CPACE Efficiency Improvements 3 — Questions and Answers
Question 1: A CPACE lender requires an 'independent engineer review' of a proposed efficiency project. What is the primary purpose of this review?
- To negotiate a lower interest rate for the borrower
- To verify that projected energy savings are technically sound and support loan repayment (Correct answer)
- To ensure the contractor is licensed in the state
- To satisfy IRS requirements for depreciation of energy equipment
Correct answer: To verify that projected energy savings are technically sound and support loan repayment
Independent engineer reviews validate that savings projections are credible and sufficient to cover CPACE assessment payments, protecting lenders and property owners.
Question 2: Which ASHRAE energy audit level provides the most detailed analysis typically required for large CPACE projects?
- Level 1 — Walk-Through Analysis
- Level 2 — Energy Survey and Analysis
- Level 3 — Detailed Analysis of Capital-Intensive Modifications (Correct answer)
- Level 0 — Benchmarking Only
Correct answer: Level 3 — Detailed Analysis of Capital-Intensive Modifications
ASHRAE Level 3 audits include detailed engineering calculations, equipment monitoring, and financial analysis sufficient to support capital-intensive CPACE project decisions.
Question 3: A property owner finances a CPACE efficiency upgrade that reduces annual energy costs by $80,000. The annual CPACE assessment is $60,000. What is the annual net cash flow benefit?
- -$20,000
- $20,000 (Correct answer)
- $80,000
- $140,000
Correct answer: $20,000
Net annual cash flow = energy savings minus assessment payment: $80,000 − $60,000 = $20,000 positive cash flow.
Question 4: In CPACE efficiency projects, 'measurement and verification' (M&V) follows which industry-standard protocol?
- LEED Rating System
- International Performance Measurement and Verification Protocol (IPMVP) (Correct answer)
- ENERGY STAR Portfolio Manager benchmarking
- ASHRAE Standard 62.1 ventilation requirements
Correct answer: International Performance Measurement and Verification Protocol (IPMVP)
The IPMVP provides standardized options for measuring and verifying energy and water savings after efficiency improvements are installed.
Question 5: A CPACE project upgrades a commercial building's rooftop HVAC units to high-efficiency models. The key efficiency metric for these units is:
- COP at peak heating load
- Energy Efficiency Ratio (EER) or Integrated EER (IEER) (Correct answer)
- Thermal Efficiency (TE) percentage
- Annual Fuel Utilization Efficiency (AFUE)
Correct answer: Energy Efficiency Ratio (EER) or Integrated EER (IEER)
EER and IEER measure cooling output (BTU) per watt of electricity consumed and are the standard efficiency ratings for commercial rooftop cooling equipment.
Question 6: Which CPACE-eligible water efficiency measure also reduces energy consumption by lowering hot water demand?
- Drought-tolerant landscaping conversion
- Low-flow pre-rinse spray valves in commercial kitchens (Correct answer)
- Storm water retention pond installation
- Permeable pavement in parking lots
Correct answer: Low-flow pre-rinse spray valves in commercial kitchens
Low-flow pre-rinse spray valves reduce hot water use in kitchens, cutting both water heating energy and water consumption simultaneously.
Question 7: A CPACE project installs a building automation system (BAS). Which capability directly contributes to energy efficiency?
- Remote access for security camera viewing
- Automated demand-controlled ventilation based on CO2 sensors (Correct answer)
- Tenant billing for individual utility sub-meters
- Maintenance work-order ticket generation
Correct answer: Automated demand-controlled ventilation based on CO2 sensors
Demand-controlled ventilation (DCV) reduces fan energy and conditioning loads by adjusting fresh air delivery based on actual occupancy measured by CO2 sensors.
CPACE Efficiency Improvements 3
A CPACE lender requires an 'independent engineer review' of a proposed efficiency project.
What is the primary purpose of this review?