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