BILL ANALYSIS �
AB 1124
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Date of Hearing: May 18, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1124 (Skinner) - As Amended: May 10, 2011
Policy Committee:
UtilitiesVote:11-2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill makes furnace and water heating system improvements
eligible for the Low-Income Energy Efficiency (LIEE) Program.
Specifically, this bill:
1)Requires the Public Utilities Commission (PUC) to ensure that
low-income multifamily rental apartment buildings meeting
specified criteria receive the following assistance under the
LIEE program: energy efficient furnace and water heating
systems and energy efficiency measures in common areas.
2)Requires financial assistance for 100% of cost of improvements
less a percentage equal to the percentage of rental units not
occupied by households with income below 200% of the federal
poverty level, but also caps the above assistance at $2,700
per dwelling unit.
3)Limits the financial assistance to the costs for equipment and
installation, and not for the performance of an energy audit.
4)Requires the owner of the apartment building to pass on
related energy efficiency cost savings to the tenants.
5)Requires the PUC to require the LIEE programs implemented by
the investor-owned electrical or gas utilities (IOUs) for
low-income multifamily rental apartment buildings to:
a) Use a performance-based approach based on an energy
audit.
b) Provide a single point of entry for to the program for
building residents.
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c) Eliminate barriers to accessing the program for building
owners.
FISCAL EFFECT
The PUC indicates that two staff currently administer the LIEE
Program and the California Alternative Rates for Energy (CARE)
Program. In order to implement this eligibility feature and its
associated parameters into the LIEE Program, the commission
would likely need at least two senior analyst positions and a
half-time ALJ at an annual cost of around $300,000 for up to two
years. �Public Utilities Reimbursement Account]
COMMENTS
1)Background . The LIEE, now termed the Energy Savings Assistance
(ESA) Program uses ratepayer funds to provide no-cost
weatherization services (attic insulation, energy efficient
refrigerators, energy efficient furnaces, weather-stripping,
caulking, low-flow showerheads, water heater blankets, and
door and building envelope repairs) for low-income
Californians. These programs, which total about $2.6 billion
in the current 2009-2011 cycle, are administered by the IOUs,
subject to commission rules and oversight. The qualifying
income thresholds under ESA are the same as for the CARE
Program, which provides a 20% discount on monthly electric and
gas bills.
2)Purpose . The PUC's rules for the ESA program prohibit the use
of program funds for replacement or repair of heating and
cooling systems in multifamily rental apartment buildings. The
author argues that more than one-third of ESA-eligible
low-income households reside in such buildings, where the
primary energy savings opportunity is to increase the
efficiency of these heating and hot water systems.
3)Opposition . In prohibiting the use of ESA funds for the
purposes prescribed in this bill, the PUC has argued that
ratepayers funds should not be used to pay for building system
repairs or replacements that duly are a landlord's
responsibility. PUC staff have nevertheless recommended that
a pilot be conducted during the 2012-2014 funding cycle to
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assess the efficacy of this approach.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081