BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 2715           Hearing Date:    6/28/2016
           ----------------------------------------------------------------- 
          |Author:   |Eduardo Garcia                                        |
          |----------+------------------------------------------------------|
          |Version:  |6/20/2016                                             |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Urgency:  |No                     |Fiscal:      |Yes             |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Consultant|Manny Leon                                            |
          |:         |                                                      |
           ----------------------------------------------------------------- 
          

          SUBJECT:  Agricultural Working Poor Energy Efficient Housing  
          Program


            DIGEST:  This bill establishes the Agricultural Working Poor  
          Energy Efficient Housing Program and requires the 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. 

          2)Tasks CSD with implementing several types of federal  
            assistance to help low-income households meet their energy  
            needs.  

          3)Establishes a charge on electricity and natural gas  
            consumption to fund cost-effective energy-efficiency and  
            conservation activities. 

          4)Requires electric and gas corporations to provide  
            weatherization assistance to low-income customers and  







          AB 2715 (Eduardo Garcia)                          Page 2 of ?
          
          
            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.  

          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.  
          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.  

          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 housing.

          2)Specifies that program funds are to be used to fund  
            energy-efficient projects including, but not limited to, 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

          1)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.

          2)Establishes a number of program requirements, including that  
            CSD consult with the CPUC and the CEC in developing the  
            program to avoid duplication with the energy-efficiency  








          AB 2715 (Eduardo Garcia)                          Page 3 of ?
          
          
            programs supervised by those commissions, and that CSD submit  
            a report to the Legislature on program performance, as  
            specified. 

          COMMENTS:

          1)Purpose.  The author notes, "CSD, which received $75 million  
            of cap-and-trade revenue for low-income programs, has a long  
            history of serving hundreds of thousands of people in poverty  
            through their network of non-profit organizations.  However,  
            CSD has also experienced, in spite of their strong efforts,  
            difficulty in reaching out to and helping low-income farm  
            workers. This has presented a challenge for CSD which the  
            department been unable to overcome for some time.

            "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."  

          2)CSD energy assistance programs.  CSD administers three  
            low-income energy assistance programs:  the federal Low Income  
            Home Energy Assistance Program (LIHEAP), the Weatherization  
            Assistance Program (WAP), and the state-funded Low Income  
            Weatherization Program (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 educated on basic  
            energy-efficiency practices and on the proper use and  
            maintenance of the appliances and measures installed.  In  
            addition, with revenues from the Greenhouse Gas Reduction  
            Fund, CSD also administers, through LIWP, funds for 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  








          AB 2715 (Eduardo Garcia)                          Page 4 of ?
          
          
            program has an income-eligibility requirement ranging from 60%  
            state median income to 80% area median income, depending on  
            the program.

          1)Additional 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 HCD, 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%.  The program budget for FY 2015-16  
            is $11.1 million.

          3)Improving farmworker housing conditions.  The bill's sponsors  
            and supporters report that existing programs have had limited  
            success in reaching low-income farmworkers and providing  
            much-needed housing assistance.  As a solution, the bill  
            proposes to create 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  
            housing.  Writing in support of the bill, AFSCME notes,  
            "California's 800,000 low-income farmworkers cannot afford to  
            reduce their reliance on carbon-intensive energy sources. In  
            addition, energy consumption in homes owned by farmworkers is  
            often higher than average, because there are generally larger  
            numbers of individuals per household.  This bill provides a  
            program specifically targeted towards making farmworker  
            housing energy efficient."  

          4)Double-referral.  This bill passed out of the Senate Energy,  
            Utilities and Communications Committee at its June 13 hearing  
            on a 9-1 vote. 

          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


          Assembly Votes:

            Floor:         79-0
            Appr:          20-0
            Nat. Res:   8-0
            








          AB 2715 (Eduardo Garcia)                          Page 5 of ?
          
          
          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          June 22, 2016.)
          
            SUPPORT:  

          La Coperativa Campesina (Sponsor)
          AFSCME
          California Human Development
          Center for Employment and Training
          Central Valley Opportunity Center, Inc.

          OPPOSITION:

          None received

          
          

                                      -- END --