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

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Date Published: 04/19/2017 09:00 PM
AB1088:v97#DOCUMENT

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 to set statewide performance-based goals to reduce energy consumption, source energy demand, Commission, by January 1, 2020, and in consultation with relevant state agencies and the public, to establish nonbinding statewide goals for reducing energy consumption and emissions of greenhouse gases from the multifamily residential properties, 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, by July 15, 2019, in consultation with relevant state agencies and the public, to adopt regulations to set the performance-based goals, as specified. The bill would require the Energy Commission, in coordination with its ongoing comprehensive program to achieve greater energy savings in California’s existing residential and nonresidential building stock, to consult with relevant state entities, including the PUC, the Department of Community Services and Development, the Department of Housing and Community Development, and the California Tax Credit Allocation Committee, an expert advisory committee, as specified, established by the Energy Commission, and the public, to develop and adopt statewide strategies and guidance for integrated distributed energy resource and water programs for multifamily properties and to identify model programs, financing mechanisms, rent stabilization agreements, tenant protection provisions, and policy recommendations to meet the statewide performance-based goals established pursuant to the bill’s requirements for all multifamily residential property types. to achieve state goals for significant reductions in energy usage and emissions of greenhouse gases for multifamily residential properties and low-income multifamily properties commensurate with 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. The bill would require the Energy Commission Commission, in consultation with the expert advisory committee, to report to the Legislature, by January 7, 1, 2019, on the strategies and guidance 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 to adopt regulations to streamline and coordinate enrollment in distributed energy resource, water, and fuel substitution programs for multifamily residential properties, as specified. The bill would require the Energy Commission, the PUC, the Department of Community Services and Development, the Department of Water Resources, and other relevant state and local governmental entities, by January 1, 2019, to mutually qualify low-income multifamily properties for state and local low-income distributed energy resource and water programs if the property meets certain requirements.
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 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.

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 where greater than 60 percent of the units are occupied by households with incomes at or below 80 percent of area median income or any multifamily residential property where greater than 60 percent of units are occupied by customers 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 permanent rental units 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)“Source energy usage” or “source energy demand” means the total amount of raw fuel that is required to operate a building and incorporates all transmission, delivery, and production losses.

(i)“Unit of local government” has the same meaning as defined in Section 25411.

25641.
 (a) The commission shall set statewide performance-based goals to reduce energy consumption, source energy demand, (1) The commission, by January 1, 2020, and in consultation with relevant state agencies and the public, shall establish nonbinding statewide goals for reducing energy consumption and emissions of greenhouse gases from multifamily residential properties, properties by January 1, 2030, taking 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 (Chapter 547 of the Statutes of 2015).
(2) The commission shall determine the goals based on strategies identified by the stakeholder and expert advisory committee process in subdivisions (b) and (c).
(3) The goals shall not result in the creation of any stand-alone requirements or mandates on property owners.

(b)The commission, in consultation with relevant state agencies and the public, shall adopt regulations by July 15, 2019, to set the performance-based goals required by subdivision (a) and that do all of the following:

(1)Establish a goal to reduce the total source energy usage of multifamily properties by at least 30 percent by 2030, as compared to 2017 energy usage, using a source energy methodology, to be determined by the commission, that takes into account the increasing amount of electricity on California’s grid generated by eligible renewable energy resources, with an interim 2025 source energy usage goal for multifamily residential properties using the same methodology.

(2)Establish a goal to reduce emissions of greenhouse gases attributable to multifamily residential properties by at least 40 percent by 2030, as compared to 2017 emissions of greenhouse gases, with an interim 2025 goal for reducing emissions of greenhouse gases for multifamily residential properties.

(3)If after completing the stakeholder process described in subdivision (d) the commission finds the goals established pursuant to paragraphs (1) and (2) are not technically or economically feasible, the commission may elect to adopt less demanding goals.

(4)Not less than one-half of the performance based goals for reducing energy consumption and reducing emissions of greenhouse gases established pursuant to paragraphs (1) and (2) shall be applied to low-income multifamily properties.

(5)If the commission determines it is appropriate, establish additional statewide goals for the deployment of demand management measures, the reduction of energy peak loads, the reduction of water usage, and the expansion of plug-in electric vehicle charging infrastructure at multifamily residential property locations.

(c)The statewide performance-based goals established pursuant to subdivision (b) may be achieved through energy consumption and demand reductions resulting from a variety of programs that include, but are not limited to, all of the following:

(1)A comprehensive program to achieve greater energy efficiency savings in California’s existing residential and nonresidential building stock pursuant to Section 25943.

(2)Programs funded by the Greenhouse Gas Reduction Fund established pursuant to Section 16428.8 of the Government Code, including, but not limited to, the Energy Efficiency Low-Income Weatherization Program established pursuant to Section 12087.5 of the Government Code and the Affordable Housing and Sustainable Communities Program established pursuant to Part 1 (commencing with Section 75200) of Division 44.

(3)Programs of electrical corporations, community choice aggregators, gas corporations, or third-party administrators, that provide financial incentives, rebates, technical assistance, and support to their customers to increase energy efficiency and use of distributed energy resources, authorized by the Public Utilities Commission.

(4)Programs of a unit of local government, including a local publicly owned electric utility, that provide financial incentives, rebates, technical assistance, and support to their residents to increase energy efficiency and distributed energy resources.

(5)Programs of electrical corporations, gas corporations, community choice aggregators, or local publicly owned electric utilities or other unit of local government that achieve energy efficiency savings through operational, behavioral, and retrocommissioning activities.

(6)Projects financed through the Property Assessed Clean Energy Program or Clean Energy Upgrade Program pursuant to Chapter 4 (commencing with Section 26050) of Division 16.

(7)Projects financed through tax credit allocations by the California Tax Credit Allocation Committee as part of the low-income housing tax credit program pursuant to Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code.

(8)Projects financed through a federal Low-Income Home Energy Assistance Program Block Grant funded by the United States Department of Health and Human Services or financed through the United States Department of Energy’s Weatherization Assistance Program, overseen by the Department of Community Services and Development.

(d)

(b) (1) The commission, in coordination with 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 state entities including, but not limited to, the Public Utilities Commission, the Department of Community Services and Development, the Department of Housing and Community Development, and the California Tax Credit Allocation Committee, the expert advisory committee established pursuant to subdivision (e), (c), and the public, to develop and adopt statewide strategies and guidance statewide strategies for integrated distributed energy resource and water programs for multifamily properties and to identify model programs, financing mechanisms, rent stabilization agreements, tenant protection provisions, and policy recommendations to meet the statewide performance-based goals established pursuant to subdivision (b) for all multifamily residential property types. By January 7, 2019, the commission to achieve state goals for significant reductions in energy usage and emissions of greenhouse gases for multifamily residential properties and low-income multifamily properties commensurate with 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). The commission, by January 1, 2019, and in consultation with the advisory committee established pursuant to subdivision (c), shall report to the Legislature on the strategies and guidance developed pursuant to this subdivision along with any recommendations for legislative action that may need to be taken to implement those strategies.
(2) The report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(3) The requirement for submitting a report pursuant to this subdivision is inoperative on January 7, 1, 2023, pursuant to Section 10231.5 of the Government Code Code.

(e)

(c) The commission shall establish an expert advisory committee of at least nine representatives from the following backgrounds:
(1) Clean energy finance.
(2) Information technology.
(3) Engineers, architects, or other professionals with knowledge and expertise in building construction or design.

(4)Nonprofit and not-for-profit multifamily residential property owners.

(4) Owners of small and large multifamily residential properties.
(5) Environmental justice, social justice, housing, and environmental policy experts.
(6) Other policy and marketplace actors with expertise needed to design and implement effective financial, housing, and related energy service programs for multifamily customers.

(f)

(d) The commission shall adopt regulations to streamline and coordinate enrollment in distributed energy resource, water, and fuel substitution programs for multifamily residential properties, as follows:
(1) The commission, in coordination with the Public Utilities Commission, the Department of Community Services and Development, state and local water agencies, and other relevant stakeholders, shall oversee the creation of a statewide online program intake portal Internet Web site for multifamily residential property customers, that incorporates owners and residents to identify applicable programs and points of contact. The Internet Web site shall incorporate an integrated distributed energy resource and water program application. The online program intake portal shall be made available in at least the three most commonly used languages in California.
(2) The commission, in coordination with the Public Utilities Commission, the Department of Community Services and Development, state and local water agencies, and other relevant stakeholders, shall issue guidelines for program administrators to facilitate shared funding, common program metrics, and shared program data across existing distributed energy resource and water programs for multifamily residential programs. The guidelines shall also provide guidance to program administrators to enable consistent income eligibility determination across programs where it comports with a program’s individual statutory requirements and subject to participant permission.

(g)By January 1, 2019, the commission, the Public Utilities Commission, the Department of Community Services and Development, the Department of Water Resources, and other relevant state and local governmental entities shall mutually qualify low-income multifamily properties for state and local low-income distributed energy resource and water programs if the property is any of the following:

(1)If the low-income multifamily property is subject to a regulatory agreement or affordability covenant.

(2)If the low-income multifamily property participates in a federal multifamily housing program regulated by the United States Department of Housing and Urban Development, the United States Department of Agriculture, or the Internal Revenue Service.

(3)The property owner provides documentation that a minimum of 60 percent of the residents residing at the property meet either or both of the following requirements:

(A)Have household incomes that do not exceed the greater of: 200 percent of the federal poverty level based on household size or 80 percent of the area median income for the county in which the property is located.

(B)Have rents established at less than 30 percent of the income level, established by computing 80 percent of the area median income level or 80 percent of the state median income level, whichever is higher, for the relevant household size. For this purpose, “relevant household size” means the number of bedrooms in the unit, plus one.

(h)

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