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California Tax Credit Allocation Committee

California Utility Allowance Calculator (CUAC)

New Construction PR Submission Requirements

The certification and submission requirements below apply to new construction project owners requesting the use of CUAC estimate utility allowances. The CUAC must be prepared by a qualified energy analyst as defined in TCAC Regulation Section 10322(h)(21). All CUAC estimates shall be completed by an independent third party and shall be at the expense of the owner.

Requirements:

  • The original submittal report signed by the qualified professional energy analyst should include the date the CUAC estimate was prepared, the project name for which the estimate was prepared, and each utility type and amount, by bedroom size.
  • The name, address and phone number of the analyst who prepared and certified to the accuracy of the CUAC estimate (NOTE: the preparer and certifying analyst shall be the same person).
  • Proof of the energy analyst’s qualifications to use the CUAC, including a current California Association of Building Energy Consultant’s (CABEC) Certified Energy Analyst (CEA) 2016 certification number and a California Home Energy Rating Systems (HERS) certification number.
  • Energy Modeling: New construction: An energy model shall be completed using the residential performance module (for low rise buildings) or the non-residential performance module (for high rise buildings) in the current version of Energy Pro (for 2018 submittals, that is version 7). Use of other building performance software or modules is not acceptable.
  • The weighted averaging worksheet or the adiabatic surfaces worksheet.
  • A statement that the energy analyst and the owner of the project, the project applicant, and the project’s principals (general partners, members, etc.), are not related parties as defined by TCAC Regulation 10302(gg) and the Internal Revenue Code section 267(b) and 707(b).
  • A statement that the CUAC estimate is based solely on the professional building energy modeling and analysis completed by the qualified professional building analyst signing the CUAC estimate.
  • A copy of the completed California Alternative Rates for Energy (CARE) tariff eligibility analysis done as required by the CUAC User’s Guide (if applicable).
  • A copy of the California Energy Commission’s CF-1R compliance document for the project.

New Construction PIS Submission Requirements:

Owners proposing to utilize the CUAC for determining the utility allowance in lieu of another utility allowance source must indicate in their CUAC package their request of the CUAC and provide the estimated utility allowance amounts as prepared by a qualified energy analyst.  Please review CUAC Regulations Section 10322 (h)21.  Projects utilizing the CUAC are approved for use upon the field verifications being completed.  **For projects using the CUAC where the field verification has not been completed prior to occupancy, the project must use an approved utility allowance source per 26 CFR Section 1.42-10 until the field verification is completed. Owners shall provide the tenants with a 90-day notification prior to the effective date of implementation, with an informative summary about the current utility allowance and the proposed CUAC allowances before the utility allowances can be used in determining the gross rent of rent-restricted units.

Cost for review to be determined. Once all project buildings have completed field verification, owners can submit the required documents via email in a secured file format (i.e. dropbox) to compliance manager Mayra Lozano, mlozano@treasurer.ca.gov.

During the review the project’s energy analyst will be contacted with any questions about the CUAC modeling or documentation, including requests to correct errors. Once the review is complete and the CUAC utility allowance is approved, the quality control firm will provide written documentation of the accuracy of the CUAC report to TCAC, and TCAC will notify the project owner in writing, including an invoice for any additional amount owing.

Energy analysts submitting CUAC estimates for new construction projects shall confirm the energy efficiency measures of projects’ units and buildings as required by the applicable Building Energy Efficiency Standards, Title 24, Part 6 (the Standards). If unable to confirm the energy efficiency measures actually used in the completed units and building(s), the energy analyst shall use conservative default assumptions needed to meet the minimum requirements under the appropriate Standards. The energy analyst shall also identify: the utility provider(s), the appropriate tariffs for gas and electricity, building orientation, the building(s) unit mix, unit floor plan layout(s), and apartment features. This shall be done through direct observation (including field testing or sampling at a minimum rate of 1:7 units), official documentation, or third-party resources. All CUAC estimates shall include all items listed above under Submission Requirements: PR Stage, as well as the following additional items:

  • Architectural drawings for proposed project
  • Title 24 Report (CF-1R or PERF-1 compliance documentation) and CSV’s (hour-by-hour energy end use values) that were used in the analysis
  • Data Collection Spreadsheet
  • CUAC weighted average worksheet (data from Energy Pro (EP) or CBECC-Res Report with monthly averages computed per bedroom type. Use EP version 6 for buildings permitted before January 1, 2017 and EP version 7 for buildings permitted on or after January 1, 2017). Note: this worksheet is not required if the analysis is performed using the “adiabatic surfaces method.”
  • Live files (i.e., .bld files for Energy Pro) from the energy modeling software
  • A completed HERS verification from the energy analyst and evidenced by a HERS verification report that the project has all the measures required by the Energy Pro (EP) or CBECC-Res analysis. Use EP version 6 for buildings permitted before January 1, 2017 and EP version 7 for buildings permitted on or after January 1, 2017.
  • Bills of lading for all appliances
  • If high efficacy lighting is installed, TCAC requires verification by either (1) a HERS Rater conducting a site visit, or (2) a letter or report submitted by the HERS Rater, which includes photographs evidencing all of the lighting installed in a few units of each apartment type, at a minimum.
  • If CARE rates are being used in the analysis, documentation must be provided verifying that the project’s tenants (will) all meet the utility’s requirements for CARE rates.
  • If PV is included in the analysis, documentation demonstrating how the PV numbers in the CUAC submittal were derived. In addition, the New Solar Homes Partnership (NSHP) agreement or the PPA from the utility provider must be provided in order to determine what percentage serves tenants and what percentage serves the common area.
  • If PV is included, documentation showing that the PV system has been approved/accepted by the utility for activation.
  • Explanation of any testing or sampling done to confirm the constructed units and/or building(s) features.
  • A list of all third party resources used to confirm the constructed buildings features, including copies of the building permits and the name and phone number of any HERS rater(s) who conducted review(s) of the project’s units and /or building(s).
  • Copies of any other documentation relied upon to confirm the energy efficiency measures used in the modeling of the constructed units and/or building(s).
  • Copies of any completed residential compliance forms (CF-1R, CF-2R, CF-3R, etc.) for the project’s units and/or building(s) that were completed at the design phase and upon final construction.
  • A list and justification of any conservative default assumptions (Title 24, Part 6 Standards) that were used by the energy analyst in the event the energy analyst was unable to independently confirm the building(s) energy efficiency measures.
  • TCAC and the quality control reviewer may ask for additional documentation to confirm energy efficiency features.

Note that these requirements are for verification of CUAC analyses. Verification of other energy efficiency or sustainable building measures may be required depending upon the project’s scoring criteria.

For specific questions regarding the CUAC, please contact Compliance Program Manager, Mayra Lozano at (916) 654-6340 or by email.  For more information, please see the TCAC Compliance Manual’s utility allowance chapter.

An annual update of the CUAC is required (Treas. Reg. 1.42-10(c)(2)) and should be submitted to TCAC. A fee is not required for the annual update as long as there have been no changes to the equipment or envelope requiring a new model.