Here is the text version of the Zero Energy Ready Home (ZERH) webinar, “Single Family Homes California Version 2 Training,” presented in August 2024 by the U.S. Department of Energy’s Building Technologies Office. Watch the video.
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Devin Neil:
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Welcome to the U.S. Department of Energy's Zero Energy Ready Home program training on its single family homes California Version 2 program. My name is Devin Neil, and I am the account manager for the ZERH program.
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Please note that all partners must view this orientation, but raters and verifiers must take this and all other required training through their overseeing California HCO or MRO for ZERH so that they may track and record your participation. Watching this orientation via the ZERH website does not fulfill the training requirements for raters or verifiers.
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In this training we will be covering the following sections: Why California Version 2, program structure, mandatory requirements, energy performance target, certification process and oversight, and program documents. I will now pass it off to my colleague Sarah Santiago-Cok, the technical manager for the ZERH program.
Sarah Santiago-Cok:
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Thanks, Devin.
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One important reason for the ZERH program updating to Version 2 is supporting the U.S. Department of Energy's goal to decarbonize the U.S. economy by 2050. In the National Blueprint for the Building Sector, published in April 2024, DOE defines four objectives that will help us achieve this goal in the building sector. Each of the four objectives target a specific metric and includes a goal for 2035 and 2050. These include increasing building energy efficiency, accelerating on-site emissions reductions, transforming the grid edge, and minimizing embodied life cycle emissions. While the ZERH program helps contribute to all four objectives described in this blueprint, the most obvious place where the program contributes is increasing building energy efficiency. The specific goal described by the blueprint for this objective is to reduce on-site energy use intensity in buildings 35% by 2035 and 50% by 2050 with the 2005 energy use baseline.
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Another reason DOE released California Version 2 is due to California's energy code, the building energy-efficiency standards, or BEES, which is updated every three years. Version 2 builds on the most recent version from 2022.
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Unlike previous versions of the program, the Version 2 provides a certification pathway for all residential building types, including multifamily buildings, with any number of stories. This aligns with the ENERGY STAR residential new construction program and enables the whole residential market to participate. ENERGY STAR breaks the market into two areas with its two specifications, single family new homes and multifamily new construction, because of the very different landscapes for the different building types. ZERH is following along and in Version 2 breaks the program into California single family and California multifamily. However, please note that this training focuses on California single family, and we'll discuss the specific building types that are eligible under this program version next.
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The ZERH Single Family Version 2 program covers single family homes, townhomes, and duplexes. It does not apply to any multifamily buildings, which are covered under the ZERH multifamily program for California. Manufactured homes are not eligible for the ZERH Single Family program, either. There's a different ZERH program version for this market segment. It's also important to note that there are two types of the Single Family Version 2 program requirements. There's a state-specific version for California, which is what we're covering in this presentation, and there's also one for all states except California, referred to as national. These two sets of specifications achieve similar levels of efficiency, but ZERH for California uses efficiency metrics and compliance options that harmonize with the California Energy Commission's building energy-efficiency standards. So to reiterate, this presentation covers the California specs, not the national program specifications. Homes outside of California are not eligible for certification under this program version.
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As the previous slides have shown, there are different ZERH program versions for different building types and locations. To determine the appropriate set of program requirements to use for a given project, you need to know its building type, permit date, and location. The chart shown here, which is also available on the Zero Energy Ready Home program requirements website, identifies implementation dates for all program versions including Single Family Version 2 for California. It shows that Single Family Version 2 for California is required for homes with permit dates on or after January 1, 2024. This chart will be continually updated as new revisions to these program versions are released, typically in the third or fourth quarter of each year.
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Program version implementation dates are determined by a project's permit date, and permit dates may be slightly different between different versions of the ZERH program. For ZERH Single Family Version 2 for California, the permit date is the date on which the permit authorizing construction of the building was issued, the date of the rater's first site visit, or the date of the contract on the home. The permit application date is not allowed to be used. Revisions represent minor updates to a program version, whereas new program versions typically contain substantial updates to the program's efficiency and mandatory requirements. New program versions and revisions must be used by the date noted on the ZERH program requirements page but may also optionally be used earlier, as soon as they are finalized and DOE announces and releases them. If a project chooses to certify under a new program version or revision early, before it's required, that certification is also deemed to meet the certification requirements of corresponding earlier versions or revisions. For example, a home meeting ZERH California Single Family Version 2 Revision 1 would also be deemed to meet the certification requirements of ZERH California Single Family Version 2, no revision, or ZERH California Version 1, and could obtain a certificate under that program version if necessary. However, a project must be certified under a single program version and revision. While later versions are deemed to meet the requirements of earlier versions, it is not permitted to take pieces of different versions like the insulation requirements from Version 1 but the water distribution requirements from Version 2 and use them together to earn certification.
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Another important consideration for partners is which version of ZERH will qualify a project for the 45L tax credit. For those of you who are unfamiliar with the 45L tax credit, the Inflation Reduction Act was passed back in August 2022, amending Section 45L of the Internal Revenue Code to provide tax credits for ENERGY STAR and ZERH-certified homes. Homes certified to ZERH can earn a higher tier tax credit, which is worth up to $5,000 per home. Following the IRA passage, the Internal Revenue Service released Notice 2023-65 to provide guidance on 45L. It establishes that to be eligible for the higher tier credit, a home or apartment must be certified under the applicable ZERH program requirements as defined on the DOE ZERH program requirements web page. So the ZERH program version chart we just looked at on the prior slide determines which ZERH program version must be used to be eligible for 45L, based on a project's building type, location, and permit date.
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Next we'll cover the program's structure.
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There are several technical building blocks that apply to all Zero Energy Ready Home Version 2 programs. The first step is to optimize the home's energy efficiency by creating a very well-insulated and air-sealed building enclosure, including high-efficiency space conditioning and water heating equipment, appliances, and lighting. While energy efficiency is a primary piece of the ZERH program, there is more to a Zero Energy Ready Home. Along with efficiency, a ZERH addresses water management, includes features to make the home more comfortable, and incorporates a complete set of indoor air quality protections. The third and final key component is to make the home, which is often the largest investment the buyer will ever make, ready for the future by installing measures for solar readiness, electric vehicle readiness, and electric readiness for space and water heating systems.
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The ZERH program requirements we showed at a high level on the prior slide are structured using a two-part target including both mandatory requirements and a performance threshold. The mandatory requirements ensure that really important or must-have features will be included in each certified home. These measures are considered essential for the home's performance and for some, like building envelope, there's a major opportunity cost of not including them during the home's initial construction. Next, the performance threshold sets the bar for the energy-efficiency level that the home must meet. This efficiency level is demonstrated through the use of energy modeling, and it can be achieved using a variety of energy-efficiency measures that collectively meet the threshold. Compliance with these requirements is verified using rater checklists that are completed by a third party and support the home certification.
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Now I'll pass it off to Jamie Lyons, the Zero Ready program’s technical director, to cover the mandatory requirements for ZERH Single Family Version 2 for California.
Jamie Lyons:
Thanks, Sarah. So I'll take us through the Zero Ready mandatory requirements now in this next section.
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So the first place to look for information on the program’s requirements is the document posted on the Zero Ready website titled “DOE Zero Ready Home Single Family Version 2 California Program Requirements. And the first exhibit in that document that we see a little snapshot of here describes all the mandatory requirements associated with the program. Then later on in the presentation we'll cover the energy performance targets, which are also covered in a separate exhibit within this document.
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So here at a very high level, we'll spell out the mandatory requirements that you'll find in exhibit 1. There's a couple co-requisite certifications, high-performance window requirements, requirements on ducts and air handler location, water heating efficiency, lighting and appliances, indoor air quality, heat pump space heating readiness, heat pump water heating readiness, PV or photovoltaic readiness, and then electric vehicle ready.
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So then we'll walk through each of those in a bit more detail over the next several slides. The first mandatory requirement any builder should recognize is the requirement for two different EPA certifications, the ENERGY STAR and the Indoor AirPlus certifications. DOE Zero Energy Ready Home, the program builds on the very sound building science, better than code efficiency levels, and a complete comprehensive package of IAQ measures that are provided by these two certifications. And together with Zero Energy Ready Home, the Zero Ready program offers the federal government's most advanced energy-efficient building certification program. As far as the versions that are required, we have a little more information on that here. There's different versions of ENERGY STAR and Indoor AirPlus out there. For Zero Ready Single Family Version 2 for California, certifications required under the ENERGY STAR single family new homes California version 3.4 and Indoor AirPlus Version 1 Revision 4 or Version 2. We also want to note that for the Indoor AirPlus certification, the version required for Zero Ready is going to depend on the permit date. Indoor AirPlus, or IAP, Version 1 Rev. 4 is required until projects permitted up until the end of 2025, and then IAP Version 2 certified or gold tier is required for projects permitted starting 1-1-26, January 1, 2026.
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Moving on to windows, Zero Energy Ready has specific mandatory high-performance window requirements. These are the same mandatory window requirements for projects that are complying prescriptively with the 2022 California building energy-efficiency standards, or BEES. It's critical to establish a minimum performance window level for Zero Energy Ready so we don't end up with highly insulated walls and ceilings but windows which can be short circuits and lose a lot of thermal energy and can also potentially create comfort or condensation issues. We can see here the homeowner quote reinforces the connection between high-performance windows and comfort in the home.
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In the table shown here, we can see the required U and solar heat gain coefficient – SHGC – specs for Zero Ready California Single Family Version 2. As I mentioned, these are the same values that are drawn from the California 2022 BEES table 150.1-A, which defines requirements for projects meeting the code prescriptively. The 2022 standards allow for an area weighted average of the windows to satisfy the U and the SHGC requirements. It's important to note that these values are attainable with many windows in the market and that some builders will go beyond these levels and use even higher efficiency window products. and we also point out that projects using passive solar designs are exempt from the U and SHGC requirements, and projects may meet the U and SHGC requirements using area weighted averages for each measure.
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Locating forced-air distribution ducts in the air handler within condition space is a crucial design detail we want to get right when a home is first built. There's significant energy-efficiency and performance penalties from locating ducts in more severe environments that will undermine the home's performance, really over its entire life cycle. So the first picture we see here on the left shows an example of not locating ducts in a conditioned space but instead locating them in an attic where the cool air that they're delivering is going to be exposed to triple-digit heat during the summer. But then on the next picture that we're showing here, we see a duct system that's been designed to be routed through the ceiling and floor framing. Routing ducts within the building – within building cavities like this becomes more feasible in high-performance homes because their much lower heating and cooling loads is going to mean less air flow to deliver and thus smaller duct sizes, which can be easier to route through framing cavities like we see here.
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So this slide shows the actual Zero Energy Ready requirement for ducts and air handler location. There's several strategies builders can use to accomplish this spec. This is a mandatory item in the program because really there's a major opportunity cost of not optimizing this design detail during initial construction. For the Zero Ready California Single Family V2 program, there are special circumstances noted in the V2 rater checklist that harmonize the program requirements with the 2022 BEES standard, and we'll cover these in the next slide.
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So each of the design strategies shown here would satisfy the Zero Ready requirement for duct location. Now just pointing out a few of these: Minisplit ductless systems simply do not have ducts to route, so they satisfy the criteria. Ducts can be located in a vented attic as established in the 2022 California standards, and we'll also note that the roof, ceiling, and duct insulation levels must meet BEES table 150.1-A Option B. And there's several other options shown here on the right that provide ways to keep ducts within the home's thermal envelope. There's pros and cons to the different strategies and methods to make each of them as effective as possible for the builder in terms of design, installation, and aesthetics. We also note that the HVAC air handler must also be located in an optimized conditioned space location, and some of these strategies such as the unvented attic, the air handler can be located in the same space as the ducts.
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Next we're moving on to water heating efficiency, the next mandatory requirement. Water heating energy is a major use in the home, often being the second or third largest end use, and as the graphic shows here in the big picture, water heating energy makes up 18% of total U.S. energy consumption in residential buildings. The water heater efficiency is an important aspect of the system, along with the distribution system for delivering that hot water throughout the home. This is an area where sometimes even high-performance builders can find that they can make some additional performance gains in their home designs. An efficient overall water heating system provides multiple benefits. Of course, it's going to save energy that's used to heat water. It will also end up saving a significant amount of water. And it will also save upstream energy that goes into water sanitation and distribution at the utility level.
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So the Zero Ready V2 Single Family program in California offers three different options for achieving an efficient water heating system to reduce water heating energy in the home. Each of these options will save hundreds or even thousands of gallons of water annually, as well. So the first option that we see here is to design the hot water distribution to qualify as a HERS-verified compact hot water distribution system as specified in the 2022 BEES standards, in Reference Appendix 3.6.5. To meet these requirements, the system's weighted difference must be less than the qualification distance based on the calc procedures in the reference appendix. Additionally, the following field verifications are required: 1-inch max diameter for the hot water piping, the length of 1-inch diameter piping is 8 feet or less, two- and three-story buildings do not have water distribution piping up in the attic unless the water heater is also located in the attic, and eligible recirc systems must be HERS-verified on-demand recirculation systems meeting residential Appendix 4.4.17.
Next, option 2 is to provide an overall highly efficient water heating system. This will consist of a very efficient water heater. If we're using gas, the UEF is going to be 087 or higher, which means tankless, or if we're using electric, the UEF will be at least 2.2, meaning heat pump water heater. In addition we're going to have a well-designed distribution system that contains no more than 1.8 gallons of water stored between the hot water source and the furthest fixture. And this option will use water-conserving fixtures, WaterSense-labeled, for the showerheads and the bathroom faucets.
And the third option is for the home to be certified under the EPA's WaterSense 2.0 program. This will ensure that the home's overall design conserves both water and the energy used to heat water. Zero Ready builders that are already participating in the WaterSense program are very likely to leverage this option.
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The next mandatory provision requires energy-efficient lighting and appliances for Zero Energy Ready Homes. As we're designing homes to be Zero Energy Ready, we need to take advantage of all the different opportunities that will reduce the home's overall energy use. And as these pie charts here show, the heating and cooling energy use in homes has been significantly reduced over the past decades, and Zero Energy Ready Homes are going to take this even further with a very well-insulated air shield envelope coupled with high-efficiency HVAC equipment. So as the percentage of the home's energy use that's used for heating and cooling gets smaller, the relative importance of things like lighting and appliances, those loads, they become a larger proportion of overall energy use as shown by the yellow slice of the pie charts. So it makes sense to make these systems as efficient as possible.
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So California Version 2 for Zero Ready requires ENERGY STAR refrigerators, dishwashers, clothes washers, and clothes dryers, along with bath ventilation fans, but only in cases where the builder is supplying this appliance. For lighting, the program requires 100% LEDs with a small allowance for specialized lighting up to 5%. And we also note that the LED requirements do not apply to lighting fixtures that are part of an appliance, for things like the range hood light or the oven light.
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Indoor air quality and a healthy environment are really critical benefits for the residents of high-performance homes, so Zero Energy Ready Home views IAQ as really an essential component of a high-performance home. And equally important, many Zero Energy Ready builders find that indoor air quality is really one of the key features that their buyers are looking for in a new home. So as this homeowner quote demonstrates, high-performance Zero Energy Ready Homes can really make a powerful difference in how residents feel, such as this case where one of the residents of a new Zero Energy Ready Home saw a remarkable Improvement in their asthma symptoms.
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Zero Energy Ready Single Family V2 for California requires compliance with, as we mentioned earlier, the EPA's Indoor AirPlus certification program, which is a complete package of IAQ protections. We like to say that IAQ is no longer extra credit but rather we need to have a full complete set of provisions that improves indoor environmental quality throughout the home. Some of the key provisions of the Indoor AirPlus package include properly sized and designed ventilation systems, pest management features, combustion safety provisions, the use of low-emission materials like paints and carpets to reduce exposure to VOCs, radon-resistant construction techniques, and provisions to control bulk moisture and water vapor in and around the building. The Zero Ready program requires compliance right now with Indoor AirPlus Version 1 for projects permitted before January 1, 2026. The Zero Energy Ready program will require compliance with Indoor AirPlus Version 2 certified tier, or optionally the higher gold tier, for projects permitted on or after January 1, 2026. This program update for Zero Ready will appear in Revision 1 of the ZERH Single Family V2 for California program specs.
Additionally, the V2 program for California adds a requirement for heat or energy recovery ventilator in IECC climate zones 6 through 8. They're the cold or very cold areas. When we overlay this to California, this only applies to Alpine and Mono counties in the state, which are located in climate zone 6. These are very cold climate zones where the heat exchange capability of this technology really boosts the efficiency of providing ventilation to the building.
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Next up, Zero Energy Ready Homes are made ready for four critical innovations that homeowners may use on day one in their new home or at some point in the future. These innovations revolve around clean energy technologies that also make a home more efficient to operate, and Zero Energy Ready Homes are designed to accommodate them. As this graph shows, U.S. electric generating capacity from renewables has been growing very quickly in the U.S. and is projected to continue along that along that same trend. The readiness measures included in the Zero Ready program are designed to position homes to leverage high-efficiency electrical building technologies as the U.S. electric grid significantly increases its supply of clean electric power. Single Family California V2 includes four separate readiness measures: PV or photovoltaics, heat pump, heat pump water heating, and electric vehicle or EV charging, which we'll cover in the next few slides.
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So first up, Zero Energy Ready Home includes PV or photovoltaic readiness provisions that prepare homes without solar today for more streamlined installation in the future. So there's four simple parts to ZERH PV ready provisions. First off, the max allowable dead and live load ratings of the roof are documented and provided to the owner so that a future PV installation has this information available for use in the design. A potential location for the array is proposed and documentation of that location is provided to the homeowner. A conduit must be run from the attic area beneath the proposed PV location to a location within 8 feet of the home's electric service panel or subpanel. And finally, a space is reserved in the electric panel for a dual pole circuit breaker to be used with the PV system. In addition, there are four exceptions which would exempt the home from completing the PV-ready requirements in California Version 2, and they're shown here in that yellow box. If the home includes on-site solar, or it receives energy from a community solar system, or it's naturally shaded, or it doesn't have enough free roof area for PV array, it can be exempted from the PV-ready checklist. The program requirements list the exact details of when these exceptions would apply.
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The second readiness requirement supports the installation of a future heat pump in homes where gas is initially used as the primary heating source. So to prepare for a future heat pump installation, there must be a dedicated 240-volt branch circuit wiring installed within 3 feet from the furnace and accessible to the furnace with no obstructions, the branch circuit conductors must be rated at 30 amps minimum, the blank cover plate is identified as 240-volt ready, and all electrical components are installed in accordance with California's electrical code. And then at the main electric service panel, there must be a reserve space to allow for the installation of a double pole circuit breaker for a future heat pump heater installation, and the reserve space must be permanently marked as for future 240-volt use. And these readiness measures are not required if the home does not include a gas or propane furnace.
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The third readiness requirement is heat pump water heater readiness. So there's two measures that must be included as part of this requirement, which are part of compliance with California's 2022 building standards. So before getting into the details of this requirement, note that if you already have an electric water heater you won't need to worry about the requirement, because there's an exemption. These measures are only required for homes with a gas or a propane water heater. First, there must be a space larger enough in the home to accommodate a heat pump water heater, which according to the 2022 standards is 2 1/2 feet by 2 1/2 feet by 7 feet high. The space can contain the existing water heater.
Second, the main electric service panel shall have a reserved space to allow for the installation of a double pole circuit breaker for the future heat pump water heater installation, and the reserve space is permanently marked as for future 240-volt use. Third, a dedicated 125-volt 20-amp electrical receptacle that is connected to the electric panel with 120- or 240-volt 3 conductor 10-gauge copper branch circuit within 3 feet from the water heater and is accessible to the water heater with no obstructions. And then fourth, a condensate drain that's no more than 2 inches higher than the base of the installed water heater is installed and allows for natural draining without pump assistance. And then finally, there are a few other requirements if the designated space is more than 3 feet from the installed water heater, but this is a less common option and the code would provide the details on that application.
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The fourth readiness requirement is for electric vehicle charging readiness. One scenario for this requirement is when a private garage driveway is provided for the home. In this instance, a powered 40-amp receptacle must be located either in the garage or within 6 feet of the private driveway. The electric service panel must identify the branch circuit as electric vehicle charging. And there are a few instances, however, where these provisions are not required. First, if adding the 40-amp branch circuit to the main panel increases the electric service to the next nominal size, for example one from 150 amps up to 200, there's an exception. Secondly if there is no parking provided for the home, either private or shared, then this branch circuit is not required. Third, if the local electric utility is not able to provide the necessary distribution capacity to support the additional circuit within two years after occupancy, then this requirement may be excluded. If this exception is used, the rater must retain supporting documentation from the local utility. And then fourth, the electric vehicle readiness provisions are not required when supporting the additional circuit will increase the utility side cost to the builder or developer by more than $450 per home. Just like with the previous exception, the rater must retain supporting documentation from the utility if this exception is used.
Sarah Santiago-Cok:
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Great; thank-you, Jamie. So now that we've covered the mandatory requirements for ZERH certification under Single Family Version 2 in California, the other core ZERH requirement is the performance target. This threshold sets the bar for how energy efficient a home must be to meet the program criteria based on energy modeling rather than prescriptive requirements.
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For California there are two ways to meet the energy-efficiency threshold requirements, by achieving an EDR2 efficiency score at least 7 points lower than the 2022 BEES standard design, or by achieving a 15% reduction in the TDV energy use compared to the 2022 BEES standard design. We offer both paths to give flexibility for homes that may have unusually high or low energy use in their respective standard designs, using the parameters from 2022 BEES. So for homes where the BEES standard design EDR scores are already very low, it may be difficult to achieve a 7-point difference, whereas it would be easier for a home with a low BEES standard design TDV energy to achieve a 15% reduction. Conversely, homes with relatively high BEES standard design TDV energy would have a more difficult time achieving the 15% energy reduction and an easier time achieving a 7-point reduction in the EDR2 score. Regardless of which calculation you use to achieve compliance with the ZERH energy-efficiency performance target, all the variables needed to determine whether the home will pass comes from an energy models compliance report, which must be created using software approved by the California Energy Commission.
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During our feasibility analysis, the team looked at energy models in numerous California climate zones and found that the performance target is achievable. While the target was more challenging for mixed-fuel homes and homes located in California climate zone 7 through 10, our prototype homes were all able to pass using a combination of the features listed on this slide. One key strategy to gain quite a bit of credit is to include an energy recovery ventilator, or ERV, with advanced controls. Besides that, increasing the efficiency of space and water heating, locating ducts in conditioned space, and tightening the envelope are also successful strategies to bring homes into compliance with the performance target. We did find that in some cases for mixed-fuel homes, it was necessary to include PV with battery storage to meet the performance target. So keep that in mind as a possible strategy if nothing else seems to be working. But there are also some additional measures that can be used to achieve performance target beyond those shown on this slide, as well.
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We've now covered the main program components for what your building needs to do to earn certification. Now, we'll cover what Builders, raters, and other partners need to do to ensure their home is certified including the program certification process and oversight requirements.
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The certification process for ZERH in California is set up to harmonize with the existing code compliance process. During the design phase, the project team uses the ZERH program requirements to guide the design of a home. Next, an energy consultant models the home using simulation software approved by CEC and can find out if the plan design will meet the required efficiency threshold for ZERH certification. After that, the home is constructed, sticking to the design that will yield the required energy savings and meet all the prescripted requirements of the program. During and after construction, a rater will make site visits to perform inspections and testing, verifying that all ZERH and energy code measures are present and installed correctly. This verification work also covers the ENERGY STAR and Indoor AirPlus certifications for the home. Finally, a DOE-recognized California home certification organization for ZERH oversees the review of project documentation, performs quality assurance, approves the home for certification, and reports certification information to DOE.
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To finish up this training, I'll pass it back to Devin, our ZERH accounts manager.
Devin Neil:
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There are four documents associated with Single Family Version 2 for California that you can find on the website. This slide gives a quick overview of each. The California program requirements, California rater checklist, PV checklist, which is same as the national program PV checklist, and policy record. All describe how to earn certification under ZERH California Single Family Version 2.
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This is where you can find the ZERH California Single Family Version 2 documents on the website. Go to the program requirements page, then click on Single Family Version 2, and this page appears. Two documents we have previously mentioned, the California program requirements and California rater checklist, appear here in that order. The PV checklist can be found under National Program Requirements drop-down, as the California Single Family Version 2 uses the same checklist as the national program.
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Thanks for watching the Zero Energy Ready Home program California Single Family Version 2 training. For more information, please visit the website to view program documents, frequently asked questions, technical Resources, and more. You can also reach out to the ZERH team at zerh@doe.gov. We're happy to answer any technical questions regarding Zero Energy Ready Home program. Thanks for tuning in.