WATER DEMAND COMMITTEE
ITEM:		ACTION ITEMS
3.	DEVELOP RECOMMENDATION TO THE BOARD REGARDING FIRST READING OF AN ORDINANCE THAT EXPANDS THE REBATE PROGRAM TO INCLUDE GREYWATER REUSE AND OTHER TECHNOLOGIES
Meeting Date:			June 18, 2010	Budgeted:	Approx. $441,000 available for Rebates
From:			Darby Fuerst,	Program/	4-2-3
			General Manager	Line Item No.:
Prepared By:			Stephanie Pintar	Cost Estimate:	N/A
General Counsel Review: Pending
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: Draft Ordinance No. XXX (Exhibit 3-A), expands and amends the Rebate Program to achieve greater water savings. The following points summarize the proposed ordinance:

· New Rebates for:

o High Efficiency Connectionless Steamers

o High Efficiency Commercial Dishwashers

o Dry Vacuum Pumps

o Graywater Irrigation Systems

o Cooling Tower pH/Conductivity Controllers

o Retrofitting of continuous water flow medical steam sterilizers with water tempering devices.

· Cistern storage capacity increases from 3,000 to 25,000 gallons with an added eligibility condition that the Site must have sufficient roof area to provide the runoff to fill the Cisterns during a normal Water Year.

· Maximum Lawn Rebate increases from 2,000 to 5,000 square-feet.

· Rebate amounts are increased for:

o Pint Urinals (from $250 to $300)

o Rotating Sprinkler Nozzles (from $0.50 to $4.00 with a minimum purchase of ten)

o Water Efficient Ice Machines (from $450 to $500)

o X-ray film processor recirculation systems (from $2,000 to $3,500)

· The time for which an application can be submitted has been increased from 90 days to 120 days from the date of purchase of Qualifying Devices. This amendment further accommodates purchasers of Qualifying Devices that may not install the device for more than 90 days.

· Rebates are currently limited to a maximum of twenty (20) toilets on Non-Residential Qualifying Properties. The proposed ordinance allows an exception for Qualifying Properties owned and operated by a California Non-Profit Corporation to incentivize retrofits at these properties.

DISCUSSION: In recommending the proposed Rebates, staff researched other water efficiency Rebate Programs and reviewed the water savings and cost per acre-foot of water savings. The Non-Residential Rebates proposed are all highly cost-effective and have high water savings associated with the retrofits. The proposed Rebate amounts and water savings are supported through extensive research and documentation. Rebates proposed are comparable to Rebates offered by other agencies. The proposed Rebates have been reviewed by California American Water and are proposed for continued funding in California American Water’s 2012-2014 General Rate Case.

Graywater Irrigation System Rebates were discussed by the Monterey County Graywater and Rainwater Catchment Task Force and include reference to the County’s newly completed Graywater Irrigation Systems Permitting Process and Design Criteria.

RECOMMENDATION: Staff recommends the Water Demand Committee recommend approval of the first reading of Ordinance No. XXX. The ordinance has been written with an effective date of September 1, 2010.

IMPACT ON STAFF/RESOURCES: Increased participation in the Rebate program has impacts on staff as the District administers the Rebates issued throughout the District. However, the District has mostly been able to accommodate the existing program, and the new database (after data migration is completed) will assist with staff’s ability to process and issue Rebates. The District’s direct involvement in the administration of the program allows it to ensure that program savings are tracked and are not double-counted in another District program. The cost of administering the Rebate Program is contemplated in the adopted Water Demand Division 2009/10 budget.

The Rebate Program is jointly funded through several mechanisms: The CPUC approved a $900,000 3-year budget (2009-2011) in the CAW conservation filing that is to fund Rebates for CAW customers, the District budgeted $25,000 for Fiscal Year 2009-2010 for non-CAW Rebates, and the District was approved $45,000 for a “Cash For Grass” program by the CPUC in CAW’s conservation filing which will roll over into the main Rebate funding once the Cash for Grass money is expended.

The District administers the Rebate Program and tracks the retrofits and water savings that occur, utilizing the District’s extensive property database to verify eligibility. California American Water supports the expansion of the Rebate Program as it contributes to both entities’ conservation goals. Since the inception of the program in 1997, over 267 acre-feet of water have been saved.

EXHIBITS

3-A Conceptual Draft Ordinance No. XXX

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