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AB 2188 Assembly Bill-Bill Analysis Page 3 of 7 AB 2188 prohibits a city or county from conditioning approval of a small rooftop solar energy system on the approval of that system by a nonprofit entity created for the purpose of managing a common interest development. AB 2188 changes the standard for a local agency to require a use permit for the installation of a solar energy system, from a good faith belief, to a finding based on substantial evidence, that a solar energy system could have a specific, adverse impact on public health and safety. AB 2188 -- 6/18/14 -- Page 4 AB 2188 requires solar energy systems for heating water to be certified by an accredited listing agency, defined as a standards or testing organization, rather than the Solar Rating Certification Corporation or other nationally recognized certification agency specified in current law. Current law limits the ability of a covenant, deed restriction or similar instrument to constrain the installation of a solar energy system on a home, to reasonable restrictions that do not significantly impact costs or limit system efficiency. AB 2188 amends the definition of significant impact from no more than 20 percent of system costs to no more than 10 percent, or $1,000, whichever is less. AB 2188 also redefines significant change in efficiency, reducing the current allowance for loss of efficiency from 20 percent, down to 10 percent. AB 2188 reduces, from 60 days to 45 days, the amount of time that an approving agency that is an association, such as a homeowners association, has to deny, in writing, an application for a solar energy system. An application that is not denied in that timeframe is deemed approved. AB 2188 contains legislative findings and declarations on the need for the bill, including the value of a modernized and standardized permitting process for installations of small-scale solar distributed generation technology to increase the deployment of solar distributed generation, expand access to lower income households, provide solar customers greater installation ease, improve the state's ability to reach its clean energy goals, and generate much needed jobs in the state, all while maintaining safety standards. State Revenue Impact No estimate. Comments 1. Purpose of the bill . California's solar industry has grown dramatically. That growth has been supported by the efforts of many local agencies to streamline the permitting process for small, rooftop solar electricity systems. But the industry continues to face steep obstacles that must be AB 2188 -- 6/18/14 -- Page 5 http://www.leginfo.ca.gov/pub/13-14/b i II/asm/ab_2151-2200/ab_2188_cfa_20140620_I55953_sen_comm.html 7/3/2014