Issue #4
May 2007

In this issue...

Southern California Edison Customers: National Leaders in Energy Efficiency

The Affordability Checklist: Measures to Decrease Construction Costs AND Save Energy

Demystifying Multifamily Energy Audits: How Energy Audits Can Help Housing Sponsors and Managers

Southern California Edison Customers: National Leaders in Energy Efficiency

A study released by the Public Utilities Commission in March shows Southern California Edison Customers to be the nation's leaders in greenhouse gas emission reduction through energy efficiency.

SCE reports that total customer response to its energy-efficiency programs during the past five years has saved four billion kilowatt-hours (kWh), or enough energy to power 500,000 homes for an entire year. The savings has reduced green house gas emissions by more than 2 million tons, the equivalent of removing 250,000 cars from the road. SCE's continuing efforts aim to save an additional two billion kWh over the next two years, reducing greenhouse gas emissions by another one million tons.

SCE applauds its customers and would like to encourage ongoing efforts to increase energy efficiency in Southern California. Through participation in the following programs, SCE and its customers can continue to positively impact affordable housing and the planet.

• Designed for Comfort - incentives for rehabilitation of existing affordable multifamily housing - call toll free 866-352-7457, or 760-436-7001, for more information.
• Affordable Housing Energy Efficiency Alliance (AHEEA) - Energy efficiency design assistance and training for affordable housing.
• California New Homes Program (CANHP) - incentives for new construction.
• Multifamily Energy Efficiency Rebate Program - List of rebates for energy efficiency measures.

The Affordability Checklist: Measures to Decrease Construction Costs AND Save Energy

The 20-point Affordability Checklist at BuildingAffordable.com lists ways to limit the cost of construction in affordable housing. A few of the measures on the checklist refer directly to energy efficient systems. What many developers will not realize is that ALL of the measures listed save energy, whether that energy is saved before, during, or after construction. The fewer materials used, the less energy required to manufacture and deliver the materials to the site. Fewer scrap materials require less energy to remove them from the site. Efficient building layouts demand fewer materials, smaller footprints, and less energy to keep comfortable. This article touches on selected measures from the 20-point Affordability Checklist that save energy and money beyond the construction phase.

#2. Calculate the floor-to-exterior wall ratio of your house. Efficient designs have an 8.25 percent ratio or higher. Divide living area by lineal feet of exterior wall.
The floor to exterior wall ratio gets lower by adding corners to a building. In addition to increased quantity of materials needs to house the floor area, each corner provides opportunity for heat transfer, therefore decreasing the efficiency of heating and cooling systems in the building.

#4. Verify your roof and floor spans accommodate 2x10 joists and 2x6 rafters at 24 in. on center.
and
#7. Study the window and door placement, making sure to align openings to your 24 in. on center framing module.
Wood is not the best insulator. By planning around the rafter, joist and stud spacing dimensions, less wood is used in the building envelope, leaving more space for high quality insulation.

#11. Group your mechanical systems in the center of the house to minimize duct runs, piping and electrical feeds.
Shorter ducts require smaller systems, less fan power, and reduce energy loss. They are less costly to construct, easier to maintain, and more energy efficient. To increase efficiency further, place ducts within conditioned space and be sure they are well sealed.

#12. Stack or group plumbing fixtures and heavy appliances.
Beyond saving money on plumbers and materials, grouping fixtures and appliances that require hot water close to the water heater reduces the energy needed to heat water. The farther the hot water has to travel, the more heat is lost through the pipes, and the harder the water heater has to work. Grouping bathrooms, kitchens, and laundry rooms can reduce energy consumption and prolong the life of the water heater.

#18. Create an "envelope" strategy that maximizes the benefits of solar orientation, insulation and sealing to downsize your heating and air-conditioning requirements.
Using ideal solar orientation allows you to downsize monthly utility bills in addition to the size and cost of system installation. If lot dimensions and site considerations limit building orientation control, design the building to shade itself, or landscape in a way that provides shade to the building and surrounding surfaces.

#19. Calculate and optimize your heating and air-conditioning equipment efficiency and size.
Right size your mechanical systems to reduce operation and maintenance costs.

#20. Review your plan for aesthetics and livability.
Remember the purpose of a home and what makes people comfortable. Unsatisfied tenants mean high turnover and the likelihood of additional renovation, which costs, time, materials, money, and energy.

The original 20-point Affordability Checklist.

Demystifying Multifamily Energy Audits: How Energy Audits Can Help Housing Sponsors and Managers

An important principle of energy efficiency is that you should know how much energy you're consuming and why before your carry out an energy efficiency retrofit. This axiom is especially important when housing sponsors are contemplating investments in energy efficiency appliances, equipment, or other building measures with the expectation of reducing operating costs.

Energy audits should be undertaken in all cases where the housing sponsor is seeking to maximize the rate or return on investment or where energy improvements are financed in whole or in part from future energy savings. Furthermore, energy audits are considered an essential component for financial transactions involving existing subsidized housing units to ensue that property and household energy costs remain affordable.

What Is An Energy Audit?

Energy audits evaluate building systems and characteristics that affect energy consumption (building envelop, heating and cooling, hot water, appliances, and lighting) and assess the potential for improving energy efficiency and the relative merits of available energy measures.

Energy audits typically involve three steps:

• Data Collection and Property Inspection. Data is collected on energy use and costs and a physical inspection of the property and energy-related equipment is performed. The physical inspection reviews equipment conditions, past maintenance schedules, remaining useful life, and system performance. Physical inspection may also consider indicators of performance issues such as leaking or foiled heat exchangers, high humidity, poor space temperature control, and comfort concerns.
• Analysis of Utility Costs. The energy audit analyzes utility costs of the existing property. Utility data is trended and benchmarked against similar properties with like heating and cooling requirements, and used to provide estimates of energy savings that may be gained by implementing cost effective conservation measures.
• Energy Efficiency Measures. The energy audit provides a prioritized list of recommended cost-effective energy efficiency improvements to reduce energy costs. Cost-effective energy efficiency improvements are energy measures whose estimated energy savings exceed the installed cost of the energy measure over the measure's useful life. Recommendations are based on engineering and economic analysis and consider factors such as operating hours, equipment efficiency, and building and occupant energy demand characteristics.

Products of an Energy Audit

The audit report will list energy efficiency measures in rank order based on the measure's simple payback period. In the case of simple improvements such as replacing old fluorescent lights with newer, more efficient systems, or insulating hot water distribution piping, the payback period can be a few years or less. Major improvements such as replacing an older boiler or installing new, energy-efficient windows can take much longer. Measures with lower payback periods generally produce higher rates of return on investment.

Minimally, the report produced from the Energy Audits should provide the following information to the project sponsor:

• Current energy usage and costs (KwH, Therms, utility cost)
• Prioritized list of recommended energy efficiency improvements
• Installed cost estimates for recommended energy efficiency measures
• Expected useful life of recommended energy measures
• Annual energy saving estimates (consumption and cost reductions)
• Simple payback period in years for each recommended measures

Here is a sample of the output typically produced from an energy audit completed for the Energy Action program in 2004.

Examining the Audit
The energy improvements in the sample audit will cost $6,950.69; ($9,041 in energy improvement costs - $2,090 in projected rebates).

The property would incur an estimated $46,008 in the form of higher energy bills over the next 10 to 15 years if City Apartments did not implement these recommendations.In short, the energy audit shows that it costs far more in the long run to do nothing than it does to purchase new equipment and upgrade the performance of the property!

Table 1 below show the difference between the cost of energy efficient equipment (after applying rebates) and the value of the energy that equipment will save over time. Table 2 shows the cumulative energy savings over the equipment's useful life.

Table 1

Table 2

Este programa es financiado por los usuarios de las compañías de servicios públicos de California y es administrado por Southern California Edison Company bajo los auspicios de la Comisión de Servicios Públicos de California mediante un contrato con Heschong Mahone Group. Los contribuyentes de California que decidan participar en este programa no están obligados a comprar ningún servicio adicional ofrecido por el contratista. Las marcas registradas usadas aquí son propiedad de sus dueños respectivos. SCE se reserva el derecho a modificar o interrumpir este programa a su criterio o a pedido de la CPUC.

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