Assignment of Proceeding
Michael R. Peevey is the assigned Commissioner and Dorothy J. Duda is the assigned Administrative Law Judge in this portion of the proceeding.
1. In D.06-12-033, the Commission adopted a 10-year total CSI budget of $2.1668 billion and a low-income incentive budget of $216.68 million.
2. Pub. Util. Code § 2852(c) requires that not less than 10% of overall CSI funds are used for installation of solar energy systems on low-income residential housing.
3. A full subsidy to the lowest income households that qualify will avoid the need for these households to take on additional debt.
4. The population that will qualify for low-income homeowner solar incentives is a smaller subset of California's population than those who currently qualify for CARE and LIEE programs.
5. Section 2851(a)(3) requires reasonable and cost-effective energy efficiency improvements as a condition of receiving solar incentives, with appropriate exemptions for low-income residential housing.
6. It is unlikely the utilities will need additional staff or equipment to handle paying incentives to qualifying low income solar applicants.
1. It is reasonable to allocate $108.34 million of the $216.68 million low-income budget for a single-family low-income solar incentive plan until such time as the Commission addresses a total budget and plan for solar incentives to multi-family low-income housing in the next portion of this proceeding.
2. The Commission should adopt the single-family low-income incentive plan described in this order and set forth in Appendix A for existing homeowners who meet the definition of low-income residential housing in Pub. Util. Code § 2852.
3. To maximize the low-income incentive budget, the Commission should provide partial subsidies to existing households that qualify as low-income per Section 2852 but are above 50% of the area median income.
4. The low-income solar incentive program should operate through December 31, 2015, and any unspent money on January 1, 2016, shall be used for cost-effective energy efficiency measures in low-income residential housing, as set forth in Section 2852.
5. The single-family low-income incentive program should be funded by PG&E, SCE, and SDG&E based on the percentages set forth in Table 2 of this order.
6. The chosen low-income Program Manager shall adhere to the budget allocations in Table 3 of this order.
7. The program should require a minimum performance requirement equal to .95 of the EPBB Design Factor, without a geographic correction, to provide high performing installations to low-income households anywhere in the three utilities' territories.
8. In order to obtain a Program Manager with expertise with low-income communities, the Commission should consider a non-profit organization, government agency, or a combination of public and private sector entities to administer this program, rather than the limiting administration to the utilities or existing CSI program administrators.
9. A low-income solar incentive program will require greater and more challenging outreach than the utilities' existing CARE and LIEE programs.
10. The single-family low-income solar incentive program should be administered by one entity, or Program Manager, to ensure consistency and equity in program delivery statewide while working with a diverse group of stakeholders and service providers.
11. Low-income incentive applicants should obtain an energy efficiency audit, and enroll in LIEE, if eligible, and have all feasible LIEE measures installed or be on the waiting list for installation prior to receiving solar incentives.
12. The system size eligible for low-income incentives should be based on an estimate of household load assuming all feasible LIEE measures are installed.
13. Energy Division should explore methods for expediting low-income solar incentive applicants' receipt of LIEE benefits.
14. The reporting and evaluation requirements set forth in Appendix A should be adopted.
15. Energy Division should ensure the Program Manager's contract includes an agreement to submit to an annual audit of program expenditures.
16. The Program Manager should obtain information on homeowners enrolled in LIEE from each utility, subject to confidentiality arrangements between the Program Manager and utility to protect customer privacy.
17. The Program Manager may only pay low-income incentives to a qualifying low-income homeowner who is also the system owner and occupant of the home.
18. Incentives shall only be paid after the Program Manager verifies system installation and operability.
19. The program authorized in this decision is unlikely to result in significant costs to PG&E, SCE, or SDG&E.
IT IS ORDERED that:
1. The single-family low-income solar incentive program set forth in Appendix A of this order is adopted.
2. Within three months of this order, the Energy Division shall develop a draft Request for Proposal (RFP) for the Low-Income Program Manager and issue it for comment to the parties in this proceeding. The Energy Division will consider any comments it receives, revise the RFP as necessary, and select either Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), or San Diego Gas & Electric Company (SDG&E) to issue the final RFP within 30 days after the Energy Division has directed it to do so.
3. The Energy Division will review the bids responding to the RFP and select the Low-Income Program Manager. Within 30 days of selection by Energy Division, the Program Manager shall submit a final program implementation plan to the Director of Energy Division for approval. Following this approval, Energy Division will direct one of the three utilities to contract with the Low-Income Program Manager.
4. PG&E, SCE, and SDG&E shall provide data on single-family homeowners enrolled in the Low-Income Energy Efficiency program to the Program Manager, subject to confidentiality arrangements to protect customer privacy.
5. Two years after the start of the Low-Income program, and every two years thereafter while the program is operational, the Energy Division will draft an RFP for program evaluation, direct either PG&E, SCE or SDG&E to issue the RFP, review the bids received in response to the RFP, and select a Low-Income Program Evaluator. The Energy Division will select one utility to contract with the winning bidder.
6. Energy Division shall arrange an annual audit of program expenditures, as specified in the Program Manager's contract.
7. The utility selected by Energy Division to contract with the Program Manager shall enter into a co-funding agreement with the other two utilities specifying how each of the other utilities will fund its share of the cost of program management from its CSI low-income program funds, including program evaluation and annual audit costs.
8. The existing California Solar Initiative program administrators, namely PG&E, SCE, and the California Center for Sustainable Energy, shall coordinate with the Low-Income Program Manager, as directed by Energy Division.
9. The assigned Administrative Law Judge (ALJ) in this or any successor proceeding may issue a ruling to reduce low-income solar incentives by up to 10% per year, following written justification from Energy Division staff issued by ruling with an opportunity for comment by all parties.
10. Energy Division may recommend to the assigned Commissioner or ALJ in this, or any successor proceeding, adjustments to any element of the low-income solar incentive program set forth in this order. At the discretion of the assigned Commissioner or ALJ, and if any recommendations require modification of a Commission order, the changes will be considered by the full Commission, after notice and an opportunity for comment by parties.
11. The revenue requirements of PG&E, SCE and SDG&E shall not increase as a result of the solar incentive program we authorize in this order.
This order is effective today.
Dated November 16, 2007, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
TIMOTHY ALAN SIMON
Commissioners
APPENDIX A
California Solar Initiative (CSI)
Single-Family Low-Income Incentive Program
The single-family low-income solar incentive program is for homeowners who occupy their homes and meet the definition of low-income residential housing established in Public Utilities Code Section 2852.26 The program will pay incentives towards a solar energy system that is defined as a solar energy 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 of electricity.
The goal of the CSI low-income incentive program should be to provide existing low-income single family homes with access to photovoltaic (PV) systems to decrease electricity usage and bills without increasing monthly household expenses. The program should strive to maximize households served and energy bill savings.
Incentive and Financing Structure
To qualify for incentives under this program, a property must meet the definition of low-income residential housing in Section 2852 and be occupied by the homeowner.
Households that qualify as "extremely low income" and "very low income" (i.e., up to 50% of area median income per the Health and Safety Code definitions referenced in Section 2852) can apply for a full-subsidy for systems up to 1 kilowatt (kW). The full subsidy is capped at a maximum of $10,000 per qualifying household and we will allocate a maximum of 20% of program funds for full-subsidies to qualifying households.27 Other households that qualify but are not "extremely low income" or "very low income" can receive a partial subsidy based on a sliding scale that considers the applicant's tax status and eligibility for the California Alternative Rates for Energy (CARE) program. Incentive rates are as follows for partial subsidies:
Partial Subsidy Single-Family
Low-Income Solar Incentives in $/watt28
Federal Income Tax Liability |
Qualifying Low-Income CARE-Eligible Homeowners |
Qualifying Low-Income Homeowners not eligible for CARE |
$0 |
$7.00 |
$5.75 |
$1 to $1,000 |
$6.50 |
$5.25 |
$1,001 to $2,000 |
$6.00 |
$4.75 |
The applicant must submit a federal income tax return from the year prior to the application to support estimated tax liability and CARE eligibility.
The Program Manager should seek low-cost loans through local government housing agencies or other private sources to cover the gap between the partial subsidy and total system cost.
The Program Manager may only pay low-income solar incentives to a qualifying low-income homeowner who is also the system owner and occupant of the home. Incentives shall be paid only after the Program Manager verifies that system installation is complete and the solar energy system is operable.
Budget and Program Timeline
The program budget is $108.34 million, unless modified by the Commission following review of multi-family low-income solar program proposals.
The program will be funded by Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E) according to the following percentages:
Utility |
PG&E |
SCE |
SDG&E |
Total |
Percentage |
43.7% |
46% |
10.3% |
100% |
Total Budget ($ in millions) |
$47.34 |
$49.8 |
$11.2 |
$108.34 |
The Program Manager shall ensure that the $108.34 million is allocated as follows across program functions:
Administration |
10% |
Marketing and Outreach |
4% |
Evaluation |
1% |
Incentives |
85% |
The program will operate through December 31, 2015, or until budgeted funds are exhausted, whichever is sooner. Any money unspent on January 1, 2016, shall be used for "cost-effective energy efficiency measures in low-income residential housing" as required by Section 2852(c)(3).
Performance Requirements
To qualify for incentives, a system must meet a minimum performance requirement equal to .95 of the EPBB Design Factor, as set forth in D.06-08-028. For purposes of the Low-Income Incentive Program, the Design Factor shall be calculated without the geographic correction.
All other CSI program requirements, as set forth in relevant Commission orders and the CSI Program Handbook, shall apply to low-income solar incentive applicants, unless the Program Manager can justify why a particular requirement should be modified. Changes to program requirements set forth by Commission order must be sought through a petition for modification of the relevant order. Changes to CSI Program Handbook requirements, if not set by Commission order, may be sought by the Program Manager through a letter to the Director of Energy Division, with a copy to the service list of R.06-03-004 or successor proceeding.
Energy Efficiency Requirements
Applicants must enroll in the Low-Income Energy Efficiency (LIEE) program, if eligible, and have all feasible LIEE measures installed prior to receiving a solar incentive, or be on the waiting list for installation.
Applicants must include an energy efficiency audit with their incentive application. The audit can be performed through LIEE, if applicant is eligible, or under the same requirements for audits in the mainstream CSI program. The Program Manager will review the audit along with the application to determine the maximum system size that can receive an incentive through the low-income incentive program. The maximum system size that can receive low-income solar incentives should be based on customer usage, adjusted based on an estimate of energy savings resulting from either:
· installation of all feasible LIEE measures (for those applicants who qualify), or
· for applicants who do not qualify for LIEE, installation of all feasible measures that would be covered if they were LIEE eligible. While installation is not required, the Program Manager should assist the applicant with financing for potential installation of energy efficiency measures identified by the applicant's audit along with their solar energy system.
The Program Manager shall ensure incentives are not paid until either feasible LIEE measures are installed, the applicant is on a waiting list for LIEE installation, or an energy efficiency audit is completed.
Program Management
The Single-Family Low-Income Solar Incentive Program shall be administered by one entity, or Program Manager, for all applicants within the service territories of PG&E, SCE, and SDG&E. The existing CSI program administrators shall coordinate with the Low-Income Program Manager, as directed by Energy Division.
Program Manager Selection Process
The Energy Division will develop and issue for comment to the parties in R.06-03-004, or any successor proceeding, a draft Request for Proposal (RFP) for the Low-Income Program Manager. The RFP should be consistent with the selection criteria and requirements set forth below. The Energy Division will consider the comments, revise the RFP as necessary, and direct one of the IOUs to issue the final RFP. The selected IOU shall issue the RFP within thirty days after the Energy Division has directed it to do so.
The Energy Division will review the responses to the RFP and select the Low-Income Program Manager based on the selection criteria and requirements listed below. Within 30 days of Program Manager selection, the Program Manager shall submit a final program implementation plan to the Director of Energy Division for approval. Following Energy Division approval, Energy Division will direct the selected IOU to contract with the Low-Income Program Manager. Energy Division will direct the Program Manager. The Energy Division may direct the selected IOU to renew or extend the contract, as appropriate. The contract shall permit the Energy Division to direct the contracting utility to cancel the contract if the Energy Division determines that the Program Manager's performance is deficient or if there is another breach of the contract. Energy Division shall ensure the mainstream CSI program administrators coordinate with the Low-Income Program Manager to facilitate coordinated program implementation.
The utility contracting with the Program Manger will enter into a co-funding agreement with each of the other utilities specifying how each of the other utilities will fund its share of the cost of program management from its Low-Income Program funds. The contracting utility will then pay the Program Manager. The co-funding agreement will govern all financial transactions among the utilities for the low-income incentive program based on the program budget, including program and annual audit evaluation costs.
While the utilities will jointly pay the cost of program management, each utility will pay incentives directly to qualifying applicants in its service territory. Accordingly, the co-funding agreement between the utilities should also describe how the Program Manager will inform each utility which applicants should be awarded incentive payments.
Program Manager Selection Criteria and Requirements
RFP responses will be evaluated to determine whether potential the Program Manager is adequately staffed with personnel who have the following qualifications and experience:
· Experience installing and/or designing solar PV systems
· Experience serving low-income populations
· Experience developing marketing strategies directed at low-income communities and accessible communications for persons with disabilities
· Experience creating finance packages appropriate for energy efficiency measures and/or solar energy systems
· Knowledge of the needs of low-income, single-family homeowners
· Language ability for major language requirements of eligible low-income populations
· Knowledge of LIEE and CARE programs
· Experience and knowledge of energy-efficiency measures and energy audits at the residential level
· Widespread city and county government contacts throughout California
· Ability to create partnerships with private sector financing entities
· Existing relationships with affordable housing
· Experience delivering programs through collaboration with multiple stakeholders (i.e., no preexisting constraints on partnering latitude)
· Knowledge of or experience with job training and/or workforce development programs, especially for low-income communities
· Data gathering and analysis skills
The successful bidder for Program Manager must demonstrate the ability to perform the following functions:
· Establish relationships with low-income, single family homeowners
· Establish relationships with community-based organizations that serve low-income homeowners to conduct outreach
· Partner and work with solar installers to install PV on target homes, and partner with appropriate entities to develop " green job" training or other workforce development programs
· Hire multilingual staff to meet language requirements of low-income populations
· Hire staff that can develop communications accessible to persons with disabilities
· Educate low-income customers on solar technology and energy efficiency measures
· Create a marketing plan to attract eligible populations of all qualifying income levels
· Build organizational capacity to meet the demands of a statewide program
· Implement the strategy through a program implementation plan, through either a phase-in or statewide approach, to achieve program milestones
· Collaborate and partner with city and county housing agencies to create in-place, flexible financing packages
· Explore other funding options with corporations and government agencies
· Work with PG&E, SCE, and SDG&E to direct incentive payments to eligible recipients
· Work with the Commission's Energy Division staff and an independent evaluator to monitor and report on the program's progress
· Collaborate with the administrators of the LIEE and CARE programs on delivery strategy
· Provide customer support, including responding to complaints, problems, and maintenance needs
RFP responses will be evaluated based on the qualifications and abilities listed above as well as respondents marketing and outreach plans and program implementation plans. Program implementation plans should address financing approaches and methods for integrating solar investment with low-income housing rehabilitation. We encourage plans to include a workforce development plan that provides solar installer job training for low-income communities.
Marketing and Outreach
The Program Manager should develop a narrowly targeted marketing and outreach program for eligible low-income recipients as defined Section 2852, which meets the following specifications:
· The Program Manager should collaborate with housing agencies to find and attract eligible households and coordinate with utility LIEE programs to identify qualifying low-income homeowners.
· The Program Manager must create outreach materials and a plan to educate low-income customers on solar technology, on topics including but not limited to:
o Proper inspection and long-term maintenance of the PV system in order to ensure energy bill benefits.
o Various measures, including behavioral changes, energy efficiency, and solar, that recipients can use to manage their energy usage and bills.
o Information regarding where state assistance for energy efficiency measures can be obtained.
o How to apply for federal tax credits.
· The marketing and outreach plan must align with the language needs of low-income communities, and meet the Dymally-Alatorre Bilingual Services Act of California (1973) that guides the provision of information to Low English Proficiency populations. The plan must also address the accessibility needs of persons with disabilities.
Milestones and Evaluation Criteria
The low-income solar program should reach the following milestones:
1. Within 12 months of the date of this order, the CSI low-income incentive program shall be implemented in the service areas of PG&E, SCE and SDG&E.
2. By the end of 2010, 1,000 PV systems shall be installed on low-income, single-family homes.
3. By the end of 2010, the Program Manager shall have made reasonable efforts to identify the eligible population across the state within the PG&E, SCE and SDG&E territories, and have attempted to contact them about the low-income incentive program.
The Program Manager shall submit quarterly reports to the Director of the Energy Division on progress of the low-income incentive program. The quarterly reports should include the following items, but Energy Division may modify this list as it deems appropriate:
· Number of applications received
· Number of applications accepted
· Size of installations and expected annual output
· Total system cost in $/kW before subsidy
· Progress of installations
· Geographic areas served
· Incentive dollars paid by each utility
· Installer used (if applicable)
· LIEE/CARE-eligibility of applicants
· Administrative and marketing expenditures
The Program Manager shall submit to an annual audit of program expenditures. The purpose of the audit is to ensure program funds are paid to legitimate and verified installations of solar energy systems on qualifying homes and that administrative funds are spent in a reasonable and appropriate manner. Energy Division should ensure this audit requirement is part of the Program Manager's contract.
Every two years, Energy Division shall select an independent evaluator through an RFP process to review both the Program Manager and the low-income incentive program. Energy Division will direct one of the utilities to enter into a contract with the evaluator. The existing co-funding agreement with the other utilities shall govern how the evaluation contract is funded from each utility's low-income program funds.
The evaluation should include, but is not limited to, the following factors:
· Number of households served
· Cost of program per household (both incentive costs and total costs including program administration)
· Overall cost of program and cost of program components (i.e., administration, marketing, and incentives)
· The average amount energy bill is reduced per household (both in dollars and kWh)
· Whether participating households perform an Energy Audit
· Other, non-solar energy saving measures households have implemented along with their solar installation
· Whether or not the program increased household debt-load
· Customer satisfaction
· Turnover of homeowners in houses served and ongoing residence status of the home
· Languages used in outreach and languages spoken by participating households
· Location of households served
· Location of eligible households not served
· Geographic coverage across the state
· Percent of total CARE/LIEE customers served by program and percent of solar incentive recipients who are CARE/LIEE participants
· The effectiveness of consumer education programs on solar and energy efficiency
· Effectiveness of energy efficiency measures as related to PV systems
· System performance and maintenance adequacy
(END OF APPENDIX A)
APPENDIX B
Excerpts from the California Health and Safety Code
Section 50079.5.
(a) "Lower income households" means persons and families whose income does not exceed the qualifying limits for lower income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. The limits shall be published by the department in the California Code of Regulations as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event the federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjusted for family size and revised annually.
(b) "Lower income households" includes very low income households, as defined in Section 50105, and extremely low income households, as defined in Section 50106. The addition of this subdivision does not constitute a change in, but is declaratory of, existing law.
(c) As used in this section, "area median income" means the median family income of a geographic area of the state.
Section 50105.
(a) "Very low income households" means persons and families whose incomes do not exceed the qualifying limits for very low income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. These qualifying limits shall be published by the department in the California Code of Regulations as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event the federal standards are discontinued, the department shall, by regulation, establish income limits for very low income households for all geographic areas of the state at 50 percent of area median income, adjusted for family size and revised annually.
(b) "Very low income households" includes extremely low income households, as defined in Section 50106. The addition of this subdivision does not constitute a change in, but is declaratory of, existing law.
(c) As used in this section, "area median income" means the median family income of a geographic area of the state.
Section 50106.
"Extremely low income households" means persons and families whose incomes do not exceed the qualifying limits for extremely low income families as established and amended from time to time by the Secretary of Housing and Urban Development and defined in Section 5.603(b) of Title 24 of the Code of Federal Regulations. These limits shall be published by the department in the California Code of Regulations as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event the federal standards are discontinued, the department shall, by regulation, establish income limits for extremely low income households for all geographic areas of the state at 30 percent of area median income, adjusted for family size and revised annually. As used in this section, "area median income" means the median family income of a geographic area of the state.
Section 50052.5.
(a) For any owner-occupied housing that receives assistance prior to January 1, 1991, and a condition of that assistance is compliance with this section, "affordable housing cost" with respect to lower income households may not exceed 25 percent of gross income.
(b) For any owner-occupied housing that receives assistance on or after January 1, 1991, and a condition of that assistance is compliance with this section, "affordable housing cost" may not exceed the following:
(1) For extremely low households the product of 30 percent times 30 percent of the area median income adjusted for family size appropriate for the unit.
(2) For very low income households the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate for the unit.
(3) For lower income households whose gross incomes exceed the maximum income for very low income households and do not exceed 70 percent of the area median income adjusted for family size, the product of 30 percent times 70 percent of the area median income adjusted for family size appropriate for the unit. In addition, for any lower income household that has a gross income that equals or exceeds 70 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable housing cost not exceed 30 percent of the gross income of the household.
(4) For moderate-income households, affordable housing cost shall not be less than 28 percent of the gross income of the household, nor exceed the product of 35 percent times 110 percent of area median income adjusted for family size appropriate for the unit. In addition, for any moderate-income household that has a gross income that exceeds 110 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable housing cost not exceed 35 percent of the gross income of the household.
(c) The department shall, by regulation, adopt criteria defining, and providing for determination of, gross income, adjustments for family size appropriate to the unit, and housing cost for purposes of determining affordable housing cost under this section. These regulations may provide alternative criteria, where necessary to be consistent with pertinent federal statutes and regulations governing federally assisted housing. The agency may, by regulation, adopt alternative criteria, and pursuant to subdivision (f) of Section 50462, alternative percentages of income may be adopted for agency-assisted housing development.
(d) With respect to moderate- and lower income households who are tenants of rental housing developments and members or shareholders of cooperative housing developments, or limited equity cooperatives "affordable housing cost" has the same meaning as affordable rent, as defined in Section 50053.
(e) Regulations of the department shall also include a method for determining the maximum construction cost, mortgage loan, or sales price that will make housing available to an income group at affordable housing cost.
(f) For purposes of this section, "area median income" shall mean area median income as published by the department pursuant to Section 50093.
(g) For purposes of this section, "moderate income household" shall have the same meaning as "persons and families of moderate income" as defined in Section 50093.
(h) For purposes of this section, and provided there are no pertinent federal statutes applicable to a project or program, "adjusted for family size appropriate to the unit" shall mean for a household of one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four-bedroom unit.
Section 50053.
(a) For any rental housing development that receives assistance prior to January 1, 1991, and a condition of that assistance is compliance with this section, "affordable rent" with respect to lower income households shall not exceed the percentage of the gross income of the occupant person or household established by regulation of the department that shall not be less than 15 percent of gross income nor exceed 25 percent of gross income.
(b) For any rental housing development that receives assistance on or after January 1, 1991, and a condition of that assistance is compliance with this section, "affordable rent," including a reasonable utility allowance, shall not exceed:
(1) For extremely low income households the product of 30 percent times 30 percent of the area median income adjusted for family size appropriate for the unit.
(2) For very low income households, the product of 30 percent times 50 percent of the area median income adjusted for family size appropriate for the unit.
(3) For lower income households whose gross incomes exceed the maximum income for very low income households, the product of 30 percent times 60 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those lower income households with gross incomes that exceed 60 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household.
(4) For moderate-income households, the product of 30 percent times 110 percent of the area median income adjusted for family size appropriate for the unit. In addition, for those moderate-income households whose gross incomes exceed 110 percent of the area median income adjusted for family size, it shall be optional for any state or local funding agency to require that affordable rent be established at a level not to exceed 30 percent of gross income of the household.
(c) The department's regulation shall permit alternative percentages of income for agency-assisted rental and cooperative housing developments pursuant to regulations adopted under subdivision (f) of Section 50462. The department shall, by regulation, adopt criteria defining and providing for determination of gross income, adjustments for family size appropriate to the unit, and rent for purposes of this section. These regulations may provide alternative criteria, where necessary, to be consistent with pertinent federal statutes and regulations governing federally assisted rental and cooperative housing. The agency may, by regulation, adopt alternative criteria, and pursuant to subdivision (f) of Section 50462, alternative percentages of income may be adopted for agency-assisted housing developments.
For purposes of this section, "area median income," "adjustments for family size appropriate to the unit," and "moderate-income household" shall have the same meaning as provided in Section 50052.5.
Section 50093.
"Persons and families of low or moderate income" means persons and families whose income does not exceed 120 percent of area median income, adjusted for family size by the department in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937. However, the agency and the department jointly, or either acting with the concurrence of the Secretary of the Business and Transportation Agency, may permit the agency to use higher income limitations in designated geographic areas of the state, upon a determination that 120 percent of the median income in the particular geographic area is too low to qualify a substantial number of persons and families of low or moderate income who can afford rental or home purchase of housing financed pursuant to Part 3 (commencing with Section 50900) without subsidy.
"Persons and families of low or moderate income" includes very low income households, as defined in Section 50105, extremely low income households, as defined in Section 50106, and lower income households as defined in Section 50079.5, and includes persons and families of extremely low income, persons and families of very low income, persons and families of low income, persons and families of moderate income, and middle-income families. As used in this division:
(a) "Persons and families of low income" or "persons of low income" means persons or families who are eligible for financial assistance specifically provided by a governmental agency for the benefit of occupants of housing financed pursuant to this division.
(b) "Persons and families of moderate income" or "middle-income families" means persons and families of low or moderate income whose income exceeds the income limit for lower income households.
(c) "Persons and families of median income" means persons and families whose income does not exceed the area median income, as adjusted by the department for family size in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937.
As used in this section, "area median income" means the median family income of a geographic area of the state, as annually estimated by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937. In the event these federal determinations of area median income are discontinued, the department shall establish and publish as regulations income limits for persons and families of median income for all geographic areas of the state at 100 percent of area median income, and for persons and families of low or moderate income for all geographic areas of the state at 120 percent of area median income. These income limits shall be adjusted for family size and shall be revised annually.
For purposes of this section, the department shall file, with the Office of Administrative Law, any changes in area median income and income limits determined by the United States Department of Housing and Urban Development, together with any consequent changes in other derivative income limits determined by the department pursuant to this section. These filings shall not be subject to Article 5 (commencing with Section 11346) or Article 6 (commencing with Section 11349) of Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government Code, but shall be effective upon filing with the Office of Administrative Law and shall be published as soon as possible in the California Regulatory Code Supplement and the California Code of Regulations.
The department shall establish and publish a general definition of income, including inclusions, exclusions, and allowances, for qualifying persons under the income limits of this section and Sections 50079.5, 50105, and 50106 to be used where no other federal or state definitions of income apply. This definition need not be established by regulation.
Nothing in this division shall prevent the agency or the department from adopting separate family size adjustment factors or programmatic definitions of income to qualify households, persons, and families for programs of the agency or department, as the case may be.
(END OF APPENDIX B)
26 All statutory references are to the Public Utilities Code, unless otherwise noted.
27 A household that qualifies for a full subsidy can either take the full subsidy for up to a 1 kW system or take a partial subsidy, as described below, for a larger system. But a qualifying full subsidy household cannot take advantage of both options.
28 The Administrative Law Judge (ALJ) in Rulemaking (R.) 06-03-004 or any successor proceeding may reduce low income solar incentives up to 10% per year after receiving written justification from Energy Division, which has been issued by the ALJ in a ruling for parties to comment on. Any increases to low income solar incentive levels shall be considered only by the full Commission, based on petition for modification of a decision setting incentive rates.
