(a) As used in this section, the following terms have the
(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 meets or exceeds the eligibility criteria established pursuant
to Section 25782 of the Public Resources Code.
(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.
(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, 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.
(d) The commission shall consider the most appropriate program
administration structure, including administration by a qualified
third-party administrator, selected by the commission through a
competitive bidding process, or administration by an electrical
corporation, in an existing or future proceeding.
(e) Not more than 10 percent of the funds allocated to the program
shall be used for administration.
(f) (1) 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
(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 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
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
(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
(7) The commission shall establish energy efficiency requirements
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.
(g) (1) Low-income tenants who participate in the program shall
receive credits on utility bills from the program. The commission
shall ensure that utility bill reductions are achieved through
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 tariff
structures affecting the low-income tenants participating in the
program continue to provide a direct economic benefit from the
qualifying solar energy system.
(h) Nothing in this chapter is intended to supplant CARE program
rates as the primary mechanism for achieving the goals of the CARE
(i) The commission shall determine the eligibility of qualified
multifamily affordable housing property tenants that are customers of
community choice aggregators.
(j) (1) On or before July 30, 2020, and by July 30 of every third
year thereafter through 2029, the commission shall submit to the
Legislature an assessment 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.