BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 682 (Williams) - Mobilehome park: electric and gas service:
master-meter customers
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|Version: June 25, 2015 |Policy Vote: T. & H. 10 - 0 |
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|Urgency: Yes |Mandate: No |
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|Hearing Date: July 13, 2015 |Consultant: Mark McKenzie |
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This bill does not meet the criteria for referral to the
Suspense File.
Bill
Summary: AB 682, an urgency measure, would authorize the
conversion of master gas and electric utility meters in
mobilehome parks to direct utility service, pursuant to a
specified upgrade program, without the approval of the
Department of Housing and Community Development (HCD). The bill
would require HCD to inspect the utility upgrades to ensure
adherence to specified health and safety standards.
Fiscal
Impact: HCD staffing costs of $952,000 in 2015-16, $928,000 in
2016-17, and $464,000 in 2017-18 for 8 PY to perform
AB 682 (Williams) Page 1 of
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construction inspections of mobilehome utility meter
installations in conjunction with the Mobilehome Park Utility
Upgrade Pilot Program. (Mobilehome-Manufactured Home Revolving
Fund)
All costs are expected to be fully offset by inspection fee
revenues. Position and fee authority for 2015-16 and 2016-17
was approved as part of the 2015 Budget Act. (see staff
comments)
Background: Existing law requires HCD to enforce various statutes
pertaining to manufactured homes and mobilehomes, including the
issuance of construction permits for alterations or conversions
to the structural, fire safety, plumbing, heat-producing, or
electrical systems and installations or equipment. Mobilehome
owners must document that they own their unit in order to apply
for a construction or alteration permit.
Existing law, AB 622 (Conroy), Ch. 424/1996, requires mobilehome
parks constructed after January 1, 1997 to provide directly
metered natural gas and/or electric service to individual
mobilehomes from the gas or electric utility corporation that
provides service in the area where the park is located. AB 622
also established a statutory framework for transferring existing
master-metered mobilehome parks to utilities that provide direct
service in the area where the park is located, but very few
conversions have taken place since the law took effect.
In response to the lack of conversions, and in recognition of
the benefits, the California Public Utilities Commission (CPUC)
initiated a voluntary three-year pilot program (the Mobilehome
Park Utility Upgrade Program) that authorizes each California
investor-owned utility to convert 10% of master-metered gas
and/or electric mobilehome park spaces within its operating
territory to direct utility service (CPUC Decision 14-03-021).
The CPUC began accepting forms of intent to participate in the
program early this year, and expects to begin conversions in
September of 2015. The program will continue until December 31,
2017. Costs for the utility conversions will be paid by
ratepayers in the utility's service area.
Under current law, the construction work related to the upgrade
AB 682 (Williams) Page 2 of
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program will require permits and inspections by HCD to ensure
completed work meets code and is safe prior to conversion to
directly metered service.
Proposed Law:
AB 682, an urgency measure, would authorize the alteration or
conversion of specified systems or equipment of a manufactured
home or mobilehome to extend a gas line and/or electrical
feeder line from a utility-owned service line to the home's
subpanel or inlet for purposes of a utility service upgrade
pursuant to CPUC's Mobilehome Park Utility Upgrade Program,
without filing an application with HCD.
The bill would also authorize repair or replacement of any
defects in the home related to heat-producing or electrical
systems or installations without filing an application for
alteration or conversion with HCD, if repair or replacement is
necessary, is made promptly, and is approved by HCD.
AB 682 would require HCD to inspect any specified alteration or
conversion to ensure adherence to applicable health and safety
standards, and rules and regulations.
Staff
Comments: This bill is intended to facilitate master meter
conversions in mobilehome parks by eliminating an HCD permit
requirement (but not inspection requirement) in order to
participate in the CPUC's participation in the Mobilehome Park
Utility Upgrade Program. The author indicates that many
mobilehome owners may not have proper ownership documentation
necessary for an HCD construction permit, due to multiple title
transfers and lack of compliance with change-of-ownership
requirements.
The Governor's proposed 2015-16 budget included a request for
expenditure authority for the positions that HCD indicates would
be required to comply with the necessary permitting and
inspections related to the CPUC's Mobilehome Park Utility
Upgrade Program. On May 7, 2015, Senate Budget Subcommittee 4
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approved position and expenditure authority for the 8 PY of
staff as two-year limited term positions, noting that in two
years the justification for permanent staff, based on initial
results from the pilot project, can be revisited.
Staff notes that HCD has current authority to charge a technical
service fee for each utility meter inspection its staff
performs. Current regulations establish a fee of $196 for the
first hour (which accounts for travel time), $82 for the second
hour, and $40 for each 30 minutes thereafter. HCD indicates
that these fees are expected to fully offset the identified
staffing costs to conduct inspections associated with mobilehome
park utility upgrades.
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