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Home My WebLink About7.a. 2020 Water Efficiency Grant DiscussionG:\MEETINGS\UTILITY COMMISSION\UC Items and Packets\2021\20210222\7.a. 2020 Water Efficiency Grant Discussion.docx E X E C U T I V E S U M M A R Y Utility Commission Meeting: February 22, 2021 AGENDA ITEM: Water Efficiency Grant Discussion AGENDA SECTION: New Business PREPARED BY: Brian Erickson, P.E. Director of Public Works / City Engineer AGENDA NO. 7.a. ATTACHMENTS: Met Council Water Efficiency Grant Program guidelines, Grant award letter, Grant agreement APPROVED BY: BLE RECOMMENDED ACTION: None, informational only BACKGROUND At the January 25, 2021 Utility Commission meeting, the commissioners discussed the current water efficiency grant the city received from the Metropolitan Council . This is a competitive grant that the city was awarded in 2019 with an expiration date of June 30, 2022, unless funds are expended sooner. The awarded amount was $11,300 with a required city match of $3,770. As part of the grant there were several critical points to remember: • The applying municipality must be a water supplier • New construction and new developments are not eligible • Funds are for rebates or grants only; consulting and city staff time are ineligible • Combined [Metropolitan] Council and municipality funds cannot pay for 100% of an eligible activity’s cost • A portion of each eligible activity’s cost must be paid by the property owner • Grant recipients must display the Clean Water, Land and Legacy Amendment logo and the Metropolitan Council logo on program-related web pages and paper communications The commission expressed an interest in making sure that the funding provided by the program is fully expended by the time the grant expires. As of December 31, 2020, approximately 33% of the grant ($3,728.75) has been used in providing rebates for property owners. Most of those rebates have been used for irrigation controller replacement. Staff has been publicizing this program; however, additional discussion with the Communication Coordinator provided the possibility of more promotions via social media. RECOMMENDATION None, provided for information and discussion only. 1 Metropolitan Council Water Efficiency Grant Program Overview The Metropolitan Council (Council) will implement a water efficiency grant program effective September 30, 2019 to June 30, 2022. Grants will be awarded on a competitive basis to municipalities that manage municipal water systems. The Council will provide 75% of the program cost; the municipality must provide the remaining 25%. Municipalities will use the combined Council and municipality funds to run their own grant or rebate programs. Grants will be made available in amounts with a minimum of $2,000 and a maximum of $50,000. Grantees will be required to provide estimated water savings achieved through this program for Clean Water, Land & Legacy Amendment reporting purposes. Legislative Directive - Minnesota 2019 Session Law $375,000 the first year and $375,000 the second year are for the water demand reduction grant program to encourage municipalities in the metropolitan area to implement measures to reduce water demand to ensure the reliability and protection of drinking water supplies. Fiscal year 2020 appropriations are available until June 30, 2021, and fiscal year 2021 appropriations are available until June 30, 2022. Grant Program Goal The goal of the water efficiency grant program is to support technical and behavioral changes that improve municipal water use efficiency in the seven-county metropolitan area. Critical Points to Remember • The applying municipality must be a water supplier • New construction and new developments are not eligible • Funds are for rebates or grants only; consulting and city staff time are ineligible • Combined Council and municipality funds cannot pay for 100% of an eligible activity’s cost • A portion of each eligible activity’s cost must be paid by the property owner • Grant recipients must display the Clean Water, Land and Legacy Amendment logo and the Metropolitan Council logo on program-related web pages and paper communications Grant Program Structure: Administration and Funding The Water Efficiency Grant Program will be administered by Metropolitan Council Environmental Services (MCES) and will be funded with $750,000 appropriated by the 2019 Minnesota Legislature. Grant applications will be reviewed and ranked by the MCES Water Supply Planning Unit staff. Grants are only for water efficiency programs offering rebates or grants to property owners who are customers of the municipal water supply system and who replace specified water using devices with approved devices that use substantially less water. 2 Grants will be awarded to municipalities in amounts ranging from $2,000 to $50,000 for providing rebates or grants to property owners. Municipalities will be responsible for the design and operation of their rebate or grant program and its details. Grant payments to the municipality will be for 75% of approved program amounts. The municipality must provide the remaining 25% of the program cost. Municipality rebates or grants are eligible for reimbursement on device replacements conducted September 30, 2019 through June 30, 2022. Here is an example showing the grant funding design: Eligibility Per legislative language, the grant program is limited to municipalities in the seven-county metropolitan area. Municipalities eligible per above must apply to participate and, if approved, sign a standard Council Grant Agreement, before any eligible rebates or grants can be submitted for reimbursement. Agreements shall require that municipalities: • Entirely pass through grants received (as is being done by MCES) • Verify purchase of devices to receive grants • Retain records and cooperate with any audits • Conduct all communications with property owners and ensure all written communications to property owners include both the Clean Water, Land and Legacy Amendment and the Metropolitan Council’s logo • Provide quantitative information for state reporting purposes Eligible water efficiency devices consist of the following: • Toilet replacement with a US EPA WaterSense labeled toilet • Irrigation controller replacement with a US EPA WaterSense labeled controller • Clothes washing machine replacement with an US DOE Energy Star labeled clothes washing machine • Irrigation spray sprinkler body replacement with a US EPA WaterSense labeled spray sprinkler body • Irrigation system audit by an Irrigation Professional certified by a US EPA WaterSense program Expenses eligible for reimbursement are the out-of-pocket cost of the device and its installation only, not to include any owner labor costs. In addition, new construction and new developments are ineligible, as this program is intended as a current infrastructure replacement program. Application Process • Applicants must be municipal water suppliers • Municipalities will submit MCES supplied application form by September 30, 2019. Required information includes: o the municipality’s rebate or grant program design and work plan o proposed examples of communications to property owners o requested total grant amount o estimated annual amount of water saved by the applying municipality 3 • Application form is available at: https://metrocouncil.org/Wastewater-Water/Funding- Finance/Available-Funding-Grants.aspx • Submit competed application to: brian.davis@metc.state.mn.us • Metropolitan Council will notify municipalities of grant awards and provide grant agreements by December 2, 2019. Proposal Selection Criteria In the event that funds requested exceed funds available, the following criteria will be used to determine the amount granted to a given municipality: • Municipalities that are supplied 100% with groundwater • Municipalities with identified water supply issues in Master Water Supply Plan Community Profiles or Local Water Supply Plans • Municipalities’ ratio of peak monthly water use to winter monthly water use • Municipalities’ average residential per capita water use • The order in which applications are received and until grant funds are completely committed Funding Process and Reporting Requirements • Utilizing forms provided by MCES, the following information must be reported on a quarterly basis: o Number, type and amount of rebates or grants provided to property owners, along with each property address o Estimated annual gallons of water saved per device installation o Municipality matching funds disbursed o Number of unmet funding requests from property owners, if any • Upon review and confirmation of the above information, MCES will process a grant payment in the amount of 75% of approved total rebates or grants for the reporting period. • MCES will provide confirmation of grant balances available upon request and reserves the right to amend grant agreements, in collaboration with grantee municipality, if quarterly reporting indicates rebate or grant programs will not fully utilize grant awards within the grant period. Qualified Activities • Toilet replacement with a US EPA WaterSense labeled toilet: http://www.epa.gov/WaterSense/product_search.html • Irrigation controller replacement with a US EPA WaterSense labeled controller: https://www.epa.gov/watersense/product-search • Clothes washing machine replacement with an US DOE Energy Star labeled clothes washing machine: https://www.energystar.gov/productfinder/product/certified-clothes-washers/results • Irrigation spray sprinkler body replacement with a US EPA WaterSense labeled spray sprinkler body https://www.epa.gov/watersense/product-search • Irrigation system audit by an Irrigation Professionals certified by a US EPA WaterSense program https://www.epa.gov/watersense/find-pro 4 Reporting Example Community Property Street Address Property Type Device Replaced Cost per Device # of Devices Rebate or Grant per Device Est. Annual Water (Gal) Saved Per Device Total Rebate or Grant Municipality Contribution Eligible Grant Amount Anytown 652 Silvis St Residential Clothes Washer $624.60 1 $150.00 3,000 $150.00 $37.50 $112.50 Anytown 1952 Ingram Way Residential Irrigation Controller $199.99 1 $100.00 8,800 $100.00 $25.00 $75.00 Anytown 630 Gibbons Ave Residential Clothes Washer $599.90 1 $150.00 3,000 $150.00 $37.50 $112.50 Anytown 4424 Barriger Blvd Residential Toilet $168.00 1 $50.00 4,000 $50.00 $12.50 $37.50