BILL NUMBER: AB 1124	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 7, 2011

INTRODUCED BY   Assembly Member Skinner
   (Coauthors: Senators DeSaulnier and Hancock)

                        FEBRUARY 18, 2011

   An act to add Section  385.5   383  to
the Public Utilities Code, relating to  the Low-Income Energy
Efficiency program   energy  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1124, as amended, Skinner. Low-Income Energy Efficiency
program.
   Existing law authorizes the Public Utilities Commission to
establish programs to provide financial assistance for energy
efficiency improvements  for existing residential and
nonresidential building stock  .  Pursuant to this
authorization, the   The  Public Utilities
Commission established the Low-Income Energy Efficiency (LIEE)
program to pay for the cost of energy efficiency improvements
 to dwellings occupied by   for  low-income
households. Decisions issued by the commission held, among other
things, that repairs or replacements of furnaces or water heating
systems for a multifamily building occupied by low-income households
do not qualify for financial assistance under the LIEE program.
   This bill would state the intent of the Legislature to 
disapprove the above holding   modify the application
 of those decisions and would  provide that the energy
efficiency improvements to furnaces or water heating systems for
multifamily buildings occupied by low-income households in a majority
of the units are eligible for financial assistance under the LIEE
program and other energy efficiency programs under the jurisdiction
of the commission   require the commission to ensure
that low-income multifamily rental apartment buildings, as defined,
receive energy efficient furnaces and water heating systems and
energy efficiency measures in common areas recommended by an energy
audit pursuant to the LIEE program, a successor program, or other
energy efficiency program under the jurisdiction of the commission.
The bill would impose additional requirements on the LIEE program in
serving low-income multifamily rental apartment buildings  .
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) The Legislature enacted Chapter 470 of the Statutes of 2009
(Chapter 470) and directed the Public Utilities Commission (PUC) and
the State Energy Resources Conservation and Development Commission
(Energy Commission) to develop policies and plans to encourage
improvement to all existing buildings in California.
   (2) Pursuant to Chapter 470, the Energy Commission is required to
develop a comprehensive program to achieve greater energy savings in
the state's existing residential and nonresidential building stock
and energy efficiency financing options.
   (3) Pursuant to Chapter 470, the PUC is required to investigate
the ability of the electrical corporations and gas corporations to
provide various energy efficiency financing options to their
customers for the purposes of implementing the program developed by
the Energy Commission and to assess the implementation of the program
by the electrical corporations and the gas corporations.
   (4) The residential  sectors   sector 
represents approximately 32 percent of the total electricity usage
and 36 percent of the total natural gas consumption, and low-income
households consume 27 percent more energy due to the age and
condition of the housing they can afford to live in.
   (5) The PUC has approved the use of ratepayer funds to pay for 100
percent of the cost of certain energy efficiency improvements to
dwellings occupied by low-income households with incomes below 200
percent of the federal poverty level in the form of  the 
Low-Income Energy Efficiency (LIEE) program.
   (6) More than one-half of the eligible low-income households with
incomes below 200 percent of the federal poverty level live in
multifamily  rental apartment  buildings.
   (7) The primary opportunity for energy savings in many multifamily
 rental apartment  buildings is in increasing the
efficiency of the heating and hot water systems.
   (8) Decision 07-12-051 issued by the PUC on December 12, 2007,
stated that "w]e are not convinced that utility ratepayers should
assume the costs of appliance repairs and replacements." 
   (8) 
    (9)  Decision 08-11-031 issued by the PUC on November
10, 2008, reaffirmed the position of the PUC stated in Decision
07-12-051 by ruling that "no furnace repair and replacement or water
heater repair or replacement work shall occur in violation of our
holding in D.07-12-051 that heating and water heating in rental
housing are the responsibility of the landlord." 
   (9) 
    (10)  The PUC has interpreted that decision to mean
that, with respect to the LIEE program, only minor repairs and
adjustments may be made to furnaces and water heaters for the purpose
of increasing energy efficiency. As a consequence, contractors
implementing the LIEE program have generally avoided investing LIEE
funds in improving the efficiency of furnaces and water heaters even
though  this is the largest potential energy saving in
multifamily buildings   these are the largest potential
energy savings in many multifamily rental apartment buildings  .

   (b) It is the intent of the Legislature to do all of the
following:
   (1) Promote the investment of existing ratepayer energy efficiency
funds to increase the efficiency of furnace and water heating
systems in multifamily  housing   rental
apartment buildings  occupied by low-income households to
achieve the maximum potential energy savings in the residential
sector.
   (2) Promote the use of ratepayer funds to pay for 
improvements to   energy efficient  heating and
water heater systems in multifamily  properties 
 rental apartment buildings  and in particular in those that
have contracts with federal, state, or local  governmental 
agencies that require them to serve low-income households 
in a majority of the units for not less than 30 years  .
   (3)  Disapprove the   Modify the application
of  Decision 07-12-051 and Decision 08-11-031, insofar as those
decisions disallowed the repair or replacement of furnaces and water
heaters through the LIEE or other residential energy efficiency
programs under the PUC's jurisdiction. 
  SEC. 2.    Section 385.5 is added to the Public
Utilities Code, to read:
   385.5.  (a) Energy efficiency improvements to furnaces and water
heating systems for multifamily buildings occupied by low-income
households in a majority of the units shall be eligible for financial
assistance pursuant to the Low-Income Energy Efficiency (LIEE)
program and other energy efficiency program under the jurisdiction of
the commission.
   (b) The commission shall give priority consideration in the
approval of an eligible energy efficiency improvement as specified in
subdivision (a) that has all of the following objectives:
   (1) Demonstrate the greater cost-effectiveness of energy retrofits
to larger multifamily buildings using a whole building,
performance-based approach.
   (2) Demonstrate the advantage of a program with a single point of
entry for low-income multifamily properties, recognizing the unique
needs of low-income multifamily housing.
   (3) Eliminate barriers to accessing energy retrofit programs for
providers of low-income multifamily properties.
   (4) Align income eligibility and other programmatic requirements
with other federal and state energy rebate and incentive programs to
maximize leveraging opportunities. 
   SEC. 2.    Section 383 is added to the  
Public Utilities Code   , to read:  
   383.  (a) (1) As used in this section, "low-income multifamily
rental apartment building" means a building that meets all of the
following requirements prior to receiving assistance:
   (A) Has five or more dwelling units.
   (B) At least 66 percent of the total dwelling units are occupied
by households with incomes below 200 percent of the federal poverty
level.
   (C) A deed restriction or affordability covenant is held by a
federal, state, or local governmental entity that ensures that the
percentage of units described in subparagraph (B) will be available
at an affordable rent for a period of at least 15 years following
installation of the energy efficiency improvement.
   (2) The commission shall establish certification requirements to
implement this subdivision the United States Department of Energy's
Weatherization Assistance Program for Low-Income Persons.
   (b) The commission shall ensure that low-income multifamily rental
apartment buildings receive the following forms of assistance
pursuant to the Low-Income Energy Efficiency (LIEE) program, a
successor program, or other energy efficiency program under the
jurisdiction of the commission:
   (1) Energy efficient furnaces and water heating systems.
   (2) Energy efficiency measures in common areas recommended by an
energy audit.
   (c) Financial assistance pursuant to this section shall be for 100
percent of the cost of the improvement less a percentage equal to
the percent of total dwelling units not occupied by households with
incomes 200 percent below the federal poverty level.
   (d) The commission shall require the Low-Income Energy Efficiency
(LIEE) program, as implemented by an electrical corporation or gas
corporation, to incorporate all of the following elements in serving
low-income multifamily rental apartment buildings:
   (1) Use a whole building, performance-based approach based on
site-specific measures recommended by an energy audit of the
building.
   (2) Provide a single point of entry for low-income multifamily
rental apartment building residents so that they can access
efficiently and effectively the Low-Income Energy Efficiency (LIEE)
program and other energy efficiency program resources.
   (3) Eliminate barriers to accessing energy retrofit programs for
owners of low-income multifamily rental apartment buildings.