SUMMARY

At the May 3, 2005 Board budget workshop, the Board asked for additional information about the District’s rebate program. Specifically, the Board targeted two budget items that were identified as reductions in the Water Demand Division. Staff’s proposal was to reduce the rebate account by $25,000, of which 50 percent is reimbursable by Cal-Am, and to eliminate a proposed rebate advertising budget of $25,000. The advertising budget was marked as 100 percent reimbursable by Cal-Am: Other project expenses were added that used the reimbursable funds available and re-implementing the rebate advertising fund at this time would require full District funding. It should be noted that according to Cal-Am, there will be an advertising program this summer that will promote water conservation and the rebate program. District staff will have input in the advertising approach.

history

The District’s rebate program began in December 1997 with rebates for the voluntary installation of ULF toilets. That program was expanded in December 2003 to include rebates for dual-flush toilets, ultra-low consumption dishwashers and washing machines, on-demand hot water systems and cisterns. Since 1997, the rebate program has rebated $667,642 and has resulted in the voluntary replacement of 6,851 toilets, 25 dishwashers, 43 washing machines, 2 hot water systems and one cistern.

Advertising of the program has been limited since its inception and is likely the reason for declining participation in recent years. During the first year of the program, the District funded newspaper ads featuring “Mr. Head” (right) in addition to providing some degree of public outreach to promote the program. Since 1998, there has been no advertising of the program, other than word-of-mouth and retailer promotion. The following chart shows the amount of rebates issued between 1997 and 2005. Fifty percent of the toilet rebate is reimbursed by Cal-Am.

THE FUTURE

Water Demand Division staff are hoping to propose a further expansion of the rebate program during the second half of FY 2005-2006. The following items, among others, would be considered in the rebate expansion plan. Water savings associated with all possible rebate items are discussed on the attached “Summary of Potential Water Savings for New Water Efficient Products.”

· High Efficiency commercial clothes washers;

· Evapotranspiration driven irrigation controllers;

· Water softener replacements (possibly as a joint project with local wastewater agencies);

· Waterbrooms;

· Flow control valves in commercial settings;

· Cooling tower retrofits;

· Pre-rinse spray valve replacements;

· Irrigation system hardware upgrades;

· X-ray machine upgrades.

The proposed FY 2005-2006 program budget for Water Conservation includes $125,000. Rebates are approved as long as funding is available. In the event that current funding is expended, applications will be held on a waiting list pending future funding. Without promotion of the program, it is unlikely that the full amount of funding budgeted for FY 2005-06 will be expended, even with an expansion of the program at mid-year. As a proposed expansion of the rebate program is not anticipated prior to mid-FY 2005-2006, a mid-year budget adjustment could be contemplated if additional conservation funds are available from Cal-Am.

Summary of Potential Water Savings for New Water Efficient Products*

Product	Water Savings Potential	Other Known Benefits	Source of Performance Test/Study(s)
ET Controllers	Up to 59% landscape irrigation savings	63 to 71% irrigation run-off reduction (significant environmental benefit)	Santa Barbara County ET Controller Program Report & Irvine Ranch Water Dist. ET Controller Study
Waterbrooms	63% water savings in cleaning operations on hard surfaces, when required by law	Up to 75% less labor compared to hose or pressure washing	City of Anaheim Public Utilities Watermiser Waterbroom Pilot Study
Zero-Water Consumption Urinals	Average savings of 43,680 gallons per fixture per year (0.134 acre-feet per fixture per year)	Significant sewer and water/sewer-related energy use reduction	Federal Energy Management Program & Dept. of Defense Energy & Engineering Division
Pre-Rinse Spray Valves	Annual average for “very small to “small” food establishments: 0.153 acre-feet (significantly higher for greater-volume users)	Annual average for “very small to small” food establishments: Gas-heated water – 335 therms Electric-heated water – 7,600 kWh	California Urban Water Conservation Council (CUWCC) & SBW Study
Water Softener Retrofit from Timed-Regeneration to Demand Initiated Regeneration	55 to 63% water savings	Reduced discharge of salt into the wastewater collection system, which has a negative impact on wastewater plant effluent.	Metropolitan Water District/USBR Salinity Management Study – Water Softener Issues
Cooling Tower Conductivity Controllers	Up to 64% water savings (up to 800,000 annually in case studies with larger towers)	Significant reduction in labor, energy, chemical use, and sewage cost	Water Smart Technology – (Group of California municipalities and water agencies)
Water Meters for Sub-metering in Apartments/Multi-family dwellings	11-27% Water Use Reduction	Significantly reduced sewer costs	National Multiple Family Submetering and Allocation Billing Program Study
Irrigation System Hardware Upgrades	Various results, depending on age and condition of existing system	Reduced irrigation run-off, fertilizer/pesticide pollution, and labor reduction	Many sources available (CUWCC, MWD, AWWA, ITRC, IA etc.)
High-Efficiency Commercial Clothes Washers	35-50% water use reduction	Up to 50% of sewer and energy use/cost	Contra Costa Water District, CPUC, & LightWash Program
X-Ray Film Processor Recirculation System	98% of related water use eliminated (i.e. average processor uses 788,400 gallons per year; upgrade reduces wash-water effluent to 13,530 gallons per year	Drastic subsequent sewage and energy savings	Metropolitan Water District
Flow Control Valves for Commercial Use	Reduce water flow by up to 85%, while eliminating loss due to vandalism or aerator damage	Lower water, sewer, and energy bills	US Clean Sweep
SOMAT Waste Reduction Technology	Approx. 81% reduced water consumption for commercial kitchen garbage disposal	Reduced labor by at least 40%, reduced hauling cost due to 80% waste reduction etc.	Presidio of Monterey Study & Manufacturer Specifications

*All rebated products will be required to meet specific water saving specifications set forth by the District

U:\staff\word\boardpacket\2005\2005boardpackets\20050526\02\item2_exh2c.doc