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AB-1088 Multifamily residential housing: energy programs.(2017-2018)

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Date Published: 08/21/2017 02:00 PM
AB1088:v93#DOCUMENT

Amended  IN  Senate  August 21, 2017
Amended  IN  Senate  July 18, 2017
Amended  IN  Senate  July 10, 2017
Amended  IN  Assembly  May 02, 2017
Amended  IN  Assembly  April 19, 2017
Amended  IN  Assembly  March 28, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1088


Introduced by Assembly Member Eggman

February 17, 2017


An act to add Chapter 7.4 (commencing with Section 25640) to Division 15 of the Public Resources Code, relating to energy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1088, as amended, Eggman. Multifamily residential housing: energy programs.
The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission (Energy Commission) and requires the Energy Commission to carry out studies, technical assessments, research projects, and data collection directed to reducing wasteful, inefficient, unnecessary, or uneconomic uses of energy. The Energy Conservation Act of 2001 states the intent of the Legislature to establish incentives in the form of grants and loans to low-income residents, small businesses, and residential property owners for constructing and retrofitting buildings to be more energy efficient. The act requires the Energy Commission, in consultation with the Public Utilities Commission (PUC), to undertake certain actions for the purpose of full or partial funding of an eligible construction or retrofit project. The Clean Energy and Pollution Reduction Act of 2015 requires the Energy Commission to establish annual targets for statewide energy efficiency savings and demand reduction that will achieve a cumulative doubling of statewide energy efficiency savings in electricity and natural gas final end uses of retail customers by January 1, 2030, including measures specific to disadvantaged communities, as specified. Existing law requires the Energy Commission, by March 1, 2010, to establish a regulatory proceeding to develop and implement a comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock.
The California Renewables Portfolio Standard Program requires the PUC to establish a renewables portfolio standard requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, so that the total kilowatthours of those products sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 40% by December 31, 2024, 45% by December 31, 2027, and 50% by December 31, 2030, with the 2024 to 2030 requirements imposed by the Clean Energy and Pollution Reduction Act of 2015.
This bill would require the Energy Commission, by January 1, 2020, and in consultation with relevant state agencies and the public, to establish nonbinding statewide targets that are cost effective and feasible for reducing energy consumption and emissions of greenhouse gases from multifamily residential properties by January 1, 2030, taking into consideration the state’s requirements for reducing emissions of greenhouse gases and the climate equity, doubling of energy efficiency, and increased use of renewable energy resources requirements set forth in the Clean Energy and Pollution Reduction Act of 2015. The bill would require the Energy Commission, as part of its ongoing comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock, to consult with relevant entities, including, among others, an expert advisory committee established by the Energy Commission pursuant to the bill. The bill would, pursuant to that consultation, require the Energy Commission to do all of the following: (1) by May 1, 2019, January 1, 2020, develop statewide strategies and recommendations to better leverage existing and new programs and funding resources to accelerate integrated distributed energy resource, water, and health and safety improvement programs available to multifamily residential properties and low-income multifamily properties to achieve the state’s requirements for reducing emissions of greenhouse gases and the climate equity, doubling of energy efficiency, and increased use of renewable energy resources requirements of the Clean Energy and Pollution Reduction Act of 2015, (2) by May 1, 2019, January 1, 2020, identify best practices from model programs, funding mechanisms, and workforce development strategies, and a recommended action plan, and (3) by January 1, 2020, identify and implement ways to enhance the Energy Upgrade California Web site, or other appropriate statewide Web sites, to create a statewide Web site subcomponent for owners of multifamily residential properties and for residents of multifamily residential properties that identifies applicable distributed energy resource and water programs and points of contact. The bill would require the Energy Commission, in consultation with the expert advisory committee, to report to the Legislature, by January 1, 2019, on the strategies developed pursuant to this requirement along with any recommendations for legislative action that may need to be taken to implement those strategies. The bill would require the Energy Commission, the Department of Housing and Community Development, the PUC, the State Water Resources Control Board, the Department of Community Services and Development, and other relevant entities, to develop strategies by January 1, 2019, for standardized income eligibility verification processes for distributed energy resources and water programs and would require the Energy Commission to include the strategies and progress made in implementing them in its report to the Legislature. The bill would enact other related provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Over four million California households live in multifamily apartment buildings or complexes with two or more units and nearly half of the apartments in these multifamily apartment buildings or complexes are occupied by households making 200 percent or less of federal poverty guidelines, or $32,040 for a family of two. Multiunit rental properties have unique attributes, which can inhibit building upgrades to improve public health, reduce utility bills, and reduce emissions of greenhouse gases.
(b) Section 38566 of the Health and Safety Code directs the State Air Resources Board (state board) to ensure that statewide emissions of greenhouse gases are reduced to at least 40 percent below the statewide greenhouse gas emissions limit by no later than December 31, 2030, and to achieve the state’s stringent requirements for reducing emissions of greenhouse gases in a manner that benefits the state’s most disadvantaged communities.
(c) The Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015) directs the State Energy Resources Conservation and Development Commission (Energy Commission) to establish annual targets for statewide energy efficiency savings and demand reduction that will achieve a cumulative doubling of statewide energy efficiency savings by January 1, 2030. It also directs the Energy Commission and state board to publish a study on barriers for low-income customers and disadvantaged communities to access energy efficiency and weatherization investments, zero-emission transportation options, renewables, and local small business contracting.
(d) The Energy Commission’s completed study found several barriers to accessing the clean energy economy, including (1) in rental markets, owner and tenant incentives for upgrades are not aligned, (2) older buildings often need structural health and safety improvements to facilitate efficiency and renewable energy resource upgrades, and (3) there is a significant need to coordinate programs, share data, set common metrics, and set common goals.
(e) Streamlining eligibility verification and compliance requirements, setting common goals and metrics, and making it easier to combine funding across programs will increase the efficacy of state funding, increase participation in existing programs, and yield greater greenhouse gas reductions, energy bill savings, and public health benefits for California residents.
(f) It is the intent of the Legislature that relevant agencies overseeing distributed energy resource and water programs, or related programs, that are available to low-income households living in multifamily residential properties actively collaborate to streamline distributed energy resource and water programs and to increase the accessibility of offerings.
(g) It is the intent of the Legislature that strategies undertaken pursuant to this act will provide benefits to low-income households living in multifamily residential properties.

SEC. 2.

 Chapter 7.4 (commencing with Section 25640) is added to Division 15 of the Public Resources Code, to read:
CHAPTER  7.4. Multifamily Residential Housing Programs

25640.
 For purposes of this chapter, the following terms have the following meanings:
(a) “Community choice aggregator” has the same meaning as defined in Section 331.1 of the Public Utilities Code.
(b) “Distributed energy resource” means energy measures or technologies, including energy efficiency, demand response, demand management, distributed generation using renewable energy resources, energy storage, and plug-in electric vehicle charging infrastructure, that can be used, individually or in combination, to provide value to the electrical grid and electric utility customers.
(c) “Electrical corporation” has the same meaning as defined in Section 218 of the Public Utilities Code.
(d) “Gas corporation” has the same meaning as defined in Section 222 of the Public Utilities Code.
(e) “Local publicly owned electric utility” has the same meaning as defined in Section 224.3 of the Public Utilities Code.
(f) “Low-income multifamily property” means a multifamily residential property containing units constructed for lower income households, as defined in Section 50079.5 of the Health and Safety Code. Code, or a multifamily residential property containing units occupied by residents with annual household incomes at or below 200 percent of federal poverty guidelines.
(g) “Multifamily residential property” means real property that has two or more dwellings intended for human habitation that are located in one or more permanent multitenant buildings or mixed-use residential-commercial buildings or portions thereof that are intended for human habitation. Multifamily residential property includes residential hotels, but does not include hotels and motels that are not residential hotels.
(h) “Unit of local government” has the same meaning as defined in Section 25411.

25641.
 (a) (1) As part of its ongoing comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock pursuant to Section 25943, and in coordination with the setting of energy efficiency targets under the Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015), the commission, by January 1, 2020, and in consultation with relevant state agencies and the public, shall establish nonbinding statewide targets that are cost-effective, based on the cost to ratepayers, ratepayers and the hardships facing low-income households, and feasible for reducing energy consumption and emissions of greenhouse gases from multifamily residential properties on or before January 1, 2030. The commission shall take into consideration the state’s requirements for reducing emissions of greenhouse gases in Section 38566 of the Health and Safety Code, and the climate equity, doubling of energy efficiency, and increased use of renewable energy resources requirements set forth in the Clean Energy and Pollution Reduction Act of 2015.
(2) The commission shall determine the targets based on the analysis and strategies identified by the stakeholder and expert advisory committee process pursuant to subdivision (b), as well as evaluations of studies of the full technical and economic potential for energy efficiency savings, and any limitations to achieving those full technical and potential savings, that incorporate consideration of multifamily residential properties and low-income multifamily properties.
(3) The commission shall also undertake an independent study to augment existing knowledge to make a full assessment of the available statewide energy savings potential in multifamily and low-income multifamily properties that are not restricted by existing program savings or budgets, including types of improvements, costs, and the associated economic and noneconomic benefits to the extent identifiable, for incorporation in the targets set pursuant to Section 25310. The independent study may include the categorization of savings by building type, energy use, proportions of energy or water costs incurred by owners or occupants, improvement measures, costs and benefits, and occupant income levels and energy burdens.
(b) (1) The commission, as part of its ongoing comprehensive program to achieve greater energy efficiency savings in California’s existing residential and nonresidential building stock pursuant to Section 25943, shall consult with relevant entities, including, but not limited to, the Public Utilities Commission, the Department of Community Services and Development, the Department of Housing and Community Development, the California Alternative Energy and Advanced Transportation Financing Authority, the California Tax Credit Allocation Committee, electrical corporations, gas corporations, local publicly owned electrical utilities, water utilities, the advisory committee established pursuant to paragraph (4), (5), and the public, to do all of the following:
(A) By May 1, 2019, January 1, 2020, develop statewide strategies and recommendations to better leverage existing and new programs and funding resources to accelerate integrated distributed energy resource, water, and health and safety improvement programs available to multifamily residential properties and low-income multifamily properties to achieve the state’s requirements for reducing emissions of greenhouse gases in Section 38566 of the Health and Safety Code and the climate equity, doubling of energy efficiency, and increased use of renewable energy resources requirements of the Clean Energy and Pollution Reduction Act of 2015 (Chapter 547 of the Statutes of 2015).
(B) By May 1, 2019, January 1, 2020, identify best practices from model programs, funding mechanisms, and workforce development strategies. strategies, and a recommended action plan to incorporate relevant approaches in California. It is the intent of the Legislature that the action plan include the following elements:
(i) The scope of the improvements targeted.
(ii) Key program implementation elements required for effective programs, such as a one-stop or single source of all relevant information, a uniform income eligibility definition, a common intake form, and technical and project development assistance.
(iii) The ideal administrators and lead agency.
(iv) Funding sources or recommendations for pooled funding, for example, from electrical corporations, local publicly owned electric utilities, gas corporations, water corporations, a unit of local government that provides gas or water service, moneys deposited in the Greenhouse Gas Reduction Fund, and housing and safety improvement funds.
(v) Financing or other cost-sharing mechanisms to be considered.
(vi) Building lifecycle considerations, including at times of refinancing, renovation, occupancy, and equipment replacement.
(vii) Implementation priorities or criteria for development, such as best value for expenditure, energy or health burden, and pilot projects.
(viii) Suggested targets and timelines for achieving each target.
(ix) A recommendation on the value of conducting one or more pilot programs in public utility, as defined in Section 216 of the Public Utilities Code, and publicly owned utility service territories, or a pilot program jointly undertaken by a public utility and a publicly owned utility within their overlapping service territory.
(C) By January 1, 2020, identify and implement ways to enhance the Energy Upgrade California Web site, or other appropriate statewide Web sites, to create a statewide Web site subcomponent for owners of multifamily residential properties and for residents of multifamily residential properties, that identifies applicable distributed energy resource and water programs and points of contact. The Web site shall incorporate multilingual versions and an integrated distributed energy resource and water intake form.
(2) By January 1, 2019, the commission, the Department of Housing and Community Development, the Public Utilities Commission, the State Water Resources Control Board, the Department of Community Services and Development, and other relevant entities shall develop strategies for standardized income eligibility verification processes for distributed energy resources and water programs. The commission shall include the strategies and progress made in implementing them in its report to the Legislature pursuant to paragraph (3). (4), as well as recommendations for any adjustments to income eligibility provisions that could facilitate better program alignment.
(3) By January 1, 2020, the Department of Housing and Community Development shall coordinate with the commission, the Public Utilities Commission, and the Department of Community Services and Development to evaluate and develop legal, regulatory, contractual, or other enforcement provisions and monitoring requirements that may be necessary to ensure that property improvement projects that include program-funded energy improvements do not result in long-term tenant relocations or displacements, and that identified strategies and recommendations from program-funded energy improvements provide net financial benefits, inclusive of rent, utility costs, and health benefits, to tenants in low-income multifamily properties. Information necessary to determine compliance and enable tenants to undertake enforcement actions shall be made available to the public.

(3)

(4) (A) The commission, by January 1, 2019, and in consultation with the advisory committee established pursuant to paragraph (4), (5), shall report to the Legislature on the strategies developed pursuant to this subdivision along with any recommendations for legislative action that may need to be taken to implement those strategies.
(B) The report to be submitted pursuant to this paragraph shall be submitted in compliance with Section 9795 of the Government Code.
(C) The requirement for submitting a report pursuant to this paragraph is inoperative on January 1, 2023, pursuant to Section 10231.5 of the Government Code.

(4)

(5) The commission shall establish an expert advisory committee of at least nine representatives from the following backgrounds:
(A) Clean energy finance.
(B) Information technology.
(C) Engineers, architects, or other professionals with knowledge and expertise in building construction or design.
(D) Owners of small and large multifamily residential properties.
(E) Environmental justice and energy policy experts.
(F) Tenant organizations and affordable housing policy experts.
(G) Units of local government.
(H) Other policy and marketplace actors with expertise needed to design and implement effective financial, housing, and related energy service programs for multifamily customers.

(5)

(6) The commission shall consult and collaborate with other advisory groups established as part of California’s comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock pursuant to Section 25943, to ensure coordination and minimize duplication.
(c) The commission shall perform analysis to support a compliance and performance-based pathway, including software, specific to multifamily residential properties in time for the 2022 update to the building energy efficiency standards for multifamily residential properties, pursuant to Sections 25402 and 25488.5 of the Public Resources Code.

(c)

(d) Nothing in this section affects the income eligibility requirements of individual programs.