BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2715


                                                                    Page  1





          ASSEMBLY THIRD READING


          AB  
          2715 (Eduardo Garcia, et al.)


          As Amended  May 27, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Natural         |8-0  |Williams, Jones,      |                    |
          |Resources       |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Cristina Garcia,      |                    |
          |                |     |Gomez, Hadley,        |                    |
          |                |     |McCarty, Mark Stone,  |                    |
          |                |     |Wood                  |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Roger         |                    |
          |                |     |Hernández, Holden,    |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |








                                                                    AB 2715


                                                                    Page  2





          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Establishes the Agricultural Working Poor Energy  
          Efficient Housing Program (Program) within the Department of  
          Community Services and Development (CSD) and states legislative  
          intent to appropriate not less than $50 million from the  
          Greenhouse Gas Reduction Fund (GGRF) to implement the Program.   
          Specifically, this bill:  


          1)Requires CSD to develop and administer the Program. 


          2)Specifies that the Program 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  
               lighting; 


             d)   Installation of photovoltaic solar panels and solar  
               water heating systems; and,


             e)   Installation of battery backups. 


          3)Specifies that CSD give priority to an association of  
            federally designated farmworker organizations and other  








                                                                    AB 2715


                                                                    Page  3





            organizations that have a proven track record of assisting  
            farmworkers.  


          4)Authorizes CSD to develop requirements, guidelines, and  
            subgrantee contract provisions for the Program. 


          5)Requires CSD to: 


             a)   Consult with the Public Utilities Commission (PUC) in  
               developing the program in order to avoid duplication with  
               those energy efficiency programs supervised by the PUC.  


             b)   No less than 30 days before finalizing the Program  
               guidelines, post the draft guidelines on CSD's website and  
               hold a public hearing to obtain public input.


          EXISTING LAW:  


          1)Requires the Air Resources Board (ARB), pursuant to California  
            Global Warming Solutions Act of 2006 [AB 32 (Nunez), Chapter  
            488, Statutes of 2006], to adopt a statewide greenhouse gas  
            (GHG) emissions limit equivalent to 1990 levels by 2020 and  
            adopt regulations to achieve maximum technologically feasible  
            and cost-effective GHG emission reductions.  AB 32 authorizes  
            ARB to permit the use of market-based compliance mechanisms to  
            comply with GHG reduction regulations, once specified  
            conditions are met.
          2)Establishes the GGRF and requires all moneys, except for fines  
            and penalties, collected by ARB from the auction or sale of  
            allowances pursuant to a market-based compliance mechanism  
            (i.e., the cap-and-trade program adopted by ARB under AB 32)  
            to be deposited in the GGRF and available for appropriation by  
            the Legislature.








                                                                    AB 2715


                                                                    Page  4







          3)Establishes the GGRF Investment Plan and Communities  
            Revitalization Act to set procedures for the investment of GHG  
            allowance auction revenues.  Requires the investment plan to  
            allocate 1) a minimum of 25% of the available moneys in the  
            GGRF to projects that provide benefits to identified  
            disadvantaged communities, and 2) a minimum of 10% of the  
            available moneys in the GGRF to projects located within  
            identified disadvantaged communities.


          4)Establishes the Joe Serna Jr. Farmworker Housing Grant  
            Program, which authorizes the Department of Housing and  
            Community Development (HCD) to provide financing for new  
            construction, rehabilitation, and acquisition of  
            owner-occupied and rental units for agricultural workers, with  
            priority given to low income households. 


          5)Tasks CSD with implementing several types of federal  
            assistance to help low-income households meet their energy  
            needs, including: 


             a)   The Home Energy Assistance Program, which provides  
               one-time financial assistance to help offset an eligible  
               applicant's energy costs; 
             b)   The Energy Crisis Intervention Program, which provides  
               assistance to low-income households that are in a crisis  
               situation due to receiving a termination notice or an  
               energy-related life-threatening emergency, such as a  
               malfunctioning heater;


             c)   The Weatherization Assistance Program, which provides  
               free energy efficiency upgrades to low-income households.  










                                                                    AB 2715


                                                                    Page  5





          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill has the following state costs: 


          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.


          3)Unknown, likely absorbable, costs for the PUC and California  
            Energy Commission to advise CSD in developing the program to  
            avoid duplicating existing programs.


          COMMENTS:  CSD has received $154 million from the 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 Department of  
          Labor, approximately 15% of California's farmworkers own homes.   



          According to CalEPA, 39% of all GGRF investments to date,  
          excluding high speed rail, have been spent on projects located  
          in disadvantaged communities, and 51% of GGRF spending has  
          benefitted disadvantaged communities.  None has been  
          specifically targeted to benefit farmworkers.  Much of  
          California's farmworker housing is located in areas identified  








                                                                    AB 2715


                                                                    Page  6





          by CalEnviroScreen as disadvantaged.  


          This bill is intended to provide assistance to California's  
          800,000 low-income farmworkers who cannot afford to reduce their  
          reliance on carbon intensive energy sources.  According to the  
          author, 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. 




          Analysis Prepared by:                                             
                          Elizabeth MacMillan / NAT. RES. / (916) 319-2092  
            FN: 0003322