BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2135
                                                                  Page  1

          Date of Hearing:   April 10, 2012

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                 AB 2135 (Blumenfield) - As Amended:  March 27, 2012
           
          SUBJECT  :   Building standards: solar distributed generation 
          technology on residential and commercial property. 

           SUMMARY  :   Authorizes the California Building Standards 
          Commission (BSC) to adopt building standards for the 
          installation of solar systems on residential and commercial 
          property by using emergency rulemaking procedures without an 
          emergency finding, before January 1, 2014.  Specifically,  this 
          bill  :  

          1)Authorizes BSC to adopt building standards for solar 
            distributed generation technology (SDGT) on residential and 
            commercial property  by using emergency rulemaking procedures 
            without the necessity of making an emergency finding or 
            requiring a proposing agency to make a finding of an 
            emergency, before the conclusion of the 2012 triennial code 
            adoption cycle of the Code on January 1, 2014. 

          2)Requires BSC and the Department of Housing and Community 
            Development (HCD), in cooperation with the State Fire Marshal 
            (SFM), to develop a model ordinance and guidelines that assist 
            local agencies in developing building standards and permit 
            processes for SDGT on residential and commercial property, and 
            to post the ordinance and guidelines on their respective 
            Internet Web sites. 

          3)Encourages local jurisdictions to develop or amend their 
            building standards and permit process to ensure a low-cost, 
            streamlined process for the installation of SDGT on 
            residential and commercial property. 

          4)Makes legislative findings and declarations related to 
            streamlining the local permit system for the installation of 
            solar panels.

           EXISTING LAW  :

          1)Authorizes a city of county to make changes or modifications 








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            in the requirements contained in the provisions published by 
            the BSC in the California Building Standards Code (Code) for 
            approval and adoption.

          2)Requires that amendments, additions, and deletions to the Code 
            adopted by a city, county, or city and county pursuant to 
            existing law, become effective 180 days after publication, or 
            at a later date, as specified. 

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, "The 
          local process of obtaining a municipal permit to install rooftop 
          solar panels is often inefficient, expensive, and varies across 
          jurisdictions around the state.  In 2007, local permits and 
          inspections added 13% to the cost of a solar system - today, 
          they add 33%.  In 2009, the Sierra Club surveyed 250 
          municipalities in Southern California to determine their fees 
          and processing times �to acquire] permits to install solar 
          panels on residential rooftops.  The survey found that fees for 
          a typical solar panel varied from $0 to over $1,500 for 
          residential single-family homeowners.  

          "In addition to rising permit costs, the lack of a coordinated 
          and streamlined local permit system makes the local permit and 
          inspection process inefficient and confusing to the consumers 
          and companies that install solar panels.  These costs are an 
          impediment to thousands of Californians who may otherwise 
          install solar �panels for] their homes, and reduce potential 
          jobs in the clean energy sector.  To bring more certainty and 
          uniformity to property owners seeking to install solar systems, 
          AB 2135 authorizes BSC to create a streamlined permit process 
          and model guidelines for local governments."

           Background  .  The BSC was established in 1953 and is responsible 
          for administering California's building codes, including 
          adopting, approving, publishing, and implementing codes and 
          standards.  The BSC publishes the Code (latest edition, 2010) 
          every three years, and its supplements, such as the California 
          Green Building Standards Code, in intervening years. 
          
          The building regulations or standards take effect 180 days after 
          their publication unless otherwise stipulated and applies to all 








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          occupancies in California.  Any building standard adopted 
          through the emergency rulemaking procedure takes effect 
          immediately upon filing with the Secretary of State, and would 
          need to be adopted by state agencies and BSC through regular 
          rulemaking procedures within 180 days of taking effect, to 
          permanently remain in the Code.  

          According to a January 2011 national report by the home service 
          solar provider, Sunrun, "The bulk of the problem is local 
          process and variation?   Inefficient local process wastes times 
          and money, and local variation forces installers to spend time 
          and money customizing plans for each jurisdiction.  
          Standardizing this process makes sense because most 
          installations are relatively similar and 'share many 
          similarities of design?  

          "Since each jurisdiction has different requirements, installers 
          may have to research code, customize drawings, and apply for 
          zoning approval every time they do an install.  Many 
          jurisdictions require review by an expensive professional 
          engineer even if similar plans have been approved before? 
          Jurisdictions charge fees that vary widely, some higher than 
          $1,000.  Many jurisdictions use solar permit fees to plug other 
          holes in the budget?   Jurisdictions often have requirements 
          beyond what state or national code requires, such as larger fire 
          barriers, extra disconnects to turn off the system, expensive 
          labeling, and excessive roof penetrations.  These add 
          significant cost to a system."

          According to the 2009 Sierra Club report, "Solar Electric Permit 
          Fees in Southern California," fees for a typical photovoltaic 
          (PV) system varied between $0 to over 1,500 across 250 
          municipalities.  The average PV permit fee in the survey area 
          was $493, and the average processing time across jurisdictions 
          was one to two weeks.  The report found that certain practices 
          contributed to exorbitant permit fees and long processing times, 
          including:  valuation-based fees (based on the cost of a solar 
          system), fire department reviews, public works department 
          reviews, planning department reviews, and municipal utility 
          approvals.

           Support  .  According to the Sierra Club, "While solar equipment 
          prices are falling, the high cost and excessive amount of time 
          in permitting and installing residential and commercial solar 
          systems remains an impediment.  The bulk of the problem is the 








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          lack of a standard permitting process throughout the state, as 
          the current permitting and inspection processes vary from 
          jurisdiction to jurisdiction.  The need to track requirements, 
          create custom designs and unnecessary delays and rework 
          associated with permitting variability all result in higher 
          costs for consumers without improving safety or quality of the 
          installations.  In addition, many local jurisdictions are 
          understaffed and have not been provided adequate training on the 
          electric code and system design."

          According to the Environmental Defense Fund and Sunrun, "The 
          state should assist local jurisdictions in the deployment of 
          solar distributive generation systems, and this bill will give 
          the BSC and HCD, in cooperation with the SFM, the authority to 
          adopt, approve, codify, and publish emergency building 
          regulations for SDGT on residential and commercial rooftop 
          applications in an expedited manner.  In addition, this bill 
          calls for a guidebook to be created, which will help local 
          jurisdictions make these changes in their processes."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Environmental Defense Fund 
          Sierra Club 
          Sungevity 
          Sunrun
          Verengo Solar
          Vote Solar Initiative

           Opposition 
           
          None on file. 
           
          Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916) 
          319-3301