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7.A. - Page 178 of 285 2019 Nonresidential New Construction Reach Code Cost Effectiveness Study higher minimum efficiencies than the federal standards require, the focus of this study is to identify and evaluate cost-effective packages that do not include high efficiency equipment. However, because high efficiency appliances are often the easiest and most affordable measures to increase energy performance, this study provides an analysis of high efficiency appliances for informational purposes. While federal preemption would limit a reach code, in practice, builders may install any package of compliant measures to achieve the performance requirements, including higher efficiency appliances that are federally regulated. 2 Methodology and Assumptions With input from several stakeholders, the Reach Codes team selected three building types—medium office, medium retail, and small hotel—to represent a predominant segment of nonresidential new construction in the state. This analysis used both on -bill and time dependent valuation of energy (TDV) based approaches to evaluate cost-effectiveness. Both methodologies require estimating and quantifying the energy savings associated with energy efficiency measures, as well as quantifying the costs associated with the measures. The main difference between the methodologies is the valuation of energy and thus the cost savings of reduced or avoided energy use. TDV was developed by the Energy Commission to reflect the time dependent value of energy including long-term projected costs of energy such as the cost of providing energy during peak periods of demand and other societal costs including projected costs for carbon emissions. With the TDV approach, electricity used (or saved) during peak periods has a much higher value than electricity used (or saved) during off-peak period S.2 The Reach Code Team performed energy simulations using EnergyPro 8.0 software for 2019 Title 24 code compliance analysis, which uses CBECC-Com 2019.1.0 for the calculation engine. The baseline prototype models in all climate zones have been designed to have compliance margins as close as possible to 0 to reflect a prescriptively -built building.' 2.1 Building Prototypes The DOE provides building prototype models which, when modified to comply with 2019 Title 24 requirements, can be used to evaluate the cost effectiveness of efficiency measures. These prototypes have historically been used by the California Energy Commission to assess potential code enhancements. The Reach Code Team performed analysis on a medium office, a medium retail, and a small hotel prototype. Water heating includes both service water heating (SWH) for office and retail buildings and domestic hot water for hotels. In this report, water heating or SWH is used to refer to both. The Standard Design HVAC and SWH systems are based on the system maps included in the 2019 Nonresidential Alternate 2 Horii, B., E. Cutter, N. Kapur, J. Arent, and D. Conotyannis. 2014. "Time Dependent Valuation of Energy for Developing Building Energy Efficiency Standards." Available at: http://www.energy.ca.gov/title24/2016standards/preruIemaking/documents/2014- 07-09 workshop/2017 TDV Documents 3 EnergySoft and TRC were able to develop most baseline prototypes to achieve a compliance margin of less than +/-1 percent except for few models that were at +/- 6 percent. This indicates these prototypes are not exactly prescriptive according to compliance software calculations. To calculate incremental impacts, TRC conservatively compared the package results to that of the proposed design of baseline prototypes (not the standard design). 3 0 2019-07-25 430