BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2135
                                                                  Page  1

          Date of Hearing:   April 24, 2012

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                 AB 2135 (Blumenfield) - As Amended:  April 18, 2012
           
          SUBJECT  :   Building standards: solar distributed generation 
          technology on residential and commercial property. 

           SUMMARY  :   Requires the Building Standards Commission (BSC), and 
          specified state agencies, to develop a model ordinance and 
          guidelines that assist local agencies in developing building 
          standards and permit processes for solar distributed generation 
          technology (SDGT) on residential and commercial property.  
          Specifically,  this bill  :  

          1)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. 

          2)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 
            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  :   









                                                                  AB 2135
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           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."

           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 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 
          occupancies in California.  

          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 processes waste time 
          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? 








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          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 
          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."

           Opposition  .  According to the California State Association of 
          Electrical Workers, California State Pipe Trades Council, and 
          Western States Council of Sheet Metal Workers, "While the 
          intentions behind AB 2135 are most certainly well-intentioned, 
          the practical effect of AB 2135 would be to undermine the 
          California's building standards process, the State's system for 
          training electricians and other clean energy trades people, and 
          potentially endanger the health and safety of workers installing 
          SDGT.  Moreover, we strongly believe that AB 2135 is unnecessary 
          in that building standards for SDGT are already in place.  
          Finally, we are concerned that AB 2135 places new 








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          responsibilities on BSC, which are outside BSC's area of 
          expertise and will diminish BSC's ability to complete the 2012 
          Triennial Code Adoption Cycle in a timely manner. 

          "It is of critical important to uphold the integrity of the 
          statutory and regulatory requirements for adopting local 
          building standards ordinances.  The requirement that BSC develop 
          guidelines to assist local agencies to develop streamlined 
          permitting processes for SDGT on residential and commercial 
          property is beyond the scope of BSC's authority.  The process 
          for the issuance of building permits is generally under the 
          jurisdiction of the applicable city or county, and �existing 
          law] provides permit streamlining guidelines for city and county 
          approval of solar energy systems."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Division of Ratepayer Advocates
          Environmental Defense Fund 
          Sierra Club 
          Sungevity 
          Sunrun
          Suntech
          Verengo Solar
          Vote Solar Initiative

           Opposition 
           
          California State Association of Electrical Workers 
          California State Pipe Trades Council 
          Western States Council of Sheet Metal Workers
          Coalition of California Utility Employees 
           
          Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916) 
          319-3301