BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2715 (Eduardo Garcia) - Agricultural Working Poor Energy Efficient Housing Program ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 20, 2016 |Policy Vote: E., U., & C. 9 - | | | 1, T. & H. 8 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Narisha Bonakdar | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2715 establishes the Agricultural Working Poor Energy Efficient Housing Program (Program), within the Department of Community Services and Development (CSD), to provide weatherization services to improve energy efficiency in farmworker housing. Fiscal Impact:1) 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 $100,000 to $600,000 for one to six permanent staff positions to create a unit within CSD to establish and administer the program. AB 2715 (Eduardo Garcia) Page 1 of ? 3)Absorbable, costs for the California Public Utilities Commission (CPUC) and California Energy Commission (CEC) to advise CSD in developing the program. Background: Energy efficiency of farmworker housing. According to the sponsor, La Cooperative Campesina, 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. This bill provides a program specifically targeted towards making farmworker housing energy efficient. Department of Community Services and Development energy assistance programs. CSD administers three of the energy assistance programs available to low-income Californians: the federal Low Income Home Energy Assistance Program (LIHEAP) and 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, 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. CSD contracts with a network of private, nonprofit, and local government community-based organizations to provide for the AB 2715 (Eduardo Garcia) Page 2 of ? 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. CSD has received $154 million from the AB 32 cap-and-trade revenues (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. Proposed Law: 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)Requires CSD to consult with the CPUC and the CEC in developing the program to avoid duplication with the energy efficiency programs supervised by those commissions. 4)Requires CSD to develop program requirements and guidelines, including income-based program eligibility limits, and may develop subgrantee contract provisions for the program. 5)Requires CSD to report specified information to the legislature. AB 2715 (Eduardo Garcia) Page 3 of ? Staff Comments: As mentioned above, CSD has received $154 million from GGRF for low-income weatherization programs. While, according to the author, CSD efforts to reach farmworkers have been unsuccessful, it is not clear that developing a new program would be the most efficient way of serving this population. -- END --