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Home My WebLink AboutAgenda Report - August 1, 2007 E-15.0-15AGENDA ITEM Le"' CITY OF LODI COUNCIL COMMUNICATION NOWW AGENDA TITLE: Adopt Resolution Authorizing the City Managerto Allocate Public Benefit Program Fundsto Five Energy Efficiency Rebate Programs Forthe 2007-08 Fiscal Year ($250,000) (EUD) MEETING DATE: August 1,2007 PREPARED B Y Electric Utility Director RECOMMENDEDACTiON: BACKGROUND INFORMATION: LodiAppliance RebateProarem- $35.000 Adopt a resolution authorizing the City Manager to allocate Public Benefit Program funds to five Energy Efficiency Rebate Programs for the 2007-08 fiscal year ($250,000). Since 1999, the Lcdi Electric Utility Department (EUD) has maintained the Lodi Appliance Rebate Program, providing rebates for various energy efficient home appliances. Since the programs inception, thousands of Lodi residents and business owners have participated in this program. For the fiscal year 2007-2008. the EUD is recommending that $35,000 in Public Benefit Program funds be allocated to extend this successful program. Under the program, eligible. customers would receivethe following rebates: • EnergyStar® refrigerator $50 rebate; > EnergyStar® dishwasher $25 rebate; and • EnergyStar® clotheswasher $75 rebate. To qualify for a rebate, customers must purchase the aforementioned home appliance(s) from one ofthe six participating Lodi retailers, including: Anderson Maytag, Ben's Appliance, Kundert & Bauer. Les' Appliance, Lowe's of Lodi, and Reo's Appliance. EnergyStarQD appliances consume, on average, twenty percentto thirty-five percent less electricity annually than a standard home appliance (refrigerator, dishwasher and clotheswasher), which makes the purchase and installation of a high efficiency home appliance an extremely attractive, and cost effectiie. energy conservation measure. LodiEner_ay Efficient Homelmproyement RebatePromm- $40,000 In 2003,the City of Lcdi EUD introducedthe LodiEnergy Efficient Home Improvement Rebate Pmgram(LEEHlRP) This program provides various rebates to residential customerswho purchase and install designated and approved energy conservation measures. For the 2007-2008 fiscal year, the EUD is proposing the following conservation measures, and rebate amounts: > air duct replacement $700 > air duct repair $250 • HVAC* system performancetest $100 per HVAC repairor replacement APPROVED: /1__L Blair King, City Manager Adopt Resolution Authotizing the City Manager tioAllocate Public Benefit Program Fundsto Five Energy Efficiency Rebate Programs Forthe 200708 FiscalYear ($250,000) (EUD) August 1,2007 Page2 of 3 > high efficiency central air cond. a ultra-high efficiency central air Gond > atticlwall insulation • radiantbarder/thermal shield • whole house fan • attic fan > shade screens/window tinting $175 (must install 14+ SEER— HVAC unit cr 13 SEER rooftop unitwith variable speed drive) $275 (must install 17+ SEER HVAC unit) $ 0.15/sq. ft. (must increase attic insulation to an R- 38 and wall insulation to an R-8 energy efficiency value) $150 $100 $ 40 $ 0.50/sq. fl. Mote- The maximum allowable rebate underthis program is $350 pe-customerservice address, with an additional $250 allowance for air duct repairs, or an additional $700 allowance forair duct replacement, if eligible. Customers must also consent to potentialpre- and post -inspections of theirproperty. In addition, in order to qualify for either high efficiency central air conditioner rebate mentionedabove, the customer must address any recommendedair duct repair crreplacement issues. By installing some. or all. of the aforementioned energy conservation measures, residential customers may decrease monthly energy consumption from five percent, to as much as thirty percent (the actual energy savings will vary depending upon the number of conservation measures installed, the quality of installation and personal energy use patterns). HVAC— heating, ventilation and air oonditioning SEER — seasonal energy efficiency rating Lodi G-1 Commercial Rebate Program- $20, 000 This program. first introduced in 1999, provides rebates to commercial customers under the electric rate classification of G-1. Spedfically, the program offers a dollar -for -dollar rebate of up to $200 fw the purchase and installation of any/ail of the following energy conservation improvements: ➢ ceiling fans; attic fans/ventilators; weather-stripping; attic insulation; air duct replacements/repairs; window tinting/shade screenstawning covers; HVAC/refrigeration (such as an annual diagnostic and preventative maintenance sery ice for each HVAC unitandlor refrigeration system). In addition, eligible customers may receivea rebate of 15 percent cr$750 (w h i i ever amount is less), for installing a high efficiency mechanical system (13f SEER air condiioner). or a lighting improvement/retrofit. Participatingoustomers must be on the published G-1 electric rate schedule, current on all City of Lodi utility charges and consent to a potential pre- and post -inspection. Since the programs inception, over 625 small businesses have reduced energy consumption by installing some or all of the aforementioned energy efficiency measures. and received a rebatefrom the City cF Lodi. The average annual energy savings that can be achieved is 5 percent to 25 percent, depending upon the energy efficiency measure(s) installed. Lodi G-2 Commercial Rebate Program- $30.000 This is a new program proposed for the 2007-2008 fiscal year. The rebates are designed specifically for commercial customers assigned to the G-2 electric utility rate. Eligible customers may receive a rebate of up to $5,000 for purchasing and installingarty/all of the following energy conservation measures: building automatonlenergy management control systems. lighting retrofits, chiller & mechanical equipment change outs, annual HVAC/refrigeration service or maintenance, and special projects. Adopt Resolution Authorizing the City ManagertoAllocate Pub IkBeneftt Program Funds tr)Five Energy Efficiency Rebate Programs Forthe 200708 Fiscal Year ($250,000) (EUD) August 1,2007 Page 3 of 3 An approved rebate under this program calls for a minimum 10 percent energy savings, and the total rebate available is $5,000 in a 12 -month period for qualifying projects (one per customer of record). The rebate is calculated on total kilowatt-hour (W h) savings; for the fiscal year 2007-2008, the rebate per kWh savings will be $0.15/kWh (thus, if a customer develops. and presents to the utility, a project that will Save 20,000 kWh i n a year, the total rebate will be $3.000; 20,000 kWh Y $0.151kWh = $3,000). Lodi G-3 to 1-1 CommercleOndustrial RebateProaram- $125.000 For the 2007-2008 fiscal year, the EUD is proposing to continue this program, with a total budget of $125,000 for rebates. Eligible customers, assigned to the G -3,G-4, G-5. or 1-1 electric utility rate, will havethe opportunityto receive maximum rebated $12,500 for qualifying projects, including: lighting retrofits, process/manufacturing equipment& heavy refrigeration improvements, chillers & mechanical equipmentchange-outs, building automationlenefgy managementcontrol systems improvements. and building envelope retrofits. An approved rebate will be based upon the following criteria: a minimum of 10 percent electric energy savings per enerW efficiency measure installed; a minimum of 10 percent operatkim and maintenance savings per energy efficiency measure installed; inclusionof all required engineering, design, labor, and materialsdocumentation (a customer seeking a utility rebate must provide a detailed description of the energy efficiency project; calculated energy savings audit associated with the project; calculated operations and maintenance savings associated with the project; total "turn -key" cost of the project; design/engineering specifications, design drawings, equipment manufacturer cut sheets; baseline energy consumption data of the existing equipment being removed). The t:l rebateavailable per City of Lodifiscal year (oneper customer ofreeord) is$12,500 for qualifying projects. The rebate is calculated on total kilowatt-hour(kWh) savings; for the fiscal year 2007-2008 program, the rebate per kWh of savingswill be $0.15 (thus, if a customer develops, and presents to the utility, a project that will Save 50,000kWh in a year, the total rebatewill be $7,500; 50,000(Wh Y $0.15= $7,500). The EUD respectfully recommends approval d thesefive (5) programs as quaiifyingcomponents of the CUy of Lodi Pudic Benefits Program, under the category cf demand-side management or energy consewation. (* Eligible customer: must be a City of Lodi Electric Utility customer) FISCAL IMPACT: $250,000 FUNDING AVAILABLE: 16460§p-7u� Berw% Program (Category: Demand-side Management) Electric Utility Director Prepared By: Rob Lechner, Manage-, CuslomerService& Programs GFWRL/Ist RESOLUTION NO. 2007-156 A RESOLUTIONOF THE LODI CITY COUNCILAUTHORIZING THE CITY MANAGER TO ALLOCATE PUBLIC BENEFIT PROGRAM FUNDS TO FIVE ENERGY EFFICIENCY REBATE PROGRAMS FOR THE 2007-08 FISCAL YEAR NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to allocate $250,000 in Public Benefits Program funds for the following rebate programs during the 2007-08 fiscal year: $ 35,000 Lodi Appliance Rebate Program $ 40,000 Lodi Energy Efficient Home Improvement Rebate Program $ 20,000 Lodi G-1 Commercial Rebate Program $ 30,000 Lodi G-2 Commercial Rebate Program $125,000 Lodi G-3to I-1 Commercial/Industrial Rebate Program Dated: August 1, 2007 I hereby certify that Resolution No. 2007-156 was passed and adopted by the Lodi City Council in a regular meeting held August 1, 2007, by the following vote: AYES: COUNCIL MEMBERS— Hansen, Hitchcock, Katzakian, Mounce, and MayorJohnson NOES: COUNCIL MEMBERS— None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS— None 4ANDIJOHL City Clerk 2007-156