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Option 2. Update the City WEL Rebate with Sustainable Practices Required and increased rebate incentive Under Option 2, the City WEL Rebate would undergo an update to include the goal of encouraging sustainable lawn conversion projects that support multiple environmental benefits, which is broader than water-savings alone. These benefits include: • Protection of the City's groundwater basin and local surface waters through the elimination of herbicides used to kill off lawns targeted for conversion • Eliminate additional landfill material from the removal of the scrapped-off method of lawn • Preserve potable water supply with reduced watering need of converted landscapes • Protect and attract pollinators and birds with additional native plant availability • Potential to reduce greenhouse gas emissions through increasing carbon sequestration with compost/mulch application. This proposed option ties into the City's Draft CAP 2.0 primary objectives (specifically P144 and P155), and supports the City's stormwater National Pollutant Discharge Elimination System (NPDES) permit requirements for reducing potential herbicide run off into the waterways, and the City's Urban Water Management Plan in the reduction of residential and irrigation outdoor water use. Under this option, staff will evaluate the appropriate best practices for multi-beneficial sustainable lawn transformations for rebate eligibility. These best practices may include: • Using the sustainable practice of sheet mulching to remove lawn • Adding compost to replenish the soil and increase carbon sequestration • Including California native plants appropriate for local conditions • Cool season planting to reduce watering demands over hot months to establish the new plantings • The continued use of mulch as a top layer to reduce soil water loss through evaporation. Additionally, enhanced outreach and education on sustainable lawn conversions would be incorporated under this City WEL Rebate update to help increase awareness of the multiple environmental benefits utilizing this approach in lawn conversion projects. Program materials will be updated to highlight the new City WEL Rebate requirements. Pleasanton water customers participating in the Zone 7 WEL Rebate who wish not to approach their lawn conversion projects utilizing the City's WEL Rebate sustainability requirements are still able to participate in the Zone 7 WEL Rebate. Staff is recommending increasing the rebate offers under Option 2 to provide greater motivation to encourage Zone 7 WEL Rebate participants to select the sustainable practices approach to their lawn conversion project, and therefore become eligible for the City WEL Rebate. The proposed increased offers are shown in Table 2. Table 2. Proposed City WEL Rebate Offers for Option 2 P1-1: Increase carbon sequestration on public and private landscapes through compost and mulch. P15: Expand incentives to reduce water use including water efficiency retrofits. Page 5 of 6