POLICY ADVISORY COMMITTEE AND TECHNICAL ADVISORY COMMITTEE
2.	DEVELOP RECOMMENDATION TO THE BOARD REGARDING FIRST READING OF ORDINANCE NO. 140, AMENDING THE REBATE PROGRAM AMOUNTS, DELETING 1.6 GALLON PER FLUSH TOILETS FROM THE REBATE PROGRAM, AND ADDING REBATES FOR LAWN REMOVAL, SYNTHETIC TURF INSTALLATION, AND OTHER COMMERCIAL/ INDUSTRIAL/INSTITUTIONAL RETROFITS
Meeting Date:		October 12, 2009	Budgeted:	Yes.
From:		Darby Fuerst,	Program/
		General Manager	Line Item No.: 4-2-3
Prepared By:		Stephanie Pintar	Cost Estimate:	N/A
General Counsel Review: Counsel has reviewed the ordinance.
Committee Recommendation: The Water Demand Committee recommends adoption.
CEQA Compliance: This ordinance is exempt as it is not a Project under CEQA

SUMMARY: Draft Ordinance No. 140 (Exhibit 2-A), an ordinance expanding the Rebate Program, has been referred back to committee by the Board for review and recommendation. The draft ordinance expands the Rebate Program to include lawn removal, synthetic turf, high efficiency urinals, pint urinals, rotating sprinkler nozzles, water brooms, high efficiency commercial clothes washers, cooling tower conductivity controllers, air-cooled ice machines, and X-ray film processor recirculation systems. Other changes to the Rebate Program include the deletion of rebates for ultra-low flush (ULF) 1.6 gallon-per-flush toilets, increases in current rebate amounts for High Efficiency Toilets, high efficiency washing machines and Zero Water Consumption Urinals, and amendments and additions to Rule 11, Definitions. Draft Ordinance No. 140 includes rebates discussed during hearings in 2008 before the California Public Utilities Commission (CPUC) during the consideration of the California America Water (CAW) conservation budget.

In recommending the proposed rebates, staff researched other water efficiency Rebate Programs. All proposed rebate amounts and water savings are supported through extensive research and documentation, particularly the Rebates that are proposed for Non-Residential appliances. Rebates proposed in Ordinance No. 140 are comparable with Rebates offered by other agencies throughout the state and were reviewed by the TAC, the PAC, and provided to CAW. The addition of Non-Residential technology to the Rebate Program is necessary to further reduce water consumption within the District.

On October 1, 2009, the Water Demand Committee review the definition of “Lawn” in relation to the descriptive qualities that indicate its removal should qualify for a Rebate. The committee proposed a more descriptive revision to the definition. An errata sheet showing the Water Demand Committee recommendations will be provided at the meeting on October 14, 2009.

The Water Demand Committee also recommended that the ordinance require the replacement of lawn areas with either low water using plants or with other permeable surfaces such as paving stones and gravel. Synthetic grass is another permeable option. The committee also recommended that the maximum square-footage for lawn removal and synthetic turf installation be reduced from 5,000 square-feet to 2,000 square-feet. Staff was asked to give an update about the program to the Board after several months.

At the September 3, 2009, Policy Advisory Committee (PAC) and Technical Advisory Committee (TAC) meeting, District staff was asked to provide water savings estimates for the proposed rebates. All new rebates offer significant water savings over conventional fixtures. Staff will provide the committee with a chart showing possible savings at the PAC/TAC meeting. Savings will vary depending on the existing circumstances, particularly with Non-Residential retrofits.

RECOMMENDATION: The PAC/TAC should adopt a Board recommendation.

IMPACT ON STAFF/RESOURCES: Increased participation in the rebate program has impacts on staff as the District administers the rebate programs for the District. However, the District has been able to accommodate the existing program and the new database will enhance staff’s ability to process and issue rebates. 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 $10,000 for Fiscal Year 2009-2010 for non-CAW rebates, and the District was approved $15,000 annually for a “Cash For Grass” program by the CPUC in CAW’s conservation filing. 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, more than 224 acre-feet of water have been saved.

EXHIBITS

2-A Draft Ordinance No. 140

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