1. Improving Standards Within the Existing Building Marketplace Don Langston Aire Rite Air Conditioning & Refrigeration, Inc. 27 July 2015

2. Why Are The Vast Majority Of California Customers Ok With HVAC Systems Installed Without Permits? 1.Ignorance or Confusion Of The LAW? 2.Perceived Equipment Installation Cost Increase. 3.Perceived Additional Upgrades Required in Homes & Businesses 4.Perceived Inconvenience of Being Inspected. 5.Perceived Delays in Completion Date. 6.Fear of Unpermitted Work Already Done.

3. 130 Pages of New Regulation Will Not Significantly Improve HVAC Energy Efficiency Within Existing Building Stock Hard to keep up with the changes : Where is the value for consumers indicated? How will code compliance benefit contractors? Code enforcement officials struggle with changes, lack of education, resources and consistent application.

4. 2015 More Of The Same To Fix Title 24? More Stringent New Building Regulations Being Applied to Existing Buildings is Only Making the Problem Worse! Albert Einstein: “Insanity is doing the same thing over and over again and expecting different results”

5. AB 758 Provides A Great Opportunity To Target Specific Energy Efficiency Measures Based On The Various Building Types We need to perform field measurements of existing systems to better understand the range of actual system efficiencies. Delivered system efficiency is much lower than commonly accepted. What we can effectively measure will lead to verifiable system improvements. Every system is like a snowflake. While a range of EEM will improve performance, a one size approach should be avoided.

6. IEA ANNEX 36 Report Poor HVAC Installations Undermine Efficiency Programs… and Cost All Parties $$$ An international group studied the impact of quality installation (QI) and quality maintenance (QM) of HVAC systems. QI and QM are based on following rigorous procedures laid out by the American National Standards Institute (ANSI). These standards are the accredited HVAC standards recognized as the international standards for integrity. This collaboration was based on applying the HVAC industry standards for installation and maintenance This study quantified impacts on system performance (e.g., capacity, energy utilization, etc.) related to varying QI and QM practices / attributes for varied equipment applications. From ‘generally accepted wisdom’ … to tested / documented & factual knowledge. 6

7. Duct leakage  The most influential fault on performance Impact: 10 - 30% energy penalty on annual energy consumption Refrigerant charge  The 2 nd most influential fault 30% undercharge: 20% energy penalty 30 % overcharge: 10 to 15% energy penalty 10% undercharge: 2 to 3% energy penalty. Undersized cooling TXV  pronounced in localities with a high number of cooling mode operating hours 14 % more energy used in Houston (40 % undersize) 3 % energy penalty in Chicago. IEA ANNEX 36 QI / QM SENSITIVITY STUDIES (Single Fault Effects to System Performance) Avoiding Efficiency Degradation due to Poor Installations and Maintenance 7

8. TYPICAL HVAC AIR DISTRIBUTION FAULTS Slide 8 Inadequate indoor fan airflow Improper register airflow High static pressure from undersized, poorly installed and/or restrictive duct systems Excessive duct losses through air leakage around connections, along with inadequate insulation Roof curb leakage and/or air bypass Excessive outside air or economizer airflow Excessive air filter restriction

9. What Could Be Done To Promote Title 24? 1 st Make It Easy To Comply: Enable Licensed HVAC Contractors to pull permits on line: Allow the work to start upon application submission for HVAC change outs and other repair related work (contractors work 24-7). Provide expedited inspection processes for contractors with a good track record (those who pull the most permits and do the work correctly the first time). Currently only a very small percentage of municipalities have some type of online permit application capabilities. The City of Los Angeles has an efficient e-Permitting and express permit process as a good example.

10. What Could Be Done To Promote Title 24? 2 nd Promote Uniformity: Promote Requirement and Process Uniformity Between Jurisdictions: Why have a different form for each jurisdiction? (Develop good usable electronic forms and automated processing.) There is some very good talent to help develop these forms here in our state. Develop a standardized form for the retrofits of existing system change outs for all jurisdictions to use. Currently it is a free for all and confusion abounds! Why have different code requirements for some jurisdictions? (Encourage the jurisdictions to join in a market transforming effort by giving up some control.) Why not make energy code compliance inspection a specialty supported by the state utility energy efficiency programs?

11. What Could Be Done To Promote Title 24? 3rd Take the profit out of ignoring the law : Progressive penalties for not pulling permits : Fines Loss of License Jail Time

12. What Could Be Done To Promote Title 24? 4 th Promote Consumer Risk Awareness: Consumers should know that code laws protect them from: Lower building values when work is done without permits. Reward building and homeowners who show proof of pulling permits Code violations can make their structures unsafe. Generally higher monthly utility bills are found on uninspected work. Lacking legal recourse when shoddy work is accepted. Liability issues due to injured workers or those injured by faulty work done by uninsured contractors.

13. Improving the performance of existing buildings. Reducing peak power demand on the grid. Verifying that safe, code compliant and efficient systems being installed for our residents. Improving the delivered cooling efficiency into the conditioned spaces of existing homes and businesses. Being able to verify the efficiency of replaced equipment and calculating it’s impact to the power grid for future planning and projections. What Should AB758’s Ultimate Goal Be

14. QUESTIONS?