BILL NUMBER: AB 693	AMENDED
	BILL TEXT

	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 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  
Energy,  or  CARE   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,   $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 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.
   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, 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, 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)  (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 Program,
beginning with the fiscal year commencing July 1, 2016, and ending
with the fiscal year ending June 30, 2026. 
   (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, 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 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.