BILL ANALYSIS Ó AB 2715 Page 1 Date of Hearing: May 18, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2715 (Eduardo Garcia) - As Amended May 11, 2016 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|8 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: 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: AB 2715 Page 2 1)Requires the Program to 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, 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 Public Utilities Commission (PUC) and the California Energy Commission (CEC) in developing the program in order to avoid duplication. 4)Requires CSD to post draft guidelines and hold a public hearing, as specified. FISCAL EFFECT: 1)Unknown costs pressures, likely in the $25 to $50 million range, to fund the Program. This bill does not specify a funding source. 2)Increased annual costs of approximately $600,000 and five permanent staff to create a unit within CSD to establish and administer the program. AB 2715 Page 3 3)Unknown, likely absorbable, costs for the PUC and CEC 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 $154 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 AB 2715 Page 4 Department of Labor, approximately 15% of California's farmworkers own homes. This bill develops a different program, with an unspecified funding source, that will benefit from the experience and expertise of farmworker organizations to reach this population. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081