BILL NUMBER: AB 2188	CHAPTERED
	BILL TEXT

	CHAPTER  521
	FILED WITH SECRETARY OF STATE  SEPTEMBER 21, 2014
	APPROVED BY GOVERNOR  SEPTEMBER 21, 2014
	PASSED THE SENATE  AUGUST 20, 2014
	PASSED THE ASSEMBLY  AUGUST 21, 2014
	AMENDED IN SENATE  AUGUST 14, 2014
	AMENDED IN SENATE  JULY 1, 2014
	AMENDED IN SENATE  JUNE 18, 2014
	AMENDED IN ASSEMBLY  MAY 8, 2014
	AMENDED IN ASSEMBLY  MAY 5, 2014
	AMENDED IN ASSEMBLY  APRIL 21, 2014

INTRODUCED BY   Assembly Member Muratsuchi

                        FEBRUARY 20, 2014

   An act to amend Section 714 of the Civil Code, and to amend
Section 65850.5 of the Government Code, relating to solar energy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2188, Muratsuchi. Solar energy: permits.
    (1) Existing 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. 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.
   This bill would specify that these provisions address a statewide
concern. The bill would additionally require a city, county, or city
and county to adopt, on or before September 30, 2015, in consultation
with specified public entities 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 in a timely manner, 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 in single
family residences and solar collectors for heating water in
commercial or swimming pool applications to be certified by an
accredited listing agency, as defined.
   Because the bill would impose new duties upon local governments
and local agencies, it would impose a state-mandated local program.
   (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.
   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 systems 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 in single
family residences and solar collectors for heating water in
commercial or swimming pool applications subject to the provisions
described above to be certified by an accredited listing agency, as
defined.
   (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.
   The bill would instead require the approving entity to notify the
applicant in writing within 45 days of receipt of the application if
the application is denied, as specified.
   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.
   This bill would provide that no reimbursement is required by this
act for a specified reason.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) In recent years, the state has both encouraged the development
of innovative distributed generation technology and prioritized the
widespread adoption of solar power as a renewable energy resource
through programs such as the California Solar Initiative.
   (b) Rooftop solar energy is a leading renewable energy technology
that will help this state reach its energy and environmental goals.
   (c) To reach the state's Million Solar Roofs goal, hundreds of
thousands of additional rooftop solar energy systems will need to be
deployed in the coming years.
   (d) Various studies, including one by the Lawrence Berkeley
National Laboratory, show that, despite the 1978 California Solar
Rights Act, declaring that the "implementation of consistent
statewide standards to achieve the timely and cost-effective
installation of solar energy systems is not a municipal affair ...
but is instead a matter of statewide concern," the permitting process
governing the installation of rooftop solar energy systems varies
widely across jurisdictions and, contrary to the intent of the law,
is both an "obstacle" to the state's clean energy and greenhouse
reduction goals and a "burdensome cost" to homeowners, businesses,
schools, and public agencies.
   (e) The United States Department of Energy, through its SunShot
Initiative, has distributed millions of dollars in grants to local
and state governments, including California jurisdictions, and
nonprofit organizations to reduce the costs of distributed solar
through streamlined and standardized permitting.
   (f) A modernized and standardized permitting process for
installations of small-scale solar distributed generation technology
on residential rooftops will increase the deployment of solar
distributed generation, help to expand access to lower income
households, provide solar customers greater installation ease,
improve the state's ability to reach its clean energy goals, and
generate much needed jobs in the state, all while maintaining safety
standards.
  SEC. 2.  Section 714 of the Civil Code is amended to read:
   714.  (a) 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, as defined in Section 4150 or
6552, that effectively prohibits or restricts the installation or use
of a solar energy system is void and unenforceable.
   (b) This section does not apply to provisions that impose
reasonable restrictions on solar energy systems. However, it is the
policy of the state to promote and encourage the use of solar energy
systems and to remove obstacles thereto. Accordingly, reasonable
restrictions on a solar energy system are those restrictions that do
not significantly increase the cost of the system or significantly
decrease its efficiency or specified performance, or that allow for
an alternative system of comparable cost, efficiency, and energy
conservation benefits.
   (c) (1) A solar energy system shall meet applicable health and
safety standards and requirements imposed by state and local
permitting authorities, consistent with Section 65850.5 of the
Government Code.
   (2) Solar energy systems used for heating water in single family
residences and solar collectors used for heating water in commercial
or swimming pool applications shall be certified by an accredited
listing agency as defined in the Plumbing and Mechanical Codes.
   (3) A solar energy system for producing electricity shall also
meet all applicable safety and performance standards established by
the California Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories such as
Underwriters Laboratories and, where applicable, rules of the Public
Utilities Commission regarding safety and reliability.
   (d) For the purposes of this section:
   (1) (A) For solar domestic water heating systems or solar swimming
pool heating systems that comply with state and federal law,
"significantly" means an amount exceeding 10 percent of the cost of
the system, but in no case more than one thousand dollars ($1,000),
or decreasing the efficiency of the solar energy system by an amount
exceeding 10 percent, as originally specified and proposed.
   (B) For photovoltaic systems that comply with state and federal
law, "significantly" means an amount not to exceed one thousand
dollars ($1,000) over the system cost as originally specified and
proposed, or a decrease in system efficiency of an amount exceeding
10 percent as originally specified and proposed.
   (2) "Solar energy system" has the same meaning as defined in
paragraphs (1) and (2) of subdivision (a) of Section 801.5.
   (e) (1) Whenever approval is required for the installation or use
of a solar energy system, the application for approval shall 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 shall not be willfully avoided or
delayed.
   (2) For an approving entity that is an association, as defined in
Section 4080 or 6528, and that is not a public entity, both of the
following shall apply:
   (A) The approval or denial of an application shall be in writing.
   (B) If an application is not denied in writing within 45 days from
the date of receipt of the application, the application shall be
deemed approved, unless that delay is the result of a reasonable
request for additional information.
   (f) Any entity, other than a public entity, that willfully
violates this section shall be liable to the applicant or other party
for actual damages occasioned thereby, and shall pay a civil penalty
to the applicant or other party in an amount not to exceed one
thousand dollars ($1,000).
   (g) In any action to enforce compliance with this section, the
prevailing party shall be awarded reasonable attorney's fees.
   (h) (1) A public entity that fails to comply with this section may
not receive funds from a state-sponsored grant or loan program for
solar energy. A public entity shall certify its compliance with the
requirements of this section when applying for funds from a
state-sponsored grant or loan program.
   (2) A local public entity may not exempt residents in its
jurisdiction from the requirements of this section.
  SEC. 3.  Section 65850.5 of the Government Code is amended to read:

   65850.5.  (a) The implementation of consistent statewide standards
to achieve the timely and cost-effective installation of solar
energy systems is not a municipal affair, as that term is used in
Section 5 of Article XI of the California Constitution, but is
instead a matter of statewide concern. It is the intent of the
Legislature that local agencies not adopt ordinances that create
unreasonable barriers to the installation of solar energy systems,
including, but not limited to, design review for aesthetic purposes,
and not unreasonably restrict the ability of homeowners and
agricultural and business concerns to install solar energy systems.
It is the policy of the state to promote and encourage the use of
solar energy systems and to limit obstacles to their use. It is the
intent of the Legislature that local agencies comply not only with
the language of this section, but also the legislative intent to
encourage the installation of solar energy systems by removing
obstacles to, and minimizing costs of, permitting for such systems.
   (b) A city or county shall administratively approve applications
to install solar energy systems through the issuance of a building
permit or similar nondiscretionary permit. Review of the application
to install a solar energy system shall be limited to the building
official's review of whether it meets all health and safety
requirements of local, state, and federal law. The requirements of
local law shall be limited to those standards and regulations
necessary to ensure that the solar energy system will not have a
specific, adverse impact upon the public health or safety. However,
if the building official of the city or county makes a finding, based
on substantial evidence, that the solar energy system could have a
specific, adverse impact upon the public health and safety, the city
or county may require the applicant to apply for a use permit.
   (c) A city, county, or city and county may not deny an application
for a use permit to install a solar energy system unless it makes
written findings based upon substantial evidence in the record that
the proposed installation would have a specific, adverse impact upon
the public health or safety, and there is no feasible method to
satisfactorily mitigate or avoid the specific, adverse impact. The
findings shall include the basis for the rejection of potential
feasible alternatives of preventing the adverse impact.
   (d) The decision of the building official pursuant to subdivisions
(b) and (c) may be appealed to the planning commission of the city,
county, or city and county.
   (e) Any conditions imposed on an application to install a solar
energy system shall be designed to mitigate the specific, adverse
impact upon the public health and safety at the lowest cost possible.

   (f) (1) A solar energy system shall meet applicable health and
safety standards and requirements imposed by state and local
permitting authorities.
   (2) Solar energy systems for heating water in single family
residences and solar collectors used for heating water in commercial
or swimming pool applications shall be certified by an accredited
listing agency as defined in the California Plumbing and Mechanical
Codes.
   (3) A solar energy system for producing electricity shall meet all
applicable safety and performance standards established by the
California Electrical Code, the Institute of Electrical and
Electronics Engineers, and accredited testing laboratories such as
Underwriters Laboratories and, where applicable, rules of the Public
Utilities Commission regarding safety and reliability.
   (g) (1) On or before September 30, 2015, every city, county, or
city and county, in consultation with the local fire department or
district and the utility director, if the city, county, or city and
county operates a utility, shall adopt an ordinance, consistent with
the goals and intent of subdivision (a), that creates an expedited,
streamlined permitting process for small residential rooftop solar
energy systems. In developing an expedited permitting process, the
city, county, or city and county shall adopt a checklist of all
requirements with which small rooftop solar energy systems shall
comply to be eligible for expedited review. An application that
satisfies the information requirements in the checklist, as
determined by the city, county, and city and county, shall be deemed
complete. Upon confirmation by the city, county, or city and county
of the application and supporting documents being complete and
meeting the requirements of the checklist, and consistent with the
ordinance, a city, county, or city and county shall, consistent with
subdivision (b), approve the application and issue all required
permits or authorizations. Upon receipt of an incomplete application,
a city, county, or city and county shall issue a written correction
notice detailing all deficiencies in the application and any
additional information required to be eligible for expedited permit
issuance.
   (2) The checklist and required permitting documentation shall be
published on a publically accessible Internet Web site, if the city,
county, or city and county has an Internet Web site, and the city,
county, or city and county shall allow for electronic submittal of a
permit application and associated documentation, and shall authorize
the electronic signature on all forms, applications, and other
documentation in lieu of a wet signature by an applicant. In
developing the ordinance, the city, county, or city and county shall
substantially conform its expedited, streamlined permitting process
with the recommendations for expedited permitting, including the
checklists and standard plans contained in the most current version
of the California Solar Permitting Guidebook and adopted by the
Governor's Office of Planning and Research. A city, county, or city
and county may adopt an ordinance that modifies the checklists and
standards found in the guidebook due to unique climactic, geological,
seismological, or topographical conditions. If a city, county, or
city and county determines that it is unable to authorize the
acceptance of an electronic signature on all forms, applications, and
other documents in lieu of a wet signature by an applicant, the
city, county, or city and county shall state, in the ordinance
required under this subdivision, the reasons for its inability to
accept electronic signatures and acceptance of an electronic
signature shall not be required.
   (h) For a small residential rooftop solar energy system eligible
for expedited review, only one inspection shall be required, which
shall be done in a timely manner and may include a consolidated
inspection, except that a separate fire safety inspection may be
performed in a city, county, or city and county that does not have an
agreement with a local fire authority to conduct a fire safety
inspection on behalf of the fire authority. If a small residential
rooftop solar energy system fails inspection, a subsequent inspection
is authorized, however the subsequent inspection need not conform to
the requirements of this subdivision.
   (i) A city, county, or city and county shall not condition
approval for any solar energy system permit on the approval of a
solar energy system by an association, as that term is defined in
Section 4080 of the Civil Code.
   (j) The following definitions apply to this section:
   (1) "A feasible method to satisfactorily mitigate or avoid the
specific, adverse impact" includes, but is not limited to, any
cost-effective method, condition, or mitigation imposed by a city,
county, or city and county on another similarly situated application
in a prior successful application for a permit. A city, county, or
city and county shall use its best efforts to ensure that the
selected method, condition, or mitigation meets the conditions of
subparagraphs (A) and (B) of paragraph (1) of subdivision (d) of
Section 714 of the Civil Code.
   (2) "Electronic submittal" means the utilization of one or more of
the following:
   (A) Email.
   (B) The Internet.
   (C) Facsimile.
   (3) "Small residential rooftop solar energy system" means all of
the following:
   (A) A solar energy system that is no larger than 10 kilowatts
alternating current nameplate rating or 30 kilowatts thermal.
   (B) A solar energy system that conforms to all applicable state
fire, structural, electrical, and other building codes as adopted or
amended by the city, county, or city and county and paragraph (3) of
subdivision (c) of Section 714 of the Civil Code.
   (C) A solar energy system that is installed on a single or duplex
family dwelling.
   (D) A solar panel or module array that does not exceed the maximum
legal building height as defined by the authority having
jurisdiction.
   (4) "Solar energy system" has the same meaning set forth in
paragraphs (1) and (2) of subdivision (a) of Section 801.5 of the
Civil Code.
   (5) "Specific, adverse impact" means a significant, quantifiable,
direct, and unavoidable impact, based on objective, identified, and
written public health or safety standards, policies, or conditions as
they existed on the date the application was deemed complete.
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.