What's Happening from Environmental Building News
October 1, 1999

California Utilities Funding Integrated Design

Savings By Design, a program unveiled in June by three of California’s largest utility companies, aims to improve the energy efficiency of new commercial buildings through various strategies, including incentive payments to owners and design teams. The incentives from San Diego Gas & Electric (SDG&E), Pacific Gas & Electric (PG&E), and Southern California Edison (SCE) can provide up to $50,000 per building to design teams and up to $250,000 to building owners for documented energy performance that exceeds the requirements of California’s Title 24 Energy Code. Between them, the three utilities cover a service territory that contains about 85% of all new construction projects in the State.

The incentive payments to designers start at 3¢ for each kWh per year of projected savings for performance that exceeds Title 24 requirements by 15%, and increase to 6¢ at 30% above Title 24 (see chart). Payments to building owners start at 6¢ for performance at 10% above Title 24, climbing to 18¢ per kWh for 30% improvement. PG&E pays higher owner incentives, ranging from 13¢ to 27¢ per kWh saved.

To claim these incentives, the designers must provide computer simulation results (including the computer files) comparing the building energy efficiency against the Title 24 baseline (PG&E will perform simulations for qualifying projects). They must then ensure that the building is constructed to meet these performance specifications. Design assistance from the utilities is another option available to improve performance.

As an alternative to the whole-building approach described above, building owners can claim up to $100,000 in incentive payments for the inclusion of individual systems that are specified to exceed Title 24 requirements. Systems for which such payments are available include:


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