Chapter 5-Guidelines for 2009 California Solar Incentive Programs

CHAPTER 5: Energy Efficiency
This chapter specifies energy efficiency requirements that shall be met as conditions for
ratepayer‐funded incentives for newly constructed and existing residential and commercial
buildings. The chapter identifies separate energy efficiency requirements for each type of
building. As an alternative to meeting these requirements for specific buildings, program
administrators may choose to use the Alternative Portfolio Energy Savings Approach described
at the end of this chapter. The energy efficiency requirements specified in this chapter are
minimum requirements. Program administrators are encouraged to promote greater levels of
energy efficiency as they find feasible.
Program administrators shall comply with the requirements in this chapter no later than July 1,
2009. Publicly owned utilities (POUs) with peak demand of 200 MW or less as reported for
calendar year 2006 shall comply with the requirements in this chapter no later than January 1,
2010.
Newly Constructed Buildings
Minimum energy efficiency criteria beyond California’s Building Energy Efficiency Standards
(Title 24, Part 6) shall be conditions for the solar energy system incentive programs overseen by
the CPUC, the Energy Commission, and POUs for all newly constructed buildings statewide.44
Residential Buildings
Newly constructed residential buildings shall achieve higher energy efficiency levels than the
requirements of the Building Energy Efficiency Standards (Title 24, Part 6) in effect at the time the
application for a building permit is submitted.
For building permits submitted before August 1, 2009 the applicant is required to meet either of the
following two tiers of energy efficiency:
• Tier I – 15 percent reduction in the residential building’s combined space heating, space
cooling, and water heating energy compared to the 2005 Title 24 Standards.45

• Tier II – 35 percent reduction in the residential building’s combined space heating, space
cooling, and water heating energy and 40 percent reduction in the residential building’s
space cooling energy compared to the 2005 Title 24 Standards.46
For building permits submitted on or after August 1, 2009, the applicant is required to meet either
of the following two tiers of energy efficiency:
• Tier I – 15 percent reduction in the residential building’s combined space heating, space
cooling, and water heating energy compared to the 2008 Title 24 Standards.47
• Tier II – 30 percent reduction in the residential building’s combined space heating, space
cooling, and water heating energy and 30 percent reduction in the residential building’s
space cooling energy compared to the 2008 Title 24 Standards.48
The Tier I level is a minimum condition for participation. Tier II is the Energy Commission’s
preferred level that builders are encouraged to meet. For either Tier I or II, each appliance provided
by the builder shall be ENERGY STAR®49 labeled if this designation is applicable for that appliance.
Solar water heating may be used to assist in meeting the energy efficiency requirements of either
Tier I or Tier II.50
Field verification of energy efficiency measures shall be required and be consistent with Title 24
Standards field verification procedures and protocols in effect at the time the application for a
building permit is submitted. The CF‐1R51 form used to demonstrate Title 24 compliance with the
current Building Energy Efficiency Standards shall be provided with the solar incentive application
to the program administrator as proof of attainment of the Tier I or Tier II level. Compliance

documents shall be completed by persons who are Certified Energy Plans Examiners (CEPE) by the
California Association of Building Energy Consultants (CABEC).
Investor‐owned utilities (IOUs) fund energy efficiency programs through a public goods charge
(PGC) with program oversight by the CPUC. POUs conduct and oversee their own energy
efficiency programs. IOUs and POUs are strongly encouraged to provide energy efficiency
incentives for each tier described in these Guidelines.
Commercial Buildings
Newly constructed commercial buildings52 shall achieve higher energy efficiency levels than the
requirements of the Building Energy Efficiency Standards (Title 24, Part 6) in effect at the time the
application for a building permit is submitted.
For building permits submitted before August 1, 2009 the applicant is required to meet either of the
following two tiers of energy efficiency:
• Tier I – 15 percent reduction in the commercial building’s combined space heating, space
cooling, lighting and water heating energy compared to the 2005 Title 24 Standards.53
• Tier II – 30 percent reduction in the commercial building’s combined space heating, space
cooling, lighting and water heating energy compared to the 2005 Title 24 Standards.54
For building permits submitted on or after August 1, 2009, the applicant is required to meet either
of the following two tiers of energy efficiency:
• Tier I – 15 percent reduction in the commercial building’s combined space heating, space
cooling, lighting, and water heating energy compared to the 2008 Title 24 Standards.55
• Tier II – 30 percent reduction in the commercial building’s combined space heating, space
cooling, lighting, and water heating energy compared to the 2008 Title 24 Standards.56

The Tier I level is a minimum condition of participation. Tier II is the Energy Commission’s
preferred level that builders are encouraged to meet. For either Tier I or II, any equipment or
appliance provided by the builder shall be ENERGY STAR labeled if this designation is applicable
to that equipment or appliance.
Solar water heating may be used to assist in meeting the energy efficiency requirements of either
Tier I or Tier II.57
Compliance documents used to demonstrate Title 24 compliance, including the PERF‐1 form58 and
accompanying supporting forms, shall be provided as proof of attainment of the Tier I or Tier II
levels. Compliance documents shall be completed by persons who are Certified Energy Plan
Examiners (CEPE) by the California Association of Building Energy Consultants (CABEC).
For commercial buildings that are constructed in phases with the shell built first and further energy
systems installed in later phases as tenant improvements, an agreement shall be made between the
building owner59 and the tenant. This agreement shall obligate future tenant improvements to
install lighting, HVAC, and water heating equipment necessary to meet the overall building tier
level that was committed to by the building owner. A copy of the agreement shall be included with
the solar energy system incentive application.
Investor‐owned and publicly owned electric utilities are strongly encouraged to provide energy
efficiency incentives for each tier described in these Guidelines.

Existing Buildings
Energy Audit, Information, and Disclosure
Specific information about energy efficiency measures shall be provided to the building owner. The
intent of the information is for the person who is responsible for paying the utility bill and the
person who is responsible for building operations to receive information on: 1) their building’s
energy use, 2) energy efficiency investigation options for their buildings, and 3) possible energy
efficiency improvements. These persons may not be the same entity for all applications. For these
Guidelines, these persons are referred to as the building owner/manager/ratepayer.

The program administrator or the utilities covered by the program administrators shall provide
information to the building owner/manager/ratepayer before the design and installation of any
proposed photovoltaic system to enable the building owner/manager/ratepayer to make informed
decisions on energy efficiency investments. The building owner/manager/ratepayer shall sign and
provide to the program administrator a copy of the signed disclosure that certifies that this
information was provided to him and identifies which, if any, energy efficiency measures will be
taken. If measures are to be installed after the installation of the solar energy system, then the
building owner/manager/ratepayer shall declare on the disclosure when the measures are expected
to be installed.60
For existing commercial buildings with conditioned floor area of less than 100,000 square feet and
for existing residential buildings, an energy efficiency audit shall be conducted. The program
administrator may allow on‐line or telephone audits or may require onsite energy audits, as they
specify for particular categories of customers. Building owners, managers, and/or ratepayers shall
be responsible for submitting a copy of the audit results with their solar incentive applications. The
information and disclosure shall be provided to the building owner/manager/ratepayer via a Webbased
information portal or paper format. The building owner/manager/ratepayer shall complete
and sign the disclosure form and submit a copy to the program administrator.
Information to Be Provided to the Building Owner/Manager/Ratepayer:
• Most recent 12 months of the building’s energy consumption—this information may be
provided directly by the utility; if so, the program administrator is obligated to assure only
that it was provided.
• List of building energy use assessment services and tools available for use by the building
owner for further investigation—for commercial buildings this shall include information on
available retrocommissioning services.
• List of possible cost‐effective energy efficiency measures applicable to the building.
• List of current utility energy efficiency rebates and incentives that are available.
Disclosures to Be Signed by the Building Owner/Manager/Ratepayer and
Submitted With the Solar Incentive Application:
• Certification that the building owner/manager/ratepayer has received the above
information.
• The energy use assessment services or tools the building owner/manager/ratepayer used to
identify cost‐effective energy efficiency measures that could be installed in the building

• The energy efficiency measures that have been installed, or will be installed prior to or in
conjunction with the installation of the solar energy system.
• If energy efficiency measures are planned to be installed at a later time, the date by which
these measures are planned to be installed.
• A copy of the energy audit report for existing residential buildings and commercial
buildings less than 100,000 square feet.
Existing Commercial Buildings – Benchmarking, Retrocommissioning
and Efficiency Improvements
Benchmarking
For solar energy systems to be eligible for incentives when installed to serve an existing commercial
building, the energy use intensity (EUI) shall be benchmarked61 using Portfolio Manager or the
equivalent energy performance rating for building types that cannot receive a rating by Portfolio
Manager. Portfolio Manager can be accessed on the Internet at
[https://www.energystar.gov/istar/pmpam/].
Building types that are not able to receive an energy performance rating using Portfolio Manager,
shall be benchmarked using the Energy Commission’s equivalent energy performance rating
system.62
Retrocommissioning
Retrocommissioning63 shall be required for all existing commercial buildings that are 100,000
square feet or larger and have a benchmark rating of less than 75, or an equivalent energy
performance rating as determined by the Energy Commission. Retrocommissioning is required to

retrocommissioned include but are not limited to:
• Heating, ventilation, and air conditioning systems and controls.
• Lighting systems and controls.
• Daylighting systems and controls.
• Domestic hot water systems and controls.
• Renewable energy systems and associated equipment and controls.
• Process equipment and appliances specific to hospital, restaurant, and hotel/motel
operations.
• Refrigeration in supermarket and refrigerated warehouses.
Equipment repairs and adjustments and cost‐effective energy efficiency measures identified in the
building retrocommissioning assessment shall be implemented to improve the building’s energy
performance rating. If a building is improved to exceed a rating of 75, further energy efficiency
measures are not required. A building does not need to be re‐benchmarked to receive an incentive.
If equipment/appliance replacement is recommended during the retro‐commissioning process, the
replacement shall be made with ENERGY STAR equipment or appliances, or equipment or
appliances that qualify for utility energy efficiency incentives, whichever is more efficient. IOUs
and POUs are strongly encouraged to provide energy efficiency incentives for retro‐commissioning
and for the installation of cost effective energy efficiency measures, appliances and equipment.
Commitment Agreement
For buildings equal to or larger than 100,000 square feet and with a benchmark or equivalent
energy performance rating of less than 75, retrocommissioning, equipment repairs and adjustments,
and energy efficiency improvements that are identified through a retrocommissioning assessment
shall either be completed prior to or in conjunction with the installation of the solar energy system.
Alternatively, retrocommissioning shall be committed to be completed at a later date by the
building owner/manager/ratepayer through a Commitment Agreement. The Commitment
Agreement shall indicate when the retrocommissioning will begin, and commit the
owner/manager/ratepayer to complete equipment adjustments, or cost‐effective efficiency
improvements identified in the retrocommissioning assessment. The retrocommissioning shall
begin no later than one year after the completion of the installation of the PV system.
Energy Efficiency Exceptions for Existing Commercial Buildings
The specific energy efficiency requirements in these Guidelines forexisting commercial
buildings are not required for the following:
• Agricultural and industrial facilities which are not covered by Portfolio Manager or the
Energy Commission’s equivalent benchmark rating are not required to be benchmarked.

• Energy efficiency is not required to be addressed when solar energy systems are not
serving electricity to a building.
• The energy audit, benchmarking and retrocommissioning are not required for buildings
that have complied with Title 24 requirements for newly constructed buildings during
the last 12 months prior to applying for the solar energy incentive; proof of Title 24
compliance shall be included with the solar energy system incentive application.
• Retro‐commissioning is not required for existing commercial buildings that have a
current ENERGY STAR label.
• Retrocommissioning is encouraged but not required for PBI applicants.
Existing Residential Buildings
For solar energy systems serving an existing residential building, the energy audit, information,
and disclosure requirements shall be met as discussed above.
Energy Audit Exception for Existing Residential Buildings
The energy audit is not required for buildings that have complied with Title 24 requirements for
newly constructed buildings in the past three years before application for a solar energy incentive;
proof of Title 24 compliance shall be included with the solar energy system incentive application.
There is no exception for the other information and disclosure requirements.
Alternative Portfolio Energy Savings
As an alternative to the requirements discussed above, program administrators may instead design
and conduct a program that achieves a total 20 percent energy efficiency savings over the group of
EPBI participants in their SB 1 participation portfolio. This alternative enables program
administrators to pursue different levels of energy efficiency with different program participants
over time. Program administrators shall provide the Energy Commission with a three‐year plan
that describes the initiatives that they will take to achieve this level of energy efficiency savings.
Program administrators shall report annually to the Energy Commission on their progress in
achieving a total 20 percent energy efficiency savings over the group of EPBI participants in their
SB 1 portfolio. Plans shall be reviewed by Energy Commission staff to determine that they will
successfully achieve the 20 percent savings.
The Energy Commission may return the plan to the program administrator for further
development if it deems necessary. Plans shall be considered for possible approval at a regularly
scheduled Energy Commission business meeting, and once approved and implemented shall be
used as an alternative to the specific energy efficiency requirements otherwise required in these
Guidelines. Alternative Portfolio Energy Saving Plans shall be approved by the Energy

Commission at its discretion and may be rejected if the Energy Commission determines the plan
will not result in the requisite 20 percent energy efficiency savings. If a plan is approved, the
program administrators shall be required to report annually on their progress of achieving the 20
percent savings. The Energy Commission may discontinue its approval of a plan or direct an
expansion or modification of the plan if the Energy Commission determines that progress under the
plan to achieve the 20 percent energy savings is not being achieved.
Program administrators may conform to the requirements in the previous sections of this chapter
for any particular EPBI participating buildings in their SB 1 portfolio and establish an alternative
portfolio energy savings plan covering just the remaining EPBI participating buildings. For
example, a program administrator may conform to the requirements in the previous sections for
newly constructed buildings, both residential and commercial, and establish an alternative portfolio
energy savings plan just for existing EPBI participating buildings, both residential and commercial.