CPUC / IOU Zero Net Energy Building Activities: Setting the Stage Energy Commission 2015 IEPR Workshop May 18, 2015 Cathleen Fogel, Ph.D. Energy Efficiency Branch California Public Utilities Commission

California’s ZNE Building Goals All new residential construction and all new commercial construction in California will be zero net energy by 2020 and 2030, respectively 50% of existing commercial buildings will be retrofit to ZNE by 2030 All new state buildings and major renovations shall be ZNE (2025) 50% of existing state-owned building area by 2025 shall be ZNE IOUs shall launch and ramp a ZNE K-12 Schools and Community College Pilot Program in 2015-18 IBEW Zero Net IBEW ZNE Center, San Leandro, renovation DPR Construction San Diego Corporate Office , Chip Fox, DG&E, renovation

ZNE Commercial Action Plan “Champions” California Energy Efficiency Strategic Plan (2008) ZNE Commercial Action Plan “Champions”

IOU Programs Supporting ZNE Buildings Codes & Standards Emerging Tech California Advanced Home / Savings By Design “Reach” Building Code Support for Local Govts Workforce training & outreach DPR Construction San Diego Corporate Office , Chip Fox, DG&E One Sky Homes Cottle House in San Jose, Allen Gilliand

Residential new construction CPUC and IOU Zero Net Energy Programs and Activities Residential new construction

California Advanced Home Program: Moving Beyond Percentage Above Title 24 2013 Code Home 2013 20% Home CAHP: Single Family CAHP: Multifamily Low-Rise $300 for program entry CAHP Score of 84 $150 for program entry CAHP Score of 84 $100 for each point up to 75 $50 for each point up to 75 $200 for each point thereafter $100 for each point thereafter

2015 Code Readiness Initiative IOU Support High Performance Attics and Ducts in Conditioned Space: Get the ducts out of hot, hot space High R-value Walls (≤ 0.050 assembly U-Factor) Dedicated design and construction assistance Builder Commitment Post-occupancy monitoring Case studies Financial Support Leverage CAHP incentives Per project incentives ~ About $15,000 per key measure Rollout 3 builders each, PG&E/ SCE by mid-2016; 25 lots/builder

IOU ZNE Pilot Projects De Young ZNE Home, PG&E supported, Photo: Rob Hammon 2014 Honda House, PG&E Supported, Photo: Davis Energy Group (2014) KB Home Zero House, SDG&E Supported. Photo: Ken Hilligoss

What is Current ZNE Residential Home Market Size? Approximately 1,100 ZNE-type homes Mostly near ZNE, but includes 16 ZNE About 0.2-0.4% of market since 2006, but ~1% in 2014 ZNE-type = 30%> Title 24 (all)

Who is pursuing ZNE? Sonoma / Napa 50+ builders have constructed ZNE-type homes in 130 CA cities Sacramento area

Release date June 9, 2015 Launch Workshop at the CPUC

Overall Critical Path

Non-Residential buildings CPUC and IOU Zero Net Energy Programs and Activities Non-Residential buildings

Prop. 39 K-12 Schools and Community College Initiative Five Elements to the Pilot- Target of 13-18 demo buildings Element 1: IOU ZNE Demonstration School Retrofits Element 2: Training Outreach and Recognition Element 3: Institutional Training Element 4: Codes and Standards Element 5: Production Program Development The ZNE Pilot will provide: Design assistance Trainings on how to socialize the ZNE concept with stakeholders (e.g. parents, teachers, students, board members) Ongoing commissioning and construction inspection Training on how to maintain ZNE operations Monitoring, verification And the ZNE Pilot will require: Written commitment to the Pilot A willingness to design and retrofit a ZNE building A healthy budget A willingness to share experiences with other interested schools

Pilot In-Kind Services A Mixture of Funding Sources Prop 39 Allocation School District Funds Pilot In-Kind Services

Number of Demonstration Projects Per Utility (Under development): PG&E 5-7 SCE/SoCalGas 5-7 SDG&E 3-4 Total 13-18 Per School Type: CCC 3-5 K-12 10-13 Prop39@EnergyDesignResources.com

IOUs Support* for ZNE Buildings since 2008 (design support, energy modeling, financial incentives) Just 213 ZNE Bldgs are Known in the U.S. ; CA = 40%

IOU Supported ZNE or ZNE-Ready Bldgs: Energy Use Per Sq Foot is falling Source: ED Data request Sept 2014; IOU self reported data

Challenges: Savings By Design Participation Rates Could Improve…   2006 2007 2008 2009 2010 2011 2012 PG&E Participation Rate 11% 15% 13% 34% 6% 3% SDG&E Participation Rate 16% 12% 26% 5% 41% SCE Participation Rate 14% 9% Source: Savings By Design Market Potentials, Characterization and Best Practices Enhanced Participation Study, p. 2. www.calmac.org Study ID: SCE0357.01 Additional Challenges: 50% free-ridership, energy modeling

ZNE Recognition & Verification

Supporting Early Adopters www.newbuildings.org/zne-communications-toolkit 4/6/2015 ZNE Workshop

Support for Schools, Local Governments, Higher Ed & State Agencies ZNE Early Adopters Leadership Trainings ZNE Trainings ZNE Tours Planning Tools Peer Learning Support for Schools, Local Governments, Higher Ed & State Agencies

CPUC and IOU Zero Net Energy Programs and Activities New research areas

Distribution Planning and ZNE Bldgs Distribution Resource Planning Proceeding (R. 14-08-013) Integration capacity Analysis Locational Value Analysis Optimal locational benefit analysis Distributed Energy Resources growth scenarios IEPR “Trajectory” case IEPR “High Growth” case Very high potential growth, including ZNE Title 24 (and much more) CPUC Customer Distributed Energy Resources Grid Integration Study (launching 2015) What are the expected costs and benefits to the transmission and distribution system of requiring all new homes to be ZNE by 2020, or later? CPUC will adopt NEM successor tariff by end of 2015 (R.14-07-002)

ZNE Compliance Options for Offsite Renewables Proposed research on community-scale distributed energy resources for residential and commercial customers: Permitting requirements Tariff frameworks Least cost options Potential grid impacts Case studies Can community-scale DERs sited close to substation of a development feeder help mitigate the grid impacts of development’s new load, while alleviating need for onsite DERs? How might new IOU “Green Option” (PG&E” Community Solar tariffs support ZNE goals?

Pacific Coast Action Plan on Climate and Energy (2013): Zero Net Energy Focus Invest in clean energy and climate-resilient infrastructure “Transform market for EE and lead the way to “net zero” buildings:” Develop Joint Codes and Standards Roadmap to ZNE Joint comments on DOE Definitions of Zero Energy Buildings Recommended a “ZNE Loading Order:” Deep energy efficiency, best practices for highly efficient buildings On-site Renewables Community Solar Systems Certified RECs CA, OR, WA and British Columbia Exploratorium | San Francisco, CA

IOU Plug Loads Research (2014-16) Miscellaneous Energy Loads Phase I: Best estimates of MEL energy consumption, gaps Literature review of non-intrusive load monitoring methods Phase II: Models? Ideal sample size and time frame for future predictive model? Phase III: Develop and test statistical models

Closing Thoughts: Transform the Market Need to engage and scale efforts of Early Adopters Reduce first costs; work closely with suppliers and builders ZNE homes subdivision pilots ; expand High Performance Walls/ Attics Savings By Design: aim at reducing EUIs Early Adopter cohort support? Greater awareness, education and training in both sectors ZNE Building Recognition and Case Studies Update of ZNE building definition / goal to accommodate off-site renewables when needed is welcome

Thank you! Cathleen Fogel, Ph.D. Senior Analyst Energy Efficiency Branch California Public Utilities Commission cathleen.fogel@cpuc.ca.gov (415) 703-1809 http://www.cpuc.ca.gov/puc/ http://www.cpuc.ca.gov/PUC/energy/Energy+Efficiency/Zero+Net+Energy+Buildings.htm http://www.californiaznehomes.com

CPUC and IOU Zero Net Energy Programs and Activities Extra slides

IOUs Support* for ZNE Buildings since 2008 (design support, energy modeling, financial incentives) Just 213 ZNE Bldgs are Known in the U.S. ; CA = 40%

IOUs Support* for ZNE Buildings since 2008 (design support, energy modeling, financial incentives) Just 213 ZNE Bldgs are Known in the U.S. ; CA = 40%

IOU New Construction Programs Summary Statistics January 2010 – May 2015 Source: 2010-12 EM&V Report; EE Stats, May 13, 2015

Total New Construction Evaluated Savings/ Expenditures Energy Savings Emissions Cost Effectiveness   Million ($) Electric (GWh) Demand (MW) Natural Gas (MM Therms) CO2 (Tons) TRC Reported Gross 129 301 77 5.0 203 Residential: .40-.90 Net 221 54 3.4 147 Commercial: 1.27 - 2.53 Evaluated 220 57 5.6 160 119 30 3.1 87 Commercial: 1.06 - 1.44 Percent Evaluated 95.0% 79.8% 61.3% 96.1% 84.3% 67.2% 5.1 percent of total portfolio expenditures 4 and 4.4 percent of gross portfolio energy and demand savings 2.4 and 3.6 percent of net portfolio energy and demand savings Source: 2010-12 EM&V Report

SW NC/ZNE Programs & Pilots: Evaluated Savings, $$, TRC Source: 2010-12 EM&V Report