BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1222|
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UNFINISHED BUSINESS
Bill No: SB 1222
Author: Leno (D)
Amended: 8/21/12
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 6-2, 4/25/12
AYES: Wolk, Dutton, DeSaulnier, Hancock, Hernandez, Kehoe
NOES: Fuller, La Malfa
NO VOTE RECORDED: Liu
SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/24/12
AYES: Kehoe, Alquist, Lieu, Price, Steinberg
NOES: Walters, Dutton
SENATE FLOOR : 25-13, 5/30/12
AYES: Alquist, Blakeslee, Calderon, Corbett, De León,
DeSaulnier, Dutton, Evans, Hancock, Harman, Hernandez,
Kehoe, Leno, Lieu, Liu, Lowenthal, Negrete McLeod,
Padilla, Pavley, Price, Simitian, Steinberg, Vargas,
Wolk, Yee
NOES: Anderson, Berryhill, Cannella, Correa, Emmerson,
Fuller, Gaines, Huff, La Malfa, Rubio, Walters, Wright,
Wyland
NO VOTE RECORDED: Runner, Strickland
ASSEMBLY FLOOR : 58-13, 8/27/12 - See last page for vote
SUBJECT : Solar energy: permits
SOURCE : Author
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DIGEST : This bill limits the fees that cities and
counties charge for permits related to the installation of
rooftop solar energy systems.
Assembly Amendments (1) establish specific fees for rooftop
solar energy systems, and (2) define residential permit
fee."
ANALYSIS : The Solar Rights Act makes it easier for
people to install solar energy systems (AB 3250, Levine,
1978). To further promote solar installations, AB 2437
(Wolk, Chapter 789, Statutes of 2004), declared, among
other things, that the implementation of statewide
standards for solar energy systems is not a municipal
affair but a matter of statewide concern.
When a local agency charges fees for building permits,
those fees may not exceed the estimated reasonable cost of
providing the service for which the fee is charged. Fees
charged in excess of the estimated reasonable cost of
providing the services are taxes and must be approved by a
2/3 vote. Building permit fees generally pay for the cost
of the project plan examination and on-site inspection.
Currently, each local authority having jurisdiction over
solar installations determines its fee structure for
rooftop permits.
This bill provides that a city, county, city and county, or
charter city shall not charge a residential permit fee that
exceeds the estimated reasonable cost of providing the
service for which the fee is charged. Except as provided
in paragraph (2), that fee shall not exceed $500 plus $15
per kilowatt for each kilowatt above 15kW.
This bill provides that notwithstanding the above
provisions, a city, county, city and county, or charter
city may charge a residential permit fee for a rooftop
solar energy system that exceeds the fees specified above
if, as part of a written finding and an adopted resolution
or ordinance, it provides substantial evidence of the
reasonable cost to issue the permit.
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This bill provides that for a commercial rooftop solar
energy system that produces direct current electricity, a
city, county, city and county, or charter city shall not
charge a commercial permit fee that exceeds the estimated
reasonable cost of providing the service for which the fee
is charged. Except as provided in paragraph (2), the fee
shall not exceed $1,000 for systems up to 50kW plus $7 per
kilowatt for each kilowatt between 51kW and 250kW, plus $5
per kilowatt for each kilowatt above 250kW.
This bill provides that a city, county, city and county, or
charter city may charge a commercial permit fee for a
rooftop solar energy system that exceeds the applicable fee
specified above if, as part of a written finding and an
adopted resolution or ordinance, it provides substantial
evidence of the reasonable cost to issue the permit.
This bill provides that a written finding adopted pursuant
to subdivision (a) or (b) shall include all of the
following:
1. A determination that the municipality has adopted
appropriate ordinances, permit fees, and processes to
streamline the submittal and approval of permits for
solar energy systems pursuant to the practices and
policies in state guidelines and model ordinances.
2. A calculation related to the administrative cost of
issuing a solar rooftop permit.
3. A description of how the higher fee will result in a
quick and streamlined approval process.
This bill provides that for purposes of this bill,
"administrative costs" means the costs incurred in
connection with the review, approval, and issuance of the
permit, and the hourly site inspection and follow-up costs,
and may also include an amortization of the costs incurred
in connection with producing a written finding and adopting
an ordinance or resolution, as specified.
This bill provides that for purposes of this section,
"residential permit fee" means the sum of all charges
levied by a city, county, city and county, or charter city
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in connection with the application for a rooftop solar
energy system.
This bill also includes a codified provision stating
legislative intent that a local agency that complies with
the bill's requirements would receive priority access to
state funds for purposes of distributed energy generation
planning, permitting, training, or implementation. This
bill's provisions sunset on January 1, 2018.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee, "Unknown
reimbursable mandate costs (General Fund). In order for a
city or county to charge a permit fee that exceeds the
specified limits, it must provide substantial evidence of
the administrative cost to issue a permit in a written
finding and an adopted resolution or ordinance, as
specified. This additional administrative burden places a
higher level of service on local entities than the current
standard specifying that a fee cannot exceed the estimated
reasonable cost of providing the service for which the fee
is charged."
SUPPORT : (Verified 8/28/12)
Acro Energy
AEE Solar, Inc.
AFSCME, AFL-CIO
Distributed Energy Consumer Advocates
Environment California
Mainstream Energy Corp.
Natural Resources Defense Council
PetersenDean Roofing
REC Solar, Inc.
School Energy Coalition
Sierra Club
Solaria
SolarCity
Solar Energy Industries Association
Sun Edison
Sungevity
SunRun
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Suntech America
Union of Concerned Scientists
Verengo Solar
OPPOSITION : (Verified 8/28/12)
Alameda County Board of Supervisors
American Planning Association, California Chapter
California Building Officials
California Municipal Utilities Association
California State Association of Counties
Cities of Bellflower, Camarillo, Diamond Bar, Fountain
Valley, Livermore, Menlo Park, Murrieta, Ontario,
Palmdale, Palo Alto, Rancho Cordova, Rancho Cucamonga,
Sebastopol, Thousand Oaks, Torrance, and Visalia
City of Alturas Building & Safety Department
Lassen County
League of California Cities
Regional Council of Rural Counties
Riverside County Board of Supervisors
Sacramento County Board of Supervisors
San Bernardino Board of Supervisors
Sonoma County Board of Supervisors
Southwest California Legislative Council
Urban Counties Caucus
ARGUMENTS IN SUPPORT : According to the author's office,
more than one million additional net energy metered
residential rooftops could be deployed in the state in the
coming years, adding over $28 billion to the state economy
and support nearly 22,000 jobs. With residential
permitting reform, the economic impact and job numbers will
be boosted by $5 billion and almost 4,000 jobs. Without
it, the economic benefit and jobs are in jeopardy as it is
unlikely that local jurisdictions have the capacity to
process the forecasted demand.
ARGUMENTS IN OPPOSITION : Opponents state that "While we
appreciate the author's desire to encourage lower building
permit fees for residential solar systems, we are troubled
by the cap on permit fees, the requirement that a local
government justify a fee to a state agency and the new
mandate for local governments to report to the CEC. Under
the existing Mitigation Fee Act, when a local government
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imposes a fee, it may not exceed the estimated reasonable
cost of providing the service for which the fee is charged.
If a local government fee exceeds the reasonable cost,
then the local government is required to submit the fee to
the voters. Cities and counties each set their own fees
and many utilize the permit fees that are based on the
State Building Standards Code because they find those fees
reflect the reasonable costs of providing the related
services. Variations in the fees are likely due to
individual variations between cities and counties
statewide. In addition, many local governments lower their
building permit fee for residential solar systems by
subsidizing their permit costs with funds from their
General Fund. This is an individual decision by the City
or County based on local budget priorities. We do not
believe it is the role of the state to undermine local
decisions by setting the level of the fee in statute
without regard to individual city or county costs."
ASSEMBLY FLOOR : 58-13, 8/27/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Brownley,
Buchanan, Butler, Campos, Cedillo, Chesbro, Conway,
Davis, Eng, Feuer, Fletcher, Fong, Beth Gaines, Galgiani,
Garrick, Gatto, Gorell, Hagman, Hall, Hayashi, Roger
Hernández, Hill, Hueso, Huffman, Jeffries, Lara, Bonnie
Lowenthal, Ma, Mendoza, Miller, Mitchell, Monning,
Nestande, Norby, Olsen, Perea, V. Manuel Pérez,
Portantino, Silva, Skinner, Smyth, Solorio, Swanson,
Torres, Wagner, Wieckowski, Williams, John A. Pérez
NOES: Carter, Donnelly, Grove, Halderman, Harkey, Huber,
Jones, Knight, Logue, Mansoor, Morrell, Nielsen, Valadao
NO VOTE RECORDED: Bradford, Charles Calderon, Cook,
Dickinson, Fuentes, Furutani, Gordon, Pan, Yamada
AGB:m 8/28/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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