LADWP: Turf Replacement Rebates

Los Angeles Department of Water and Power: Turf Replacement Rebates

Los Angeles Department of Water and Power’s Turf Replacement program provides rebates to residential and commercial who replace turf with sustainable landscapes. LADWP’s goals with this program are to help consumers save on their water bills while also contributing to groundwater recharge, reducing urban stormwater runoff, and enhancing wildlife habitat.

LADWP uses its bond proceeds to finance these incentives, and also uses grants, forgivable loans, and 0% interest loans. LADWP’s decision to debt-finance localized infrastructure drew on the utility’s leaderships’ experience in the energy sector and involved LADWP working with the city council, the local ratepayer advocate that advises on rates, and the lending agencies and bond buyers to address their concerns about the impact on water use and revenues and how the program would be governed. A key lesson learned is that it is essential for the utility to able to show ratepayers and oversight agencies that the costs of localized infrastructure are outweighed by the benefits to water system.