BILL NUMBER: AB 693 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 4, 2015
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 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 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,
2020, from the greenhouse gas allowance revenues received
by electrical corporations set aside for clean energy and energy
efficiency projects for the Multifamily Affordable Housing 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, to consider the most
appropriate program administration, as specified, with not more
than 10% of the allocated funds to be used for administration. The
bill would require the commission to authorize
authorize, by June 30, 2017, the award of monetary
incentives for 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 properties. The bill would require the commission to
require that the electricity generated by qualifying 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 tenants receive offsets
credits on utility bills from the program through
virtual net metering tariffs, as defined. tariffs that
allow for the allocation of credits, as specified. The bill
would require the commission, by July 30, 2018,
2020, and by July 30 of every third year thereafter
through 2030, 2029, to submit an
assessment, as specified, to the Legislature of the success
of the Multifamily Affordable Housing 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 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 solar energy
systems more accessible to low-income and disadvantaged communities
and, as in the case of the Multifamily Affordable Housing 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 solar energy
systems that have a generating capacity equivalent to at least 300
megawatts for the express purpose of lowering the energy bills of
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 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 Solar Roofs
Program established pursuant to this chapter.
(3) "Qualified multifamily affordable housing property" means a
multifamily residential 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 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 households have incomes at or below
60 percent of the area median income, as defined in subdivision (f)
of Section 50052.5 of the Health and Safety Code.
(4) "Solar energy system" means a solar energy photovoltaic
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) Adoption and implementation of the Multifamily Affordable
Housing Solar Roofs Program may count toward the satisfaction of the
commission's obligation to ensure that specific alternatives designed
for growth among residential customers in disadvantaged communities
are offered as part of the standard contract or tariff authorized
pursuant to paragraph (1) of subdivision (b) of Section 2827.1.
(2) Nothing in this section shall preclude electrical corporations
from offering and administering a distributed energy resource
program, including solar energy systems, in disadvantaged communities
offered under current or proposed programs using funds provided
under subdivision (c) of Section 748.5 or programs proposed to comply
with paragraph (1) of subdivision (b) as approved by the commission.
(b) (1)
(c) 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 Solar Roofs Program, beginning with the fiscal
year commencing July 1, 2016, and ending with the fiscal year ending
June 30, 2026. 2020. 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 any
funds remain uncommitted for three years, those funds shall be
credited to ratepayers pursuant to Section 748.5.
(c)
(d) The commission shall require
consider the most appropriate program
administration of the program
structure, including administration by a qualified third-party
administrator, selected by the commission through a competitive
bidding process. process, or administration
by an electrical corporation, in an existing or future proceeding.
(d)
(e) Not more than 10 percent of the funds allocated to
the program shall be used for administration.
(e)
(f) (1) The By June 30, 2017,
the commission shall authorize the award of monetary incentives
for qualifying 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 properties.
(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.
(3) The commission shall require that qualifying
renewable solar 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.
third-party owners of solar energy systems to provide ongoing
operations and maintenance of the system, monitor energy production,
and, where necessary, take appropriate action to ensure that the kWh
production levels projected for the system are achieved throughout
the period of the third-party agreement. Such actions may include,
but are not limited to, providing a performance guarantee of annual
production levels or taking corrective actions to resolve
under production problems.
(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.
(5) The commission shall require that no individual installation
receive incentives at a rate greater than 100 percent of the total
system installation costs.
(6) The commission shall establish local hiring requirements for
the program to provide economic development benefits to disadvantaged
communities.
(7) The commission shall establish energy efficiency requirements
for program participants that are equal to the
energy efficiency requirements established for the program described
in Section 2852, including participation in a federal, state, or
utility-funded energy efficiency program or documentation of a recent
energy efficiency retrofit.
(f)
(g) (1) Tenants Low-income
tenants who participate in the program shall receive
offsets credits on utility bills from
the program. The commission shall ensure that utility bill reductions
are achieved through virtual net metering tariffs.
tariffs that allow for the allocation of credits, such
as virtual net metering tariffs designed for Multifamily Affordable
Solar Housing Program participants, or other tariffs that
may be adopted by the commission pursuant to Section 2827.1.
(2) The commission shall ensure that electrical corporation
rate tariff structures affecting the
low-income tenants participating in the program continue to provide a
direct economic benefit from the qualifying solar energy system.
(g)
(h) Nothing in this chapter is intended to supplant
CARE program rates as the primary mechanism for achieving the goals
of the CARE program.
(h)
(i) The program commission
shall provide equal treatment for
determine the eligibility of qualified multifamily affordable housing
property tenants that are customers of community choice
aggregators.
(i)
(j) (1) On or before July 30,
2018, 2020, and by July 30 of every
third year thereafter through 2030, 2029,
the commission shall submit to the Legislature an assessment
of the success of the Multifamily Affordable
Housing Solar Roofs Program. That assessment shall include the number
of qualified multifamily affordable housing property sites that have
a qualifying 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)).
(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,
upon review, the commission finds there is insufficient participation
in the program, the commission may credit uncommitted funds back to
ratepayers pursuant to Section 748.5.
(3) As part of the annual workplan required pursuant to Section
321.6, the commission shall provide an annual update of the
Multifamily Affordable Housing Solar Roofs Program that shall
include, but not be limited to, the number of projects approved,
number of projects completed, number of pending projects awaiting
approval, and geographic distribution of the projects.
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.