BILL NUMBER: AB 693 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 16, 2015
AMENDED IN ASSEMBLY APRIL 30, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Eggman
Members Eggman and Williams
FEBRUARY 25, 2015
An act to amend Sections 1812.84 and 1812.85 of the Civil
Code, relating to health studio services. 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. Health studio services:
cancellation. Multifamily Affordable Housing
Renewables 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, 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 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 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 300
megawatts on qualified multifamily affordable housing properties. The
bill would require the commission to require that the electricity
generated by qualifying renewable 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 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 year thereafter through 2032, to submit an assessment,
as specified, to the Legislature of the success of the Multifamily
Affordable Housing Renewables 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.
Existing law authorizes a consumer to cancel a contract for health
studio services within specified timeframes after the contract is
executed, if the health studio fails to provide the specific
facilities advertised or offered, or if the health studio eliminates
or reduces the scope of the facilities, as specified.
The bill would specify that a contract for health studio services
may be canceled by the buyer in person, via first-class mail or from
an email address. The bill would make other conforming changes.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
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, 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
energy systems, including solar energy resources, more accessible to
low-income and disadvantaged communities and, as in the case of the
Multifamily Affordable Housing Renewables 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
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
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 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
Program established pursuant to this chapter.
(3) "Qualified multifamily affordable housing property" means a
multifamily residential complex of at least five rental housing units
that is low-income residential housing, as defined in subdivision
(a) of Section 2852, and that meets at least one 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 60 percent of the
area median income of the county.
(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.
(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) The commission shall annually authorize the allocation of one
hundred million dollars ($100,000,000) from the revenues described in
subdivision (c) of Section 748.5 for the Multifamily Affordable
Housing Renewables Program, beginning with the fiscal year commencing
July 1, 2016, and ending with the fiscal year ending June 30, 2026.
(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 more than 10 percent of
the funds allocated to the program shall be used for administration.
(d) (1) The commission shall authorize the award of monetary
incentives for qualifying renewable 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 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) 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) 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) 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) The commission shall require that no individual installation
receive incentives at a rate greater than 100 percent of the total
system installation costs.
(7) The commission shall establish local hiring requirements for
the program to provide economic development benefits to disadvantaged
communities.
(8) The commission shall establish energy efficiency requirements
for program participants that are equal to, or greater than the
energy efficiency requirements established for the program described
in Section 2852.
(e) (1) Eligible customers who participate in the program 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 energy system.
(f) Nothing in this chapter is intended to supplant CARE program
rates as the primary mechanism for achieving the goals of the CARE
program.
(g) On or before July 30, 2018, and by July 30 of every even year
thereafter through 2032, the commission shall submit to the
Legislature an assessment of the success of the Multifamily
Affordable Housing Renewables Program. That assessment shall include
the number of qualified multifamily affordable housing property sites
that have a qualifying renewable 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, and the recommendations for
improving the program to meet its goals. 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.
SECTION 1. Section 1812.84 of the Civil Code is
amended to read:
1812.84. (a) A contract for health studio services may not
require payments or financing by the buyer to exceed the term of the
contract, nor may the term of the contract exceed three years. This
subdivision does not apply to a member's obligation to pay valid,
outstanding moneys due under the contract, including moneys to be
paid pursuant to a termination notice period in the contract in which
the termination notice period does not exceed 30 days.
(b) A contract for health studio services shall include a
statement printed in a size at least 14-point type that discloses the
length of the term of the contract. This statement shall be placed
above the space reserved for the signature of the buyer.
(c) At any time a cancellation is authorized by this title, a
contract for health studio services may be canceled by the buyer in
person, via first-class mail or from an email address on file with
the health studio.
SEC. 2. Section 1812.85 of the Civil Code is
amended to read:
1812.85. (a) Every contract for health studio services shall
provide that performance of the agreed-upon services will begin
within six months after the date the contract is entered into. The
consumer may cancel the contract and receive a pro rata refund if the
health studio fails to provide the specific facilities advertised or
offered in writing by the time indicated. If no time is indicated in
the contract, the consumer may cancel the contract within six months
after the execution of the contract and shall receive a pro rata
refund. If a health studio fails to meet a timeline set forth in this
section, the consumer may cancel the contract at any time after the
expiration of the timeline. However, if following the expiration of
the timeline, the health studio provides the advertised or
agreed-upon services, the consumer may cancel the contract up to 10
days after those services are provided.
(b) (1) Every contract for health studio services shall, in
addition, contain on its face, and in close proximity to the space
reserved for the signature of the buyer, a conspicuous statement in a
size equal to at least 10-point boldface type, as follows:
"You, the buyer, may choose to cancel this agreement at any time
prior to midnight of the fifth business day of the health studio
after the date of this agreement, excluding Sundays and holidays. To
cancel this agreement, mail, email, or deliver a signed and dated
notice that states that you, the buyer, are canceling this agreement,
or words of similar effect. The notice shall be sent via first-class
mail, from an email address on file with the health studio, or
delivered in person to,
__________________________________
(Name of health studio operator)
at ______________________________________
(Address and e-mail address of health
____________________
studio operator).''
(2) The contract for health studio services shall contain on the
first page, in a type size no smaller than that generally used in the
body of the document, the following: (A) the name and address of the
health studio operator to which the notice of cancellation is to be
mailed, and (B) the date the buyer signed the contract.
(3) The contract shall provide a description of the services,
facilities, and hours of access to which the consumer is entitled.
Any services, facilities, and hours of access that are not described
in the contract shall be considered optional services, and these
optional services shall be considered as separate contracts for the
purposes of this title and Section 1812.83.
(4) Until the health studio operator has complied with this
section, the buyer may cancel the contract for health studio
services.
(5) All moneys paid pursuant to a contract for health studio
services shall be refunded within 10 days after receipt of the notice
of cancellation, except that payment shall be made for any health
studio services received prior to cancellation.
(c) If at any time during the term of the contract, including a
transfer of the contractual obligation, the health studio eliminates
or substantially reduces the scope of the facilities, such as
swimming pools or tennis courts, that were described in the contract,
in an advertisement relating to the specific location, or in a
written offer, and available to the consumer upon execution of the
contract, the consumer may cancel the contract and receive a pro rata
refund. The consumer may not cancel the contract pursuant to this
subdivision if the health studio, after giving reasonable notice to
its members, temporarily takes facilities out of operation for
reasonable repairs, modifications, substitutions, or improvements.
This subdivision shall not be interpreted to give the consumer the
right to cancel a contract because of changes to the type or quantity
of classes or equipment offered, provided the consumer is informed
in the contract that the health studio reserves the right to make
changes to the type or quantity of classes or equipment offered and
the changes to the type or quantity of classes or equipment offered
are reasonable under the circumstances.
(d) (1) If a contract for health studio services requires payment
of one thousand five hundred dollars ($1,500) to two thousand dollars
($2,000), inclusive, including initiation fees or initial membership
fees, by the person receiving the services or the use of the
facility, the person shall have the right to cancel the contract
within 20 days after the contract is executed.
(2) If a contract for health studio services requires payment of
two thousand one dollars ($2,001) to two thousand five hundred
dollars ($2,500), inclusive, including initiation fees or initial
membership fees, by the person receiving the services or the use of
the facility, the person shall have the right to cancel the contract
within 30 days after the contract is executed.
(3) If a contract for health studio services requires payment of
two thousand five hundred one dollars ($2,501) or more, including
initiation fees or initial membership fees, by the person receiving
the services or the use of the facility, the person shall have the
right to cancel the contract within 45 days after the contract is
executed.
(4) The right of cancellation provided in this subdivision shall
be set out in the membership contract.
(5) The rights and remedies under this paragraph are cumulative to
any rights and remedies under other law.
(6) A health studio entering into a contract for health studio
services that requires a payment of less than one thousand five
hundred dollars ($1,500), including initiation or initial membership
fees and exclusive of interest or finance charges, by the person
receiving the services or the use of the facilities, is not required
to comply with paragraph (1), (2), or (3).
(e) Upon cancellation, the consumer shall be liable only for that
portion of the total contract payment, including initiation fees and
other charges however denominated, that has been available for use by
the consumer, based upon a pro rata calculation over the term of the
contract. The remaining portion of the contract payment shall be
returned to the consumer by the health studio.