Compliance for additions and alterations requires calculating the proposed design energy use and the standard design energy budget.

When the energy use of the proposed design is equal to or less than the standard design, the addition or alteration or both comply with the standards. The compliance margin is the difference between the standard design energy use time dependent valuation (TDV) and the proposed design energy use (TDV). When the compliance margin is zero or greater, the project complies.

The energy use is expressed in units of thousand TDV (kTDV)per square foot of conditioned floor area (kTDV/ft²) and accounts for regulated energy end uses, including space heating, space cooling, ventilation, and water heating. Unregulated energy end uses are not included, such as interior lighting, appliances, cooking, plug loads, and exterior lighting. PV generation and flexibility measures, such as battery storage, have no effect on additions and alterations.