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W A T E R I E N E R 5 Y L I 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 7, 2010 ITEM NO: 10 SUBJECT: THE NEW CONSTRUCTION ENERGY EFFICIENCY INCENTIVE PROGRAM REBATE FOR ENERGY EFFICIENT MEASURES INSTALLED ISSUE: Consideration to award Alvord Unified School District (AUSD) a rebate that exceeds the rebate cap. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve a rebate to Alvord Unified School District (AUSD) through the New Construction Energy Efficiency Incentive Program in the amount of$300,000; and 2. Approve payments to be made over a two-year period. BACKGROUND: Alvord Unified School District recently completed upgrades for modernization and energy efficiency improvements at 16 separate school sites. The project cost $102 million for rehabilitation to the building shell, and for major upgrades to HVAC, lighting, and windows resulting in vast improvements in energy efficiency and electric use. AUSD has applied for a rebate through Riverside Public Utilities' (RPU) New Construction Energy Efficiency Incentive Program, which under program guidelines also covers major retrofits for existing buildings. The 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. Both RPU and its customers save valuable resources when meeting and exceeding these standards. By employing a combination of energy efficient building design and equipment, like efficient air conditioning, chiller systems, dual paned windows, efficient T-8 lighting, and programmable temperature controls, AUSD is expected to save in excess of 7.5 million kilowatt hours of electricity annually. Because of the project size and the significant amount of energy upgrades made, the rebate amount is $300,000 and requires City Council approval. Public Utilities' staff is recommending the payment be made over a two-year period; $150,000 in FY 2009-10 and $150,000 in FY 2010-11. FISCAL IMPACT: Funds up to $150,000 are available in the FY 2009-10 Public Benefits, New Construction Energy Efficiency Incentive Program Account No. 6020100-456033. Funds up to $150,000 are included in the proposed Fiscal Year 2010-11 Public Benefits, New Construction Energy Efficiency Incentive Program Account No. 6020100-456033.