PURPOSE

To update the City Council on Burbank Water and Power�s current and proposed Public Benefits programs. 

BACKGROUND

California�s 1998 Public Benefits mandate requires all electric distributing organizations in the state to invest 2.85% of annual electric retail rate revenues in Public Benefits projects.  There are four sanctioned Public Benefits categories:

1.      Energy-Efficiency projects and programs

2.      Low Income rates and programs

3.      Renewable energy

4.      Research, development and demonstration projects

The City of Burbank divides the 2.85% Public Benefits obligation between BWP (1.85%) and the General Fund (1%).  For FY 2003-04, the total Public Benefits obligation is about $4 million, with BWP responsible for approximately $2.5 million of that amount.  Not all dollars must be spent during each year.  The unspent or overspent portion of the obligation simply rolls over to subsequent years, changing the future obligation. The Public Benefits investment requirement extends through to January 1, 2012.

This report will highlight BWP�s current and upcoming Public Benefits programs.

I.  BWP�s Current Public Benefits Portfolio

Over the past few years, BWP has created a number of energy-efficiency programs for Burbank�s residents and businesses and built several renewable energy projects at City facilities.  Our goal with each program is to increase the efficiency of our customer�s overall and peak energy use, increase awareness of energy conservation, and showcase environmentally preferred energy alternatives.

Staff has been delighted with some exceptional program results.  In particular, our new shade tree program has received rave reviews that we are very proud to share with you. 

What follows is a brief update on each of BWP�s existing Public Benefits programs. 

Made in the Shade

Introduced in March 2003, BWP�s shade tree program called �Made in the Shade� has been enthusiastically greeted by Burbank�s residents.  The program provides for up to three shade trees selected by and delivered to residents for free.  To participate, residents simply call our program arborist and schedule an at-home consultation.  During this meeting, the certified arborist reviews possible residence-shading locations on the property.  Together, the arborist and resident select sites and tree species from a list of about 30 trees.  About two weeks later, the 15-gallon trees are delivered directly to the residence.  BWP also provides stakes, ties, arbor guards, and a tree-planting video, all at no cost to the resident. 

In the first four months of the program, 625 households have participated, receiving nearly 1,200 shade trees.  This exceptional reception has significantly outstripped our estimates.  We�re pleased to have to revise our estimate! 

While it is impossible to accurately determine the air conditioning energy savings that these plantings will achieve, this program offers the distinct advantage of growing (literally!) savings over multiple years, while costs to the City are loaded in year one.  Additionally, this program offers the environmental benefits of improving air quality, mitigating the heat island effect, which contributes greatly to the formation of smog, and reducing storm drain run-off during the rainy season, not to mention the direct aesthetic appeal of the trees themselves! 

BWP sends each resident participating in this program a short customer satisfaction survey.  Responses show a high satisfaction with the program. 

Staff will continue to monitor the Made in the Shade program and will review all feedback for continuous program improvements.  Additionally, at Council�s request, we will be working with Parks, Recreation and Community Service staff to develop a joint commercial shade tree program. 

Compact Fluorescent Light Coupon Program

In the February 2003 municipal services bill, BWP ran a $3 off coupon for the purchase of any Energy Star-rated compact fluorescent light (CFL) purchased by May 1, 2003 at the Do-It Center, Lowe�s, or OSH.  This program continued BWP�s efforts to introduce CFLs into Burbank homes.  While CFL prices continue to drop, the higher first cost of the bulbs can make them a difficult choice for consumers.  However, CFLs are indeed the better economic choice.  According to the Environmental Protection Agency, the superior energy performance of CFLs means that consumers can save at least $25 in energy costs over the life of each CFL that replaces an incandescent bulb.

The BWP coupon program resulted in 697 redemptions, or 1.4% of Burbank�s households taking advantage of the program.  While not a large hit rate, the total program costs were less than $3,700.  Additionally, the program�s design benefited the three participating Burbank retailers as well as the Burbank residents who took advantage of the coupon.  BWP is considering running another dollars off coupon in BWP�s newsletter to gauge the hit rate of this method.  Another option would be to utilize BUSD students in a CFL fundraising program.  What we envision is BWP purchasing CFLs and donating those to the BUSD.  Burbank�s students could then sell these energy-saving lights to their families and neighbors.  All monies collected would be kept by the BUSD to help fund energy-saving and other initiatives. 

Staff will continue to explore cost-effective ways to introduce CFLs to Burbank residents. 

Torchiere Exchange Program

On Saturday May 17, 2003 BWP held a Torchiere Exchange Program where we gave Burbank residents over 700 new, energy-efficient fluorescent floor lamps (torchieres) in exchange for their old halogen floor lamps. 

One important element of the program design was the use of John Burroughs and Burbank High School students to run the program.  Together, the Burroughs football program and Burbank band program signed up over 50 students to assist us in running the program.  Burbank�s band students were in charge of signing in customers and directing them to the appropriate line.  Burroughs football students did the heavy lifting of extracting the old lamps and loading in the new ones into resident�s vehicles.  We are so pleased to report that there wasn�t one scratch or injury suffered during the entire day!  BWP owes a debt of gratitude to all the students, but to the Burroughs students in particular.  Their enthusiasm, hard work, and courtesy were noted by all who came in contact with them.  In exchange for the student�s support and time, BWP paid each program $4,000.

There are two important reasons why BWP has run this program twice in the past two years.  First, halogen lamps use about four times the energy as fluorescent lamps.  Second, halogen lamps burn at up to 1100� Fahrenheit, while fluorescent lamps burn at a cool 100� Fahrenheit.  To offer some perspective on this, the ignition point for paper is 249� Fahrenheit.  What this means is that there exists a real fire concern with halogen torchieres.  In fact, according to a 2001 report from the U.S. Consumer Product Safety Commission, 530 fires and 36 deaths since 1992 are attributed to halogen lamps.  For this reason, Burbank�s Fire Department has co-sponsored both of BWP�s torchiere exchange programs. 

Legislation passed a few years ago requires halogen lamp manufacturers to include a protective guard over the halogen light itself.  This device dramatically reduces the incident of fire by preventing flammable items from contacting the heat source directly.  One caveat to this is that the guard device is only effective in lamps with halogen lights that do not exceed 300 watts.  An additional design improvement used on some newer halogen floor lamps is a device that shuts off the lamp when it tilts beyond a specific degree.  This feature lessens the fire hazard associated with tipped-over lamps. 

While these fire safety improvements go a long way in limiting the fire hazards associated with newer halogen floor lamps, the sobering reality is that there are millions of older lamps that do not have these protective features.  According to the 2001 Consumer Product Safety Commission report, over 40 million halogen floor lamps made before 1997 lack the protective guard.

BWP and Burbank Fire Department staff has discussed the viability of running a third Torchiere Exchange Program in 2004.  The Fire Department agrees that this would be a prudent approach.  BWP is considering expanding the program to include Burbank businesses.  If BWP does offer this program in 2004, we will certainly use BUSD students to assist in running the program. 

Clean Green Support

BWP offers Clean Green Support to Burbank residents who wish to support green energy production in California.  Residents who enroll in Clean Green Support select either a $3 or $5 monthly premium amount to show on their municipal services bill.  The $3 amount covers 50% of the kilowatt-hours used by their household during the month; the $5 option supports 100% of the household�s energy use.  BWP is using the funds from this program to purchase Green Tickets on participants� behalf.  All dollars are spent on Green Tickets. 

Which begs the question: What are Green Tickets?  Green Tickets represent the added cost to produce green energy and the environmental value of it.  The purchase of Green Tickets directly supports green energy production.  As green energy is produced, non-green energy sources may be displaced. 

BWP introduced the Clean Green Support program in November 2001.  Currently, nearly 700 Burbank households are enrolled in Clean Green Support, most (72%) at the 100% level.  In FY 2002-03, BWP purchased 12,526 megawatt-hours of Green Tickets from biomass, geothermal and small hydro generation sources.   BWP is entering into an agreement to purchase the entire annual Green Ticket output of a 1.8-megawatt wind turbine.  This turbine will produce over 5,000 megawatt-hours of Green Tickets annually.  This wind turbine is part of the brand new 145-megawatt High Winds wind farm in Solano County.  The High Winds project has the distinction of being the only California merchant wind-generated power plant to come on-line in 2003. 

With Council approval, BWP will also be extending participation in the Clean Green Support program to all Burbank businesses.  We propose that flat monthly fees be assessed based upon average monthly kilowatt-hour usage.  Staff would establish brackets of energy usage with associated participation costs.  For instance, monthly usage falling into the 2,000 to 3,000 kilowatt-hour bracket would be charged a specific amount.  The amount would increase as the energy usage brackets increased. 

Splash into Savings Pool Program

In August 2001, BWP offered the Splash into Savings program to Burbank homeowners with built-in pools. BWP rewards participants with a $5 credit on the their monthly municipal services bill in exchange for the resident setting their pool pump to run during off-peak energy hours throughout the year.  Those off-peak hours are 10:00 p.m. to noon. 

The purpose of the program is to reduce on-peak energy demand.  By running the pumps during off-peak hours residents help BWP reduce the energy peak when energy is at its costliest to produce or procure.  This simple action helps BWP reign in energy costs and increases our ability to limit rate adjustments. 

Currently, over 800 households, about a fourth of all pool-owning households in Burbank, are enrolled in this program. 

 Energy Solutions Business Rebate Program

BWP offers rebates to Burbank businesses under our Energy Solutions Program. Energy Solutions is an umbrella program offering financial assistance for:

�        Facility audits

In October 2002, BWP hired a solar consultant to conduct daylong solar learning workshops and demonstrations at four Burbank schools.  This pilot program engaged third grade students at Miller, Washington, Jefferson, and McKinley elementary schools in the science of solar energy.  The sessions gave the students hands-on experiences that were fun as well as instructional.

By all measures, the pilot program was a great success.  It stimulated curiosity in both students and teachers, provided hands-on instruction to learn complex concepts, and reached out to about 500 students in just four days.  At the end of each session, an evaluation was distributed to the 14 teachers involved in the sessions.  All gave the program exceptionally high marks in overall success, instruction quality, and for reinforcing science concepts covered in the classroom. 

What made the program such a success was largely due to the engaging consultant, Kreigh Hampel.  Recently, the City hired Kreigh to be the Recycle Center Coordinator.  BWP staff is working with the Public Works Department to determine how Kreigh�s solar education services might be used in providing this solar program to the Burbank Unified School District. 

Landfill Microturbines Retrofit

In July 2001, Burbank became the first city in California to operate a full-time landfill power plant using microturbine technology.  When we flipped the switches on the ten microturbines installed at the landfill, BWP began producing nearly 300 kilowatts of clean energy.  Demonstrating any new technology carries with it the likelihood of having to troubleshoot unexpected problems that may occur.  This has proved to be the case for the landfill project.  For the past few months, the microturbines have been unable to operate.  The reason for this is the corrosive acids that exist in the landfill gas.  In distinctly layperson terminology, the landfill gasses have been eating away at the rotating components of the gas compressors that provide the fuel to the microturbines.  This has rendered the compressors unable to adequately dry, filter and compress the landfill gas.  The microturbines themselves are fine.  It is the challenging nature of the methane landfill gas we are having problems with.

Returning the landfill microturbines to full operating capacity and further utilizing the additional available capacity of the landfill gas is a priority for BWP.  However, it is not staff�s recommendation to do so at the expense of current Public Benefits programs.  BWP staff recommends that we move forward immediately with changes and replacement of the landfill gas handling and further evaluate and develop its utilization.  Staff will be returning to the City Council with specific recommendations to changes regarding landfill gas handling equipment, further utilization of the available gas and related funding including the possible use of available grants. 

Business Waterbroom Program

There is another program that BWP staff is working on that we�d like to share with you.  As a water conservation program, it does not fall under a Public Benefits designation.

What is a Waterbroom and Why Should We Care?

Waterbrooms are low-tech devices that can save a dramatic amount of water. Waterbrooms attach to garden hoses and use a combination of air and water pressure to clean surfaces such as kitchen floors, restaurant patios, walkways, industrial yards, and so on. Waterbrooms are available in four sizes to accommodate different work areas.  Compared to the typical method of hosing down an area which uses eight to 18 gallons of water per minute, use of a Waterbroom to do the same job reduces water consumption to three or four gallons per minute.  These water savings are not just empty claims but well-documented results.  In addition to water savings, Waterbrooms offer a couple other important advantages.  First, labor savings are seen when using a Waterbroom to clean hardscape surfaces.  Since the device is anywhere from 21� to 46� long at the base, a significant amount of surface area is concentrated upon at any given time.  It�s easy to visualize the differential in cleaning time when comparing the area a Waterbroom can handle to the area that a hose stream can address.  A second additional advantage that Waterbrooms boast is quicker drying times.  This occurs as less water is used in the Waterbroom cleaning process as compared to simply hosing a location down, eliminating hazardous puddling.  The implications for safety are apparent. 

Staff has been creating a Waterbroom program for Burbank businesses that we had hoped to present to you tonight.  However, in late August, staff working on the Waterbroom project became aware of the City�s storm water discharge permit issued by the Regional Water Quality Control Board.  This permit allows sidewalk rinsing, but only if it is limited to 0.006 gallons per square feet of sidewalk area, or about four teaspoons of water per square feet.  With this standard, the permit essentially excludes water rinsing of sidewalks.  Runoff from water cleaning of parking lots and other paved areas is not an allowable discharge under the permit. 

Staff is reviewing possible options where the Waterbroom could be an effective water-saving tool that adheres to the storm water discharge permit.  Additionally, the Waterbroom manufacturers are working on a water capturing and containment device that can be attached to the Waterbroom. 

Staff will be returning to the City Council with specific recommendations for a Waterbroom business program once the storm water discharge issue has been resolved.

FISCAL IMPACT

With the exception of the landfill microturbine upgrade project, the FY 2003-04 Public Benefits budget has sufficient funds to cover all existing and proposed programs detailed in this report.

RECOMMENDATION

Staff requests that the City Council approve staff�s recommendations for the proposed FY 2003-04 Public Benefits programs and projects.

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Attachment

Table 1

FY 2003-04 Public Benefits Budget by Customer Class

Beginning Balance (obligation carried forward)                                      $   269,982

FY 2003-04 BWP Spending Obligation                                                 2,577,586

FY 2003-04 Public Benefit Budget                                                   $2,847,568

FY 2003-04 Public Benefits Programs:

Residential Programs

Lifeline                                                                                                $   680,000

Home Rewards                                                                                        310,000

Made in the Shade                                                                                   150,000

Splash into Savings                                                                                    55,000

Torchiere Exchange                                                                                   50,000

On-Line Energy Audits                                                                              22,500

Compact Fluorescent Lights                                                                        7,500

            Residential Total                                                                  $1,275,000

Business Programs

Energy Solutions                                                                               $   500,000

Business Audits                                                                                      350,000

            Business Total                                                                     $   850,000

Demonstration Programs

Solar Photovoltaic Demonstration Carport                                       $   393,969

Solar Education                                                                               $     30,000

BWP Heat Pump Educational Display Unit                                               5,000

            Demonstration/Education Total                                       $   428,969

Conservation Communication, Information

& Administration                                                                             $  293,599

FY 2003-04 Total Program Spending                                            $2,847,568

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