1. SDG&E ® Multi-Family Proposed Whole Building Performance Pilot Nathan Bruner Residential Customer Programs San Diego Gas & Electric ® October 21, 2011 © 2011 San Diego Gas & Electric Company. All copyright and trademark rights reserved.

2. 2 Overview  Maximum of 1,000 multi-family units –Estimated 20-25 stand alone projects  Branded under Energy Upgrade California™  Target of 20% average whole building site energy savings  Will serve all segments of multi-family, including low income, moderate income and market rate buildings  Leverage County of San Diego, and City of San Diego, ARRA funds for multi-family through collaboration with program implementer (Herschong, Mahone Group, Inc)  Coordinate existing SDG&E ® Energy Savings Assistance Program  Incorporates multi-family HERCC recommendations

3. 3 HMG Training  SDG&E will leverage the County of San Diego ARRA funds earmarked for marketing, outreach and HERS raters training –Program implementation contracted to HMG  HMG’s roles will include –Recruit, train and mentor HERS II multi-family raters –Identify and recruit potential multi-family building owners –Assist owners through the entire process

4. 4 SDG&E Training  SDG&E will offer free BPI Multi-Family Building Analyst trainings –BPI Building Analyst certification will be a pre-requisite –Does not have to be the HERS II multi-family rater –Will sign off on pre- and post-project submittals –Submit Combustion safety testing plan and perform combustion safety testing

5. 5 Raters and BPI Roles  Multi-family assessment will be a consultant driven model –Allows building owners to work with the contractor of their choice  Certified HERS raters will model the buildings –Must use participating HERS rater  BPI-certified analyst will need to sign off on the project scope, pre-assessment, post-assessment, and combustion safety testing plan  Rater will submit all project materials to SDG&E and serve as single point of contact

6. 6 Energy Savings Assistance Program Coordination  Multi-family whole building performance goal is for full coordination with existing Energy Savings Assistance Program  To begin the whole building performance process, interested building owners give permission to serve all customers within proposed building who are eligible for the Energy Savings Assistance Program  The Energy Savings Assistance Program team will service the eligible customers who wish to participate in the program  Owner can then proceed with having the building rated and the Building Energy Baseline set

7. 7 Energy Savings Assistance Program Coordination Process Flow Energy Savings Assistance Program Energy Upgrade California Whole Building Modeled Baseline Modeled Savings Serve Eligible Customers Individual Unit Driven Measures Comprehensive Whole Building Driven Measures

8. 8 Incentive Levels  Incentive levels will be based on total building energy saved, and paid per unit  Tiered incentive structure will be consistent with EUC single- family  Proposed incentive tiers are as follows Site Energy Savings SDG&E Incentive/uni t City of San Diego City of Chula Vista 10%$550$350$550 15%$625$525$625 20%$800$700$800 25%$1,000$875$1,000 30%$1,200$1,050$1,200 35%$1,350$1,225$1,350 40%$1,500$1,400$1,500

9. 9 Incentive Example - 10% Savings 4 units x $550 = $2,200 16 units x $550 = $8,800 40 units x $550 = $22,000

10. 10 QA/QC  Independent third-party will provide QA/QC on behalf of SDG&E with desktop review and field verification –100% pre- and post-review and field inspection  Includes initial QA/QC oversight once proposed project is reviewed and approved by HMG  Post-assessment and field review once project is complete  QA/QC provider will issue notices of completion and project summaries to SDG&E

11. 11 Timeline  May 2011 – HMG and SDG&E begin rater and BPI multi-family training  August 2011 – Begin accepting participating rater materials for verification  October 2011 – Begin accepting project applications  Mid 2012 – All approved multi-family projects completed –Exact date depends on budget and 1,000 unit target