BILL ANALYSIS 1 1 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE DEBRA BOWEN, CHAIRWOMAN AB 1407 - Wolk Hearing Date: June 24, 2003 A As Amended: June 11, 2003 Non-FISCAL B 1 4 0 7 DESCRIPTION Current law makes any condition contained in any deed or contract affecting the transfer or sale of property that effectively prohibits or restricts the installation or use of a solar energy system void and unenforceable. However, reasonable restrictions that don't significantly increase the cost of the solar energy system are permitted. This bill subjects public entities to these provisions. If the public entity fails to comply, this bill precludes it from receiving funds from a state-sponsored solar energy grant or loan programs. BACKGROUND Since 1978, a California statute known as the California Solar Rights Act has barred restrictions on the installation of solar energy systems. According to the California Solar Energy Industries Association (CALSEIA), some local governments have imposed restrictions or overly complicated permitting reviews on the installation of residential and commercial solar systems: City of Santa Ana won't permit solar installations that are visible from the street. Fresno County required a homeowner to install a second roof underneath an existing roof before a roof-mounted photovoltaic system could be installed. COMMENTS 1.Approve . . . Or Else . Arguably, the California Solar Rights Act doesn't prevent them from barring or imposing restrictions on the installation of solar energy systems. This bill doesn't subject local governments to the Act directly, but it does "encourage" them to adhere to the provisions of the Act by making them ineligible for state-sponsored grant and loan programs if they don't meet those provisions. The language in the bill is somewhat confusing in that it bars any covenant in any deed which effectively prohibits the installation or use of a solar energy system, but it then applies this provision to public entities, which have no role in any deed except in cases where the public entity owns the property. The author and committee may wish to consider clarifying the language as follows: Page 2. Delete lines 8 - 15. Page 3, Line 24: At the end of the sentence add: "(h) (1)A public entity that fails to comply with this section may not receive funds from a state-sponsored grant or loan program for solar energy. A public entity shall certify its compliance when applying for funds from such a grant or loan program. (2) A local public entity may not exempt residents in its jurisdiction from the requirements of this section." 1.Which Programs Are We Talking About? The state-sponsored grant and loan programs referenced in the bill include the renewable energy grant program administered by the California Energy Commission and a distributed generation incentive program administered by the California Public Utilities Commission. ASSEMBLY VOTES Assembly Floor (77-0) Assembly Housing and Community Development Committee (8-0) POSITIONS Sponsor: California Solar Energy Industries Association Support: AMECO EcoEnergies GO Solar Company Light Energy Systems Performance Solar Inc. POCO Solar Energy Short Electric Six Rivers Solar, Inc. SoCal Solar Energy Solar Wind Works Solarponics, Inc. SOLutions in Solar Electricity SUN Utility Network Oppose: None on file Randy Chinn AB 1407 Analysis Hearing Date: June 24, 2003