Senate Bill No. 1124

Introduced by Senator Cannella

February 17, 2016

An act to amend Section 2869 of the Public Utilities Code, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

SB 1124, as introduced, Cannella. Electrical corporations: independent solar energy producers.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires an independent solar energy producer, as defined, contracting for the use or sale of electricity or the lease of a solar energy system, as defined, to an entity or person for use in a residence to make certain disclosures to the buyer or lessee, including a plain language explanation of the contract provisions regulating the disposition or transfer of the contract in the event of a transfer of ownership of the residence, as well as the costs or potential costs associated with the disposition or transfer of the contract.

This bill would make nonsubstantive changes to those provisions.

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

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

SECTION 1.  

Section 2869 of the Public Utilities Code is
amended to read:

2869.  

(a) (1) An independent solar energy producer
contracting for the use or sale of electricity or the lease of a solar
energy begin delete system, end delete begin insert system end insert to an entity or begin delete person, end delete begin insert person end insert for use in a
residence shall include a disclosure to the buyer or lessee that, at
a minimum, includes all of the following:

(A) A good faith estimate of the kilowatthours to be delivered
by the solar energy system.

(B) A plain language explanation of the terms under which the
pricing will be calculated over the life of the contract and a good
faith estimate of the price per kilowatthour.

(C) A plain language explanation of operation and maintenance
responsibilities of the contract parties.

(D) A plain language explanation of the contract provisions
regulating the disposition or transfer of the contract in the event
of a transfer of ownership of the residence, as well as the costs or
potential costs associated with the disposition or transfer of the
contract.

(E) A plain language explanation of the disposition of the solar
energy system at the end of the term of the contract.

(2) The commission may require, as a condition of receiving
ratepayer funded incentives, that an independent solar energy
producer provide additional begin delete disclosure end delete begin insert disclosures end insert to the buyer or
lessee, the commission, or both.

(b) An independent solar energy producer contracting for the
use or sale of electricity or the lease of a solar energy begin delete system, end delete
begin insert system end insert to an entity or begin delete person, end delete begin insert person end insert for use in a residence shall
record a Notice of an Independent Solar Energy Producer Contract,
within 30 days of the signing of the contract, against the title to
the real property on which the electricity is generated, and against
the title to any adjacent real property on which the electricity will
be used, in the office of the county recorder for the county in which
the real property is located. The notice shall include all of the
following and may include additional information:

(1) (A) If the solar energy system is located on the real property,
a prominent title at the top of the document in 14-point type stating
“Notice of an Independent Solar Energy Producer Contract” and
the following statement:

“This real property is receiving part of its electric service from
an independent solar energy producer that has retained ownership
of a solar electric generation system that is located on the real
property. The independent solar energy producer provides electric
service to the current owner of this real property through a
long-term contract for electric service. The independent solar
energy producer is required to provide a copy of the contract to a
prospective buyer of the real property within ten (10) days of the
receipt of a written request from the current owner of this real
property.”

(B) If the solar energy system is located on an adjacent real
property, a prominent title at the top of the document in 14-point
type stating “Notice of an Independent Solar Energy Producer
Contract” and the following statement:

“This real property is receiving part of its electric service from
an independent solar energy producer that has retained ownership
of a solar electric generation system that is located on an adjacent
real property. The independent solar energy producer provides
electric service to the current owner of this real property through
a long-term contract for electric service. The independent solar
energy producer is required to provide a copy of the contract to a
prospective buyer of this real property within ten (10) days of the
receipt of a written request from the current owner of this real
property.”

(2) The address and assessor’s parcel number of the real property
against which the notice is recorded.

(3) The name, address, and telephone number of the independent
solar energy producer, and any other contact information deemed
necessary by the independent solar energy producer.

(4) A statement identifying whether the contract is a contract
for the sale of electricity or for the lease of a solar energy system,
and providing the dates on which the contract commences and
terminates.

(5) A plain language summary of the potential costs,
consequences, and assignment of responsibilities, if any, that could
result in the event the contract is terminated.

(c) (1) The recorded Notice of an Independent Solar Energy
Producer Contract does not constitute a title defect, lien, or
encumbrance against the real property, and the independent solar
energy producer shall be solely responsible for the accuracy of the
information provided in the notice and for recording the document
with the county recorder.

(2) The independent solar energy producer shall record a
subsequent document extinguishing the Notice of an Independent
Solar Energy Producer Contract if the contract is voided,
terminated, sold, assigned, or transferred. If the independent solar
energy producer transfers its obligation under the contract or
changes its contact information, it shall record a new notice
reflecting these changes within 30 days of their occurrence.

(3) Within 30 days of the termination of a contract for the use
or sale of electricity or the lease of a solar energy system, the
independent solar energy producer shall record a subsequent
document extinguishing the Notice of an Independent Solar Energy
Producer Contract from the title to the real property on which the
electricity is begin delete generated, end delete begin insert generated end insert and from the title to any adjacent
real property on which the electricity was begin delete used, end delete begin insert used end insert in the office
of the county recorder for the county in which the real property is
located.

(d) An independent solar energy producer contracting for the
use or sale of electricity or the lease of a solar energy system shall
provide a copy of the existing contract to a prospective buyer of
the real property where the electricity is used or generated within
ten (10) days of the receipt of a written request from the current
owner of the real property.

(e) (1) All contracts for the sale of electricity by an independent
solar energy producer to an entity or begin delete person, end delete begin insert person end insert for use in a
residential dwelling shall be made available to the commission
upon its request, and shall be confidential, except as provided for
in this subdivision. The disclosures required by subdivision (a)
may be made open to public inspection or made public by the
commission.

(2) A contract provided to the commission pursuant to this
subdivision shall not be open to public inspection or made public,
except on order of the commission, or by the commission or a
commissioner in the course of a hearing or proceeding.

(3) This subdivision does not eliminate or modify any rule or
provision of law that provides for the confidentiality of information
submitted to the commission in the course of its proceedings.

(f) A master-meter customer of an electric utility who purchases
electricity or leases a solar energy system from an independent
solar energy producer, and who provides electric service to users
who are tenants of a mobilehome park, apartment building, or
similar residential complex, shall do both of the following:

(1) Charge each user of the electric service that is under a
submetered system a rate for the solar generated electricity not to
exceed the rate charged by the independent solar energy producer
or the electric utility’s rate for an equivalent amount of electricity,
whichever is lower.

(2) Comply with the provisions of Section 739.5 or 12821.5,
and any rules set forth by an electric utility for master-meter
customers.

(g) No transfer of real property subject to this article shall be
invalidated solely because of the failure of any person to comply
with any provision of this article. Any person who willfully or
negligently violates or fails to perform any duty prescribed by any
provision of this article shall be civilly liable in the amount of
actual damages suffered by a transferee or transferor of the real
property as a consequence of that violation or failure.