The pool of buildings permitted under the 2006 energy code is quite small due to the contraction of the construction market during the recent economic downturn, and buildings built under codes predicating the 2006 code do not offer comparable buildings to those built under the 2009 prescriptive code. [...] Some of the project’s energy conservation features include: heat recovery ventilators, aggressive glazing and insulation in the new building addition; insulating cellular shades in units in the renovated portion of the building; and energy efficient water heaters and lighting throughout the building. [...] The Anhalt Apartments was the selected to pilot an incentive approach because it was the only project of the three which included only one tenant use (residential), simplifying the selection of a building baseline and evaluation of the proposed EUI for the building. [...] Structure of Incentive Rebate The challenge of structuring an energy efficiency rebate to reward actual building performance is balancing the Utility’s desire for to see verified energy savings over time with the project owner’s need for capital up front to cover the costs of technology needed to realize those energy savings. [...] For the 2012 Seattle Energy Code revision cycle, the outcome-based energy code pilot project served as the basis for the Target Performance Path (TPP), the new outcome-based ©2014 ACEEE Summer Study on Energy Efficiency in Buildings 6-244 compliance pathway for the 2012 Seattle Energy Code.