BILL ANALYSIS                                                                                                                                                                                                           1
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                 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

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                                       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