Existing Building Retrofits

Since 1978, new buildings in California have been required to implement increasingly stringent energy efficiency measures, saving home and business owners over $56 billion in energy costs. However, there has been no requirement to improve the energy efficiency of three quarters of California’s 13 million residential buildings and five billion square feet of non-residential structures that were built before 1978. These older buildings offer a large and cost effective opportunity to reduce energy use, cost, pollution and greenhouse gas emissions. Based on the California Energy Commission’s analysis, 15 to 18 percent of 2005 statewide electricity and natural gas energy consumption could be saved by making improvements to existing structures.

The Scoping Plan aims to achieve 20 MMTCO2e of greenhouse gas emission reductions from making existing structures more energy efficient. Work to improve building energy efficiency is especially good for the local economy. This work, referred to as “retrofitting”, generates local construction employment, supports retailers who provide needed services and materials, and keeps more dollars circulating in the local economy.

Several programs are in place to promote energy efficiency retrofits to existing buildings. Click on the items below for more detailed information.

California Public Utility Commission (CPUC)

CPUC regulates electricity and natural gas investor-owned utilities operating in California. These include Pacific Gas and Electric Company, Southern California Edison, San Diego Gas and Electric Company, and Southern California Gas Company. Collectively, the first three companies serve over two-thirds of the total electricity demand throughout California.

The CPUC requires investor-owned utilities to provide incentives for energy retrofits. The long-term goal, by 2020, is to achieve a 40 percent reduction in energy demand by installing energy efficiency improvements in both single and multifamily residences they serve.

Department of Community Services and Development (CSD)

CSD delivers about 50,000 home energy retrofits throughout California to low income households annually. CSD works with a network of more than 100 agencies throughout California that provide services and programs directly in the community.

Two CSD-run programs, the Low Income Home Energy Assistance Program (LIHEAP) and the Weatherization Assistance Program (WAP) are coordinated to provide energy efficiency services to homeowners and renters who qualify.

The American Recovery and Reinvestment Act provided CSD with a $187 million over three years boost to the typical $5 million annual budget for low income energy efficiency home improvements. This additional funding is expected to serve over 43,000 low income homes, saving them money, increasing home value and improving health and comfort. Additional information on CSD

California Energy Commission (CEC)

CEC is required by Assembly Bill 758, signed by the Governor in October 2009, to develop and implement a comprehensive program to achieve greater energy savings in existing residential and nonresidential building stock, including energy assessments, cost-effective energy efficiency improvements, financing options, public outreach, and education efforts. Work to develop the program is scheduled to being in March of 2010.

Additional information on the CEC’s building energy efficiency programs website

Property Assessed Clean Energy (PACE)

PACE Finance Districts are a new option to reduce the burden of up-front analysis and installation costs associated with energy and water efficiency projects. PACE districts were established in 2009 by AB 811, a law that provides cities and counties with the legal authority to designate geographic areas within which they will offer low interest loans to willing residential, commercial and industrial property owners to finance energy and water efficiency improvements and distributed renewable generation. PACE financing is only permitted to cover the costs of improvements that are permanently attached to real property. These loans are repaid as an item on the property owner’s property tax bill and, along with the value of the increased efficiency, are transferred to any future owners upon sale.

>> LATEST NEWS << CEC Acts to Protect and Expand Property-Assessed Clean Energy Financing Options Strongly Rejects the Federal Housing Financing Authority (FHFA) Faulty Logic (CEC Press Release - July 29, 2010)

More information on PACE

More information on AB 811

For questions or comments, please contact: Dana Papke Waters at (916) 324-9615