DEPARTMENT
Water Enterprise
AGENDA NO.
11 MEETING DATE
June 13, 2023
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Public Hearing to Approve a Commercial Clothes Washer Rebate Program and Adopt Rules and Regulations: Regular Calendar
Project Manager: Julie Ortiz
Summary of
Proposed
Commission Action:
Public Hearing to approve a Commercial Clothes Washer Rebate Program and adopt Rules and Regulations to allow the San Francisco Public Utilities Commission to issue rebates for commercial- grade washing machines in an amount up to $5,000 dollars for each qualifying machine , to promote water and energy conservation in the City and County of San Francisco.
Background: Since 2004, a s part of its water conservation program, t he San Francisco Public Utilities Commission ( SFPUC) has provided c ommercial clothes washer rebates to encourage retail water service customers purchasing commercial-grade machines for laundromats , commercial facilities, or common area laundry rooms in multi-unit residential buildings to choose the most water- and energy-efficient machines that exceed federal standards for water savings. (The SFPUC also provides a separate Residential Clothes Washer Rebate program for residential -style machines used in small residential properties and within individual dwelling units in multi- family buildings.) The SFPUC started its commercial clothes washer rebate amount at $150 and increased it incrementally over the years to $200, then $400, and in 2015 to its current $500 per machine.
The SFPUC provides rebates to retail customers upon proof of purchase and installation of commercial machines certified as Energy Star Most Efficient (Energy Star). Energy Star washers use 25% less energy and 33% less water than conventional commercial washers. Since 2004, t he SFPUC has issued over 1,500 commercial washer r ebates, which reflects an estimated lifetime water savings of over 1,400- acre feet. The SFPUC’s conservation forecast model estimates a population of about 5,800 commercial washers in 2025 with 70% water-efficient and about 30% inefficient.
Customers who apply for commercial washer rebates from the SFPUC are required to report the full cost they paid for the machines. Over the last year, customer full purchase costs ranged from about $1,700 to over $5,000 . The Title: Approve an Increase to the SFPUC-Administered Commercial Washer Rebate Incentive Amount Commission Meeting Date: June 13, 2023
cost range reflects the variation in siz e and capacity of machines with larger, higher-capacity machines costing more.
The Board of Supervisors created a budgetary addback for this Program to address concerns that residents in some neighborhoods may have limited access to laundromats or common-area laundry rooms and by increasing its commercial rebate amount, the SFPUC could help to increase the availability of high-performance, water-efficient commercial clothes washing machines for the populations that rely on communal clothes washing facilities.
Increasing the rebate amount also may increase customer participation in the program, which could increase the number of existing inefficient commercial clothes washer replaced with water-efficient models and achieve greater water savings.
Description of
Action:
Staff recommends the Commission approve the Commercial Washer Rebate Incentive Program (Program) and adopt the attached Rules and Regulations to govern its administration. The Program is intended to increase the
accessibility of high- performance, water -efficient commercial clothes washing machines for San Franciscans who rely on communal clothes washing facilities and to increase water savings from replacement of existing high-water use machines with water- and energy-efficient models.
As provided under the proposed Program Rules and Regulations (attached), applicants will have to meet all eligibility requirements, submit a complete and accurate application, and provide proof of purchase and installation to qualify for the reba te. The SFPUC would pay any rebate on a reimbursable basis and the amount of the rebate would be limited to the actual, documented cost of the purchase.
Based on current funding availability (see Budget & Costs below), the maximum rebate amount will be up to $5,000 for each qualifying machine.
Once such funds are exhausted, the General Manager may adjust the maximum rebate amount based on available funds.
If approved, SFPUC Water Conservation staff will administer the Program, in compliance with SFPUC accounting and City of San Francisco Controller’s Office guidelines.
The SFPUC intends to promote the Program through multiple means, including but not limited to, information on the SFPUC’s website (www.sfpuc.org/savewater) articles in the SFPUC’s printed and electronic newsletters to customers, social media posts, emails , and co -promotion through other City and community and neighborhood organizations.
Budget & Costs: The SFPUC funds most if its water conservation incentive programs, including the commercial conservation rebate program, through its Water Conservation operating budget. The proposed increase in the commercial rebate amount would be funded through a one-time appropriation of $350,000 Title: Approve an Increase to the SFPUC-Administered Commercial Washer Rebate Incentive Amount Commission Meeting Date: June 13, 2023
as directed by the San Francisco Board of Supervisors. The proposed rebate amount of up to $5,000 for each qualifying machine would continue until the appropriation is expended. Upon exhaustion of the appropriation, the General Manager may adjust the rebate amount based on available funds for the Program.
Schedule: If this action is approved by the Commission, the SFPUC Commercial Clothes Washer Rebate Program and associated Rules and Regulations will become effective July 1, 2023. The Water Conservation Section will update the Commercial Clothes Washer Rebate Program application materials and implement an outreach plan, starting in Fiscal Year 2023-2024.
Environmental
Review:
This action does not constitute a “project” under the California Environmental Quality Act Guidelines section 15378(a) because there would be no physical change in the environment.
Attachment: 1. Commercial Washer Rebate Program Terms and Rules
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) is committed to helping its customers achieve and maintain efficient water and energy use. A Commercial Clothes Washer Rebate Program encourages the purchase of water - and energy- efficient commercial- grade washing machines to support conservation efforts and to increase access to efficient washing machines for San Francisco residents who rely on commercial laundromats, commercial facilities, or common area laundry rooms in multi -unit residential buildings ; and
WHEREAS, The attached Rules and Regulations to govern the Program would establish requirements for eligibility and payment of any rebate; and WHEREAS, This action does not constitute a “project” under the California Environmental Quality Act Guidelines section 15378(a) because there would be no physical change in the environment; and
WHEREAS, On June 13, 2023, this Commission held a hearing to consider the proposed Rules and Regulations for the Commercial Clothes Washer Rebate Program, for which notice was posted on June 2, 2023, in conformance with Charter Section 4.104; therefore, be it
RESOLVED, That this Commission hereby approves the Commercial Clothes Washer Rebate Program and adopts the attached Rules and Regulations, effective July 1, 2023; and be i t further
RESOLVED, That the amount of the rebate under the Program for each qualifying machine shall not exceed $5,000 so long as funds are available from a one-time appropriation in the amount of $350,000 from a budgetary addback by the Board of Supervisors. Upon exhaustion of the appropriation, the General Manager may adjust the maximum amount of the rebate based on the availability of funds for this Program.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of June 13, 2023.
Secretary, Public Utilities Commission
[PROPOSED]
San Francisco Public Utilities Commission
Rules and Regulations Implementing the
Commercial Clothes Washer Rebate Program
London N. Breed, Mayor
COMMISSIONERS
Newsha K. Ajami, President
Sophie Maxwell, Vice President
Timothy Paulson
Anthony Rivera
Kate H. Stacy
Adopted: [DATE], by Commission Resolution No. [XXXXXX]
Effective: July 1, 2023
City and County of San Francisco Public Utilities Commission Commercial Clothes Washer Rebate
Program Rules and Regulations i Adopted: [DATE]
Effective: [DATE]
THE COMMERCIAL CLOTHES WASHER REBATE PROGRAM
The purpose of the Commercial Clothes Washer Rebate Program (Program) is to save water by encouraging commercial and multi-family properties in the San Francisco Public Utilities Commission (SFPUC) retail water service area to purchase the most water- and energy-efficient models of commercial-grade clothes washing machines. The rebate program is intended only for commercial clothes washing machines used in laundromats, commercial facilities, and common area laundry rooms of large multi-unit residential buildings.
AUTHORITY FOR AND PURPOSE OF THESE RULES AND REGULATIONS The SFPUC has adopted these Rules and Regulations, as may be amended, to provide rules for participation in the Commercial Clothes Washer Rebate Program.
City and County of San Francisco Public Utilities Commission Commercial Clothes Washer Rebate
Program Rules and Regulations ii Adopted: [DATE]
Effective: [DATE]
TABLE OF CONTENTS
RULE 1.0 - DEFINITIONS ......................................................................................................................1 RULE 2.0 – GENERAL COMMERCIAL WASHER REBATE PROGRAM INFORMATION .................................2 RULE 3.0 – COMMERCIAL WASHER REBATE PROGRAM REQUIREMENTS ..............................................1 RULE 4.0 -- APPLICATION PROCESS……………………………………………………………………………………………………..4
Commercial Washer Rebate Program Page 1 of 5
Rules and Regulations Adopted: [DATE]
Effective: [DATE]
RULE 1.0 – DEFINITIONS
Unless otherwise expressly stated and defined in a separate Rule, the following terms in bold font shall, for the purpose of these Regulations, have the meaning indicated following the colon (:).
Applicant: A SFPUC retail water customer or representative who is authorized to submit the application on behalf of a customer.
Application: A complete set of required documents and information reported through the water conservation online application portal.
Customer: Any commercial laundromat, operator of a laundry facility or a large multi-family property that receives a SFPUC water bill and meets the eligibility requirements of these Rules and Regulations.
Energy Star Most Efficient (ESME): A certification through the EPA’s WaterSense program.
Qualifying Product List (QPL): A list that contains every eligible make and model for rebate eligible commercial washers. The list contains only those washers certified by the WaterSense ESME label.
Participant: An Applicant approved by the SFPUC for a Rebate under these Rules and Regulations.
Proof of Payment (POP): An itemized receipt for the purchase of a clothes washer that conforms to the eligibility requirements of these Rules and Regulations.
Rebate: A payment offered to a Participant upon completion of a purchase transaction.
WaterSense: A voluntary partnership program sponsored by the U.S. Environmental Protection Agency (EPA), which is a label for certified water-efficient products.
W-9: A form, officially called Request for Taxpayer Identification Number and Certification, which is typically used when a person or entity is required to report certain types of income.
The form helps businesses obtain important information from payees to prepare information returns for the IRS.
Commercial Washer Rebate Program Page 2 of 5
Rules and Regulations Adopted: [DATE]
Effective: [DATE]
RULE 2.0 – GENERAL COMMERCIAL WASHER PROGRAM INFORMATION The following information is applicable to all program sections:
2.1 PARTICIPATION GENERALLY
The SFPUC offers a rebate for each qualifying commercial-grade high-efficiency clothes washer installed in a commercial setting. The Program is intended for settings that require constant, daily use by many people, and large capacities of laundry. The SFPUC’s commercial washer rebate program is not for single-family homes or small multi-family properties; a separate SFPUC residential washer rebate program serves small residential properties.
2.2 CUSTOMER RESPONSIBILITY
The Customer is solely responsible for purchasing, operating, and maintaining any clothes washing machine for which the Customer is seeking a Rebate under this Program.
2.3 RULES AND REGULATIONS
Submission of an Application constitutes an Applicant’s acknowledgment and agreement that the Applicant shall comply with these Rules and Regulations as may be amended.
2.4 TERMINATION AND LIMITATION OF SFPUC LIABLITY
SFPUC may, in its sole discretion and authority, reject an Applicant’s application to the Program if it does not meet all eligibility requirements or include all required documentation.
The SFPUC may, in its sole discretion and authority, terminate, or alter the Program.
Funding is limited and rebates are available on a first come, first served basis until funds run out or the Program terminates.
Installation of qualifying washer models may not result in lower water bills.
SFPUC shall bear no responsibility or liability for the cost, expense, operation, maintenance, or repair of a Participant’s commercial clothes washing machine. SFPUC shall likewise bear no responsibility or liability for delay in accepting an Application, rejection of an Application, or modification or termination of the Program.
Commercial Washer Rebate Program Page 3 of 5
Rules and Regulations Adopted: [DATE]
Effective: [DATE]
RULE 3.0 – COMMERCIAL WASHER REBATE PROGRAM PARTICIPATION REQUIREMENTS To receive a Commercial Clothes Washer Rebate, an Applicant must meet the following eligibility criteria:
3.1 CUSTOMER ELIGIBILITY
To participate in the Program, the Customer must:
be a commercial laundromat, commercial property, or the owner, manager, or operator of laundry facilities in the common area of a multi-family building with at least 10 dwelling units;
be a SFPUC Water Account holder or duly authorized representative; provide a business and operating address within the City and County of San Francisco; and have verifiable contact information.
3.2 COMMERCIAL CLOTHES WASHER EQUIPMENT ELIGIBILITY
To be eligible for a rebate, the commercial clothes washer equipment must:
be newly purchased or leased;
be identified by make and model;
the model number must appear on the current Qualifying Product List for ESME commercial-grade clothes washers [www.sfpuc.org/accounts-services/sign-up-for- savings/commercial-washer-rebate];
for multi-unit accounts, be installed in a common area of a building; and be installed prior to the Application.
NOTE: A commercial clothes washing machine replacing a machine for which SFPUC previously issued a Rebate is eligible only if it has been in place for a minimum of 10 years.
3.3 REBATE ELIGIBILITY, AMOUNT, AND PAYMENT
(A) Rebate Eligibility
To receive a rebate, a Participant must submit a Proof of Payment with an itemized cost of the washer equipment. Receipts and/or invoices that do not include the itemized cost of the washer(s) will be rejected.
The Applicant must submit a W-9 to the City Controller within 90 days of purchase or lease (see Rule 4 below).
The Applicant must allow an onsite inspection by SFPUC staff to verify installation of a qualifying machine before the Rebate is approved.
Commercial Washer Rebate Program Page 4 of 5
Rules and Regulations Adopted: [DATE]
Effective: [DATE]
For leased equipment, the Customer must submit a new signed lease agreement with a minimum term of five years. The lease must identify the make, model number, and serial number of washers installed.
(B) Rebate Amount and Payment
The Rebate amount shall not exceed the purchase price of the commercial clothes washing machine (not including sales tax).
The maximum amount of a Rebate under this Program is $5,000 for each qualifying commercial clothes washing machine.
The SFPUC endeavors to issue a Rebate check within 12 weeks of approval of an Application.
Commercial Washer Rebate Program Page 5 of 5
Rules and Regulations Adopted: [DATE]
Effective: [DATE]
RULE 4.0 – APPLICATION PROCESS
Applicants must follow these steps to apply:
Read the application directions and program rules before starting an online application Verify purchase of a qualifying Energy Star Most Efficient commercial clothes washer. A separate application must be submitted for each Water account number. Register the Water account with the SFPUC’s Water Conservation Application System. To register, the Water Service Account Number and the account service address zip code are needed.
https://conservation.sfwater.org/Login.aspx?ReturnUrl=%2f
Or contact the SFPUC’s Water Conservation Section at 415-551-4730. Submit a completed W-9 form to the City Controller's Office. Participate in a SFPUC inspection after the Application is submitted.