HomeMy WebLinkAboutAgenda Report - January 18, 2006 E-13AGENDA ITEM E'0114)
C1TY OF LODI
Wj COUNCIL COMMUNICATION
AGENDA TITLE: Adopt resolution amending the existing Lodi Energy EfficientHome
Improvement Rebate Program; the amendmentwiII removewindows as an
eligible rebateelement, and add wall insulation as an eligible rebateelement
(EUD)
MEETING DATE: January 18,2006
PREPARED BY Interim Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt a resolution amending the existing Lodi
Energy Efficient Home Impmvement Rebate Program. The
amendment will add wall insulation as an eligible rebate item, and
remove windows an eligible rebate element.
BACKGROUND INFORMATION: For several years, the City of Lodi has offered rebates for residential
customers. The current Lodi Energy Efficient Home Impmvement
Rebate Program provides incentives or rebates for those customers
who purchase and install various energy conservation measures, including: attic insulation, windows,
radiant barriers, atticfans/ventilators, ceiling fans, whole housefans, window tinting/shade screens,
and/or replace -repair air ducts. Most of these energy efficiency improvements can reduce monthly
energy consumption from 3 percentto 20 percent (depending upon which measures are installed, and
how many of the measures are installed).
By way cF this Council action, Electric Utility staff is recommending that a new energy efficiency measure
be added to the list: wall insulation. Purchasing and installing wall insulation can reduce energy
consumption, on average, by as much as four (4) percent annually. To receive a rebatefor wall
insulation, customers must install a minimum R-13 level (energy efficiency value or rating for insulation),
and the insulation must be installed in non -insulated walls between conditioned and unconditioned areas
(no interiorwalls within the home are eligible for rebate). Customers must also consent to a potential
pre- and post -inspection of their property. The rebate amount will be $0.15 per square foot of wall
insulation installed, with a cap of $200 per customer service address.
In addition, Electric Utility staff is recommending that windows be removed as a rebate itemfrom the
current Lodi Energy Efficient Home Improvement Rebate Program. Following a recent measurement,
verification and assessment study of energy efficiency measures, it was determined that windows do not
produce energy savings are once thought. Recent studies indicate that by installing new, dual -paned
windows only save approximately eight (8) kilowatt hours of electricity annually for every 100 square feet
of newwindow installed. However, new, dual -paned windows are still an excellent retrofitfor a
homeowner desirous of enhancing their property value, reducing external noise/sound, and improving the
external appearance of the property.
APPROVED:
Blair King, City Manager
Adopt resolution amending the O'de ng Lodf En*W effrci rirt Hone improvement Rebate Program; the amendment will
remove windows as an eligible rebate skmert, and 20 wall insulation as an eligible rebate element(EUD)
January 18,2006
Page 2 of 2
In summation, it was determined that wall insulation is a better energy efficiency improvementfor
residential consumers, compared to dual -paned windows, thus the proposed amendments to this existing
program. Electric Utility staff respectfully recommends approval of this amendment to the Lodi Energy
Efficient Home Improvement Rebate Program.
FISCAL IMPACT: The fiscal impactto the City of Lodi Electric Utility (from reduced energy
consumption) resulting from customers installingwall insulationwill be better
quantified in the ensuing year.
FUNDING AVAILABLE: Funding is currently availablefor the wall insulation rebate element through
the existing Lodi EnergyEfcient Home improvement Rebate Program, as
approved by the Lodi City Council in July of 2005.
Ruby Paf$e, Interim Finance Director
David DoWham .
Interim Electric Utility Director
Prepared By: Rob Lechner, Manager, Customer Service and Programs
DDIRLIIst
c: City Attorney
RESOLUTION NO. 2006-17
A RESOLUTION OF THE LODI CITY
COUNCIL AMENDING THE EXISTING LODI
ENERGY EFFICIENT HOME IMPROVEMENT
REBATE PROGRAM
WHEREAS, the state has mandated that beginning January 1, 1998, the City of Lodi is
obligated to fund various programs through a Public Benefits Charge (PBC) based on an
historical electric revenue requirement; and
WHEREAS, the requirement amounts to approximately $1 million per year that must be
dedicated to qualifying programs such as energy efficiency. A further stipulation is that these
efforts must be done on the customer's side of the meter in order to qualify; and
WHEREAS, the City of Lodi's Public Benefits Program is comprised of four segments
or customer groups: commercial/industrial, residential, community/non-profit, and municipal;
and
WHEREAS, the Lodi Energy Efficient Home Improvement Rebate Program provides
rebates to residential customers who install designated and approved energy conservation
measures; and
WHEREAS, the current list of eligible measures are: attic insulation, windows, radiant
barriers, attic fans/ventilators, ceiling fans, whole house fans, window tinting/shade screens,
and/or replace-repairair ducts; and
WHEREAS, Electric Utility staff recommends that wall insulation be added to this
program as a new energy efficiency measure, as purchasing and installing wall insulation can
reduce energy consumption, on average, by as much as four (4) percent annually. To receive
a rebate for wall insulation, customers must install a minimum R-13 level (energy efficiency
value or rating for insulation), and the insulation must be installed in non -insulated walls
between conditioned and unconditioned areas (no interior walls within the home are eligible for
rebate). Customers must also consent to a potential pre- and post -inspection of their property.
The rebate amount will be $0.15 per square foot of wall insulation installed, with a cap of $200
per customer service address; and
WHEREAS, staff further recommends that windows be removed as a rebate item from
the current Lodi Energy Efficient Home Improvement Rebate Program, as it was recently
determined that windows do not produce energy savings as once thought.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize amending the existing Lodi Energy Efficient Home Improvement Rebate Program, by
adding wall insulation as an eligible rebate item and removing windows as an eligible rebate
element.
Dated: January 18,2006
hereby certify that Resolution No. 2006-17 was passed and adopted by the Lodi City
Council in a regular meeting held January 18, 2006, by the following vote:
AYES: COUNCIL MEMBERS—Beckman, Hansen, Johnson, Mounce, and
Mayor Hitchcock
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
SUSAN J. BLAC TON
City
City Clerk
2006-17