New energy saving program targets low-income renters

The California Public Utilities Commission is amending its rules to greatly accelerate the process of installing energy efficient appliances in many rent-subsidized multi-unit apartment buildings.

California's largest private utilities have been setting aside millions of dollars each year to fund efficiency upgrades, but because of certain state rules, nearly $400 million had gone unspent, according to a PUC report.

To address that problem, the agency has directed four big investor-owned utilities - Southern California Edison, Southern California Gas Company, San Diego Gas & Electric and PG&E - to expand their energy savings assistance programs to  include the owners of rent-subsidized multi-unit housing.

The $80 million plan lifts some rules that had kept rent-subsidized multi-family buildings from qualifying for improvements.

Landlords and their tenants can already get certain discounts and rebates to improve their energy efficiency, but until now it was all on a case-by-case basis and fairly limited. Under the new rules, utilities must set up a process in which an entire complex can be approved at once for energy-saving appliances like refrigerators.

The PUC also cleared the way for landlords of rent-subsidized buildings to get energy-efficient water heaters and lighting in common areas.

The rules changes are "a huge decision that will transform how the low-income energy efficiency program in the state will offer services to residents," said Maria Stamas, project attorney at the Natural Resources Defense Council.

Stamas, who leads the Council's advocacy program to increase energy savings for low-income people, said about 200,000 households could benefit from the new multifamily energy savings program.

The new whole-building approach simultaneously targeting landlords and tenants will increase the numbers of families receiving energy-saving appliances, agreed Southern California Edison's Jose Buendia.

"Through this process we can engage tenants and give them the opportunity to opt in and take advantage of additional measures," said Buendia, who manages the company's multifamily programs. The program's guidelines are still in development and will roll out sometime next year, he said.

Buendia applauded the PUC for repealing a rule that prevented properties that had received certain rebates up to 10 years ago from returning for new rebates, despite more recent technological advances.

The commission also did away with a rule that disqualified buildings that did not need at least three energy-saving measures to be installed.