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Public Hearing to approve the Irrigation Controller Rebate Program

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August 27, 2024

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Public Hearing to approve the Irrigation Controller Rebate Program
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August 27, 2024
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DEPARTMENT

Water Enterprise

AGENDA NO.

11 MEETING DATE August 27, 2024

AGENDA ITEM
Public Utilities Commission
City and County of San Francisco

Calendar: Regular Calendar
Project Manager: Julie Ortiz
Public Hearing to Approve an Irrigation Controller Rebate Program and Adopt Rules and Regulations

Summary of
Proposed
Commission Action:

Public Hearing to approve the Irrigation Controller Rebate Program and adopt Rules and Regulations to allow the San Francisco Public Utilities Commission to promote outdoor water efficiency in its retail service area, by issuing rebates to customers that purchase and install U.S. Environmental Protection Agenc y WaterSense-labeled weather- or soil moisture-adjusting irrigation controllers.

Background: The San Francisco Public Utilities Commission (SFPUC) Water Enterprise seeks to promote water conservation through various programs. The Irrigation Controller Rebate Program (Program) would promote the efficient use of water for landscape through the use of U.S. Environmental Protection Agency WaterSense-labeled weather- or soil moisture-adjusting irrigation controllers.

Based on current funding availability (see Budget & Costs below), the SFPUC will provide a maximum rebate of up to $250 per controller for up to two controllers for customers with small landscapes under 10,000 square feet that purchase and install WaterSense controllers designated for systems with up to 24 active stations or zones. The SFPUC will provide up to $35 per active station for large landscapes over 10,000 square feet that purchase and install WaterSense controllers designated for systems with over 24 active stations or zones. Rebates for large landscapes will be calculated based on $35 multiplied by the quantity of active stations and many not exceed the cost of the WaterSense controller(s) or add-on/plug-in. Rebates are only for customers with existing, functioning irrigation systems and not for new landscapes or existing landscapes without in-ground irrigation systems. Staff estimate that large, irrigated landscapes in the SFPUC’s retail service generally have between 24 to 100 active irrigation zones with the largest having up to about 250 zones.

WaterSense labels two types of irrigation controllers that can make outdoor watering more efficient (1) weather-based irrigation controllers that use local weather and landscape conditions to tailor watering schedules and (2) soil moisture-based irrigation controllers that monitor moisture levels in the soil to prevent irrigation when water is not needed. Both types of controllers use “smart” Agreement: Public Hearing to Approve an Irrigation Controller Rebate Program and Adopt Rules and Regulations
Commission Meeting Date: August 27, 2024

technologies to match irrigation schedules to plants’ water needs.

Properties that use conventional clock-based timers to schedule irrigation may over water due to irrigation occurring when landscapes don’t need it. Using WaterSense labeled irrigation controllers can reduce water waste by:
• Automatically adjusting irrigation schedules based on local weather and site conditions;
• Automatically shutting off irrigation before or when it rains; and,
• Enabling remote access to change irrigation schedules when property owners are away.

Based on the California Department of Water Resources data and SFPUC analysis, over 92 million square feet of irrigated residential landscape and over 100 million square feet of non-residential dedicated irrigation landscape exist in the SFPUC retail service area.

The SFPUC’s Water Conservation Section has long offered free landscape assessments and other incentives to help retail customers reduce outdoor water waste. SFPUC field technicians evaluate customers’ irrigation systems to identify potential leaks and to recommend adjustments, repairs, and improvements that may reduce water use. SFPUC inspections and industry studies show that poorly scheduled irrigation is a key cause of over watering at some properties. For these sites, replacing or upgrading conventional irrigation timers with WaterSense labeled smart controllers could reduce water waste.

Through this Program, the SFPUC seeks to financially incentivize customers to eliminate over-irrigation. Participation will require applicants to get a free landscape assessment, enabling the SFPUC to provide site-specific guidance. Many water utilities in California offer rebates for installation of smart irrigation controllers and there has been extensive analysis of the water savings potential of such programs. The Pacific Institute’s 2023 evaluation of SFPUC water efficiency programs supports the SFPUC plan to establish this Program and market it to customers who may be over irrigating.

Staff will promote the Program to customers with landscapes, with a focus on sites identified through landscape assessments, top user outreach, and leak alerts for potential water waste. This Program will expand the SFPUC’s suite of existing outdoor conservation assistance incentives, which include grants for major water-saving upgrades to large landscapes, grants for community garden irrigation meters, rebates for rain barrels and cisterns, and other measures.

Description of
Action:

Staff recommends the Commission approve the Irrigation Controller Rebate Program and adopt the attached Rules and Regulations to govern its administration. The Program is intended to encourage residential and commercial properties in the SFPUC retail service area with existing irrigation systems to install EPA WaterSense labeled Agreement: Public Hearing to Approve an Irrigation Controller Rebate Program and Adopt Rules and Regulations
Commission Meeting Date: August 27, 2024

weather- or soil-moisture adjusting irrigation controllers to reduce water waste from over irrigation. Rebates can be for stand-alone controllers or add-on/plug-in devices that upgrade existing, compatible irrigation timers.

As provided under the proposed Program Rules and Regulations (attached), to qualify to receive a rebate, applicants must meet all eligibility requirements, complete an onsite landscape assessment, address leaks or repairs identified in the landscape assessment, submit a complete and accurate application, provide proof of purchase and installation. The SFPUC pays rebates on a reimbursable basis and the amount of the rebate would be limited to the actual, documented cost of the device, whichever is less.

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.gov/savewater), articles in the SFPUC’s printed and electronic newsletters to customers, social media posts, emails, and co-promotion through homeowner associations and business organizations.

Budget & Costs: The Program will be funded through the Water Conservation operating budget. The specific account within the operating budget that funds conservation rebates has an annual budget of approximately $2.2 million for the current fiscal year and the same amount is anticipated for the next year.

Schedule: If this action is approved by the Commission, the Program and associated Rules and Regulations will become effective January 1, 2025.

Environmental
Review:

This action does not constitu te a “project” un der the Califo rnia Environmental Quality Act Guidelines section 15378(a) bec ause there would be no physical change in the environment.

Attachment(s): 1. Efficient Irrigation Controller Rebate Program Rules and Regulations

PUBLIC UTILITIES COMMISSION
City and County of San Francisco

RESOLUTION NO.

WHEREAS, The San Fran cisco Public Ut ilities Commission (SFPUC) is committed to helping its customers ach ieve and maintain efficient water us e, and an Irrigation Controller Rebate Program encourages the installation of efficient irrigation equipment to increase outdoor water efficiency and reduce irrigation runoff; and

WHEREAS, The Irr igation Controller Rebate Program (Program) provides rebates to customers with existing irrigation systems that purchase and install Environmental Protect ion Agency (EPA) WaterSense labeled weather- or soil moisture-adjusting irrigation controllers for up to $250 per controller for small landscapes under 1 0,000 square feet and up to $35 per active station for large landscapes over 10,000 square feet; and

WHEREAS, An eligible irrigation c ontroller may includ e a stand -alone WaterSense labeled weather-based or soil moisture -based irrigation controller or a WaterSense labeled add- on/plug-in device that upgrades an existing, compatible irrigation timer; and

WHEREAS, The attached Rules and Reg ulations to govern the Program would establish requirements for eligibility and payment of any rebate; and

WHEREAS, This action does not const itute 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 August 27, 2024, this Commission held a hearing to consider the proposed Rules and Regul ations for the Efficient Irrigation Controller Rebate Program, for which notice was posted on August 15, 2024, in conformance with Charter Section 4.104; therefore, be it

RESOLVED, That this Commission hereby approves the Program and the amount of the rebate under the Progra m shall be up to $250 per devi ce, not to exceed two per customer with small landscapes and up to $35 per active irrigation zone for customers with large landscapes , both not to exceed the cost of the device; and be it further

RESOLVED, That this Comm ission hereby adopts th e Rules and Regulations f or the Irrigation Controller Rebate Program, effective January 1, 2025.

I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of August 27, 2024.

Director of Commission Affairs,
San Francisco Public Utilities Commission

San Francisco Public Utilities Commission
Rules and Regulations Implementing the
Irrigation Controller Rebate Program

London N. Breed, Mayor

COMMISSIONERS
Timothy Paulson, President
Anthony Rivera, Vice President
Newsha K. Ajami
Kate H. Stacy

Adopted: August 27, 2024, by Commission Resolution No. [XXXXXX] Effective: January 1 , 2025

City and County of San Francisco Public Utilities Commission Irrigation Controller Rebate i Adopted: August 27, 2024 Program Rules and Regulations Effective: January 1, 2025

THE IRRIGATION CONTROLLER REBATE PROGRAM
The purpose of the Irrigation Controller Rebate Program (Program) is to enhance San Francisco’s residential, commercial, industrial, and institutional landscapes with irrigation technology that can be programmed specific to the landscape’s watering needs, including soil type, irrigation type, and landscape age while also calculating the watering needs based on precise local weather – rain, solar radiation, wind, and humidity. Properties may achieve water savings by installing an U.S. Environmental Protection Agency (EPA) WaterSense labeled weather-based or soil moisture-based irrigation controllers. Eligible WaterSense labeled controllers may be stand-alone controllers or add-on/plug-in devices that upgrade existing, compatible irrigation timers. Qualifying WaterSense labeled controllers can be programmed and operated to reduce and avoid irrigation runoff from properties, increase water efficiency, promote healthy landscapes, and provide a more robust means of landscape management.

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 Program.

City and County of San Francisco Public Utilities Commission Irrigation Controller Rebate ii Adopted: August 27, 2024 Program Rules and Regulations Effective: January 1, 2025

TABLE OF CONTENTS

RULE 1.0 – DEFINITIONS ....................................................................................................................... 1 RULE 2.0 – GENERAL IRRIGATION CONTROLLER REBATE PROGRAM INFORMATION ............................. 3 RULE 3.0 – IRRIGATION CONTROLLER REBATE PROGRAM REQUIREMENTS ........................................... 4 RULE 4.0 -- PARTICIPATION PROCESS…………………………………………………………………………………………………..5

City and County of San Francisco Public Utilities Commission Irrigation Controller Rebate Program
Rules and Regulations Page 1

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 (:).

Active Station or Zone: Each station on an irrigation controller operates a valve that releases water through the Irrigation System to a specific area (zone) in the landscape. An active station (or zone) means it is paired with a specific valve that controls the flow of water to a specific zone. When the controller is correctly programmed and operating, it sends signals to open and close the valve, controlling the flow of water to that area of the landscape. Controllers serving large landscapes with different planting zones may have many active stations.

Add-On or Plug-in Device: An EPA WaterSense labeled plug-in device that can be connected to an existing, compatible base controller, converting it to a soil moisture-based, weather-based, or an integrated weather and soil moisture -based technology. Add -on devices can be paired with compatible base controllers to make them more efficient. Qualifying add-on and plug-in devices are listed in the EPA WaterSense product type directory which is available at:
https://www.epa.gov/watersense/watersense-labeled-controllers. • Soil Moisture-Based Irrigation Controller: These sensors monitor moisture levels in the soil to prevent irrigation when water is not needed and to better match plant watering needs.

These devices may also be referred to as “soil moisture sensors” or “SMS.” • Weather Station: An additional component that connects directly to an irrigation timer to achieve water-efficient irrigation scheduling. Weather stations gather local weather data, including solar radiation, wind, humidity, and rain, to determine when and how much water is used for irrigation purposes.
• Wi-Fi Module or Hub: An add-on component to existing irrigation controllers that allows easy access and control of an irrigation system through a free mobile app. These components access locally accurate weather data from the internet to adjust watering schedules appropriately while also allowing control of your irrigation from anywhere around the world. A Wi-Fi Module or Hub provides notification alerts for local rain events, freeze warnings, or reminders to seasonally adjust your irrigation schedule.

Applicant: Retail customer seeking Rebate funds from the SFPUC upon Proof of P urchase and installation of a qualifying Eligible Device , pursuant to the requirements of these Rules and Regulations.

Application: A complete set of required documents and information reported through the SFPUC’s water conservation online application portal.

Irrigation Controller: An EPA WaterSense labeled irrigation controller that automatically adjusts watering schedules by using local weather data and/or landscape conditions such as soil moisture content, slope, and plant type, to prevent excessive and wasteful water use.

Eligible Device(s): An Irrigation Controller or an Add-On or Plug-in Device that is added to an existing, compatible base irrigation controller. See the Add-On Device definition for details.

EPA WaterSense: A voluntary partnership program sponsored by the EPA, is both a label for water- efficient products and a resource for saving water.

Irrigation System: A mixture of components used to water a landscape automatically or by manual operation. Typically consisting of irrigation timers, valves, PVC pipes, drip tubing, and sprinklers.

City and County of San Francisco Public Utilities Commission Irrigation Controller Rebate Program
Rules and Regulations Page 2

Landscape Assessment: An onsite inspection conducted by SFPUC staff to verify the operation and functionality of an irrigation system.

Non-EPA WaterSense Certified Irrigation Timer: A standard, conventional clock-based irrigation timer that does not use evapotranspiration data, onsite weather sensor technology, or a central weather station to schedule or modify irrigation programming needs and is not labeled by EPA WaterSense as a weather-based irrigation controller or soil moisture-based irrigation controller.

Participant: An Applicant approved by the SFPUC for a Rebate under these Rules and Regulations.

Proof of Purchase : Documentation of purchase of Eligible Devic e(s) typically consisting of itemized invoices, receipts, processed checks and/or completed bank fund transfer statements.

Rebate: Funding provided based on purchase of Eligible Devices and proper installation and compliance with all Program requirements and conditions.

Retail Customer: Any residential, commercial, industrial, or institutional customer who receives a water bill directly from SFPUC for their own water use, and not for resale.

Retail Service Area: All property within the City and County of San Francisco, and those outside the City boundaries that are served directly by SFPUC on a retail basis.

Runoff: Water that drains off a land surface. Irrigation runoff consists of water that is wasted when it flows off the targeted landscape area.

W-9: A form issued by the U.S. Internal Revenue Service, officially called Request for Taxpayer Identification Number and Certification, a necessary submission by a Participant to receive a Rebate.

Zone: The area watered by an irrigation system. For purposes of water efficiency, each zone should be set up to water plants with similar water needs. The amount and duration of irrigation can differ by zone based on the plants’ needs. Large landscapes and landscapes with areas with very different types of vegetation such as turf, shrubs, trees, flower beds, etc. may have many zones.

RULE 2.0 – GENERAL IRRIGATION CONTROLLER REBATE PROGRAM INFORMATION The following information is applicable to all program sections:

City and County of San Francisco Public Utilities Commission Irrigation Controller Rebate Program
Rules and Regulations Page 3

2.1 PARTICIPATION GENERALLY
The SFPUC offers a rebate for EPA WaterSense labeled irrigation controllers and add-on devices. The Program is intended to encourage residential, commercial, industrial, and institutional properties and businesses in San Francisco to improve their outdoor irrigation efficiency and reduce runoff. The rebate amount depends on the size of the irrigated landscape. For small landscapes under 10,000 square feet, which would cover most single family and small-multi-family and small commercial properties in the SFPUC’s retail service area, the rebate is limited to no more than two eligible WaterSense labeled devices suitable for sites with up to 24 active zones. For large landscapes over 10,000 square feet, the rebate will be calculated based on the quantity of Active Stations or Zones for eligible WaterSense- labeled devices suitable for sites with more than 24 Active Stations or Zones .

2.2 APPLICANT RESPONSIBILITY
The Applicant is solely responsible for purchasing, installing, operating, and maintaining any Eligible Device for which the applicant 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 LIABILITY
The 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 and without notice, terminate or alter the Irrigation Controller Rebate Program at any time.

Funding is limited and rebates are available on a first come, first served basis until funds run out or the Program terminates.

The SFPUC makes no representation or guarantees that participation in the Program will result in lower water bills.

SFPUC shall bear no responsibility or liability for the cost, expense, operation, maintenance, or repair of a participant’s eligible irrigation controller. SFPUC shall likewise bear no responsibility or liability for delay in accepting an Application, rejection of an Application, or termination of the Program.

City and County of San Francisco Public Utilities Commission Irrigation Controller Rebate Program
Rules and Regulations Page 4

RULE 3.0 – IRRIGATION CONTROLLER REBATE PROGRAM PARTICIPATION REQUIREMENTS To receive a Rebate, an Applicant must meet the following eligibility criteria:

3.1 CUSTOMER ELIGIBILITY
To participate in the Program, the Applicant must:
 Receive a water bill directly from the SFPUC for the applicant’s own water use.  Be classified as a residential, commercial, industrial, or institutional (CII) entity.

3.2 IRRIGATION CONTROLLER REBATE PROGRAM ELIGIBILITY
To be eligible to be awarded a Rebate, the Applicant must:
 Have an outdoor landscape area that is watered by an existing, operating irrigation system.  Complete a Landscape Assessment and address any repairs and leaks associated with their irrigation system before receiving a rebate.
 Propose to obtain an Eligible Device.
 Install the Eligible Device correctly and confirm it is functioning and programmed appropriately.  Meet all applicable local, state, and federal laws, regulations, and ordinances.  The following are not eligible for an irrigation controller rebate: replacement of an existing Eligible Device, new irrigation systems, irrigation systems that are pre-determined to be poorly maintained during the mandatory Landscape Assessment, have leaks, and/or require extensive repair, and landscape retrofit projects awarded grant funding through the Large Landscape Grant Program.

3.3 REBATE ELIGIBILITY, AMOUNT, AND PAYMENT
(A) Rebate Eligibility
 The applicant must allow an onsite Landscape Assessment by SFPUC staff to verify an Irrigation System exists and is functioning before Rebate approval.  To receive a Rebate, an applicant must submit a Proof of Purchase with itemized qualifying irrigation controller costs. Receipts and/or invoices that do not include the itemized cost of qualifying equipment will be rejected.
 The applicant must submit a completed W-9 form to the City Controller by either emailing the form to [email protected] or mailing a hard copy to Supplier Management, 1 Dr. Carlton B Goodlett Place, Room 300, San Francisco, CA 94102. (B) Rebate Amount and Payment
 The Rebate amount shall not exceed 100% of the Eligible Device cost (not including sales tax, shipping, and/or installation costs). The rebate amount will be determined based on the size of the irrigated landscape, including how many Active Stations or Zones it has. The rebate amounts will be determined as follows:

City and County of San Francisco Public Utilities Commission Irrigation Controller Rebate Program
Rules and Regulations Page 5

o Small Landscapes– Maximum Rebate cap of $250 per controller, up to two (2) devices per property with an existing, operating irrigation system with under 24 Active Zones and serving under 10,000 square feet of landscape. The rebate allows for up to two (2) eligible devices per property with a rebate amount not to exceed $250 per Eligible Device(s) or the cost of the Eligible Device(s) , whichever is less.  Large Landscapes– Maximum Rebate cap of $35 per each Active Station or Zone per property with an existing, operating irrigation system with over 24 Active Stations or Zones and serving over 10,000 square feet of landscape. There is no limit to the number of Active Station or Zone Zones eligible for Rebate, if all the Active Stations or Zones are connected and operating. However, the Rebate shall not exceed the cost of the Eligible Device(s).  The SFPUC anticipates issuing a rebate check within 8 weeks of final approval of an Eligible Device.

RULE 4.0 – PARTICIPATION PROCESS
Applicants must follow these steps to apply:
 Read the application directions and program rules posted on the SFPUC’s web page for this program, (Irrigation Controller Rebate (sfpuc.gov)), before starting an online application.  Register the customer’s 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

 Submit a complete online application, including information on the make and model of the current irrigation controller to be replaced or modified with an Add-On or Plug-In Device and the operating condition of the Irrigation System.
• Completion of the Landscape Assessment to address Irrigation System components needing repair, replacement, or adjustments by SFPUC water conservation staff and will be completed prior to purchase and installation of an Eligible Device. During the landscape assessment, SFPUC staff will verify the site’s existing Irrigation System is functioning properly and identify necessary repairs needed to be eligible for a Rebate . Upon successful completion of the Landscape Assessment, SFPUC staff will contact the site and confirm Program eligibility.

• A Rebate is granted on a case-by-case basis and subject to availability of funds.

• Once a Rebate is grant, the Applicant shall purchase and install the Eligible Device(s) within 4 weeks of from the data the Rebate is granted.

• Upon successful installation of the Eligible Device(s), the Applicant will contact SFPUC and provide Proof of Purchase for the Eligible Device(s), photo proof of installation, and will send a completed W-9 to the City Controller.

• Upon receipt of all required documentation and photo proof, the SFPUC will determine the final rebate amount and issue the rebate.

NOTICE OF PUBLIC HEARING

NOTICE OF PUBLIC HEARING on Tuesday, August 27, 2024 – 1:30 PM City Hall, Room 400, 1 Dr. Carlton B. Goodlett Place, San Francisco, CA 94102, at the Regular Meeting of the SAN FRANCISCO PUBLIC UTILITIES COMMISSION (SFPUC):

The Commission will hold a hearing and take possible action to approve a SFPUC- administered Irrigation Controller Rebate Pr ogram (the Program). The Program is intended to encourage residential, commercial, institutional, and industrial properties in the SFPUC’s retail service area with ex isting irrigation systems to install EPA WaterSense labeled weather- or soil-moisture adjusting irrigation controllers to reduce water waste from over irrigation. Rebates can be for stand-alone controllers or add- on/plug-in devices that upgrade existing, compatible irrigation timers. SFPUC will provide a maximum rebate of up to $250 for small landscape customers and $35 per active station for large landscapes over 10,000 square feet. The Water Conservation Section will administer the rebate progra m in coordination and in compliance with SFPUC accounting and City of San Francisco Controller’s Office guidelines. The rebate program will be funded from the SFPUC Water Conservation Section’s operating budget.

The detailed agenda and related files will be available at least 72 hours before the scheduled meeting at the SFPUC website ( www.sfpuc.org) or by calling (415) 554- 3165.

(Posted August 15, 2024)

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