Amended in Senate September 4, 2015

Amended in Senate September 1, 2015

Amended in Senate August 18, 2015

Amended in Senate June 16, 2015

Amended in Assembly April 30, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 693

Introduced by Assembly Members Eggman and Williams

February 25, 2015

An act to amend Section 748.5 of, and to add Chapter 9.5 (commencing with Section 2870) to Part 2 of Division 1 of, the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 693, as amended, Eggman. Multifamily Affordable Housing Solar Roofs Program.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility, and requires that those rates and charges be just and reasonable.

The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. That act requires the state board to adopt a statewide greenhouse gas emissions limit, as defined, to be achieved by 2020, equivalent to the statewide greenhouse gas emissions level in 1990. The state board is authorized to include market-based compliance mechanisms to comply with the regulations. The implementing regulations adopted by the state board provide for the direct allocation of greenhouse gas allowances to electrical corporations pursuant to a market-based compliance mechanism.

Existing law authorizes the commission to allocate 15% of these revenues for clean energy and energy efficiency projects established pursuant to statute that are administered by electrical corporations and requires the commission to direct the balance of the revenues to be credited directly to the residential, small business, and emissions-intensive trade-exposed retail customers of the electrical corporations, as specified.

This bill would authorize a qualified 3rd-party administrator to administer the clean energy and energy efficiency projects.

Existing law requires the commission to ensure that not less than 10% of the funds for the California Solar Initiative are utilized for the installation of solar energy systems, as defined, on low-income residential housing, as defined. Pursuant to this requirement, the commission adopted decisions that established the Single-Family Affordable Solar Homes Program and the Multifamily Affordable Solar Housing Program, pursuant to which the electrical corporations provide monetary incentives for the installation of solar energy systems on low-income residential housing.

This bill would require the commission to annually authorize the allocation of $100,000,000 or 10% of available funds, whichever is less, beginning with the fiscal year commencing July 1, 2016, and ending with the fiscal year ending June 30, begin delete 2026, end delete begin insert 2020, end insert from the greenhouse gas allowance revenues received by electrical corporations set aside for clean energy and energy efficiency projects for the Multifamily Affordable Housing Solar Roofs Program, which the bill would create. The bill would require the begin delete program to be administered by a qualified 3rd-party administrator, selected by the end delete commission begin delete through a competitive bidding system, end delete begin insert to consider the most appropriate program administration, as specified, end insert with not more than 10% of the allocated funds to be used for administration. The bill would require the commission to begin delete authorize end delete begin insert authorize, by June 30, 2017, end insert the award of monetary incentives for solar energy systems, as defined, that are installed on qualified multifamily affordable housing properties, as defined, through December 31, 2030, with the target of the program being to install a combined generating capacity of at least 300 megawatts on qualified properties. The bill would require the commission to require that the electricity generated by qualifying solar energy systems installed on qualified multifamily affordable housing properties pursuant to the program be primarily used to offset electricity usage by low-income tenants. The bill would require that begin insert low-income end insert tenants receive begin delete offsets end delete begin insert credits end insert on utility bills from the program through begin delete virtual net metering tariffs, as defined. end delete begin insert tariffs that allow for the allocation of credits, as specified. end insert The bill would require the commission, by July 30, begin delete 2018, end delete begin insert 2020, end insert and by July 30 of every third year thereafter through begin delete 2030, end delete begin insert 2029, end insert to submit an assessment, as specified, to the Legislature begin delete of the success end delete of the Multifamily Affordable Housing Solar Roofs Program.

Existing law makes any public utility and any corporation or person other than a public utility that violates any part of any order, decision, rule, direction, demand, or requirement of the commission guilty of a crime.

Because the provisions of this bill require action by the commission to implement its requirements, a violation of these commission-ordered requirements would impose a state-mandated local program by creating a new crime.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) It is necessary to provide assistance to low-income utility
customers to make sure they can afford to pay their energy bills.

(b) Programs that reduce the costs of the energy utilities’
California Alternate Rates for Energy, or CARE, program can
support the long-term ability of the CARE program to meet the
needs of low-income customers.

(c) Installing qualifying solar energy systems in disadvantaged
communities can provide local economic development benefits
while advancing the state’s renewable energy policies and policies
to reduce emissions of greenhouse gases.

(d) The Greenhouse Gas Reduction Fund Investment Plan and
Communities Revitalization Act (Chapter 4.1 (commencing with
Section 39710) of Part 2 of Division 26 of the Health and Safety
Code) requires that a minimum of 25 percent of the available
moneys in the Greenhouse Gas Reduction Fund be allocated to
projects that provide benefits to disadvantaged communities and
10 percent fund projects in disadvantaged communities.

(e) It is the goal of the state to make qualifying solar energy
systems more accessible to low-income and disadvantaged
communities and, as in the case of the Multifamily Affordable
Housing Solar Roofs Program, to install those systems in a manner
that represents the geographic diversity of the state.

(f) It is the goal of the state to install qualifying solar energy
systems that have a generating capacity equivalent to at least 300
megawatts for the express purpose of lowering the energy bills of
tenants at low-income multifamily housing.

SEC. 2.  

Section 748.5 of the Public Utilities Code is amended
to read:

748.5.  

(a) Except as provided in subdivision (c), the
commission shall require revenues, including any accrued interest,
received by an electrical corporation as a result of the direct
allocation of greenhouse gas allowances to electric utilities pursuant
to subdivision (b) of Section 95890 of Title 17 of the California
Code of Regulations to be credited directly to the residential, small
business, and emissions-intensive trade-exposed retail customers
of the electrical corporation.

(b) Not later than January 1, 2013, the commission shall require
the adoption and implementation of a customer outreach plan for
each electrical corporation, including, but not limited to, such
measures as notices in bills and through media outlets, for purposes
of obtaining the maximum feasible public awareness of the
crediting of greenhouse gas allowance revenues. Costs associated
with the implementation of this plan are subject to recovery in
rates pursuant to Section 454.

(c) The commission may allocate up to 15 percent of the
revenues, including any accrued interest, received by an electrical
corporation as a result of the direct allocation of greenhouse gas
allowances to electrical distribution utilities pursuant to subdivision
(b) of Section 95890 of Title 17 of the California Code of
Regulations, for clean energy and energy efficiency projects
established pursuant to statute that are administered by the
electrical corporation, or a qualified third-party administrator as
approved by the commission, and that are not otherwise funded
by another funding source.

SEC. 3.  

Chapter 9.5 (commencing with Section 2870) is added
to Part 2 of Division 1 of the Public Utilities Code, to read:

 

Chapter  9.5. Multifamily Affordable Housing Solar
Roofs Program

 

2870.  

(a) As used in this section, the following terms have the
following meanings:

(1) “CARE program” means the California Alternate Rates for
Energy program established pursuant to Section 739.1.

(2) “Program” means the Multifamily Affordable Housing Solar
Roofs Program established pursuant to this chapter.

(3) “Qualified multifamily affordable housing property” means
a multifamily residential building of at least five rental housing
units that is operated to provide deed-restricted low-income
residential housing, as defined in clause (i) of subparagraph (A)
of paragraph (3) of subdivision (a) of Section 2852, and that meets
one or more of the following requirements:

(A) The property is located in a disadvantaged community, as
identified by the California Environmental Protection Agency
pursuant to Section 39711 of the Health and Safety Code.

(B) At least 80 percent of the households have incomes at or
below 60 percent of the area median income, as defined in
subdivision (f) of Section 50052.5 of the Health and Safety Code.

(4) “Solar energy system” means a solar energy begin insert photovoltaic end insert
device begin delete that has the primary purpose of providing for the collection
and distribution of solar energy for the generation of electricity,
that produces at least one kilowatt, and not more than five
megawatts, alternating current rated peak electricity, and end delete that meets
or exceeds the eligibility criteria established pursuant to Section
25782 of the Public Resources Code.

begin delete

(5) “Virtual net metering tariffs” mean the tariffs that the
commission approves pursuant to Section 2827 to provide net
energy metering to multitenant or multimeter properties.

end delete begin insert

(b) (1) Adoption and implementation of the Multifamily
Affordable Housing Solar Roofs Program may count toward the
satisfaction of the commission’s obligation to ensure that specific
alternatives designed for growth among residential customers in
disadvantaged communities are offered as part of the standard
contract or tariff authorized pursuant to paragraph (1) of
subdivision (b) of Section 2827.1.

end insert begin insert

(2) Nothing in this section shall preclude electrical corporations
from offering and administering a distributed energy resource
program, including solar energy systems, in disadvantaged
communities offered under current or proposed programs using
funds provided under subdivision (c) of Section 748.5 or programs
proposed to comply with paragraph (1) of subdivision (b) as
approved by the commission.

end insert begin delete

(b) (1)

end delete

begin insert (c) end insert  The commission shall annually authorize the allocation of
one hundred million dollars ($100,000,000) or 10 percent of
available funds, whichever is less, from the revenues described in
subdivision (c) of Section 748.5 for the Multifamily Affordable
Housing Solar Roofs Program, beginning with the fiscal year
commencing July 1, 2016, and ending with the fiscal year ending
June 30, begin delete 2026. end delete begin insert 2020. end insert The commission shall continue authorizing
the allocation of these funds through June 30, 2026, if the
commission determines that revenues are available after 2020 and
that there is adequate interest and participation in the program.

begin delete

(2) Every three years, the commission shall evaluate the
program’s expenditures, commitments, uncommitted balances,
future demands, performance, and outcomes and shall make any
necessary adjustments to the program to ensure the goals of the
program are being met. If any funds remain uncommitted for three
years, those funds shall be credited to ratepayers pursuant to
Section 748.5.

(c)

end delete

begin insert (d) end insert  The commission shall begin delete require end delete begin insert consider end insert the begin insert most appropriate
program end insert administration begin delete of the program end delete begin insert structure, including
administration end insert by a qualified third-party administrator, selected
by the commission through a competitive bidding begin delete process. end delete begin insert process,
or administration by an electrical corporation, in an existing or
future proceeding. end insert

begin delete

(d)

end delete

begin insert (e) end insert  Not more than 10 percent of the funds allocated to the
program shall be used for administration.

begin delete

(e)

end delete

begin insert (f) end insert  (1)  begin delete The end delete begin insert By June 30, 2017, the end insert commission shall authorize
the award of monetary incentives for qualifying solar energy
systems that are installed on qualified multifamily affordable
housing properties through December 31, 2030. The target of the
program is to install a combined generating capacity of at least
300 megawatts on qualified properties.

(2) The commission shall require that the electricity generated
by qualifying renewable energy systems installed pursuant to the
program be primarily used to offset electricity usage by low-income
tenants. These requirements may include required covenants and
restrictions in deeds.

(3) The commission shall require that qualifying begin delete renewable end delete
begin insert solar end insert energy systems owned by third-party owners are subject to
contractual restrictions to ensure that no additional costs for the
system be passed on to low-income tenants at the properties
receiving incentives pursuant to the program. The commission
shall require begin delete a lifetime guarantee for energy production over the
useful life of the system. end delete begin insert third-party owners of solar energy systems
to provide ongoing operations and maintenance of the system,
monitor energy production, and, where necessary, take appropriate
action to ensure that the kWh production levels projected for the
system are achieved throughout the period of the third-party
agreement. Such actions may include, but are not limited to,
providing a performance guarantee of annual production levels end insert
begin insert or taking corrective actions to resolve under end insert begin insert production problems. end insert

(4) The commission shall ensure that incentive levels for
photovoltaic installations receiving incentives through the program
are aligned with the installation costs for solar energy systems in
affordable housing markets and take account of federal investment
tax credits and contributions from other sources to the extent
feasible.

(5) The commission shall require that no individual installation
receive incentives at a rate greater than 100 percent of the total
system installation costs.

(6) The commission shall establish local hiring requirements
for the program to provide economic development benefits to
disadvantaged communities.

(7) The commission shall establish energy efficiency
requirements begin delete for program participants end delete that are equal to the energy
efficiency requirements established for the program described in
Section 2852, including participation in a federal, state, or
utility-funded energy efficiency program or documentation of a
recent energy efficiency retrofit.

begin delete

(f)

end delete

begin insert (g) end insert  (1)  begin delete Tenants end delete begin insert Low-income tenants who participate in the
program end insert shall receive begin delete offsets end delete begin insert credits end insert on utility bills from the
program. The commission shall ensure that utility bill reductions
are achieved through begin delete virtual net metering tariffs. end delete begin insert tariffs that allow
for the allocation of credits, such as virtual net metering tariffs
designed for Multifamily Affordable Solar Housing Program end insert
begin insert participants, or other tariffs that may be adopted by the commission
pursuant to Section 2827.1. end insert

(2) The commission shall ensure that electrical corporation begin delete rate end delete
begin insert tariff end insert structures affecting the low-income tenants participating in
the program continue to provide a direct economic benefit from
the qualifying solar energy system.

begin delete

(g)

end delete

begin insert (h) end insert  Nothing in this chapter is intended to supplant CARE
program rates as the primary mechanism for achieving the goals
of the CARE program.

begin delete

(h)

end delete

begin insert (i) end insert  The begin delete program end delete begin insert commission end insert shall begin delete provide equal treatment for end delete
begin insert determine the eligibility of qualified multifamily affordable housing
property tenants that are end insert customers of community choice
aggregators.

begin delete

(i)

end delete

begin insert (j) end insert   begin insert (1) end insert begin insert   end insert On or before July 30, begin delete 2018, end delete begin insert 2020, end insert and by July 30 of
every third year thereafter through begin delete 2030, end delete begin insert 2029, end insert the commission
shall submit to the Legislature an assessment begin delete of the success end delete of the
Multifamily Affordable Housing Solar Roofs Program. That
assessment shall include the number of qualified multifamily
affordable housing property sites that have a qualifying solar
energy system for which an award was made pursuant to this
chapter and the dollar value of the award, the electrical generating
capacity of the qualifying renewable energy system, the bill
reduction outcomes of the program for the participants, the cost
of the program, the total electrical system benefits, the
environmental benefits, the progress made toward reaching the
goals of the program, the program’s impact on the CARE program
budget, and the recommendations for improving the program to
meet its goals. The report shall include an analysis of pending
program commitments, reservations, obligations, and projected
demands for the program to determine whether future ongoing
funding allocations for the program are substantiated. The report
shall also include a summary of the other programs intended to
benefit disadvantaged communities, including, but not limited to,
the Single-Family Affordable Solar Homes Program, the
Multifamily Affordable Solar Housing Program, and the Green
Tariff Shared Renewables Program (Chapter 7.6 (commencing
with Section 2831)).

begin insert

(2) Every three years, the commission shall evaluate the
program’s expenditures, commitments, uncommitted balances,
future demands, performance, and outcomes and shall make any
necessary adjustments to the program to ensure the goals of the
program are being met. If, upon review, the commission finds there
is insufficient participation in the program, the commission may
credit uncommitted funds back to ratepayers pursuant to Section
748.5.

end insert begin insert

(3) As part of the annual workplan required pursuant to Section
321.6, the commission shall provide an annual update of the
Multifamily Affordable Housing Solar Roofs Program that shall
include, but not be limited to, the number of projects approved,
number of projects completed, number of pending projects awaiting
approval, and geographic distribution of the projects.

end insert

SEC. 4.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.