Energy Codes & Standards Time Dependent Valuation, a New Source Energy Basis

Gary Fernstrom and Patrick Eilert, Pacific Gas and Electric Company
Doug Mahone and Jon McHugh, Heschong Mahone Group
Brian Horii and Snuller Price, E3
Dan Engel, Consultant

Keywords

Abstract

A new time-dependent source-energy basis for state energy codes is being considered in California. The basis of energy codes has been controversial as the building, electric, and gas industries have vied for approaches consistent with their needs, but which do not necessarily best serve the public interest. California’s current code, Title 24, uses a “ftiel neutral” source-energy budget (kBTU/sq.ft./Yr.) which is differentiated only by climate zone, building occupancy, shape, and glazing area, but which ignores time-dependent costs.

With gas and electric industry deregulation, and impending capacity concerns, it is appropriate to reexamine how Title 24 might be improved to better serve the public interest. Since building investment decision-makers are often not those paying the energy bills, there is an important public benefit associated with properly valuing in codes, energy efficiency measures which make economic sense over the long life ofmost buildings. Additionally, the energy savings benefits of improvements in equipment, materials, and design practices influenced by public policy energy-efficiency programs, may not be captured for society, if overall energy budgets are not appropriately lowered to reflect these improvements.

This joint Pacific Gas and Electric Company (PG&E) ICalifornia Energy Commission (CEC) project studies the opportunity to differentiate source-energy budgets by timedependent values, including commodity cost, and time and temperature-sensitive transmission and distribution marginal cost. This methodology is sustainable and can be implemented without adding complexity to current compliance calculations. Lower utility costs for society will result by facilitating better generation, transmission, and distribution asset utilization,