BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 2188
          Author:   Muratsuchi (D)
          Amended:  8/14/14 in Senate
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  6-1, 6/25/14
          AYES:  Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu
          NOES:  Walters

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  58-8, 5/27/14 - See last page for vote


           SUBJECT  :    Solar energy:  permits

           SOURCE  :     Author


           DIGEST  :    This bill requires, on or before September 30, 2015,  
          every city and county to adopt an ordinance, in consultation  
          with fire and utility officials, as specified, to streamline and  
          expedite the permitting process for small, residential, rooftop,  
          solar energy systems.

           Senate Floor Amendments  of 8/14/14 clarify a number of technical  
          references and place additional minor constrains on the  
          discretion of local agencies when adopting a solar rooftop  
          ordinance.

           ANALYSIS  :    The Solar Rights Act of 1978 (Act) established a  
          homeowner's right to install a solar energy system by limiting  
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          the ability of a homeowners association (HOA) or other  
          non-public entity to prohibit such an installation.  The Act  
          also limited the authority of a local agency to place  
          unreasonable restrictions on the use of solar energy systems.  

          The Act was modified in 2008, to further restrict limits on the  
          installation of solar electricity generation systems and  
          require, in writing, a reason from a HOA if denying permission  
          to install a solar energy system on a home (AB 2180, Wolk,  
          Chapter 539, Statutes of 2008).  The Legislature also declared  
          solar energy system installation to be a matter of statewide  
          concern, and made a local government's grant of permission to  
          install a solar energy system ministerial rather than  
          discretionary, with some exceptions (AB 2473, Wolk, Chapter 789,  
          Statutes of 2004).  

          The Governor's Million Solar Homes Program established the goal  
          of installing 3,000 megawatts of solar generation capacity,  
          establishing a self-sufficient solar industry, and placing  
          photovoltaic systems on 50% of new homes.  The Act includes a  
          requirement that sellers of production homes, under specified  
          conditions, offer to home buyers the option of installing a  
          solar energy system
          (SB 1, Murray, Chapter 132, Statutes of 2006).  

          This bill requires, on or before September 30, 2015, every city  
          and county to adopt an ordinance, in consultation with fire and  
          utility officials, as specified, to streamline and expedite the  
          permitting process for small, residential, rooftop, solar energy  
          systems. 

          This bill defines "small rooftop solar energy systems" as  
          systems that meet all of the following: 

           A solar energy system that is no larger than 10 kilowatts  
            alternating current nameplate rating or 30 kilowatts thermal.

           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  
            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  

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            of the Public Utilities Commission regarding safety and  
            reliability.

           A solar energy system that is installed on a single or duplex  
            family dwelling.

           A solar panel or module array that does not exceed the maximum  
            legal building height.

          As part of that ordinance, each city and county must develop a  
          checklist of all requirements that allow rooftop solar energy  
          systems to be eligible for expedited review.

          This bill establishes that all complete applications that meet  
          the requirement for expedited review, and meet the requirements  
          of the checklist, must be approved and all permits and  
          authorizations must be issued. 

          For incomplete applications, a city or county and a city and  
          county must issue a written correction notice detailing all  
          deficiencies and information requirements for expedited review. 

          This bill requires each city and county and a city and county to  
          publish its application checklist and document requirements on a  
          publicly accessible Internet Web site if the local agency  
          maintains an Internet Web site, and allow for the electronic  
          signature on all forms, applications and other documents.  In  
          developing this 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 required ordinance, the reasons for its inability to  
          accept electronic signatures and acceptance of an electronic  
          signature shall not be required.

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          This bill requires all cities and counties to accept permit  
          applications and all associated documents via email, the  
          internet, or facsimile. 

          For small residential rooftop solar energy systems that qualify  
          for expedited review under the local ordinance, 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 bill.

          This bill prohibits a city or county from conditioning approval  
          of a small rooftop solar energy system on the approval of that  
          system by a nonprofit entity created for the purpose of managing  
          a common interest development (CID).

          This bill changes the standard for a local agency to require a  
          use permit for the installation of a solar energy system, from a  
          good faith belief, to a finding based on substantial evidence,  
          that a solar energy system could have a specific, adverse impact  
          on public health and safety. 

          This bill requires solar energy systems for heating water in  
          single family residences and solar collectors used for heating  
          water in commercial or swimming pool applications to be  
          certified by an accredited listing agency as defined in the  
          California Plumbing and Mechanical Codes.  

          Existing law limits the ability of a covenant, deed restriction  
          or similar instrument to constrain the installation of a solar  
          energy system on a home, to reasonable restrictions that do not  
          significantly impact costs or limit system efficiency.

          This bill amends the definition of significant impact from no  
          more than 20% of system costs to no more than 10%, or $1,000,  
          whichever is less.  Redefines significant change in efficiency,  
          reducing the current allowance for loss of efficiency from 20%,  
          down to 10%. 

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          This bill reduces, from 60 days to 45 days, the amount of time  
          that an approving agency that is an association, such as a HOA,  
          has to deny, in writing, an application for a solar energy  
          system.  An application that is not denied in that timeframe is  
          deemed approved. 

          This bill contains legislative findings and declarations on the  
          need for this bill, including the value of a modernized and  
          standardized permitting process for installations of small-scale  
          solar distributed generation technology to increase the  
          deployment of solar distributed generation, 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.

           Comments
           
          California's solar industry has grown dramatically.  That growth  
          has been supported by the efforts of many local agencies to  
          streamline the permitting process for small, rooftop solar  
          electricity systems.  But the industry continues to face steep  
          obstacles that must be addressed if solar electricity generation  
          is going to help the state address its growing energy needs.   
          Research indicates that while the hard costs of solar, namely  
          materials and components, have come down in price in recent  
          years, soft costs, including the cost of local agency permitting  
          and inspection process, are preventing solar energy systems from  
          being more affordable to many Californians.  The Governor's  
          Office of Planning and Research has called for streamlining the  
          permit process, including the development a checklist with  
          expedited review as a best practice to continue to promote these  
          systems.  This bill directs each city and county to adopt an  
          ordinance tailored to the unique needs of their communities, to  
          adopt best practices in the permit application, review and  
          inspection process, to reduce costs, and promote solar  
          electricity generation. 

           Prior Legislation
           
          SB 871 (Senate Budget and Fiscal Review Committee, Chapter 41,  
          Statutes of 2014) extends the sunset for a solar tax exemption  
          for new active solar energy systems on new construction.  The  

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          bill extends the exemption through 2023-24, and extends the  
          sunset through January 1, 2025.

          AB 1801 (Campos, Chapter 538, Statutes of 2012) prohibited a  
          city or county from basing the calculation of a permit fee for  
          the installation of a solar energy system on the valuation of  
          the system, or any other factor not directly associated with the  
          cost to issue the permit, and required the city or county to  
          separately identify each fee assessed on the applicant for the  
          installation of the system on the invoice provided to the  
          applicant.

          SB 1222 (Leno, Chapter 614, Statutes of 2012) placed a cap on  
          the amount of permit fees charged by a city or county for both  
          residential and commercial rooftop solar energy systems, unless  
          a city or county makes written findings and adopts a resolution  
          or ordinance providing substantial evidence of the reasonable  
          cost to issue the permit and why the cost exceeds the specified  
          caps.

          AB 1892 (Smyth, Chapter 40, Statutes of 2008) provided that a  
          prohibition or restriction on the installation or use of a solar  
          energy system in any of the governing documents of a CID is void  
          and unenforceable.  

          AB 2180 (Lieu, Chapter 539, Statutes of 2008) required an HOA in  
          a CID to respond to a request from a member to install a solar  
          energy system in his/her separate interest within 60 days.

          AB 2473 (Wolk, Chapter 798, Statutes of 2004) required cities  
          and counties to permit the installation of solar energy systems  
          if the system meets specified requirements, and redefined the  
          term "significantly" in regard to restrictions on solar  
          electricity generation systems that raise costs or decrease  
          efficiency.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/15/14)

          1st Light Energy
          Arise Solar
          ASI Hastings, Inc.

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          Aztec Solar, Inc.
          BMC Solar
          Booth Construction
          Brigtline Defense Project
          California Center for Sustainable Energy
          California League of Conservation Voters
          California Solar Energy Industry Association 
          Chico Electric
          City of Oakland Mayor, Jean Quan 
          City of Richmond Mayor, Gayle McLaughlin 
          Clean Power Finance
          Clean Solar
          Cobalt Power Systems
          Cosmic Solar
          Delta Solar Electric, Inc.
          Enphase Energy
          Environment California
          Environmental Defense Fund
          FAFCO, Inc.
          Freedom Solar
          HelioPower
          Home Energy Systems, Inc.
          Horizon Solar Power
          Hot Purple Energy
          Insoltech Solar
          Luminati
          Marin Clean Energy
          Oakland Metropolitan Chamber of Commerce
          One Block off the Grid
          Presente.Org
          Real Goods Solar
          Renova Energy Corp.
          Rising Sun Energy
          San Francisco Environment Commission 
          Sierra Club California
          Sierra Pacific Home & Comfort, Inc.
          Silicon Valley Leadership Group
          Skyline Innovations
          Solar Census
          Solar Energy Industries Association
          Solar Roof Dynamics
          Solar Universe, Inc.
          SolarCity
          SolarCraft

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          Sonoma Clean Power
          Spectrum Energy Development, Inc.
          Stellar Solar
          Sullivan Solar Power
          Sun Light & Power
          Sun Pacific Solar Electric, Inc.
          Suncrest Solar
          Sungevity, Inc.
          SunRun
          TerraVerde Renewable Partners
          Tom Bates- Mayor of Berkeley
          Unique Solar
          Verengo Solar
          Westcoast Solar Energy
          Zep Solar

           OPPOSITION  :    (Verified  8/15/14)

          American Institute of Architects
          California Building Industry Association
          California Building Officials
          California Fire Chiefs
          California Municipal Utilities Association
          Cities of Antioch, Benicia, Beaumont, Brentwood, Brisbane,  
            Camarillo, Ceres, Cerritos, Chowchilla, Chula Vista, Concord,  
            Corning, Corona, Del Mar, Downey, Dublin, El Cerrito, Elk  
            Grove, El Segundo, Eureka, Fremont, Goleta, Healdsburg, Indian  
            Wells, Lawndale, Moorpark, Norwalk, Palmdale, Paso Robles,  
            Plymouth, Rancho Cordova, Redding, Riverbank, Riverside,  
            Rocklin, Roseville, Sacramento, San Carlos, Santa Rosa, Scotts  
            Valley, Shasta Lake, Simi Valley, Thousand Oaks, Truckee, and  
            Tulare
          County of Orange
          Fire Chiefs Association of Santa Barbara County

           ARGUMENTS IN SUPPORT  :    Advocates, primarily the solar  
          industry, argue that while the solar industry is largely  
          standardized, the rules and procedures for permitting and  
          installation can vary greatly from one city to another resulting  
          in unnecessary costs for providers.  By making the local  
          permitting process more efficient, this bill will help lower the  
          cost of solar power by making it more affordable to moderate and  
          low income families, while growing our economy, creating local  
          jobs, saving government time and money, and getting solar "out  

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          of the way" of other permitted industries.

           ARGUMENTS IN OPPOSITION  :    Opponents argue that speeding up the  
          local permitting process for this one technology sets up a poor  
          precedent and could present public safety concerns.  The  
          permitting process involves decisions which, in part, avoid  
          safety hazards and allow proper compliance with applicable  
          building codes by ensuring that solar panels are properly  
          designed and installed to different types of structures.  This  
          bill establishes a "one size fits all" approach to solar roof  
          permits irrespective of workload, level of staff, or unique  
          aspects of the building or structure where the panel is to be  
          placed.  Ensuring public safety and proper review and oversight  
          should not be rushed because one commercial product has gained  
          in popularity.

           ASSEMBLY FLOOR  :  58-8, 5/27/14
          AYES:  Alejo, Ammiano, Bigelow, Bloom, Bocanegra, Bonilla,  
            Bonta, Bradford, Brown, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Dickinson, Donnelly, Eggman, Fong, Garcia,  
            Gatto, Gomez, Gonzalez, Gorell, Gray, Grove, Hagman, Hall,  
            Harkey, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine,  
            Logue, Lowenthal, Maienschein, Mansoor, Melendez, Mullin,  
            Muratsuchi, Nazarian, Nestande, John A. Pérez, V. Manuel  
            Pérez, Quirk, Rendon, Rodriguez, Skinner, Ting, Wagner,  
            Waldron, Weber, Wieckowski, 
            Wilk, Williams, Atkins
          NOES:  Achadjian, Allen, Fox, Frazier, Beth Gaines, Medina,  
            Salas, Stone
          NO VOTE RECORDED:  Buchanan, Ian Calderon, Campos, Daly, Gordon,  
            Linder, Olsen, Pan, Patterson, Perea, Quirk-Silva,  
            Ridley-Thomas, Yamada, Vacancy


          AB:d  8/17/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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