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

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Date Published: 05/02/2017 09:00 PM
AB1088:v96#DOCUMENT

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 goals 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, 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, public. The bill would require, pursuant to that consultation, the Energy Commission to develop 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 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, 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 to adopt regulations develop strategies to streamline and coordinate enrollment in distributed energy resource, water, and fuel substitution programs for multifamily residential properties, as specified.
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 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.

25641.
 (a) (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 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) (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 advisory committee established pursuant to subdivision (c), and the public, to develop 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 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 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 1, 2023, pursuant to Section 10231.5 of the Government Code.
(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) 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.
(d) The commission shall adopt regulations develop strategies 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 Internet Web site for multifamily residential property 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. The Internet Web site shall leverage existing portals such as the Internet Web site for the Energy Upgrade California program.
(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 develop strategies 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 strategies shall include provisions for 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.
(e) Nothing in this section affects the income eligibility requirements of individual programs.