Update on Water Efficiency Grant Program

As the Environmental Policy Board (EPB) knows, the City was awarded $28,000 from the Metropolitan Council to implement a water efficiency grant program between January of 2020 and June 30, 2022.  The City rolled out the grant program in May of 2020.  To date, thirty-nine (39) households have participated in the program, with the majority of the upgrades focusing on smart irrigation controllers.  There is still approximately $21,000 available for reimbursement through June of 2022.  A summary of the program costs and reimbursements is attached. 

As was expected over the winter, applications for rebates have slowed down.  However, Staff will continue to periodically promote the program through the City's social media accounts and will ramp up promotion in the newsletter in the March/April and May/June editions.

Staff has received an inquiry from a Homeowner's Association (HOA) that is interested in upgrading their irrigation system throughout it's entire neighborhood.  According to the HOA, there are multiple, outdated, inefficient controllers providing irrigation for around 115 homes.  Obviously, a project of this nature would have a much greater impact in terms of water savings than on a typical residential lot.  However, as the rebate program is structured, it would still only be eligible for a maximum rebate of $500.

Staff has contacted the Metropolitan Council, which is the source of the grant funds, to determine whether the City could, if it so desired, make modifications to the rebate program.  Since this project is in line with the overall intent of the grant program (reducing water consumption), the City can make program adjustments/modifications if so desired.

Staff is seeking feedback from the EPB on the potential of creating an alternate rebate amount for commercial/multi-family controllers.  Not only are these typically more expensive controllers than the standard residential units (some can be upwards of $2,500 per controller), but these systems tend to utilize more water as well, due to larger areas being irrigated and oftentimes, larger infrastructure (e.g. moves more water).  Thus, Staff is supportive of creating a separate rebate category for commercial/multi-family controllers with a greater rebate amount per controller and per project to better incentivize owners of these systems to upgrade to more water efficient technology.  Rather than focusing on specific dollar amounts, Staff is seeking direction from the EPB on whether they're supportive of creating a separate rebate category for these types of controllers.  

Per the grant agreement, the City had to contribute 25%, which is being provided through the City's Water Fund account.  The remainder is being reimbursed by the Metropolitan Council.

Motion to recommend modifying the water efficiency rebate program to include a separate rebate for commercial/multi-family irrigation controller upgrades.