June 2025

Reach Code News Brief: June 2025

New Resources for Single-Family AC to Heat Pump Replacements

Photo of heat pump outside a single family residence

The statewide Local Energy Codes team presented the results of its cost-effectiveness analysis in the May 28th webinar.

The report is an update to the 2022 Single Family Retrofit Cost-effectiveness Study and focuses on an ordinance structure that encourages air conditioner (AC) to heat pump replacement. The methodology, prototype characteristics, and relevant measure packages are retained from the main study.

The study includes updated utility rates, revised costs based on the TECH Clean California incremental cost study data, estimated costs for the AC path, updated and expanded AC path options, and a new cost-effectiveness scenario that considers upcoming proposed zero-NOx emission regulations.

In the oldest (pre-1978) vintage, all three measures analyzed (dual fuel heat pump with existing furnace, standard heat pump space heater, and high efficiency heat pump space heater) were found to be cost-effective using the LSC metric in all climate zones. When using the On-Bill metric, the measures still remained cost-effective in most climate zones.In the newer (1978-1991 and 1992-2010) vintages, the dual fuel heat pump (DFHP Existing Furnace) and the standard efficiency HPSH were found to be cost-effective based on LSC in all cases except for Climate Zone 15 when using both the standard and California Alternate Rates for Energy (CARE) tariff.

The study assumes utility rates escalate over time. Because of the difficulty in predicting how the rates will change, the analysis presents two escalation scenarios (modest and high gas escalation) to represent a range of outcomes. The study also includes a Zero NOx scenario sensitivity analysis due to the Bay Area Air Quality Management District (BAAD) Zero NOx rule, and the proposed California Air Resource Board or South Coast Air Quality Management District (SCAQMD) Zero-NOx rules.

The full suite of resources (report and dataset of all results) can be downloaded here. The webinar materials and recording can be accessed here.


Upcoming Events

July 9-10: CivicWell. 16th Annual California Climate and Energy Collaborative Forum. San Jose

July 10: California Energy Commission: Business Meeting

July 15: Building Decarbonization Coalition: California Policy Call

July 23: 3C-REN training: Multifamily: Energy Code Implementation Series, with 2025 Code Updates

July 24: I-REN C&S Training: Financials of Solar and Storage

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New This Month!

What's New: Cost Effectiveness Explorer


This month, we're taking you on a visual tour of the most recent updates and new capabilities available in the always-free online Cost Effectiveness Explorer.

New Capabilities for Benchmarking and Building Performance Standards

The development team has deployed new capabilities for exploring existing building data for targeting benchmarking and Building Performance Standards. These include  options to visualize a jurisdiction's building stock in new ways (see Images 1 and 2 below) and simulate a covered building scope more precisely.

Cost Effectiveness Explorer Screenshot of Building Estimates for City of San Diego Cost Effectiveness Explorer

Image 1. Users can now customize their data view by changing the x and y axis values (top left). They can also easily exclude buildings over 50,000 ft2 (the statewide threshold for benchmarking) to zero in on building sizes that complement (rather than overlap with) the statewide benchmarking policy (control panel on right).

Cost Effectiveness Explorer Screenshot of Building data with tables

Image 2. Tables below the interactive tools offer more detailed data about specific building types. Users can share different outcomes with colleagues or Council members via screenshot, or by clicking the Download button at the top right of the page and selecting Existing Buildings PDF.

New Policy Design Workspace

The new Policy Design area consolidates and simplifies the opportunity for experimentation, with a single location for saved policies, multiple tabs to easily compare different policy scenarios, and preloaded options for a swifter start (see Images 3 and 4).

Cost Effectiveness Explorer Screenshot of new Policy Design landing page

Image 3. The new Policy Design section offers a consolidated, single workspace for users to explore policy options. Users can view their saved policies, explore different pre-loaded policy options or compare multiple policies side-by-side via multiple tabs.

Cost Effectiveness Explorer Screenshot showing Policy Design comparison capability

Image 4. In this example, the user has created two different options for policy scenarios to evaluate measures for single family residences, a FlexPath option and a prescriptive option. They can easily jump between the two tabs at the top to compare different aspects.

Utility Rate Information Available for Study Results

Users can also now easily identify the source behind the rates that were in the study results they are viewing (See Image 5.)

Cost Effectiveness Explorer Screenshot showing utility rate info

Image 5. Results are generally calculated from electricity and gas rates for the nearest California investor owned utility (IOU). In some locations, rates from other utilities (i.e. LADWP, SMUD, CPAU) were used if they were supported by a study.

The Explorer development team works regularly on incorporating new capabilities and data into the tool. To keep up with the latest updates, visit the Cost Effectiveness Explorer homepage and scroll down to the What's New section.

User assistance is available via a free personal walkthrough or technical support through the messaging bubble in the lower right corner of the homepage.

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This program is funded by California utility customers and administered by Pacific Gas and Electric Company, San Diego Gas & Electric Company (SDG&E®) and Southern California Edison Company under the auspices of the California Public Utilities Commission and in support of the California Energy Commission.

© 2025 Pacific Gas and Electric Company, San Diego Gas and Electric Company and Southern California Edison.

All rights reserved, except that this document may be used, copied, and distributed without modification.

Other Reach Code News Briefs

  • SDGE - A Sempra Energy Utility
  • Southern California Edison - An EDISON INTERNATIONAL® Company
  • PG&E Corporation

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