BILL NUMBER: AB 693 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 1, 2015
AMENDED IN SENATE AUGUST 18, 2015
AMENDED IN SENATE JUNE 16, 2015
AMENDED IN ASSEMBLY APRIL 30, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Members Eggman and Williams
FEBRUARY 25, 2015
An act to amend Section 748.5 of, and to add Chapter 9.5
(commencing with Section 2870) to Part 2 of Division 1 of, the Public
Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 693, as amended, Eggman. Multifamily Affordable Housing
Renewables Solar Roofs Program.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations.
Existing law authorizes the commission to fix the rates and charges
for every public utility, and requires that those rates and charges
be just and reasonable.
The California Global Warming Solutions Act of 2006 establishes
the State Air Resources Board as the state agency responsible for
monitoring and regulating sources emitting greenhouse gases. That act
requires the state board to adopt a statewide greenhouse gas
emissions limit, as defined, to be achieved by 2020, equivalent to
the statewide greenhouse gas emissions level in 1990. The state board
is authorized to include market-based compliance mechanisms to
comply with the regulations. The implementing regulations adopted by
the state board provide for the direct allocation of greenhouse gas
allowances to electrical corporations pursuant to a market-based
compliance mechanism.
Existing law authorizes the commission to allocate 15% of these
revenues for clean energy and energy efficiency projects established
pursuant to statute that are administered by electrical corporations
and requires the commission to direct the balance of the revenues to
be credited directly to the residential, small business, and
emissions-intensive trade-exposed retail customers of the electrical
corporations, as specified.
This bill would authorize a qualified 3rd-party administrator to
administer the clean energy and energy efficiency projects.
Existing law requires the commission to establish a
program of assistance to low-income electric and gas customers,
referred to as the California Alternate Rates for Energy, or CARE,
program. Existing law requires the commission to ensure
that not less than 10% of the funds for the California Solar
Initiative are utilized for the installation of solar energy systems,
as defined, on low-income residential housing, as defined. Pursuant
to this requirement, the commission adopted decisions that
established the Single-Family Affordable Solar Homes Program and the
Multifamily Affordable Solar Housing Program, pursuant to which the
electrical corporations provide monetary incentives for the
installation of solar energy systems on low-income residential
housing.
This bill would require the commission to annually authorize the
allocation of $100,000,000 or 10% of available funds, whichever is
less, beginning with the fiscal year commencing July 1, 2016, and
ending with the fiscal year ending June 30, 2026, from the greenhouse
gas allowance revenues received by electrical corporations set aside
for clean energy and energy efficiency projects for the Multifamily
Affordable Housing Renewables Solar Roofs
Program, which the bill would create. The bill would require
the program to be administered by a qualified 3rd-party
administrator, selected by the commission through a competitive
bidding system, with not more than 10% of the allocated funds to be
used for administration. The bill would require the commission to
authorize the award of monetary incentives for qualifying
renewable solar energy systems, as defined, that
are installed on qualified multifamily affordable housing
properties, as defined, through December 31, 2030, with the target of
the program being to install a combined generating capacity of
at least 300 megawatts on qualified multifamily
affordable housing properties. The bill would require the
commission to require that the electricity generated by qualifying
renewable solar energy systems
installed on qualified multifamily affordable housing properties
pursuant to the program be primarily used to offset electricity usage
by low-income tenants. The bill would require that
low-income customers participating in the program
tenants receive offsets on utility bills from the program
through virtual net metering tariffs, as defined. The bill would
require the commission, by July 30, 2018, and by July 30 of every
even third year thereafter through
2032, 2030, to submit an assessment, as
specified, to the Legislature of the success of the Multifamily
Affordable Housing Renewables Solar Roofs
Program.
Existing law makes any public utility and any corporation or
person other than a public utility that violates any part of any
order, decision, rule, direction, demand, or requirement of the
commission guilty of a crime.
Because the provisions of this bill require action by the
commission to implement its requirements, a violation of these
commission-ordered requirements would impose a state-mandated local
program by creating a new crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) It is necessary to provide assistance to low-income utility
customers to make sure they can afford to pay their energy bills.
(b) Programs that reduce the costs of the energy utilities'
California Alternate Rates for Energy, or CARE, program can support
the long-term ability of the CARE program to meet the needs of
low-income customers.
(c) Installing qualifying renewable energy systems,
including solar energy systems, solar energy systems
in disadvantaged communities can provide local economic
development benefits while advancing the state's renewable energy
policies and policies to reduce emissions of greenhouse gases.
(d) The Greenhouse Gas Reduction Fund Investment Plan and
Communities Revitalization Act (Chapter 4.1 (commencing with Section
39710) of Part 2 of Division 26 of the Health and Safety Code)
requires that a minimum of 25 percent of the available moneys in the
Greenhouse Gas Reduction Fund be allocated to projects that provide
benefits to disadvantaged communities and 10 percent fund projects in
disadvantaged communities.
(e) It is the goal of the state to make qualifying
renewable solar energy systems,
including solar energy resources, systems more
accessible to low-income and disadvantaged communities and, as in the
case of the Multifamily Affordable Housing Renewables
Solar Roofs Program, to install those systems in
a manner that represents the geographic diversity of the state.
(f) It is the goal of the state to install qualifying
renewable solar energy systems that have a
generating capacity equivalent to at least 300 megawatts for the
express purpose of lowering the energy bills of
CARE-eligible tenants at low-income multifamily housing.
SEC. 2. Section 748.5 of the Public Utilities Code is amended to
read:
748.5. (a) Except as provided in subdivision (c), the commission
shall require revenues, including any accrued interest, received by
an electrical corporation as a result of the direct allocation of
greenhouse gas allowances to electric utilities pursuant to
subdivision (b) of Section 95890 of Title 17 of the California Code
of Regulations to be credited directly to the residential, small
business, and emissions-intensive trade-exposed retail customers of
the electrical corporation.
(b) Not later than January 1, 2013, the commission shall require
the adoption and implementation of a customer outreach plan for each
electrical corporation, including, but not limited to, such measures
as notices in bills and through media outlets, for purposes of
obtaining the maximum feasible public awareness of the crediting of
greenhouse gas allowance revenues. Costs associated with the
implementation of this plan are subject to recovery in rates pursuant
to Section 454.
(c) The commission may allocate up to 15 percent of the revenues,
including any accrued interest, received by an electrical corporation
as a result of the direct allocation of greenhouse gas allowances to
electrical distribution utilities pursuant to subdivision (b) of
Section 95890 of Title 17 of the California Code of Regulations, for
clean energy and energy efficiency projects established pursuant to
statute that are administered by the electrical corporation, or a
qualified third-party administrator as approved by the commission,
and that are not otherwise funded by another funding source.
SEC. 3. Chapter 9.5 (commencing with Section 2870) is added to
Part 2 of Division 1 of the Public Utilities Code, to read:
CHAPTER 9.5. MULTIFAMILY AFFORDABLE HOUSING
RENEWABLES SOLAR ROOFS PROGRAM
2870. (a) As used in this section, the following terms have the
following meanings:
(1) "CARE program" means the California Alternate Rates for Energy
program established pursuant to Section 739.1.
(2) "Program" means the Multifamily Affordable Housing
Renewables Solar Roofs Program established
pursuant to this chapter.
(3) "Qualified multifamily affordable housing property" means a
multifamily residential complex building
of at least five rental housing units that is operated to
provide deed -restricted low-income residential
housing, as defined in clause (i) of subparagraph (A) of
paragraph (3) of subdivision (a) of Section 2852, and that
meets at least one or more of the
following requirements:
(A) The property is located in a disadvantaged community, as
identified by the California Environmental Protection Agency pursuant
to Section 39711 of the Health and Safety Code.
(B) At least 80 percent of the residents reside in
households, adjusted by size, having incomes not in excess of
households have incomes at or below 60 percent
of the area median income of the county.
income, as defined in subdivision (f) of Section 50052.5 of the
Health and Safety Code.
(4) "Qualifying renewable energy system" means a facility that
generates electricity using biomass, solar thermal, photovoltaic,
wind, geothermal, fuel cells using renewable fuels, small
hydroelectric generation of 30 megawatts or less, digester gas,
municipal solid waste conversion, landfill gas, ocean wave, ocean
thermal, or tidal current, and any additions or enhancements to the
facility using that technology, and that, for a photovoltaic
facility, meets the eligibility criteria established by the Energy
Commission pursuant to subdivisions (a) and (c) of Section 25782 of
the Public Resources Code.
(4) "Solar energy system" means a solar energy device that has the
primary purpose of providing for the collection and distribution of
solar energy for the generation of electricity, that produces at
least one kilowatt, and not more than five megawatts, alternating
current rated peak electricity, and that meets or exceeds the
eligibility criteria established pursuant to Section 25782 of the
Public Resources Code.
(5) "Virtual net metering tariffs" mean the tariffs that the
commission approves pursuant to Section 2827 to provide net energy
metering to multitenant or multimeter properties.
(b) (1) The commission shall annually authorize the allocation of
one hundred million dollars ($100,000,000) or 10 percent of available
funds, whichever is less, from the revenues described in subdivision
(c) of Section 748.5 for the Multifamily Affordable Housing
Renewables Solar Roofs Program, beginning with
the fiscal year commencing July 1, 2016, and ending with the fiscal
year ending June 30, 2026. The commission shall
continue authorizing the allocation of these funds through June 30,
2026, if the commission determines that revenues are available after
2020 and that there is adequate interest and participation in the
program.
(2) Every three years, the commission shall evaluate the program's
expenditures, commitments, uncommitted balances, future demands,
performance, and outcomes and shall make any necessary adjustments to
the program to ensure the goals of the program are being met.
If, after the first three years, any funds allocated over
the first three years remain uncommited, If any funds
remain uncommitted for three years, those funds shall be
credited to ratepayers pursuant to Section 748.5.
(c) The commission shall require the administration of the program
by a qualified third-party administrator, selected by the commission
through a competitive bidding process. Not
(d) Not more than 10 percent of
the funds allocated to the program shall be used for administration.
(d)
(e) (1) The commission shall authorize the award of
monetary incentives for qualifying renewable
solar energy systems that are installed on qualified multifamily
affordable housing properties through December 31, 2030. The target
of the program is to install a combined generating capacity of
at least 300 megawatts on qualified multifamily
affordable housing properties.
(2) For a photovoltaic facility, the commission shall establish
conditions for the monetary incentives that require appropriate
siting and high-quality installation of the solar energy system that
maximize the performance of the system and prevent qualified systems
from being inefficiently or inappropriately installed. The goal of
this paragraph is to achieve efficient installation of solar energy
systems to promote the greatest energy production for the moneys
expended. In meeting this goal, the commission may require
performance-based incentives for the program if it determines those
incentives are appropriate.
(3)
(2) The commission shall require that the electricity
generated by qualifying renewable energy systems installed pursuant
to the program be primarily used to offset electricity usage by
low-income tenants. These requirements may include required covenants
and restrictions in deeds. Ratepayers participating in the
CARE program shall be eligible for utility billing offsets.
(4)
(3) The commission shall require that qualifying
renewable energy systems owned by third-party owners are subject to
contractual restrictions to ensure that no additional costs for the
system be passed on to low-income tenants at the properties receiving
incentives pursuant to the program. The commission shall require a
lifetime guarantee for energy production over the useful life of the
system.
(5)
(4) The commission shall ensure that incentive levels
for photovoltaic installations receiving incentives through the
program are aligned with the installation costs for solar energy
systems in affordable housing markets and take account of federal
investment tax credits and contributions from other sources to the
extent feasible.
(6)
(5) The commission shall require that no individual
installation receive incentives at a rate greater than 100 percent of
the total system installation costs.
(7)
(6) The commission shall establish local hiring
requirements for the program to provide economic development benefits
to disadvantaged communities.
(8)
(7) The commission shall establish energy efficiency
requirements for program participants that are equal to, or
greater than to the energy efficiency
requirements established for the program described in Section
2852. 2852, including participation in a
federal, state, or utility -funded energy efficiency
program or documentation of a recent energy efficiency retrofit.
(e) (1) Eligible customers who participate in the program
(f) (1) Tenants
shall receive offsets on utility bills from the program. The
commission shall ensure that utility bill reductions are achieved
through virtual net metering tariffs.
(2) The commission shall ensure that electrical corporation rate
structures affecting the low-income tenants participating in the
program continue to provide a direct economic benefit from the
qualifying renewable solar energy
system.
(f)
(g) Nothing in this chapter is intended to supplant
CARE program rates as the primary mechanism for achieving the goals
of the CARE program.
(h) The program shall provide equal treatment for customers of
community choice aggregators.
(g)
(i) On or before July 30, 2018, and by July 30 of every
even third year thereafter through
2032, 2030, the commission shall submit
to the Legislature an assessment of the success of the Multifamily
Affordable Housing Renewables Solar Roofs
Program. That assessment shall include the number of qualified
multifamily affordable housing property sites that have a qualifying
renewable solar energy system for which
an award was made pursuant to this chapter and the dollar value of
the award, the electrical generating capacity of the qualifying
renewable energy system, the bill reduction outcomes of the program
for the participants, the cost of the program, the total electrical
system benefits, the environmental benefits, the progress made toward
reaching the goals of the program, the program's impact on the
CARE program budget, and the recommendations for improving the
program to meet its goals. The report shall include
an analysis of pending program commitments, reservations,
obligations, and projected demands for the program to determine
whether future ongoing funding allocations for the program are
substantiated. The report shall also include a summary of the
other programs intended to benefit disadvantaged communities,
including, but not limited to, the Single-Family Affordable Solar
Homes Program, the Multifamily Affordable Solar Housing Program, and
the Green Tariff Shared Renewables Program (Chapter 7.6 (commencing
with Section 2831)).
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.