1 DATE: May 6, 2025
TO: Justin Hess, City Manager
FROM: Mandip Kaur Samra, General Manager, Burbank Water and Power VIA: Drew Johnstone, Sustainability Officer
BY: Drew Kidd, Marketing Associate
SUBJECT: Approval of the Updates to Burbank Water and Power’s P ortfolio of
Customer Rebates for Efficiency and Electrification
RECOMMENDATION
Approve the proposed changes to Burbank Water and Power’s ( BWP) rebate portfolio effective July 1, 2025, that will:
1. Update rebated measures and increase the rebate cap for business rebate programs;
2. Add rebates for renewable energy storage;
3. Update residential rebates for efficiency and electrification; and
4. Update rebates for used electric vehicles and charging infrastructure.
BACKGROUND
Every year, BWP strives to achieve energy and water consumption reduction goals through a comprehensive and cost -effective portfolio of residential and business programs and services. Annually, the efficiency portfolio is reviewed for sound revisions and a dditions. For years, BWP has grown services, seeking to meet the entire community’s needs , from income -challenged families to thriving enterprises. These services certainly assist those participating in the programs, but they also help BWP contain resource costs for everyone in Burbank. The recommendations in this report continue this practice.
BWP’s annual goal is to reduce energy and water consumption throughout Burbank by 1% of sales. This goal translates to about 1 0 million kilowatt-hours (kWh) and about 49 million gallons of potable water. While 1% may not sound very ambitious, it is a stretch goal that is difficult to achieve, especially year after year. 10 million kWh is the equivalent
2 of 1,100 homes’ energy usage for an entire year , and 49 million gallons of water is the equivalent of 364 homes’ usage for a year. The table below shows the last three years of community-wide savings attributed to BWP’s energy and water conservation portfolio.
Fiscal Year Energy Reduction Water Reduction
2019-20 7.3 million kWh (69% of goal) 40.2 million gallons (83% of goal) 2020-21 4.6 million kWh (46% of goal) 25.5 million gallons (52% of goal) 2021-22 6.8 million kWh (68% of goal) 34.6 million gallons (70% of goal) 2022-23 5.1 million kWh (51% of goal) 46.8 million gallons (94% of goal) 2023-24 7.7 million kWh (77% of goal) 18.2 million gallons (37% of goal) The rebate programs in this report for low-income customers, efficiency, and electrification are funded by BWP’s Public Benefits Fund, which is mandated by the state and requires BWP to set aside 2.85% of electric revenues to invest in these types of programs and services . BWP’s Electric Vehicle ( EV) charger rebates and used E V rebates are funded through the California Air Resources Board’s ( CARB) Low Carbon Fuel Standards program and do not directly impact customer rates.
BWP staff presented these updates to the BWP Board at the April 3 , 2025 meeting and received a unanimous recommendation that the City Council (Council) approve the proposed updates.
DISCUSSION
Updating BWP’s programs to align with modern industry standards is essential to increasing participation and continuing the program portfolio’s succes s. BWP proposes implementing a new suite of rebates for common energy efficiency and electrification measures (Attachment 1). The proposed changes will be implemented by the start of the new Fiscal Year (FY) on July 1, 2025.
Business Rebates
The Business Rebate Program, initially named Energy Solutions, is over 20 years old and was last updated in 2009. Since FY 2020-21, the program has achieved an average of 4,186 megawatt-hours (MWh) in annual energy savings and an average 1.12-megawatt (MW) reduction in demand. The proposed updates ensure that the rebates offered maintain BWP’s cost-effective rebate portfolio. In summary, staff are recommending the following updates:
1. Add rebates for common food service measures, such as efficient commercial ovens, commercial refrigeration measures, and new commercial electrification measures, such as heat pump water heaters.
2. Increase the deemed incentive cap from 25% to 100% of project cost. 3 3. Increase the annual customer cap from $100,000 to $200,000 per year.
Commercial Landscape Equipment Battery Rebate
Providing a rebate for electric landscape equipment helps local businesses with the upfront cost of converting equipment while also promoting a healthier, quieter community.
Council approved a rebate program on October 1, 2019, which enabled BWP to provide Burbank-based lan dscape companies that participate in the South Coast Air Quality Management District’s (SCAQMD) Commercial Electrical Lawn and Garden Equipment Incentive and Exchange Program with an additional rebate for an extra battery. Having spare batteries is importa nt for electric landscape equipment to ensure continuous operation, increased efficiency, battery life management, and emergency preparedness.
Staff are recommending the following updates to the existing program:
1. Add an enhanced rebate for m unicipal, educational, and non-profit customers for up to 85% of the cost of spare battery(ies), not to exceed $2,500.
2. For all other commercial customers, the general incentive will provide a rebate for up to 85% of the cost of spare battery(ies), not to exceed $500.
New Renewable Energy Storage Rebate
Storing solar energy for use after the sun goes down is an essential strategy for achieving Burbank’s carbon-free energy goals and increasing local energy resilience . When installed alongside a solar system, batteries allow a customer to use stored solar energy when the solar system is no longer generating when the sun goes down. This allows for greater grid support during summer peak periods, reducing the utility's carbon footprint and lessening the cost of electricity to the utility during extreme peak conditions.
BWP plans to launch the Council-adopted Solar Net Billing program in January 2026.
Introducing this rebate ahead of the new program's launch will help support solar customers on the solar net billing rate and make batteries more cost-effective for both new and existing solar customers.
The new rebate has two main objectives : 1) increase the general installation of battery storage systems in Burbank to support the grid and integrate more renewable energy and 2) provide focused support to aging 4kV systems in BWP’s distribution infrastructure.
Therefore, a rebate of $275/kWh is pro posed as a general rebate, and an enhanced rebate of $325/kWh is proposed for customers currently on one of BWP’s 4kV circuits.
Given a 10-year battery lifespan, those receiving the general rebate break even around year seven, and those with the enhanced 4kV rebate break even around year six. If the Federal Tax Credit (FTC) ceases, then the BWP rebate would need to be increased by $255/kWh to achieve the same results. $255/kWh is the current average value of the 30% 4 FTC for battery storage systems. Should this situation occur, then BWP staff will propose this increased incentive to the Board for approval.
Greater detail on the research conducted to determine the rebate amounts can be found in Attachment 1. In summary, based on research and the financial estimation completed, below are recommendations for a pilot program with a $156,000 budget:
• Create a rebate program with two categories:
1. General: $275/kWh one-time rebate (or $530/kWh if the FTC ceases and upon BWP Board approval)
2. Enhanced 4kV: $325/kWh one-time rebate ($580/kWh if the FTC ceases and upon BWP Board approval)
• Open to residential and non-residential customers.
• This program is for new battery storage systems, not existing ones. This is meant to spur additional battery storage installed alongside solar. • Battery must have a minimum capacity of 5 kWh.
• Customers participating in the program have no limit to battery capacity outside of BWP’s rules and regulations, however, BWP will only provide a rebate for the first 100kWh of battery capacity per site.
• BWP will a pply an early termination fee if the customer remov es a functioning battery before the end of year 10. The fee would be pro -rated, and BWP will provide exceptions for situations where the battery stops functioning on its own.
Residential Rebates for Efficiency and Electrification
BWP offers the Home Rewards Rebate Program and the Residential Building Electrification Program to all residential customers regardless of income. Both programs can lower overall utility bills while minimizing our customers’ dependence on fossil fuels, contributing to a healthier, more sustainable community.
To make energy efficiency more accessible to more customers , BWP staff proposes enhanced rebates for low -income customers. To qualify for the enhanced rebates, the applicant must either be an affordable housing provider installing the measure(s) in an affordable housing unit or a low -income residential customer enrolled in BWP’s Lifeline Program or Burbank Utility Service Subsidy (BUSS).
A table of proposed rebates and background research conducted can be found in Attachment 1. The recommended rebate amounts are what BWP would need to provide low-income customers, in addition to the existing BWP rebates, to cover up to the full cost of the measure, but never more than the amount that the customer pa ys after state and federal rebates. For FY 25-26, BWP has allocated $275,000 of the Public Benefits budget for residential rebates.
5 Used EV Rebate
The Used E V Rebate Program was launched in 2020 to provide rebates to customers who purchased a used electric vehicle. This program is funded through CARB ’s Low Carbon Fuel Standards (LCFS) program, which was established to accelerate transportation electrification in the state. The intent of the program was to reduce the cost of used EV purchases since most local, state, and federal incentives are for new EV s only. The current rebate for a used EV is $1,000, with a limit of two rebates per account.
As of January 2025, BWP has provided used EV rebates to 175 customers.
Staff proposes the following enhancements to the Used EV Rebate Program:
1. Increasing the r ebate from $1,000 to $4,000 for low-income customers enrolled in BWP’s programs, such as the BUSS or Lifeline.
2. Adding a price limit of $25,000 for used EVs to be eligible for the proposed low-income rebate of $4,000.
The proposed changes will make it easier for BWP to meet LCFS requirements to spend at least 50% of LCFS proceeds in disadvantaged communities, low-income communities, or low-income customers. Additionally, the proposed rebate and price limit match those of the Used Clean Vehicle Credit, a tax credit offered by the Internal Revenue Service (IRS). Customers who qualify for a used EV rebate from BWP are also likely to qualify for a federal tax credit of $4,000. When combined, customers could receive up to an $8,000 incentive, or up to 32% off the purchase price of a used EV.
Commercial EV Charging Station Rebate Program
This program has been in place since 2015 and provides rebates to commercial and multi- family customers who install EV chargers at their properties. It is funded through CARB’s LCFS program. As of January 2025, BWP has provided 165 EV charger rebates. Staff proposes the following enhancement to the Commercial EV Charging Station Rebate Program:
1. Update rebates for municipal, educational, and non-profit customers to provide up to 75% of the total project cost or $200,000, whichever is less.
In the coming years, the City’s fleet will undergo a conversion to zero-emission vehicles, and charging infrastructure is needed to power these vehicles. The proposed rebates for municipal EV charging projects will help reduce spending from the City’s General Fund.
Similarly, educational and non -profit customers, who often have limited funds for new infrastructure, will have more rebates to install EV charging for their staff, students, fleet, or visitors.
6 COMMUNITY OUTREACH
BWP staff will market the updated program s and new rebates to the community . The residential and low -income programs are marketed through numerous channels, including BWP’s bill inserts, bus shelter ads, and web platforms, which include the main website, and customer portals. BWP staff will also participate in community events, workshops, and meeting s with seniors – many of whom are low -income. Flyers and handouts will be placed in the lobbies of BWP, the Community Services Building, and the Joslyn Adult Center.
BWP is developing a supplemental guide for the business rebate program that detail s eligibility requirements that would be available when the new program launches. Since this is the first time BWP’s business rebate program will include measures for food services and commercial refrigeration, staff plans to target those customers via the Burbank Chamber of Commerce and Burbank Hospitality Association. The Key Account Manager will promote the commercial program updates directly with large business customers and educational sector customers via email, phone, and in-person meetings.
BWP will also utilize social media, newsletters, and posts on myburbank.com to inform the broader community about program updates.
ENVIRONMENTAL REVIEW
Staff has reviewed this item in accordance with the California Environmental Quality Act (CEQA) and believes that approval of this item is exempt from CEQA. This item is related to monetary adjustments to existing rebate or incentive programs. All programs are designed to increase efficiency, promote renewable energy, or promote electric transportation, which results in reduced emissions and environmental impacts.
Accordingly, this item involves government fiscal activities unrelated to any specific project with the potential for an environmental impact, and even if it was, the fiscal activities fund private improvements to existing structures, which would be categorically exempt from CEQA. (See 14 CCR § 15378 (fiscal activities that do not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment are not projects); 14 CCR § 15301 (categorical exemption for minor alterations of existing public or private structures, facilities, and mechanica l equipment, involving negligible or no expansion of use)). As such, this item is exempt from CEQA and no further environmental review is necessary.
FISCAL IMPACT
As a result of the proposed additions and updates for the efficiency, electrification, and renewable energy programs, the rebate budget, currently set at $650,000 for FY 2024- 25, would be increased to $1.386 million for FY 2025-26. The funding source is BWP’s Public Benefits Fund, which has sufficient funds to cover all the recommended changes to BWP’s programs and does not directly impact customer rates. 7 The proposed changes to the transportation electrification rebates would increase the budget, which is currently set at $675,000 in FY 2024-25, to $705,000 in FY 2025-26.
These programs are funded through CARB’s Low Carbon Fuel Standards program and do not directly impact customer rates.
CONCLUSION
Based on a review of the existing customer program portfolio, the updates to the efficiency and elect rification rebate s recommended in this staff report will improve customer satisfaction and make more effective use of public benefits and LCFS funds. The enhancements help the BWP program portfolio align with the goals of the Council- adopted Greenhouse Gas Reduction Plan and Integrated Resource Plan.
Therefore, s taff recommends that Council approve the proposed changes to BWP’s rebate portfolio effective July 1, 2025, that will:
1. Update rebated measures and increase the rebate cap for business rebate programs;
2. Add rebates for renewable energy storage;
3. Add rebates for efficiency and electrification for low-income customers and affordable housing; and
4. Update rebates for used electric vehicles and charging infrastructure.
ATTACHMENT
Attachment 1 – Updates to Burbank Water and Power’s Portfolio of Customer Rebates for Efficiency and Electrification