The Impact of California Energy Code on Your Development Project’s Budget

energy efficiency planning, energy planning in California, energy planning guidance in California, energy planning consultants California, Energy Consulting Services.

The Devil is in the details; this is true for just about everything in life, but is especially costly to a development project. More often than not, a sound development project’s undoing comes from little oversights. In the case of an energy plan, it’s unrealistically linking the projected energy systems to the schedule and economic model.

This is a highly possible situation in California if a thorough energy plan has not been conceived from the pre-design stage. State energy regulations can be complex, and stumbling over regulatory hurdles are costly. So how can we prevent this from happening?  

This is the second post of our blog series dedicated to energy planning in California. If you’re just joining us now, you may find the rest of the series of use as well.

Follow the shortcuts:

Part 1 – The Importance of Smart Energy Planning for California Development Projects

Part 2 – The Impact of California Energy Code on Your Development Project’s Budget

Part 3 – 10 Features Developers Need to Know About California Energy Code

Part 4 – Can High-Performance Design Improve ROI on Commercial Developments in California?

Part 5 – Best Practices for Sustainable Development Projects in California

Part 6 – Boosting the Value of Mixed-Use Developments with Proper Energy Planning

 

Best practices to a realistic budget

A budget is an essential aspect to project optimization. If the budget is not realistic, then that creates a variable in the economic model which could tank the ROI. Across the board – look for steady information both on hard and soft costs; understand the timeframe needed for city, state and federal approvals, as well as the information you need to include when applying for permits; and explore the different possibilities that materials and designs can provide. They all are fundamental to having a solid budget.

 

When it comes to energy codes, special attention must be paid to the following three points:
 

1. Identify the energy system’s budget risk factors: When you understand the risks, you can devise an optimal roadmap because you know exactly what to avoid. An exhaustive risk identification helps to design mitigation strategies, finds alternative paths, and establishes costs. Some of the risks include: not meeting inspections; choosing the wrong materials; not exploring different energy modeling options. All of these mean increased workload, and above all, a budget gone overboard.
 

2. Consider energy planning in your development’s economic model: From the moment you start pouring out information to produce a successful proforma, you need to combine materials, prices, technology and activities, all within the frame of the state energy code. So, consider the cost of sustainable materials, design, construction, inspections and approvals. If your project timeline includes management, replacements and substitutions are an input as well.
 

3. Talk with an energy planning and consulting team early in the development process: Your project needs a realistic budget and a strong timeline, and the key point here is to bring onboard the best talent in the field. That means including an energy consultant within your design team. They have a deep knowledge about budgeting, regulations, and energy systems that will increase your ROI and save you money in the lifetime of a product.
 

In closing

Energy planning is about sustainability, optimizing energy usage, minimizing waste, and using the best materials for the environment. But it also involves understanding the intricacies of energy codes at all levels, and actually being able to make the most efficient budget proposal. 

 

Next on this blog series –> 10 Features Developers Need to Know About California Energy Code

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Villa Garcia Apartments

Villa Garcia Apartments is an affordable housing complex in Thousand Oaks, CA that completed a sustainability and energy efficiency renovation in 2017.

E3 California was contracted to complete the CTCAC Sustainable Building Methods (workbook) for the Application and Placed In Service phases, to coordinate with the SoCalREN incentive program, and to field verify the installation of all required energy efficiency measures for CTCAC and SoCalREN.

Originally built in 1964, Villa Garcia completed its first renovation in 2000. Renovations in 2017 include new energy efficient windows, new HVAC heating and cooling units, and lighting within tenant units upgraded to LED.

Project Name: Villa Garcia Apartments
Location: Thousand Oaks, CA
Client: Many Mansions
Green Building Program(s):  CTCAC, SoCalREN Program
Buildings/Units/Stories: Twenty (20) 2-story buildings with 80 tenant units

Villa Del Comanche

E3 California was contracted to complete the CTCAC Sustainable Building Methods (workbook) for the Application and Placed In Service phases, to coordinate with the PG&E MUP incentive program administratively, perform the test-in site assessment, and to field verify the installation of all required energy efficiency measures for the program and CTCAC.

Built in 1979-80, the upgraded energy measures at the property included new HVAC systems rated at 95% AFUE, 14 SEER/11 EER; new vinyl windows with an average U-factor 0.28/ SHGC 0.24; new Shingle Cool Roofing; and Energy Star refrigerators. The calculated percent improvement from existing conditions as determined by the PG&E Multifamily Upgrade program (MUP) was 24%.

Project Name: Villa Del Comanche
Location: Arvin, CA
Client: Highland Property Development, Inc.
Green Building Program(s): CTCAC, PG&E Multifamily Upgrade Program
Buildings/Units/Stories: 7 Buildings; 57 units; 2 stories

Fun Facts: This community development has created quality, affordable housing for hundreds of families in Paso Robles. It received the 2019 Beautification of the Year Award by the Paso Robles Chamber of Commerce.

The HIVE

The Hive is a mixed-use community in uptown Oakland combining existing buildings, historical renovations, and newly constructed buildings. It is a combination of commercial spaces and residential units.

Energy building measures at the property include field verified Quality Insulation Installation (QII), high performance windows and patio doors, a solar water heating system and CRRC cool roofing products. Green building measures include 100% ENERGY STAR appliances in the residential units, 60% drought tolerant landscape, high levels of access to several local amenities and local transportation within ½ mile of the community, promoting community connectivity.

Project Name: The HIVE – 24th Street Flats
Location: Oakland, CA
Client: Stok
Green Building Program(s):  LEED for Homes
Certification Level:  Silver
Buildings/Units/Stories: 3 stories, 33 new residential apartments over a parking structure

Fun Facts: This three story residential building achieved LEED Silver Certification in the Summer of 2016 which contributed to the overall project achieving the LEED for Neighborhood Development certification.

Sierra Vista

E3 administered the completion of the low-income housing tax credit program requirements, California energy code compliance (Title 24 Part 6), California Utility Allowance Calculator (CUAC) for monthly tenant utility estimates, eligibility criteria for incentives and rating standards to qualify for solar incentives, and third-party verification to meet trusted environmental standards for a sustainable, efficient, and healthier home.

Project Name: Sierra Vista I & II
Location: Stockton, CA
Client: Affordable Housing Development Corporation 
Green Building Program(s):  Title 24, HERS, CTCAC/CDLAC, CUAC, and NSHP
Buildings/Units/Stories: 22 Buildings, 215 Units; 2 Stories

Fun Facts: There were 400 original units that were demolished allowing 215 new efficient units to be built.

Schillo Garden Apartments

E3 California was contracted to coordinate with the SoCalREN incentive program, complete the CTCAC Sustainable Building Methods (workbook) for the Application and Placed In Service phases, and to field verify the installation of all required energy efficiency measures for CTCAC and SoCalREN.

Originally built in 1988, the renovations in 2017 include new energy efficient windows, new HVAC heating and cooling units, and lighting within tenant units upgraded to LED.

Project Name: Schillo Gardens Apartments
Location: Thousand Oaks, CA
Client: Many Mansions
Green Building Program(s):  CTCAC, Southern California Regional Energy Network (SoCalREN) incentive program
Buildings/Units/Stories: Four (4) buildings, 29 tenant units, 2-stories

Oak Park Apartments

E3 administered the completion of the low-income housing tax credit program requirements, California energy code compliance (Title 24 Part 6), California Utility Allowance Calculator (CUAC) for monthly tenant utility estimates, eligibility criteria for incentives and rating standards to qualify for solar incentives, and third-party verification to meet trusted environmental standards for a sustainable, efficient, and healthier home.

Project Name: Oak Park 3 & 4 
Location: Paso Robles, CA
Client: Affordable Housing Development Corporation 
Green Building Program(s):  Title 24, HERS, CTCAC/CDLAC, CUAC, and NSHP
Buildings/Units/Stories: 18 Buildings; 151 Units; 2-3 Stories

Fun Facts: This community development has created quality, affordable housing for hundreds of families in Paso Robles. It received the 2019 Beautification of the Year Award by the Paso Robles Chamber of Commerce.

Lavender Courtyard

Lavender Courtyard Apartments is a new construction affordable housing complex in Sacramento, CA that completed in May 2022. E3 administered the completion of the low-income housing tax credit program requirements, California Utility Allowance Calculator (CUAC) for monthly tenant utility estimates, above-code benchmarks while meeting GreenPoint Rated Platinum certification, and third-party verification to meet trusted environmental standards for a sustainable, efficient, and healthier home.

Project Name: Lavender Courtyard
Location: Sacramento, CA
Client: Mutual Housing California
Green Building Program(s): CTCAC/CDLAC, CUAC, GreenPoint Rated, and HERS Third-Party Testing
Buildings/Units/Stories: 1 Building; 53 Units; 4 Stories

Fun Facts: This property offers affordable apartments serving seniors age 62 and over. Mutual Housing California partnered with Sacramento LGBTQ community leaders to offer an affirming community for a diversity of people including Sacramento’s LGBTQ seniors.

Our Services

CTCAC/CDLAC Application and Placed in Service

E3 California has Certified Energy Analysts who provide energy efficiency and renewable energy components of the application and final placed-in-service phase for tax credit programs. Lavender CourtyardOak Park 3 & 4Schillo Gardens ApartmentsSierra Vista I & II, Villa Del ComancheVilla Garcia Apartments

Title 24

Develop compliance calculations and reports that establishes that the building meets or exceeds the energy requirements of the California Building Code. E3 California has Certified Energy Analysts who provide expert and cost-efficient Title 24 solutions. Oak Park 3 & 4Sierra Vista I & II,

HERS Verification (Home Energy Rating System)

HERS Verification (also known as Field Verification and Diagnostic Testing) is a way to ensure that the various features of a home meet the California Building Energy Efficiency Standards. If work requires HERS testing, E3 California has certified HERS Raters who perform field verification and diagnostic testing on the appropriate features to receive the Certificate of Occupancy. Lavender CourtyardOak Park 3 & 4

California Utility Allowance Calculator (CUAC)

The California Utility Allowance Calculator (CUAC) is a California energy use model for calculating utility estimates. The tool provides an estimate of what tenants will pay for utilities and is typically more accurate than a public housing authority utility allowance schedule. E3 California offers a team of certified experts who can provide efficient and accurate utility allowance calculator results. Lavender Courtyard, Oak Park 3 & 4Sierra Vista I & II

HUD Utility Schedule Model (HUSM)

Public Housing Authorities are required to maintain a utility allowance schedule for tenant-paid utilities, tenant supplied refrigerators and ranges, and other tenant-paid housing services. The allowance is used in determining family’s share and the housing authority subsidy. E3 California offers an expert team who can provide utility allowance results.

GreenPoint Rated

GreenPoint Rated is an approved third-party rating system for compliance with California tax incentive programs and is required by several California cities to comply with their green building ordinances. E3 has GreenPoint Raters who are experienced building professionals with specialized backgrounds and training. Our team offers top-level GreenPoint Rater services for all building types.  Lavender Courtyard

LEED for Homes

LEED (Leadership in Energy and Environmental Design) is the most widely used green building rating system in the world. LEED certification allows developers to attract tenants and investors to meet Energy, Sustainability and Governance (ESG) goals. E3 California offers a team of certified experts to get your project through the LEED certification process. The HIVE

45L

45L is a federal tax credit program to offset the costs associated with building energy efficient single family or multifamily properties. The credit provides a dollar for dollar offset against taxes owed or paid in the tax year in which the property is sold or leased.  Our team provides valuable support to maneuver program requirements and to help generate 45L certificate documentation to meet your project tax credit goals.

Energy Consulting

E3 California can provide guidance on implementing strategies or tactics to achieve greater energy efficiency in order to comply with building codes or funding requirements. These strategies and tactics can also lead to improved building operations and healthier environments for tenants. Our goal is to provide high quality analysis to meet your project goals and cost-effective solutions.

Utility Incentive Programs

E3 California provides services for utility incentive programs that require a Certified Energy Analyst (CEA). We work collaboratively with each program with responsiveness and efficiency to achieve project completion. Our team offers support to navigate program requirements and meet project incentive goals. Oak Park 3 & 4Schillo Gardens ApartmentsSierra Vista I & IIVilla Del CamancheVilla Garcia Apartments