GOVERNOR'S VETO

GV Bill Id:AB 386

Author:(Eduardo Garcia)

As Enrolled Ver:September 10, 2019

2/3 vote

SUMMARY:

1. Directs the Department of Community Services and Development (CSD) to develop and administer the Agricultural Working Poor Energy Efficient Housing Program by expending moneys appropriated by the Legislature to improve energy efficiency in farmworker housing.
2. Specifies that program funds are to be used to fund energy-efficient projects including, but not limited to, the following:
   1. Weatherization of homes and other residences;
   2. Replacement of energy inefficient appliances with Energy Star-certified appliances;
   3. Replacement of lighting with light-emitting diode, commonly known as LED, lighting; and,
   4. Installation of photovoltaic solar panels and solar water heating systems and bringing farmworker housing into compliance to allow installation of those systems.
3. Directs CSD, when distributing program funding, to give preference to an association of federally designated farmworker organizations and other organizations that have a proven track record of assisting farmworkers.
4. Establishes a number of program requirements, including that CSD consult with the California Public Utilities Commission and the California Energy Commission in developing the program to avoid duplication with the energy-efficiency programs supervised by those commissions, and that CSD submit a report to the Legislature on program performance, as specified.

Governor’s Veto Message:

This bill establishes the Agricultural Working Poor Energy Efficient Housing Program and requires it to be administered by the Department of Community Services and Development (CSD).

While creating opportunities to access energy efficiency measures is laudable, this bill is duplicative of existing programs and creates an added cost pressure of potentially many millions of dollars, which should be addressed within the budget.

COMMENTS:

This bill establishes the Program, to be administered by CSD. The purpose of the Program is to improve energy efficiency in farmworker housing. The author reports that California’s 800,000 low-income farmworkers cannot afford to reduce their reliance on carbon-intensive energy sources. In addition, energy consumption in homes owned by farmworkers is often higher than average, because there are generally larger numbers of individuals per household. This bill is intended to create a program specifically targeted towards making farmworker housing energy efficient.

According to the Author:

Agriculture is a large part of the economy throughout many parts of California. While at one time farmworker populations were characterized by their mobility, today they have become much more stable and permanent in the agricultural regions of the state. People can often be living in close quarters with extended family and more than often do not have the quality of infrastructure to support the health of the community. With new funding for farmworker housing becoming available, it will be important to ensure older farmworker housing is not left behind in making energy efficient improvements.

Arguments in Support:

Supporters of this bill state that because farm worker communities are located in rural, hard to reach areas, energy costs are higher than average. Without additional resources, it is impossible for these low-income families to make their homes energy efficient, which exacerbates their economic hardships. This bill also helps the state achieve its energy efficiency goals and greenhouse gas reduction goals.

Arguments in Opposition:

None

FISCAL COMMENTS:

According to the Senate Appropriations Committee:

1. Unknown costs and cost pressures, likely in the range of $10 million to $20 million annually, to fund the Program. The bill does not specify a funding source, and it would either require new funding or a redirection of existing funds currently provided to CSD for the Low Income Weatherization Program. Any redirection of existing resources for the Program would result in cost pressures to provide additional funding for households in other disadvantaged communities. (Greenhouse Gas Reduction Fund [GGRF] or General Fund)
2. Unknown, ongoing CSD administrative costs, the amount of which would depend upon available Program funding. CSD indicates that these annual costs could be as high as $2 million if the Program is funded at $15.5 million. (GGRF or General Fund)
3. Minor and absorbable costs for the California Public Utilities Commission (CPUC) and California Energy Commission (CEC) to advise CSD in developing the Program.

VOTES:

ASM NATURAL RESOURCES: 11-0-0

YES: Friedman, Flora, Chau, Eggman, Cristina Garcia, Limón, Mathis, McCarty, Melendez, Muratsuchi, Mark Stone

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

ASSEMBLY FLOOR: 77-0-3

YES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Obernolte, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wood, Rendon

ABS, ABST OR NV: Brough, Cooley, Wicks

SENATE FLOOR: 36-2-2

YES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dahle, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Leyva, McGuire, Mitchell, Monning, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener, Wilk

NO: Jones, Stone

ABS, ABST OR NV: Moorlach, Morrell

ASSEMBLY FLOOR: 79-0-0

YES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Brough, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wicks, Wood, Rendon

UPDATED:

VERSION: September 10, 2019

CONSULTANT: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0002510

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 386

Author:(Eduardo Garcia)

As Amended Ver:August 13, 2019

Majority vote

SUMMARY:

Establishes the Agricultural Working Poor Energy Efficient Housing Program (Program) within the Department of Community Services and Development (CSD).

The Senate Amendments:

Remove the installation of battery backups from the list of activities eligible for funding.

COMMENTS:

This bill establishes the Program, to be administered by CSD. The purpose of the Program is to improve energy efficiency in farmworker housing. The author reports that California’s 800,000 low-income farmworkers cannot afford to reduce their reliance on carbon-intensive energy sources. In addition, energy consumption in homes owned by farmworkers is often higher than average, because there are generally larger numbers of individuals per household. This bill is intended to create a program specifically targeted towards making farmworker housing energy efficient.

According to the Author:

Agriculture is a large part of the economy throughout many parts of California. While at one time farmworker populations were characterized by their mobility, today they have become much more stable and permanent in the agricultural regions of the state. People can often be living in close quarters with extended family and more than often do not have the quality of infrastructure to support the health of the community. With new funding for farmworker housing becoming available, it will be important to ensure older farmworker housing is not left behind in making energy efficient improvements.

Arguments in Support:

Supporters of this bill state that because farm worker communities are located in rural, hard to reach areas, energy costs are higher than average. Without additional resources, it is impossible for these low-income families to make their homes energy efficient, which exacerbates their economic hardships. This bill also helps the state achieve its energy efficiency goals and greenhouse gas reduction goals.

Arguments in Opposition:

None

FISCAL COMMENTS:

According to the Senate Appropriations Committee:

1. Unknown costs and cost pressures, likely in the range of $10 million to $20 million annually, to fund the Program. The bill does not specify a funding source, and it would either require new funding or a redirection of existing funds currently provided to CSD for the Low Income Weatherization Program. Any redirection of existing resources for the Program would result in cost pressures to provide additional funding for households in other disadvantaged communities. (Greenhouse Gas Reduction Fund [GGRF] or General Fund)
2. Unknown, ongoing CSD administrative costs, the amount of which would depend upon available Program funding. CSD indicates that these annual costs could be as high as $2 million if the Program is funded at $15.5 million. (GGRF or General Fund)
3. Minor and absorbable costs for the California Public Utilities Commission (CPUC) and California Energy Commission (CEC) to advise CSD in developing the Program.

VOTES:

ASM NATURAL RESOURCES: 11-0-0

YES: Friedman, Flora, Chau, Eggman, Cristina Garcia, Limón, Mathis, McCarty, Melendez, Muratsuchi, Mark Stone

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

ASSEMBLY FLOOR: 77-0-3

YES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Obernolte, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wood, Rendon

ABS, ABST OR NV: Brough, Cooley, Wicks

SENATE FLOOR: 36-2-2

YES: Allen, Archuleta, Atkins, Bates, Beall, Borgeas, Bradford, Caballero, Chang, Dahle, Dodd, Durazo, Galgiani, Glazer, Lena Gonzalez, Grove, Hertzberg, Hill, Hueso, Hurtado, Jackson, Leyva, McGuire, Mitchell, Monning, Nielsen, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener, Wilk

NO: Jones, Stone

ABS, ABST OR NV: Moorlach, Morrell

UPDATED:

VERSION: August 13, 2019

CONSULTANT: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0001821

 THIRD READING  

Bill No: AB 386

Author: Eduardo Garcia (D), et al.

Amended: 8/13/19 in Senate

Vote: 21

SENATE HOUSING COMMITTEE: 9-1, 7/2/19

AYES: Wiener, Bates, Caballero, Durazo, McGuire, Roth, Skinner, Umberg, Wieckowski

NOES: Morrell

NO VOTE RECORDED: Moorlach

SENATE ENERGY, U. & C. COMMITTEE: 11-1, 7/10/19

AYES: Hueso, Bradford, Chang, Dodd, Hertzberg, Hill, McGuire, Rubio, Skinner, Stern, Wiener

NOES: Stone

NO VOTE RECORDED: Moorlach

SENATE APPROPRIATIONS COMMITTEE: 6-1, 8/30/19

AYES: Portantino, Bates, Bradford, Durazo, Hill, Wieckowski

NOES: Jones

ASSEMBLY FLOOR: 77-0, 5/30/19 - See last page for vote

SUBJECT: Agricultural Working Poor Energy Efficient Housing Program

SOURCE: Central Valley Opportunity Center

La Cooperative Campesina de California

DIGEST:

This bill establishes the Agricultural Working Poor Energy Efficient Housing Program and requires it to be administered by the Department of Community Services and Development (CSD).

ANALYSIS:

Existing law:

1. Establishes the Joe Serna Jr. Farmworker Housing Grant Program, which authorizes the Department of Housing and Community Development (HCD) to provide financing for new construction, rehabilitation, and acquisition of owner-occupied and rental units for agricultural workers, with priority given to low income households.
   
2. Tasks CSD with implementing several types of federal assistance to help low-income households meet their energy needs, including:
   1. The Low-Income Home Energy Assistance Program, which provides one-time financial assistance to help offset an eligible applicant's energy costs;
   2. The Energy Crisis Intervention Program, which provides assistance to low-income households that are in a crisis situation due to receiving a termination notice or an energy-related life-threatening emergency, such as a malfunctioning heater; and,
   3. The Weatherization Assistance Program, which provides free energy efficiency upgrades to low-income households.

This bill:

1. Directs CSD to develop and administer the Agricultural Working Poor Energy Efficient Housing Program by expending moneys appropriated by the Legislature to improve energy efficiency in farmworker housing.
2. Specifies that program funds are to be used to fund energy-efficient projects including, but not limited to, the following:
3. Weatherization of homes and other residences;
4. Replacement of energy inefficient appliances with Energy Star-certified appliances;
5. Replacement of lighting with light-emitting diode, commonly known as LED, lighting; and
6. Installation of photovoltaic solar panels and solar water heating systems and bringing farmworker housing into compliance to allow installation of those systems.
7. Directs CSD, when distributing program funding, to give preference to an association of federally designated farmworker organizations and other organizations that have a proven track record of assisting farmworkers.
8. Establishes a number of program requirements, including that CSD consult with the California Public Utilities Commission and the California Energy Commission in developing the program to avoid duplication with the energy-efficiency programs supervised by those commissions, and that CSD submit a report to the Legislature on program performance, as specified.

Comments

1. Purpose of the bill. According to the author, “Agriculture is a large part of the economy throughout many parts of California. While at one time farmworker populations were characterized by their mobility, today they have become much more stable and permanent in the agricultural regions of the state. People can often be living in close quarters with extended family and more than often do not have the quality of infrastructure to support the health of the community. With new funding for farmworker housing becoming available, it will be important to ensure older farmworker housing is not left behind in making energy efficient improvements.”
2. CSD energy assistance programs. CSD administers three low-income energy assistance programs: the federal Low Income Home Energy Assistance Program, the Weatherization Assistance Program, and the state-funded Low Income Weatherization Program (LIWP). Each of the three weatherization programs administered by CSD provides energy-efficiency services to eligible low-income households, both homeowners and renters, by installing a range of weatherization upgrades to reduce energy usage, improve resident comfort, and provide monetary savings to the residents. Residents are also educated on basic energy-efficiency practices and on the proper use and maintenance of the appliances and measures installed.  In addition, with revenues from the Greenhouse Gas Reduction Fund, CSD also administers, through LIWP, funds for the installation of rooftop solar photovoltaic systems and solar water heaters in low-income single-family and multi-family households located within disadvantaged communities.

The CSD reports that it contracts with a network of private, nonprofit, and local government community-based organizations to provide for the local administration of grant programs and delivery of service to eligible low-income households.  Each program has an income-eligibility requirement ranging from 60% state median income to 80% area median income, depending on the program.

1. Additional state energy assistance programs. In addition to the low-income energy assistance programs described above, HCD administers the Joe Serna, Jr. Farmworker Housing Grant program, which provides financing for the new construction, rehabilitation, and acquisition of owner-occupied and rental units for agricultural workers, with a priority for lower income households. Proposition 1, passed by the voters in November 2018, authorized the investment of $300 million in general obligation bonds in this program.
2. Improving farmworker housing conditions. This bill proposes to create the Agricultural Working Poor Energy Efficient Housing Program, to be administered by CSD. The purpose of the new program is to improve energy efficiency in farmworker housing. The author reports that California’s 800,000 low-income farmworkers cannot afford to reduce their reliance on carbon-intensive energy sources. In addition, energy consumption in homes owned by farmworkers is often higher than average, because there are generally larger numbers of individuals per household. This bill is intended to create a program specifically targeted towards making farmworker housing energy efficient.
3. If at first you don’t succeed. This bill is substantially similar to AB 2715 (E. Garcia) from 2016. That bill was held in the Senate Appropriations Committee.

Related/Prior Legislation

AB 2715 (E. Garcia, 2016) would have established the Agricultural Working Poor Energy Efficient Housing Program and requires it to be administered by the Department of Community Services and Development (CSD). This bill was held in the Senate Appropriations Committee.

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

According to the Senate Appropriations Committee:

• Unknown costs and cost pressures, likely in the range of $10 million to $20 million annually, to fund the Program. The bill does not specify a funding source, and it would either require new funding or a redirection of existing funds currently provided to CSD for the Low Income Weatherization Program. Any redirection of existing resources for the Program would result in cost pressures to provide additional funding for households in other disadvantaged communities. (Greenhouse Gas Reduction Fund [GGRF] or General Fund)
• Unknown ongoing CSD administrative costs, the amount of which would depend upon available Program funding. CSD indicates that these annual costs could be as high as $2 million if the Program is funded at $15.5 million (the amount currently available for the Farmworker Housing Component of a similar program, as noted below). (GGRF or General Fund)
• Minor and absorbable costs for the California Public Utilities Commission (CPUC) and California Energy Commission (CEC) to advise CSD in developing the Program.

SUPPORT: (Verified 8/30/19)

Central Valley Opportunity Center (co-source)
La Cooperative Campesina de California (co-source)

American Federation of State, County And Municipal Employees, AFL-CIO
California Efficiency + Demand Management Council 

California Human Development

Proteus Inc.

OPPOSITION: (Verified 8/30/19)

None received

ASSEMBLY FLOOR: 77-0, 5/30/19

AYES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Diep, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Brough, Cooley, Wicks

Prepared by: Alison Hughes / HOUSING / (916) 651-4124

9/1/19 9:46:10

**** END ****

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

AB 386 (Eduardo Garcia) - Agricultural Working Poor Energy Efficient Housing Program

Bill Summary:

AB 386 would establish the Agricultural Working Poor Energy Efficient Housing Program (Program) within the Department of Community Services and Development (CSD) to improve energy efficiency in farmworker housing.

Fiscal Impact:

• Unknown costs and cost pressures, likely in the range of $10 million to $20 million annually, to fund the Program. The bill does not specify a funding source, and it would either require new funding or a redirection of existing funds currently provided to CSD for the Low Income Weatherization Program. Any redirection of existing resources for the Program would result in cost pressures to provide additional funding for households in other disadvantaged communities. (Greenhouse Gas Reduction Fund [GGRF] or General Fund)
  
• Unknown ongoing CSD administrative costs, the amount of which would depend upon available Program funding. CSD indicates that these annual costs could be as high as $2 million if the Program is funded at $15.5 million (the amount currently available for the Farmworker Housing Component of a similar program, as noted below). (GGRF or General Fund)
  
• Minor and absorbable costs for the California Public Utilities Commission (CPUC) and California Energy Commission (CEC) to advise CSD in developing the Program.

Background:

California currently offers several programs for low-income residents, including the following three low-income energy assistance programs administered by the CSD: the federal Low Income Home Energy Assistance Program (LIHEAP), the Weatherization Assistance Program (WAP), and the state-funded Low Income Weatherization Program (LIWP). Each of the three weatherization programs administered by CSD provides energy-efficiency services to eligible low-income households, both homeowners and renters, by installing a range of weatherization upgrades to reduce energy usage, improve resident comfort, and provide monetary savings to the residents. To administer these programs, the CSD contracts with a network of private, nonprofit, and local government community-based organizations to provide for the local administration of grant programs and delivery of service to eligible low-income households. 

There are an estimated 500,000 to 800,000 farmworkers in California. This population is particularly vulnerable because of seasonal employment and low wages, which results in farmworker households paying a larger portion of income on home energy expenses than other groups. The CSD has recently developed and implemented a Farmworker Housing Component of the LIWP that focuses on the direct installation of energy efficiency measures and photovoltaic (PV) systems for farmworker households. The program provides services across the following 12 counties with the highest farmworker populations, beginning in 2019: Imperial, Fresno, Kern, Madera, Merced, Monterey, Riverside, San Joaquin, Santa Barbara, Stanislaus, Tulare, and Ventura. CSD has allocated a total of $10.5 million to the LIWP’s Farmworker Component (from 2017-18 and 2018-19 budget allocations), and an additional $5 million from the LIWP’s Multifamily Program Component is dedicated to multifamily properties that serve farmworker households.

Proposed Law:

AB 386 would require CSD to develop and administer the Program and require moneys appropriated for the Program to be used to improve energy efficiency in farmworker housing, including the following purposes:

• Weatherization of homes and other residences.
• Replacement of energy inefficient appliances with Energy Star-certified appliances.
• Replacement of lighting with light-emitting diode (LED) lighting.
• Installation of PV solar panels and solar water heating systems, and bringing farmworker housing into building code compliance to allow those installations.

The bill would also require CSD to do the following:

• Develop program requirements and guidelines, including income eligibility limits. The bill authorizes CSD to develop sub-grantee contract provisions.
• Give preference to specified organizations that have a proven record of assisting farmworkers when distributing Program funds.
• Consult with the CPUC and CEC in developing the program to ensure compatibility with state energy policies and goals, and to avoid duplication with other programs.
• Post the draft guidelines on CSD’s website at least 30 days before finalizing those guidelines, and hold a hearing to obtain public input, as specified.
• Report specified information on Program expenditures, households served, and estimated energy savings by January 1 of the third calendar year following the receipt of funding.

Related Legislation:

AB 2715 (E. Garcia), which was held on this Committee’s Suspense File in 2016, was nearly identical to this bill.

Staff Comments:

The author indicates that AB 386 is intended to codify the existing Farmworker Housing Component of the LIWP. The LIWP has previously been financed through appropriations of GGRF funds and CSD received a $10 million GGRF allocation in the 2019 Budget Act for low-income weatherization expenditures. Additionally, CSD has recently announced the development of a Farmworker Housing Component in the existing LIWP with an initial funding level of $15.5 million. As noted above, this bill would require either new funding for the Program, or a redirection of funding from the existing LIWP. This would limit CSD’s flexibility to allocate funding where there are the greatest needs statewide, and may result in the diversion of funding for weatherization and solar PV projects in other disadvantaged communities.

-- END --

SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS

Senator Ben Hueso, Chair

2019 - 2020 Regular

Bill No: AB 386 Hearing Date: 7/10/2019

SUBJECT: Agricultural Working Poor Energy Efficient Housing Program

DIGEST: This bill establishes the Agricultural Working Poor Energy Efficient Housing Program to improve energy efficiency in farmworker housing and requires it to be administered by the Department of Community Services and Development (CSD).

ANALYSIS:

Existing law:

1. Establishes the Joe Serna Jr. Farmworker Housing Grant Program, which authorizes the Department of Housing and Community Development (HCD) to provide financing for new construction, rehabilitation, and acquisition of owner-occupied and rental units for agricultural workers, with priority given to low-income households. (Health and Safety Code §§50515.2-50517.10)
   
2. Tasks CSD with implementing several types of federal assistance to help low- income households meet their energy needs. (Government Code §§12085-12091 and 16366.1-16367.8)
   
3. Establishes a charge on electricity and natural gas consumption to fund cost-effective energy efficiency and conservation activities. (Public Utilities Code §§381 and 890)
   

This bill:

1. Directs CSD to develop and administer the Agricultural Working Poor Energy Efficient Housing Program by expending moneys appropriated by the Legislature to improve energy efficiency in farmworker housing.
   
2. Specifies that program funds are to be used to fund energy-efficient projects including, but not limited to, the following:
   1. Weatherization of homes and other residences;
   2. Replacement of energy inefficient appliances with Energy Star-certified appliances;
   3. Replacement of lighting with light-emitting diode, commonly known as LED, lighting;
   4. Installation of photovoltaic solar panels and solar water heating systems and bringing farmworker housing into compliance to allow installation of those systems;
   5. Installation of battery backups.
3. Directs CSD, when distributing program funding, to give preference to an association of federally designated farmworker organizations and other organizations that have a proven track record of assisting farmworkers.
   
4. Establishes a number of program requirements, including that CSD consult with the California Public Utilities Commission (CPUC) and the California Energy Commission (CEC) in developing the program to avoid duplication with the energy-efficiency programs supervised by those commissions, and that CSD submit a report to the Legislature on program performance, as specified.

Background

Energy assistance programs for low income Californians. California currently offers several programs for low-income residents, some administered by the CSD, others by the state’s investor-owned utilities (IOUs). The table below summarizes existing assistance programs. CSD administers three low-income energy assistance programs: the federal Low Income Home Energy Assistance Program (LIHEAP), the Weatherization Assistance Program (WAP), and the state-funded Low Income Weatherization Program (LIWP). Each of the three weatherization programs administered by CSD provides energy-efficiency services to eligible low-income households, both homeowners and renters, by installing a range of weatherization upgrades to reduce energy usage, improve resident comfort, and provide monetary savings to the residents. To administer these programs, the CSD reports that it contracts with a network of private, nonprofit, and local government community-based organizations to provide for the local administration of grant programs and delivery of service to eligible low-income households.  Each program has an income-eligibility requirement ranging from 60 percent state median income to 80 percent area median income, depending on the program.

The Energy Savings Assistance (ESA) program provides no-cost weatherization services to low-income households who meet the California Alternate Rates for Energy (CARE) Program income guidelines (see table below). Services provided include attic insulation, energy efficient refrigerators, energy efficient furnaces, weather-stripping, caulking, low-flow showerheads, water heater blankets, and door and building envelope repairs, which reduce air infiltration. The ESA program is available to IOU customers, whether they are homeowners or renters.

The CARE program provides a monthly discount on energy bills for qualifying residential single-family households, tenants of sub-metered residential facilities, nonprofit group living facilities, agricultural employee housing facilities and migrant farm worker housing centers. Program participants receive a 30-35 percent discount on their electric bills and a 20 percent discount on their natural gas bills.

Family Electric Rate Assistance (FERA) program. Families whose household income slightly exceeds the CARE allowance (up to 250 percent of federal poverty) qualify to receive FERA discounts. Unlike CARE, FERA applies a discount of 18 percent to customers of the state’s three largest electric utilities – Southern California Edison (SCE), San Diego Gas and Electric Company (SDG&E), and Pacific Gas & Electric Company (PG&E). FERA was established through a CPUC decision, involving the IOUs and ratepayer organizations, and codified in statute last year in SB 1135 (Bradford, Chapter 413, Statutes of 2018). FERA is an effort to help families which might have incomes that are just above the income eligibility for CARE, but which likely still experience hardships paying their utility bills. However, unlike CARE customers, FERA customers are not eligible for the energy savings assistance program to provide subsidized weatherization and other energy efficiency upgrades to help reduce the customer’s energy load. Additionally, unlike CARE, FERA enrollment participation rates are low across the board for all three utilities.

Is there a need for a farmworker specific energy program? In addition to the low-income energy assistance programs described above, California also offers the Joe Serna, Jr. Farmworker Housing Grant program. Administered by HCD, the program provides financing for the new construction, rehabilitation and acquisition of owner-occupied and rental units for agricultural workers, with a priority for lower-income households. As this bill’s author and supporters have noted, the challenges facing agricultural workers are exceedingly difficult. It is estimated that there are upwards of 500,000 -800,000 farmworkers in California, accounting for more than a third of the total US workforce. Farmworker communities are primarily located in rural, hard to reach areas. Many of the state’s agricultural hubs such as the Central and Imperial Valleys can routinely reach temperatures of over 100 degrees Fahrenheit during summer months, leading to higher than average energy consumption.

The National Agricultural Workers Survey (NAWS) is an employment-based, random- sample survey of U.S. crop workers that collects demographic, employment, and health data in face-to-face interviews. The most recent information obtained by the Department of Labor in 2016 noted 33 percent of farmworkers living in overcrowded dwellings, with the same number also having family incomes below the federal poverty line. The HCD has also identified farmworkers as a “special needs” housing group due to high rates of poverty, low rates of home ownership and that farmworkers disproportionately live in the poorest housing conditions. While it is apparent that many agricultural workers should qualify for the existing income-based programs, the percentage of farmworkers in 2016 who reported utilizing any need-based program was under 55 percent. According to the author, existing programs have had limited success in reaching low-income farmworker housing, thus prompting the need for farm worker specific programming.

Program funding and implementation. The current language does not specify a funding source for the proposed program. The LIWP has been financed through appropriations of GGRF funds in previous years and CSD has received a 10 million dollar allocation under the Budget Act of 2019. Additionally, CSD has recently announced the development of a Farmworker Housing Component in the existing LIWP. While this program is still pending with specifics unknown, CSD’s website indicates a launch in the summer of 2019. Although this bill incorporates language requiring that CSD consult with both the CPUC and CEC to avoid duplication, this committee may wish to consider whether this bill is still needed given the forthcoming program.

Need for amendments. This bill includes backup power as an eligible project type. However, it is unclear what form of back up power is being requested and at what cost. Given the lack of information, the author and committee may wish to strike this language from this bill.

Dual referral. This bill passed out of the Senate Committee on Housing July 2^nd on a 9-1 vote.

Prior/Related Legislation

SB 1135 (Bradford, Chapter 413, Statutes of 2018) codified the requirements of an existing low-income electric rate discount program, known as the FERA program, for the state’s three largest electrical corporations and increase the program discount from 12 percent to18 percent line-item discount on a customer’s electric utility bill.

AB 2715 (E. Garcia, 2016) would have established the Agricultural Working Poor Energy Efficient Housing Program and requires it to be administered by the CSD. The bill died in the Senate Committee on Appropriations.

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

SUPPORT:

La Cooperativa Campesina de California (Sponsor)

American Federation of State, County and Municipal Employees, AFL-CIO

California Efficiency + Demand Management Council

California Human Development

Central Valley Opportunity Center

Proteus, Inc.

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: The California Efficiency + Demand Management Council writes in support saying, “In a study released in 2018, UC Riverside cited the poor mental and physical health in rural borderland communities such as the Eastern Coachella Valley, noting substandard housing and poor infrastructure.

Energy Efficiency can be used to improve the quality of life for people in communities like Eastern Coachella Valley, building climate efficiency, lighting, and overall comfort, as well as modernizing appliances- all while reducing utility bills. This bill will provide another tool to improve living conditions in older homes and improve the lives of [the] state’s agricultural working poor.”

-- END --

SENATE COMMITTEE ON HOUSING

Senator Scott Wiener, Chair

2019 - 2020 Regular

Bill No: AB 386 Hearing Date: 7/2/2019

SUBJECT: Agricultural Working Poor Energy Efficient Housing Program

DIGEST: This bill establishes the Agricultural Working Poor Energy Efficient Housing Program and requires it to be administered by the Department of Community Services and Development (CSD).

ANALYSIS:

Existing law:

1. Establishes the Joe Serna Jr. Farmworker Housing Grant Program, which authorizes the Department of Housing and Community Development (HCD) to provide financing for new construction, rehabilitation, and acquisition of owner-occupied and rental units for agricultural workers, with priority given to low income households.
   
2. Tasks CSD with implementing several types of federal assistance to help low-income households meet their energy needs, including:
   
   1. The Low-Income Home Energy Assistance Program, which provides one-time financial assistance to help offset an eligible applicant's energy costs;
   2. The Energy Crisis Intervention Program, which provides assistance to low-income households that are in a crisis situation due to receiving a termination notice or an energy-related life-threatening emergency, such as a malfunctioning heater; and,
   3. The Weatherization Assistance Program, which provides free energy efficiency upgrades to low-income households.

This bill:

1. Directs CSD to develop and administer the Agricultural Working Poor Energy Efficient Housing Program by expending moneys appropriated by the Legislature to improve energy efficiency in farmworker housing.
2. Specifies that program funds are to be used to fund energy-efficient projects including, but not limited to, the following:
3. Weatherization of homes and other residences;
4. Replacement of energy inefficient appliances with Energy Star-certified appliances;
5. Replacement of lighting with light-emitting diode, commonly known as LED, lighting;
6. Installation of photovoltaic solar panels and solar water heating systems and bringing farmworker housing into compliance to allow installation of those systems;
7. Installation of battery backups.
8. Directs CSD, when distributing program funding, to give preference to an association of federally designated farmworker organizations and other organizations that have a proven track record of assisting farmworkers.
9. Establishes a number of program requirements, including that CSD consult with the California Public Utilities Commission (CPUC) and the California Energy Commission (CEC) in developing the program to avoid duplication with the energy-efficiency programs supervised by those commissions, and that CSD submit a report to the Legislature on program performance, as specified.

COMMENTS

1. Purpose of the bill. According to the author, “Agriculture is a large part of the economy throughout many parts of California. While at one time farmworker populations were characterized by their mobility, today they have become much more stable and permanent in the agricultural regions of the state. People can often be living in close quarters with extended family and more than often do not have the quality of infrastructure to support the health of the community. With new funding for farmworker housing becoming available, it will be important to ensure older farmworker housing is not left behind in making energy efficient improvements.”
2. CSD energy assistance programs. CSD administers three low-income energy assistance programs: the federal Low Income Home Energy Assistance Program (LIHEAP), the Weatherization Assistance Program (WAP), and the state-funded Low Income Weatherization Program (LIWP). Each of the three weatherization programs administered by CSD provides energy-efficiency services to eligible low-income households, both homeowners and renters, by installing a range of weatherization upgrades to reduce energy usage, improve resident comfort, and provide monetary savings to the residents. Residents are also educated on basic energy-efficiency practices and on the proper use and maintenance of the appliances and measures installed.  In addition, with revenues from the Greenhouse Gas Reduction Fund, CSD also administers, through LIWP, funds for the installation of rooftop solar photovoltaic systems and solar water heaters in low-income single-family and multi-family households located within disadvantaged communities.

The CSD reports that it contracts with a network of private, nonprofit, and local government community-based organizations to provide for the local administration of grant programs and delivery of service to eligible low-income households.  Each program has an income-eligibility requirement ranging from 60% state median income to 80% area median income, depending on the program.

1. Additional state energy assistance programs. In addition to the low-income energy assistance programs described above, HCD administers the Joe Serna, Jr. Farmworker Housing Grant program, which provides financing for the new construction, rehabilitation, and acquisition of owner-occupied and rental units for agricultural workers, with a priority for lower income households. Proposition 1, passed by the voters in November 2018, authorized the investment of $300 million in general obligation bonds in this program.
2. Improving farmworker housing conditions. This bill proposes to create the Agricultural Working Poor Energy Efficient Housing Program, to be administered by CSD. The purpose of the new program is to improve energy efficiency in farmworker housing. The author reports that California’s 800,000 low-income farmworkers cannot afford to reduce their reliance on carbon-intensive energy sources. In addition, energy consumption in homes owned by farmworkers is often higher than average, because there are generally larger numbers of individuals per household. This bill is intended to create a program specifically targeted towards making farmworker housing energy efficient.
3. If at first you don’t succeed. This bill is substantially similar to AB 2715 (E. Garcia) from 2016. That bill was held in the Senate Appropriations Committee.
4. Double-referral. This bill is referred to the Energy, Utilities, and Communications Committee.

Related Legislation:

AB 2715 (E. Garcia, 2016) — would have established the Agricultural Working Poor Energy Efficient Housing Program and requires it to be administered by the Department of Community Services and Development (CSD). This bill was held in the Senate Appropriations Committee.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

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

June 26, 2019.)

SUPPORT:

La Cooperative Campesina de California (Sponsor)

American Federation of State, County and Municipal Employees, AFL-CIO

California Efficiency + Demand Management Council

Proteus Inc

OPPOSITION:

None received.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 386

Author:(Eduardo Garcia)

As Amended Ver:March 5, 2019

Majority vote

SUMMARY:

This bill establishes the Agricultural Working Poor Energy Efficient Housing Program (Program) within the Department of Community Services and Development (CSD).

Major Provisions

1. Requires the Program be used to improve energy efficiency in farmworker housing, including: a) weatherization of homes and other residences; b) replacement of energy inefficient appliances with Energy Star certified appliances; c) replacement of lighting with light emitting diode (LED) lighting; d) installation of photovoltaic solar panels and solar water heating systems and compliance with building codes; and e) installation of battery backups. Authorizes CSD to develop requirements, guidelines, and subgrantee contract provisions for the Program.
2. Requires CSD to give preference to an association of federally designated farmworker organizations and other organizations that have a proven track record of assisting farmworkers.

COMMENTS:

CSD partners with a network of private, non-profit and local government community service providers dedicated to helping low-income families achieve and maintain self-sufficiency, meet their home energy needs and reside in housing free from the dangers of lead hazards.

CSD has received $202 million from the Greenhouse Gas Reduction Fund (GGRF) for low-income weatherization programs. According to the author, CSD efforts to reach farmworkers for these programs have not been successful. While the farmworker population was once characterized by its mobility, today it has become much more stable in the agricultural areas of the state. Energy consumption in homes owned by farmworkers is often higher than average, because there are generally larger numbers of individuals per household. According to the National Agricultural Workers Survey conducted by the United States Department of Labor, approximately 15% of California's farmworkers own homes.

According to CalEPA, 31% of all GGRF investments to date, excluding high speed rail, have been spent on projects located in disadvantaged communities, and 51% of GGRF spending has benefitted disadvantaged communities. Much of California's farmworker housing is located in areas identified by CalEnviroScreen as disadvantaged.

Now that the CSD energy efficiency programs are focused solely on farmworker housing, the committee may wish to consider whether this bill is duplicative of the current program

According to the Author:

Agriculture remains a huge part of the economy throughout many parts of California. In order to maintain this economy, between 500,000-800,000 individuals are employed in the industry. Yet these families often face tremendous obstacles from educational challenges for their children based on the growing season to overcrowding and aging housing facilities.

While at one time farmworker population was characterized by its mobility, today it has become much more stable and permanent in the agricultural areas of the State. Many farmworkers are located in rural hard to reach areas. Energy consumption in their homes is higher than average because of the larger number of individuals per household.

California's 800,000 low-income farmworkers cannot afford to reduce their reliance on carbon intensive energy sources. Without additional resources and assistance, it will be especially impossible for farmworkers, to make the expensive investments in retrofitting homes for increased energy efficiency, fuel-efficient cars and other low carbon infrastructure and/or technologies.

Arguments in Support:

Supporters of this bill state that because farm worker communities are located in rural, hard to reach areas, energy costs are higher than average. Without additional resources, it is impossible for these low-income families to make their homes energy efficient, which exacerbates their economic hardships. This bill also helps the state achieve its energy efficiency goals and greenhouse gas reduction goals.

Arguments in Opposition:

None

FISCAL COMMENTS:

According the Assembly Appropriations Committee:

1. Unknown costs pressures, likely in the range of $10 million to $30 million, to fund the Program. This bill does not specify a funding source, however the current-year budget redirected $10.5 million GGRF from CSD's energy efficiency program to farmworker housing, which was the total of the existing program's funding.
2. Unknown increased CSD annual administrative costs. Actual costs will depend on the size of the program. The smaller the grant program, the larger the percentage of administrative costs. Large grant programs can be administered at 5% of the program total, but small programs require larger percentages for administration.
3. Unknown, likely absorbable, costs for the CPUC to advise CSD in developing the program to avoid duplicating existing programs.

VOTES:

ASM NATURAL RESOURCES: 11-0-0

YES: Friedman, Flora, Chau, Eggman, Cristina Garcia, Limón, Mathis, McCarty, Melendez, Muratsuchi, Mark Stone

ASM APPROPRIATIONS: 18-0-0

YES: Gonzalez, Bigelow, Bloom, Bonta, Brough, Calderon, Carrillo, Chau, Diep, Eggman, Fong, Gabriel, Eduardo Garcia, Maienschein, Obernolte, Petrie-Norris, Quirk, Robert Rivas

UPDATED:

VERSION: March 5, 2019

CONSULTANT: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0000481

Date of Hearing: April 10, 2019

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 386

Author:(Eduardo Garcia) – As Amended Ver:March 5, 2019

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

SUMMARY:

This bill establishes the Agricultural Working Poor Energy Efficient Housing Program (Program) within the Department of Community Services and Development (CSD). Specifically, this bill:

1. Requires the Program be used to improve energy efficiency in farmworker housing, including: (a) weatherization of homes and other residences; (b) replacement of energy inefficient appliances with Energy Star certified appliances; (c) replacement of lighting with light emitting diode (LED) lighting; (d) installation of photovoltaic solar panels and solar water heating systems and compliance with building codes; and (e) installation of battery backups. Authorizes CSD to develop requirements, guidelines, and subgrantee contract provisions for the Program.
2. Requires CSD to give preference to an association of federally designated farmworker organizations and other organizations that have a proven track record of assisting farmworkers.
3. Requires CSD consult with the California Public Utilities Commission (CPUC) in developing the program in order to avoid duplication with its energy efficiency programs.
4. Requires CSD to post draft guidelines and hold a properly noticed public hearing, as specified.

FISCAL EFFECT:

1. Unknown costs pressures, likely in the range of $10 million to $30 million, to fund the Program. This bill does not specify a funding source, however the current-year budget redirected $10.5 million GGRF from CSD’s energy efficiency program to farmworker housing, which was the total of the existing program’s funding.
2. Unknown increased CSD annual administrative costs. Actual costs will depend on the size of the program. The smaller the grant program, the larger the percentage of administrative costs. Large grant programs can be administered at 5% of the program total, but small programs require larger percentages for administration.
3. Unknown, likely absorbable, costs for the CPUC to advise CSD in developing the program to avoid duplicating existing programs.

COMMENTS:

1. Purpose. According to the author, California's 800,000 low-income farmworkers cannot afford to reduce their reliance on carbon intensive energy sources. Without additional resources and assistance, it will be especially difficult for farmworkers, who are very low-income because of seasonal employment and low wages, to make the expensive investments in retrofitting homes for increased energy efficiency, fuel-efficient cars, and other low carbon infrastructure and/or technologies. This bill provides a program specifically targeted towards making farmworker housing energy efficient.
2. Background. CSD partners with a network of private, non-profit and local government community service providers dedicated to helping low-income families achieve and maintain self-sufficiency, meet their home energy needs and reside in housing free from the dangers of lead hazards.

CSD has received $202 million from the AB 32 cap-and-trade revenues (GGRF) for low-income weatherization programs. According to the author, CSD efforts to reach farmworkers for these programs have not been successful. While the farmworker population was once characterized by its mobility, today it has become much more stable in the agricultural areas of the state. Energy consumption in homes owned by farmworkers is often higher than average, because there are generally larger numbers of individuals per household. According to the National Agricultural Workers Survey conducted by the US Department of Labor, approximately 15% of California's farmworkers own homes.

According to CalEPA, 31% of all GGRF investments to date, excluding high speed rail, have been spent on projects located in disadvantaged communities, and 51% of GGRF spending has benefitted disadvantaged communities. Much of California's farmworker housing is located in areas identified by CalEnviroScreen as disadvantaged.

Now that the CSD energy efficiency programs are focused solely on farmworker housing, the committee may wish to consider whether this bill is duplicative of the current program.

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

Date of Hearing: March 25, 2019

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Laura Friedman, Chair

ABPCA Bill Id:AB 386 (

Author:Eduardo Garcia) – As Amended Ver:March 5, 2019

SUBJECT: Agricultural Working Poor Energy Efficient Housing Program

SUMMARY: Establishes the Agricultural Working Poor Energy Efficient Housing Program (Program) within the Department of Community Services and Development (CSD).

EXISTING LAW:

1. Requires the Air Resources Board (ARB), pursuant to California Global Warming Solutions Act of 2006 [AB 32 (Nuñez), Chapter 488, Statutes of 2006], to adopt a statewide greenhouse gas (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.
   
2. 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.
   
3. 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 and establishes several policy objectives, including:
   
   1. Maximize economic, environmental, and public health benefits;
      
   2. Foster job creation;
      
   3. Complement efforts to improve air quality;
      
   4. Direct investment toward the most disadvantaged communities and households in the state;
      
   5. Provide opportunities for businesses, public agencies, nonprofits, and other community institutions to participate in and benefit from statewide efforts to reduce GHG emissions; and,
      
   6. Lessen the impacts and effects of climate change on the state's communities, economy, and environment.
      
4. Requires the investment plan to allocate (1) a minimum of 25% of the available moneys in the GGRF to projects that provide benefits to identified disadvantaged communities, and (2) a minimum of 10% of the available moneys in the GGRF to projects located within identified disadvantaged communities.
   
5. Establishes the Joe Serna Jr. Farmworker Housing Grant Program, which authorizes the Department of Housing and Community Development (HCD) to provide financing for new construction, rehabilitation, and acquisition of owner-occupied and rental units for agricultural workers, with priority given to low income households, including:
   
   1. Homeowner grants for rehabilitation or new home construction requiring lien restrictions for 20 years;
      
   2. Rental construction grants or loans requiring lien restrictions for 40 years; and,
      
   3. Rental rehabilitation grants or loans requiring lien restrictions for 20 years.
      
6. Tasks CSD with implementing several types of federal assistance to help low-income households meet their energy needs, including:
   
   1. The Home Energy Assistance Program, which provides one-time financial assistance to help offset an eligible applicant's energy costs;
      
   2. The Energy Crisis Intervention Program, which provides assistance to low-income households that are in a crisis situation due to receiving a termination notice or an energy-related life-threatening emergency, such as a malfunctioning heater; and,
      
   3. The Weatherization Assistance Program, which provides free energy efficiency upgrades to low-income households.
      

THIS BILL:

1. Requires CSD to develop and administer the Program.
2. Specifies that the Program be used to improve energy efficiency in farmworker housing, including:
   1. Weatherization of homes and other residences;
   2. Replacement of energy inefficient appliances with Energy Star certified appliances;
   3. Replacement of lighting with light emitting diode lighting;
   4. Installation of photovoltaic solar panels and solar water heating systems and bringing farmworker housing into building code compliance to allow the installation of those systems; and,
   5. Installation of battery backups.
3. Specifies that CSD give priority to "the association of federally designated farmworker organizations" and other organizations that have a proven track record of assisting farmworkers.
4. Authorizes CSD to develop requirements, guidelines, and subgrantee contract provisions for the Program.
5. Requires CSD to:
   1. Consult with the Public Utilities Commission (PUC) in developing the program in order to avoid duplication with those energy efficiency programs supervised by the PUC.
   2. No less than 30 days before finalizing the Program guidelines, post the draft guidelines on CSD's website and hold a public hearing to obtain public input no less than 15 days before the hearing.
   3. By January 1 of the third year following the program receiving funding, report to the budget committees and appropriate policy committees of the Legislature on program balances and expenditures, the number of households reached by the program, the demographics of households reached, a list of measures funded by the program, and an estimate of energy saved by the program.

FISCAL EFFECT: Unknown

COMMENTS:

1. Author’s statement:

Agriculture remains a huge part of the economy throughout many parts of California. In order to maintain this economy, between 500,000-800,000 individuals are employed in the industry. Yet these families often face tremendous obstacles from educational challenges for their children based on the growing season to overcrowding and aging housing facilities.

While at one time farmworker population was characterized by its mobility, today it has become much more stable and permanent in the agricultural areas of the State. Many farmworkers are located in rural hard to reach areas. Energy consumption in their homes is higher than average because of the larger number of individuals per household.

California’s 800,000 low-income farmworkers cannot afford to reduce their reliance on carbon intensive energy sources. Without additional resources and assistance, it will be especially impossible for farmworkers, to make the expensive investments in retrofitting homes for increased energy efficiency, fuel-efficient cars and other low carbon infrastructure and/or technologies.

1. Environmental justice. According to the Office of Environmental Health Hazard Assessment (OEHHA), approximately 8 million Californians (21%) live in zip codes that are

considered "highly impacted" by environmental, public health, and socioeconomic stressors.

Nearly half of all Californians live within six miles of a facility that is a significant

greenhouse gas emitter (46%), and they are disproportionately people of color (62%). Throughout California, people of color face a 50% higher risk of cancer from ambient concentrations of air pollutants listed under the Clean Air Act. These impacts are felt by all Californians. ARB estimates that air pollution exposure accounts for 19,000 premature deaths, 280,000 cases of asthma, and 1.9 million lost work days every year.

In 2000, legislation [SB 89 (Escutia), Chapter 728] required the California Environmental Protection Agency (CalEPA) to convene the Environmental Justice Working Group and develop an agency-wide environmental justice strategy. In 2001, follow up legislation [SB 828 (Alarcon), Chapter 765] established a timeline for these requirements and required CalEPA to update its report to the Legislature every three years. In October of 2004, CalEPA released its Environmental Justice Action Plan, but did not complete the required updates for a decade.

SB 535 (de León), Chapter 850, Statutes of 2012, requires the Cap and Trade Proceeds Investment Plan to direct a minimum of 25% of the available moneys in the fund to projects that provide benefits to identified disadvantaged communities; and, a minimum of 10% of the available moneys in the fund to projects located within identified disadvantaged communities. SB 535 also required CalEPA to identify disadvantaged communities (i.e., environmental justice communities). In order to accurately identify environmental justice communities, OEHHA, on behalf of CalEPA, created the California Communities Environmental Health Screening Tool (CalEnviroScreen). CalEnviroScreen is a screening methodology that can be used to help identify California communities that are disproportionately burdened by multiple sources of pollution.

In February of 2014, CalEPA issued an Environmental Justice Program Update, which included four main areas for future actions: 1) increase efforts to eliminate discrimination on the basis of race, national origin, ethnic group identification, religion, age, sex, sexual orientation, color, genetic information, or disability in any program or activity conducted or funded by the state; 2) develop guidance to promote a sound legal framework for CalEPA to advance environmental justice goals and objectives; 3) lead an agency-wide working group dedicated to increase compliance with environmental laws in communities with relatively higher environmental burdens; and, 4) add additional indicators to CalEnviroScreen.

1. Farmworker housing and weatherization. CSD has received $202 million from the GGRF for low-income weatherization programs. According to the author, CSD efforts to reach farmworkers for these programs have not been successful. While the farmworker population was once characterized by its mobility, today it has become much more stable in the agricultural areas of the state. Energy consumption in homes owned by farmworkers is often higher than average, because there are generally larger numbers of individuals per household. According to the National Agricultural Workers Survey conducted by the US Department of Labor, approximately 15% of California's farmworkers own homes.
   
   According to CalEPA, 31% of all GGRF investments to date, excluding high speed rail, have been spent on projects located in disadvantaged communities, and 51% of GGRF spending has benefitted disadvantaged communities. None has been specifically targeted to benefit farmworkers. Much of California's farmworker housing is located in areas identified by CalEnviroScreen as disadvantaged.
2. Previous legislation. This bill is substantially similar to AB 2715 (E. Garcia), 2016. AB 2715 was held in the Senate Appropriations Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

La Cooperativa Campesina de California (sponsor)
American Federation Of State, County And Municipal Employees, AFL-CIO

California Human Development
Proteus, Inc.

Opposition

None on file

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