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HomeMy WebLinkAbout08 CITY FINANCING INITIATIVE-ENERGY EFFICIENCY INCENTIVE PROGRAM (EEIP)-- AGENDA REPORT Agenda Item 8 Reviewed: City Manager Finance Director N/A MEETING DATE: JULY 19, 2011 TO: WILLIAM A. HUSTON, INTERIM CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: CITY FINANCING INITIATIVE -ENERGY EFFICIENCY INCENTIVE PROGRAM (EEIP) PERMIT FEE REBATE SUMMARY: The City Council unanimously approved a resolution to implement an Energy Efficiency Incentive Program (EEIP). The program was implemented in June 2010, where property owners have the opportunity to receive a rebate on permit fees while completing improvements to their properties to make energy use more efficient or to conserve energy. Improvements include: window and door replacement, solar improvement installation, and tankless water heater installation, to name a few. Since the program started in June 2010, two (2) businesses, and six (6) residents, have completed the installation and received rebates for the total amount of $15,853.96. Many more, including Tustin Columbus Gymnasium's photovoltaic system, are eligible projects for the permit fee rebate. RECOMMENDATION: That the City Council receive and file the report. FISCAL IMPACT: There are no fiscal impacts to the General Fund associated with this action since the program uses federal grant money to cover the cost of rebate fees. Further, the grant includes allowance for the development of public outreach programs and staff education programs associated with the qualified projects. BACKGROUND The American Recovery and Reinvestment Act of 2009 includes provisions for formula- based (non-competitive) Energy Efficiency and Conservation Block Grants (EECBG) to be issued to local jurisdictions. A permit fee rebate program is an eligible activity under the EECBG. The Community Development Department in conjunction with the Public City Council Report July 19, 2011 City Financing Initiative -Energy Efficiency Incentive Program (EEIP) Permit Fee Rebate Page 2 of 3 Works Department applied for the grant and received $80,000 to be dispersed for EEIP within the three (3) years. Use of this fund offsets program costs and is in accordance with the approved program and reporting guidelines. The Building Division of the Community Development Department is the administrator of the grant. The EEIP will terminate as the allocated grant money is exhausted. DISCUSSION: The Community Development Department rebates all permit fees on building, plumbing, mechanical and electrical permits for resource-saving property improvements. The Community Development Department is offering a rebate of the permit fees for qualified projects from June 2010 until June 2012, or when the available fund is exhausted. Qualifying improvements address energy conservation and improved efficiency. The types of projects that qualify for fee a rebate as energy efficient improvements are as follows: Cogeneration Fuel Cells Cool Roofs - Exceeding what is required by California Energy Code (CEC) Geothermal Heat Pumps Windows and doors exceeding CEC efficiency standards HVAC Systems exceeding CEC efficiency standards Insulation exceeding minimum required by CEC Insulation in attics of existing buildings Photovoltaic Systems (solar improvement installation) Renewable Energy Systems Electric Vehicle Charging Stations Skylights approved by California Energy Commission Tankless Domestic Water Heaters Other Energy Efficiency Installations/Innovations To date the following projects have been reimbursed: • Ricoh - $4,986.70 • Costco in the District - $8,552.25 • Residential (6) - $2,315.01 • T.H.E. Cat Hospital (under construction) - $3,000.00 (est.) City Council Report July 19, 2011 City Financing Initiative -Energy Efficiency Incentive Program (EEIP) Permit Fee Rebate Page 3 of 3 • Columbus Tustin Gymnasium (under construction) - $5,700.00 (est.) • Residential (11 under construction) - $6,600.00 (est.) Y Henry Huang wilding Official Elizabeth A. Binsack Community Development Director