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 --