Practice Test Geeks(CPACE) Commercial Property Assessed Clean Energy Practice Test
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Efficiency Improvements Flashcards

7 cards from real CPACE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. A CPACE program requires projects to meet an 'energy savings threshold' for approval. What is the typical minimum ratio of projected savings to assessment payments?

    Answer: Savings must equal or exceed 100% of annual assessment payments (savings-positive requirement)

    Most CPACE programs require that projected annual energy savings meet or exceed annual assessment payments, ensuring the project is cash-flow positive from day one.

  2. Which insulation material installed via CPACE financing offers the highest R-value per inch for tight commercial spaces?

    Answer: Closed-cell spray polyurethane foam (SPF)

    Closed-cell spray polyurethane foam delivers approximately R-6 to R-7 per inch, the highest available R-value per inch of any commonly used insulation material.

  3. A CPACE-financed energy project at a grocery store focuses on refrigeration efficiency. Which measure offers the largest single energy-saving opportunity in refrigerated display cases?

    Answer: Installing LED lighting inside cases combined with anti-sweat heater controls

    LED lighting reduces heat load inside cases (lowering compressor work) while anti-sweat heater controls prevent over-heating of door frames, together delivering significant refrigeration energy savings.

  4. During CPACE project underwriting, an engineer calculates 'avoided cost' to project savings. 'Avoided cost' refers to:

    Answer: The cost of energy that will no longer need to be purchased after efficiency improvements

    Avoided cost represents the future energy expenditures eliminated by the efficiency project, calculated using projected energy rates over the CPACE assessment term.

  5. A CPACE program allows 'bundled projects' that combine multiple efficiency measures. The primary advantage of bundling is:

    Answer: It allows lower-SIR measures to be financed alongside higher-SIR measures when the combined project meets program thresholds

    Bundling permits measures with individually borderline economics (e.g., envelope improvements) to qualify when combined with higher-return measures like HVAC or lighting that bring the overall project SIR above the required threshold.

  6. A CPACE efficiency project targets a building with an ENERGY STAR score of 42. After improvements, the score rises to 78. What practical benefit does the improved score provide?

    Answer: Improved marketability, potential ENERGY STAR certification at 75+, and benchmarking compliance in covered jurisdictions

    An ENERGY STAR score of 75+ qualifies a building for ENERGY STAR certification, enhancing tenant appeal, lease rates, and compliance with benchmarking disclosure laws in many cities.

  7. A CPACE lender evaluates a proposed efficiency project using 'lifecycle cost analysis' (LCCA). What is the primary advantage of LCCA over simple payback period analysis?

    Answer: LCCA accounts for time value of money, escalating energy rates, and total costs over the equipment's full life

    LCCA provides a more complete financial picture by incorporating discounted cash flows, energy price escalation, and long-term maintenance costs across the full project life, unlike simple payback which ignores these factors.