Zero Net Energy Buildings Baseline Study and Roadmap City of Palo Alto June 5, 2017

Welcome! Agenda for Today’s Project Kick-Off 10 Minutes – Welcome & Check-ins 45 Minutes – Review Work Plan 5 Minutes – Discussion and Close What is new, anything related to zero energy or carbon?

Introduction to the Team DNV GL staff and associated roles and responsibilities Betty Seto, Project Sponsor Sarah I. Moe, Project Manager Project Team: Matt Fitzgerald Blake Herrschaft Ben Butterworth City Project Lead: Dr. Peter Pirnejad, DSD Collaborators: CPAU, OOS upfront analyses and initial recommendations to create a draft roadmap with policy levers at key intervention points with building owners, operators and local residents

Background on Roadmap to Zero Sustainability and Climate Action Plan (S/CAP) Framework Target: 80X30 Buildings cause ~25% of Palo Alto’s emissions State: California Long-term Energy Efficiency Strategic Plan goals for ZNE residential by 2020, as well as new commercial buildings and 50% of existing buildings to ZNE by 2030. Net energy consumption of zero (annual); Palo Alto: Zero Net Emissions upfront analyses and initial recommendations to create a draft roadmap with policy levers at key intervention points with building owners, operators and local residents

How are Cities are moving the building stock to ZERO emissions? Key Research Question: What is needed for all buildings to achieve their full zero net energy (ZNE) potential through energy efficiency, electrification and on-site renewable energy generation? What policies and programs are needed to achieve this full potential? Discussion Questions: What Cities and partners are doing to plan for, incentivize, and transform cities toward a low-carbon future? What are the major barriers associated with going to zero carbon in the building stock? How can Palo alto leverage upcoming EDR, smart grid technologies and other policy trends to increase efficiency, renewables, energy storage to get Palo Alto to a Zero Net Emissions city? Incentivize and accelerate the planning, approval, financing and deployment of AECs Reduce the time, cost, and uncertainty associated with permitting and interconnecting commercial-scale solar and other DER Leverage ZNE, efficiency, local renewables, energy storage, and other DER to reduce 25 MW of peak energy across San Mateo County, which will strengthen the grid, Examples: Cambridge Boulder San Francisco Santa Monica New York City Burlington VT. Reduce use of natural gas, and minimize the need for new energy infrastructure Create a model project and project elements that can be replicated throughout California and beyond

How will we define project success? Goals of projects: Detailed assessment of Building energy use baseline by building type Create Zero Net Energy Roadmap for various building segments including policies, programs and triggers, to be vetted by key stakeholders, to inform City’s next steps Discussion question: How will the City define project success? upfront analyses and initial recommendations to create a draft roadmap with policy levers at key intervention points with building owners, operators and local residents http://www.cambridgema.gov/CDD/Projects/Climate/~/media/61D783078A4341F5B0006E461248DB3E.ashx

Task 1. Palo Alto Buildings Baseline Study Purpose: Conduct a baseline assessment of energy use in buildings today in Palo Alto based on building type, vintage, and end use to inform the development of ZNE policies and programs. The data analysis is to utilize: Weather-normalized historic electricity and natural gas data from City of Palo Alto Utilities for the years 2005 and 2012-2015 Historic energy consumption data for fiscal years 2007 – 2013, for the following customer segments: single family residential, multifamily residential, commercial, industrial, institutional, and municipal facilities. Estimated energy use by end use for different building types, based on the California Residential Appliance Saturation Survey (RASS) and Commercial End Use Survey (CEUS) for PG&E service territory. Estimated square footage of new buildings, and stock turnover in the existing buildings sector through 2030.

More Data for Task 1 County tax assessor’s office to develop a distribution of building vintage by building type. This data would be combined with estimated energy use by building vintage (e.g., kBtu/square foot) to roughly approximate energy use by building vintage in Palo Alto. City of Palo Alto permit data to analyze replacement rates for key energy-using equipment including furnaces, air-conditioners, windows, roofs and water heaters. Rate of major renovations, additions and remodels for existing buildings, including number of permits and type of permits. Palo Alto Utility program participation rates by customer sector and building type to assess reach and scalability of utility programs as part of the ZNE roadmap. Task 1 Deliverable: buildings baseline assessment that summarizes where electricity and natural gas is consumed in the buildings sector

Task 2. Develop ZNE policies, programs and intervention points New construction/major remodel Permitting Time-of-sale Point-of-sale Mass market/ voluntary Policy Approaches Mandatory ordinances Energy benchmarking/energy disclosure Financial incentives Technical assistance Non-financial incentives (e.g. expedited permitting) Recognition Education/outreach Building Improvements Solar On-site PV Higher efficiency measures Whole building approaches Envelope measures Electrification Commissioning Retro-/monitoring-based commissioning O&M Performance vs. prescriptive ZNE roadmap that both targets the largest energy using sectors by building type and considers current technical, economic and policy potential for energy efficiency, electrification and on-site renewable generation. Purpose: Create “white paper” of proposed ZNE pathway for City of Palo Alto to elicit stakeholder discussion and to understand a range of ZNE policy approaches, which can be applied at different intervention points, associated with a range of building improvement/technology/end use options.

Deliver ZNE Roadmap to City and Stakeholders Roadmap to include: High level estimate of greenhouse gas and energy savings/impacts associated with different policies, using estimated participation rates. Timetable of interim milestones and work streams to achieve the city’s ZNE policy objectives.

Task 3: Stakeholder Workshop Purpose: Present ZNE Roadmap for stakeholder input and refinement Workshop (4 hours, in person) with facilitated discussions/interactive activities to vet policy options City to lead workshop planning, prep and invites) Stakeholders to include: Internal city staff and key stakeholders Phase 1 and Phase 2. This highlevel pathway – next get into implementation of specific systems or programs launch.

Work Breakdown

Thank you! Sarah Moe and Betty Seto Sarah.moe@dnvgl.com : Betty.seto@dnvgl.com 510-414-7064