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7.A. - Page 71 of 285 2019 Energy Efficiency Ordinance Cost-effectiveness Study Less information was available for the costs associated with gas infrastructure for low-rise multifamily development. The typical cost in Table 6 for the On -Bill methodology is based on TRC's City of Palo Alto 2019 Title 24 Energy Reach Code Cost-effectiveness Analysis (TRC, 2018). These costs, provided by the City of Palo Alto, are approximately $25,100 for an 8 -unit new construction building and reflect connection to an existing main for infill development. Specific costs include plan review, connection charges, meter and manifold, plumbing distribution, and street cut fees. While these costs are specifically based on infill development and from one municipal utility, the estimates are less than those provided by PG&E reflecting the average cost differences charged to the developer between single family and multifamily in an undeveloped area (after accounting for deductions per the Gas Main Extensions rule). To convert costs charged to the developer to account for the full infrastructure upgrade cost (costs applied in the TDV methodology analysis), a factor of 2.0616 was calculated based on the single family analysis. This same factor was applied to the multifamily cost of $3,140 to arrive at $6,463 (see Table 6). 2.7 Greenhouse Gas Emissions Equivalent CO2 emission savings were calculated based on outputs from the CBECC-Res simulation software. Electricity emissions vary by region and by hour of the year. CBECC-Res applies two distinct hourly profiles, one for Climate Zones 1 through 5 and 11 through 13 and another for Climate Zones 6 through 10 and 14 through 16. For natural gas a fixed factor of 0.005307 metric tons/therm is used. To compare the mixed fuel and all - electric cases side-by-side, greenhouse gas (GHG) emissions are presented as CO2 -equivalent emissions per square foot of conditioned floor area. 3 Results The primary objective of the evaluation is to identify cost-effective, non -preempted performance targets for both single family and low-rise multifamily prototypes, under both mixed fuel and all -electric cases, to support the design of local ordinances requiring new low-rise residential buildings to exceed the minimum state requirements. The packages presented are representative examples of designs and measures that can be used to meet the requirements. In practice, a builder can use any combination of non -preempted or preempted compliant measures to meet the requirements. This analysis covered all sixteen climate zones and evaluated two efficiency packages, including a non - preempted package and a preempted package that includes upgrades to federally regulated equipment, an Efficiency & PV Package for the all -electric scenario only, and an Efficiency & PV/Battery Package. For the efficiency -only packages, measures were refined to ensure that the non -preempted package was cost-effective based on one of the two metrics applied in this study, TDV or On -Bill. The preempted equipment package, which the Reach Code Team considers to be a package of upgrades most reflective of what builders commonly apply to exceed code requirements, was designed to be cost-effective based on the On -Bill cost-effectiveness approach. Results are presented as EDR Margin instead of compliance margin. EDR is the metric used to determine code compliance in the 2019 cycle. Target EDR Margin is based on taking the calculated EDR Margin for the case and rounding down to the next half of a whole number. Target EDR Margin for the Efficiency Package are defined based on the lower of the EDR Margin of the non -preempted package and the equipment, preempted package. For example, if for a particular case the cost-effective non -preempted package has an EDR Margin of 3 and the preempted package an EDR Margin of 4, the Target EDR Margin is set at 3. 16 This factor includes the elimination of the 50% refund for the main extension and adding back in the appliance allowance deductions. LU., 2019-08-01 323