BILL ANALYSIS
AB 1234
Page 1
Date of Hearing: April 24, 2007
ASSEMBLY COMMITTEE ON JUDICIARY
Dave Jones, Chair
AB 1234 (Wolk) - As Amended: April 18, 2007
SUBJECT : REAL PROPERTY: FURNACES
KEY ISSUES :
1)SHOULD A DWELLING THAT CONTAINS AN OLD FLOOR FURNACE, AFTER
JANUARY 1, 2014, BE DEEMED UNTENANTABLE?
2)SHOULD THE POLICY OF CALIFORNIA BE A REQUIREMENT THAT OLD
FLOOR FURNACES IN ALL DWELLINGS IN CALIFORNIA BE REPLACED?
3)SHOULD THE PUBLIC UTILITIES COMMISSION SUBSIDIZE THE
REPLACEMENT OF THESE OLD FLOOR FURNACES FOR LOW-INCOME
RESIDENTS?
SYNOPSIS
This bill provides that a dwelling that contains an old floor
furnace, after January 1, 2014, shall be deemed untenantable and
requires the California Alternate Rates for Energy program to
establish a furnace replacement program for low-income
residents. According to the author, old gas floor and wall
furnaces have a history of causing house fires and carbon
monoxide poisoning resulting in death and injury. The
California Professional Firefighters explain that these old
furnaces are hazardous because they often lack vents or flues.
In support, the California Rural Legal Assistance Foundation,
states that this bill is an appropriate mechanism for replacing
old heaters that can and do result in death or serious injury.
In opposition, Sempra Energy, argues that age and type of
furnace are not automatic conditions for replacement since many
older furnaces are operating properly. Sempra Energy contends
that not all floor furnaces are inherently unsafe or lack vents.
SUMMARY : Provides that a dwelling that contains an old floor
furnace, after January 1, 2014, shall be deemed untenantable and
requires the California Alternate Rates for Energy program to
establish a furnace replacement program for low-income
residents. Specifically, this bill :
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1)Defines "floor furnace" to mean a self-contained,
floor-mounted space heater without ducts.
2)Defines "old floor furnace" to mean a floor furnace that is
more than 30 years old.
3)Defines "old wall furnace" to mean a wall-mounted,
self-contained space heater without ducts that exceed 10
inches that is more 30 years old.
4)Defines "residential dwelling unit" to mean a detached home,
mobile home, manufactured home or a unit in a multi-family
structure occupied by either the owner or a tenant.
5)Provides that it is the policy of California that old floor
furnaces shall be replaced in all dwellings in California.
6)Provides that on and after January 1, 2014, an old floor
furnace or any unvented furnace or heating facility located in
the floor of the dwelling shall not be considered as
conforming to applicable law, making the dwelling
untenantable.
7)Provides that the Public Utilities Commission (PUC), in
consultation with the Low-Income Oversight Board and corporate
participants in the California Alternate Rates for Energy
program (CARE), shall establish a program to take effect on
July 1, 2008 and to continue to December 31, 2013, to replace
old gas furnaces in residential dwelling units occupied by
customers eligible for CARE. Provides that this furnace
replacement program shall provide financial support for
replacing all eligible gas floor furnaces by December 31,
2013.
EXISTING LAW :
1)Establishes a low-income energy assistance program for
electric and natural gas service customers of the
investor-owned utilities funded by a surcharge on energy
bills. Establishes CARE, which provides a 15 percent bill
discount on electric and natural gas bills. Requires the
commission to examine methods to improve CARE enrollment,
including comparing information from CARE and the Universal
Lifeline Telephone Service. Requires the commission to ensure
that the CARE discount correctly reflects the level of need of
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customers. (Public Utilities Code Sections 386; 739.1.)
2)Establishes the Low-Income Oversight Board for the purpose of
advising the PUC on low-income electric and gas customer
issues and serving as a liaison for the PUC to low-income
ratepayers and representatives. Requires the PUC, with the
assistance of the Low-Income Oversight Board, to conduct an
assessment of the needs of low-income electricity and gas
ratepayers. Requires the assessment to include an evaluation
of the implementation of low-income programs and the
effectiveness of weatherization services and energy efficiency
measures in low-income households. (Public Utilities Code
Section 382.1.)
3)Requires the lessor of a building intended for human occupancy
to put the building into a condition fit for occupation and to
repair all subsequent dilapidations which render it
untenantable. (Civil Code Section 1941.)
4)Provides that a dwelling shall be deemed untenantable if it
substantially lacks, among other things:
a) Effective waterproofing and weather protection;
b) Plumbing or gas facilities that conformed to applicable
law in effect at the time of installation; and,
c) Heating facilities that conformed with applicable law at
the time of installation, maintained in good working order.
(Civil Code 1941.1.)
FISCAL EFFECT : As currently in print this bill is keyed
fiscal.
COMMENTS : This bill provides that a dwelling that contains an
old floor furnace, after January 1, 2014, shall be deemed
untenantable and requires CARE to establish a furnace
replacement program for low-income residents. According to the
author, old gas floor and wall furnaces have a history of
causing house fires and carbon monoxide poisoning resulting in
death and injury. The author further explains that these
furnaces are notoriously inefficient in terms of energy
consumption. The author states that this bill provides a means
to replace these dangerous and inefficient heaters over time,
starting with the most dangerous floor heaters. In support, the
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California Rural Legal Assistance Foundation, states that this
bill is an appropriate mechanism for replacing old heaters that
can and do result in death or serious injury.
Fire Danger Presented By Old Furnaces . According to the
California Fire Chiefs Association, "Old gas floor and wall
furnaces are a proven fire hazard and (are) energy inefficient."
The California Professional Firefighters explain that these old
furnaces are hazardous because they often lack vents or flues.
The author provided 49 news articles of fires that involved
floor furnaces, since 2000. Among these fires was one that
involved Mr. Kinglsey Melton, a Field Representative for
Assemblymember Wolk who suffered near-fatal burns, on December
26, 2006. According to the San Diego Fire Department, the cause
of the fire was a faulty gas heater under the house. ("Kingsley
Melton, 29, is in the Intensive Care Unit at the UC San Diego
Burn Center Following a Near-Fatal Accident in San Diego on Dec.
26," Davis Enterprise , January 7, 2007.)
CARE Program . The California Alternative Rates for Energy
program provides a 20% discount on monthly electric and gas
bills for qualified low- or fixed-income households and housing
facilities. Qualifications are based on the number of people
living in the home and the total annual household income. The
PUC determines the appropriate level of funding and
qualifications. Based on PUC directives, utilities provide a
simple chart that tenants can use to determine eligibility,
which is currently based on 200% of the published federal
poverty level.
ARGUMENTS IN OPPOSITION : According to opponents, Sempra Energy,
this bill would require an inestimable increase in costs to
utility customers in Southern California, providing little or no
benefit to low-income customers. According to Sempra Energy,
state investor-owned utilities have established weatherization
programs in which, among other things, gas furnaces are
inspected and either repaired or replaced if found to be unsafe.
Sempra Energy states that age and type of furnace are not
automatic conditions for replacement since many older furnaces
are operating properly. Since this bill provides for the
replacement of gas furnaces based solely on age, Sempra Energy
argues that this bill adds to the waste of resources. Sempra
Energy states that the belief that floor furnaces are inherently
unsafe and that these floor furnaces lack vents is unsupported
by fact.
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Previous Legislation . SB 1816 (Alarcon) of 2006, among other
things, directed the PUC to create a gas furnace replacement
program for low income customers which would have replaced
50,000 old gas furnaces annually for 6 years. The program was
to be funded through the gas and electric public goods
surcharges and would have expired on January 1, 2014. This bill
was held in the Senate Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
California Rural Legal Assistance Foundation
California Fire Chiefs Association
California Professional Firefighters
Consumer Attorneys of California
Division of Ratepayer Advocates
Fire Districts Association of California
Western Center on Law & Poverty
Opposition
Sempra Energy
Analysis Prepared by : Manuel Valencia / JUD. / (916) 319-2334