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 Californias 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 states 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 Californias 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 states 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.

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 Californias 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 states 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 Californias existing residential and nonresidential building stock, to consult with relevant entities, including the PUC, 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, including, among others, an expert advisory committee established by the Energy Commission pursuant to the bill, and the public. bill. The bill would, pursuant to that consultation, require the Energy Commission to do all of the following: (1) by May 1, 2019, 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 states 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, identify best practices from model programs, funding mechanisms, and workforce development strategies, 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 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 Californias 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 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 states 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 as part of its ongoing comprehensive program to achieve greater energy savings in Californias 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 Alternative Energy and Advanced Transportation Financing Authority, the California Tax Credit Allocation Committee, electrical corporations, gas corporations, local publicly owned electrical utilities, water utilities, an expert advisory committee, as specified, committee established by the Energy Commission, Commission pursuant to the bill, and the public. The bill would require, would, pursuant to that consultation, require the Energy Commission to develop statewide strategies for integrated distributed energy resource and water programs for multifamily properties and 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 to do all of the following: (1) by May 1, 2019, 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 states 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. 2015, (2) by May 1, 2019, identify best practices from model programs, funding mechanisms, and workforce development strategies, 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 to develop strategies to streamline and coordinate enrollment in distributed energy resource, water, and fuel substitution programs for multifamily residential properties, as specified. 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 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 Californias 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 states 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 Californias 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 states 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.

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 Californias 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 states 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 Californias 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 bills 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 states 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.

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, 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 Californias existing residential and nonresidential building stock.

The California Renewables Portfolio Standard Program requires the Public Utilities Commission 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 a statewide goal by 2030 to scale upgrades and reduce energy burdens for the multiunit residential market, statewide performance-based goals to reduce energy consumption, source energy demand, and emissions of greenhouse gases from the multifamily residential properties, taking into consideration the states requirements for reducing emissions of greenhouse gases in disadvantaged communities 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 to set common program eligibility definitions across, and adopt regulations to enable access to combined program funding for, housing, health, water, energy efficiency, zero- and near-zero emission vehicle infrastructure, renewable energy resources, and resiliency programs for multiunit residential properties. The bill would require the Energy Commission to report to the Legislature by January 1, 2019, on the extent to which renters and owners of low-income multiunit residential properties have sufficient technical and financial support to participate in existing programs and complete upgrades. 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 Californias 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 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 bills requirements for all multifamily residential property types. The bill would require the Energy Commission to report to the Legislature, by January 7, 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.

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, 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.

The California Renewables Portfolio Standard Program requires the Public Utilities Commission 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 a statewide goal by 2030 to scale upgrades and reduce energy burdens for the multiunit residential market, taking into consideration the states requirements for reducing emissions of greenhouse gases in disadvantaged communities 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 to set common program eligibility definitions across, and adopt regulations to enable access to combined program funding for, housing, health, water, energy efficiency, zero- and near-zero emission vehicle infrastructure, renewable energy resources, and resiliency programs for multiunit residential properties. The bill would require the Energy Commission to report to the Legislature by January 1, 2019, on the extent to which renters and owners of low-income multiunit residential properties have sufficient technical and financial support to participate in existing programs and complete upgrades.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 1088 (Eggman) - Multifamily residential housing: energy programs

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 1088 seeks to increase access to various existing distributed energy resource and water programs, to the benefit of multifamily residential properties and their residents, especially low-income residents of such properties.

Fiscal Impact:

• Approximately $3.23 million (Cost of Implementation Fund) to the California Energy Commission (CEC).
• Approximately $500,000 (Cost of Implementation Fund or General Fund) to the Department of Housing and Community Development (HCD).
• Likely minor costs to the California Public Utilities Commission (CPUC), the Department of Community Services and Development (CSD), the HCD, the California Alternative Energy and Advanced Transportation Financing Authority (CAEAFTA), the California Tax Credit Allocation Committee (CTAC).

Background:

Despite State Efforts, Multifamily Residential Buildings Face Barriers to Clean Energy. California has established ambitious clean energy goals. Notable among goals:

• Reducing statewide GHG emissions to at least 40 percent below the statewide GHG emissions limit no later than December 31, 2030.
• Requiring retail sellers and publicly owned utilities to procure 50 percent of their electricity from eligible renewable energy resources by 2030.
• Achieve a statewide, cumulative doubling of energy efficiency savings in electricity and natural gas final end uses by 2030.

In keeping with these ambitious goals, the state has numerous programs to encourage energy efficiency or the generation of renewable energy on the customer side of the electric meter. Many of these programs focus on providing assistance to low-income households and are administered by several different state agencies. Collectively, the programs expend over $1.5 billion annually.

SB 350 (De León, Chapter 547, Statutes of 2015) established the latest iteration of the state’s renewable procurement requirement, as described above, and the goal of achieving a doubling of energy efficiency savings by 2030. In addition, SB 350 directed the CEC to develop and publish a study on barriers for low-income customers to energy efficiency and weatherization investments, including those in disadvantaged communities, as well as recommendations on how to increase access to energy efficiency and weatherization investments to low-income customers.

In keeping with the requirements of SB 350, on December 16 of last year, the CEC released its barriers study, which it fittingly titled SB 350 Low-Income Barriers Study, Part A - Commission Final Report. The CEC report identified a number of barriers that generally limit low-income Californians’ access to energy efficiency and renewable energy. Those general barriers include:

• Low home ownership rates.
• Complex needs, ownership, and financial arrangements for low-income multifamily housing.
• Insufficient access to capital.
• Building age.
• Remote or underserved communities.
  

More specifically, the CEC identified a barrier—split incentives—“unique” to renters and especially vexing to low-income renters in multifamily housing. According to the CEC:

Most low-income Californians are renters. Ensuring low-income renters and property owners participate and benefit from energy upgrades poses a unique barrier commonly referred to as split incentives. The issue is particularly acute among the low-income multifamily housing sector, as low-income Californians are 39 percent more likely to live in multifamily housing than the general population. The split incentive has long vexed program administrators seeking to increase access to energy upgrade options for low-income residents.

In addition, the CEC identified a number of “policy and program barriers” that limit low-income customers’ access to clean energy. The CEC report describes those policy and program barriers as follows:

• Market delivery. Effective market delivery can be hampered by differing definitions of low-income or disadvantaged communities, insufficient or poorly calibrated outreach and delivery, high transaction costs imposed on low-income residents with limited time and resources, and slow rebate disbursals. For multifamily building owners, a lack of information about whole-building energy usage and energy upgrade potential and lack of program coordination across multiple services can contribute to limited participation.
• Program integration. Barriers to program integration, collaboration, and leveraging limit opportunities to streamline services and lock complementary funding sources into silos. Rate-setting and regulatory challenges can create uncertainty and new possibilities. Insecure, inadequate, or inequitable program funding can limit the transformative effect of low-income programs.
• Data limitations. Data limitations impede innovative and adaptive approaches to reaching low-income residents and stymie collaborative efforts.
• Unrecognized non-energy benefits. Non-energy benefits are often not considered in cost-effectiveness tests, which devalues some of the most important factors that motivate investment in clean energy upgrades, such as family health and safety, comfort, and tenant retention.

In response to these findings, the CEC report makes several recommendations, the more relevant of which, for purposes of this analysis, are:

• Establish a task force to…develop a comprehensive action plan on improving opportunities for energy efficiency, renewable energy, demand response, energy storage, and electric vehicle infrastructure for multifamily housing, with attention to pilot programs for multifamily rental properties in low-income and disadvantaged communities.
• Require collaboration among all program delivery agencies to establish common metrics and collect and use data systematically across programs to increase the performance of these programs in low-income and disadvantaged communities.

This bill seeks to require CEC and other stakeholders to take a number of actions specific to multifamily residential buildings and consistent with CEC’s recommendations in order to better ensure low-income Californians benefit from the state’s clean energy policies. Specifically, this bill requires the CEC to:

• Establish an expert advisory committee. Requires the CEC to establish an “expert advisory committee” of at least nine members to assist the CEC in identifying statewide strategies.
• Develop statewide strategies for multifamily properties: Requires the CEC to consult with relevant state entities and the public to (a) develop statewide strategies for integrated distributed energy resource and water programs for multifamily properties and (b) identify model programs, practices and policy recommendations, which CEC is to report to the Legislature, along with any recommendations, by January 1, 2019.
• Establish nonbinding energy consumption and GHG reduction goals. Directs the CEC, by January 1, 2020, in consultation with relevant state agencies and the public, to establish nonbinding statewide goals, based on the strategies CEC identifies via the process described in the preceding paragraph, for reducing energy consumption by and GHG emissions from multifamily residential properties.
• Streamline and coordinate administration. Requires the CEC to develop strategies to streamline and coordinate enrollment in distributed energy resource, water and fuel substitution programs for multifamily residential properties by (a) overseeing the creation of a website for owners and residents of multifamily residential properties to identify applicable programs and points of contact, and (b) develop strategies for program administrators to facilitate shared funding, common program metrics, and shared program data across existing programs for multifamily buildings, including enabling consistent income eligibility determination across programs.

Developing strategies, setting goals and streamlining and coordinating administration. There is nothing inappropriate in the actions this bill requires. The author’s goal is to ensure low-income Californians share in the benefits of California’s clean energy programs, broadly defined. As CEC notes, the work required by this bill could compliment the CEC’s existing efforts.

The author focuses on multifamily housing as a proxy for reaching this population, accurately noting, according the CEC report, that most low-income Californians are renters and the longstanding difficulty of deploying clean energy program benefits in multifamily housing. While the CEC report catalogued barriers to deploying clean energy program benefits in multifamily buildings, it did not discover those barriers. For the most part, they are well known. This is particularly true of the “split incentive,” which the CEC report describes as:

Situations in which the property owner declines to participate in a program because the owner will not reap the energy benefit, or financial benefits of an energy upgrade program fail to accrue to the low-income renter.

As the CEC report says, the split incentive has “long vexed” program administrators. It might be that the collaboration, goal setting and other tasks required by this bill help to crack these tough nuts. Whether the potential benefit is worth the considerable effort required by this bill, however, is a question best considered by another legislative committee.

Proposed Law:

This bill seeks to increase access to various existing distributed energy resource and water programs, to the benefit of multifamily residential properties and their residents, especially low-income residents of such properties. Specifically, this bill requires the CEC to:

1. Establish nonbinding statewide targets, by January 1, 2020, that are cost-effective to ratepayers to reduce greenhouse gasses from multifamily residential properties.
2. Convene the Department of Housing and Community Development (HCD), the Department of Community Services and Development (CSD), other specified public entities, electric and water utilities, and an advisory committee comprised of specified membership to develop, by May 1, 2019, statewide strategies and recommendations to better leverage existing and new programs and funding sources to accelerate integrated distributed energy resource, water, and health and safety improvement programs to multifamily residential properties and low-income multifamily properties. Best practices shall also be identified.
3. Develop strategies, along with HCD, CSD, and other public entities, by January 1, 2019, for standardized income eligibility verification process for distributed energy resources and water programs.
4. Report the strategies developed above, along with any recommendations for legislative action, by January 1, 2019.

Staff Comments:

Purpose. The author is concerned that California’s energy efficiency and renewable energy efforts have fallen short for low-income residents and for those living in multifamily housing. This bill seeks to simplify access to existing programs by developing recommendations to integrate, harmonize, and streamline those programs.

No Help for Renters. California’s longstanding and generally successful energy efficiency efforts have been less successful with multifamily rental housing. California’s building code ensures that new multifamily housing is energy efficient. But retrofitting existing multifamily housing, by, say, replacing leaky single pane windows with energy efficient double-pane windows or adding building insulation, hasn’t been occurring because the entity paying for the energy efficiency measure, the building owner, doesn’t pay the energy bill, and therefore does not benefit when the energy bill is reduced. Similarly, why should the building owner replace older appliances with energy efficient newer appliances? Looked at from the other direction, why would a tenant invest in an energy efficient refrigerator when the landlord is responsible for supplying the appliance. This is known as a “split incentive”.

The CEC has analyzed the problem of encouraging energy efficiency in rental housing. They note that most low-income Californians are renters, and that the split incentives are a significant barrier. They also note that low-income multifamily housing “faces unique barriers, such as diverse building characteristics and needs, complex ownership and financial arrangements, and limited budgets with restricted opportunities to take on additional debt.”

This bill convenes a large group of public entities, energy and water utilities, and stakeholders to develop recommendations for overcoming the split incentives and to establish goals which will be reported to the Legislature, along with any recommendations for legislative action.

Harmony. California has many programs to encourage energy efficiency and the use of renewable energy. Those programs are administered by multiple entities, including the CPUC, the CEC, HCD, and the various publicly-owned energy and water utilities. There may be economies and efficiencies in the integration of these different programs, including how the programs are administered and the qualifications for each. The stakeholder group convened by this bill, which includes tenant organizations and low-income housing experts, will consider ways to accomplish this.

Low Income Focus. This bill considers all multifamily buildings, with an emphasis on low income multifamily buildings. The definition of low-income housing used in the bill will be unfamiliar to housing agencies, which could lead to unnecessary confusion.

CEC Fiscal. The CEC estimates that implementation of this bill will cost $3.23 million ($1 million for contracts in each years 1 and 2, $330, 000 for monitoring requirements in year 3, and $300, 000 per year for three years (a total of $900,000) for two permanent personnel to develop and negotiate the new energy efficiency strategies. The CEC indicates that the Cost of Implementation Fund is an appropriate funding source because the bill implements recommendations included in the SB 350 Low-Income Barriers Study.

Staff notes that the bill does not provide a funding source for implementation costs. The Energy Commission’s primary operating account, the Energy Resources Program Account, is currently in a structural deficit and cannot absorb additional costs. As such, to the extent that implementation activities are not covered by the COI (or other fund identified), this bill will result in pressures on the General Fund.

-- END --

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2017 - 2018 Regular

Bill No: Hearing Date: 7/11/2017

SUBJECT:

DIGEST: This bill seeks to increase access to various existing distributed energy resource and water programs, to the benefit of multifamily residential properties and their residents, especially low-income residents of such properties.

ANALYSIS:

Existing law:

1. Directs the California Energy Commission (CEC) to implement a comprehensive program to achieve energy savings in California’s existing residential and nonresidential building stock.
2. Directs the CEC to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including the energy associated with the use of water, through the several actions, including regulation of lighting, insulation climate control system, and other building design and construction standards that increase the efficiency in the use of energy and water for new residential and new nonresidential buildings.
3. Directs the CEC, in collaboration with the California Public Utilities Commission (CPUC) and stakeholders, 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.
4. Requires the CEC to study and report to the Legislature the barriers low-income communities face in accessing renewable energy, energy efficiency, weatherization, and zero-emission transportation options.

This bill seeks to increase access to various existing distributed energy resource and water programs, to the benefit of multifamily residential properties and their residents, especially low-income residents of such properties. Specifically, this bill requires the CEC to:

1. Establish nonbinding statewide targets, by January 1, 2020, that are cost-effective to ratepayers to reduce greenhouse gasses from multifamily residential properties.
2. Convene the Department of Housing and Community Development (HCD), the Department of Community Services and Development (CSD), other specified public entities, electric and water utilities, and an advisory committee comprised of specified membership to develop, by May 1, 2019, statewide strategies and recommendations to better leverage existing and new programs and funding sources to accelerate integrated distributed energy resource, water, and health and safety improvement programs to multifamily residential properties and low-income multifamily properties. Best practices shall also be identified.
3. Develop strategies, along with HCD, CSD, and other public entities, by January 1, 2019, for standardized income eligibility verification process for distributed energy resources and water programs.
4. Report the strategies developed above, along with any recommendations for legislative action, by January 1, 2019.

COMMENTS:

1. Purpose. The author is concerned that California’s energy efficiency and renewable energy efforts have fallen short for low-income residents and for those living in multifamily housing. This bill seeks to simplify access to existing programs by developing recommendations to integrate, harmonize, and streamline those programs.
2. No Help for Renters. California’s longstanding and generally successful energy efficiency efforts have been less successful with multifamily rental housing. California’s building code ensures that new multifamily housing is energy efficient. But retrofitting existing multifamily housing, by, say, replacing leaky single pane windows with energy efficient double-pane windows or adding building insulation, hasn’t been occurring because the entity paying for the energy efficiency measure, the building owner, doesn’t pay the energy bill, and therefore does not benefit when the energy bill is reduced. Similarly, why should the building owner replace older appliances with energy efficient newer appliances? Looked at from the other direction, why would a tenant invest in an energy efficient refrigerator when the landlord is responsible for supplying the appliance. This is known as a “split incentive”.

The CEC has analyzed the problem of encouraging energy efficiency in rental housing.^[1] They note that most low-income Californians are renters, and that the split incentives are a significant barrier. They also note that low-income multifamily housing “faces unique barriers, such as diverse building characteristics and needs, complex ownership and financial arrangements, and limited budgets with restricted opportunities to take on additional debt.”

This bill convenes a large group of public entities, energy and water utilities, and stakeholders to develop recommendations for overcoming the split incentives and to establish goals which will be reported to the Legislature, along with any recommendations for legislative action.

1. Harmony. California has many programs to encourage energy efficiency and the use of renewable energy. Those programs are administered by multiple entities, including the CPUC, the CEC, HCD, and the various publicly-owned energy and water utilities. There may be economies and efficiencies in the integration of these different programs, including how the programs are administered and the qualifications for each. The stakeholder group convened by this bill, which includes tenant organizations and low-income housing experts, will consider ways to accomplish this.
2. Low Income Focus. This bill considers all multifamily buildings, with an emphasis on low income multifamily buildings. The definition of low-income housing used in the bill will be unfamiliar to housing agencies, which could lead to unnecessary confusion. The author and committee may wish to consider replacing that definition with the definition used for housing purposes contained in Section 50079.5 of the Health and Safety Code, which is 80% of area median income adjusted for family size.
3. Further Amendments Being Considered. The author is considering amendments to require the CEC to 1) perform additional original studies of energy efficiency potential if it finds that existing studies are inadequate, 2) develop an action plan for implementing its recommendations, and 3) conduct an analysis to consolidate all residential building code requirements.
4. Double referral. This bill was heard by the Senate Energy, Utilities and Communications Committee on July 3, 2017 and approved 9-0.

Related Legislation:

SB 350 (De Leon, Chapter 547, Statutes of 2015) — established the goal of receiving 50 of California’s electricity from eligible renewable energy resources and of doubling of energy efficiency and requires the CEC to study and report to the Legislature the barriers low-income communities face in accessing renewable energy, energy efficiency, weatherization, and zero-emission transportation options.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

POSITIONS: (Communicated to the committee before noon on Wednesday,

July 5, 2017.)

SUPPORT:

Association for Energy Affordability

Build It Green

California Housing Partnership

California Solar Energy Industries Association

Green & Healthy Homes Initiative

Greenlining Institute

Menlo Spark

National Housing Law Project

National Resources Defense Council

Peninsula Interfaith Climate Action

Rising Sun Energy Center

Sierra Club California

Sustainable Silicon Valley

U.S. Green Building Council

350 Silicon Valley

OPPOSITION:

None received.

-- END --

1. Low-Income Barriers Study, Part A: Overcoming Barriers to Energy Efficiency and Renewables for Low-Income Customers and Small Business Contracting Opportunities in Disadvantaged Communities; December 2016. CEC-3---2016-009-CMF ↑

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2017 - 2018 Regular

Bill No: AB 1088 Hearing Date: 7/11/2017

SUBJECT: Multifamily residential housing: energy programs

DIGEST: This bill seeks to increase access to various existing distributed energy resource and water programs, to the benefit of multifamily residential properties and their residents, especially low-income residents of such properties.

ANALYSIS:

Existing law:

1. Directs the California Energy Commission (CEC) to implement a comprehensive program to achieve energy savings in California’s existing residential and nonresidential building stock.
2. Directs the CEC to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including the energy associated with the use of water, through the several actions, including regulation of lighting, insulation climate control system, and other building design and construction standards that increase the efficiency in the use of energy and water for new residential and new nonresidential buildings.
3. Directs the CEC, in collaboration with the California Public Utilities Commission (CPUC) and stakeholders, 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.
4. Requires the CEC to study and report to the Legislature the barriers low-income communities face in accessing renewable energy, energy efficiency, weatherization, and zero-emission transportation options.

This bill seeks to increase access to various existing distributed energy resource and water programs, to the benefit of multifamily residential properties and their residents, especially low-income residents of such properties. Specifically, this bill requires the CEC to:

1. Establish nonbinding statewide targets, by January 1, 2020, that are cost-effective to ratepayers to reduce greenhouse gasses from multifamily residential properties.
2. Convene the Department of Housing and Community Development (HCD), the Department of Community Services and Development (CSD), other specified public entities, electric and water utilities, and an advisory committee comprised of specified membership to develop, by May 1, 2019, statewide strategies and recommendations to better leverage existing and new programs and funding sources to accelerate integrated distributed energy resource, water, and health and safety improvement programs to multifamily residential properties and low-income multifamily properties. Best practices shall also be identified.
3. Develop strategies, along with HCD, CSD, and other public entities, by January 1, 2019, for standardized income eligibility verification process for distributed energy resources and water programs.
4. Report the strategies developed above, along with any recommendations for legislative action, by January 1, 2019.

COMMENTS:

1. Purpose. The author is concerned that California’s energy efficiency and renewable energy efforts have fallen short for low-income residents and for those living in multifamily housing. This bill seeks to simplify access to existing programs by developing recommendations to integrate, harmonize, and streamline those programs.
2. No Help for Renters. California’s longstanding and generally successful energy efficiency efforts have been less successful with multifamily rental housing. California’s building code ensures that new multifamily housing is energy efficient. But retrofitting existing multifamily housing, by, say, replacing leaky single pane windows with energy efficient double-pane windows or adding building insulation, hasn’t been occurring because the entity paying for the energy efficiency measure, the building owner, doesn’t pay the energy bill, and therefore does not benefit when the energy bill is reduced. Similarly, why should the building owner replace older appliances with energy efficient newer appliances? Looked at from the other direction, why would a tenant invest in an energy efficient refrigerator when the landlord is responsible for supplying the appliance. This is known as a “split incentive”.

The CEC has analyzed the problem of encouraging energy efficiency in rental housing.^[1] They note that most low-income Californians are renters, and that the split incentives are a significant barrier. They also note that low-income multifamily housing “faces unique barriers, such as diverse building characteristics and needs, complex ownership and financial arrangements, and limited budgets with restricted opportunities to take on additional debt.”

This bill convenes a large group of public entities, energy and water utilities, and stakeholders to develop recommendations for overcoming the split incentives and to establish goals which will be reported to the Legislature, along with any recommendations for legislative action.

1. Harmony. California has many programs to encourage energy efficiency and the use of renewable energy. Those programs are administered by multiple entities, including the CPUC, the CEC, HCD, and the various publicly-owned energy and water utilities. There may be economies and efficiencies in the integration of these different programs, including how the programs are administered and the qualifications for each. The stakeholder group convened by this bill, which includes tenant organizations and low-income housing experts, will consider ways to accomplish this.
2. Low Income Focus. This bill considers all multifamily buildings, with an emphasis on low income multifamily buildings. The definition of low-income housing used in the bill will be unfamiliar to housing agencies, which could lead to unnecessary confusion. The author and committee may wish to consider replacing that definition with the definition used for housing purposes contained in Section 50079.5 of the Health and Safety Code, which is 80% of area median income adjusted for family size.
3. Further Amendments Being Considered. The author is considering amendments to require the CEC to 1) perform additional original studies of energy efficiency potential if it finds that existing studies are inadequate, 2) develop an action plan for implementing its recommendations, and 3) conduct an analysis to consolidate all residential building code requirements.
4. Double referral. This bill was heard by the Senate Energy, Utilities and Communications Committee on July 3, 2017 and approved 9-0.

Related Legislation:

SB 350 (De Leon, Chapter 547, Statutes of 2015) — established the goal of receiving 50 of California’s electricity from eligible renewable energy resources and of doubling of energy efficiency and requires the CEC to study and report to the Legislature the barriers low-income communities face in accessing renewable energy, energy efficiency, weatherization, and zero-emission transportation options.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

POSITIONS: (Communicated to the committee before noon on Wednesday,

July 5, 2017.)

SUPPORT:

Association for Energy Affordability

Build It Green

California Housing Partnership

California Solar Energy Industries Association

Green & Healthy Homes Initiative

Greenlining Institute

Menlo Spark

National Housing Law Project

National Resources Defense Council

Peninsula Interfaith Climate Action

Rising Sun Energy Center

Sierra Club California

Sustainable Silicon Valley

U.S. Green Building Council

350 Silicon Valley

OPPOSITION:

None received.

-- END --

1. Low-Income Barriers Study, Part A: Overcoming Barriers to Energy Efficiency and Renewables for Low-Income Customers and Small Business Contracting Opportunities in Disadvantaged Communities; December 2016. CEC-3---2016-009-CMF ↑

SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS

Senator Ben Hueso, Chair

2017 - 2018 Regular

Bill No: Hearing Date: 7/3/2017

SUBJECT:

DIGEST: This bill seeks to increase access to various existing distributed energy resource and water programs, to the benefit of multifamily residential properties and their residents, especially low-income residents of such properties.

ANALYSIS:

Existing law:

1. Requires each electric corporation, in procuring energy, to follow a “loading order,” whereby it meets demand for energy by first acquiring all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible. (Public Utilities Code §454.5)
2. Directs the California Energy Commission (CEC) to implement a comprehensive program to achieve energy savings in California’s existing residential and nonresidential building stock. (Public Resources Code §25943)
3. Directs the CEC to reduce the wasteful, uneconomic, inefficient, or unnecessary consumption of energy, including the energy associated with the use of water, through the several actions, including regulation of lighting, insulation climate control system, and other building design and construction standards that increase the efficiency in the use of energy and water for new residential and new nonresidential buildings. (Public Resources Code §25402)
4. Directs the CEC, in collaboration with the California Public Utilities Commission (CPUC) and stakeholders, 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. (Public Resources Code §25310)
5. Mandates the CPUC to require the investor-owned utilities (IOUs) to perform home weatherization services for low-income customers, with consideration given to cost-effectiveness and hardship reduction of the projects. (Public Utilities Code §2790)
6. Requires the CEC to study and report to the Legislature the barriers low-income communities face in accessing renewable energy, energy efficiency, weatherization, and zero-emission transportation options. (Public Resources Code §25327)

This bill:

1. Requires the CEC to consult with relevant state entities and the public to (a) develop statewide strategies for integrated distributed energy resource and water programs for multifamily properties and (b) identify model programs, practices and policy recommendations, which CEC is to report to the Legislature, along with any recommendations, by January 1, 2019.
2. Requires the CEC to establish an “expert advisory committee” of at least nine members to assist the CEC in identifying statewide strategies.
3. Directs the CEC, by January 1, 2020, in consultation with relevant state agencies and the public, to establish nonbinding statewide goals, based on the strategies CEC identifies via the process described in the preceding paragraph, for reducing energy consumption by and greenhouse gas (GHG) emissions from multifamily residential properties.
4. Requires the CEC to develop strategies to streamline and coordinate enrollment in distributed energy resource, water and fuel substitution programs for multifamily residential properties by (a) overseeing the creation of a website for owners and residents of multifamily residential properties to identify applicable programs and points of contact, and (b) develop strategies for program administrators to facilitate shared funding, common program metrics, and shared program data across existing programs for multifamily buildings, including enabling consistent income eligibility determination across programs.
5. Defines “distributed energy resource” as a variety of measures or technologies that can be used to provide value to the electrical grid and electric utility customers.
6. Defines a “low-income multifamily property” as 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.

Background

Despite State Efforts, Multifamily Residential Buildings Face Barriers to Clean Energy. California has established ambitious clean energy goals. Notable among goals:

• Reducing statewide GHG emissions to at least 40 percent below the statewide GHG emissions limit no later than December 31, 2030.
• Requiring retail sellers and publicly owned utilities to procure 50 percent of their electricity from eligible renewable energy resources by 2030.
• Achieve a statewide, cumulative doubling of energy efficiency savings in electricity and natural gas final end uses by 2030.

In keeping with these ambitious goals, the state has numerous programs to encourage energy efficiency or the generation of renewable energy on the customer side of the electric meter. Many of these programs focus on providing assistance to low-income households and are administered by several different state agencies. Collectively, the programs expend over $1.5 billion annually.^[1]

SB 350 (De León, Chapter 547, Statutes of 2015) established the latest iteration of the state’s renewable procurement requirement, as described above, and the goal of achieving a doubling of energy efficiency savings by 2030. In addition, SB 350 directed the CEC to develop and publish a study on barriers for low-income customers to energy efficiency and weatherization investments, including those in disadvantaged communities, as well as recommendations on how to increase access to energy efficiency and weatherization investments to low-income customers.

In keeping with the requirements of SB 350, on December 16 of last year, the CEC released its barriers study, which it fittingly titled SB 350 Low-Income Barriers Study, Part A - Commission Final Report. The CEC report identified a number of barriers that generally limit low-income Californians’ access to energy efficiency and renewable energy. Those general barriers include:

• Low home ownership rates.
• Complex needs, ownership, and financial arrangements for low-income multifamily housing.
• Insufficient access to capital.
• Building age.
• Remote or underserved communities.
  

More specifically, the CEC identified a barrier—split incentives—“unique” to renters and especially vexing to low-income renters in multifamily housing. According to the CEC:

Most low-income Californians are renters. Ensuring low-income renters and property owners participate and benefit from energy upgrades poses a unique barrier commonly referred to as split incentives. The issue is particularly acute among the low-income multifamily housing sector, as low-income Californians are 39 percent more likely to live in multifamily housing than the general population. The split incentive has long vexed program administrators seeking to increase access to energy upgrade options for low-income residents.

In addition, the CEC identified a number of “policy and program barriers” that limit low-income customers’ access to clean energy. The CEC report describes those policy and program barriers as follows:

• Market delivery. Effective market delivery can be hampered by differing definitions of low-income or disadvantaged communities, insufficient or poorly calibrated outreach and delivery, high transaction costs imposed on low-income residents with limited time and resources, and slow rebate disbursals. For multifamily building owners, a lack of information about whole-building energy usage and energy upgrade potential and lack of program coordination across multiple services can contribute to limited participation.
• Program integration. Barriers to program integration, collaboration, and leveraging limit opportunities to streamline services and lock complementary funding sources into silos. Rate-setting and regulatory challenges can create uncertainty and new possibilities. Insecure, inadequate, or inequitable program funding can limit the transformative effect of low-income programs.
• Data limitations. Data limitations impede innovative and adaptive approaches to reaching low-income residents and stymie collaborative efforts.
• Unrecognized non-energy benefits. Non-energy benefits are often not considered in cost-effectiveness tests, which devalues some of the most important factors that motivate investment in clean energy upgrades, such as family health and safety, comfort, and tenant retention.

In response to these findings, the CEC report makes several recommendations, the more relevant of which, for purposes of this analysis, are:

• Establish a task force to…develop a comprehensive action plan on improving opportunities for energy efficiency, renewable energy, demand response, energy storage, and electric vehicle infrastructure for multifamily housing, with attention to pilot programs for multifamily rental properties in low-income and disadvantaged communities.
• Require collaboration among all program delivery agencies to establish common metrics and collect and use data systematically across programs to increase the performance of these programs in low-income and disadvantaged communities.

This bill seeks to require CEC and other stakeholders to take a number of actions specific to multifamily residential buildings and consistent with CEC’s recommendations in order to better ensure low-income Californians benefit from the state’s clean energy policies. Specifically, this bill requires the CEC to:

• Establish an expert advisory committee. Requires the CEC to establish an “expert advisory committee” of at least nine members to assist the CEC in identifying statewide strategies.
• Develop statewide strategies for multifamily properties: Requires the CEC to consult with relevant state entities and the public to (a) develop statewide strategies for integrated distributed energy resource and water programs for multifamily properties and (b) identify model programs, practices and policy recommendations, which CEC is to report to the Legislature, along with any recommendations, by January 1, 2019.
• Establish nonbinding energy consumption and GHG reduction goals. Directs the CEC, by January 1, 2020, in consultation with relevant state agencies and the public, to establish nonbinding statewide goals, based on the strategies CEC identifies via the process described in the preceding paragraph, for reducing energy consumption by and GHG emissions from multifamily residential properties.
• Streamline and coordinate administration. Requires the CEC to develop strategies to streamline and coordinate enrollment in distributed energy resource, water and fuel substitution programs for multifamily residential properties by (a) overseeing the creation of a website for owners and residents of multifamily residential properties to identify applicable programs and points of contact, and (b) develop strategies for program administrators to facilitate shared funding, common program metrics, and shared program data across existing programs for multifamily buildings, including enabling consistent income eligibility determination across programs.

Developing strategies, setting goals and streamlining and coordinating administration. There is nothing inappropriate in the actions this bill requires. The author’s goal is to ensure low-income Californians share in the benefits of California’s clean energy programs, broadly defined. As CEC notes, the work required by this bill could compliment the CEC’s existing efforts.

The author focuses on multifamily housing as a proxy for reaching this population, accurately noting, according the CEC report, that most low-income Californians are renters and the longstanding difficulty of deploying clean energy program benefits in multifamily housing. While the CEC report catalogued barriers to deploying clean energy program benefits in multifamily buildings, it did not discover those barriers. For the most part, they are well known. This is particularly true of the “split incentive,” which the CEC report describes as:

Situations in which the property owner declines to participate in a program because the owner will not reap the energy benefit, or financial benefits of an energy upgrade program fail to accrue to the low-income renter.

As the CEC report says, the split incentive has “long vexed” program administrators. It might be that the collaboration, goal setting and other tasks required by this bill help to crack these tough nuts. Whether the potential benefit is worth the considerable effort required by this bill, however, is a question best considered by another legislative committee.

Despite its merits, the current version of this bill is, at times, meandering. The author has proposed amendments that attempt to focus this bill, both in its intent and in its implementation. The committee should consider amending this bill to reflect those proposed amendments, as modified by this analysis and shown at the end of this analysis.

Double Referral. Should this bill be approved by this committee, it will be re-referred to the Senate Committee on Transportation and Housing for its consideration.

Prior/Related Legislation

AB 758 (Skinner, Chapter 470, Statutes of 2009) required the CEC, in collaboration with the CPUC and stakeholders, to develop a comprehensive program to achieve greater energy efficiency in the state’s existing buildings.

SB 350 (De Leon, Chapter 547, Statutes of 2015) established the goal of receiving 50 of California’s electricity from eligible renewable energy resources and of doubling of energy efficiency and requires the CEC to study and report to the Legislature the barriers low-income communities face in accessing renewable energy, energy efficiency, weatherization, and zero-emission transportation options.

AB 1431 (Arambula, 2017) mandates the CEC to lead a working group addressing low-income and disadvantaged community energy programs and outreach, and mandates the CEC and other departments to develop standardized reporting requirements for the low-income energy programs in order to publish those data online. This bill passed the Assembly Committee on Utilities and Energy on a 12-1 vote and later held in the Assembly Committee on Appropriations.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

Natural Resources Defense Council (Source)

Association for Energy Affordability, Inc.

Build It Green

California Housing Partnership

California State Association of Electrical Workers

California State Pipe Trades Council

City of Santa Monica

Environmental Defense Fund

Green & Healthy Homes Initiative

Greenlining Institute

Menlo Spark

National Housing Law Project

Rising Sun Energy Center

U.S. Green Building Council

Western States Council of Sheet Metal Workers

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: According to the author:

AB 1088 will put California on a path to increase residential upgrades for multifamily properties, thereby ensuring low-income renters are not left behind by California’s clean energy investments. While California is leading the way on energy efficiency and renewable energy policies that reduce air pollution, create quality jobs, and provide energy choices for working families, the State is falling short on programs that serve multifamily dwellings.^[2] Existing clean energy and water programs vary widely across the state and are difficult to access, as documented by the Energy Commission’s SB 350 low-income barriers report.

Text of Proposed Amendments:

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 bill 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 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 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, the commission, by January 1, 2020, and in consultation with relevant state agencies and the public, shall establish nonbinding statewide goals targets that are cost-effective based on the cost to ratepayers and feasible for reducing energy consumption and emissions of greenhouse gases from multifamily residential properties by on or before January 1, 2030. taking 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 (Chapter 547 of the Statutes of 2015).

(2) The commission shall determine the goals targets based on the analysis and strategies identified by the stakeholder and expert advisory committee process pursuant to subdivision (b) and (c), 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 goals shall not result in the creation of any stand-alone requirements or mandates on property owners.

(b) (1) The commission, in coordination with 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 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, the California Alternative Energy and Advanced Transportation Financing Authority, and the California Tax Credit Allocation Committee, electrical corporations, gas corporations, local publicly owned utilities, water utilities, the advisory committee established pursuant to subdivision (c4), 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 to do the following:

(A) By May 1, 2019, 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 commensurate with 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).

(ii) By May 1, 2019, identify best practices from model programs, funding mechanisms and workforce development strategies.

(iii) By January 1, 2020, identify and implement ways to enhance the Energy Upgrade California website or other appropriate statewide websites 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 website 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 (3).

(3) (A) 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.

(B) The report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.

(C) 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) (4)(1)The commission shall establish an expert advisory committee of at least nine representatives from the following backgrounds:

(1)(A) Clean energy finance.

(2) (B) Information technology.

(3) (C) Engineers, architects, or other professionals with knowledge and expertise in building construction or design.

(4) (D) Owners of small and large multifamily residential properties.

(5) (F) Environmental justice, social justice, housing, and environmental and energy policy experts.

(G) Tenant organizations and affordable housing policy experts.

(H) Units of local government.

(J) Other policy and marketplace actors with expertise needed to design and implement effective financial, housing, and related energy service programs for multifamily customers.

(2)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.

(d) The commission shall 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 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 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.

-- END --

1. For a summary of the principal of these programs, please see page 18 of the CEC’s SB 350 Low-Income Barriers Study, Part A - Commission Final Report . ↑

2. “California’s Golden Energy Efficiency Opportunity: Ramping Up Success to Save Billions and Meet Climate Goals,” NRDC and Environmental Entrepreneurs, August 2015, p.14. See also Department of Energy, “2017 U.S. Energy and Employment Report” and E2 and E4TheFuture’s, “Energy Efficiency Jobs in America,” Dec. 2016. ↑

ASSEMBLY THIRD READING

ATR Bill Id:AB 1088

Author:(Eggman)

As Amended Ver:May 2, 2017

Majority vote

SUMMARY: Requires the California Energy Commission (CEC), to establish statewide goals for reducing energy consumption and greenhouse gas (GHG) emissions from multifamily residential properties. Specifically, this bill:

1. Requires CEC, by January 1, 2020, to establish statewide goals to reduce energy consumption and GHG emissions from multifamily residential properties (e.g., a property that has two or more permanent rental units) by January 1, 2030 based on strategies identified by an expert advisory committee.
2. Requires CEC to 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. Small and large multifamily residential property owners;
   5. Environmental justice, social justice, housing, and other environmental policy experts; and,
   6. Other policy and marketplace actors with expertise needed to design and implement effective financial, housing, and related energy service programs for multifamily customers.
3. Requires the CEC to develop statewide strategies for integrated distributed energy resource (DER) and water programs for multifamily properties and to identify model programs, financing mechanisms, rent stabilization agreements, tenant protection provisions, and policy recommendations in consultation with relevant state entities, the expert advisory committee, and the public.
4. Mandates the CEC, in consultation with the advisory committee, to report to the Legislature by January 1, 2019, the strategies and recommendations for achieving reductions in energy usage and GHG emissions in the multifamily housing sector.
5. Requires CEC to develop strategies to streamline and coordinate enrollment in the DER water, and fuel substitution programs for multifamily residential properties, as follows:
   1. Requires CEC, in coordination with the California Public Utilities Commission (PUC), the Department of Community Services and Development (CSD), state and local water agencies, and other relevant stakeholders, to oversee the creation of a statewide website for multifamily residential property customers that incorporates an integrated DER and water program application. The online program intake portal must be made available in at least the three most commonly used languages in California.
   2. Requires CEC, in coordination with the PUC, CSD, state and local water agencies, and other relevant stakeholders, to develop strategies to facilitate shared funding, common program metrics, and shared program data across existing programs, as specified.

FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill has:

1. Increased CEC costs of $2 million in annual contract costs and $1 million in annual administrative costs to carry out the requirements of the bill.
2. Unknown, likely absorbable costs for CSD.
3. Negligible PUC costs.

COMMENTS: California has a wide variety of energy efficiency requirements and programs for existing and new residential and commercial buildings. While many of these programs include multifamily eligibility, multifamily properties receive a small percentage of the total funding available. The CEC's 2016 Existing Buildings Energy Efficiency Action Plan identifies strategies to increase energy efficiency in existing buildings. Specific to multifamily properties, the plan focuses on benchmarking and public disclosure of "whole-building" energy usage for existing buildings and authorizing the PUC to authorize IOUs to provide customers financial incentives, rebates, technical assistance, and support to increase energy efficiency. The plan also references CSD's Low‐Income Weatherization Program, which uses a portion of the state’s GGRF. Since CSD's current energy efficiency providers operate relatively small‐scale programs, CSD will continue to investigate how planning and cooperation with other entities can enhance collective purchasing power and influence the market.

The state's "loading order" guides the state's energy policies and decisions in the following order of priority: 1) decreasing energy demand through increased energy efficiency; 2) responding to energy demand by reducing energy usage during peak hours; 3) meeting new energy generation needs with renewable resources; and, 4) meeting new energy generation needs with clean fossil-fuels. This policy has been adopted by the CEC and PUC and guides all energy programs. In keeping with the loading order, statute requires both electrical and gas investor-owned utilities (IOUs) to meet unmet resource needs with all available energy efficiency and demand reduction that is cost-effective, reliable, and feasible. The PUC uses these criteria to establish energy efficiency targets for IOUS. To achieve these targets, the IOUs administer energy efficiency programs with ratepayer funds approved by the PUC. Currently, these programs are funded at around $1 billion annually and include a portfolio of financial incentives, loans, and rebates for installing energy efficient appliances, lighting, windows, HVAC systems, whole-house retrofits, and sector-specific efforts.

While state efforts to increase efficiency in existing building have provided significant benefits to single-family homeowners and commercial building owners, the programs have not widely benefitted residents of multifamily properties, particularly those with few units. This bill is intended to encourage CEC, PUC, and other state entities that run energy efficiency programs to make those programs more accessible for owners and residents of multifamily properties.

Analysis Prepared by: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0000703

Date of Hearing: May 17, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 1088

Author:(Eggman) – As Amended Ver:May 2, 2017

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the California Energy Commission (CEC) to adopt statewide goals, strategies, policy recommendations, and regulations for reducing energy consumption and emissions of greenhouse gases (GHGs) from multifamily residential properties. Additionally requires the CEC to convene a working group of experts from various sectors of the multifamily housing market. Specifically, this bill:

1. Requires CEC to set nonbinding statewide goals to reduce energy consumption and GHG emissions from multifamily residential properties by January 1, 2020.
2. Requires the CEC to establish an expert advisory committee of at least nine representatives with backgrounds comprising clean energy finance; information technology; building construction or design; multifamily residential property ownership; relevant policy; and the design or implementation of programs for multifamily customers.
3. Requires the CEC to develop statewide strategies for integrated distributed energy resource (DER) and water programs for multifamily properties and to identify model programs, financing mechanisms, rent stabilization agreements, tenant protection provisions, and policy recommendations in consultation with relevant state entities, the expert advisory committee, and the public. Mandates the CEC, in consultation with the advisory committee, to report to the Legislature by January 1, 2019, the strategies and recommendations for achieving reductions in energy usage and GHG emissions in the multifamily housing sector.
4. Requires CEC to develop strategies to streamline and coordinate enrollment in the DER water, and fuel substitution programs for multifamily residential properties, as follows:
5. Requires CEC, in coordination with the California Public Utilities Commission (PUC), the Department of Community Services and Development (CSD), state and local water agencies, and other relevant stakeholders, to oversee the creation of a statewide website for multifamily residential property customers that incorporates an integrated DER and water program application. The online program intake portal must be made available in at least the three most commonly used languages in California.
6. Requires CEC, in coordination with the PUC, CSD, state and local water agencies, and other relevant stakeholders, to develop strategies to facilitate shared funding, common program metrics, and shared program data across existing programs, as specified.

FISCAL EFFECT:

1. Increased CEC costs of $2 million in annual contract costs and $1 million in annual administrative costs to carry out the requirements of the bill.
2. Unknown, likely absorbable costs for CSD.
3. Negligible PUC costs.

COMMENTS:

1. Purpose. According to the author, California's customer-funded energy efficiency programs invest $1.5 billion annually, yet direct only approximately $70 million to multifamily specific offerings, or less than 5% of the total. The author further contends that this bill will provide a variety of benefits to tenants, including, in most cases utility bill savings, energy savings, a more comfortable living environment, and health benefits.
2. Background. California has a wide variety of energy efficiency requirements and programs for existing and new residential and commercial buildings. While many of these programs include multifamily eligibility, multifamily properties receive a small percentage of the total funding available. The CEC's 2016 Existing Buildings Energy Efficiency Action Plan identifies strategies to increase energy efficiency in existing buildings.

Specific to multifamily properties, the plan focuses on benchmarking and public disclosure of "whole-building" energy usage for existing buildings and authorizing the PUC to allow IOUs to provide customers financial incentives, rebates, technical assistance, and support to increase energy efficiency. The plan also references CSD's Low‐Income Weatherization Program, which uses a portion of the state’s GGRF. Since CSD’s current energy efficiency providers operate relatively small‐scale programs, CSD will continue to investigate how planning and cooperation with other entities can enhance collective purchasing power and influence the market.

1. CEC Low-Income Barriers Study. Among its many initiatives, SB 350 (De León), Chapter 547, Statutes of 2015, mandated the CEC to study and report to the Legislature the barriers low-income communities face for accessing clean energy technologies. In December 2016, the CEC released its final report on the subject, wherein it outlined several recommendations for how to promote and implement low-income clean energy programs and plans. Some of the CEC’s recommendations originated from assessments and analysis of current best-practices, but other recommendations originated from stakeholder suggestion and, per the CEC’s statement, “may warrant further analysis and stakeholder discussion as policymakers consider them for implementation.”

In Chapter 3 of the Barriers Study, the specific challenges for residents in multifamily housing to access energy efficiency and renewable energy are described. Among the challenges are misaligned incentives for owners and tenants of these residences, the diversity in buildings and ownership, and the intrusive nature of energy efficiency generally.

Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081

Date of Hearing: April 26, 2017

ASSEMBLY COMMITTEE ON UTILITIES AND ENERGY

Chris Holden, Chair

ABPCA Bill Id:AB 1088 (

Author:Eggman) – As Amended Ver:April 19, 2017

SUBJECT: Multifamily residential housing: energy programs

SUMMARY: Requires the California Energy Commission (CEC) to adopt statewide goals, strategies, policy recommendations, and regulations for reducing energy consumption and emissions of greenhouse gases (GHGs) from multifamily residential properties. Additionally requires the CEC to convene a working group of experts from various sectors of the multifamily housing market. Specifically, this bill:

1. Requires the CEC to set nonbinding statewide goals to reduce energy consumption and GHG emissions from multifamily residential properties (i.e., a property that has two or more permanent rental units).
2. Requires the CEC to establish an expert advisory committee of at least nine representatives with backgrounds comprising clean energy finance; information technology; building construction or design; multifamily residential property ownership; relevant policy; and the design or implementation of programs for multifamily customers.
3. Requires the CEC to develop statewide strategies for integrated distributed energy resource (DER) and water programs for multifamily properties and to identify model programs, financing mechanisms, rent stabilization agreements, tenant protection provisions, and policy recommendations in consultation with relevant state entities, the expert advisory committee, and the public. Mandates the CEC, in consultation with the advisory committee, to report to the Legislature by Jan. 1, 2019, the strategies and recommendations for achieving reductions in energy usage and GHG emissions in the multifamily housing sector.
4. Requires the CEC to adopt regulations to streamline and coordinate enrollment in DER, water, and fuel substitution programs for multifamily residential properties, as follows:
5. Mandates the CEC, in coordination with the California Public Utilities Commission (CPUC), the Department of Community Services and Development (CSD), state and local water agencies, and other relevant stakeholders, to oversee the creation of a statewide website for multifamily residential property customers that incorporates an integrated DER and water program application. The online program intake portal shall be made available in at least the three most commonly used languages in California.
6. Mandates the CEC, in coordination with CPUC, CSD, state and local water agencies, and other relevant stakeholders, to issue guidelines for administrators of multifamily residential programs.

5) Defines terms used in the bill, including:

1. "Multifamily residential property" as 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, including residential hotels.
2. "Low-income multifamily property" as a multifamily residential property where greater than 60% of the units are occupied by households with incomes at or below 80% of area median income or any multifamily residential property where greater than 60% of the units are occupied by customers with annual household incomes at or below 200% of federal poverty guidelines.

EXISTING LAW:

1. Mandates the CPUC to require the investor-owned utilities (IOUs) to aggregate data on low-income energy efficiency programs, broken down by ZIP code, and post the data on a single web site. These data must be updated no less frequently than every 30 days. (Public Utilities Code §589)
2. Mandates each publicly-owned utility (POU) to ensure low-income families have access to affordable electricity, that the level of energy assistance reflects the level of need, that no-cost or low-cost energy efficiency measures are available, and that discounts on rate assistance programs reflect customer needs. (Public Utilities Code §386)
3. Mandates the CEC to study and report to the Legislature the barriers that low-income communities face for accessing renewable energy, energy efficiency, weatherization, and zero-emission transportation options. (Public Resources Code §25327)
4. Requires the CPUC to ensure that, by December 31, 2020, all eligible low-income customers are given the opportunity to participate in energy efficiency programs. (Public Utilities Code §382)
5. Mandates the CPUC to require the IOUs to perform home weatherization services for low-income customers, with consideration given to cost-effectiveness and hardship reduction of the projects. (Public Utilities Code §2790)
6. Establishes the Clean Energy and Pollution Reduction Act, which creates targets to increase retail sales of renewable electricity to 50% by 2030, and double the energy efficiency savings in electricity and natural gas end use by 2030. (Public Utilities Code §399.11 and Public Resources Code §25310)
7. Requires the CEC to establish criteria for adopting a statewide home energy rating program for residential buildings, and requires the CEC to adopt the program, in consultation with the CPUC and stakeholders. (Public Resources Code §25942)
   
8. Mandates the CEC, in collaboration with the CPUC and stakeholders, to develop a comprehensive program to achieve greater energy efficiency in the state’s existing buildings. (Public Resources Code §25943)
   
9. Requires all electric corporations, in procuring energy, to first acquire all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible. (Public Utilities Code §454.5)
   

BACKGROUND:

CEC Existing Buildings Energy Efficiency (EBEE) Action Plan. Adopted by the CEC in September 2015,^[1] the EBEE Action Plan provides a 10-year framework for transforming the state’s existing residential, commercial, and public building stock into energy efficient buildings.^[2] This decade forecast seeks accelerated growth of energy efficiency markets, as well as substantial energy savings and greenhouse gas emissions reductions. EBEE centers on five goals: enhancing government leadership in energy and water efficiency; enabling improved, data-driven decision-making; increasing building industry innovation and performance; recognizing energy efficiency value; and crafting affordable and accessible energy efficiency solutions. Through the EBEE, the CEC and the CPUC seek to promote successful implementation of the energy efficiency goals that would lead to a “20 percent reduction in statewide building energy use in 2030…and by stimulating an $8 billion per year efficiency marketplace.”^[3]

The EBEE examined the challenges facing the multifamily sector, noting “energy savings goals…cannot be accomplished by expanding single-family or modifying commercial building approaches. The critical elements that set multifamily apart include the size and complexity of buildings and systems, variability of ownership structure, split payment of utility costs between owners and tenants, limited financing products, and varied tenant sophistication and resources. An added complexity in the multifamily sector is the high percentage of residents who are renters (90 percent) and low-income (more than 40 percent). Another important characteristic is that most multifamily buildings (more than 90 percent) are located in metropolitan areas…” The EBEE goes further to offer strategies for facing these challenges, such as offering surcharges on tenant meters or “green leases” to counteract split incentives between owners and tenants, or integrating household and owner eligibility in energy efficiency programs. The EBEE was updated in 2016 to reflect legislative mandates arising from SB 350 (De León, 2015), AB 802 (Williams, 2015), and AB 793 (Quirk, 2015).

CEC Low-Income Barriers Study. Among its many initiatives, SB 350 (De León, 2015) mandated the CEC to study and report to the Legislature the barriers low-income communities face for accessing clean energy technologies. In December 2016, the CEC released its final report on the subject, wherein it outlined several recommendations for how to promote and implement low-income clean energy programs and plans. Some of the CEC’s recommendations originated from assessments and analysis of current best-practices, but other recommendations originated from stakeholder suggestion and, per the CEC’s statement, “may warrant further analysis and stakeholder discussion as policymakers consider them for implementation.”^[4]

In Chapter 3 of the Barriers Study, the specific challenges for residents in multifamily housing to access energy efficiency and renewable energy is described.^[5] Among the challenges are misaligned incentives for owners and tenants of these residences, the diversity in buildings and ownership, and the intrusive nature of energy efficiency generally. No specific recommendation was given in the Barriers Study to target energy efficiency burdens in multifamily housing, but one of the principal recommendations from the Study suggested a task force be created of “all state agencies administering energy, water resilience, housing, and low-emission transportation infrastructure” in order to develop an “action plan on improving opportunities for energy efficiency, renewable energy, demand response, energy storage, and electric vehicle infrastructure for multifamily housing.”^[6]

What are Distributed Energy Resources (DERs)? DERs are defined as customer-side (or “distribution-connected”) resources, and include as varied of programs as distributed generation, energy efficiency, energy storage, electric vehicles, and demand response technologies (i.e. technologies that enable customers to shift their usage during peak). In 2013, AB 327 (Perea) required IOUs file distributed resource plans (DRP), which focused on identifying optimal locations of DER, such as rooftop solar, fuel cells, and other less-integrated technologies.^[7] Currently, all the IOUs have submitted DRPs to the CPUC, where they are under consideration. Additionally, SB 350 (De León, 2015) mandated all electric entities develop integrated resource plans (IRPs). IRPs provide a comprehensive plan for electricity procurement, including DER integration. Like the DRPs, IRPs incorporate smart technologies, but frame utility priorities in terms of meeting the State’s GHG reduction targets, RPS standards, and energy efficiency goals.

Energy Upgrade California. Energy Upgrade California is a statewide initiative to educate California residents and small businesses to take action on demand side resources. The Center for Sustainable Energy (CSE) was the administrator of the program, with funding coming from IOU ratepayers. In 2013, the CPUC directed CSE to relaunch the Energy Upgrade brand, shifting from the brand’s original focus on whole-house retrofits to an integrated platform for customers to take action on demand-side resource opportunities.^[8] Energy Upgrade California is meant to serve as the primary statewide campaign to educate residential and small business customers about energy management concepts and programs that can help them manage their energy use. In a September 2016 decision,^[9] the CPUC selected DDB as the administrator of the next phase of Energy Upgrade California. To date, a website has been created and will fully launch later in 2017.^[10] The website will serve as a “comprehensive platform for consumers to learn about and take action on demand side resource opportunities across state and local funding sources and the private sector.”^[11]

FISCAL EFFECT: This bill is keyed fiscal and will be referred to the Appropriations Committee for its review of the fiscal effect of this bill.

COMMENTS:

1. Author’s Statement. According to the author’s office, “Over four million California households live in multifamily apartments with two or more units and nearly half of these multifamily apartments are occupied by households making 200% of the federal poverty guidelines or less, or $32,040 for a family of two. Lower-income residents, 70% of whom are renters, face disproportionately high energy bills and significant affordability challenges. The majority of multifamily properties were built before building codes existed and have poor insulation and aging, inefficient appliances and heating and cooling systems. In California, utility disconnections have increased by 67% since 2010, and in 2015, affected over 800,000 California households. Reduced utility bills and upgrades that help preserve affordable housing are critically needed.
   
   California's customer-funded energy efficiency programs invest $1.5 billion annually, yet direct only approximately $70 million to multifamily specific offerings, or less than 5% of the total. While some comprehensive whole-building energy efficiency programs are available for this sector, they generally have insufficient budgets to meet the demand and operate on short start-and-stop time cycles. Existing programs vary by service territory, measure offerings, and income eligibility requirements – and each program has its own application and enrollment process, creating market confusion and hindering participation. Direct install programs have had wide reach in the single family sector, but so far have provided few measures beyond basic in-unit offerings, such as faucet aerators and compact fluorescent lightbulbs, to multifamily residents, with correspondingly little impact on residents' bills. Properties in more remote areas or that aren't served by an investor-owned utility often have few, if any, incentives or offerings for this sector.
   
   AB 1088 will provide a variety of benefits to tenants, including, in most cases: bill savings, energy savings, a more comfortable living environment, and health benefits. Clean energy upgrades and renewables in common areas of larger properties also save money for owners and increase tenant retention. Reduce operating and maintenance costs from whole-building upgrades also enable larger properties to preserve their affordability over longer periods of time. Aligning program offerings and setting a high-level statewide goal will increase multifamily program accessibility and participation levels, resulting in greater levels or property upgrades. In addition to direct cost, healthy, and affordability benefits for owners and renters, these upgrades will reduce [GHG] emissions and indoor and outdoor air pollution, create jobs, and increase economic output.”
2. Need for Multifamily Housing Focus in DER? Approximately 31% of Californians reside in multifamily housing.^[12] These residents are almost entirely renters,^[13] and more than 70% of the multifamily buildings were constructed before building energy standards were adopted.^[14] Yet, the multifamily housing residents account for only 24% of residential energy use.^[15] The single family sector, on the other hand, accounts for roughly 73% of residential buildings in the state and uses roughly 76% of all residential energy.^[16]

Furthermore, approximately 43% of multifamily residents are low-income.^[17] These tenants are especially vulnerable to fluctuations in energy usage, and greatly benefit from usage reductions. For this reason, California ratepayers have subsidized both rate discounts and no-cost energy efficiency and DER programs in low-income residences. While the rate discount program has seen impressive customer participation, the energy efficiency programs have not. Due to a variety of factors, a significant number of income-eligible low-income residents have never participated in energy efficiency and weatherization services provided by the IOUs^[18] and POUs.^[19] However, the DER multifamily affordable solar housing (MASH) program, which provides upfront financial incentives to offset the cost of installing solar photovoltaic (PV) on multifamily affordable housing, is almost fully reserved.

The barriers and challenges to multifamily residents adopting more DER programs involve access, intrusive and timely construction, no incentives for landlords to secure lower tenant utility bills, and lack of financing.^[20] This bears out in energy efficiency programs being poorly subscribed, while less intrusive solar installations are fully spent. These barriers have been discussed, and strategies to overcome them have been put forward, in a number of reports from the EBEE Action Plan to the Barriers Study.

1. CEC-led Effort to Understand Multifamily Sector. AB 1088 requires the CEC to adopt statewide goals, strategies, policy recommendations, and regulations for reducing energy consumption and GHG emissions from multifamily residential properties, and asks the CEC to convene a working group of experts from various sectors of the multifamily housing market. Further, this bill will require the CEC to administer a website aggregating all DER programs, and establish uniformity in the application for all programs. This website is more ambitious than the CPUC-administered energy efficiency website that arose from AB 270 (Bradford, 2013), which reports all the energy efficiency programming data of the IOUs. The energy efficiency numbers from the IOUs are well known as a result, and are broken down by ZIP code and updated monthly.^[21] The POUs, on the other hand, have less rigorous reporting mandates. SB 1037 (Kehoe, 2005) requires POUs to annually report to the CEC its investments in energy efficiency and demand reduction programs. Furthermore, much like the IOUs’ procurement mandate, the POUs are mandated to identify all potentially achievable cost-effective, reliable, and feasible electricity efficiency savings, per AB 2021 (Levine, 2006). Yet while the CPUC has made strides to standardize the energy efficiency programs across the IOUs, the POUs offer more disparate programs. The 2015 POU energy efficiency report, for example, had different offerings or different program names or different outreach categories across all POUs; in essence, making tracking of the monies, and those residents impacted, difficult. Outreach to multifamily communities, in particular, was sparse.^[22]

AB 1088 seeks POU and IOU coordination to establish a website which may act as a central point of contact for multifamily residents seeking information and access to DER programs. However, with the recent relaunching of Energy Upgrade California, much of the aggregation and integration of the available DER programming sought in this bill should already occur through that forthcoming ratepayer-funded site. Yet, as a CPUC program, Energy Upgrade California may focus on IOU projects and options. Therefore, the committee may wish to consider an amendment to this bill which states the new CEC-led website shall leverage existing web portals, such as Energy Upgrade California.

4) Goals, Strategies, Policy Recommendations, Regulations, and Guidelines. As noted in the 2015 EBEE Action Plan, inconsistency exists in many aspects of energy efficiency programming and outreach to multifamily residents; this is true for other DER programs as well. For instance, even the definitions of “multifamily” used among agencies, utilities, and other stakeholders may vary.^[23] This bill seeks to address these challenges, by mandating the CEC adopt goals, strategies, policy recommendations, stakeholder processes, regulations and guidelines to inform and add consistency to multifamily residential efforts. However, in seeking this consistency the bill grants the CEC regulatory authority over programs under the jurisdiction of the CPUC and POUs. The committee may wish to consider amendments to this bill which strike reference to regulations and guidelines, and instead mandate the CEC to craft goals and strategies for the multifamily housing sector. Specifically in §25641:

(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.

(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 strategies shall also provide guidance to 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.

5) Related Legislation. AB 1431, Arambula mandates the CEC to lead a working group addressing low-income and disadvantaged community energy programs and outreach, and mandates the CEC and other departments to develop standardized reporting requirements for the low-income energy programs in order to publish those data online. This bill has passed out of the Assembly Utilities and Energy Committee, and is scheduled to be heard in the Assembly Natural Resources Committee.

REGISTERED SUPPORT / OPPOSITION:

Support 

Association For Energy Affordability, Inc.
California State Association Of Electrical Workers 
California State Pipe Trades Council
City Of Santa Monica
Environmental Defense Fund
Natural Resources Defense Council
Western States Council Of Sheet Metal Workers

Opposition

None on file.

Analysis Prepared by: Laura McWilliams / U. & E. /

1. 15-IEPR-05; required by AB 758 (Skinner, 2009) ↑

2. Note: it did not cover the industrial or agricultural sectors ↑

3. Existing Buildings Energy Efficiency Action Plan; CEC; CEC-400-2015-013-E; September 2015. ↑

4. Commission Final Report, Low-Income Barriers Study, Part A; CEC; CEC-300-2016-009-CMF; December 2016. ↑

5. Id. pg. 38. ↑

6. Id. pg. 5 ↑

7. PUC §769 ↑

8. CPUC D. 13-12-038 ↑

9. CPUC D. 16-09-020; see: http://www.cpuc.ca.gov/general.aspx?id=6442452729 ↑

10. See: http://energyupgradeca.org/ ↑

11. Energy Upgrade California, CSE; Statewide Marketing, Education & Outreach Vision and Strategic Plan 2017-2021; November 20, 2015. https://app.box.com/v/EUCPublic/1/14821115439/113771040368/1 ↑

12. Based on 2011 statistics; Commission Final Report, Low-Income Barriers Study, Part A; CEC; CEC-300-2016-009-CMF; December 2016. ↑

13. ~90% ↑

14. Existing Buildings Energy Efficiency Action Plan; CEC; CEC-400-2015-013-E; September 2015. ↑

15. Existing Buildings Energy Efficiency Action Plan; CEC; CEC-400-2015-013-E; September 2015. ↑

16. Existing Buildings Energy Efficiency Action Plan; CEC; CEC-400-2015-013-E; September 2015. ↑

17. Based on 2011 statistics; Commission Final Report, Low-Income Barriers Study, Part A; CEC; CEC-300-2016-009-CMF; December 2016. ↑

18. CPUC D.16-11-022 ↑

19. http://cmua.org/wpcmua/wp-content/uploads/2015/03/2015-FINAL-SB-1037-Report.pdf ↑

20. Existing Buildings Energy Efficiency Action Plan; CEC; CEC-400-2015-013-E; September 2015. ↑

21. http://eestats.cpuc.ca.gov/Views/EEDataPortal.aspx ↑

22. See: http://cmua.org/wpcmua/wp-content/uploads/2015/03/2015-FINAL-SB-1037-Report.pdf ↑

23. Commonly “three or more units in a building” is used, as was the case in the EBEE, but “three (or four) or more stories regardless of units” may also be found. See: California Code of Regulations, Title 24 ↑

Date of Hearing: April 17, 2017

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Cristina Garcia, Chair

ABPCA Bill Id:AB 1088 (

Author:Eggman) – As Amended Ver:March 28, 2017

SUBJECT: Multiunit residential housing: energy programs

SUMMARY: Requires the California Energy Commission (CEC) to adopt regulations that establish statewide performance goals to reduce energy consumption, source energy demand, and greenhouse gas (GHG) emissions from multifamily residential properties. Requires that the regulations reduce the total source energy usage of multifamily properties by 30% by 2030 and reduce GHG emissions attributable to multifamily properties by 40% by 2030, as specified.

EXISTING LAW:

1. Establishes the Clean Energy and Pollution Reduction Act, which creates targets to increase retail sales of renewable electricity to 50% by 2030, and double the energy efficiency savings in electricity and natural gas end uses by 2030. Establishes a Renewable Portfolio Standard (RPS) target of 50% by December 31, 2030, and thereafter, for retail sellers and publicly-owned utilities (POUs), including interim targets of 40% by the end of the 2021 to 2024 compliance period, 45% by the end of the 2025 to 2027 compliance period, and 50% by the end of the 2028 to 2030 compliance period.
2. Requires the CEC to establish criteria for adopting a statewide home energy rating program for residential buildings, and requires the CEC to adopt the program in consultation with representatives of the Department of Real Estate, the Department of Housing and Community Development (HCD), the California Public Utilities Commission (PUC), investor-owned and municipal utilities, cities and counties, real estate licensees, home builders, mortgage lenders, home appraisers and inspectors, home energy rating organizations, contractors who provide home energy services, consumer groups, and environmental groups.
   
3. Pursuant to AB 758 (Skinner) Chapter 470, Statutes 2009, requires CEC, in collaboration with PUC and stakeholders, to develop a comprehensive program to achieve greater energy efficiency in the state’s existing buildings.
   
4. Establishes several natural gas public purpose programs, including a low-income rate assistance program, a research and development program, and energy efficiency programs, which are funded by a surcharge on natural gas bills of customers of pipelines regulated by the PUC.
   
5. Establishes subsidy programs for the installation of solar photovoltaic systems administered by the PUC and CEC. These programs, known collectively as the California Solar Initiative (CSI), are to provide $3.2 billion in subsidies over 10 years in the form of rebates for the installation of photovoltaic projects. CSI authorizes the PUC to award $101 million in subsidies for solar thermal and solar water heating devices.
   
6. Establishes the Self Generation Incentive Program (SGIP) within the PUC to incentivize clean, renewable distributed generation resources.
   
7. Requires the CEC to adopt an integrated energy policy report (IEPR) every two years. The objective of the IEPR is to evaluate market trends and develop energy policies that will "conserve resources, protect the environment, ensure energy reliability, enhance the state's economy, and protect public health and safety." The IEPR includes "progress toward statewide renewable energy targets and issues facing future renewable development; efforts to increase energy efficiency in existing and new buildings; progress by utilities in achieving energy efficiency targets and potential; improving coordination among the state's energy agencies; streamlining power plant licensing processes; results of preliminary forecasts of electricity, natural gas, and transportation fuel supply and demand; future energy infrastructure needs; the need for research and development efforts to support statewide energy policies; and, issues facing California's nuclear power plants."
   
8. Requires the PUC to have each electrical corporation identify a separate rate component to collect revenue to fund cost-effective energy efficiency and conservation activities.
   
9. Requires all electric utilities, in procuring energy, to first acquire all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible.
   
10. Authorizes the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to provide financing for facilities that use alternative energy sources and technologies. CAEATFA can issue revenue bonds (without voter approval), make loans, loan loss reserves, and loan guarantees to develop and commercialize advanced transportation technologies that conserve energy, reduce air pollution, and promote economic development and jobs. State law limits CAEATFA's total debt to $1 billion.
    
11. Requires the Air Resources Board (ARB), pursuant to California Global Warming Solutions Act of 2006 [AB 32 (Nunez), Chapter 488, Statutes of 2006], to adopt a statewide GHG emissions limit equivalent to 1990 levels by 2020 and adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions. AB 32 authorizes ARB to permit the use of market-based compliance mechanisms to comply with GHG reduction regulations once specified conditions are met. Requires ARB to approve a statewide GHG emissions limit equivalent to 40% below the 1990 level by 2030.
    
12. Establishes the Greenhouse Gas Reduction Fund (GGRF) and requires all moneys, except for fines and penalties, collected by ARB from the auction or sale of allowances pursuant to a market-based compliance mechanism (i.e., the cap-and-trade program adopted by ARB under AB 32) to be deposited in the GGRF and available for appropriation by the Legislature.
    
13. Establishes the GGRF Investment Plan and Communities Revitalization Act to set procedures for the investment of GHG allowance auction revenues. Authorizes a range of GHG reduction investments.
    
14. Requires the investment plan to allocate a minimum of 25% of the available moneys in the GGRF to projects that provide benefits to identified disadvantaged communities and a minimum of 10% of the available moneys in the GGRF to projects located within identified disadvantaged communities.

THIS BILL:

1. Requires CEC to set statewide performance-based goals to reduce energy consumption, source energy demand, and GHG emissions from multifamily residential properties (e.g., a property that has two or more permanent rental units).
   
2. Requires CEC to develop and adopt statewide strategies and guidance for integrated distributed energy resource programs for multifamily properties and to identify model programs, financing mechanisms, rent stabilization agreements, tenant protection provisions, and policy recommendations in consultation with relevant state entities, including, but not limited to, PUC, HCD, the Department of Community Services and Development (CSD), the California Tax Credit Allocation Committee, the expert advisory committee established by the bill, and the public.
   
3. Requires CEC to 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;
      
   5. Environmental justice, social justice, housing, and other environmental policy experts; and,
      
   6. Other policy and marketplace actors with expertise needed to design and implement effective financial, housing, and related energy service programs for multifamily customers.
      
4. Requires CEC, in consultation with relevant state agencies and the public, to adopt regulations by July 15, 2019 to set the performance-based goals and that:
   
   1. Establish a goal to reduce the total source energy usage of multifamily properties by at least 30% by 2030, as compared to 2017 energy usage;
      
   2. Establish a goal to reduce GHG emissions attributable to multifamily residential properties by at least 40% by 2030, as compared to 2017 emissions;
      
   3. If, after completing a prescribed stakeholder process, CEC finds that the goals established in the bill are not technically or economically feasible, it may adopt less demanding goals;
      
   4. Not less than one-half of the performance based goals for reducing energy consumption and reducing GHG emissions shall be applied to low-income multifamily properties; and,
      
   5. If CEC determines that 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.
      
5. Specifies that the statewide performance-based goals adopted pursuant to the bill may be achieved through energy consumption and demand reductions resulting from a variety of programs, as specified.
   
6. Requires CEC to submit a report to the Legislature by January 7, 2019 on the strategies and guidance developed pursuant to the bill, along with any recommendations for legislative action.
   
7. Requires CEC to adopt regulations to streamline and coordinate enrollment in distributed energy resource, water, and fuel substitution programs for multifamily residential properties, as follows:
   
   1. CEC, in coordination with PUC, CSD, state and local water agencies, and other relevant stakeholders, shall oversee the creation of a statewide "online program intake portal" for multifamily residential property customers that incorporates an integrated distributed energy resources 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. CEC, in coordination with PUC, CSD, 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.
      
8. By January 1, 2019, requires CEC, PUC, CSD, the Department of Water Resources (DWR), and other relevant state and local governmental entities to mutually qualify low-income multifamily properties for state and local low-income distributed energy resource and water programs if:
   
   1. The low-income multifamily property is subject to a regulatory agreement or affordability covenant;
      
   2. The low-income multifamily property participates in a federal multifamily housing program regulated by the US Department of Housing and Urban Development, the US Department of Agriculture, or the Internal Revenue Service;
      
   3. The property owner provides documentation that a minimum of 60% of the residents meet either or both of the following requirements:
      
      1. Have household incomes that do not exceed the greater of 200% of the federal poverty level or 80% of the state median income level, whichever is higher; and/or,
         
      2. Have rents established at less than 30% of the income level, as specified.
         
9. Defines terms used in the bill, including:
   
   1. "Multifamily residential property" as 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, including residential hotels.
      
   2. "Low-income multifamily property" as a multifamily residential property where greater than 60% of the units are occupied by households with incomes at or below 80% of area median income or any multifamily residential property where greater than 60% of the units are occupied by customers with annual household incomes at or below 200% of federal poverty guidelines.
      

FISCAL EFFECT: Unknown

COMMENTS:

1. Author's statement:

Over four million California households live in multifamily apartments with two or more units and nearly half of these multifamily apartments are occupied by households making 200% of the federal poverty guidelines or less, or $32,040 for a family of two. Lower-income residents, 70% of whom are renters, face disproportionately high energy bills and significant affordability challenges. The majority of multifamily properties were built before building codes existed and have poor insulation and aging, inefficient appliances and heating and cooling systems. In California, utility disconnections have increased by 67% since 2010, and in 2015, affected over 800,000 California households. Reduced utility bills and upgrades that help preserve affordable housing are critically needed.

California's customer-funded energy efficiency programs invest $1.5 billion annually, yet direct only approximately $70 million to multifamily specific offerings, or less than 5% of the total. While some comprehensive whole-building energy efficiency programs are available for this sector, they generally have insufficient budgets to meet the demand and operate on short start-and-stop time cycles. Existing programs vary by service territory, measure offerings, and income eligibility requirements – and each program has its own application and enrollment process, creating market confusion and hindering participation. Direct install programs have had wide reach in the single family sector, but so far have provided few measures beyond basic in-unit offerings, such as faucet aerators and compact fluorescent lightbulbs, to multifamily residents, with correspondingly little impact on residents' bills. Properties in more remote areas or that aren't served by an investor-owned utility often have few, if any, incentives or offerings for this sector.

AB 1088 will provide a variety of benefits to tenants, including, in most cases: bill savings, energy savings, a more comfortable living environment, and health benefits. Clean energy upgrades and renewables in common areas of larger properties also save money for owners and increase tenant retention. Reduce operating and maintenance costs from whole-building upgrades also enables larger properties to preserve their affordability over longer periods of time. Aligning program offerings and setting a high-level statewide goal will increase multifamily program accessibility and participation levels, resulting in greater levels or property upgrades. In addition to direct cost, healthy, and affordability benefits for owners and renters, these upgrades will reduce [GHG] emissions and indoor and outdoor air pollution, create jobs, and increase economic output.

1. Energy efficiency for all? California has a wide variety of energy efficiency requirements and programs for existing and new residential and commercial buildings. While many of these programs include multifamily eligibility, multifamily properties receive a small percentage of the total funding available. The CEC's 2016 Existing Buildings Energy Efficiency Action Plan identifies strategies to increase energy efficiency in existing buildings. Specific to multifamily properties, the plan focuses on benchmarking and public disclosure of "whole-building" energy usage for existing buildings and authorizing the PUC to authorize IOUs to provide customers financial incentives, rebates, technical assistance, and support to increase energy efficiency. The plan also references CSD's Low‐Income Weatherization Program, which uses a portion of the state’s GGRF. Since CSD’s current energy efficiency providers operate relatively small‐scale programs, CSD will continue to investigate how planning and cooperation with other entities can enhance collective purchasing power and influence the market.
   

The state's "loading order" guides the state's energy policies and decisions in the following order of priority: 1) decreasing energy demand through increased energy efficiency; 2) responding to energy demand by reducing energy usage during peak hours; 3) meeting new energy generation needs with renewable resources; and, 4) meeting new energy generation needs with clean fossil-fuels. This policy has been adopted by the CEC and PUC and guides all energy programs. In keeping with the loading order, statute requires both electrical and gas investor-owned utilities (IOUs) to meet unmet resource needs with all available energy efficiency and demand reduction that is cost-effective, reliable, and feasible. The PUC uses these criteria to establish energy efficiency targets for IOUS. To achieve these targets, the IOUs administer energy efficiency programs with ratepayer funds approved by the PUC. Currently, these programs are funded at around $1 billion annually and include a portfolio of financial incentives, loans, and rebates for installing energy efficient appliances, lighting, windows, HVAC systems, whole-house retrofits, and sector-specific efforts.

While state efforts to increase efficiency in existing building have provided significant benefits to single-family homeowners and commercial building owners, the programs have not widely benefitted residents of multifamily properties, particularly those with few units. This bill is intended to encourage CEC, PUC, and other state entities that run energy efficiency programs to make those programs more accessible for owners and residents of multifamily properties.

REGISTERED SUPPORT / OPPOSITION:

Support

Association for Energy Affordability, Inc.

Build It Green

California Housing Partnership Corporation

California State Association of Electrical Workers
California State Pipe Trades Council
City of Menlo Park
City of Santa Monica

Environmental Defense Fund

Natural Resources Defense Council
US Green Building Council

Western States Council of Sheet Metal Workers

Opposition

None on file

Analysis Prepared by: Elizabeth MacMillan / NAT. RES. /

Date of Hearing: April 3, 2017

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Cristina Garcia, Chair

ABPCA Bill Id:AB 1088 (

Author:Eggman) – As Amended Ver:March 28, 2017

SUBJECT: Multiunit residential housing: energy programs

SUMMARY: Requires the California Energy Commission (CEC) to adopt regulations that establish statewide performance goals to reduce energy consumption, source energy demand, and greenhouse gas (GHG) emissions from multifamily residential properties. Requires that the regulations reduce the total source energy usage of multifamily properties by 30% by 2030 and reduce GHG emissions attributable to multifamily properties by 40% by 2030, as specified.

EXISTING LAW:

1. Establishes the Clean Energy and Pollution Reduction Act, which creates targets to increase retail sales of renewable electricity to 50% by 2030, and double the energy efficiency savings in electricity and natural gas end uses by 2030. Establishes a Renewable Portfolio Standard (RPS) target of 50% by December 31, 2030, and thereafter, for retail sellers and publicly-owned utilities (POUs), including interim targets of 40% by the end of the 2021 to 2024 compliance period, 45% by the end of the 2025 to 2027 compliance period, and 50% by the end of the 2028 to 2030 compliance period.
2. Requires the CEC to establish criteria for adopting a statewide home energy rating program for residential buildings, and requires the CEC to adopt the program in consultation with representatives of the Department of Real Estate, the Department of Housing and Community Development (HCD), the California Public Utilities Commission (PUC), investor-owned and municipal utilities, cities and counties, real estate licensees, home builders, mortgage lenders, home appraisers and inspectors, home energy rating organizations, contractors who provide home energy services, consumer groups, and environmental groups.
   
3. Pursuant to AB 758 (Skinner) Chapter 470, Statutes 2009, requires CEC, in collaboration with PUC and stakeholders, to develop a comprehensive program to achieve greater energy efficiency in the state’s existing buildings.
   
4. Establishes several natural gas public purpose programs, including a low-income rate assistance program, a research and development program, and energy efficiency programs, which are funded by a surcharge on natural gas bills of customers of pipelines regulated by the PUC.
   
5. Establishes subsidy programs for the installation of solar photovoltaic systems administered by the PUC and CEC. These programs, known collectively as the California Solar Initiative (CSI), are to provide $3.2 billion in subsidies over 10 years in the form of rebates for the installation of photovoltaic projects. CSI authorizes the PUC to award $101 million in subsidies for solar thermal and solar water heating devices.
   
6. Establishes the Self Generation Incentive Program (SGIP) within the PUC to incentivize clean, renewable distributed generation resources.
   
7. Requires the CEC to adopt an integrated energy policy report (IEPR) every two years. The objective of the IEPR is to evaluate market trends and develop energy policies that will "conserve resources, protect the environment, ensure energy reliability, enhance the state's economy, and protect public health and safety." The IEPR includes "progress toward statewide renewable energy targets and issues facing future renewable development; efforts to increase energy efficiency in existing and new buildings; progress by utilities in achieving energy efficiency targets and potential; improving coordination among the state's energy agencies; streamlining power plant licensing processes; results of preliminary forecasts of electricity, natural gas, and transportation fuel supply and demand; future energy infrastructure needs; the need for research and development efforts to support statewide energy policies; and, issues facing California's nuclear power plants."
   
8. Requires the PUC to have each electrical corporation identify a separate rate component to collect revenue to fund cost-effective energy efficiency and conservation activities.
   
9. Requires all electric utilities, in procuring energy, to first acquire all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible.
   
10. Authorizes the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to provide financing for facilities that use alternative energy sources and technologies. CAEATFA can issue revenue bonds (without voter approval), make loans, loan loss reserves, and loan guarantees to develop and commercialize advanced transportation technologies that conserve energy, reduce air pollution, and promote economic development and jobs. State law limits CAEATFA's total debt to $1 billion.
    
11. Requires the Air Resources Board (ARB), pursuant to California Global Warming Solutions Act of 2006 [AB 32 (Nunez), Chapter 488, Statutes of 2006], to adopt a statewide GHG emissions limit equivalent to 1990 levels by 2020 and adopt regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions. AB 32 authorizes ARB to permit the use of market-based compliance mechanisms to comply with GHG reduction regulations once specified conditions are met. Requires ARB to approve a statewide greenhouse gas (GHG) emissions limit equivalent to 40% below the 1990 level by 2030.
    
12. Establishes the Greenhouse Gas Reduction Fund (GGRF) and requires all moneys, except for fines and penalties, collected by ARB from the auction or sale of allowances pursuant to a market-based compliance mechanism (i.e., the cap-and-trade program adopted by ARB under AB 32) to be deposited in the GGRF and available for appropriation by the Legislature.
    
13. Establishes the GGRF Investment Plan and Communities Revitalization Act to set procedures for the investment of GHG allowance auction revenues. Authorizes a range of GHG reduction investments.
    
14. Requires the investment plan to allocate a minimum of 25% of the available moneys in the GGRF to projects that provide benefits to identified disadvantaged communities and a minimum of 10% of the available moneys in the GGRF to projects located within identified disadvantaged communities.

THIS BILL:

1. Requires CEC to set statewide performance-based goals to reduce energy consumption, source energy demand, and GHG emissions from multifamily residential properties (e.g., a property that has two or more permanent rental units).
   
2. Requires CEC to develop and adopt statewide strategies and guidance for integrated distributed energy resource programs for multifamily properties and to identify model programs, financing mechanisms, rent stabilization agreements, tenant protection provisions, and policy recommendations in consultation with relevant state entities, including, but not limited to, PUC, HCD, the Department of Community Services and Development (CSD), the California Tax Credit Allocation Committee, the expert advisory committee established by the bill, and the public.
   
3. Requires CEC to 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;
      
   5. Environmental justice, social justice, housing, and other environmental policy experts; and,
      
   6. Other policy and marketplace actors with expertise needed to design and implement effective financial, housing, and related energy service programs for multifamily customers.
      
4. Requires CEC, in consultation with relevant state agencies and the public, to adopt regulations by July 15, 2019 to set the performance-based goals and that:
   
   1. Establish a goal to reduce the total source energy usage of multifamily properties by at least 30% by 2030, as compared to 2017 energy usage.
      
   2. Establish a goal to reduce GHG emissions attributable to multifamily residential properties by at least 40% by 2030, as compared to 2017 emissions.
      
   3. If, after completing a prescribed stakeholder process, CEC finds that the goals established in the bill are not technically or economically feasible, it may adopt less demanding goals.
      
   4. Not less than one-half of the performance based goals for reducing energy consumption and reducing GHG emissions shall be applied to low-income multifamily properties.
      
   5. If CEC determines that 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.
      
5. Specifies that the statewide performance-based goals adopted pursuant to the bill may be achieved through energy consumption and demand reductions resulting from a variety of programs, as specified.
   
6. Requires CEC to submit a report to the Legislature by January 7, 2019 on the strategies and guidance developed pursuant to the bill, along with any recommendations for legislative action.
   
7. Requires CEC to adopt regulations to streamline and coordinate enrollment in distributed energy resource, water, and fuel substitution programs for multifamily residential properties, as follows:
   
   1. CEC, in coordination with PUC, CSD, state and local water agencies, and other relevant stakeholders, shall oversee the creation of a statewide "online program intake portal" for multifamily residential property customers that incorporates an integrated distributed energy resources 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. CEC, in coordination with PUC, CSD, 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.
      
8. By January 1, 2019, requires CEC, PUC, CSD, the Department of Water Resources (DWR), and other relevant state and local governmental entities to mutually qualify low-income multifamily properties for state and local low-income distributed energy resource and water programs if:
   
   1. The low-income multifamily property is subject to a regulatory agreement or affordability covenant;
      
   2. The low-income multifamily property participates in a federal multifamily housing program regulated by the US Department of Housing and Urban Development, the US Department of Agriculture, or the Internal Revenue Service;
      
   3. The property owner provides documentation that a minimum of 60% of the residents meet either or both of the following requirements:
      
      1. Have household incomes that do not exceed the greater of 200% of the federal poverty level or 80% of the state median income level, whichever is higher; and/or,
         
      2. Have rents established at less than 30% of the income level, as specified.
         
9. Defines terms used in the bill, including:
   
   1. "Multifamily residential property" as 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, including residential hotels.
      
   2. "Low-income multifamily property" as a multifamily residential property where greater than 60% of the units are occupied by households with incomes at or below 80% of area median income or any multifamily residential property where greater than 60% of the units are occupied by customers with annual household incomes at or below 200% of federal poverty guidelines.
      

FISCAL EFFECT: Unknown

COMMENTS:

1. Author's statement:

Over four million California households live in multifamily apartments with two or more units and nearly half of these multifamily apartments are occupied by households making 200% of the federal poverty guidelines or less, or $32,040 for a family of two. Lower-income residents, 70% of whom are renters, face disproportionately high energy bills and significant affordability challenges. The majority of multifamily properties were built before building codes existed and have poor insulation and aging, inefficient appliances and heating and cooling systems. In California, utility disconnections have increased by 67% since 2010, and in 2015, affected over 800,000 California households. Reduced utility bills and upgrades that help preserve affordable housing are critically needed.

California's customer-funded energy efficiency programs invest $1.5 billion annually, yet direct only approximately $70 million to multifamily specific offerings, or less than 5% of the total. While some comprehensive whole-building energy efficiency programs are available for this sector, they generally have insufficient budgets to meet the demand and operate on short start-and-stop time cycles. Existing programs vary by service territory, measure offerings, and income eligibility requirements – and each program has its own application and enrollment process, creating market confusing and hindering participation. Direct install programs have had wide reach in the single family sector, but so far have provided few measures beyond basic in-unit offerings, such as faucet aerators and compact fluorescent lightbulbs, to multifamily residents, with correspondingly little impact on residents' bills. Properties in more remote areas or that aren't served by an investor-owned utility often have few, if any, incentives or offerings for this sector.

AB 1088 will provide a variety of benefits to tenants, including, in most cases: bill savings, energy savings, a more comfortable living environment, and health benefits. Clean energy upgrades and renewables in common areas of larger properties also save money for owners and increase tenant retention. Reduce operating and maintenance costs from whole-building upgrades also enables larger properties to preserve their affordability over longer periods of time. Aligning program offerings and setting a high-level statewide goal will increase multifamily program accessibility and participation levels, resulting in greater levels or property upgrades. In addition to direct cost, healthy, and affordability benefits for owners and renters, these upgrades will reduce [GHG] emissions and indoor and outdoor air pollution, create jobs, and increase economic output.

1. Energy efficiency for all? California has a wide variety of energy efficiency requirements and programs for existing and new residential and commercial buildings. While many of these programs include multifamily eligibility, multifamily properties receive a small percentage of the total funding available. The CEC's 2016 Existing Buildings Energy Efficiency Action Plan identifies strategies to increase energy efficiency in existing buildings. Specific to multifamily properties, the plan focuses on benchmarking and public disclosure of "whole-building" energy usage for existing buildings and authorizing the PUC to authorize IOUs to provide customers financial incentives, rebates, technical assistance, and support to increase energy efficiency. The plan also references CSD's Low‐Income Weatherization Program, which uses a portion of the state’s GGRF. Since CSD’s current energy efficiency providers operate relatively small‐scale programs, CSD will continue to investigate how planning and cooperation with other entities can enhance collective purchasing power and influence the market.
   

The state's "loading order" guides the state's energy policies and decisions in the following order of priority: 1) decreasing energy demand through increased energy efficiency; 2) responding to energy demand by reducing energy usage during peak hours; 3) meeting new energy generation needs with renewable resources; and, 4) meeting new energy generation needs with clean fossil-fuels. This policy has been adopted by the CEC and PUC and guides all energy programs. In keeping with the loading order, statute requires both electrical and gas IOUs to meet unmet resource needs with all available energy efficiency and demand reduction that is cost-effective, reliable, and feasible. The PUC uses these criteria to establish energy efficiency targets for IOUS. To achieve these targets, the IOUs administer energy efficiency programs with ratepayer funds approved by the PUC. Currently, these programs are funded at around $1 billion annually and include a portfolio of financial incentives, loans, and rebates for installing energy efficient appliances, lighting, windows, HVAC systems, whole-house retrofits, and sector-specific efforts.

While state efforts to increase efficiency in existing building have provided significant benefits to single-family homeowners and commercial building owners, the programs have not widely benefitted residents of multifamily properties, particularly those with few units. This bill is intended to encourage CEC, PUC, and other state entities that run energy efficiency programs to make those programs more accessible for owners and residents of multifamily properties.

1. Suggested amendments:
   1. This bill requires CEC, PUC, CSD, DWR, and other state and local governmental entities to "mutually qualify" low-income multifamily properties for state and local low-income distributed energy resource and water programs using one application and income eligibility verification across all state and local assistance programs. While the goal of this provision is to simplify the application process for California residents, it is not feasible for the wide variety of programs available, with different statutory and regulatory requirements, to "mutually approve" applicants. The committee may wish to amend the bill to remove this provision and instead strengthen the requirement that CEC develop guidelines to enable state and local entities to coordinate the application and approval process.
   2. The committee may also wish to make a number of technical and clarifying amendments, including:
      1. Strike out references to multifamily property "customers" and insert residents and/or owners, as appropriate;
      2. Remove an unnecessary definition for "source energy demand" and make related changes;
      3. Clarify that the expert advisory committee include owners of multifamily residential properties;
      4. Remove the term "online program intake portal" and instead specify that CEC create a website to assist owners and residents of multifamily residential properties with identifying and applying for state and local programs; and,
      5. Make related technical amendments.

REGISTERED SUPPORT / OPPOSITION:

Support

Association for Energy Affordability, Inc.

Build It Green

California Housing Partnership Corporation

California State Association of Electrical Workers
California State Pipe Trades Council

Environmental Defense Fund

Natural Resources Defense Council

Western States Council of Sheet Metal Workers

Opposition

None on file

Analysis Prepared by: Elizabeth MacMillan / NAT. RES. /