CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 306

Introduced by Senator Caballero

February 02, 2023

An act to amend Section 25665.3 of the Public Resources Code, relating to energy, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 306, as introduced, Caballero. Equitable Building Decarbonization Program: direct install program.
Existing law requires the State Energy Resources Conservation and Development Commission to establish the Equitable Building Decarbonization Program, which includes establishing a statewide incentive program for low-carbon building technologies and the direct install program to fund certain projects, including installation of energy efficient electric appliances, energy efficiency measures, demand flexibility measures, wiring and panel upgrades, building infrastructure upgrades, efficient air conditioning systems, ceiling fans, and other measures to protect against extreme heat, where appropriate, and remediation and safety measures to facilitate the installation of new technologies. Existing law authorizes the commission to administer the direct install program through regional direct install third-party implementers, as specified. Existing law requires that the direct install program give preference to projects in buildings that meet specified criteria. The Budget Act of 2022 appropriated $112,000,000 from the General Fund for purposes of the Equitable Building Decarbonization Program.
This bill would revise and recast the direct install program to, among other things, expressly require the commission to award grants through the program, require that third-party implementers perform the projects funded through the program rather than authorizing the commission to administer the program through regional third-party implementers, limit participation in the program to certain individuals, also give preference to projects in buildings in specified regions of the state, and expand the projects eligible to be funded through the program, as specified. By expanding the purposes for which the moneys appropriated for purposes of the Equitable Building Decarbonization Program may be used, the bill would make an appropriation.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 25665.3 of the Public Resources Code is amended to read:

25665.3.
 The (a) Using moneys appropriated in Items 3360-002-0001 and 3360-102-0001 of Section 2.00 of the Budget Act of 2022, as amended by Chapter 249 of the Statutes of 2022, for the Equitable Building Decarbonization Program, the commission shall establish and administer the direct install program consistent with all of the following: to award grants consistent with this section.
(b) The following individuals are eligible to apply for a grant through the direct install program:
(1) Low- to moderate-income residents.
(2) Homeowners with incomes at or below 80 percent of the statewide median income where the building that would benefit from the grant is valued below five hundred thousand dollars ($500,000).
(3) Individuals over 65 years of age.
(4) Individuals with permanent disabilities.
(5) Owners of multifamily residential buildings that receive federal or state funding assistance through low-income renter programs, including the program established in Section 8 of the United States Housing Act of 1937 (42 U.S.C. Sec. 1437), or other affordable housing funding programs with permanent deed restrictions of no less than 25 years.

(a)

(c) Participation in the direct install program shall be at minimal or no cost for low-to-moderate income residents, with preference given low- to moderate-income residents.
(d) In awarding grants, the commission shall give preference to applications where the building that would benefit from the grant meets one or more of the following criteria:
(1) The building is located in a under-resourced community.
(2) The building is owned or managed by a California Native American tribe or a California tribal organization.
(3) The building is owned by a member of a California Native American tribe.

(b)The commission may administer the direct install program through regional direct install third-party implementers selected through a competitive solicitation process.

(4) The building is located in an interior region of the state where summer temperatures reach 100 degrees Fahrenheit or higher, or that experiences extreme heat events, including the central Valley and the Imperial Valley.
(e) (1) A project funded by a grant from the direct install program shall be performed by a third-party implementer.
(2) An entity may apply to the commission to be classified as a third-party implementer for purposes of the direct install program.
(3) The commission shall review applications submitted pursuant to paragraph (2) and, through a competitive solicitation process, select the applicants to classify as third-party implementers for purposes of the direct install program. In selecting the applicants to classify as third-party implementers, the commission shall prioritize applications from entities that include at least one community-based organization in order to ensure for the provision of culturally-appropriate outreach, education, and support to households participating in the direct install program, and from entities that employ workers from local communities.

(c)

(f) The direct install program shall reduce the emissions of greenhouse gases, and shall encourage, where feasible, resiliency to extreme heat, indoor air quality improvements, energy affordability, and grid reliability support.

(d)

(g) (1) Projects eligible to be funded by grants awarded through the direct install program include installation of energy efficient electric appliances, energy efficiency measures, demand flexibility measures, wiring and panel upgrades, building infrastructure upgrades, efficient air conditioning systems, ceiling fans, and other measures to protect against extreme heat, where appropriate, and remediation and safety measures to facilitate the installation of new technologies.
(2) The measures described in paragraph (1) include, but are not limited to, all of the following:
(A) Sealing holes and cracks around doors, windows, or pipes.
(B) Improving home insulation.
(C) Installing energy efficient double-paned windows.
(D) Checking heating and air conditioning systems to ensure the systems run smoothly.
(E) Installing energy efficient heating, ventilation, or air conditioning systems.
(F) Repairing or replacing water heaters.
(G) Installing heat pumps.
(H) Installing solar energy systems for use by multifamily units. For purposes of this subparagraph, “solar energy system” has the same meaning as defined in Section 2870 of the Public Utilities Code.

(e)

(h) The direct install program may include tenant protections for participating rental properties. These protections may include requiring the consent of tenants impacted by the work, tenant education provided by community-based organizations, protections against short-term and long-term displacement, and limits on increases in rent after completion of a project funded pursuant to the direct install program.

(f)

(i) Projects funded pursuant to the direct install program shall be performed by workers paid prevailing wage where possible and when applicable.

(g)

(j) The commission may establish additional project and eligibility guidelines for purposes of the direct install program.