1. DNV GL © 2013 Confidential April 10, 2014 SAFER, SMARTER, GREENER DNV GL © 2013 Confidential September 8, 2014 Jarred Metoyer ENERGY HVAC Permit Study 1 Public Webinar

2. DNV GL © 2013 Confidential April 10, 2014 Study Background – Code Compliance Program Design 2

3. DNV GL © 2013 Confidential April 10, 2014 Code Compliance Objectives 3 Indicators of effectiveness 1.% increase of final permits – HVAC Permit Study is the baseline 2.Increased number of units entered into HERS registries 3.Improvement in permit compliance with code 4.Cost effective energy savings achieved

4. DNV GL © 2013 Confidential April 10, 2014 Project Task Overview Project builds on CPUC HVAC Market Effects and Impact Evaluations Tasks 1.Compile Data Sources 2.Develop Populations & Sample 3.Coordinate with Codes & Standards Evaluation 4.Building Department Data Collection and Visits 5.Analysis 6.Reporting 4

5. DNV GL © 2013 Confidential April 10, 2014 Compile Data Sources: Field Study Methodology  The team conducted residential site visits at 50 program non-participant sites with new HVAC systems installed between 2010 and 2012  The field assessments begin to provide a market baseline relative to both Title 24 requirements and the IOU work paper baseline assumptions for Quality Installation (QI) programs  Identical protocols were followed for QI program participants.  Ideally, non-participants should be meeting Title 24 mandatory rules for HVAC replacement.  IOU workpapers assume higher duct leakage, lower system airflow, and a greater amount of oversizing for non-participants  All sites completed in 2013 5

6. DNV GL © 2013 Confidential April 10, 2014 Permit Study Data Collection  Permit data sought for all residential sites in CPUC HVAC study  Permit data sought for additional residential and non-residential sites with known HVAC change-outs in 2010 - 2012 – General market surveys conducted by CPUC – Commercial Upstream Program (high efficiency units)  Research Questions: – What is the permitting rate for HVAC replacements of residential and commercial systems in the 2010-12 timeframe? – Is there a statistically significant difference in duct leakage, system airflow, and system oversizing between permitted and non-permitted installations? 6

7. DNV GL © 2013 Confidential April 10, 2014 General Findings  Residential – 1 of over 50 building departments searched kept residential HERS compliance documents, all others COULD require them but they do not – Permitting rate 20 out of 52 sites completed – 38% – Additional sites pending review  Non-residential – Federal and historic building exemptions from Title 24 – Schools – Projects in this study of 2010-12 installations were to go through Division of the State Architect, No permits found at building departments – Prop 39 efforts to streamline will be in effect for next study – Permitting rate (excluding 88 government or school buildings) – 70 Permits out of 269 Sites – 26% 7

8. DNV GL © 2013 Confidential April 10, 2014 Key Findings: Duct Leakage  The Title 24 requirements specify <15% duct leakage.  There were many non-participant sites with duct leakage greater the Title 24 maximum of 15%.  However, on average the leakage was lower than the QI program assumption of 24% and the average is not far above 15%. 8 Total Duct Leakage Type Sample Size Average Duct Leakage (%) Standard Error 90% Confidenc e Interval Relative Precision Permitted 1516.12.313.8023.6% Non- permitted 2016. 91.883.0918.3%

9. DNV GL © 2013 Confidential April 10, 2014 Additional Duct Leakage Results 9

10. DNV GL © 2013 Confidential April 10, 2014 Key Findings: Airflow  The Title 24 minimum specifies system airflow at 400 CFM/ton.  The QI program assumed a 350 CFM/ton baseline.  Non-participant sites often had airflow below the 350 CFM/ton baseline assumed by the program.  Title 24 does not take into account the higher static pressures for actual systems which may be the key driver of the low airflows. 10 Type Sample Size Average Airflow (CFM/ton) Standard Error 90% Confidence Interval Relative Precision Permitted1632822.637.211.4% Non- permitted 2330018.830.910.3%

11. DNV GL © 2013 Confidential April 10, 2014 Additional Airflow Results 11

12. DNV GL © 2013 Confidential April 10, 2014 Key Findings: System Sizing  Title 24 specifies using Manual J. There is under and oversizing relative to Manual J.  Non-participant systems were oversized (on average) by 13%. 12 Sizing Interval Permitted (n=19) Non-permitted (n=31) Oversized > 1 ton69 Oversized 0.5-0.948 Sized within 0.569 Undersized 0.5-0.912 Undersized > 1 ton23

13. DNV GL © 2013 Confidential April 10, 2014 Additional System Sizing Results 13

14. DNV GL © 2013 Confidential April 10, 2014 SAFER, SMARTER, GREENER www.dnvgl.com Questions? 14 Jarred Metoyer or Mary Anderson