Energy Resources

Gas Equipment Incentives

Long Beach Municipal Code Chapter 15.36
Effective Date: May 1, 2006

Applicable to gas equipment incentives pursuant to Section 15.36.095 of the Municipal Code.

In order to assist customers in determining the feasibility of natural gas energy and the potential benefits of natural gas equipment, the Long Beach Energy Resources Department will offer to all qualifying customers, subject to the availability of funds, incentives for the cost of feasibility studies and/or the purchase of new or replacement commercial or industrial gas equipment to be installed and used by customers for energy-efficiency purposes.

Program Objectives

1. Persuade existing nonresidential customers to install new gas equipment to reduce their overall energy costs and thereby increase their productivity and profitability.
2. Encourage the placement of new businesses into the Long Beach area by offering incentives comparable to incentives offered by other utilities in the Southern California area.
3. Demonstrate that nonresidential gas equipment is a cost competitive alternative to electric technologies.
4. Increase the amount of nonresidential gas usage during the off-peak summer to reduce average operating costs by balancing the system load.
5. Improve the Energy Resources Department's long-term revenue by offering incentives only to customers with projects which contribute a positive cash flow to the City with a reasonable payback period balanced against the actual amount of the incentive.

Customer Application

Customers shall file a written application with the Director of the Long Beach Energy Resources Department on forms provided by the City. The application shall include:

1. The name and address of the applicant,
2. The type of gas equipment being considered for purchase/replacement,
3. The size or capacity of the equipment and the volume of expected natural gas consumption,
4. The applicant's forecasted payback period,
5. The applicant's forecast of time for implementation of studies or gas equipment purchases,
6. Estimates of cost of feasibility studies,
7. Estimates of cost of natural gas equipment,
8. Profit/loss statements or other relevant financial data as requested.

Customer Selection

The customer's application will be evaluated by the Director of the Long Beach Energy Resources Department based upon the following criteria:

1. The information provided by the customer on the application,
2. The applicant's willingness to share relevant data and provide access to the facility,
3. The applicant's forecasted time requirements,
4. Any prior equipment incentives provided by the Energy Resources Department to the applicant,
5. Public policy considerations,
6. The availability of funds,
7. The balance of the cost of the incentive against the long-term benefits provided by related incremental gas sales.

The Director will advise the applicant in writing within 90 days of receiving the completed application on the results of the evaluation of the application.

Special Conditions

1. As a condition precedent to granting an incentive, a separate Equipment Incentive/Feasibility Study Agreement must be executed and approved by the City Council. The Equipment Incentive/Feasibility Study Agreement shall specify the terms and conditions applicable to incentives under this program.
2. These incentives do not apply to services provided by the Southern California Gas Company operating under franchise with the City of Long Beach.