BILL ANALYSIS Ó
SENATE COMMITTEE ON ENERGY, UTILITIES AND COMMUNICATIONS
Senator Ben Hueso, Chair
2015 - 2016 Regular
Bill No: AB 2715 Hearing Date: 6/13/2016
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|Author: |Eduardo Garcia |
|-----------+-----------------------------------------------------|
|Version: |5/27/2016 As Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Jay Dickenson |
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SUBJECT: Agricultural Working Poor Energy Efficient Housing
Program
DIGEST: This bill establishes the Agricultural Working Poor
Energy Efficient Housing Program, a funding program to be
administered by the Department of Community Services and
Development (CSD).
ANALYSIS:
Existing law:
1)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. (Health and Safety
Code §50515.5-50517.11)
2)Tasks CSD with implementing several types of federal
assistance to help low-income households meet their energy
needs. (Government Code §§12085-12091 and 16366.1-16367.8)
3)Establishes a charge on electricity and natural gas
consumption to fund cost-effective energy efficiency and
conservation activities. (Public Utilities Code §§381 and
890)
4)Requires electric and gas corporations to provide
weatherization assistance to low-income customers and
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specifies that weatherization may include attic insulation,
caulking, weatherstripping, a low-flow showerhead, water
heater blanket, and door and building envelope repairs to
reduce air infiltration. (Public Utilities Code §2790 (a),
(b))
5)Specifies that weatherization may also include other building
conservation measures, energy-efficient appliances, and energy
education programs determined by the California Public
Utilities Commission (CPUC) to be feasible, considering the
cost effectiveness of the measures as a whole and the policy
of reducing energy-related hardships facing low-income
households. (Public Utilities Code §2790 (c))
6)Requires the California Energy Commission (CEC) to develop and
implement a comprehensive program to achieve greater energy
savings in California's existing residential and
nonresidential building stock. (Public Resources Code §25943)
This bill:
1)Directs CSD to develop and administer the Agricultural Working
Poor Energy Efficient Housing Program by expending moneys
appropriated by the Legislature to improve energy efficiency
in farmworker-owned housing.
2)Directs CSD, when distributing program funding, to give
preference to an association of federally designated
farmworker organizations and other organizations that have a
proven track record of assisting farmworkers.
3)Makes other requirements of CSD, including that it consult
with the CPUC and the CEC in developing the program to avoid
duplication with the energy efficiency programs supervised by
those commissions.
Background
Energy efficiency of farmworker housing. According to La
Cooperative Campesina, a not-for-profit statewide association of
agencies implementing and administering farm worker service
program and the sponsor of this bill, there are approximately
800,000 low-income farmworkers in California. Many, if not
most, live in buildings that could benefit from energy
efficiency upgrades. La Cooperative also relays that many
AB 2715 (Eduardo Garcia) PageC of?
low-income farmworker households use a greater amount of energy
than to comparable, non-farmworker housing. This is because,
the organization reports, farmworker households often have a
greater number of people living in them than do other, similarly
sized homes.
However, low-income farmworkers cannot afford to undertake
energy efficiency upgrades, such as weatherization, insulation,
and installation of energy efficiency appliances. As a result,
many farmworkers live in housing that is less comfortable and
healthful than it could be. In addition, the state misses
cost-effective opportunities to increase energy efficiency and
achieve carbon-reduction and other goals.
Several programs provide energy assistance to low-income
Californians. There are several programs in California to
provide energy assistance to low-income individuals and
households, some administered by the CSD, others by the state's
investor-owned utilities (IOUs). The following table
summarizes these low-income energy assistance programs.
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|California's Low-income Energy Assistance Programs |
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|------------------+-----------+--------+-------------------------|
|Program Name |Administrat|Funding | Description |
| | or | | |
| | | Source | |
|------------------+-----------+--------+-------------------------|
|Low Income Home | CSD1) | US |Energy efficiency |
|Energy Assistance | |DHHS2) |weatherization services |
|Program (LIHEAP) | | |to eligible low-income |
| | | |households, both |
| | | |homeowners and renters. |
|------------------+-----------+--------+-------------------------|
|Weatherization | CSD1) | US |Energy efficiency |
|Assistance | | DOE3) |services to eligible |
|Program (WAP) | | |low-income households, |
| | | |both homeowners and |
| | | |renters. |
|------------------+-----------+--------+-------------------------|
|Low Income | CSD1) | GGRF4) |Energy efficiency |
|Weatherization | | |services and |
|Program (LIWP) | | |installation of rooftop |
AB 2715 (Eduardo Garcia) PageD of?
| | | |solar to eligible |
| | | |low-income households, |
| | | |both homeowners and |
| | | |renters. |
|------------------+-----------+--------+-------------------------|
|Energy Savings | IUOs5) | IOU |Free home |
|Assistance (ESA) | |ratepaye|weatherization, energy |
|Program | | rs |efficient appliances and |
| | | |energy education |
| | | |services to |
| | | |income-qualified IOU |
| | | |customers. |
|------------------+-----------+--------+-------------------------|
|California | IOUs5) | IOU |Monthly discount on |
|Alternate Rates | |ratepaye|energy bills for |
|for Energy (CARE) | | rs |qualifying residential |
|Program | | |single-family |
| | | |households, tenants of |
| | | |sub-metered residential |
| | | |facilities, nonprofit |
| | | |group-living facilities, |
| | | |agricultural employee |
| | | |housing facilities and |
| | | |migrant farm worker |
| | | |housing centers. |
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| |
| 1) Department of Community Services and Development. |
| 2) United States Department of Health and Human Services. |
| 3) United States Department of Energy. |
| 4) Greenhouse Gas Reduction Fund. |
| 5) Investor-owned utilities. |
| |
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Department of Community Services and Development energy
assistance programs. As shown above, CSD administer three
low-income energy assistance programs: the federal LIHEAP and
WAP, and the state-funded LIWP. Each of the three
weatherization programs administered by CSD provides energy
efficiency services to eligible low-income households, both
homeowners and renters, by installing a range of weatherization
upgrades to reduce energy usage, improve resident comfort and
provide monetary savings to the residents. Residents are also
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educated on basic energy efficiency practices and on the proper
use and maintenance of the appliances and measures installed.
In addition, the CSD-administered, GGRF-funded LIWP funds the
installation of rooftop solar photovoltaic systems and solar
water heaters in low-income single-family and multi-family
households located within disadvantaged communities.
The CSD reports that it contracts with a network of private,
nonprofit, and local government community-based organizations to
provide for the local administration of grant programs and
delivery of service to eligible low-income households. Each
program has an income-eligibility requirement ranging from 60
percent state median income to 80 percent area median income,
depending on the program.
According to CSD, in Federal Fiscal Year (FFY) 2014, California
was awarded $152.8 million under the LIHEAP grant and $4.9
million under the WAP grant. In FFY 2015, California was awarded
$173.6 million under the LIHEAP Grant and $5.2 million under the
WAP Grant. For the LIWP, CSD received $75 million in fiscal year
(FY) 2014-15 and $78 million in FY 2015-16.
Investor-owned utility energy assistance programs. As outlined
in the table above, the state's IOUs administer two low-income
energy assistance programs: ESA and CARE. The ESA program
provides no-cost weatherization services to low-income
households who meet the CARE income guidelines (see table
below). Services provided include attic insulation, energy
efficient refrigerators, energy efficient furnaces,
weatherstripping, caulking, low-flow showerheads, water heater
blankets, and door and building envelope repairs which reduce
air infiltration. The ESA program is available to IOU customers,
whether they are home owners or renters. The CPUC approved ESA
program budgets for the state's largest IOUs as follows<1>:
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|Energy Savings Assistance Program Budget 2012-2014 |
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|Utility | |
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|--------+-------------+-----------+-------------+-------------|
| | 2012 | 2013 | 2014 | Cycle Total |
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<1> See CPUC Decision 14-08-030, issued on August 20, 2014.
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|--------+-------------+-----------+-------------+-------------|
|PG&E | $150,982,212|$156,363,35| $161,862,111| $469,207,675|
| | | 2| | |
|--------+-------------+-----------+-------------+-------------|
|SCE | $72,461,946|$72,640,016| $72,736,631| $217,838,592|
| | | | | |
|--------+-------------+-----------+-------------+-------------|
|SDG&E | $22,972,638|$23,397,174| $23,772,250| $70,142,062|
| | | | | |
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|SoCalGas| $127,199,269|$130,346,13| $132,417,191| $389,962,594|
| | | 5| | |
|--------+-------------+-----------+-------------+-------------|
| TOTALS | $373,616,065| $382,746,6| $390,788,183| $1,147,150,9|
| | | 76 | |24 |
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The CARE program provides a monthly discount on energy bills for
qualifying residential single-family households, tenants of
sub-metered residential facilities, nonprofit group living
facilities, agricultural employee housing facilities and migrant
farm worker housing centers. Program participants receive a
30-35 percent discount on their electric bills and a 20 percent
discount on their natural gas bills. Program eligibility is as
follows<2>:
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| |
| |
| CARE Income Guidelines |
|------------------------------------|
| CARE Income Guidelines* |
| |
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|--------------------+---------------|
| Household Size | Income |
| | Eligibility |
| | Upper Limit |
| | |
|--------------------+---------------|
| 1-2 | $32,040 |
| | |
|--------------------+---------------|
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<2> Source: CPUC CARE/FERA webpage
(http://www.cpuc.ca.gov/General.aspx?id=976).
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| 3 | $40,320 |
| | |
|--------------------+---------------|
| 4 | $48,600 |
| | |
|--------------------+---------------|
| 5 | $56,880 |
| | |
|--------------------+---------------|
| 6 | $65,160 |
| | |
|--------------------+---------------|
| 7 | $73,460 |
| | |
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| 8 | $81,780 |
| | |
|--------------------+---------------|
| Each Additional | $8,320 |
| Person | |
| | |
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|* Effective June 1, 2016 to May 31, |
|2017 |
| |
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Other state energy assistance programs. In addition to the
low-income energy assistance programs described above, there
exists the Joe Serna, Jr. Farmworker Housing Grant program.
Administered by Department of Housing and Community Development,
the program provides financing for the new construction,
rehabilitation and acquisition of owner-occupied and rental
units for agricultural workers, with a priority for lower-income
households. The program requires a match of at least 100
percent. The program budget for FY 2015-16 is $11.1 million.
Farmworkers especially hard to reach. Despite the numerous
energy assistance programs aimed specifically at low-income
households, as well as one program targeting farmworker housing
itself, the bill sponsors and supporters report that the
programs have had limited success in reaching low-income
farmworker housing. As a solution, the bill proposes to create
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the Agricultural Working Poor Energy Efficient Housing Program,
to be administered by CSD, to expend moneys appropriated by the
Legislature. The purpose of the new program is to improve
energy efficiency in farmworker-owned housing through the
following measures:
Weatherization of homes and other residences.
Replacement of energy inefficient appliances with Energy
Star-certified appliances.
Replacement of lighting with light-emitting diode,
commonly known as LED, lighting.
Installation of photovoltaic solar panels and solar
water heating systems.
Installation of battery backups.
There is nothing inappropriate with a program funding energy
efficiency measures in low-income farmworker-owned housing. And
this bill wisely directs CSD to consult with the CPUC and the
CEC in developing the program in order to avoid duplication with
the energy efficiency programs supervised by those commissions.
However, the list of potential energy efficiency measures in the
bill seems overly limited, or overly prescriptive, depending
upon how CSD interprets the bill's requirements. And, the
program should complement - not just avoid conflict with - the
state's energy programs and goals. To clarify that CSD may fund
through the program measures other than those specifically
listed, and that measures funded by the program must complement
the state's energy goals, the author may wish to amend this bill
as shown at the close of the analysis.
In addition, because, as the author an sponsor note, the state
has been largely unsuccessful as reaching low-income farmworkers
through its low-income energy assistance programs, the author
may wish to consider amending the bill, as shown at the close of
the analysis, to require CSD to report to the Legislature on the
effectiveness of the program in terms of expenditures, outreach,
and energy savings.
All farmworkers? This bill limits the program to improving
energy efficiency in "farmworker-owned housing." This presents
two difficulties. First, the program might be too generous.
This bill sponsor notes that most farmworkers meet the criteria
for low income. And, as the program name indicates, the author
intends the program to benefit the "agricultural working poor."
However, unlike the state's other low-income energy assistance
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programs, this bill provides no explicit criteria for what
constitutes "low income." Though unlikely, it is possible the
program could fund relatively well-off farmworkers. The author
may wish to direct CSD, in developing program guidelines, to
specify an income threshold for program eligibility, as shown at
the close of the analysis.
At the same time, the program may be too restrictive. According
to the sponsor's estimate, about 16 percent of farmworkers in
California own homes. That means the program, by design, would
fail to benefit the majority of farmworkers. As described
above, the state's other low-income energy assistance programs
are available to homeowners and renters alike. The author may
wish to amend the bill, as shown at the close of the analysis,
to expand eligibility to include farmworker housing in general,
relying on CSD, in consultation with CPUC and CEC, to develop
project guidelines so that program funding makes sense for each
housing type.
Compilation of suggested amendments.
Government Code 12087.6.
(a) The department shall develop and administer the
Agricultural Working Poor Energy Efficient Housing Program
and expend moneys appropriated by the Legislature for the
purposes of the program.
(b) (1) Moneys appropriated for the program shall be used
to improve energy efficiency in farmworker -owned housing,
including for , but not limited to, all of the following:
(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,
commonly known as LED, lighting.
(D) Installation of photovoltaic solar panels and solar
water heating systems.
(E) Installation of battery backups.
(2) When distributing moneys appropriated for the program,
the department shall give preference to an association of
federally designated farmworker organizations and other
organizations that have a proven track record of assisting
farmworkers.
(c) (1) The department may shall develop program
requirements , and guidelines, including income-based
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program eligibility limits, and may develop subgrantee
contract provisions for the program.
(2) The department shall do all of the following:
(A) Consult with the Public Utilities Commission and the
State Energy Resources Conservation and Development
Commission in developing the program in order to ensure
compatibility with the state's energy policies and goals
and to avoid duplication with of the energy efficiency
programs supervised by those commissions.
(B) Not less than 30 days before finalization of the
program guidelines, post the draft program guidelines on
the department's Internet Web site.
(C) Hold a public hearing to obtain public input on the
draft program guidelines with notice of the hearing
published prominently on the department's Internet Web site
no less than 15 days before the hearing.
(D) By January 1 of the third calendar year following
receipt of funding for the program, report to the budget
committees and appropriate policy committees of each house
of the Legislature on program balances and expenditures,
including the number of households reached by the program,
the demographics of households reached, including whether
the household is owner occupied or occupant rented, a list
of measures funded by the program, and an estimate of the
energy saved by the program.
Double Referral. Should this bill be approved by this
committee, it will be re-referred to the Senate Committee on
Transportation and Housing for its consideration.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SUPPORT:
La Coperativa Campesina (Source)
California Human Development
Center for Employment and Training
Central Valley Opportunity Center, Inc.
OPPOSITION:
None received
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ARGUMENTS IN SUPPORT: According to the author:
The California Community Services and Development, who
received the $75 Million Dollars of Cap and Trade to serve
the poor, has a long history of serving, through their
network of private non-profits, and public community
non-profit entities, hundreds of thousands of poor.
However, they have also experienced that in spite of their
strong efforts, trying to reach the farm workers has
presented a challenge, which has not been overcome after
many decades.
California's farmworkers are the backbone of a $46 billion
agricultural industry that provides fresh fruit and
vegetables to America and the entire world. The farmworker
population is overwhelmingly Latino (95 percent) and
increasingly settled and stabilized within agricultural and
rural communities in the production centers of the central
valley, central coast, northern Sacramento valley and the
desert.
While at one time the farmworker population was
characterized by its mobility, today it has become much
more stable and permanent in the agricultural areas of the
State. Many farmworkers are located in rural hard to reach
areas. Energy consumption in their homes is higher than
average because of the larger number of individuals per
household.
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.
-- END --
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