BILL ANALYSIS �
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CONCURRENCE IN SENATE AMENDMENTS
AB 1124 (Skinner)
As Amended June 12, 2012
Majority vote
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|ASSEMBLY: | |(January 26, |SENATE: |38-0 |(August 9, |
| | |2012) | | |2012) |
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(vote not relevant)
Original Committee Reference: U. & C.
SUMMARY : Provides that the law establishing multifamily
habitability requirements shall not be interpreted to prohibit a
tenant or owner of rental properties from qualifying for heating
and hot water system repair or replacement under a utility
energy efficiency program.
The Senate amendments substantially amend the bill and instead
clarify current habitability requirements for tenant housing to
not prohibit a tenant in rental housing to qualify for energy
assistance programs that fund replacement heating or hot water
systems.
AS PASSED BY THE ASSEMBLY , this bill required the Public
Utilities Commission (PUC) to ensure compliance with specified
principles related to the PUC's investigation of financing
options for energy efficiency improvements in existing
residential and commercial buildings.
FISCAL EFFECT : Unknown. This is bill is keyed non-fiscal by
the Legislative Counsel.
COMMENTS :
Low Income Energy Efficiency Becomes Energy Savings Assistance
Program (ESAP) . The California Alternate Rate for Energy (CARE)
program provides a minimum 20% energy rate discount to eligible
low-income households earning at or below 200% of the federal
poverty level. Customers who meet the CARE requirements also
are eligible for the ESAP, formerly known as Low Income Energy
Efficiency program, which provides no-cost weatherization and
other services such as attic insulation, energy efficient
refrigerators, energy efficient furnaces, weatherstripping,
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caulking, low-flow showerheads, water heater blankets, and door
and building envelope repairs that reduce air infiltration.
The ESAP is administered in multi-year portfolios by the
investor-owned utilities (IOUs) as approved by the PUC and
funded by ratepayer charges, currently at about $320 million per
year. A proposed decision to approve the ESAP program elements
for the next three-year cycle is pending before the PUC.
PUC Cites Habitability Requirements . In several prior ESAP
decisions the PUC has denied eligibility for furnace and hot
water repair and replacement in rental buildings. Advocates
claim these large central systems present the primary
opportunity for significant energy savings in multifamily
buildings. But the PUC ruled in 2007 and 2008 that these
systems are the responsibility of the landlord, citing the Civil
Code habitability requirements (D.07-12-051 and D.08-11-031).
The PUC states that the staggering costs of upgrading these
central systems could derail the PUC from meeting its statutory
mandate to provide energy efficiency measures to all low-income
customers and could result in "over-subsidizing landlords." The
ESAP proposed decision currently pending before the PUC also
concludes that these systems are the responsibility of landlords
and that their repair and replacement should not be funded by
ratepayers.
Social Justice and Energy Efficiency . Affordable housing
advocates, including the sponsor of this bill, claim that energy
efficiency in multifamily housing is an issue of social justice
and equity as well as energy policy. They claim that low-income
households, especially those residing in multifamily buildings,
represent the greatest need for energy efficiency improvements,
but have a very low participation rate in existing programs.
According to the author, more than one-third of low-income
households that are eligible for ESAP live in multifamily
buildings but get only minimal energy savings from
weatherstripping and limited measures suited to individual
rental units. Thus, these advocates claim that existing
programs are leaving behind the poorest of the poor, who live in
the oldest, least efficient buildings and pay the highest
percentage of household income on energy costs.
Other Energy Efficiency Programs for Multifamily Housing . In
addition to ESAP, the larger energy efficiency programs the IOUs
administer include some programs for multifamily housing. For
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example, San Diego Gas and Electric Company and Southern
California Gas Company offer multifamily rebate programs for
common area systems including central water heaters and boilers.
More multifamily programs, including whole building pilot
programs, are pending approval by the PUC.
Analysis Prepared by : Sue Kateley / U. & C. / (916) 319-2083
FN: 0004426