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W A T E R E n E R G Y 1 { F E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: May 6, 20'11 ITEM NO: 8 SUBJECT: THE NEW CONSTRUCTION ENERGY EFFICIENCY INCENTIVE PROGRAM REBATE FOR THE U.S. REAL ESTATE LIMITED PARTNERS ISSUE. That the Board of Public Utilities consider approval of a $150,000 rebate for the energy-efficiency improvements made at U.S. Real Estate Limited Partners, a Riverside Public Utilities' (RP U) non-residential customer. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council approve a rebate to U.S. Real Estate Limited Partners through the New Construction Energy Efficiency Incentive Program in the amount of $150,000. BACKGROUND: U.S. Real Estate Limited Partners recently completed construction of a 504,000 square foot cold storage facility located at 1001 Columbia Avenue.This state of the art cold storage facility was designed and built with maximum energy efficiency in mind to reduce the long term operating costs inherent in such a power intensive facility. The tenant, Castle & Cooke will operate this facility for processing, packaging, and distribution of perishable fruits and vegetables and will employ approximately 400 people. Working with Riverside Public Utilities, U.S. Real Estate Limited Partners participated in the New Construction Energy Efficiency Incentive Program. This Program encourages commercial building designers, owners, developers, and tenants to exceed Title 24 California State Energy Efficiency Standards. By incorporating sophisticated energy savings design into the building,the developer will exceed Title 24 standards resulting in significant reductions in energy consumption. Through these improvements, U.S. Real Estate Limited Partners installed high efficiency refrigeration and air conditioning systems, state of the art variable speed motors for their chillers, fans and compressors, high speed doors to reduce temperature loss in their refrigeration areas, upgraded insulation throughout the facility, low loss dock doors, high efficiency windows in office space, high efficiency lighting with energy controls, high efficiency off peak forklift battery chargers,and a demand defrostsystem to reduce defrost time and energy in refrigeration. By employing a combination of energy efficient building design and installation of efficient equipment, U.S. Real Estate Limited Partners is expected to save in excess of 4.3 million kilowatt hours of electricity annually compared to the base Title 24 building requirements. In addition,the customer estimated that they will save nearly $500,000 in utility costs annually. City Council approval is required for rebates or incentives that exceed $50,000. At $0.05/ kWh of annual savings, these measures qualify U.S. Real Estate Limited Partners for the maximum rebate of$150,000.