# Presentation: 492932

## Reducing Peak Demand Through Energy Standards

- Rob Hammon, Ph.D., Principal, ConSol
- Mike Messenger, Demand Response Program Manager, CEC
- Bill Pennington, Buildings & Appliances Manager, CEC
- California

## Load Duration Curves for  California in 2002 

## Diagnostic Testing and Field Verification

- 1995 Field Research - Massive Duct Leaks; Ducts in Attics; Peak Demand Problem
**Focus Standards on Construction Quality**
- Duct sealing, design, location, surface area
- Building envelope sealing
- Air conditioner installation (charge, airflow)
- Insulation and air barrier installation
- SEER – hot/dry climates, fan energy
- Air conditioner over-sizing

## HERS Raters

- Field verification requires diagnostic tools, qualified people, adequate time to verify
- Beyond the capabilities, resources and priorities of local building departments
- Can’t rely solely on installers, third party required – important to builders
- State legislation gives Commission authority to oversee HERS raters

## What does the HERS Rater do?

- Serves as a special inspector
- Completes diagnostic testing and field verification using Commission protocols for specific components and equipment
- Builder can choose to have field verification for 100% of the houses or use sampling
- Specific rules for sampling, re-sampling, and corrective action if necessary

## Components of Quality Construction Compliance Options

- Algorithms for calculating energy implications that can be programmed into compliance software
- "Default" level representing degraded current practice (field research)
- "Target" level representing reasonable improved practice (field research)
- Protocols required for proper installation and field verification

## What Do the Protocols Cover?

- Purpose and Scope – relationship to standards requirements and compliance
- Instrumentation specifications
- Detailed step-by-step procedures for conducting each diagnostic test or verification
- Used for training installers and HERS raters

## Protocols Available

- Air distribution systems (ASHRAE 152 and California Weatherization Standards)
- Ducts buried in attic insulation (Building America)
- Refrigerant charge (superheat and temperature split)
- Airflow and air handler fan wattage (California research)
- Air conditioner sizing (ASHRAE Handbook)
- High quality insulation installation (California and ORNL research; industry task force)
- Thermostatic expansion valve and High EER air conditioner

## Time-Dependent Valuation (TDV)

- Change savings valuation in Title 24
- Abandon source energy flat valuation
- Replace with time-dependent valuation
- Change source energy
- Abandon electricity source energy (mult = 3)
- Replace with TDV energy (hourly factors) based on CEC forecasts of costs
- Distinguish between natural gas & propane

## Time-Dependent Valuation (TDV)

- Replace “flat rate” energy basis
- Transparent to compliance end-user
- Credit for measures that perform on-peak, less for off-peak measures
- Better signals to designers
- Method tied to CEC weather tapes and ACM performance calcs

## How TDV Works (electricity)

- Monday

- Friday

- Energy value

## Building up the Electric TDVs

**Building up the Electric TDVs**

- 1. Start with the CEC Forecast Commodity Costs

- 2. Add the marginal T&D delivery costs as f(temp)

- 3. Adjust to bring to revenue requirement (rate levels)

- 4. Add environmental externality of reduced pollution (optional)

- 5. Convert to equivalent energy units (TDV energy units)

**TDV Energy Value**

**Revenue Neutrality Adjustment**

- Monday        Tuesday    Wednesday    Thursday     Friday

## How Does TDV Compliance Work?

- Used for performance trade-offs(instead of old source energy trade-offs)
- Compliance runs done per usual
- Compliance software enhanced to do hourly base/proposed calculations
- TDV value for each hour multiplied by hourly energy, totaled for annual savings
- Same compliance report printed out

## Changes to Title 24 for TDV

- Delete definition of *SOURCE ENERGY*
- Add definition of *TDV ENERGY*
- Adjust ACM rules for engineering enhancements
- Adjust rules for propane & natural gas
- Adjust ACM output reports

## Compliance Outcomes

- Any electricity saving measure is more valued by TDV than by source valuation
- Difference between flat and TDV indicates demand impact of measure
- Gas measures - minimal difference between flat and TDV gas
- Propane - TDV gives greater value to propane than to natural gas

## Likely Winners/Losers

- Winners
- Peak air conditioning (SEER/EER issue)
- Fenestration (more directional)
- Gas cooling
- Cool roofs
- Other on-peak

- Losers
- Propane (smaller advantage over elec)
- Economizers
- Other off-peak
- No Change
- Insulation
- Res. water heating

## 2005 Standards Changes for Low-Rise Residential Buildings

- High performance replacement windows
- Duct sealing when ducts or air conditioner/furnace is replaced
- Compliance Credit – Quality insulation installation, proper A/C Sizing, Ducts buried in attic insulation, High EER A/C, Efficient A/C Fans, Gas Cooling
- Improved third party verification

## 2005 Standards Changes for Nonresidential Buildings

- Demand Control Ventilation – Ventilation controlled dependent on number of occupants
- Duct Sealing – Newly constructed buildings and duct or air conditioner /furnace replacements
- Envelopes – No insulation on t-bar ceilings, thermal break for metal roofs
- Relocatable public school buildings
- Compliance Credit – Gas cooling, under-floor air distribution

## 2005 Standards Changes for Nonresidential Buildings

- Cool Roofs – low slope roofs, newly constructed buildings & re-roofing
- Acceptance Requirements – insure proper installation of equipment prone to problems
- Day-lighting with skylights in big box buildings
- Indoor Lighting – lower power, unconditioned
- Space Conditioning – VAV, variable speed drives, efficient cooling towers, efficient  motors, better controls

## 2005 Standards Changes for All Buildings

- Time Dependent Valuation – favors peak energy saving measures over off-peak
- New Federal Air Conditioner Standards – SEER 12 (package and split system units smaller than 5 tons)
- New Federal Water Heater Standards –  Energy factor increase of 0.5 (EF of 0.575 for 50 gallon water heaters)

## Why Not Use Rates?

- There are many different rates (which?)
- Rates average the high cost periods and dilute the price signal
- Rates change with policy/political choices

- TDV reflects long-term system costs
- CEC 30 year generation forecast
- Utility T&D cost experience
- Overall revenues to run utility system

## SPP Experimental Rate Forms (Summer)

**CPP Tariff (high)**

**TOU Tariff (high)**

**73.4****¢**

**23.4****¢**

**8.9****¢**

- 0

- 10

- 20

- 30

- 40

- 50

- 60

- 70

- 80

**Cents per kWh**

**Existing Rates**
**Avg. Summer Price**
**13.4 ****¢/kWh**

**26.0¢**

**10.3¢**

**Peak**

**Off-Peak**

**Peak**

**Off-Peak**

**Critical Peak**

**1,500 hrs/yr**

**7,260 hrs/yr**

** ****75 hrs/yr**

**1,425 hrs/yr**

**7,260 hrs/yr**

**SPP Experimental Rate Forms (Summer)**
**                                             ****Residential**

- Peak = 2:00-7:00pm weekdays; Off-Peak =  all other hours
- Critical Peak is dispatched from 2:00 to 7:00, 15 days per year

## Peak period impacts are larger in the hotter climate zones than in the cooler zones

**Source:  Cambridge Resource Associates,  **
**Summer 2003 Impact Evaluation: June 9, 2004**

## Resources

- Demand Responsive Issues:
- Mike Messenger
- Demand Response Program Manager, CEC
- 916-654-4774
- mmesseng@energy.state.ca.us
- Code-Related Issues:
- Bill Pennington
- Buildings & Appliances Manager, CEC
- 916-654-5013
- bpenning@energy.state.ca.us
- Others:
- Rob Hammon, Ph.D.
- Principal, ConSol
- 209-473-5000
- rob@consol.ws