ITEM:		PUBLIC HEARINGS
19.	CONSIDER SECOND READING AND ADOPTION OF ORDINANCE NO. 144 -- AN ORDINANCE OF THE MONTEREY PENINSULA WATER MANAGEMENT DISTRICT AMENDING THE REBATE PROGRAM AMOUNTS AND ADDING NEW REBATES FOR GRAYWATER IRRIGATION SYSTEMS AND COMMERCIAL, INDUSTRIAL, AND INSTITUTIONAL RETROFITS
Meeting Date:			August 16, 2010	Budgeted:	Yes
From:			Darby Fuerst,	Program/	4-2-3
			General Manager	Line Item No.:
Prepared By:			Stephanie Pintar	Cost Estimate:	$350,000
General Counsel Review: Yes
Committee Recommendation: The Water Demand Committee reviewed this item on June 18, 2010, and recommended approval. The Technical Advisory Committee (no quorum) supported the ordinance by consensus at a meeting on August 3, 2010.
CEQA Compliance: Categorical exemption under Class I, §15301 of the California Environmental Quality Act (CEQA).

SUMMARY: Draft Ordinance No. 144 (Exhibit 19-A), expands and amends the Rebate Program to achieve greater water savings. The ordinance enacts the following changes to Rule 141, Water Conservation Rebates:

1. New Rebates for:

· High Efficiency Connectionless Steamers (estimated savings of 0.25 AFA)

· High Efficiency Commercial Dishwashers (estimated savings of 0.20 to 0.37 AFA)

· Dry Vacuum Pumps (estimated savings of 0.64 AFA)

· Graywater Irrigation Systems (estimated savings fluctuate depending on existing equipment and other variables)

· Cooling Tower pH/Conductivity Controllers (estimated savings of up to 4 AFA)

· Retrofitting of continuous water flow medical steam sterilizers with water tempering devices (estimated savings of 1.4 AFA)

· Ultra High Efficiency Toilet (i.e., <1.0 gallons per flush with WaterSense certification through the Environmental Protection Agency) at a flush rate that saves 37 percent more water than a standard High Efficiency Toilet

2. 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.

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

4. Rebate amounts are increased for:

Pint Urinals (from $250 to $300)

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

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

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

5. 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 accommodates purchasers of Qualifying Devices that may not install the device for more than 90 days due to circumstances beyond their control.

6. 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 (CAW) and are proposed for continued funding in California American Water’s 2012-2014 General Rate Case.

Graywater Irrigation System Rebates were discussed and supported 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.

This ordinance is supported by California American Water, the Water Demand Committee, and by consensus at a Technical Advisory Committee meeting (no quorum).

RECOMMENDATION: The Board should approve the second reading and adopt Ordinance No. 144. The ordinance has been written with an effective date of September 1, 2010, and a retroactive date for purchase of Graywater Irrigation Systems of July 1, 2010. Following adoption, a Notice of Exemption (CEQA) will be filed with the County Clerk.

IMPACT ON STAFF/RESOURCES: The Rebate Program is jointly funded through several mechanisms. The CPUC approved a $924,000 3-year budget (2009-2011) in the CAW conservation filing to fund Rebates for CAW customers, the District budgeted $25,000 for Fiscal Year 2010 for non-CAW Rebates, and the District received approval of $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, and the City of Seaside augments the Rebates with an additional rebate for properties located within the Seaside Municipal Water District. Since the inception of the program in 1997, over 277 acre-feet of water per year have been saved.

EXHIBITS

19-A Draft Ordinance No. 144

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