HomeMy WebLinkAboutAgenda Report - June 4, 2008 K-02AGENDA ITEM Vmo
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CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Authorizing the City Managerto Allocate Public Benefit
Program Fundsfor Seven Energy Efficiency Rebate or Related Programs for
the 2008-2009 Fiscal Year ($440,000) (EUD)
MEETING DATE: June 4,2008
PREPARED B Y Electric Utility Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Managerto allocate public
benefit program funds for seven energy efficiency rebate or related
programs for the 2008-09 fiscal year not to exceed $440,000.
BACKGROUND INFORMATION: The seven energy efficiency rebate programs are: Lodi Appliance
Rebate Program, Lodi Energy Efficient Home Improvement Rebate
Program, Lodi G-1 Commercial Rebate Program, Lodi G-2
Commercial Rebate Program, Lodi G-3 to 1-1 Commercial/Industrial Rebate Program, Lodi Municipal
Energy Efficiency Program, and the Lodi Evaluation, Measurement& Verification Project.
Lodi Appliance Rebate Pro.pram- $20,000
Since 1999, the Lodi 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.
Forthe fiscal year 2008-2009, the EUD is recommending that $20,000 in Public Benefit Program funds
be allocated to extend this successful program. Under the program, eligible* customers would receive
the following rebates:
• EnergyStalB refrigerator $50 rebate;
• EnergyStalB dishwasher $25 rebate;
• EnergyStalB clothes washer $50 rebate.
To qualify for a rebate, customers must purchase the aforementioned homeappliance(s) from one of
these Lodi retailers: Anderson Maytag, Ben's Appliance, Les' Appliance, Lowe's of Lodi, and Reo's
Appliance.
EnergyStalB appliances consume, on average, twenty percent to thirty-five percent less electricity
annually than a standard home appliance (refrigerator, dishwasher and clothes washer), which makes
the purchase and installation of a high efficiency home appliance an extremely attractive, and cost
effective, energy conservation measure.
APPROVED:
ing, City Manager
Adopt Resolution Authorizing the City Managerto Allocate Public Benefit Program Funds for Seven Energy Efficiency
Rebate or Related Programs for the 2008-2009 Fiscal Year ($440,000) (EUD)
June 4,2008
Page 2 of 5
Lodi Energy Efficient Home Improvement Rebate Program- $70.000
In 2003, the City of Lodi EUD introduced the Lodi Energy Efficient Home Improvement Rebate Program
(LEEHIRP). This program provides various rebates to residential customers who purchase and install
designated and approved energy conservation measures. For the 2008-2009 fiscal year, the EUD is
proposing the following conservation measures, and rebate amounts:
Category A: $55,000 of the total $70, OOQ)rogram budget will be allocated for the following energy
efficiency elements; of this $55, 000allocation, a total of $10,000 is allocated for the HVAC system
performancetest noted below (the remaining $45,000 is allocated for those items in italics):
> air duct replacement
> air duct repair
> high efficiency central air cond
• ultra-high efficiency central air cond
• heat pump
7 HVAC system performance test*
$750
$200
$175 (must install 15+ SEER HVAC unit or 13+ SEER
rooftop unit with variable speed drive)
$225 (must install 17+ SEER HVAC unit)
$150 (must install s. 5+ HSPF forsplit system or
8.2+ HSPF forpackage unit)
$1001 HVAC repair or replacement
*A customer may be eligible for this $100 rebate if the customer proceedswith recommended air duct
repairlimprovement/replacement.
Category B: $15,000 of the total $70,000 program budget will be allocated for the following energy
efficiency elements:
> radiant barrier/thermal shield
> whole house fan
> attic fan
> shade screens/window tinting
n attic/wall insulation
$150
$100
$ 40
$ 0.50/sq. ft.
$ 0.15/sq. ft. (must increase attic insulation to an R-38
and wall insulation to an R-13 energy
efficiency value)
Note- The maximum allowable rebate under this program is $300 per customer service address, with an
additional $200 allowance for air duct repairs or an additional $750 allowance for air duct replacement, if
eligible. Customers must also consent to potential pre- and post -inspections of their property. In
addition, in order to qualify for any of the high efficiency central air conditioner rebates mentioned above,
the customer must address any recommended air duct repair or replacement issues. Note: in the event
funds from either CategoryA orB are not utilized by May 15, 2009, then those funds can be utilized as a
rebate in the other category.
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).
Adopt Resolution Authorizing the City Managerto Allocate Public Benefit Program Funds for Seven Energy Efficiency
Rebate or Related Programs for the 2008-2009 Fiscal Year ($440,000) (EUD)
June 4,2008
Page 3 of 5
Lodi G-1 Commercial Rebate Proaram- $20. 000
This program, first introduced in 1999, provides rebates to commercial customers under the electric rate
classification of G-1. Specifically, the program offers a dollar -for -dollar rebate of up to $200 for the
purchase and installation of any/all of the following energy conservation improvements:
v ceiling fans; attic fans/ventilators; weather-stripping; attic insulation; air duct replacements Ire pairs;
window tintinglshade screenslawning covers; HVAC/refrigeration (such as an annual diagnostic
and preventative maintenance service for each HVAC unit and/or refrigeration system).
In addition, eligible customers may receive a rebate of 15 percent or $750 (which ever amount is less),
for installing a high efficiency mechanical system (13+ SEER air conditioner), or a lighting
improvement/retrofit,
Participating customers 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
650 small businesses have reduced energy consumption by installing some or all of the aforementioned
energy efficiency measures, and received a rebate from the City of 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 -$50,000
The rebates in this program are designed specificallyfor commercial customers assigned to the G-2
electric utility rate. Eligible customers may receive a rebate of up to $6,000 for purchasing and installing
anylall of the following energy conservation measures: building automationlenergy management control
systems, lighting retrofits, chiller& mechanical equipment change outs, annual HVAClrefrigeration
service or maintenance, and special projects.
An approved rebate underthis program calls fora minimum 15 percent energy savings, and the total
rebate available is $6,000 in a 12 -month period for qualifying projects (one per customer of record). The
rebate is calculated on total kilowatt-hour(kWh) savings; for the fiscal year 2008-2009, 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 30,000 kWh in a year, the total rebatewill be $4,500; 30,000 kWh `x' $0.15/kWh = $4,500).
Lodi G-3 to 1-1 Commercial/Industrial Rebate Program- $160.000
For the 2008-2009 fiscal year, the EUD is proposing to continue this program, with a total budget of
$160,000 for rebates. Eligible customers, assigned to the G-3, G-4, G-5, or 1-1 electric utility rate, will
have the opportunity to receive a maximum rebate of $20,000 for qualifying projects, including: lighting
retrofits, processlmanufacturing equipment & heavy refrigeration improvements, chillers & mechanical
equipment change -outs, building automation lenergy management control systems improvements, and
building envelope retrofits.
An approved rebate will be based upon the following criteria:
➢ a minimum of 15 percent electric energy savings per energy efficiency measure installed;
a minimum of 10 percent operations and maintenance savings per energy efficiency measure
installed;
Adopt Resolution Authorizing the City Manager to Allocate Public Benefit Program Funds for Seven Energy Efficiency
Rebate or Related Programs for the 2008-2009 Fiscal Year ($440,000) (EUD)
June 4,2008
Page 4 of 5
➢ inclusion of all required engineering, design, labor, and materials documentation (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;
designlengineering specifications, design drawings, equipment manufacturercut sheets; baseline
energy consumption data of the existing equipment being removed).
The total rebate available per customer of record per City of Lodi fiscal year for qualifying projects is
$20,000. The rebate is calculated on total kilowatt-hour(kWh) savings; for the fiscal year 2008-2009
program, the rebate per kWh of savings will be $0.15 (thus, if a customer develops, and presents to the
utility a project that will save 50,000 kWh in a year, the total rebate will be $7,500; 50,000 kWh Y$0,15=
$7,500).
NOTE: For all aforementioned rebate programs, funds are made available on a first-come, first-
served basis, and are available until said funds, by program, are exhausted.
NOTE: In the event any individual rebate program has unclaimed funds on May 15, 2009, EUD
staff is authorized to shift those unclaimed funds to another rebate program at staff discretion.
Lod iMunicipal EneravEfficiency/Miscellaneous Projects -$60.000
For the 2008-2009 fiscal year, the EUD is budgeting $60,000 for various energy efficiency projects that
may be performed at city -owned facilities. These may include: lighting retrofits, high efficiency HVAC
replacements/upgrades, building envelope improvements, and other approved energy conservation
measures.
Lodi Evaluation. Measurement& Verification Proiect- $60.000
Understate law, all electric service providers in California are now required to expend Public Benefit
Program funds on the evaluation, measurement and verification of selected energy
efficiency/conservation projects funded by Public Benefit program dollars. For the 2008-2009 fiscal year,
the EUD is proposing to expend up to $60,000 to review and assess the actual energy savings achieved
through numerous energy efficiency projects implemented during the 2007-2008 fiscal year. The findings
of these various assessments are then included in an annual filing with the California Energy
Commission.
The EUD respectfully recommends approval of these five (5) programs as qualifying components of the
City of Lodi Public Benefits Program, under the category of demand-side management or energy
conservation.
(" Eligible customer: must be a City of Lodi Electric Utility customer.)
FISCAL IMPACT: $440,000; these are funds that are to be collected and expended under
state law in various Public Benefit program categories.
FUNDING AVAILABLE: 164605 —J>6blic Benefits Program (Category: Demand-side Management)
P464, Budget Manager
Adopt Resolution Authorizing the City Manager to Allocate Public Benefit Program Funds for Seven Energy Efficiency
Rebate or Related Programs for the 2008-2009 Fiscal Year ($440,000)(EUD)
June 4,2008
Page 5 of 5
lS/
George F. Wrow
Electric Utility Director
Prepared By: Rob Lechner. Manager, Customer Service and Programs
GFM/rsIIIst
RESOLUTION NO. 2008-104
A RESOLUTION OF THE LODI CITY
COUNCIL APPROVING PUBLIC BENEFIT
PROGRAMFUNDS
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
approve Public Benefit Program funds for the following program extensions and/or renewals
as follows and as shown on the project descriptions marked Exhibit A attached hereto:
1 ) Lodi Appliance Rebate Program - $20,000
2) Lodi Energy Efficient Home Improvement Rebate Program - $70,000
3) Lodi G-1 Commercial Rebate Program- $20,000
4) Lodi G-2 Commercial Rebate Program - $50,000
5) Lodi G-3 to 1-1 Commercial/Industrial Rebate Program - $160,000
6) Lodi Municipal Energy Efficiency/Miscellaneous Projects - $60,000
7) Lodi Evaluation, Measurement& Verification Project- $60,000
Dated: June 4, 2008
hereby certify that Resolution No. 2008-104 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held June 4, 2008, by the following Vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, and Katzakian
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS —Johnson and Mayor Mounce
ABSTAIN: COUNCIL MEMBERS — None QD
Randi Johl
City Clerk
2008-104
EXHIBITA
1. LodiAppliance Rebate Program- $20.000
Since 1999, the Lodi 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 2008-2009, the EUD is recommending that $20,000 in Public Benefit Program
funds be allocated to extend this successful program. Under the program, eligible* customers
would receive the following rebates:
> EnergyStar® refrigerator $50 rebate;
> EnergyStar® dishwasher $25 rebate;
> EnergyStar® clothes washer $50 rebate.
To qualify for a rebate, customers must purchase the aforementioned home appliances) from
one of these Lodi retailers: Anderson Maytag, Ben's Appliance, Les' Appliance, Lowe's of Lodi,
and Reo's Appliance.
EnergyStar® appliances consume, on average, twenty percent to thirty-five percent Jess
electricity annually than a standard home appliance (refrigerator, dishwasher and clothes
washer), which makes the purchase and installation of a high efficiency home appliance an
extremely attractive, and cost effective, energy conservation measure.
2. Lodi EnerUEfficientHome Improvement Rebate Program- $70.000
In 2003, the City of Lodi EUD introduced the Lodi Energy Efficient Home Improvement Rebate
Program (LEEHZRP). This program provides various rebates to residential customers who
purchase and install designated and approved energy conservation measures. For the 2008-2009
fiscal year, the EUD is proposing the following conservation measures, and rebate amounts:
Category A: $55,000of the total $70,000program budget will be allocated for the following
energy efficiency elements; of this $55,000 allocation, a total of $10,000 is allocated for the
HVAC system performance test noted below (the remaining $45,000 is allocated for those items
in italics):
> air duct replacement $750
> air duct repair $200
> high efficiency central air cond. $175 (must install 15+ SEER HVAC unit or 13+
SEER rooftop unit with variable speed
drive)
> ultra-high efficiency central air cond. $225 (must install 17+ SEER HVAC unit)
> heatpump $150 (must install 8.5+ HSPFfor split system
or 8.2+ HSPF for package unit)
2
> HVAC system performance test* $1001 HVAC repair or replacement
*A customer may be eligible for this $100 rebate if the customer proceeds with recommended air
duct repair/improvement/replacement.
Category B: $15,000 of the total $70,000 program budget will be allocated for the following
energy efficiency elements:
> radiant barrier/thermal shield
> whole house fan
> attic fan
> shade screens/window tinting
> attic/wall insulation
$150
$100
$ 40
$ 0.50/sq. ft.
$ 0.15/sq. ft. (must increase attic insulation to an R-38
and wall insulation to an R-13 energy
efficiency value)
Note- The maximum allowable rebate under thisprogram is $300 per customer service address,
with an additional $200 allowancefo r air duct repairs or an additional $750 allowancefor air
duct replacement, f eligible. Customers must also consent to potential pre- and post -inspections
df theirproperty. In addition, in order to qualifyfor any of the high efficiency central air
conditioner rebates mentioned above, the customer must address any recommended air duct
repair or replacement issues. Note: in the eventfundsfrom either Category or are not
utilized by May 15, 2009, then thosefunds can be utilized as a rebate in the other category.
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).
3. Lodi G-1 Commercial Rebate Projzram- $20.000
This program, first introduced in 1999,provides rebates to commercial customers under the
electric rate classification of G-1. Specifically, the program offers a dollar -for -dollar rebate of
up to $200 for the purchase and installation of any/all of the following energy conservation
improvements:
9 ceiling fans; attic fans/ventilators; weather-stripping; attic insulation; air duct
replacements/repairs; window tinting/shade screens/awning covers; HVAC/refrigeration
(such as an annual diagnostic and preventative maintenance service for each HVAC unit
and/or refrigeration system).
In addition, eligible customers may receive a rebate of 15 percent or $750 (which ever amount is
less), for installing a high efficiency mechanical system (13+ SEER air conditioner), or a lighting
improvement/retrofit.
Participating customers 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
3
inception, over 650 small businesses have reduced energy consumption by installing some or all
of the aforementioned energy efficiency measures, and received a rebate from the City of Lodi.
The average annual energy savings that can be achieved is 5 percent to 25 percent, depending
upon the energy efficiency measure(s) installed.
4. Lodi G-2 CommercialRebate Prozram- $50.000
The rebates in this program are designed specifically for commercial customers assigned to the
G-2 electric utility rate. Eligible customers may receive a rebate of up to $6,000 for purchasing
and installing any/all of the following energy conservation measures: building automation/energy
management control systems, lighting retrofits, chiller & mechanical equipment change outs,
annual HVAC/refrigeration service or maintenance, and special projects.
An approved rebate under this program calls for a minimum 15 percent energy savings, and the
total rebate available is $6,000 in a 12-monthperiod for qualifying projects (one per customer of
record). The rebate is calculated on total kilowatt-hour (kWh) savings; for the fiscal year 2008-
2009, 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 30,000 kWh in a year, the total rebate will be $4,500;
30,000 kWh `x' $0.15/kWh = $4,500).
5. Lodi G-3 to I -I Commercial/Industrial Rebate Program- $160.000
For the 2008-2009 fiscal year, the BUD is proposing to continue this program, with a total
budget of $160,000 for rebates. Eligible customers, assigned to the G-3, 0-4, G-5, or 1-1 electric
utility rate, will have the opportunity to receive a maximum rebate of $20,000 for qualifying
projects, including: lighting retrofits, process/manufacturing equipment & heavy refrigeration
improvements, chillers & mechanical equipment change -outs, building automation/energy
management control systems improvements, and building envelope retrofits.
An approved rebate will be based upon the following criteria:
➢ a minimum of 15 percent electric energy savings per energy efficiency measure installed;
➢ a minimum of 10 percent operations and maintenance savings per energy efficiency
measure installed;
➢ inclusion of all required engineering, design, labor, and materials documentation (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 total rebate available per customer of record per City of Lodi fiscal year for qualifying
projects is $20,000. The rebate is calculated on total kilowatt-hour (kWh) savings; for the
fiscal year 2008-2009 program, the rebate per kWh of savings will be $0.15 (thus, if a
0
customer develops, and presents to the utility a project that will save 50,000kWh in a year, the
total rebate will be $7,500; 50,000 kWh 'x'$0.15= $7,500).
NOTE: For all aforementioned rebateprograms, funds are made available on afirst-come,
first-served basis, and are available until said funds, byprogram, are exhausted.
NOTE: In the event any individual rebateprogram has unclaimedfunds on May 15, 2009,
EUD staff is authorized to shift those unclaimedfunds to another rebateprogram at staff
discretion.
6. Lodi Municipal Energy Efficiency/Miscellaneous Projects- $60.000
For the 2008-2009 fiscal year, the EUD is budgeting $60,000 for various energy efficiency
projects that may be performed at city -owned facilities. These may include: lighting retrofits,
high efficiency HVAC replacements/upgrades, building envelope improvements, and other
approved energy conservation measures.
7. Lodi Evaluation. Measurement & VerificationProiect- $60.000
Under state law, all electric service providers in California are now required to expend Public
Benefit Program funds on the evaluation, measurement and verification of selected energy
efficiency/conservation projectsfunded by Public Benefit program dollars. For the 2008-2009
fiscal year, the EUD is proposing to expend up to $60,000 to review and assess the actual energy
savings achieved through numerous energy efficiency projects implemented during the 2007-
2008 fiscal year. The findings of these various assessments are then included in an annual filing
with the California Energy Commission.
5
Lodi Public Benefit Programs
FY 2008-2009 (K-2)
Lodi City Council
June 4, 2008
Overview
• For Council Agenda Item K-2, there are seven
(7) proposed Public Benefit Programs
• Later
this
calendar
year, Lodi
Electric Utility will
reach
the
ten year
milestone
of
providing
Public
Benefit Programs to the community
• Public Benefit Programs are mandated by the
State of California
M
2
Legal Requirements
• Under state law, electric service providers
must collect and expend Public Benefit
Program funds in one of four (4)
categories:
- demand-side management
- renewable energy resources
- energy research (RD & D)
-assistance for low-income customers
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FY09 Budget
• As approved by Council on May 28, 2008,
the total Public Benefits Program budget
for the 08-09 FY is: $729,134
• Of this amount, $440,000 is allocated to
seven (7) programs
�t z /C
TJL1��
Lodi Appliance Rebate Program
• Proposed Funding: $20,000
• Customer rebates for purchasing:
— EnergyStarO refrigerator ($50);
— EnergyStarO dishwasher ($25); and/or
— EnergyStarO clothes washer ($50)
• Must purchase from a participating Lodi
retailer
M
5
Energy Efficient Home
Improvement Rebate Program
• Proposed Funding: $70,000
• Rebates provided for a variety of home energy
conservation measures, including:
— air duct repair/replacement;
— high efficiency central air conditioning unit;
— system performance test;
— attic fan or whole house fan;
— attic/wall insulation;
— shade screens/window tinting; and/or
— radiant barrier material
G-1 Commercial Rebate Program
• Proposed Funding: $20,000
• Rebates of up to $200 (dollar -for -dollar) to
small commercial business
owners/managers for installing a variety of
energy conservation measures (such as
attic insulation, window tinting, ceiling/attic
fans, other)
VA
�t z 40
G-2 Commercial Rebate Program
• Proposed Funding: $50,000
• Rebates of up to $6,000 for G-2
commercial customers; rebate is based
upon a $0.15/kilowatt-hour of energy
saved on the energy conservation project
�t z /C
G-3 to I-1 Commercial/Industrial
Rebate Program
• Proposed Funding: $160,000
• Rebates provided to Lodi's largest energy
users
• Rebate is $0.15/kilowatt-hour of energy
saved on their project
• Maximum rebate allowed under this
program is $20,000 per customer of record
�t z 40
Municipal Energy Efficiency &
Miscellaneous Projects
• Proposed Funding: $60,000
• These funds are earmarked for specific
energy conservation projects performed by
city departments on city facilities
10
CT
TJL1��
Evaluation, Measurement &
Verification Project
• Proposed Funding: $60,000
• Under state law, all utilities in California must
now expend some Public Benefit Program funds
on evaluating their programs and measuring the
actual energy savings achieved via those
programs
• Utilities should expend 6% to 15% of their
annual program budget (Lodi is expending 8.2%
in FY 08-09)
M
17
Summary
Program Title
Proposed Funding
Lodi Appliance Rebate
$207000
Lodi Home Improvement
$707000
Lodi G-1 Commercial
$207000
Lodi G-2 Commercial
$507000
Lodi G-3 to I-1 Program
$1607000
Municipal Projects
$607000
Program Evaluation
$607000
TOTAL
$440,000
C�
x
■ K
"Fine Print"
• All Lodi Public Benefit Programs are
based upon afirst-come, first-served
basis, and are provided until funds are
exhausted
• For specific program information, Lodi
residents and business owners can view
our web site: www.lodielectric.com; or call
us at 333-6815
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