3/12/2025
1 RiversideCA.gov1
RiversideCA.gov
HEAT PUMP REBATE PROGRAMCity CouncilMarch 25, 2025Riverside Public Utilities RiversideCA.gov2
1. Assembly Bill (AB) 1890 (Brulte, 1996) requires that 2.85% of electric revenue be utilized to fund public benefits programming and limits its use to at least one of four specified uses: demand side energy reduction, new renewables procurement for customers, low-income assistance, and research and demonstration projects2. Senate Bill (SB) 1037 (Kehoe, 2005) sets ambitious energy conservation policies and goals requiring publicly owned utilities (POU' s) to report annually kilowatt hour (kWh) savings3. SB 350 (De Leon, 2015) establishes annual targets for statewide energy efficiency savings and demand reduction that will achieve a cumulative doubling of statewide energy efficiency savings in electricity and natural gas by January 1, 2030LEGISLATIVE HISTORY1 2 3/12/2025
2 RiversideCA.gov3
1. December 7,1999: City Council approved the Air Conditioning / Heat Pump Rebate Program2. July 1, 2010: The combined Air Conditioning/ Heat Pump Rebate Program guidelines were revised and changed to a flat rebate3. June 25, 2024: City Council approved separate A/C and Heat Pump rebates with the heat pump program rebate set at $750/ton with an annual budget of $375,000BACKGROUND – AC/HEAT PUMP REBATES RiversideCA.gov4
1. New heat pump program has steady customer participation 2. More customers are choosing the heat pump program compared to the A/C program3. Heat pump program has double the uptake of the standard air conditioning programDISCUSSIONGas/Electric A/CHeat PumpMonth 20242322August717September1421October735November1429December65124TotalsRebates Issued by Program3 4 3/12/2025
3 RiversideCA.gov5
PROGRAM STATUS1. The Heat Pump Program has exhausted all funds for the current fiscal year (24/25)2. Future participation projected to remain steady3. Staff proposed to increase annual program fund to $2,000,000 to meet increased demand RiversideCA.gov6
1. Heat pump program is more cost effective than the air conditioning program (same SEER)PROGRAM COST EFFECTIVENESSGas/Electric A/CHeat Pump $750/ton$1.04/kWh$0.96/kWhFirst year kWh savings cost $0.069/kWh$0.064/kWhLifetime kWh savings cost5 6 3/12/2025
4 RiversideCA.gov7
STRATEGIC PLAN ALIGNMENTStrategic Priority 4 – Environmental StewardshipProgram deliverables will focus on helping customers maximize energy efficiency practices and support the Priority goals of championing proactive and equitable climate solutions based in science to ensure clean air, safe water, a vibrant natural world and a resilient green new economy for current and future generationsCommunity Trust Equity
Fiscal Responsibility
Innovation
Sustainability & Resiliency
Cross-Cutting Threads
RiversideCA.gov8
That the City Council approve:1. Increasing the heat pump program annual budget from $375,000 to $2,000,000; and,2. Maintaining the current rebate amount of $750/ton for future years.RECOMMENDATIONS7 8