Agenda - Environmental Policy Board - 01/13/2020

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Environmental Policy Board (EPB) 5. 2. Meeting Date: 01/13/2020 By: Chris Anderson, Community Development Information Title: Overview of Framework for Water Efficiency Grant Program Purpose/Background: The City of Ramsey has been awarded $28,000 in grant funds through the Metropolitan Council's 2019-2022 Water Efficiency Grant Program (the "Program") for use in a rebate program. As the name of the Program implies, the purpose of the grant is to implement water efficient technologies to reduce the demand on water supply. There are two (2) primary financial requirements of the Program. First, the municipality must contribute twenty-five percent (25%) of the grant award, which equates to $9,340, Second, that rebate recipients must also have a financial contribution (e.g. the grant funds and the City contribution cannot entirely cover the cost of the purchase). Other important eligibility requirements include the rebate recipient being a municipal water customer (this means that anyone on a private well is not eligible), only applicable to replacement devices (meaning that new construction is not eligible), and the rebate is only applicable for the cost of the device and its installation, excluding any owner labor costs. Observations/Alternatives: While the funds are provided through the Metropolitan Council via the Clean Water, Land and Legacy Amendment, grant recipients are responsible for developing their own program. Staff from the Engineering, Utilities, Community Development and Administration Departments met to discuss the framework for a rebate program. While it was clear that more efficient irrigation controllers would likely provide the biggest water savings, it was acknowledged that that alone would exclude a number of otherwise eligible property owners (all properties that do not have in -ground irrigation systems). Thus, it was agreed to also consider WaterSense labeled toilets as another option for rebates. During the summer months, the greatest demand for water comes from irrigation. Therefore, replacement of older, clock -timer irrigation controllers with a WaterSense labeled smart controller is one of the eligible rebate options. Additionally, an irrigation audit, which helps ensure an irrigation system is operating efficiently and accurately, conducted by a WaterSense certified irrigation professional, is another eligible rebate option. If residents take full advantage of this part of the Program, it could result in an estimated savings of approximately 1.3 million gallons of water (based on numbers provided by the Metropolitan Council from the 2015-2017 Water Efficiency Grant Program). As previously noted, Staff wanted to ensure that any municipal water customer (excluding new construction/new development) had an opportunity to realize both water savings and financial savings. Thus, another option available for those customers is a rebate for the replacement of older toilets with a WaterSense labeled toilet. If residents take full advantage of this part of the Program, it could result in an estimated savings of 1 million gallons of water (again, based on numbers provided by the Metropolitan Council from the 2015-2017 Water Efficiency Grant Program). The rebates would be available on a first come first served basis, as long as funds last (or until the close of the program, which is June 30, 2022). Rebates for an individual device can be up to $200, and cumulatively, shall not exceed $500 per metered water supply customer. The water supply customer shall be responsible for the sales tax on the device, thus satisfying the requirement that they have a financial investment in the upgrade.