BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: ab 2135
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  blumenfield
                                                         VERSION: 6/11/12
          Analysis by:  Mark Stivers                     FISCAL:  yes
          Hearing date:  June 19, 2012



          SUBJECT:

          Local government permitting of solar energy systems

          DESCRIPTION:

          This bill requires specified state entities to develop a 
          guidebook to assist cities and counties in implementing building 
          standards and permitting processes for solar distributed 
          generation technology.  The bill also allows the Air Resources 
          Board and the California Energy Commission to give priority in 
          certain grant programs to cities and counties that adopt the 
          policies in the guidebook.

          ANALYSIS:

          The California Building Standards Law establishes the California 
          Building Standards Commission (BSC) and the process for adopting 
          state building standards.  Under this process, relevant state 
          agencies propose amendments to model building codes, which the 
          BSC must then adopt, modify, or reject.  For example, the 
          Department of Housing and Community Development (HCD) is the 
          relevant state agency for residential building standards.  The 
          State Fire Marshal is the relevant state agency for building 
          standards related to fire safety in all occupancies.  After the 
          BSC adopts building standards, cities and counties implement and 
          enforce building standards through the issuance of building 
          permits and inspection of construction work.  

           This bill  requires the BSC and HCD, in cooperation with the 
          State Fire Marshal, to develop a guidebook to assist cities and 
          counties in implementing building standards and permitting 
          processes for solar distributed generation technology on 
          residential and commercial property and to post the guidebook on 
          their respective websites.  The bill further provides that the 
          Air Resources Board (ARB) and the California Energy Commission 
          (CEC), when making grants related to energy or climate project 
          planning or implementation, may grant a preference or priority 




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          to cities and counties that adopt the policies from the 
          guidebook. 
          
          COMMENTS:

           1.Purpose of the bill  .  According to the author's office, the 
            process of obtaining local government permits to install 
            rooftop solar panels varies widely across cities and counties 
            and is often inefficient and expensive.  The author cites a 
            January 2011 national report entitled "The Impact of Local 
            Permitting on the Cost of Solar Power" issued by the solar 
            power service provider SunRun that states in part: 

                The bulk of the problem is local process and variation?. 
                Inefficient local process waste 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 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.

            The author believes that these barriers are an impediment to 
            thousands of Californians who may otherwise install solar 
            panels on their homes and reduce potential jobs in the clean 
            energy sector.  This bill seeks to bring more certainty and 
            uniformity to property owners hoping to install solar systems 
            by creating a guidebook to help local governments streamline 
            their permit processes.

           2.Building on national efforts  .  The federally-funded Solar 
            America Board for Codes and Standards has already developed a 
            model permitting process for solar systems of less than 15kW 
            maximum power output for cities and counties to follow.  This 
            bill seeks to build on these efforts in three ways:  1) by 
            providing additional guidance to cities and counties on how to 
            interpret California-specific building standards that relate 




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            to solar systems; 2) by employing the communications abilities 
            and the credibility of the BSC to get permit streamlining 
            information into the hands of local building inspectors; and 
            3) by creating incentives for cities and counties to adopt 
            more streamlined permitting procedures.  

           3.Vague incentives  .  In order to incentivize local adoption of 
            streamlined permitting processes for solar systems, this bill 
            permits the Air Resources Board and the California Energy 
            Commission, when making grants related to energy or climate 
            project planning or implementation, to grant a preference or 
            priority to cities and counties that adopt the policies from 
            the guidebook.  In order for incentives to be most effective, 
            both the substance of the incentive and the standards for 
            qualifying must be clear.  

            The language relating to incentives in this bill is somewhat 
            vague.  First, the bill permits, rather than requires, ARB and 
            CEC to offer bonus points in grant programs.  This means that 
            local governments may not know for some time whether any 
            incentive will be available.  Second, the bill does not 
            quantify what the incentive will be.  Third, it is not clear 
            what it means for a city or county to "adopt" the policies in 
            the guidebook.  The guidebook in part is likely to include 
            clarifications of existing building standards, which cities 
            and counties will hopefully follow but may not formally 
            "adopt."  Cities and counties are more likely to adopt changes 
            to building permitting practices, but will they qualify for 
            incentives if they make any alterations to the recommendations 
            in the guidebook?  And will they have to adopt every single 
            recommendation?  A majority of the recommendations?  Until the 
            BSC issues the guidebook, it may be difficult to answer these 
            questions and craft more specific incentives.  The committee 
            may wish to consider whether the incentives in this bill 
            should be mandatory and, if so, to quantify some minimum bonus 
            percentage.  

           4.Back to Rules  .  The Rules Committee originally referred this 
            bill to both this committee and the Committee on Governmental 
            Organization.  The Rules Committee has since requested that 
            the committee, if it approves the bill, send it back to Rules 
            for reevaluation of the second referral.   

          Assembly Votes:
               Floor:    75-0
               Appr: 17-0




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               B&P:    9-0

          POSITIONS:  (Communicated to the Committee before noon on 
          Wednesday,                                             June 13, 
          2012)

               SUPPORT:  California Public Utilities Commission Division 
          of Ratepayer Advocates
                         Environmental Defense Fund
                         Sierra Club 
                         SunRun
                         Sungevity
                         Suntech 
                         Vote Solar Initiative
          
               OPPOSED:  None received.