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December 16, 2025
ITEM TITLE
Incentive Program: Approve a Letter of Authorization to Participate in the SD EnergyLink Incentive Program and Accept $352,000 in Assets and Labor
Report Number: 25-0289
Location: City Hall (276 Fourth Avenue), Fire Station 4 (850 Paseo Ranchero), Fire Station 6 (605 Mount Miguel Road), Fire Station 7 (1640 Santa Venetia Street #18421), Fire Station 8 (1181 Woods Drive), Fire Station 9 (1410 Brandywine Avenue), and Police Department (315 4th Avenue) Department: Public Works
G.C. § 84308 Regulations Apply: No
Environmental Notice : The Project qualifies for a Categorical Exemption pursuant to California Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities).
Recommended Action
Adopt a resolution to A) Authorize City Manager to execute Letter of Authorization to participate in SD EnergyLink Equipment Incentive Program and B) Accept $352,000 in assets and labor.
SUMMARY
SD EnergyLink , a Public Purpose Program (PPP) of the California Public Utilities Commission (CPUC), provides customers on federal properties, local government facilities and Native American lands opportunities to save money on utility bills by of fering resources and incentives that support the adoption of energy-efficient technology, equipment and systems. Seven City of Chula Vista municipal locations have been identified as prime candidates for participation in the program and incentive funds can cover the full cost of equipment and installation for 32 energy efficient, tankless water heaters, a value of $352,000. This will result in ongoing energy bill savings and reductions in greenhouse gas (GHG) emissions.
ENVIRONMENTAL REVIEW
The proposed project has been reviewed for compliance with the California Environmental Quality Act (CEQA) and has been determined that the project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facil ities), because the proposed project would not result in a significant effect on the environment, create a cumulative impact, damage a scenic highway, or cause a P a g e | 2
substantial adverse change in the significance of a historical resource. Thus, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
In an effort to save money on utility bills and reduce GHG emissions, the City of Chula Vista has a history of participating in energy efficiency programs for municipal facilities. Funding for these projects was provided from the California Public Utility Commission (CPUC) Public Purpose Program (PPP) and implemented locally by San Diego Gas and Electric (SDG&E) and is a ratepayer funded rebate/incentive program. The city previously participated in SDG&E’s energy efficiency programs between 2007 and 2020 and received over $203,000 incentives for eligible upgrades, mainly for lighting but also gas boiler, chiller and HVAC projects.
In 2020, the method by which the PPP programs were executed changed and the CPUC required utilities, including SDG&E, to award contacts with external implementers to facilitate the energy efficiency programs.
TRC now operates the program for t he public sector under a contract with SDG&E. In the first quarter of 2025, City staff were notified of a new energy efficiency incentive program called SD EnergyLink, which provides customers on federal properties, local government facilities and Native American lands opportunities to save money on utility bills by offering resources and incentives that support the adoption of energy-efficient technology, equipment and systems.
TRC met with staff over the spring and summer to discuss the new program, po tential equipment opportunities and identify which municipal sites might be a good fit . TRC performed site visits to check eligibility and determine feasibility . After thorough review by an internal team, including Public Works Facilities and Sustainabil ity staff, and considering a variety of factors including existing equipment, space and configuration requirements for potential new models, ability of existing staff to maintain new units, utility bill savings and GHG emissions reductions, a final list of locations was finalized in the fall.
Seven (7) City facilities have been identified as prime candidates for participation in the program, and incentive funds will cover the full cost of equipment and installation for 32 energy -efficient, tankless water heaters, with a total project value of $352,000 ($96,000 in equipment and $256,000 in installation). SD EnergyLink incentive funds will cover the entire cost of the project, including installation by prevailing-wage contractors, and all incentives are paid directly from TRC to the authorized contractors. TRC will work with the authorized contractor, Winsupply, on incentive administration, including paperwork, coordination with SDG&E and payment distribution. No funds will be paid or received by the City.
Upon completion of installation and acceptance by the City, all equipment and improvements will become City-owned assets.
The upgrades are expected to result in approximately $7,503 in annual energy cost savings and a reduction of 26.5 MTCO2e in GHG emissions. More detail can be found in Table 1, below.
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Table 1. Details on locations and equipment (value, energy savings, GHG reductions, models).
Site Address # of
Units
Total
Equipment
and
Installation
Value ($)
Projected
Energy
Savings per
Year ($) *
GHG
Reduced
per Year
(MTCO2e)
Proposed
Replacement
City Hall
Bldg. C
276 Fourth
Ave.
5 $55,000 $1,497 5.3 Navien NPE-240S2
Fire Station
4 850 Paseo
Ranchero
91910
6 $66,000 $753 2.7 Navien NPE-240S2
Fire Station
6 605 Mount
Miguel Rd.
4 $44,000 $530 1.9 Navien NPE-240S2
Fire Station
7 1640 Santa
Venetia St.
#18421
6 $66,000 $675 2.4 Navien NPE-240S2
Fire Station
8 1181 Woods
Dr.
3 $33,000 $521 1.8 Navien NPE-240S2
Fire Station
9 1410
Brandywine
Ave.
3 $33,000 $521 1.8 Navien NPE-240S2
Police
Department
315 Fourth
Ave.
5 $55,000 $3,006 10.6 Navien NPE-240S2
Totals 32 $352,000 $7,503 26.5
MTCO2e
*est. $1.50/therm
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real p roperty-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware, and has not been inform ed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
SD EnergyLink incentive funds will cover the entire cost of the project, including installatio n by prevailing wage contractors, with total equipment valued at $96,000 and a total installation value of $256,000. As this equipment will be installed roughly halfway through the fiscal year, the City should realize an energy utility bill savings of approximately $3,750 for the remainder of the fiscal year. Details can be found in Table 1 , above.
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ONGOING FISCAL IMPACT
As these water heaters are more energy efficient than the existing models, installation of these energy efficiency devices at municipal locations are projected to save an estimated $7,503 energy bills annually (see Table 1). There is no ongoing fiscal impact to the General Fund as a result of this action.
The water heaters will continue to be maintained by the City, and no si gnificant change in ongoing maintenance costs is anticipated as a result of this upgrade.
ATTACHMENTS
1. Letter of Authorization
Staff Contact: Coleen Wisniewski, Environmental Sustainability Manager Angelica Aguilar, Interim Director of Public Works