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LCRA Water Conservation Incentives Program May 2012 www.lcra.org

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Page 1: LCRA Water Conservation Incentives Program · LCRA Water Conservation Incentives Program May 2012 ... Firm water customers’ role includes marketing, qualifying end-users, issuing

LCRA Water ConservationIncentives Program May 2012

www.lcra.org

Page 2: LCRA Water Conservation Incentives Program · LCRA Water Conservation Incentives Program May 2012 ... Firm water customers’ role includes marketing, qualifying end-users, issuing

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1.0 INTRODUCTION ............................................................................................................................... 3

1.1 BACKGROUND .............................................................................................................................. 3

1.2 INCENTIVES PROGRAM OVERVIEW ................................................................................................ 5

1.2.1 RESIDENTIAL INDOOR CONSERVATION .......................................................................................... 5

1.2.2 RESIDENTIAL IRRIGATION TECHNOLOGY REBATE ........................................................................... 5

1.2.3 COMMERCIAL, INSTITUTIONAL AND INDUSTRIAL (CII) REBATE ......................................................... 5

1.2.4 FIRM WATER CONSERVATION COST-SHARE PROGRAM .................................................................. 5

2.0 RESIDENTIAL INDOOR CONSERVATION ..................................................................................... 6

2.1 HIGH-EFFICIENCY TOILET DISTRIBUTION ....................................................................................... 6

2.1.1 BACKGROUND .............................................................................................................................. 6

2.1.2 OVERVIEW ................................................................................................................................... 6

2.2 HIGH-EFFICIENCY SHOWERHEAD DISTRIBUTION ............................................................................ 7

2.2.1 BACKGROUND .............................................................................................................................. 7

2.2.2 OVERVIEW ................................................................................................................................... 7

2.3 BENCHMARKING RESEARCH ......................................................................................................... 8

3.0 RESIDENTIAL IRRIGATION TECHNOLOGY REBATES ............................................................... 9

3.1 BACKGROUND .............................................................................................................................. 9

3.2 OVERVIEW ................................................................................................................................... 9

3.3 BENCHMARKING RESEARCH ....................................................................................................... 10

4.0 COMMERCIAL, INSTITUTIONAL AND INDUSTRIAL (CII) REBATES ........................................ 12

4.1 BACKGROUND ............................................................................................................................ 12

4.2 OVERVIEW ................................................................................................................................. 12

4.3 BENCHMARKING RESEARCH ....................................................................................................... 13

5.0 FIRM WATER CONSERVATION COST-SHARE .......................................................................... 14

5.1 BACKGROUND ............................................................................................................................ 14

5.2 OVERVIEW ................................................................................................................................. 14

5.3 BENCHMARKING RESEARCH ....................................................................................................... 15

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1.0 Introduction

1.1 Background

LCRA’s firm raw water customers, other stakeholders and the public have identified conservation as a strategy for LCRA to meet its future water supply needs. The LCRA 2008 Water Conservation Task Force and subsequent approval of LCRA’s 2009 Water Conservation Plan by the LCRA Board of Directors have directed LCRA to implement water efficiency measures in partnership with its firm water customers. A key goal of the 2009 Firm Water Conservation Plan is to save approximately 3,000 acre-feet annually by the end of fiscal year 2014. The criteria used to select and prioritize conservation measures included in the plan were cost effectiveness; maturity of technology; certainty and magnitude of water savings; service area match; end-user and public acceptability; and customer ability to implement. Nearly one-third of the estimated savings included in the plan is expected to come from the implementation of a number of conservation incentives. Current conservation incentive measures are found in Table 1. The cost per acre-foot saved varies by measure and is based on both the LCRA cost for the incentive and the life cycle of the measure, or the period of time that a measure continues to save water. Other conservation programs in Texas and around the country were considered in determining if a measure was cost effective. The overall program cost per acre-foot saved for programs reviewed varied from $378 to $633, and San Antonio Water System specifies an annualized cost of no more than $400 per acre-foot. The annualized costs per acre-foot for the LCRA measures, ranging from $96 to $360, are similar to other conservation programs and compare favorably to the other water supply options identified in the LCRA Water Supply Resource Plan. LCRA began offering residential indoor conservation incentives with its high-efficiency toilet distribution initiative in the spring of 2010 and expanded to include distribution of high-efficiency showerheads in 2011. In 2011 LCRA began training customers on how to conduct irrigation evaluations and conducting commercial and public facility audits. Incentives for 2012 include residential irrigation technology incentives, commercial, institutional and industrial (CII) incentives, and a water conservation cost-share initiative for firm water customers. Because of the large amount of funds dedicated to the incentives program and the importance of water conservation as a long-term water supply strategy, the LCRA Board established a Water Conservation Incentives Program Review Committee in June 2011 to provide direction on the Incentives Program.

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Table 1: LCRA Firm Water Conservation Incentive Measures

Savings and Costs

Conservation Measure

Estimated Water

Saved per Year

(Gallons)

Incentive

Per Unit1

Projected Upfront

Cost per Acre-

foot

Life Cycle of Measure (Years)

Annualized Cost per

Acre-foot3

Residential Indoor

High-efficiency toilet distribution (2 per home)

12,850 per household

Up to $100 each on average

$5,072 25 $360

High-efficiency showerhead distribution (2 per home)

5,100 per household

Up to $5 each

$696 10 $90

Residential Outdoor

Irrigation technology rebate (pressure-reducing spray heads, soil moisture sensors, rain sensors)

32,585 per household

Up to $350 per system or 50% of the total cost, whichever is less

$2,514 10 $326

Commercial, Institutional and Industrial (CII)

High-efficiency toilet distribution or rebate

19,000 per unit

Up to $100 each

$1,671 25 $119

High-efficiency urinal rebate

19,000 per unit

Up to $100 each

$1,671 25 $119

High-efficiency spray rinse valve distribution

50,000 per unit

Up to $65 each $424 5 $98

Other CII equipment and processes rebate (cooling tower recycling, rainwater harvesting, commercial ice machines)

Will vary by equipment or process

Up to $900 per acre-foot of water saved per year2, or 50% of the cost, whichever is less

$900 10 $116

Firm Water Conservation Cost-share

(such as leak detection and repair)

Will vary by project

Up to $1,160 per acre-foot of savings per year2, and no more than 50% of the project cost

$1,160 10 $150

1Amounts approved by the LCRA Water Conservation Incentives Program Review Committee 2Assumes a lifetime of 10 years 3Based on a discount rate of 5 percent per year. From “Strategies for Implementing Firm Water Conservation,” CH2M Hill and BBC Research and Consulting, May 2009.

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1.2 Incentives Program Overview

1.2.1 Residential Indoor Conservation

The Water Conservation Incentives Program Review Committee (subsequently referred to as the Review Committee) approves individual funding amounts for each measure and advises on program measures.

Incentives include high-efficiency toilets and showerheads.

LCRA funding is limited to a set amount for equipment, with the end-user responsible for installation and any other costs.

LCRA’s role includes providing technical assistance to firm water customers with program setup, vendor contract management, incentive payment and program evaluation.

Firm water customers’ role includes marketing, qualifying end-users, issuing vouchers and/or verifying end-users for payment, follow-up inspections (if required), and providing water-use data to LCRA on program participants (if needed).

1.2.2 Residential Irrigation Technology Rebates

The Review Committee approves individual funding amounts for each measure and advises on program measures.

Incentives include irrigation system equipment, such as rain sensors, soil moisture sensors and pressure-reducing sprinkler heads.

LCRA funding is limited to a set amount for equipment, with the end-user responsible for installation and any other associated costs.

LCRA’s role includes providing technical assistance to firm water customer with program setup, incentive payment and program evaluation.

Firm water customer’s role includes marketing, qualifying end-users through irrigation evaluations, verifying end-users for payment, follow-up inspections, and providing water-use data to LCRA on program participants (if needed).

1.2.3 Commercial, Institutional and Industrial (CII) Rebates

The Review Committee advises on program measures and approves individual funding amounts. Committee approval is required for any rebate over $25,000 before the funds are released.

Incentives include indoor and outdoor equipment, as listed in the Residential Indoor Conservation and Residential Irrigation Technology Rebates sections. Additional incentives include efficient conservation equipment and/or modifications to processes that result in water savings, such as toilet fixtures, commercial ice machines, spray rinse valves and recycling water used in cooling towers.

LCRA funding is limited to a set amount for equipment or process.The end-user would be responsible for installation and any other associated costs.

LCRA’s role includes auditing and providing recommendations for water savings opportunities, qualifying and inspecting end-users, incentive payments and program evaluation.

Firm water customers’ role includes marketing, qualifying end-users, and providing end-user water use information to LCRA.

1.2.4 Firm Water Conservation Cost-share Program

The Review Committee is responsible for approving the program guidelines and procedures, including setting the evaluation criteria for awarding funds and the amount of funding per

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project. LCRA staff reviews and recommends any proposals, with the Review Committee providing final approval of any funded projects.

Examples of possible projects include efforts to decrease utility system water loss, such as meter replacement, pressure reduction, and leak detection and repair, as well as demand-side conservation programs with real water savings, such as “smart” irrigation controllers or soil moisture sensors.

Funding will be in the form of a cost-share for the total project.

LCRA’s role is to review proposals and recommend customer projects.

Firm water customers’ role is to develop and implement the project, verify water savings, and submit a project completion report.

2.0 Residential Indoor Conservation

2.1 High-Efficiency Toilet Distribution

2.1.1 Background

Toilets represent the largest residential indoor water use in the LCRA service area and a significant opportunity for municipal water savings. As the main source of water use inside most homes, toilets account for nearly 30 percent of residential indoor water consumption and can represent a major source of wasted water due to leaks and product inefficiencies. Toilet replacement incentives received a high ranking from LCRA’s conservation task force in 2008 because of the measure’s cost-effectiveness and certainty of water savings. LCRA’s High-Efficiency Toilet (HET) Distribution incentive was created to increase indoor water use efficiency through the replacement of older toilets with U.S. Environmental Protection Agency (EPA) WaterSense® labeled HETs. WaterSense models go beyond the current federal standard of 1.6 gallons per flush (gpf) by flushing 1.28 gpf or less, a savings of roughly 20 percent, while adhering to higher standards for flushing performance. The WaterSense label is used only on toilets certified by independent laboratory testing to meet rigorous criteria for both performance and efficiency. The 1.28 gpf used by WaterSense HETs is about 63 percent less than the average volume per flush used by toilets from the early 1990s.

2.1.2 Overview

Financial incentive programs typically include rebates or vouchers to motivate people to replace water-wasting fixtures or to purchase products with higher water efficiency levels. Water conservation programs across the country have implemented a variety of strategies including:

direct installation of toilets;

rebates or bill credits after purchase;

vouchers in exchange for free toilets;

retrofit on resale requirements;

point-of-sale discounts; and

bulk distributions. LCRA is currently using vouchers through a contracted plumbing supplier. Some of the benefits of using vouchers include:

removal of most upfront costs for program participants;

high level of control over equipment quality, program costs and applicant pool;

use of time-sensitive factors to help boost participation; and

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no need to require long-term commitments. Residences receiving water from LCRA water customers can replace up to two toilets per residence. The municipal customer promotes the HET distribution and verifies end-use customer eligibility. LCRA has developed a set of marketing materials for use by municipal customers. A password-protected LCRA web-based interface serves as a database for applicant information and provides municipal customers with the ability to issue vouchers to their end-users. Applications are screened by the municipal customer staff to ensure water accounts are active and that qualifying properties were built before the program cut-off date. Qualified applicants are entered into the database and issued vouchers. Participants then have a set time period (typically the duration of the HET distribution) to redeem the voucher at contracted plumbing supplier locations. The contracted plumbing supplier is responsible for training plumbing store staff on the distribution requirements and maintaining an adequate supply of toilets at the locations for end-users to pick up. End-users who do not select the toilet model under contract can apply the dollar value of their vouchers to any other WaterSense-labeled toilet that meets their needs. The municipal customer is responsible for helping facilitate the disposal of old toilets and communicating potential recycling information to end-users. Recycling is often accomplished through a one-day collection event at the end of the distribution, or by combining it with other efforts such as household hazardous waste collections. LCRA provides technical assistance with this effort.

2.2 High-Efficiency Showerhead Distribution

2.2.1 Background

Numerous water providers have been offering incentives for showerhead replacement for years. Some conservation programs install the showerheads as part of a household water audit, while others distribute them primarily for good customer relations and to educate consumers about easy ways to save water. According to the EPA, showering is one of the leading ways people use water in the home, accounting for nearly 17 percent of residential indoor water use, or about 30 gallons per household per day. EPA WaterSense-labeled showerheads use 20 percent less water than the federal standard of 2.5 gallons per minute (gpm). Anecdotal evidence suggests that high-efficiency showerheads are better received in homes built in the past two decades. By dropping the flow rate below 2.5 gpm, some high-efficiency showerheads do not fare as well in older homes, primarily because some of these homes (not all) lack plumbing systems with mixing valves that correctly adjust incoming water pressure or outgoing water temperature to prevent sudden fluctuations in temperature. LCRA informed its customers of this trend but does not require participating customers to screen applicants and enforce any type of home-built cut-off date for distribution.

2.2.2 Overview

The High-Efficiency Showerhead Distribution incentive is offered in partnership with LCRA’s customers as a direct distribution program. To maximize cost-effectiveness, LCRA purchases the product in bulk directly from a qualified plumbing supplier and distributes it to its municipal

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customers, upon request. The current showerhead specification mandates that the devices be chrome, WaterSense-labeled showerheads with a flow-rate of less than 2 gpm.

It is the municipal customers’ responsibility to distribute the showerheads to its end-users and ensure good use of inventory practices and procedures. End-users are required to provide information such as installation address and water account number to customer staff to ensure their eligibility. Qualified end-users are entered into the LCRA-maintained web-based interface database for inventory tracking purposes.

2.3 Benchmarking Research

Various alternatives to residential indoor conservation incentives are available and have been implemented by other water providers throughout the United States.

Table 2. Residential Indoor Conservation Benchmarking

San Antonio Water

System

City of Fort

Worth

Dallas Water Utility

East Bay Municipal

Utility District, CA

Santa Clara Valley Water District, CA LCRA

Toilets

Number of toilets eligible for upgrade

2 2 2 2 3 2

Eligibility terms

Homes built before 1992

Homes built before

1994

Homes built before

1992

Homes built before 1993

Anyone replacing a 3.5 gallon-per-flush

toilet

Homes built before 1996

Incentive amount

Direct distribution

Direct distribution

$90 credit on water bill per toilet

$50 credit on water bill per

toilet

$125 credit on water bill

per toilet

Direct distribution

Showerheads and other equipment

Equipment type

Free showerheads

and faucet aerators

No No

Free showerheads,

faucet aerators, shut-

off nozzles

Free showerheads

and faucet aerators

Free showerheads

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3.0 Residential Irrigation Technology Rebates

3.1 Background

Studies have shown that at least 15 to 20 percent of outdoor landscape irrigation is wasted, often due to irrigation systems that are poorly designed, installed or maintained. In addition, landscape irrigation technology is constantly advancing, and these advances often increase water conservation. The Residential Irrigation Technology Rebates are designed to encourage end-users to invest in irrigation equipment upgrades that will increase the efficiency of their systems. LCRA will partner with its municipal customers to offer the rebates to end-users. Economies of scale make it less expensive for LCRA to process the applications and send checks to qualified end-users, rather than have each individual municipal customer do so on their own. One of the key requirements of the rebates is for participating municipal customers to have an irrigation evaluation program in place. The evaluations serve as the prescreening or preapproval process for the equipment rebate and are key to the measure’s success — particularly in terms of promoting the availability of the rebates to end-users and providing first-hand oversight of the equipment being rebated. A participating end-user can expect to have a technician evaluate the performance of their irrigation system and receive a list of recommendations for equipment upgrades as well as an irrigation schedule that takes into account factors specific to their property, such as plant type, shade coverage and irrigation system efficiency.

3.2 Overview

Rebates are available for the purchase of irrigation equipment that increases the efficiency of residential sprinkler systems. Rebates are available to residential end-users who are served by a participating LCRA municipal water customer and have an active water account at an installation address. New installations of irrigation systems, as well as irrigation efficiency projects that have been completed prior to the initial irrigation evaluation, will not qualify. Eligible equipment items, shown in Table 3, include pressure reducing spray heads, rain sensors and soil moisture sensors — although additional irrigation technologies could be added in the future. The equipment has been rebated by other water suppliers around the country and has shown to be cost-effective for LCRA as well as the homeowner receiving the rebate. The maximum rebate amount for the Residential Outdoor Incentives will be $350 per system or 50 percent of the total cost.

Table 3. Residential Irrigation Technology Equipment Items and Associated Rebate Amounts

Irrigation Technology Equipment Items Rebate Amount

Pressure-reducing spray heads* Up to $5 each

Soil moisture controller and sensors Up to $250 per system

Rain sensors Up to $50 each

*To be eligible for the rebate, the end-user applying for the rebate must have replaced an entire zone, or multiple zones, with pressure reducing spray heads.

After receiving an irrigation evaluation from a participating municipal customer, if system upgrades are recommended by the technician, the end-user has the option to pursue making

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the upgrades to their sprinkler system for a partial reimbursement. Upgrades can be made by the homeowner or by a licensed irrigator. In order to receive the rebate, the end-user needs to submit the rebate application to the customer along with any itemized receipts for reimbursement. The customer will follow up with the end-user to perform a post-inspection on the property to make sure the equipment has been installed and is functioning correctly. If the municipal customer approves the rebate, the application and receipts will be forwarded to LCRA for a check to be cut to the end-user.

3.3 Benchmarking Research

Irrigation technology rebates have had proven success through programs offered by Austin Water Utility, San Antonio Water System, Southern Nevada Water Authority and other water providers. The rebates are constantly being modified to include some of the latest advances in technology, such as soil moisture sensors and other means to maximize water savings. For instance, in an effort to reduce the total amount of spray irrigation, Austin Water Utility modified its irrigation rebate to include drip conversions and capping stations. Table 4 provides a summary of benchmarking conducted for this measure.

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Table 4. Residential Irrigation Technology Rebate Benchmarking

San Antonio Water System

Austin Water Utility

Atascadero Mutual Water,

California

Saving Water

Partnership, Seattle Area

Southern

Nevada Water Authority

Pressure-regulating technology

$50 per station Up to $40 per station (limit of

4 stations)

$3 per nozzle, $12 minimum

with a maximum

rebate up to $375

$3-10 per head

Drip conversion

$100 per station

Up to $50 per station

$0.30 per

square foot

Rain sensor Up to $75 $15 Up to $75 $25 or 50% off purchase price

Soil moisture sensor

Up to $75

$100 equipment determined

by staff

Up to $100 – $250

(depending on number of

stations)

$200 or 50% off purchase price

Other rebates offered

Up to $125 per station for capping a

station. Up to $50 for

hydrozone conversion.

Up to $50 per station for capping a

zone and $100 on pressure regulating

valves.

Up to $225 – $375 for a

smart controller and $75 - $150 for a pressure regulating

valve.

Smart controllers and soil moisture sensors are

rebated up to $200 or 50% of

cost.

Additional information

Maximum rebate of $400.

Distribution: 25% at

installation, 75% after one year if usage

remains below recommended

amount.

Maximum rebate of $375 per residential

property.

Maximum rebate of $500 for irrigated

areas less than 5,000 square feet. Maximum rebate of

$2,000 (or more with

preapproval) for areas

greater than 5,000 square

feet.

Point of sale discounts

offered for soil moisture

sensors and specific models

of smart controllers

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4.0 Commercial, Institutional and Industrial (CII) Incentives

4.1 Background

Rebates are available for the purchase of proven water-efficient technologies installed in eligible commercial, institutional and industrial (CII) buildings. The rebate process for CII retrofits is designed to assist end-users of LCRA’s customers with identification of indoor and outdoor water-saving opportunities. Participants must have a qualified water conservation consultant evaluate the performance of the site’s water-using components and receive a list of recommendations for equipment efficiency upgrades. The goal of the rebate is to shorten the payback period associated with CII projects, thus making their implementation more feasible from an economic standpoint.

4.2 Overview

CII measures and rebate amounts are in Table 5. In addition to rebates for specific equipment items, incentives are also available for process modifications that result in water savings. A number of criteria were used to determine the list of equipment for the CII rebate including the following:

Potential for water savings;

Cost per acre-foot; and

Estimated return on investment for the customer receiving the rebate.

Table 5. CII Equipment Items and Associated Rebate Amounts

LCRA firm water customers and their CII end-users are potentially eligible for the rebates. A comprehensive water efficiency evaluation of the facility by LCRA staff, or other qualified water conservation consultant, is required to help identify potential water-saving opportunities. When LCRA conducts the evaluation, the participating customer or end-user must allow staff access to their facility, supply water usage records, and provide a knowledgeable representative to escort staff during the evaluation. The CII end-user or customer must install or implement water saving recommendations within three years from the date of the evaluation in order to qualify for the rebate. For process modifications, an applicant will need to provide a written proposal outlining the facility’s current process configuration, new process configuration(s), amount of water proposed to be saved, project costs, and the timeline needed to complete the modifications. At a minimum, the proposal will reflect the schematics outlining the proposed modifications along with a written report.

CII Equipment Items Rebate Amount

High-efficiency toilet (1.28 gpf or less) Up to $100 per unit

High-efficiency urinal (0.5 gpf or less) Up to $100 per unit

High-efficiency spray rinse valve Up to $65 per unit

Other CII efficiency measure or process modification

Up to $900 per acre-foot of water saved per year or 50 percent of the project cost, whichever is less

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4.3 Benchmarking Research

CII rebates have resulted in significant water savings in communities that have substantial commercial and industrial sectors, such as Austin, San Antonio and Seattle. Similar to LCRA, these efforts typically offer a combination of specific equipment items that are eligible for rebate in addition to a larger process modification rebate.

Table 6. Commercial, Institutional and Industrial Incentives Benchmarking

Equipment/ Process

Saving Water Partnership – Seattle

Area San Antonio

Water System Austin Water

Utility

Southern Nevada Water

Authority

Tank-type toilets Up to $100 Free, plus free installation for

nonprofits

$25 per toilet (new and retrofit)

Flush-valve toilets $100 for 1.6 gallon per

flush (gpf) units; $125 for 1.28 gpf

Free, plus free installation for

nonprofits

Urinals $150

$180 per 0.5 gpf urinal;

$360 per waterless urinal

High-efficiency spray rinse valves

Free (equipment and installation)

Air-cooled ice machines

Up to 50% of cost Up to 50% of cost

$360 per 100 pounds of ice produced per

day

Food service equipment

$1,250 to replace inefficient food

steamers

Laundry $100 for an efficient washing machine

$1/gallon/day or 50% of

equipment cost; $150 rebate for efficient coin-

operated washing machine

Large-scale modifications resulting in water savings

Large-scale retrofits (process modifications) up

to 50% of cost

$1/gallon/day (or $893 per acre-foot) or

50% of equipment cost, with maximum

rebate of $100,000

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5.0 Firm Water Conservation Cost-share

5.1 Background

The LCRA Firm Water Conservation Cost-share provides funding to LCRA firm water customers to help offset the cost of water-efficiency projects and programs established by customers. LCRA firm water customers expressed their support for the cost-share at customer meetings and throughout the 2008 Task Force process, stating that this type of program would help make certain projects attainable that otherwise would not be attainable without a supplemental funding mechanism. Water efficiency programs encompass conservation and reuse efforts as well as water loss reduction and prevention. LCRA’s Firm Water Conservation Cost-share could provide funding for a variety of projects and efforts, including:

1. Water loss reduction efforts:

Pressure reduction measures

Replacing or retrofitting existing water meters with automatic meter reading (AMR) systems

Reducing flushing amounts due to the elimination of dead-end lines

Distribution system leak detection equipment, portable and permanent 2. Efficiency equipment upgrades for irrigation and industrial firm water customers 3. Recycling and water reuse projects that replace potable or raw water use with

condensate or reclaimed water 4. Demand-side conservation programs with proven water savings:

Installing or retrofitting water efficient devices such as plumbing fixtures and appliances

Encouraging the retrofit of existing landscape irrigation systems to more efficient systems using soil moisture sensors or other technologies

5.2 Program Overview

Only LCRA firm water customers are eligible to participate. Cost-share funds awarded will only be used for water efficiency measures that result in concrete water savings. Funds will not be used for planning grants, hiring of consultants, training or workshops. LCRA will market the availability of the program directly to its firm water customers through its Firm Water Customer meetings, Tributary newsletter, and other forms of communications. Similar to the state’s efforts with the Clean Water and Drinking Water State Revolving Funds, systems with high water loss will be contacted to encourage improvements. Applications will be received and reviewed twice a year. Application packages that do not include all required documentation will be deemed ineligible and will not be reviewed by LCRA staff or the Review Committee. The application package will include the following:

Statement of work, including time frame

Funding proposal and breakdown of project costs and local commitments

Project criteria checklist

Water-savings calculations (estimated demand reduction) resulting from the completion of the proposed project

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Any eligible application not funded may be resubmitted for the next funding cycle. Applicants are able to bundle multiple projects into one application; however, the Review Committee has the discretion to recommend awarding an incentive amount lower than what is requested. The Review Committee approved the evaluation criteria that assist in the review and evaluation of the proposals. Funding will be awarded based on a combination of factors including:

Cost effectiveness (LCRA cost per acre-foot of water saved)

Life expectancy of water savings

Certainty of water savings

Ability to implement

Past performance and/or previous participation

Innovation

LCRA staff will review, evaluate and present qualifying applications to the Review Committee, which will make the final determination for funding awards. There is a minimum 50 percent cost-share requirement for applicants, which can be made through a combination of local funds and/or in-kind services.

5.3 Benchmarking Research

Other wholesale water providers and regional entities have had success implementing wholesale cost-share incentives. The Sabine River Authority provides up to $10,000 to qualified participants for water resource projects such as water meter replacement and water line repairs. Similarly, the Edwards Aquifer Authority awards grants of up to $150,000, or 50 percent of the cost, to its permit holders for conservation projects. Some of the projects that received funding include leak detection and repair programs and plumbing retrofit programs. On a national level, the South Florida Water Management District provides funding assistance of up to $50,000, or 50 percent of the total project cost, to help fund conservation projects such as “smart” irrigation controllers and soil moisture and rain sensor technology for irrigation systems.

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Table 6. Firm Water Cost-share Benchmarking

Water Supplier Incentives Offered Program Oversight Funding

Colorado River Water Conservation District

Grants for water resource projects, including conservation, of up to $150,000 or 25 percent of cost (whichever is less)

Staff ranks and recommends projects to Board Executive Committee, which makes final recommendation for board action

Approximately $250,000 annually

Edwards Aquifer Authority

Groundwater Conservation Grant Program provides 50 percent cost-share for measurable conservation efforts

Board makes final approval on individual grant project funding

Approximately $300,000 from Conservation Fund

Sabine River Authority

$10,000 Community Assistance Grants given for water projects, including 12 conservation projects, almost all of which have been water-loss recovery (repairing water lines, pumps, meters, valves, etc.)

Executive staff of eight people headed by general manager reviews applications and makes recommendations to SRA board of directors, which has final approval

Annual budget of $150,000

South Florida Water Management District

Water Savings Incentive Program funding assistance reimbursement program helps fund conservation projects up to $50,000 with a 50 percent match

Projects ranked by selection committee comprised of members appointed by district’s governing board, as well as district staff. District's governing board makes final approval

Approximately $500,000 annually