1 STAFF REPORT
DAT
E: August 22, 2023
TO: Justin Hess, City Manager
FROM: Dawn Roth Lindell, General Manager, Burbank Water and Power VIA: Drew Johnstone, Acting Assist ant General Manager, Sustainability, Marketing, and Strategy
BY: Ruzan Soloyan, Marketing Associate
SUBJECT: Approval of the Proposed Residentia l Building Electrification Rebate Program for Implementation
RECOMMENDATION
1) Approve Burbank Water and Power’s (BWP ) Residential Building Electrification (BE) Rebate Program for implementation; and
2) Find that the BE Rebate Program has no reasonably foreseeable significant negative c
hange to the environment under t he California Environmental Quality Act (CEQA) 14 Cal. Code Regs § 15061(b)(3).
BACKGROUND
Buildings significantly contribute to greenhouse gas (GHG) emissions in the state and the City of Burbank. According to the Californ ia Air Resources Board (CARB), buildings comprised 14% of the GHG emissions statewide in 2020.
In December 2018, the City Council adopted the 2019 Integrated Resource Plan (IRP), which called for "beneficial electrification” (BE). BE is a term for replacing fossil fuel use with electricity in a way that reduces emissions, enhances the management of the power grid, and helps customers optimize their cost s in the long run. The IRP was developed with community input and identified BE as a vital area to reduce GHG emissions and integrate renewable energy in Burbank.
In addition, on May 3, 2022, the City Council adopted the Greenhouse Gas Reduction Plan (GGRP) update. Burbank’s GGRP examines community wide activities that result in GHG emissions and establishes strategies that help reduce those emissions in future and existing development through voluntary and mandatory actions. The GGRP includes strategies that leverage BWP programs to convert 3,000 residential and 170 commercial
WATER AND
POWER
2 gas-fueled HVAC and water heating units to elec tric heat pumps, reducing 6,867 metric tons of CO2 emissions by 2030.
Given the vision outlined in the IRP, GGRP, and the GHG-reduction opportunity that BE presents, implementing a residential BE rebate program is an important tool to encourage customers to invest in the replacement of equipment that burns gas with efficient electric alternatives that have zero on-site emissions.
DISCUSSION
BWP proposes implementing and administering a new residential BE rebate program for residential customers who swit ch their gas-burning equipmen t with efficient electric equipment, with funding from the public benef its fund. The money collected from the public benefits fund must be used to support investments in any or all of the following:
Demand-side management services for energy efficiency and conservation programs
New investments in renewab les or other clean energy
Research development and demonstration programs for the public interest to advance science or technology
Programs or services for income-eligib le electric customers, including energy efficiency services, education, weatherization, and rate discounts
The BE rebate program qualif ies as demand-side management services for energy efficiency and conservation because it supports investments in energy-efficient electric technologies that enable demand-flexible homes . The BE rebate program also qualifies as a new investment in clean energy bec ause the program will be incentivizing the replacement of gas-burning equipment with equi pment that has zero on-site emissions.
The program provides the pub lic benefits of improved ener gy efficiency, a cleaner environment, and lower costs for consumers.
Program Objective
The objective of the program is to support the installation of BE equipment by residential customers to support clean energy adoption, enable demand-flexible homes, and lead to reduced GHG emissions and pollution.
Rebate Amounts
BWP staff conducted research and analysis and developed incentive levels for BE equipment that reflect BWP’s ongoing commitment to providing a cost-effective portfolio of energy efficiency programs to Burbank’s customers.
3 The proposed residential BE rebates are as follows:
Electric Equipment BWP Rebate (Proposed)
Heat Pump HVAC $1,000/ton
Mini-Split Heat Pumps $1,000/ton
Heat Pump Water Heater $1,500
Heat Pump Cloth Dryer $200
Induction Cooktop $200
Electric Range with Induction or Electric Cooktop $500
Electric Resistance Wall Oven $200
Panel Upgrade $750
In addition to electric appliance rebates, the program provides a rebate for panel upgrades, which are often a cost ly prerequisite to preparing a site for BE adoption. In addition to water heaters, electric stoves, and other electric appliances, a panel upgrade may also enable a homeowner wit h the additional capacity to install electric vehicle charging stations, solar, and battery storage.
With this proposed program, the BWP incentive amounts are in the same range as other California utilities. Staff believes the proposed rebate funding levels are sufficient to help overcome market price barriers and generat e participation in the program while maintaining a cost-effective energy efficiency portfolio.
Eligible Rebate Costs and Limits
Eligible costs include equi pment, installation, and l abor. Permitting costs, when necessary, are also eligible.
Customer Eligibility
All single-family and multi-family customers on a "Residential Service" rate, as outlined in section 1 of article X in the citywide fee sc hedule, are eligible to participate in the program. Customers will need to fill out the Residential Building Electrification Rebate Program Application and includ e copies of the required documentation to apply for a rebate. The anticipated launch of the program is October 2, 2023.
ENVIRONMENTAL REVIEW
This activity is covered by the common- sense exemption because it does not have a reasonably foreseeable significant negativ e change to the environment under the California Environmental Quality Act (CEQA) 14 Cal. Code Regs § 15061(b)(3).
FISCAL IMPACT
Funding for the program is budgeted in the fiscal year 2023-2024 budget for $100,000 utilizing the public benefits fund. This funding level has the potential to provide rebates to over 100 customers.
4 CONCLUSION
The proposed Residential Building Electrification Rebate Program aims to address the building electrification challenges by providing rebates for all electric technologies, educating the Burbank community about the advantages of building electrification, a nd increasing customers safety and comfort. The tentative program launch date is October 2, 2023, if approved by the Burbank City Council on August 22, 2023.
ATTACHMENTS
Attachment 1 – Residential Building Electrification Rebate Program Application