-rise multi-family residential building: 36,800 sf, 40 dwelling units
• 1-Story nonresidential office building: 10,580 sf
• 5-Story nonresidential office building: 52,900 sf
The methodology used in the case studies replicates how actual buildings are designed
and evaluated to meet or exceed the State's energy efficiency standards.
(a) Each prototype building design is tested for compliance with the 2008 Standards,
and all energy efficiency measures are adjusted with commonly used
construction methods to just barely meet the Standards. The energy efficiency
measures chosen are a combination of measures which reflects how designers
and builders are most likely to achieve a specified level of performance.
(b) Starting with a 2008 Standards minimally compliant set of measures, various
energy related elements are changed to just reach the minimum energy
performance required by the Ordinance (e.g. 15% better than 2008 Title 24). In
this study, the design choices selected are based on many years of experience
by the author working with architects, mechanical engineers and builders coupled
with general knowledge of the relative incremental costs of most measures. The
intent of this approach is to ensure that the study reflects how building energy
performance is actually evaluated and used to select final energy efficiency
measures.
(c) A minimum and maximum range of incremental costs of added energy efficiency
measures is established by a variety of research means. A construction cost
estimator, Building Advisory LLC, was contracted to conduct research and
surveys to derive accurate and current costs of measures. Site energy in KWh
and Therms, is calculated for each model run to establish the annual energy
savings, energy cost savings and C02-equivalent reductions in greenhouse
gases.
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 1016109 Page 2
2.1 New Single Family Homes
Energy design descriptions of the single family building prototypes which just meet the
2008 Title 24 Building Energy Efficiency Standards:
Single Family House: 1,705 square feet, 2-story, 16.3% glazing/floor area ratio
-Option A
Energy Efficiency Measures
R-38 Roof wI Radiant Barrier
R-13 Walls
R-O Slab on Grade
Low E2 Vinyl Windows, U=0.36, SHGC=0.30
Furnace: 80% AFUE
Air Conditioner: 13 SEER
R-6 Attic Ducts
Reduced Duct LeakagelTesting (HERS)
50 Gallon Gas Water Heater: EF=0.60
Single Family House: 1,705 square feet, 2-story, 16.3% glazing/floor area ratio
-Option B
Energy Efficiency Measures
R-38 Roof wI Radiant Barrier
R-13 Walls
R-O Slab on Grade
Low E2 Vinyl Windows, U=0.36, SHGC=0.30
Furnace: 80% AFUE
Air Conditioning: None
R -6 Attic Ducts
Reduced Duct LeakagelTesting (HERS)
50 Gallon Gas Water Heater: EF=0.60
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 1016109 Page 3
Single Family House: 2,682 square feet, 2-story, 21.1 % glazing/floor area ratio
-Option A
Energy Efficiency Measures
R-38 Roof wI Radiant Barrier
R-15 Walls
R-19 Raised Floor
Low E2 Vinyl Windows) U=0.36, SHGC=0.30
Furnace: 80% AFUE
Air Conditioner: 13 SEER
R -8 Attic Ducts
50 Gallon Gas Water Heaters: EF=0.60
Single Family House: 2,682 square feet, 2-story, 21.1 % glazing/floor area ratio
-Option B
Energy Efficiency Measures
R-38 Roof wI Radiant Barrier
R-15 Walls
R-19 Raised Floor
Low E2 Vinyl Windows, U=0.36, SHGC=0.30
Furnace: 80% AFUE
Air Conditioner: None
R-8 Attic Ducts
50 Gallon Gas Water Heaters: EF=0.60
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 10/6/09 Page 4
Single Family House: 5,074 square feet, 2-story, 22.7% glazing/floor area ratio
-Option A
Energy Efficiency Measures
R-38 Roof wI Radiant Barrier
R-13 Walls
R-19 Raised Floor
Housewrap
Low E2 Vinyl Windows, U=0.36, SHGC=0.30
(2) Furnaces: 80% AFUE
(2) Air Conditioners: 13 SEER
(2) Air Conditioners: TXV + Refrig. Charge (HERS)
R -6 Attic Ducts
Reduced Duct Leakagelf esting (HERS)
(2) 50 Gallon Gas Water Heaters: EF=0.62
Pipe Insulation
Single Family House: 5,074 square feet, 2-story, 22.7% glazing/floor area ratio
-Option B
Energy Efficiency Measures
R-38 Roof wI Radiant Barrier
R-13 Walls
R -19 Raised Floor
Housewrap
Low E2 Vinyl Windows, U=0.36, SHGC=0.30
(2) Furnaces: 80% AFUE
(2) Air Conditioners: 13 SEER
(2) Air Conditioners: TXV + Refrig. Charge (HERS)
R-6 Attic Ducts
Reduced Duct Leakagelf esting (HERS)
(2) 50 Gallon Gas Water Heaters: EF=O.62
Pipe Insulation
Energy Measures Needed to Meet the City's Ordinance
The following energy efficiency features have been modified from the Title 24 set of
measures so that the home designs use 15% less TDV energy than the corresponding
Title 24 base case designs per the 2008-2011 Build it Green GreenPoint Rated minimum
energy requirement. The incremental first cost estimate to provide each measure in
comparison with the equivalent base case measure is listed to the right in the following
tables.
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 1016109 Page 5
The incremental energy efficiency improvements specified above to meet the proposed
Ordinance requirements are variables selected by designer, builder or owner. There are
a number of considerations in choosing the final mix of energy efficiency measures
including first cost, aesthetics, maintenance and replacement.
15% Better Than Title 24 Base Case, Option A 1705 sf Climate Zone 4
Energy Efficiency Measures Change Incremental Cost Estimate
Tvpe Min Max Avg
R~38 Roof wI Radiant Barrier -$ -$ -$ -
R~19 Walls (from R~13): 1,328 sf @$0.31 to $0.541sf UpQrade $ 412 $ 717 $ 564
R-:O Slab on Grade ~ $ -$
_
$ -
Low E2 Vinyl Windows U=O.36 SHGC-0.30 -$ -$
_
$ -
Furnace: 90% AFUE (from 80% AFUE) Upgrade $ 500 $ 1000 $ 750
Air Conditioner: 13 SEER 11 EER (HERS) Upgrade $ 25 $ 75 $ 50
Air Conditioner: TXV + Refrig .. Charge (HERS) Upgrade $ 100 $ 150 $ 125
R-8 Attic Ducts (from R-6) Upgrade $ 225 $ 325 $ 275
Reduced Duct Leakagerrestjn~I (HERS) -$ -$ -$ -
50 Gallon Gas Water Heater: EF=0.62 (from EF=0,60) Upgrade $ 100 $ 200 $ 150
Total Incremental Cost of Energy Efficiency Measures: $ 1,362 $ 2,467 $ 1,914
Total Incremental Cost per Square Foot: $ 0.80 $ 1.45 $ 1.12
15% Better Than Title 24 Base Case, Option B 1705 sf Climate Zone 4
Energy Efficiency Measures Change Incremental Cost Estimate
Tvpe Min Max Avg
R-38 Roof wI Radiant Barrier -$ -$ -$ -
Walls (from R-13): 1,328 sf @ $0.31 to $0.54/sf Upgrade $ 412 $ 717 $ 564
R-O Slab on Grade -$ -$ -$ -
Low E2 Vinyl Windows U=0.36 SHGC-0.30 -$ -$ -$ -
Furnace: 92% AFUE (from 80% AFUE) Upgrade $ 500 $ 1200 $ 850
Air Conditioning: None -$ -$ -$ -
R-8 Attic Ducts (from R-6) Upgrade $ 225 $ 325 $ 275
Reduced Duct Leakagerresting (HERS) -$ -$ -$ -
50 Gallon Gas Water Heater: EF=O.62 (from EF=O.60) Upgrade $ 100 $ 200 $ 150
Total Incremental Cost of Energy Efficiency Measures: $ 1,237 $ 2,442 $ 1,839
Total Incremental Cost per Square Foot: $ 0.73 $ 1.43 $ 1.08
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 1016109 Page 6
15%· Better Than Title 24 Base Case, Option A 2682 sf Climate Zone 4
Energy Bficiency Measures Change Incremental Cost Estimate
Tvpe Min Max Avg
R-38 Roof wI Radiant Barrier -$ -$ -$ -
R-15 Walls -$ $ -t -
R-19 Floor -$ -$ --
Law E2 Vinyl Windows. U-0.36. SHGC=0.30 -$ -$ -$ -
Furnace: 90% AFUE (from 80% AFUE) Upgrade $ 500 $ 1000 $ 750
Air Conditioner: 13 SEER 11 EER (HERS) Upgrade $ 25 $ 75 $ 50
Air Conditioner: TXV + Refrig. Charge (HERS) Upgrade $ 100 $ 150 $ 125
R-8 Attic Ducts -$ -$ -$ -
ReducedDuct LeakagefTesting (HERS) Upgrade $ 300 $ 600 $ 450
50 Gallon Gas Water Heater: EF=O.62 (from EF-O.60) Upgrade $ 100 $ 200 $ 150
Total Incremental Cost of Energy Efficiency Measures: $ 1,025 $ 2025 $ 1,525
Total Incremental Cost per Square Foot: $ 0.38 $ 0.76 $ 0.57
15% Better Than Title 24 Base Case. Option B 2682 sf Climate Zone 4
Energy Efficiency Measures Change Incremental Cost Estimate
Type Min Max Avg
R-38 Roof wI Radiant Barrier -$ -$ -$ -
R-15 Walls -$ -$ -$ -
R-t9 Floor -$ -$ -$ -
Low E2 Vinyl Windows U-0.36 SHGC=0.30 -$ -$ -$ -
Housewrap: 2 137 sf @ $0.50 to O.75/sf Upgrade $ 1,069 $ 1603 $ 1336
Furnace: 90% AFUE (from 80% AFUE) Upgrade $ 500 $ 1000 $ 750
Air Conditioner: None -$ -$ -$ -
R-8 Attic Ducts -$ -$ -$ -
Reduced Duct LeakagefTesting.{HERS) Upgrade $ 300 $ 600 $ 450
50 Gallon Gas Water Heater: EF=0.62 (from EF=O.60) Upgrade $ 100 $ 200 $ 150
Total Incremental Cost of Energy Efficiency Measures: $ 1·969 $ 3,403 $ 2686
Total Incremental Cost per Square Foot: $ 0.73 $ 1.27 $ 1.00
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 10/6109 Page 7
15% Better Than Title 24 Base Case. Option A 5074 sf Climate Zone 4
Energy Efficiency Measures Change Incremental Cost Estimate
Type Min Max Avg
R-38 Roof wi Radiant Barrier -$ -$ -$ -
R-19 Walls (from R-13): 2,590 sf @$0.31 to $0.541sf Upgrade $ 803 $ 1399 $ 1 101
R-30 Raised Floor (from R-19): 3 044 sf @.$0.25to $0.35 Upgrade $ 761 $ 1,065 $ 913
Housewrap -$ -$ -$ -
Low E2 Vinyl Windows U-0.36 SHGC-0.30 -$ -$ -$ -
2 Furnaces: 92% AFUE (from 80% AFUE) Upgrade $ 1000 $ 2400 $ 1700
2 Air Conditioners: 13 SEER, 11 EER (HERS) Upgrade $ 50 $ 150 $ 100
2 Air Conditioners: TXV + Refrig. Charge (HERS) -$ -$ -$ -
R-8 Attic Ducts (from R-6) UPQrade $ 400 $ 600 $ 500
Reduced Duct LeakaQelTestinQ (HERS) -$ -$ -$ -
2 50Gallon Gas Water Heaters: EF-O.62 -$ -$ -$ -
Pipe Insulation -$ -$ -$ -
Total IncrelTlental Cost of Energy Efficiency Measures: $ 3,014 $ 5614 $ 4,314
Total Incremental Cost per Square Foot: $ 0.59 $ 1.11 $ 0.85
15% Better Than Title 24 Base Case, Option B 5074 sf Climate Zone 4
Energy Efficiency Measures Change Incremental Cost Estimate
Type Min Max Avg
R-38 Roof wi Radiant Barrier -$ -$ -$ -
R-19 Walls (from R-15): 2,590 sf @$0.15 to $0.40/sf Upgrade $ 389 $ 1,036 $ 712
R-19 Floor -$ -$ -$ -
Housewrap -$ -$ -$ -
Super Low E Vinyl Windows, U=0.36, SHGC-0.23,
1151.8 sf@$1.4O-$1.75/$f Upgrade $ 1,613 $ 2016 $ 1814
I (2) Furnaces: 90% AFUE (from 80% AFUE) Upgrade $ 1000 $ 2000 $ 1500
Air Conditioners: None -$ -$ -$ -
R-6 Attic Ducts -$ -$ -$ -
Reduced Duot LeakagelTesting(HERS) -$ -$ -$ -
(2) 50 Gallon Gas Water Heaters: EF=O.62 -$ -$ -$ -
Total Incremental Cost of Energy Efficiency Measures: $ 3,001 $ 5052 $ 4,028
Total Incremental Cost per Square Foot: $ 0.59 $ 1.00 $ 0.79
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance. 10/6/09 PageS
2.2 Addition to Existing Home
The energy design description of the addition prototype which just meets the 2008
Title 24 Building Energy Efficiency Standards is listed below:
1-Story 1,295 sf Addition, 19.5% glazing/floor area ratio
Energy Efficiency Measures
R-1 9 Roof wI Radiant Barrier
R-13 Walls
R-13 Raised Floor
Low E2 Vinyl Windows, U=O.36, SHGC=O.30
Furnace: 80% AFUE
Air Conditioner: 13 SEER
R-8 Attic Ducts
Reduced Duct LeakagelTesting (HERS)
No Water Heating Calculation Allowed for Addition Alone
Energy Measures Needed to Meet the City's Ordinance
16% Better Than Title 24 Option A 1296 sf
Energy Efficiency Measures Change
Tvpe
R-38 Roof wI Radiant Barrier (from R-19 wlRadiant Barrier):
700 sf @ 0.30 to 0.45/sf Upgrade $
R-13 Walls -$
R-19 Raised Floor (from R~13): 700 sf @ $0.1 0 to $0.25 Upgrade $
Quality Insulation Installation (HERS) Upgrade $
LoW E2 Vinyl Windows U-0.36 SHGC=0.30 -$
Furnace: 80% AFUE -$
Air Conditioner: 13 SEER -$
R-6 Attic Ducts (from R-B) Downgrade $
Reduced Duct LeakagelTesting (HERS) -$
No Water Heating Calculation Allowed for Addition Alone -$
Total Incremental Cost of Energ.y Efficiency Nleasures: $
Total Incremental Cost per Square Foot: $
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 1016/09
Climate Zone 3
Incremental Cost Estimate
Min Max Avg
210 $ 315 $ 263 -$ -$ -
70 $ 175 $ 123
450 $ 600 $ 525
-$ -$ -
-$ -$ -
-$ -$ -
(325) $ (225) $ (275)
-$ -$ --$ -$ -
405 $ 865 $ 635
0.31 $ 0.67 $ 0.49
Page 9
15% Better Than Title 24 Option B 1295 sf Climate Zone 3
Energy Efficiency Measures Change Incremental C.ost Estimate
Type Min Max Avg
R-30 Roof wi Radiant Barrier (from R-19 w/Radiant Barrier):
700 sf @ 0.25 to 0.35/sf Upgrade $ 175 $ 245 $ 210
R-15 Walls (from R-13): 1212 sf@$0.14to$0.18/sf Upgrade $ 170 $ 218 $ 194
R-19 Raised Floor (from R-13): 700 sf @ $0.10 to $0.25 Upgrade $ 70 $ 175 $ 123
Low E2 Vinyl Windows U-0.36 SHGC-0.30 -$ -$ -$ -
Furnace: 90% AFLIE (from 80% AFUE) Upgrade $ 500 $ 1 000 $ 750
Air Conditioner: 13 SEER -$ -$ -$ -
R-6 Attic Ducts (from R-8) Downgrade $ (325) $ (225 $ (275)
Reduced Duct LeakageiTesting (HERS) -$ -$ -$ -
No Water Heating Calculation Allowed for Addition Alone -$ -$ -$ -
Total Incremental Cost of Energy Efficiency Measures: $ 590 $ 1,413 $ 1,001
Total Incremental Cost per Square Foot: $ 0.46 $ 1.09 $ 0.77
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 10/6/09 Page 10
2.3 Low-rise Residential Building
Energy design descriptions of the high-rise residential prototypes which just meet the
2008 Title 24 Building Energy Efficiency Standards:
Low-rise Multi-family Residential: 2-story 8,442 square feet, 8 units, 12.5% glazing
Option 1
Energy Efficiency Measures
R-38 Roof wi Radiant Barrier
R-13 Walls
R-O Slab on Grade
Low E2 Vinyl Windows, U=0.36, SHGC=0.30
(8) Furnaces: 80% AFUE
(8) Air Conditioners: 13 SEER
R-6 Attic Ducts
(8) 40 Gallon Gas Water Heaters: EF=0.62
Option 2
Energy Efficiency Measures
R-38 Roof wi Radiant Barrier
R-13 Walls
R-O Slab on Grade
Low E2 Vinyl Windows, U=0.36, SHGC=0.30
(8) Furnaces: 80% AFUE
Air Conditioners: l\Jone
R-6 Attic Ducts
1(8) 40 Gallon Gas Water Heaters: EF=0.62
Energy Measures Needed to Meet the City's Ordinance
The following energy features have been modified from the Title 24 set of measures so
that the building design uses 15% less TDV energy than the corresponding Title 24 base
case design per the 2008-2011 Build it Green GreenPoint Rated minimum energy
requirement. The incremental first cost to provide that measure in comparison with the
equivalent base case measure is listed to the right.
The incremental energy improvements specified above to meet the proposed Ordinance
requirements are variables selected by designer, builder or owner. There are a number
of considerations in choosing the final mix of energy measures including first cost,
aesthetics, maintenance and replacement.
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 1016109 Page 11
15% Better Than Title 24 Base Case, Option A 8442 sf Climate Zone 4
Energy Efficiency Measures Change Incrementa' Cost Estimate
Tvpe Min Max Avg
R-38 Roof wi Radiant Barrier -$ -$ -$ -
Walls (from R-1S): 10,146 sf@$0.31 to $0.54/sf UDQrade $ 3,145 $ 5479 $ 4,312
R-O Slab on Grade -$ -$ -$ -
Housewrap: 10146 sf @$0.50 to 0.75/sf Upgrade $ 5073 $ 7610 $ 6,341
Low E2 Vinyl Windows U-0.36 SHGC=0.30 -$ -$ $ -
(8) Furnaces: 80% AFUE -$ -$ -$ -
(8) Air Conditioners: 13 SEER -$ -$ -$ -
R-6 Attic Ducts. -$ -$ -$ -
(8) 40 Gallon Gas Water Heaters: EF=0.63 (from 0.62 EF) Upgrade $ -$ 600 $ 300
Total Incremental Cost of Energy Efficiency Measures: $ 8218 $ 13,688 $ 10953
Total Incremental Cost per Square Foot: $ 0.97 $ 1.62 $ 1.30
15% Better Than Title 24 Base Case, Option B 8442 sf Climate Zone 4
Energy Efficiency Measures Change Incremental Cost Estimate
Type Min Max Avg
R-SO Roof wi Radiant Barrier (from R-38 wlRadiant Barrier):
4,221 sf @$0.20 to $0. 15/sf Downgrade $ (844) $ (633 $ (739)
R-21 Walls (from R-13): 10146 sf @$0.45to$0.70/sf Upgrade $ 4,566 $ 7102 $ 5,834
R-O Slab on Grade -$ -$ -$ -
Housewrap: 10146 sf @ $0.50 to 0.75/sf Upgrade $ 5,073 $ 7610 $ 6341
Low 62 Vinyl Windows U-0.36 SHGC=0.30 -$ -$ -$ -
1(8) Furnaces: 80% AFUE -$ -$ -$ -
[(8) Air Conditioners: 13 SEER -$ -$ -$ -
R-6 Attic Ducts -$ -$ -$ -
1(8) 40 Gallon Gas Water Heaters: EF-O.62 -$ -$ -$ -
Total Incremental Cost of Energy Efficiency Measures: $ 8,795 $ 14,079 $ 11,437
Total Incremental Cost per Square Foot: $ 1.04 $ 1.67 $ 1.35
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 10/6/09 Page 12
Renovations or Alterations Covering 2:: 50% of Existing Building
For renovations or alterations that exceed 50% of low-rise multi-family residential
buildings, the City's Green Building Compliance Standards specify meeting the
requirements of the Build it Green GreenPoint Rated program. The energy
efficiency requirement for GreenPoint Rated for Existing Homes and Existing Multi-
Family Buildings is normally achieved through the HERS 2 energy rating system.
However, Table B of the Compliance Standards requires that a building in this
category must exceed the 2008 Title 24 standards by at least 15%. The cost-
effectiveness of this requirement should be essentially self-evident for the following
reasons:
(1) Upgrades of lighting, plumbing or interior finishes are generally made in
conjunction with upgrades in water heating, mechanical and, in many cases,
improved insulation (if not windows). Including these sorts of changes in the
proposed building will achieve an overall energy performance of 15% better
than the Title 24 standard design without having to target additional
measures to improve energy efficiency.
(2) Incremental savings derived from upgrading the existing building conditions
to the new energy measures will generally be much larger than the savings
associated with the case study in Section 2.3 above. Therefore, the overall
cost-effectiveness of complying with this section of the ordinance is likely to
be substantially greater than for new construction.
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 1016109 Page 13
2.4 High-Rise Residential Building
Energy design descriptions of the high-rise residential prototype which just meet the
2008 Title 24 Building Energy Efficiency Standards:
High-rise Residential: 4-story 36,800 sf, 40 units,
Window Wall Ratio = 35.2%
Energy Efficiency Measures
R-30 Roof
R-19 Metal Stud Walls
R-O Raised Slab
Low E2 Vinyl Windows, U=0.36, SHGC=0.35
Room PTACs: HSPF=7.2, EER=10.2 (No Ducts)
Central DHW Boiler AFUE=82.7%
High-rise Residential Energy Measures Needed to Meet the City's Ordinance.
Incremental energy efficiency measures to meet the Ordinance have been evaluated for
the above high-rise residential building. The following features have been modi'fied 'from
the Title 24 measures so that this building usees at least 15% less TDV energy than the
corresponding base case design. The incremental first cost to provide each measure in
comparison with the equivalent base case measure is listed to the right in the following
tables.
15% Belter Than Title 24 Base Case. Option A 36800 sf
Energy Efficiency Measures Change Incremental Cost Estimate
Type Min Max Avg
R-30 Cool Roof (Reflectance-a, 70, Emmittance=0.75);
9,200 sf @ $0.25 -$0,40/sf Upgrade $ 2300 $ 3,680 $ 2,990
R-19 Metal Stud Walls -$ -$ -$ -
R-O Raised Slab -$ -$ -$ -
Low E2 Vinyl Windows, U=0,36, SHGC=0.25
6,240 sf @ $1.40 -$1 ,60/sf Upgrade $ 8,736 $ 9984 $ 9,360
Room PTACs: HSPF=7,84, EER=11 ,2 (No Ducts) 80
units @ $150 -$250/unit Upgrade $ 12 000 $ 20 000 $ 16 000
Central DHW Boiler AFUE=82. 7% -$ -$ -$ -
Total Incremental Cost of Energy Efficiency Measures: $ 23,036 $ 33,664 $ 28,350
Total Incremental Cost per Square Foot: $ 0.63 $ 0.91 $ 0.77
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 1016/09 Page 14
15% Better Than Title 24 Base Case, Option B 36800 sf
Energy Efficiency Measures ! Change Incremental Cost Estimate
T'-e Min Max Avg
R-30 Roof -$ -$ $ -
R-19 Metal Stud Walls -$ $ -$ -
R-O Raised Slab -$ -$ -$ -
Low E2 Vinyl Windows, U=Q.36, SHGC=0.25
6,240 sf @ $1.40 $1.60/sf Upgrade $ 8736 $ 9984 $ 9,360
Room PTACs: HSPF=7.84, EER=11.2 (No Ducts) 80
units @$150 $250/unit Upgrade $ 12000 $ 20,000 $ 16,000
Central DHW Boiler, AFUE=94%: 2 @ $2000 -$3000 each Upgrade $ 3,000 $ 6,000 $ 4,500
Totallncrernental Cost of Energy Efficiency Measures: $ 23.736 $ 35,984 $ 29860
Total Incremental Cost per Square Foot: $ 0.65 $ 0.98 $ 0.81
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 1016/09 Page 15
2.5 Non-residential Buildings
The following measures were first evaluated so that the following non-residential
prototype building just meets the 2008 standards as follows:
(Al 10,580 sf 1-story building, 24.1 % Window Wall Ratio glazing area
• R-30 attic insulation, R-19 in metal 'frame exterior walls, slab-on-grade 1 st floor;
• NFRC-rated Low-E windows: U-factor=O.SO, SHGCc=0.38 (e.g., Viracon VE 1-2M)
wi no exterior shading
• Lighting = 0.8S2 w/sf: 120 2-lamp 4' T8 fixtures @ 62w each and 100 26w CFLs @
26 w each; 6 SOw-halogens; no lighting controls
• (4) 7.S-ton Packaged OX units: 11.0 EER; 80% AFUE; all standard efficiency fan
motors
• Ducts in conditioned space, R-4.2 duct insulation
• Domestic hot water assumed to be standard gas water heater
LEED vs. Title 24 Building Energy Performance
The United States Green Building Council's LEED rating system applies a different
metric than California's Title 24 to establish a proposed building's energy performance
with respect to the required baseline energy performance. LEED 2009 requires the use
of an Energy Cost Budget (ECB) method to demonstrate that the annual energy cost of
the proposed building is at least 10% less than the annual energy cost of either: (a) the
ASH RAE 90.1-2007 baseline reference building; or (b) the 200S Title 24 standard
design. In either case, all site energy must be included as part of the LEED calculation
of annual energy cost, which includes exterior lighting, interior lighting, process loads and
receptacle loads.
By comparison, the energy performance metric used in California's 2008 Title 24 Building
Energy Efficiency Standards is Time Dependent Valuation (TDV) Energy measured in
KBtu/sf-yr. Process, receptacle and lighting loads in non-residential buildings are fixed in
both the Standard Design and the Proposed Building within the performance calculation
and as such, are considered unregulated energy use components.
A current study for PG&E by Gabel Associates concludes that there is no simple or
consistent correlation between a building that meets California's 2008 Title 24 Building
Energy Efficiency Standards and the extent to which it compares to the LEED baseline
annual energy cost. To resolve this apparent dilemma, Palo Alto's proposed Energy
Efficiency Ordinance (the companion to its Green Building Ordinance) creates a level
playing field for all non-residential buildings by requiring that they must reduce Title 24
TDV energy use by at least 1S%. This is the same approach used by the City of San
Francisco and almost all other jurisdictions implementing green building ordinances
under the 2008 Title 24 standards whereby 1S% > Title 24 is considered equivalent to
meeting the LEED 2009 energy prerequisite.
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 1016109 Page 16
Energy Measures Needed to Exceed the 2008 Standards
The following energy efficiency features have been modified from the above Title 24 set
of measures so that the proposed design uses 15% less TDV energy than the 2008
standards. The added first cost of each measure compared with the equivalent 2008
Title 24 design measure is listed to the right in the tables below, as well as the sum of all
incremental costs.
(An 10,580 sf building: Reduction in 2008 T24 TOV Energy by 15%
• Lighting = 0.693 w/sf: 120 2-lamp 4' T8 fixtures with high
efficiency instant start ballasts and premium T8 lamps,
50 input watts @$35.00 -$60.00/fixture
• 30 (25% of) T8 fixtures on 15 occupant sensors, small offices:
@$75.00 -$100.00 each
• U=0.50, SHGCc;;0.31 (e.g., Viracon VE 2-2M)
1,960 sf @$2.00 -3.00/sq.ft.
• R-30 cool roof Reflectance=0.70, Emmittance=0.75
10,580 sf @ $0.35 -$0.50/sf
Total incremental cost of Ordinance energy measure:
Incremental cost in $/SF:
$ 4,200 -7,200
$ 1 ,125 -1 ,500
$ 3,920 -5,880
$ 3,705 -5,290
$ 12,950 -19,870
Avg = $16,410
$ 1.22 to $1.881sq. ft.
Avg = $1.55 Isf
(A2) 10,580 sf building: (Reduction in 2008 T24 TOV Energy by 10%
• Lighting = 0.693 w/sf: 120 2-lamp 4' T8 fixtures with high
efficiency instant start ballasts and premium T8 lamps,
50 input watts @$35.00 -$60.00/fixture
• (4) Global Energy Group 1400 Series 7.5-ton Packaged DX,
EER = 13.0 @$1950 -$2450 each
• R-30 cool roof Reflectance;;0.70, Emmittance=0.75
10,580 sf @ $0.35 -$0.50/sf
Total incremental cost of Ordinance energy measure:
Incremental cost in $/SF:
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 10/6/09
$ 4,200 -7,200
$ 7,800 -9,800
$ 3,705 -5,290
$ 15,705 -22,290
Avg = $18,998
$ 1.48 to $2.11/sq.ft.
Avg = $1.80 Isf
Page 17
The following measures were first evaluated so that the following non-residential
prototype building just meets the 2008 standards as follows:
52,900 sf 5-story building, 29.1 % Window Wall Ratio glazing area
(A) 52,900 sf 5-story office building which just meet Title 24:
• R-30 attic insulation, R-19 in metal frame exterior walls, slab-on-grade 1st 'floor;
• NFRC-rated Low-E windows: U-factor=0.50, SHGCc=0.38 (e.g., Viracon VE 1-2M)
wI 2' overhang on 1 st floor only
• Lighting = 0.909 w/sf: 720 2-lamp 4' T8 fixtures wI high efficiency ballasts @ 58w
each and 230 26w CFLs @ 26 w each; no lighting controls
• 4 identical Packaged VAV units: Aaron 25 ton, EER=10.4, 10,000 CFM, standard
efficiency fan motors, 30% V A V boxes wI reheat
• Ducts in conditioned space, R-4.2 duct insulation
• Hot water assumed to be standard gas water heater or boiler
Energy Measures Needed to Exceed the 2008 Standards
The following energy efficiency features have been modified from the above Title 24 set
of measures so that the proposed design uses 15% less TDV energy than the 2008
standards. The added 'first cost of each measure compared with the equivalent 2008
Title 24 design measure is listed to tl1e right in the table below, and the sum of all
incremental costs is listed.
(A1) 52,900 sf building: Reduction in 2008 T24 TOV Energy by 15%
• (5) Trane 25 ton units, EER=11.0 @ $9,000 to $13,000 each
wI premium fan motors
• 10 NEMA Premium fan motors on supply & return fans
• R-38 wI Cool Roof 10,580 sf @ $0.40 -$0.50/sf
• Installed LPD=0.785: 720 2-lamp 4' T8 fixtures wI high eff.
instant start ballasts and premium T8 lamps, 50w input
@$10.00 -$20.00/fixture
• Switch 20 « 9%) of 26w CFLs to 18w CFLs
• 100 occupant sensors controlling (2) 2-lamp T8 fixtures;
@$75.00 -$100.00 each
• R-21 in exterior walls: 20,730 sf @ $0.08 -$0. 12/sf
• U=0.50, SHGCc=0.31 (e.g., Viracon VE 2-2M)
8,500 sf @$2.00 -3.00/sq.ft.
Total incremental cost of Ordinance energy measure:
Incremental cost in $/SF:
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 10/6/09
$ 45,000 -65,000
$ 750 -1,250
$ 4,235 -5,290
$ 7,200 -14,400
$ 0 -0
$ 7,500 -10,000
$ 1,660 -2,490
$ 17,000 -25,500
$ 83,345 -123,930
Avg = $103,638
$ 1.58 to $2.34/sq.ft.
Avg = $1.96/sf
Page 18
3.0 Cost Effectiveness
The results summarized in this section are based upon the following assumptions:
• Incremental site electricity (kWh) and natural gas (therms) saved per year are
calculated using the state-approved energy compliance software for the 2008 Building
Energy Efficiency Standards, EnergyPro Version 5 and Micropas Version 8.
• Average utility rates of $0. 14/kWh for electricity and $1.67/therm for natural gas in
current constant dollars as provided by City of Palo Alto Utilities.
• No change (i.e., no inflation or deflation) of utility rates in constant dollars over time
as per City of Palo Alto Utilities.
• No increase in summer temperatures, even though recent scientific studies suggest
that global climate change will increase temperatures in the Western United States,
which in turn will increase energy use associated with air conditioning.
The Simple Payback data includes a cost-effectiveness analysis of the City's ordinance
with respect to each case study building design and assumes:
• No external cost of global climate change (and corresponding value of additional
investment in energy efficiency and C02 reduction) is included.
• The cost of money invested in the incremental cost of energy efficiency measures is
not included.
• City of Palo Alto Utilities incentives that may be applicable in some cases are not
included.
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 1016109 Page 19
3.1 New Single Family Homes
Average Net Incremental
Incremental Annual Energy Simple Payback
Building Description First Cost ($) Cost Savings ($) (years)
1,705sf«)p~-15%) $1,915 $107 17.9
1,705 sf «)ptB-15%) $1,840 $110 16.7
Averages: $1,877 $109 17.3
Annual Reduction in C02-equivalent: 0.41 Ibs./sq.ft.-year
Average Net Incremental
Incremental Annual Energy Simple Payback
Building Description First Cost ($) Cost Savings ($) (years)
2,682 sf «)p~-15%) $1,525 $165 9.2
2,682 sf «)ptB-15%) $2,686 $177 15.2
Averages: $2,106 $171 12.2
Annual Reduction in C02-equivalent: 0.41 Ibs./sq.ft.-year
Average Net Incremental
Incremental Annual Energy Simple Payback
Building Description First Cost ($) Cost Savings ($) (years)
5,074 sf «)p~-15%) $4,314 $223 19.3
5,074 sf «)ptB-15%) $4,027 $218 18.5
Averages: $4,170 $221 18.9
Annual Reduction in C02-equivalent: 0.28 Ibs./sq.ft.-year
3.2 Addition to Existing Homes
Total Net Incremental
Incremental Annual Energy Simple Payback
Building Description First Cost ($) Cost Savings ($) (years)
1,295 sf Add (OptA -15%) $635 $36 17.5
1,295 sf Add (OptB -15%) $1,002 $41 24.4
Averages: $818 $39 21.0
Annual Reduction in C02-equivalent: 0.24 Ibs./sq.ft.-year
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 10/6/09 Page 20
3.3 Low-rise Multi-Family Residential Building
Total Net Incremental
Incremental Annual Energy Simple Payback
Building Description First Cost ($) Cost Savings ($) (years)
8,442 sf (OptA-15%) $10,953 $461 23.8
8 442 sf (OptB-15%) $11,437 $454 25.2
Averages: $11,195 $458 24.5
Annual Reduction in C02-equivalent: 0.32 Ibs./sq.ft.-year
3.4 High-rise Multi-Family Residential Building
Average Net Incremental
Incremental Annual Energy Simple Payback
Building Description First Cost ($) Cost Savings ($) (years)
36 800 sf (Opt-A -15%) $28,350 $2,106 13.5
36,800 sf (Opt-B -15%) $29,860 $2,855 10.5
Averages: $29,105 $2,481 12.0
Annual Reduction in C02-equivalent: 0.32 Ibs./sq.ft.-year
3.5 Non-residential Buildings
Total Net Incremental
Incremental Annual Energy Simple Payback
Building Description First Cost ($) Cost Savings ($) (years)
10580 sf (A1) $7,013 $1,534 4.6
10,580 sf (A2) $13,298 $1,638 8.1
Averages: $10,155 $1,586 6.3
Annual Reduction in C02-equivalent: 0.48 Ibs./sq.ft.-year
Total Net Incremental
Incremental Annual Energy Simple Payback
Building Description First Cost ($) Cost Savings ($) (years)
52,900 sf (A 1 ) $71,563 $6,781 10.6
Annual Reduction in C02-equivalent: 0.38 Ibs./sq.ft.-year
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 10/6/09 Page 21
Conclusions
In considering the issue of energy cost-effectiveness, it's worth noting a few points, which
put the above data in a slightly different context.
1. The first cost data for incremental (additional) energy measures is generally
conservative since the average between a low-value and a high-value is used.
Builders could focus on obtaining materials and equipment at the lower end costs
which would reduce the simple paybacks.
2. No significant attempt was made in the case studies presented to optimize cost-
effectiveness by performing multiple computer runs with different combinations of
energy efficiency measures. That approach however, would likely be used for actual
projects where reducing first costs to meet a specified energy performance level may
be the driving force in the design process.
3. As noted in the above assumptions, the predicted rise in temperatures in California
over the next 20 years from global climate change has not been included. Increased
cooling loads due to rising temperatures will increase the energy savings for cooling
system efficiencies and therefore also reduce simple paybacks.
Regardless of the individual building design, occupancy type and number of stories, it is
reasonable to conclude that: (a) the paybacks are equal to or less than the useful life of
the energy measures needed to meet the energy efficiency requirements of the City's
ordinance; and (b) the incremental improvements in the overall annual energy
performance of buildings required to meet the City's ordinance are cost-effective.
However, each building's specific design, occupancy type and the design choices used
to meet the State's energy efficiency standards, and exceed them to meet the
requirements of the City's proposed ordinance, allow for a large range of incremental first
costs and paybacks. As is the case in meeting the requirements of the State's Title 24
energy efficiency standards, a permit applicant complying with the energy requirements
of Palo Alto's proposed Energy Efficiency Ordinance should carefully analyze building
energy performance to reduce incremental first cost and payback for the required
additional energy efficiency measures.
Cost-Effectiveness Study for the Palo Alto Energy Efficiency Ordinance, 10/6/09 Page 22