Amended in Assembly April 21, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 2188


Introduced by Assembly Member Muratsuchi

February 20, 2014


An act tobegin delete add Section 17959.2 to the Health and Safety Codeend deletebegin insert amend Section 714 of the Civil Code, and to amend Section 65850.5 of the Government Codeend insert, relating to solar energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 2188, as amended, Muratsuchi. Solar energy: permits.

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Existing

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begin insert (1)end insertbegin insertend insertbegin insertExistingend insert law provides that it is the policy of the state to promote and encourage the use of solar energy systems, as defined, and to limit obstacles to their use. Existing law states that the implementation of consistent statewide standards to achieve timely and cost-effective installation of solar energy systems is not a municipal affair, but is instead a matter of statewide concern. Existing law requires a city or county to administratively approve applications to install solar energy systems through the issuance of a building permit or similar nondiscretionary permit.begin insert Existing law requires a solar energy system for heating water to be certified by the Solar Rating Certification Corporation or another nationally recognized certification agency.end insert

This bill wouldbegin insert specify that these provisions apply to a charter city. The bill would additionallyend insert require abegin delete city orend deletebegin insert city,end insert countybegin insert, or city and countyend insert tobegin delete process and approve any permit application for a residential rooftop solar energy system of up to 10kW on the same day it has been submittedend deletebegin insert adopt, on or before September 30, 2015, an ordinance that creates an expedited, streamlined permitting process for small residential rooftop solar energy systems, as specified. The bill would additionally require a city, county, or city and county to inspect a small residential rooftop solar energy system eligible for expedited review within 2 business days of any request, as specified, and to perform only one inspection, as specified. The bill would prohibit a city, county, or city and county from conditioning the approval of any solar energy system permit on approval of that system by an association that manages a common interest development. The bill would require a solar energy system for heating water to be certified by an accredited listing agency, as definedend insert.

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(2) Existing law prohibits any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property, and any provision of a governing document from effectively prohibiting or restricting the installation or use of a solar energy system. Existing law exempts from that prohibition provisions that impose reasonable restrictions on a solar energy system that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance. Existing law defines the term “significantly,” for these purposes, with regard to solar domestic water heating systems or solar swimming pool heating systems that comply with state and federal law, to mean an amount exceeding 20% of the cost of the system or decreasing the efficiency of the solar energy system by an amount exceeding 20%, and with regard to photovoltaic systems that comply with state and federal law, an amount not to exceed $2,000 over the system cost or a decrease in system efficiency of an amount exceeding 20%, as specified. Existing law requires a solar energy system for heating water subject to the provisions described above to be certified by the Solar Rating Certification Corporation or another nationally recognized certification agency.

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This bill would instead define the term “significantly,” for these purposes, with regard to solar domestic water heating systems or solar swimming pool heating systems that comply with state and federal law, to mean an amount exceeding 10% of the cost of the system, not to exceed $1,000, or decreasing the efficiency of the solar energy system by an amount exceeding 10%, and with regard to photovoltaic system that comply with state and federal law, an amount not to exceed $1,000 over the system cost or a decrease in system efficiency of an amount exceeding 10%, as specified. The bill would require a solar energy system for heating water subject to the provisions described above to be certified by an accredited listing agency, as defined.

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(3) Existing law requires an application for approval for the installation or use of a solar energy system to be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property, and prohibits the approver from willfully avoiding or delaying approval. Existing law requires the approving entity to notify the applicant in writing within 60 days of receipt of the application if the application is denied, as specified.

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The bill would instead require the approving entity to notify the applicant in writing within 30 days of receipt of the application if the application is denied, as specified.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

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begin insertThe Legislature finds and declares all of the
2following: end insert

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3(a) In recent years, the state has both encouraged the
4development of innovative distributed generation technology and
5prioritized the widespread adoption of solar power as a renewable
6energy resource through programs such as the California Solar
7Initiative.

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P4    1(b) Rooftop solar energy is a leading renewable energy
2 technology that will help this state reach its energy and
3environmental goals.

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4(c) To reach the state’s Million Solar Roofs goal, hundreds of
5thousands of additional rooftop solar energy systems will need to
6be deployed in the coming years.

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7(d) Various studies, including one by the Lawrence Berkeley
8National Laboratory, show that, despite the 1978 California Solar
9Rights Act, declaring that the “implementation of consistent
10statewide standards to achieve the timely and cost-effective
11installation of solar energy systems is not a municipal affair ... but
12is instead a matter of statewide concern,” the permitting process
13governing the installation of rooftop solar energy systems varies
14widely across jurisdictions and, contrary to the intent of the law,
15is both an “obstacle” to the state’s clean energy and greenhouse
16reduction goals and a “burdensome cost” to homeowners,
17businesses, schools, and public agencies.

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18(e) The United States Department of Energy, through its SunShot
19Initiative, has distributed millions of dollars in grants to local and
20state governments, including California jurisdictions, and nonprofit
21organizations to reduce the costs of distributed solar through
22streamlined and standardized permitting.

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23(f) A modernized and standardized permitting process for
24installations of small-scale solar distributed generation technology
25on residential rooftops will increase the deployment of solar
26distributed generation, help to expand access to lower income
27households, provide solar customers greater installation ease,
28improve the state’s ability to reach its clean energy goals, and
29generate much needed jobs in the state, all while maintaining
30safety standards.

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31begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 714 of the end insertbegin insertCivil Codeend insertbegin insert is amended to read:end insert

32

714.  

(a) Any covenant, restriction, or condition contained in
33any deed, contract, security instrument, or other instrument
34affecting the transfer or sale of, or any interest in, real property,
35and any provision of a governing document, as defined in Section
364150 or 6552, that effectively prohibits or restricts the installation
37or use of a solar energy system is void and unenforceable.

38(b) This section does not apply to provisions that impose
39reasonable restrictions on solar energy systems. However, it is the
40policy of the state to promote and encourage the use of solar energy
P5    1systems and to remove obstacles thereto. Accordingly, reasonable
2restrictions on a solar energy system are those restrictions that do
3not significantly increase the cost of the system or significantly
4decrease its efficiency or specified performance, or that allow for
5an alternative system of comparable cost, efficiency, and energy
6conservation benefits.

7(c) (1) A solar energy system shall meet applicable health and
8safety standards and requirements imposed by state and local
9permitting authoritiesbegin insert, consistent with Section 65850.5 of the
10Government Codeend insert
.

11(2) begin deleteA end deletebegin insertEvery end insertsolar energy system for heating water shall be
12certified bybegin delete the Solar Rating Certification Corporation (SRCC) or
13other nationally recognized certification agencies. SRCC is a
14nonprofit third party supported by the United States Department
15of Energy. The certification shall be for the entire solar energy
16system and installationend delete
begin insert an accredited listing agency as defined in
17Section 65850.5 of the Government Codeend insert
.

18(3) A solar energy system for producing electricity shall also
19meet all applicable safety and performance standards established
20by the National Electrical Code, the Institute of Electrical and
21Electronics Engineers, and accredited testing laboratories such as
22Underwriters Laboratories and, where applicable, rules of the
23Public Utilities Commission regarding safety and reliability.

24(d) For the purposes of this section:

25(1) (A) For solar domestic water heating systems or solar
26swimming pool heating systems that comply with state and federal
27law, “significantly” means an amount exceedingbegin delete 20end deletebegin insert 10end insert percent of
28the cost of the systembegin insert, but in no case more than one thousand
29dollars ($1,000),end insert
or decreasing the efficiency of the solar energy
30system by an amount exceedingbegin delete 20end deletebegin insert 10end insert percent, as originally
31specified and proposed.

32(B) For photovoltaic systems that comply with state and federal
33law, “significantly” means an amount not to exceedbegin delete twoend deletebegin insert oneend insert
34 thousand dollarsbegin delete ($2,000)end deletebegin insert ($1,000)end insert over the system cost as
35originally specified and proposed, or a decrease in system
36efficiency of an amount exceedingbegin delete 20end deletebegin insert 10end insert percent as originally
37specified and proposed.

38(2) “Solar energy system” has the same meaning as defined in
39paragraphs (1) and (2) of subdivision (a) of Section 801.5.

P6    1(e) (1) Whenever approval is required for the installation or
2use of a solar energy system, the application for approval shall be
3processed and approved by the appropriate approving entity in the
4same manner as an application for approval of an architectural
5modification to the property, and shall not be willfully avoided or
6delayed.

7(2) For an approving entity that is an association, as defined in
8Section 4080 or 6528, and that is not a public entity, both of the
9following shall apply:

10(A) The approval or denial of an application shall be in writing.

11(B) If an application is not denied in writing withinbegin delete 60end deletebegin insert 30end insert days
12from the date of receipt of the application, the application shall be
13deemed approved, unless that delay is the result of a reasonable
14request for additional information.

15(f) Any entity, other than a public entity, that willfully violates
16this section shall be liable to the applicant or other party for actual
17damages occasioned thereby, and shall pay a civil penalty to the
18applicant or other party in an amount not to exceed one thousand
19dollars ($1,000).

20(g) In any action to enforce compliance with this section, the
21prevailing party shall be awarded reasonable attorney’s fees.

22(h) (1) A public entity that fails to comply with this section
23may not receive funds from a state-sponsored grant or loan program
24for solar energy. A public entity shall certify its compliance with
25the requirements of this section when applying for funds from a
26state-sponsored grant or loan program.

27(2) A local public entity may not exempt residents in its
28jurisdiction from the requirements of this section.

29begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 65850.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
30to read:end insert

31

65850.5.  

(a) The implementation of consistent statewide
32standards to achieve the timely and cost-effective installation of
33solar energy systems is not a municipal affair, as that term is used
34in Section 5 of Article XI of the California Constitution, but is
35instead a matter of statewide concernbegin insert, therefore, this section shall
36apply to every city in this state, including charter citiesend insert
. It is the
37intent of the Legislature that local agencies not adopt ordinances
38that create unreasonable barriers to the installation of solar energy
39systems, including, but not limited to, design review for aesthetic
40purposes, and not unreasonably restrict the ability of homeowners
P7    1and agricultural and business concerns to install solar energy
2systems. It is the policy of the state to promote and encourage the
3use of solar energy systems and to limit obstacles to their use. It
4is the intent of the Legislature that local agencies comply not only
5with the language of this section, but also the legislative intent to
6encourage the installation of solar energy systems by removing
7obstacles to, and minimizing costs of, permitting for such systems.

8(b) A city or county shall administratively approve applications
9to install solar energy systems through the issuance of a building
10permit or similar nondiscretionary permit. Review of the
11application to install a solar energy system shall be limited to the
12building official’s review of whether it meets all health and safety
13requirements of local, state, and federal law. The requirements of
14local law shall be limited to those standards and regulations
15necessary to ensure that the solar energy system will not have a
16specific, adverse impact upon the public health or safety. However,
17if the building official of the city or countybegin delete has a good faith beliefend delete
18begin insert makes a finding, based on substantial evidence,end insert that the solar
19energy system could have a specific, adverse impact upon the
20public health and safety, the city or county may require the
21applicant to apply for a use permit.

22(c) Abegin delete city orend deletebegin insert city,end insert countybegin insert, or city and countyend insert may not deny an
23application for a use permit to install a solar energy system unless
24it makes written findings based upon substantial evidence in the
25record that the proposed installation would have a specific, adverse
26impact upon the public health or safety, and there is no feasible
27method to satisfactorily mitigate or avoid the specific, adverse
28impact. The findings shall include the basis for the rejection of
29potential feasible alternatives of preventing the adverse impact.

30(d) The decision of the building official pursuant to subdivisions
31(b) and (c) may be appealed to the planning commission of the
32begin delete city orend deletebegin insert city,end insert countybegin insert, or city and countyend insert.

33(e) Any conditions imposed on an application to install a solar
34energy system shall be designed to mitigate the specific, adverse
35impact upon the public health and safety at the lowest cost possible.

36(f) (1) A solar energy system shall meet applicable health and
37safety standards and requirements imposed by state and local
38permitting authorities.

39(2) begin deleteA end deletebegin insertEvery end insertsolar energy system for heating water shall be
40certified bybegin delete the Solar Rating Certification Corporation (SRCC) or
P8    1other nationally recognized certification agency. SRCC is a
2nonprofit third party supported by the United States Department
3of Energy. The certification shall be for the entire solar energy
4system and installationend delete
begin insert an accredited listing agencyend insert.

5(3) A solar energy system for producing electricity shall meet
6all applicable safety and performance standards established by the
7National Electrical Code, the Institute of Electrical and Electronics
8Engineers, and accredited testing laboratories such as Underwriters
9Laboratories and, where applicable, rules of the Public Utilities
10Commission regarding safety and reliability.

begin insert

11(g) On or before September 30, 2015, every city, county, or city
12and county shall adopt an ordinance, consistent with the goals
13and intent of subdivision (a), that creates an expedited, streamlined
14permitting process for small residential rooftop solar energy
15systems. In developing an expedited permitting process, the city,
16county, or city and county shall adopt a checklist of all
17requirements with which small rooftop solar energy systems shall
18comply to be eligible for expedited review. If submitted during
19business hours, an application that meet the requirements in the
20checklist shall be reviewed within 24 business hours of application
21submittal. If submitted after business hours, an application that
22meet the requirements in the checklist shall be reviewed within 24
23business hours of the beginning of the next business day after
24submittal of the application. The checklist and required permitting
25documentation shall be published on a publically accessible
26Internet Web site and the city, county, or city and county shall
27allow for electronic submittal of a permit application and
28associated documentation, and shall authorize the electronic
29signature on all forms, applications, and other documentation in
30lieu of a wet signature by an applicant. In developing the
31ordinance, the city, county, or city and county shall strive to
32conform with standardized checklists based on existing statewide
33solar permitting guidelines or best practices including those
34developed through the United States Department of Energy’s
35SunShot Initiative.

end insert
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36(h) For a small residential rooftop solar energy system eligible
37for expedited review, only one inspection shall be required and
38that one inspection shall be scheduled within two business days
39of a request, if the request is received during business hours. If
40the request is received after business hours, the inspection shall
P9    1be scheduled within two business days of the beginning of the next
2business day after receipt of the request. If a city, county, or city
3and county is unable to provide inspection within two business
4days of a request, the city, county, or city and county may authorize
5a third-party inspection, using a qualified or certified inspector.
6If the small residential rooftop solar energy system fails inspection,
7a subsequent inspection shall also conform to the requirements of
8this subdivision.

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9(i) A city, county, or city and county shall not condition approval
10for any solar energy system permit on the approval of a solar
11energy system by an association, as that term is defined in Section
124080 of the Civil Code.

end insert
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13(g)

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14begin insert(j)end insert The following definitions apply to this section:

15(1) “A feasible method to satisfactorily mitigate or avoid the
16 specific, adverse impact” includes, but is not limited to, any
17cost-effective method, condition, or mitigation imposed by abegin delete city
18orend delete
begin insert city,end insert countybegin insert, or city and countyend insert on another similarly situated
19application in a prior successful application for a permit. Abegin delete city
20orend delete
begin insert city,end insert countybegin insert, or city and countyend insert shall use its best efforts to ensure
21that the selected method, condition, or mitigation meets the
22conditions of subparagraphs (A) and (B) of paragraph (1) of
23subdivision (d) of Section 714 of the Civil Code.

begin insert

24(2) “Accredited listing agency” means a standards or testing
25organization that evaluates solar energy systems according to
26specified, independent criteria and allows its mark to be used on
27qualifying systems as a stamp of approval, such as the American
28National Standards Institute or the American Association for
29Laboratory Accreditation.

end insert
begin insert

30(3) “Electronic submittal” means the utilization any of the
31following:

end insert
begin insert

32(A) Email.

end insert
begin insert

33(B) The Internet.

end insert
begin insert

34(C) Facsimile.

end insert
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35(4) “Small residential solar energy system” means all of the
36following:

end insert
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37(A) A solar energy system that is no larger than 10 kilowatts
38alternating current nameplate rating or 30 kilowatts thermal.

end insert
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39(B) A solar energy system that conforms to all applicable state
40fire, structural, electrical, and other building codes as adopted or
P10   1amended by the city, county, or city and county and paragraph (3)
2of subdivision (c) of Section 714 of the Civil Code. If a conflict
3arises between the requirements in this section and any
4requirements in state fire, electrical, structural, or building codes,
5the requirements in this section shall apply.

end insert
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6(C) A solar energy system that is installed on a single or duplex
7family dwelling.

end insert
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8(D) A solar panel or module array that does not exceed the
9maximum legal building height.

end insert
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10(2)

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11begin insert(5)end insert “Solar energy system” has the same meaning set forth in
12paragraphs (1) and (2) of subdivision (a) of Section 801.5 of the
13Civil Code.

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14(3)

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15begin insert(6)end insertbegin deleteA “specific, end deletebegin insert“Specific, end insertadverse impact” means a significant,
16quantifiable, direct, and unavoidable impact, based on objective,
17identified, and written public health or safety standards, policies,
18or conditions as they existed on the date the application was
19deemed complete.

20begin insert

begin insertSEC. 4.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
21Section 6 of Article XIII B of the California Constitution because
22a local agency or school district has the authority to levy service
23charges, fees, or assessments sufficient to pay for the program or
24level of service mandated by this act, within the meaning of Section
2517556 of the Government Code.

end insert
begin delete26

SECTION 1.  

Section 17959.2 is added to the Health and Safety
27Code
, to read:

28

17959.2.  

Notwithstanding Section 17959.1, a city or county
29shall process and approve any permit application for a residential
30rooftop solar energy system of up to 10kW on the same day it has
31been submitted.

end delete
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32

SEC. 2.  

If the Commission on State Mandates determines that
33this act contains costs mandated by the state, reimbursement to
34local agencies and school districts for those costs shall be made
35pursuant to Part 7 (commencing with Section 17500) of Division
364 of Title 2 of the Government Code.

end delete


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