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 ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 25, 2015 |Policy Vote: T. & H. 10 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: Yes |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: July 13, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- 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 ? 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 ? 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 AB 682 (Williams) Page 3 of ? 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. -- END --